CONDOMINIUM COLLECTIONS: Collecting During the Holidays

The holiday season can be a particularly difficult time of year for condominium corporations to coordinate and commence lien proceedings.  While it is not uncommon for unit owners who have failed to make payment of common expenses to approach property management and the Board at any time of year to explain why, often with stories that tug at one’s heartstrings, and to request some type of leniency or concession, during the holidays such circumstances may be especially difficult when seen against the “spirit of the season”.

Only (perhaps) in a condominium corporation do so many individuals have the ear of government - access to the Board.  Certain individuals are identified as “friends of the Board”, others “troublemakers”, and so on.  When it comes to common expense collection practices, however, this should not matter.  The same protocol should apply whether the owner who has failed to make payment of his/her common expenses is a “condo commando” or a “beloved and dedicated contributor to the community”.  This not only streamlines the process but ensures that it is consistently applied.  In the event that collection proceedings are challenged by the unit owner and the matter ultimately proceeds to court, it certainly supports the condominium’s position to confirm that the unit owner was not singled out (as many often claim to be the case) but rather treated as any owner in the community, in the same circumstances, would have been.

While it may be difficult not to try to help when a neighbour makes a desperate plea to you in the course of a visit to the Management Office or chance meeting in the elevator, the position of the condominium corporation cannot be compromised.

Having worked on thousands of collection files over the years, our preferred protocols for dealing with the holiday season are no different than the protocols in place for the balance of the year:

1. Maintain a consistent procedure.  In this way, no one has any reason to cry foul, accuse the Board of unequal treatment, etcetera; and
    
2. Once a file has been transferred to our office, deflect the (possible) attacks and direct all inquiries to us.

This practice ensures that:

1. There is a single voice on behalf of the condominium corporation in respect of the collection matter;
    
2. The condominium’s position is secured; and
    
3. Assists in re-directing such inquiries and possible conflict away from Board members, property management, etcetera.

We will listen to what the unit owner has to say, explain the process provided by the Act and work with the owner to resolve the matter as expeditiously and cost effectively as possible.

Contact us at liens@elia.org for more information or click here to view our lien instruction deadlines for December.

All of the information contained in this article is of a general nature for informational purposes only, and is not intended to represent the definitive opinion of the firm of Elia Associates on any particular matter. Although every effort is made to ensure that the information contained in this newsletter is accurate and up-to-date, the reader should not act upon it without obtaining appropriate professional advice and assistance.

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