Unpaid Fees Recovery 101

The Condo Board has the responsibility to avoid being unable to pay contractors and other management related services. A process has been put in place to address situations where one or a few homeowners are owing fees. The Condo Board and its authorized representatives will jumpstart the enforcement process by sending notice to the homeowner, before registering a lien, and possibly pushing for the forced sale of the property if condo fees are still unpaid. Legal fees and other collection related fees will be added to the amount owed. The homeowner has the option to pay the total amount owing at any time during the process. This is the best option available to homeowners to get the collection process resolved. All expenses incurred by all parties will be the responsibility of the homeowner. In a few circumstances, the condo board may consider a reasonable payment arrangement if formally requested by the homeowner. 

In Ontario, the process for recovering unpaid condo fees involves: 

1. Sending a debt reminder notice.

2. Sending a notice of lien. 

3. Registering a certificate of lien. 

4. Issuing a notice of sale.

5. Redemption period. 

6. Filing a statement of claim. 

7. Selling the condo or townhouse unit. 

LET'S TALK MONEY:

CONDO MAINTENANCE FEES

Condo fees, also called common expense fees or maintenance fees, are a monthly payment made by homeowners to cover the costs of maintaining shared areas within a complex. These fees can range from $50 – $300 per month or more. The amount depends on the condo's location, size, and amenities. These fees usually pay for services provided by contractors, and also cover the upkeep of shared spaces, like parking lots, playground, landscaping, insurance, snow removal, and the reserve funds. Condo fees should be included in the total monthly cost of owning a property, and why condo fees are used by finance professionals to calculate mortgage qualifications. 

Condo fees are mandatory monthly payments made by condo owners to maintain the common areas of their building. No excuse is acceptable for not paying condo fees on time. Condo fees are calculated by adding up the total projected expenses for the community (like amenities, services, and maintenance) and then divided among the residents.

Tracking payments consumes a lot of administrative resources, and why management companies usually prefer imposing an automated direct payment system. When condo fees are paid without providing the unit number or homeowners name, such payment may be viewed as an anonymous donation. Maintenance fees often increase due to inflation, mismanagement, or if the complex is difficult to manage. Condo corporations often use special assessments to cover shortfalls in their yearly budgets.

SPECIAL ASSESSMENTS

A special assessment is an extra one-time or occasional charge that's added to the homeowners’ common expenses fees, with the objective of covering unexpected expenses. Condo corporations will tell owners how much they must pay. An owner's portion is calculated using the same percentage used to calculate common expenses fees. Owners must pay their portion of any special assessments. Not paying will lead to the corporation having a lien against the individual owner's unit. Non-payment may also delay the work that needs to be done by the management.

RESERVE FUND STUDY

A reserve fund study is a mandated assessment for condominiums and other strata corporations to evaluate the adequacy of their reserve fund for future major repairs and replacements of common elements. Conducted by a qualified professional, the study involves a physical assessment of the building's components and a financial analysis to project costs and develop a funding plan, ensuring the corporation can meet its long-term financial obligations and avoid large special assessments. 

Monthly Condo Fees:

• Presently $45.19

• An updated amount is projected to become effective from November 1st, 2025
  
  

Special Assessments: (None at the moment)

• To pay $650 in whole before March 1st, 2025
  or 

• In installments of $250 by January 1st, 2025

• Then pay $200 by February 1st, 2025

• Then pay $200 by March 1st, 2025