Understanding Condominium Liens and What Can Be Done About Them

Condominium liens are financial claims that limit the ability of the owner to make use of the property. In many instances, the lien is imposed by a condominium corporation that has control of the property where the condo is located. This would be the case in a structure housing multiple units that serve as either permanent residences or investment properties that unit owners rent out from time to time.

While a lien can be dealt with, it should never be considered a minor issue. The moment that the unit owner becomes aware of the lien, it’s time to seek out one of the appeal court lawyers Toronto and see what can be done. Here is some basic information about how the legal counsel can support the client.

Identifying the Claims That Led to the Lien Filing

One of the first things to do is look closely at the purported reasons for the lien filing. In general, a condominium corporation is likely to seek a lien because of some debt that the unit owner owes. This could be some type of obligation found in the contract that exists between the owner and the corporation, such as charges for general building upkeep, insurance premiums that are outstanding, or some other expressed obligation.

At this juncture, the goal is to understand why the condo lien exists. From there, the lawyer can begin the process of qualifying the reasoning behind the lien and determine what course of action would be in the best interests of the client.

Disputing the Validity of Those Claims

Deciding how to challenge a condo lien is based on identifying any of the underlying claims that can easily be disproved. When the lawyer is able to find information that underpins those claims, it may be possible to have the lien dismissed.

For example, the lien basis has to do with unpaid recurring fees that are expressly mentioned in the contract. The appeals lawyer looks at the fees, the amount, and the due dates cited in the documentation provided for the lien. If the lawyer has financial documents that confirm those payments were made on time, the lien is likely to be dismissed. In some cases, the lien may be dismissed with prejudice, a term that simply means the corporation cannot come back later and attempt to secure a lien based on the same set of debt.

Seeking to Settle Rather Than Take the Matter to Court

If the lawyer finds there is a basis for the condominium lien, it may be possible to negotiate some sort of settlement with the corporation. It could be a series of payments that retires the debt or some other solution that’s agreeable to all parties concerned. If everyone can come to an agreement, the lien can be dismissed with relative ease.

Pursuing the Matter in Court

if negotiations break down and it’s not possible for the two parties to reach a resolution, the matter can be appealed in court. At this juncture, appeal court lawyers typically do whatever they can legally to convince the court that the lien is without merit. If successful, the client will no longer be subject to the terms of the lien.

Dealing with a lien is nothing to take lightly. Seek help from one of the appeal court lawyers in Toronto as soon as possible. Hopefully, the matter can be resolved with relative ease and things can get back to normal.