What is a chargeback?
Sometimes condo corporations need to charge owners directly through their condo fees if those owners are doing something they should not be doing, or not doing something they should be. The Condo Act sets out specific reasons that condo corporations can levy these chargebacks, but corporations can allow more kinds through their declaration. Chargebacks are one of the main tools condo corporations can use to enforce compliance with their governing documents.
Condo corporations should communicate often and proactively with owners who are at risk of incurring costs and should not default to issuing a chargeback as a first step. Owners can dispute chargebacks at the Condominium Authority Tribunal or the courts, depending on the kind of chargebacks. Owners that refuse to pay may have a lien taken against their unit by the condo corporation.
Are owners responsible for damage caused by tenants or guests?
Yes, owners are responsible for any damage caused by their tenants, guests or other occupants. Condo corporations can charge an owner for the cost of repairs or up to the insurance deductible, whichever is less.