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ARTICLE · 14 FEBRUARY 2017

Register Your Lien Within Three-Months Of A Default Or Risk Losing Priority… A Reminder

Miller Thomson
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A condominium corporation repairs a leaky toilet because a unit owner failed to do so.

CanadaReal Estate and Construction
Megan Mackey
Megan Mackey
Baktash Waseil
Baktash Waseil
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Trivia Question – A condominium corporation repairs a leaky toilet because a unit owner failed to do so. The corporation immediately sends a letter to the unit owner demanding payment of the plumber's invoice within two weeks of the date of the letter. The owner refuses to pay. When does the deadline to register a lien start to run? After two weeks? When the cost is added to the unit ledger? After the condominium pays the plumber?

The recent CIBC Mortgages decision confirms that lien periods begin to run when payment is due but not made. In the example above, the lien period would begin to run the day after the payment deadline specified in the letter.

In CIBC Mortgages Inc. v. York Condominium Corporation No. 385, the Court confirmed that a condominium lien is not valid unless it is registered within three months. The question is, three months from when? The answer is important because the lien period is unforgiving.

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