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November 11, 2014 Mario D. Deo

Important Notice to Managers and Administrators after Placement of a Lien

We understand that it is easier to have Fine & Deo collect all payments and to manage the entire collection of the lien, and we do this to the greatest extent permitted by the courts. However, in recent cases, courts have criticized condominium corporations that have refused, returned, or rejected payments from unit owners. This has resulted in some court decisions disallowing the corporation to collect legal costs and interest from the unit owner. Accordingly, the following procedures should be followed after a lien has been registered on a unit:        

  • While a condominium corporation must never refuse a payment, it is permissible to direct a unit owner to submit payments to our office by advising them as follows:

“The Corporation requests that all payments be made through its legal counsel, Fine & Deo, Barristers and Solicitors, until this matter is resolved.”

           If, after being advised of the above, the owner still tenders payment, the corporation must accept it.

  • Whenever a payment is accepted, Fine & Deo must be notified, and a copy must be sent to Fine & Deo immediately.

  • It is permissible to refuse communication with the owner and to advise the unit owner that Fine & Deo will communicate with the unit owner on the corporation’s behalf. If the corporation does communicate with a liened unit owner, Fine & Deo must be notified of the details of its communication, in writing, immediately.

  • Do not cancel Pre-authorized Payments/Automatic Payments, unless we advise you to do so.

  • Uncertified cheques can only be rejected or returned when the “clearing period” will jeopardize the corporation’s rights to register a lien before the end of the three month liening period prescribed by the Condominium Act, 1998. In other words, if a unit owner submits uncertified funds at the end of the third month of arrears, the corporation can insist on accepting only certified funds, since the owner’s uncertified payment could be returned NSF in the fourth month, thereby making the first month of arrears “nonlienable”. Otherwise, uncertified cheques must be accepted.

  • Do not make any promises or give any indulgences to unit owners without our knowledge.

Mario D. Deo

Mario D. Deo Partner

B.A., LL.B.

mdeo@finedeo.com
905.760.1800 x225
905.760.0050

3100 Steeles Ave. W., Suite 300 Vaughan, Ontario, Canada L4K 3R1  TF: 1.888.FINEDEO  P: 905.760.1800  F: 905.760.0050  TFF: 1.888.CONDO55  E: info@finedeo.com
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