Condominium liens – With Great Power Comes Great…Accountability

In the case of CCC 56 v. Chreim, the Superior Court has confirmed that a condominium must discharge a lien once the unit owner pays all the amounts owed, including expenses to discharge the lien. Although the Condominium Act authorizes the condominium corporations to register liens to collect unit owners' shares for common expenses, the condo must not exceed its legal powers to collect other expenses or legal fees unrelated to the collection or attempted collection of the unpaid amount. Furthermore, the court found that the condo must be transparent in attributing the owner's payment to their account and keep track of the expenses that they claim as secured under the lien. Overall, the case highlighted the importance of balancing the powers authorized by Section 85 of the Condo Act and the responsibilities that come with those powers.