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Legal Ease
Legal Ease, Lawyer
Category: Canada Business Law
Satisfied Customers: 98030
Experience:  I am a practicing lawyer and have also been an online professional for 5 years.
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We received a "special assessment" fee of $1000

Customer Question

We received a "special assessment" fee of $1000 that each condo owner is to pay. It makes me angry that they expect owners to hand over cash - no questions asked. They do as little as possible to maintain the area. That's alot of money to dish out of each
household. Am I obligated to pay and are they allowed to claim a special assessment fee each year? They have threatened to put a lien on the condo and I would be paying the legal fees. Personally, I think this boils down to mismanagement on the condo corps
side. They are $30,000 deficit in reserve fund. What's my best option.
Submitted: 1 year ago.
Category: Canada Business Law
Expert:  Legal Ease replied 1 year ago.

What province is this please?

Customer: replied 1 year ago.
Ottawa, Ontario
Expert:  Legal Ease replied 1 year ago.

In Ontario, unfortunately, the Board can require a special assessment without the approval by the owners.

Once the board levies a special assessment the payment is mandatory. So if you don't pay they can take all steps necessary to enforce the payments just as the would for an unpaid condo expense. That means they can register a lien on title.

The only step you can take is to call a special meeting of owners with a view to removing some or all of the board members and electing a new board to replace them.

I am sorry this is not the answer you were hoping for.

Customer: replied 1 year ago.
Thank You. Your answer at least tells me where I stand, even though a lien is probably not all that bad.
Expert:  Legal Ease replied 1 year ago.

It can be bad because they can actually seize and sell the unit.

It better not to have the lien.

Also if you need to refinance or sell you would have to pay off the lien first.

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