- Owners must pay common expenses in the proportions set by the declaration, and the corporation can sue for unpaid assessments.
- Unpaid amounts can become a lien on the unit that expires 90 days after default unless it is registered.
- What happens on a sale depends on the facts, so get legal advice before you list or sign anything.
Falling behind on condo fees or special assessments can feel like a small problem that quietly grows. In New Brunswick, the condominium corporation has real tools to collect what is owed, including a lien against your unit.
This article explains in general terms how that works under the Condominium Property Act. Your own situation depends on your declaration, by-laws and the amounts involved, so treat this as a starting point.
This article covers the law of New Brunswick.
What the corporation does and why you pay
A condominium corporation is created when the declaration is registered, and its objects are to manage the property and assets of the corporation. The Condominium Property Act is administered by Service New Brunswick through a Director of Condominiums.
Owners pay common expenses in the proportions set by the declaration. Each owner must also comply with the Act, the declaration, the by-laws and the rules, and the corporation must take reasonable steps to make sure owners comply.
The Act classifies condominium property as commercial, residential, bare-land, mixed-use or phased-development. By-laws must be consistent with the Act and the declaration, and they can be amended by owners holding at least 60% of the common elements.
Can the corporation register a lien?
Yes, in the sense that unpaid amounts can become a lien on the unit. That lien expires 90 days after default unless it is registered. The corporation can also sue for unpaid assessments.
In plain terms, a lien is a legal claim against your unit for what you owe. How a lien affects a sale or a refinance depends on your situation, so it is worth confirming with a lawyer.
Lien or lawsuit: the options at a glance
| Step | What the Act provides |
|---|---|
| Lawsuit | The corporation can sue for unpaid assessments |
| Lien | Unpaid amounts can become a lien on the unit |
| Timing | The lien expires 90 days after default unless registered |
What it means for your unit and a sale
A registered lien can complicate a sale or refinancing, since a buyer and their lender will want debts against the unit dealt with. How the amount is paid out and how long that takes depend on the facts, so a lawyer can confirm the details for your situation.
If you rent the unit out, a tenancy agreement is treated as including a covenant to comply with the Act and the corporation's governing documents. That does not shift your own responsibility for common expenses.
Reserve funds and why they relate to your fees
The corporation must keep a reserve fund. For properties with more than 10 units, a reserve fund study is required every 10 years, with updates every 3 years.
For properties of 10 units or fewer, the reserve fund must equal 100% of the annual operating budget unless the by-laws set a higher percentage. Projects under construction before January 1, 2010 with a building permit are grandfathered under the old 1969 Act, and corporations that existed before 2010 had five years to build a reserve fund.
Whether your corporation's reserve is healthy is worth asking about, because it can affect how fees and special assessments are set. A lawyer can help you read the corporation's records and explain what they mean for you.
What to do if you are behind
- Request a statement of what you owe and how it was calculated.
- Read your declaration and by-laws for how fees and assessments are set.
- Contact the corporation or its manager early to discuss payment.
- Keep copies of all notices and payments.
- Talk to a lawyer before a sale, and especially if a lien has been registered or a claim is started.
Frequently asked questions
Can a condo corporation sue me for unpaid fees?
Yes. The corporation can sue for unpaid assessments. Unpaid amounts can also become a lien on the unit.
How long does a condo lien last?
A lien for unpaid amounts expires 90 days after default unless it is registered. Whether and when one has been registered against your unit is something a lawyer can confirm.
Can I sell my unit if there is a lien?
It depends on the facts. A lien is a legal claim against the unit, and the Condominium Property Act says unpaid amounts can become a lien that expires 90 days after default unless it is registered, so how it affects a particular sale is worth confirming with a lawyer before you list.
Who sets how much each owner pays?
Owners pay common expenses in the proportions set by the declaration. By-laws must be consistent with the Act and the declaration.
Sources
- Condominium Property Act, ss. 2, 4 — laws.gnb.ca
- Service New Brunswick - Condominium FAQ — gnb.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a real estate question
A home purchase with us is from $1,555.35, tax included. Third-party fees are extra.