"Like a Mortgagee”: No Uncertainty With Condo Liens And Foreclosure/Power Of Sale

The Superior Court of Justice was asked whether a condominium corporation can foreclose on a unit to enforce its lien. While the Court did not answer the question, earlier decisions have made it clear that a condominium lien can be enforced through foreclosure. Section 85(6) of the Condominium Act, 1998 provides that a lien “may be enforced in the same manner as a mortgage”. The blog explains the legal and procedural distinction between “foreclosure” and “power of sale” and how they relate to liens in a condominium context. The blog concludes that owners faced with a disputed lien should consider paying the lien “under protest” at the earliest instance to “stop the bleeding” and that the validity of a lien can be challenged in court after the fact.