What is a lien?
A lien is a legal claim or right against an asset used to recover an unpaid debt, including selling a property. If an owner doesn’t pay their condo fees, their condo corporation can automatically place a lien against their unit.
How long does a corporation have to register a lien?
A corporation must register a Certificate of Lien with the Land Registry Office within three months of when the default payment first occurred, otherwise it automatically expires.
What notice is required before a lien can be registered?
A corporation must send a Notice of Lien to the owner at least ten days before the unit lien is registered. Learn more about the lien process.
What does a lien cover?
A Certificate of Lien covers all amounts owed, including condo fees owed after the lien’s registration, interest, reasonable legal fees and costs to prepare and discharge the lien.
What should board directors consider before enforcing a lien?
Enforcing a lien is complex, costly and time-consuming for the condo corporation and owner. While it is crucial to safeguard the corporation’s interests, boards should first explore collaborative solutions with the owner whenever possible to minimize time and financial burdens.
When must a lien be discharged?
If the owner pays what they owe before the unit is sold, the condo corporation must discharge the lien.