What happens if I buy a condo unit that has a lien on it in Ontario?

A condo unit with a lien can still change hands, but the unpaid amount is a real problem that needs to be dealt with as part of the sale. A condo corporation automatically has a lien on a unit when the owner does not pay common expenses. That lien expires after three months unless the corporation registers a Certificate of Lien, and the owner first gets a Notice of Lien.

If the owner pays, the corporation must discharge the lien, and an owner can pay at any point until the unit is sold. The payoff includes condo fees owed after registration, interest, and reasonable legal fees and the costs of preparing and discharging the lien. The corporation can register the certificate if the owner does not pay within 10 days of the notice. It can start the power of sale process 15 days after registering a Certificate of Lien.

How a lien is shown on the status certificate and settled on closing depends on the facts and on the agreement of purchase and sale. A real estate lawyer can confirm what applies to your purchase or sale before you close.