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The Condominium Act requires owners be given at least 10 days notice that a lien will be registered against their unit for unpaid common expenses and this notice must be given by serving a Form 14 on the owner.
It is our hope that owners honour their obligation to pay common element fees as they are due on the first day of each and every month. We understand, however, that financial situations can change, which may result in overdue accounts, and it is in the owner’s best interest to resolve this concern as soon as possible and communicate with our office when arrears have occurred.
At Maple Ridge, a consistent arrears collection policy has been established ensuring that at all times the corporation’s interests are protected. Its application is universal and is triggered by the status of the account in question. It is our hope all owners will remain current and that these efforts will serve as reminders and minimize lien activity.
In summary, the timelines of the Maple Ridge arrears collection and lien policy are as follows:
- All payments are due on the first of the month.
- Post-dated cheques and pre-authorized payment plans are encouraged.
- Day 15: First statement sent out for all balances of $10 or more in the first month.
- Day 34-36: Second statement sent out for all owners 2 months in arrears – with a strong warning that payment is overdue and required immediately.
- Day 44-48: Those owners who are 2 months in arrears receive a final warning letter - A Notice of Intent to Lien (NOIL or Red Letter). This Notice states legal action will be taken against the unit and all associated costs will be added to the account if it is not brought up to date within 10 days.
- Day 55-60: Accounts Receivable clerk verifies payment has not been received and attempts to contact the resident to ensure that the NOIL has been received and what actions they intend to take to resolve the arrears. In addition, the resident is reminded that in a few days, they will be 3 months in arrears.
- Day 61-64: Accounts Receivable clerk verifies payment has still not been received and that no memos are on the account with regards to promised payments. Individual account statements are printed for every owner 3 months in arrears and are reviewed (complete with any notes on the account) by the Property Manager. The Property Manager approves and initials each statement authorizing the commencement of lien action against the unit.
- Day 65-66: The approved/initialed individual account statement is faxed to the Corporation’s lawyer – providing a history of the arrears on the account and authorizing the commencement of lien action against the unit. Once the lawyer has been given approval to commence lien action, the file has been officially transferred and all correspondence and communication is made through the Lawyer’s office.
- The interest calculation for the Form 14 is in accordance with the Corporation’s By-law.
- Day 67-70: Notice of Lien (Form 14) is issued by the Corporation’s lawyer and, if within 10 days, there has been no payment or contact on the account written consent is again provided to the lawyer to proceed with the registration of the lien.
- Day 81-85: The lien is registered on title and all associated costs are added to the account.
- If necessary, the Board would determine and approve a timetable for any Power of Sale activity against the unit.
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