Part 35 published on 01/09/11
Foreclosure is one of the possible avenues of lien enforcement
This residential condominium had registered liens (for unpaid common expenses) against the developer’s unsold parking units. The value of the parking units was unknown and power of sale was therefore not considered the best enforcement remedy under the liens. Instead, the condominium corporation sued successfully for foreclosure – resulting in the corporation becoming the owner of the units.
[Editorial Note: Ontario’s Condominium Act, 1998 says that condominium liens can be enforced in the same manner as a mortgage. This case confirms that lien enforcement can include foreclosure. Note that the foreclosure process is a Court-controlled process that includes opportunities for the mortgagor to redeem the debt or to request a sale of the secured property – subject to contrary Court order.]