- A condo corporation automatically has a lien on a unit when the owner does not pay common expenses.
- The lien expires after three months unless the corporation registers a Certificate of Lien, and it can do so if the owner does not pay within 10 days of the Notice of Lien.
- If you pay, the corporation must discharge the lien, and you can pay at any point until the unit is sold.
A notice of lien can be alarming, but it is a step in a defined process. Understanding the deadlines helps you decide what to do while you still have options.
This article walks through how a condo lien arises, how a corporation registers it, what it adds to your bill, and how to clear it. Your own situation may have other details, so a lawyer can confirm what applies to you.
Why a lien arises
Condo fees, called common expenses, pay for maintaining the common elements, cleaning, building maintenance, condo management and reserve fund contributions. The declaration sets each unit's share as a percentage, which may vary with unit size.
A condo corporation automatically has a lien on a unit when the owner does not pay common expenses. A special assessment works similarly: an unpaid special assessment gives the corporation a lien on the unit. A board can levy a special assessment through common expense fees without owner approval, although the governing documents may contain provisions about it, and each owner's share uses the same percentage as their common expense fees.
The steps and deadlines
The lien exists automatically, but it does not last forever unless the corporation takes steps to register it. The main timing points are set out below.
| Step | Timing |
|---|---|
| Lien arises when common expenses go unpaid | Automatically |
| Lien expires unless a Certificate of Lien is registered | After three months |
| Owner receives a Notice of Lien | Before the certificate is registered |
| Corporation may register the Certificate of Lien | If the owner does not pay within 10 days |
| Corporation may start the power of sale process | 15 days after registering the certificate |
| Redemption date set in the notice | 45 days after it is issued |
During the redemption period, the corporation cannot take further enforcement steps.
What a lien adds to what you owe
Missed fees are only part of the cost. For an unpaid special assessment, the lien covers the unpaid amount, interest and all reasonable legal costs of collecting it.
To clear a lien, the payoff includes condo fees owed after registration, interest, and reasonable legal fees and the costs of preparing and discharging the lien. Acting early generally keeps those added costs lower, because legal steps usually add expense.
How to clear the lien
If the owner pays, the condo corporation must discharge the lien. Ask the corporation for a written statement of the full amount, including interest and costs, and confirm that the discharge will be registered once you pay.
If you think the amount is wrong, say so in writing and ask for a breakdown. A lawyer can help if you disagree with the charges or cannot pay the full amount at once.
What to do next
- Read the Notice of Lien and note the date you received it.
- Treat the 10-day window as urgent.
- Ask for a written payoff statement showing fees, interest and costs.
- Pay, or contact the corporation about a payment plan, as soon as you can.
- Keep proof of payment and confirm the lien is discharged.
- Get legal advice quickly if a power of sale notice arrives.
Frequently asked questions
Does the lien expire?
The lien expires after three months unless the corporation registers a Certificate of Lien. Do not assume it will lapse, since the corporation can register the certificate if you do not pay within 10 days of the Notice of Lien.
What does clearing a lien cost?
The payoff includes condo fees owed after registration, interest, and reasonable legal fees and the costs of preparing and discharging the lien.
Can the corporation sell my unit?
It can start the power of sale process 15 days after registering a Certificate of Lien. The notice sets a redemption date 45 days after it is issued, and no further enforcement steps can be taken during that period.
Until when can I pay?
Paying sooner generally limits the added costs.
Sources
- Condominium Authority of Ontario – Special Assessments — condoauthorityontario.ca
- Condominium Authority of Ontario – Common Expenses — condoauthorityontario.ca
- Condominium Authority of Ontario – Liens — condoauthorityontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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