- You can pay everything secured by the lien at any point until the unit is sold, and the corporation must then discharge it.
- The amount owed includes arrears, interest, and reasonable legal costs and expenses.
- A lien tied to certain issues can be disputed at the Condominium Authority Tribunal, while others go to the Superior Court of Justice.
Finding a condominium lien on title is stressful, whether you own the unit or are buying it. The good news is that the law gives a clear route to clear it.
This article explains what you generally have to pay, how timing works, and where to go if you disagree with the lien. Details vary by case, so confirm your numbers with a lawyer.
The basic route: pay and discharge
An owner can pay everything secured by the lien at any point until the unit is sold, and the corporation must then discharge the lien.
Timing matters. Once a Notice of Sale Under Lien is issued, it sets a redemption date 45 days later, and if you do not pay by then the corporation can sue for possession in the Ontario Superior Court of Justice.
A lien arises automatically when an owner defaults on common expenses, and it covers the unpaid amount, interest, and all reasonable legal costs and collection expenses. The lien expires three months after the default unless the corporation registers a Certificate of Lien in the Land Registry Office, and if it expires the corporation loses its priority over other parties with an interest in the unit.
The usual steps run in this order:
| Step | What happens |
|---|---|
| Notice of Lien | The corporation gives the owner this notice before it registers a lien. |
| Certificate of Lien | If the arrears are not paid within 10 days, the corporation can register a Certificate of Lien. |
| Notice of Sale Under Lien | It can be issued starting 15 days after the certificate is registered, and it sets a redemption date 45 days after it is issued. |
| Claim for possession | If the owner does not pay by the redemption date, the corporation can sue in the Ontario Superior Court of Justice. |
| Sale of the unit | After judgment the corporation can sell, recover the lien amounts from the proceeds, and pay the remaining balance to the former owner within 90 days of the sale. |
What you will be asked to pay
The amount includes arrears, interest, and reasonable legal costs and expenses. A registered Certificate of Lien also covers later common expenses, interest, and the legal fees and costs of preparing the certificate.
How much legal cost can be recovered has been contested in the courts, and the amount needed to discharge a lien varies by case. Ask for a written payout statement showing each item.
- Unpaid common expenses and any special assessment
- Interest on those amounts
- Reasonable legal costs and collection expenses
- Further common expenses that fall due after the certificate is registered
Special assessments and chargebacks are ownership costs separate from regular monthly fees, and a chargeback is a cost the corporation bills to one owner, usually because of that owner's act or omission. A 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.
If you are buying a unit with a lien
A status certificate may show arrears on the unit and special assessments levied since the current budget, and whatever it includes or leaves out binds the corporation. It must be provided within 10 days.
In a court decision the Condominium Authority of Ontario describes, a buyer was exempt from a share of a special assessment because the status certificate had not clearly disclosed that assessments might be levied. Whether that helps depends on the facts, so have a lawyer review the certificate and the title search before closing.
If you dispute the lien
Where you disagree with the lien, the forum depends on the issue. A lien tied to a matter within the Condominium Authority Tribunal's jurisdiction, such as nuisance (noise, smoke, odour), parking, storage, pets, records and settlement compliance, can be disputed at the Tribunal. Liens tied to issues outside that jurisdiction, such as repairs, must go to the Superior Court of Justice.
Check which kind of lien you face. A lien can arise from unpaid fees, unpaid chargebacks, or failure to carry out necessary repairs after due notice.
What to do next
- Get the Certificate of Lien and any Notice of Sale Under Lien, and note every date.
- Request a written statement of the amount needed to discharge the lien, itemized.
- Check whether the redemption date has been set.
- Pay the full amount, then confirm the corporation discharges the lien.
- If you dispute any part, speak with a lawyer about the right forum before time runs out.
Because later common expenses can be added once a Certificate of Lien is registered, ask for an up-to-date figure on the day you plan to pay, and keep proof of payment. Gather your notices, your payment records and any letters from the corporation or its lawyer before you speak with anyone.
How all of this applies depends on your situation and on your corporation's documents, so it is worth confirming the details with a lawyer.
Frequently asked questions
Can I pay off a condo lien at any time?
Yes. You can pay everything secured by the lien at any point until the unit is sold, and the corporation must then discharge it.
What do I have to pay to discharge a lien?
The amount includes arrears, interest, and reasonable legal costs and expenses. Because legal costs have been contested and vary by case, ask for an itemized statement and have it reviewed.
What if I think the lien is wrong?
A lien tied to issues within the Condominium Authority Tribunal's jurisdiction, such as parking, pets or noise, can be disputed there, while others, such as repairs, go to the Superior Court of Justice.
What happens if I do not pay by the redemption date?
The corporation can sue for possession in the Ontario Superior Court of Justice and, after judgment, sell the unit. Any remaining balance after the lien amounts are recovered must be paid to the former owner within 90 days of the sale.
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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