- When an owner defaults on common expenses, the corporation automatically has a lien against the unit.
- The lien expires three months after the default unless the corporation registers a Certificate of Lien.
- If the debt stays unpaid, the corporation can ultimately sue for possession and sell the unit.
Falling behind on condo fees can feel manageable for a month or two. In Ontario, though, the corporation has strong tools to collect, and a lien is the first of them.
This article walks through how a lien arises under the Condominium Act, 1998, the steps that follow, and what it can mean for your unit. Your own situation may differ, so a lawyer can confirm how it applies to you.
How the lien arises
When an owner defaults on common expenses, the corporation automatically has a lien against the unit (Condominium Act, 1998, ss. 85–86). The lien covers the unpaid amount, interest, and all reasonable legal costs and collection expenses.
Common expenses include maintenance of the common elements, reserve fund contributions, and services such as cleaning and management. Each owner's share is a percentage set in the declaration and may vary with unit size. For example, a unit with a 5% share of a $1,000 monthly budget pays $50 a month.
Special assessments and chargebacks are ownership costs separate from regular monthly fees. A condo board can levy a special assessment through common expense fees without owner approval, for reasons such as unforeseen expenses, a major repair that exceeds its budget, and litigation costs. Your share uses the same percentage as your common expense share, and owners must pay it.
A special assessment that goes unpaid also gives the corporation a lien covering the amount, interest and reasonable legal costs.
Other debts that can lead to a lien
- Chargebacks: if you cannot pay chargebacks added to your fees and no solution is reached, the corporation automatically has a lien for that debt.
- Repairs: a corporation can also get a lien when an owner, after due notice, fails to carry out necessary maintenance and repairs.
A chargeback is a cost billed to one owner, usually because of that owner's act or omission.
Registering the lien
The lien does not last forever on its own. It expires three months after the default unless the corporation registers a Certificate of Lien in the Land Registry Office. If it expires, the corporation loses its priority over other parties with an interest in the unit.
Before registering, the corporation gives the owner a Notice of Lien. If the arrears are not paid within 10 days, it can register the Certificate of Lien. The certificate covers all amounts owed under the lien, including later common expenses, interest, and the legal fees and costs of preparing it.
If you are buying a unit, the status certificate may include any arrears on the unit, and it must be provided within 10 days.
What can happen to your unit
The steps come in order, and each has its own waiting period, as the table shows.
| Stage | What happens |
|---|---|
| Notice of Sale Under Lien | Can be issued starting 15 days after the Certificate of Lien is registered |
| Redemption period | The redemption date is 45 days after the notice is issued, and no further enforcement steps can be taken in that time |
| Court action | If you do not pay by then, the corporation can sue for possession in the Ontario Superior Court of Justice |
| Sale | After judgment it can sell the unit and recover the lien amounts from the proceeds; any balance must be paid to the former owner within 90 days of the sale |
You can pay everything secured by the lien at any point until the unit is sold, and the corporation must then discharge the lien. The amount owed includes arrears, interest, and reasonable legal costs and expenses.
What to do next
How a lien applies to you depends on your declaration, your by-laws and the dates in the notices you receive. These practical steps can help you stay organised.
- Contact the corporation early and ask for a written statement of what you owe, including interest and costs.
- Keep every notice, especially any Notice of Lien or Notice of Sale Under Lien, and note the dates.
- If you dispute the lien, find out whether the issue is one the Condominium Authority Tribunal can hear, such as parking, pets or noise; issues such as repairs go to the Superior Court of Justice.
- Speak with a lawyer before the deadlines pass, since legal costs recoverable under a lien have been contested and vary by case.
Frequently asked questions
Does the condo need a court order to get a lien?
No. When an owner defaults on common expenses, the corporation automatically has a lien against the unit. Registering it in the Land Registry Office is what preserves its priority.
How long do I have after a Notice of Lien?
If the arrears are not paid within 10 days, the corporation can register a Certificate of Lien.
Can I lose my unit over unpaid fees?
Yes, in the end. If you do not pay by the redemption date, the corporation can sue for possession and, after judgment, sell the unit. You can pay what the lien secures at any point until the unit is sold.
Can I dispute a lien?
Possibly. A lien tied to an issue within the Condominium Authority Tribunal's jurisdiction, such as nuisance, parking, storage or pets, can be disputed there, while issues such as repairs must go to the Superior Court of Justice.
Sources
- Condominium Authority of Ontario – Common Expenses — condoauthorityontario.ca
- Condominium Authority of Ontario – Special Assessments — condoauthorityontario.ca
- Condominium Authority of Ontario – Status Certificates — condoauthorityontario.ca
- Condominium Authority of Ontario – Liens — condoauthorityontario.ca
- Condominium Authority of Ontario – Fees and Finances — condoauthorityontario.ca
- Condominium Authority of Ontario – Chargebacks — 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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