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Daniel Freudman
Daniel Freudman, Lawyer
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in ontario, it is legal for an individual or a condo corporation

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in ontario, it is legal for an individual or a condo corporation to charge interest on money owed, where there is no previous agreement in place?
If there was no previous agreement in place, how specifically did the loan come about? Please clarify.
Customer: replied 3 years ago.

I am referring to monies owed such as maintenance fees or other costs whichif not paid usually incur a lien. However there has been mention of charging interest as well, so I'm wondering if this is legal

Generally, interest does not accrue on such unless the condo agreement or other such contract tacitly or explicitly refers to such. In this case, if there was no agreement, the condo corp would have to argue that interest on overdue fees was assumed, likely at the Court of Justice Act rate of 3%. However, you could certainly argue against it saying that interest was never part of the agreement and thus should not be applied, especially if they are requesting a high rate.

 

In summary, I don't see interest accruing if it was not previously agreed upon. However, if they litigate this matter, the judge may impute a reasonable interest rate if s/he feels just.

 

 

Hopefully that is of assistance.

 

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DISCLAIMER: My communication is general legal information only and is not intended to be relied upon. This information is not legal advice, nor is it a substitute for such, and if you are seeking legal advice then it is recommended that you retain an attorney. There is no guarantee as to the accuracy of this information, nor shall I be held liable for any claim, demand or damages, actual or consequential, of any kind or nature, known or unknown, arising out of or in any way connected to this information or the issue it pertains to. No solicitor-client relationship has been created by this communication.

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Customer: replied 3 years ago.

Thank you so much, that is most helpful, Paula

You are welcome, best of luck with your matter.

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