Forgiving Unpaid Condo Fees

May 2022

Helping someone in financial trouble is beyond the authority of a condominium corporation.  Forgiveness is not an option.

When someone is unable or refuses to pay monthly common expenses, this is called falling into arrears. The condo board has a legal obligation to register a lien. There is an expectation in the Condo Act that the corporation will seek recovery of the full amount due plus legal and other fees.   A lien protects owners against those who fail to pay their share of condo fees.

Debt and bankruptcy specialists advise against loaning money to individuals in financial trouble.  More often than not they advise that doing so allows individuals to continue with their bad spending habits.  Should a condominium corporation choose to ignore this advice, there is no assurance the individual will not use this money to pay off other debts or continue their poor spending choices.

Should a condominium corporation take actions that risk deferral or nonpayment of condo fees, directors and management risk personal responsibility for resulting losses.

Individuals asking for relief on condo fees are really asking all other owners to loan them money.  A corporation has no authority to risk other peoples’ money in this way.

While individuals may choose to aid someone in financial trouble, doing so at the corporation level is not advisable.