Owner's Challenge to Special Assessment
[caption id="attachment_media-31" align="alignnone" width="1880"] Photo by Gratisography on Pexels.com[/caption] A unit owner recently brought an application to the court for an order declaring a notice of sale issued by a condominium under a lien null and void. The owner was also the condominium's declarant. The declarant did not turn over the condominium to the owners when required by the Act or contribute to the common expenses for the units it still owned. Sound familiar? The owners fought to gain control of the condominium from the declarant. When they finally gained control, the new board discovered the declarant had not contributed for its units so the new board registered a lien against the units owned by the declarant. The declarant did not pay to discharge the lien so the condominium issued a notice of sale under the Mortgages Act. The declarant argued the notice of sale was invalid for four reasons:
- the special assessment was not levied in accordance with the by-laws because no budget was in place at the time;
- the notice of special assessment failed to provide the information required by the by-law;
- the information in the notice of special assessment was misleading; and
- the funds collected as part of the special assessment were spent improperly.