Condominium Fee Arrears: The Foreclosure Remedy

Condominium ownership places the burden on owners of units within the condominium corporation to contribute to the common and capital costs required for the upkeep and management of the complex. The Condominium Property Act, 1993¹ (the "CPA") establishes that a condominium corporation is responsible for all expenses and liabilities incurred concerning the common property and common facilities.² To do this, section 55 of the CPA requires a condominium corporation to establish both a common expense fund and at least one reserve fund.³ The common expense fund receives contributions from the owners which are used for the control, management, and administration of the common property, common facilities, enforcement of the bylaws, insurance premiums and all other expenses incurred managing the complex.⁴ Reserve funds are established for to cover unforeseen common expenses or major repairs or replacements the corporation may require⁵, such as roofs, parking lots and pools.