Short answer
The condominium corporation has a statutory lien when an owner defaults on common expenses. The lien expires three months after the default unless the corporation registers a certificate of lien within that period.
The urgent client problem
An owner treats condo fees like an ordinary unsecured bill and plans to catch up later, not realizing interest and reasonable collection, legal, registration and discharge costs can become part of the lien.
What the official rule says
Section 85 of Ontario’s Condominium Act creates the lien and permits it to cover qualifying arrears, interest and reasonable legal and collection expenses. Registration within the statutory period preserves the lien.
What this rule does not guarantee
The three-month rule is not a three-month interest-free grace period. Different monthly defaults can create rolling dates, and the corporation’s notices and chargeable costs must be reviewed. Mortgage-lender remedies remain separate.
A practical Ontario example
Illustration only: A $700 monthly arrears problem is ignored. By the time a certificate is registered, the amount needed to clear title may include several months of fees plus legal and registration expenses, making a small cash-flow issue much harder to refinance.
Practical options to explore now
Request the condo ledger and status of collection immediately. If refinancing, obtain a lawyer-confirmed payout and allow enough proceeds for a registered discharge. Also repair the monthly budget so the lien is not paid only to begin again.
Before choosing a solution, confirm
- The exact default, maturity, notice and proposed-sale dates.
- Every mortgage, lien, tax balance, arrears amount and recoverable cost.
- Current realistic property value and conservative net sale proceeds.
- Whether the proposed financing cures the entire title problem.
- The exit from any alternative/B, MIC or private solution.
Rajiv’s broker perspective
The first question is not simply, “Who will lend?” It is, “How much time and equity are actually left, and which solution improves the client’s position after every cost?” Ontario law controls notices, liens and enforcement. Each lender separately decides its underwriting, cure, renewal and payout policy. I would compare the existing-lender remedy, A or alternative/B refinancing, an appropriately structured MIC or private bridge, and a controlled sale. The best option is the one that resolves the whole problem and has a credible next step—not the option with the fastest promise.
Related: Mortgage declined? Start here · Mortgage Knowledge Centre · Updates & Rules Centre
Received an arrears letter, lien or power-of-sale notice?
Do not wait for the next deadline. Send Rajiv the notice, mortgage statement, title debts, property value and the outcome you want. He can prepare a confidential second opinion and compare practical lender routes while your lawyer confirms the legal timeline.
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