How do I remove a condo lien from my unit once I have paid in Ontario?
Once you have paid what you owe, the condo corporation must discharge the lien. You do not clear it yourself; the corporation is the party that has to do it.
A lien arises automatically when common expenses go unpaid, but it expires after three months unless the corporation registers a Certificate of Lien. You first receive a Notice of Lien, and the corporation can register the certificate if you do not pay within 10 days. The payoff includes condo fees owed after registration, interest, reasonable legal fees and the costs of preparing and discharging the lien. If the debt stays unpaid, the corporation can start the power of sale process 15 days after registering the certificate.
If you are selling, you can pay at any point until the unit is sold. Ask the corporation for a written payout figure, pay it, and have your lawyer confirm the discharge is dealt with before closing. How quickly a discharge is completed depends on the facts, so get legal advice if a closing date is close.
Key takeaways
- If you pay, the condo corporation must discharge the lien.
- You can pay at any point until the unit is sold.
- The payoff includes condo fees owed after registration, interest, reasonable legal fees and the costs of preparing and discharging the lien.
- A lien expires after three months unless the corporation registers a Certificate of Lien.