- If condo fees go unpaid, the corporation automatically has a lien on the unit covering the unpaid amount, interest and reasonable legal costs.
- The Condominium Authority Tribunal cannot hear repair and maintenance disputes or financial and budget disputes.
- Chargebacks for repairs and damage go to mediation, arbitration or the Superior Court, and an owner facing a lien tied to repair charges must dispute it in court.
- If you are behind, contact the corporation promptly because a payment plan may be possible.
Your unit has a leak, a broken elevator keeps failing, or a common area repair has dragged on for months. You keep paying your monthly fees and nothing happens, so the idea of holding the money back until the work is done feels fair.
Before you do that, it helps to understand what the corporation can do if fees stop. This article explains how liens work, where repair disputes can actually be heard, and what steps usually make more sense than withholding.
What your condo fees are for
Condo fees, also called common expenses or maintenance fees, cover maintaining the common elements, reserve fund contributions, and services such as cleaning and building maintenance. They are a financial obligation shared among all owners.
That shared nature is the key problem with withholding. Your fees are part of a pooled budget that pays for the very repairs you want done. When one owner stops paying, the corporation has less money for everyone, and it also has tools to collect.
The lien risk if you stop paying
If an owner does not pay condo fees, the corporation automatically has a lien on the unit. The lien covers the unpaid amount, interest and reasonable legal costs. A lien can arise from arrears on monthly condo fees, and it can also arise when an owner, after due notice, fails to complete required maintenance and repairs.
The process has steps. The corporation must give written notice of lien at least 10 days before registering a Certificate of Lien, and must register it within three months of the default or the lien expires.
Whether a claim that repairs were not done is a defence to unpaid fees depends on the facts and on your declaration and the Act. Do not assume it protects you. A lawyer can tell you how your situation is likely to be viewed before you stop paying.
Where a repair dispute can be heard
Many owners assume the Condominium Authority Tribunal can order repairs. It generally cannot. The CAT cannot hear financial or budget disputes, repair and maintenance disputes, or changes to the common elements.
| Issue | Where it generally goes |
|---|---|
| Repair and maintenance disputes | Not the CAT |
| Chargebacks for repairs and damage | Mediation, arbitration or the Superior Court |
| A chargeback on an issue already within the CAT's jurisdiction, such as parking | The CAT |
| A lien after a repair charge you did not pay | Owner must dispute the lien in court |
The tribunal's scope can change over time, so confirm current rules before choosing a forum.
Related situations that can confuse things
Sometimes the money owed is not ordinary fees. A chargeback lets a corporation charge costs back to an owner through condo fees when the costs result from something the owner did or did not do. The Act lists specific situations, including an owner required to do work who does not, and damage, where the charge is the lesser of the repair cost or the corporation's insurance deductible.
A corporation cannot charge back compliance-related costs, such as legal letter fees, without permission from the CAT or the courts. If you see odd items on your account, ask for an explanation in writing.
- Entry for repairs: only people authorized by the corporation may enter a unit, and only for necessary repairs, maintenance or to fulfil the corporation's responsibilities.
- Entry must be at a reasonable time with reasonable notice, although emergencies such as a fire or water leak may require immediate access without notice.
- If access to your unit becomes a point of disagreement, how that applies depends on your situation, so it is worth confirming with a lawyer.
What to do instead of withholding
Keep paying while you push for the repair through proper channels. If you are already behind, the CAO advises contacting the corporation promptly, as a payment plan may be possible.
- Keep paying fees on time while you pursue the repair.
- Report the problem to the manager and board in writing, with dates and photos.
- Keep copies of every message, work order and reply.
- Ask when the repair is scheduled and who is responsible for it.
- Review your declaration and by-laws to see who is responsible for what.
- If you are in arrears, contact the corporation promptly about a payment plan.
- If you receive a notice of lien, get legal advice right away, because the notice period before registration is only 10 days.
- Ask a lawyer which forum fits your dispute: mediation, arbitration or the Superior Court.
Frequently asked questions
Can the condo tribunal order the board to do repairs?
No. The Condominium Authority Tribunal cannot hear repair and maintenance disputes, financial or budget disputes, or changes to the common elements. Chargebacks for repairs and damage go to mediation, arbitration or the Superior Court.
What happens if I stop paying condo fees?
The corporation automatically has a lien on the unit for the unpaid amount, interest and reasonable legal costs. It must give written notice of lien at least 10 days before registering a Certificate of Lien.
How long does the corporation have to register a lien?
It must register the Certificate of Lien within three months of the default or the lien expires. A lawyer can confirm how this timing applies to your situation.
What if I already owe arrears?
The CAO advises owners with arrears to contact the corporation promptly, as a payment plan may be possible. If a lien is tied to a repair charge, the owner must dispute it in court.
Sources
- Condominium Authority of Ontario – Common Expenses — condoauthorityontario.ca
- Condominium Authority of Ontario – Chargebacks — condoauthorityontario.ca
- Condominium Authority of Ontario – The Tribunal's Jurisdiction — condoauthorityontario.ca
- Condominium Authority of Ontario – Fees and Finances — condoauthorityontario.ca
- Condominium Authority of Ontario – Liens — condoauthorityontario.ca
- Condominium Authority of Ontario – Who is responsible for repairs and who can enter your unit — 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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