In Ontario's condominium system, what happens if a unit owner fails to pay monthly common expenses for an extended period?
Correct Answer
B) The corporation can register a lien and potentially force the unit's sale
Under Ontario's Condominium Act, unpaid common expenses become a lien against the unit, and the condominium corporation can register this lien and ultimately force the sale of the unit to recover the debt. This lien takes priority over most other encumbrances except property taxes.
Why This Is the Correct Answer
Option B correctly identifies the legal process under Ontario's Condominium Act, 1998. When common expenses remain unpaid, the condominium corporation can register a lien against the unit under section 85 of the Act. This lien has priority over most other encumbrances (except property taxes and certain others) and can ultimately lead to a power of sale proceeding to recover the debt. The corporation must follow proper notice procedures and legal steps, but this mechanism ensures they can recover unpaid amounts while respecting property rights and due process requirements.
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- → An Ontario condominium declaration allocates Unit 15A a 1.2% share of the common expenses. The corporation's annual budgeted common expenses are $600,000. What does Unit 15A contribute each year, and how many votes does the unit carry at owners' meetings?
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