Condo can’t revive lost lien right using section 134

The Court of Appeal released another condominium case this month: Toronto Standard Condominium Corporation No. 1908 v. Stefco Plumbing & Mechanical Contracting Inc. As a refresher, this is the case where the declarant refused to release control of the condominium to the owners. The owners called the turn-over meeting and elected a new board. The declarant refused to acknowledge them. An application was brought to validate the meeting; the owners were successful. The declarant failed to comply with a court order that it produce records and an accounting of all payments made. The condominium recreated the accounting records and determined that one owner owed close to $50,000.00. A lien was registered against the owner’s units, but the lien could only cover the previous 3 months as set out in the Act. Prior to this, the owner defaulted under his mortgage. The mortgagee sold his units. Unfortunately, there was not enough money from the sale of the units to pay the mortgagee and the condominium so an issue arose as to which took priority – the condominium’s claim for arrears (outside of the lien) or the mortgagee’s claim under the mortgage.

The condominium argued that section 134 of the Condominium Act, 1998 gave the court the authority to make an order that the arrears took priority over the mortgage. The application judge characterized it as an “attempt to revise lien rights previously lost.”  The judge ordered the owner to pay common expense arrears, but only those under the lien took priority. The rest of the arrears were to be paid after the mortgagee. The condominium appealed.  Continue reading

Status certificate error costs condominium

What happens when a condominium fails to set out the monthly fees associated with a parking unit in a status certificate? That is was what apparently happened in 1716243 Ontario Inc. v. Muskoka Standard Condominium Corporation No. 54. The unit owner brought an application against the condominium seeking: a declaration that it was not obliged to pay monthly common element fees for two parking spaces that it owned, an order that a lien registered against its units be discharged, and costs. The condominium brought its own application against the unit owner seeking an order that the unit owner was obliged to pay monthly common elements fees according to the Act and the condominium’s declaration and by-laws.  Continue reading

Challenges by owners to the chair, proxies, and voting

Davis v. Peel Condominium Corporation No. 22 [2013] O.J. No. 2594 is a recent decision of the Superior Court of Justice about owners’ meetings, especially voting rights and the role of the chair. It was an application by an owner alleging the chair of the meeting improperly allowed 12 proxies to be used to remove the board of directors. Without the 12 votes, the requisition to remove the directors would have failed.

The Court dismissed the application. Continue reading

Improper notice invalidates a lien

In York Condominium Corporation No. 82 v. Bujold, the Ontario Court of Appeal heard a case about a condominium lien. The facts are important to understanding the case. Briefly, the condominium served a notice of lien on the owner on June 22, 2007. However, the lien was not registered on title to the owner’s unit until September 25, 2007 (more than three months later). The judge held the lien had expired. The condominium appealed to the Court of Appeal. Continue reading