May 24, 2016 - Some 10,417 legal hypothecs notices were published in the Land Register in 2015, a decrease of 4% from 2014.
This data come from the JLR firm, which produced a report on this issue. However, despite a decline in legal hypothecs in 2015, those of syndicates of co-ownership increased 26% to 615 last year. They are steadily on the increase in recent years.
This is due to the high level of construction of co-ownerships in Quebec. A co-ownership can be the object of a legal hypothec of construction, which may be published in favor of the persons who participated in the erection or renovation of a co-ownership.
It occurs, almost inevitably, when a subcontractor hired by the builder has not been paid for its services. In such cases, the condo purchaser will be stuck with this cost.
Another possible scenario: co- owners who do not pay their common expenses (condo fees), including the percentage for the contingency fund. Better for them to pay their condo fees in arrears, or they could altogether lose their apartment.
Every co-owner has to pay common expenses, otherwise he shall be reputed as defaulting or in "default of payment ".
Montreal, May 24, 2016
Source: Journal Les Affaires
