Changes are Coming - Chargebacks
Last Friday I participated in the ACMO Burlington conference as a speaker on the legal panel. One of the topics that I briefly spoke about was chargebacks and liens. I spoke about the changes coming to the lien and chargeback processes in the Condominium Act, 1998 (the "Act"). Today I'm going to summarize my presentation for those who were not able to attend the conference. Amendments to the Act As it is now, there is no process in the Act for chargebacks to unit owners. This has lead to several court cases and countless disputes. Fortunately, the amendments to the Act include a process for chargebacks by a condominium. The process is:
- Within 15 days of adding the amount to the owner's ledger the corporation must give the owner notice;
- Within 30 days of receiving the notice the owner shall:
- Pay the amount;
- If the owner transfers the unit within 30 days ensure that the amount is held in escrow and notify the corporation;
- Apply to the Condominium Authority Tribunal (if applicable); and
- Apply to the Superior Court of Justice (if the Tribunal has not be established or is not authorized to hear the dispute).
- After 30 days, the corporation can proceed with a lien if the owner does not take steps to dispute the chargeback.