Condo Arrears- Management Mistakes
Condo Managers involved in the collection of common expense arrears may want to stay clear of the following condo arrears mistakes:
- Missing the three month period to secure the arrears by registration of the lien.
Reasons: Sympathy for the unit owner who needs more time to pay the arrears or are just too busy and didn't get the information over to the lawyers in time.
- Issuing a clear Status Certificate when there are arrears.
Reason: Unit owner promises to pay the arrears and the manager accepts that promise. Later finding that the unit owner did not pay and the unit has been transferred to a new owner.
- Relying on an existing lien to secure new arrears eventhough all previous arrears had been paid in full, without advising legal counsel.
Reason: Misunderstanding of what the lien secures and doesn't want to contact legal counsel to ask.
- Form 14 (pre-notice of lien) deficiencies without serving the proper addresses or failing to serve the form in time so that the lien can be registered prior to the end of the 3rd month.
Reason: Too busy to get it done in time and doesn't want to contact legal counsel to ask.
All this to say that these mistakes may result in management picking up the tab. It is best to follow a procedure which outlines steps to be taken when a unit owner is in arrears. Click the following link for a sample Collection Policy.