How to Remove a Condo Lien From Your Unit in Ontario

Finding out that a lien has been registered against your condo unit is stressful, especially if you are planning to sell or refinance. The good news is that a lien for unpaid common expenses is, at its core, a debt. Clearing the debt is the main route to having the lien removed.

This article walks through what the lien covers, what you may need to pay, the practical steps to get it discharged, and what to do if you believe the amount is wrong. Every building and every file is different, so treat this as a general guide and not a substitute for advice on your own situation.

What a condo lien is and why it exists

A condo corporation automatically has a lien on a unit if the owner does not pay common expenses. The lien covers the unpaid amount, interest, and the reasonable legal costs and expenses of collecting.

To keep its priority, the corporation must register a certificate of lien within three months of the default that gave rise to the lien. If it does not, the lien expires. Before registering, the corporation must give you written notice of the lien at least 10 days ahead.

Common expenses include your share of reserve fund contributions, and each unit pays a percentage share set by the declaration. Special assessments are shared in the same percentages, and unpaid special assessments can also lead to a lien that includes interest and legal costs.

What you may have to pay to clear it

Many owners assume they only owe the missed monthly fees. The lien amount can be larger than that. It can include the arrears, later common expenses that fall due, interest, legal fees and the cost of preparing the certificate of lien.

• The unpaid common expenses that started the problem.
• Common expenses that have fallen due since then.
• Interest on the arrears.
• Legal fees the corporation incurred in collecting.
• The cost of preparing the certificate of lien.

Because these items can keep growing while the file is open, ask the corporation for a written, up-to-date statement of the exact amount needed to clear the lien. Check each line against your own payment records.

Steps to get the lien discharged

You can pay at any point until the unit is sold. Payment requires the corporation to discharge the lien. The steps below are the practical way to get there.

• Gather the lien notice, the registered certificate (if you have it), your payment history and any emails with the property manager.
• Contact the corporation promptly, since a payment plan may be possible.
• Ask for a written statement of the full amount, broken down by fees, interest, legal costs and certificate costs.
• Pay the amount in a traceable way and keep proof of payment.
• Confirm in writing that the corporation will discharge the lien once paid.
• Follow up until the discharge is registered, and keep a copy for your records, especially if you are selling or refinancing.

How long the corporation takes to register the discharge, and whether it will accept a payment plan, depends on the corporation and the facts. A lawyer can confirm the process for your file.

If you think the lien is wrong

Sometimes owners disagree with the amount, or with the charge behind it. Where you take that dispute depends on what the underlying charge is. A lien dispute goes to the Condominium Authority Tribunal only if 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.

Timing can also be a ground to question a lien. A lien expires three months after the default unless a certificate is registered in time, and the Ontario certificate form states that the lien does not secure common expenses that became due more than three months before registration. Whether this helps you depends on the dates, so have them reviewed.

What to do next

Act early. If the lien is not dealt with, the corporation has further enforcement steps available, which can include a sale of the unit. Paying or arranging payment sooner generally keeps costs from growing.

• Request a written payoff figure and check it line by line.
• Raise a payment plan with the corporation right away if you cannot pay in full.
• Collect your dates: when each payment was missed, when you got the lien notice and when the certificate was registered.
• Speak with a lawyer if you dispute the amount, the charge or the timing.

Frequently asked questions