- The corporation must give written notice of the lien at least 10 days before it registers a certificate of lien.
- A Notice of Sale Under Lien can issue 15 days after the certificate is registered, and it sets a redemption date 45 days after issuance.
- If you pay before the redemption date, the corporation must discharge the lien.
- The CAO says corporations rarely need to sell units to recover debts.
If you have let a condo lien sit, you may be worried that the corporation can take your home. A sale is possible in Ontario, but it comes at the end of a series of steps with notice periods built in, and you have chances to stop it along the way.
This article describes the process in plain language, as it is generally described by the Condominium Authority of Ontario. It is general information only. If you have received any notice about a sale, speak with a lawyer promptly.
How a missed payment becomes a lien
A condo corporation automatically has a lien on a unit if the owner does not pay common expenses. It covers the unpaid amount plus interest and reasonable legal costs and expenses of collecting.
The lien expires three months after the default unless the corporation registers a certificate of lien within that time. Before it registers, the corporation must give you written notice of the lien at least 10 days ahead.
The amount can grow. It can include the arrears, later common expenses that fall due, interest, legal fees and the cost of preparing the certificate of lien.
The timeline if the lien is not paid
The steps below follow the Condominium Authority of Ontario's description of the process.
| Step | What happens |
|---|---|
| Notice of lien | Written notice to the owner at least 10 days before registration |
| Certificate registered | The corporation registers the certificate of lien within the three-month period |
| Notice of Sale Under Lien | Can issue 15 days after the certificate is registered |
| Redemption period | The redemption date is 45 days after issuance, with no further enforcement allowed in that period |
| Statement of Claim | If unpaid by the redemption date, the corporation can file for possession in the Superior Court of Justice |
| Motion to remove occupants | Can be filed 10 days after judgment |
| Surplus paid out | Any balance goes to the former owner within 90 days of the sale |
Your right to stop it by paying
Owners can pay at any point until the unit is sold, and payment requires the corporation to discharge the lien. During the redemption period, if the owner pays, the corporation must discharge the lien.
The Condominium Authority of Ontario advises contacting the corporation promptly, because a payment plan may be possible. Whether a plan is available in your case depends on the corporation and the circumstances.
- If you pay, the corporation must discharge the lien.
- No further enforcement is allowed during the 45-day redemption period.
- Waiting generally leaves fewer options, since the process moves from notices to a court claim.
If the corporation goes to court and sells
If you do not pay by the redemption date, the corporation can file a Statement of Claim for possession in the Ontario Superior Court of Justice. A motion to remove remaining occupants can be filed 10 days after judgment.
After a sale, the corporation recovers the amounts owed from the proceeds. The balance goes to the former owner within 90 days of the sale. Other secured creditors, such as a mortgage lender, may also have claims on the proceeds, so the amount left over depends on the facts.
It helps to keep this in perspective. The CAO says corporations rarely need to sell units to recover debts. Still, the process is real, and the costs of getting to that point are added to what you owe.
If you disagree, and what to do next
If you dispute the lien, the forum depends on the charge behind it. The Condominium Authority Tribunal handles lien disputes only where the underlying charge is within its jurisdiction, such as nuisance, parking, pets or records. Liens tied to matters like repair charges must be disputed in the Superior Court of Justice.
- Find every notice you have received and note the dates on each.
- Ask the corporation for a written payoff amount with a breakdown.
- Contact the corporation about a payment plan before the redemption date.
- Do not ignore a Statement of Claim or any court document; get legal advice quickly.
- Tell your mortgage lender or a lawyer if a Notice of Sale Under Lien arrives.
Frequently asked questions
How long do I have after a Notice of Sale Under Lien?
The notice sets a redemption date 45 days after it issues, and no further enforcement is allowed during that period. If you pay, the corporation must discharge the lien.
Can the corporation sell my condo right away?
No. The process includes written notice before the certificate is registered, a Notice of Sale Under Lien that can issue 15 days after the certificate is registered, and a court claim for possession if you do not pay by the redemption date.
Do I get anything if the unit is sold?
After a sale, the corporation recovers the amounts owed from the proceeds, and the balance goes to the former owner within 90 days of the sale. How much is left depends on what is owed and on other claims against the unit.
Is a sale common?
The CAO says corporations rarely need to sell units to recover debts. That does not mean you can ignore a lien, since the steps are available and costs keep adding up.
Sources
- Condominium Authority of Ontario (CAO) — condoauthorityontario.ca
- Court of Appeal for Ontario – CIBC Mortgages v. YCC 385, 2017 ONCA 542 — ontariocourts.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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