Condo Fee Collection Best Practices

Condo directors are responsible for collecting condo fees from owners, as these fees are used to pay for common expenses. When owners fail to pay these fees, directors are obligated to ensure that they are collected, and registering a lien is necessary to protect all condo owners. Following an established collection process is important to ensure that arrears remain collectible. Directors should take a consistent approach with all owners, avoid granting additional time for certain owners to make payments, and avoid interfering with the collection of money owed to the corporation. Procedures for the collection process may include delivering written notices, applying interest to outstanding arrears, providing directors with monthly updates, sending a notice of lien to the owner, and informing legal counsel if payment is not made. Two months after registration of a lien, further legal action may include a power of sale or foreclosure.