1716243 Ontario Inc. v. Muskoka Standard Condominium Corp. No. 54 (Ontario Superior Court)

The condominium corporation had registered a lien against the owner’s unit, for common expense arrears.  The owner asserted that: 

• The common expenses stated in the status certificate issued to the owner were lower, and the condominium corporation was forever bound by the number in the status certificate plus any assessed increases; and

• The lien was also limited to any arrears beginning three months prior to the registration of the lien and was accordingly out of time.

The Court said that the status certificate only applied until the end of the fiscal year in which the certificate had been issued.  Therefore, the condominium corporation was entitled to recover full common expenses from the beginning of the next fiscal year.  As such, the owner was entitled to pay the reduced amount, noted in the status certificate, only until the end of the fiscal year in which the certificate had been issued. 

The Court said:

Paragraph 9 of the certificate clearly sets out that the budget on which the common expense payment is set (a copy of which was attached to the certificate and enclosures) was accurate, but that a new budget may result in increases which were undetermined as of the date of the certificate.  Therefore, I find that the (condominium corporation) is bound by the status certificate and its inaccuracy, but only insofar as the period of time to which the certificate attaches, which in this case is the end of its fiscal year on March 31, 2012.

The Court also said that the lien was valid.

The Court said:

I rely on the Christiansen and Stryk cases for the proposition that the condominium corporation should be entitled to apply credits in the manner that they see fit by allowing the default to roll forward every 30 days.  I do not find, therefore, that (the condominium corporation) is statute barred from the registration of its lien.

Given the error in the status certificate, the Court reduced the interest and costs to which the corporation would otherwise be entitled in relation to the arrears.