While the popularity of condo living continues to increase some older condo buildings must deal with budget deficiencies and an aging infrastructure.
The Condo Act is intended to prevent budget deficits and ensure that an aging infrastructure can be maintained. Yet some condo corporations have taken actions that have placed themselves in a position where budget deficits can no longer be avoided. These budget deficits are the result of poor management or a failure to collect condo fees from some owners.
In the case of uncollected condo fees, condo corporations do have the ability to sell condo suites with outstanding fees as a means to recover outstanding amounts. This option relies on the availability of an interested buyer.
Less desirable condo buildings are at greater risk of being unable to maintain their condo corporation.
For these condo corporations, the only remaining option may be to terminate their corporation and seek to sell the property to the highest bidder.