Can a Saskatchewan Condo Corporation Place a Lien for Unpaid Fees?

What happens when condo fees go unpaid depends on your situation, so it is worth confirming with a lawyer. Owners and buyers often ask whether the corporation can register a lien against a unit, and what that means for selling or refinancing.

This article explains how liens show up on a Saskatchewan title, how to find out what is registered against a unit, and what a buyer can ask the corporation for. The detailed rules on when and how a corporation may register a lien are best confirmed with a lawyer who can read the current legislation against your situation.

This article covers the law of Saskatchewan.

Why condo fees matter to the corporation

Condominiums in Saskatchewan are governed by The Condominium Property Act, 1993 and The Condominium Property Regulations, 2001. Bylaws can be amended by special resolution, and no bylaw may prohibit or restrict the lease of units (s. 44(2)). How your corporation sets and collects its fees depends on its bylaws and your situation, so it is worth confirming with a lawyer.

The reserve fund is a corporation asset held in trust for statutory purposes and cannot be paid out to owners while the property remains under the Act. Its purposes include unforeseen common expenses and major repair or replacement of common property and building systems. Unpaid fees from one owner can strain that fund, which is why corporations pursue arrears.

How a lien appears on title

On a title kept by Information Services Corporation (ISC), registered interests are any right, interest or estate, legal or equitable, recognized at law and less than title. Mortgages and liens appear as interests. Judgments are tracked separately in the Judgment Registry.

So if a lien is registered against a unit, you would expect to see it on the title as an interest. A title lock, by contrast, is a prohibition on the title. Which of these applies, if any, depends on what has actually been registered.

Finding out what is registered against a unit

ISC Quick Search finds currently active titles by parcel number, title number, owner name or land description and lets you view a title image or request a certified print. It does not show previous owners or interests that were removed; the advanced Search tool covers those.

• Search the title and read the list of registered interests.
• Check the Judgment Registry separately for judgments.
• Ask the corporation in writing what you owe and how it was calculated.
• Keep records of every payment and every notice you receive.

If you are buying a unit

For a resale unit, the buyer can request an estoppel certificate from the corporation. It covers fee payment status, contribution amounts, insurance, and outstanding lawsuits or judgments against the corporation. On an owner's application, the corporation must issue an estoppel certificate in the prescribed form, and it cannot later deny what it certified. The 2001 Regulations allow a fee of up to $200.

Reading the certificate alongside a title search gives you a fuller picture before you commit. If arrears or a registered interest turn up, raise it with your lawyer before the sale closes so it can be dealt with in the transaction.

Clearing a lien and what to do next

How a lien or other registered interest is cleared depends on how it was registered and on your situation, so it is worth confirming with a lawyer. As a general rule about registered interests, the Registrar can issue a notice that an interest will lapse 30 days after the notice is sent unless a court order extending the registration is registered, and the Registrar registers a discharge on application if no extending order is registered. Whether that route fits a condo fee lien in your case is a question for a lawyer.

• Get a current title search for the unit.
• Ask the corporation for a written statement of what you owe.
• Gather your payment records and bylaws.
• Talk to the corporation about a payment arrangement and get any agreement in writing.
• See a lawyer before you sell, refinance or sign anything related to the arrears.

Frequently asked questions