Bill 95 2012

An Act to amend the Condominium Act, 1998 with respect to the recovery of common expenses

Note: This Act amends the Condominium Act, 1998.  For the legislative history of the Act, see the Table of Consolidated Public Statutes – Detailed Legislative History at www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

   1.  Section 88 of the Condominium Act, 1998 is repealed and the following substituted:

Mortgagee's duty

   88.  (1)  If an owner defaults in the obligation to contribute to the common expenses, the mortgagee of the unit is liable to pay,

  (a)  the amounts of the owner's contribution to the common expenses that are unpaid in respect of the mortgaged premises; and

  (b)  all interest owing and all reasonable legal costs and reasonable expenses that the corporation incurs in connection with the collection or attempted collection of the amounts described in clause (a), including, where applicable, the costs of preparing and registering a certificate of lien and a discharge of it.

Mortgagee's rights

   (2)  Every mortgage of a unit shall be deemed to contain a provision that,

  (a)  the mortgagee has the right to collect the owner's contribution to the common expenses and shall promptly pay the amount so collected to the corporation on behalf of the owner;

  (b)  the owner's default in the obligation to contribute to the common expenses constitutes default under the mortgage;

   (c)  payments made by the mortgagee under subsection (1), together with interest and all reasonable costs, charges and expenses incurred in respect of the payments, are to be added to the debt secured by the mortgage and to be payable, with interest at the rate payable on the mortgage; and

  (d)  if after demand the owner fails to fully reimburse the mortgagee, the mortgage immediately becomes due and payable at the option of the mortgagee. 

More than one mortgage

   (3)  If a unit is subject to more than one mortgage, subsections (1) and (2) only apply to the mortgagee who has priority and the related mortgage.

Statement of common expenses

   (4)  A corporation shall, on request and free of charge, provide to the mortgagee of a unit a written statement setting out the common expenses in respect of the unit and, if there is a default in the payment of them, the amounts described in subsection 85 (3) in respect of the unit. 

Transition

   (5)  This section applies as it read immediately before its re-enactment by section 1 of the Condominium Amendment Act (Recovery of Common Expenses), 2012 if, before its re-enactment, a certificate of lien had been registered under section 85 in respect of a unit and had not been discharged.

Commencement

   2.  This Act comes into force four months after the day it receives Royal Assent.

Short title

   3.  The short title of this Act is the Condominium Amendment Act (Recovery of Common Expenses), 2012.

EXPLANATORY NOTE

The Bill amends the Condominium Act, 1998.  The amendments provide that if an owner of a condominium unit defaults in the obligation to contribute to the common expenses, a mortgagee of the unit is liable to pay the amount that is unpaid by the owner and other related costs.