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Papineau Avocats Inc.

The notice of a legal hypothec from a syndicate of co-owners

by Mᵉ Maxime Laflamme, Papineau Avocats Inc.

A co-owner fails to pay his common expenses dues. Reminders, notices, demands, to no avail: the balance remains outstanding. This is a classic scenario in condominium law.

In a case like this, it is common to publish a notice of legal hypothec from the syndicate of co-owners (art. 2724 al. 1(3)) et 2729 C.c.Q.).  Indeed, it is not only a quick and effective way to put some pressure on the defaulting co-owner, but it is also the first step towards the possible sale of his unit to pay for the amounts owed to the syndicate .

In order to proceed rapidly with the publication of such a notice, it is highly recommended that you provide us certain information from the first contact. These are namely:

1- The identity of the applicant union (the name is enough);
For example : « Syndicate of the co-owners of 1, Generic Street »

2- Its fiscal year :
For example : from January 1st to December 31st

3- The identity of the co-owner indefault, along with the identification of his unit;
For example : « John Smith, 1 Generic Street, unit 3, Montreal »

4- The exact amount of the co-owner’s balance of unpaid contributions to the common expenses and the contingency fund;
For example: « unpaid balance of 1000$ since February 1st 2015 »
Attention : it is important to give a timeline of events  (eg, "January 2015", "between March 2014 and June 2015," or to indicate the month that the owner fails to pay)
Attention : if the co-owner has an outstanding balance for more than a unit, it is important to specify the amount for each of them! (For example, X$ for unit 3 and Y$ for unit 4)

5- The balance of other charges and debts (including contributions to the contingency fund) for the current fiscal year for each fraction owned by him;

6- The amount for other charges and debts (including contributions to the contingency fund) for the next two years (excluding the current one) for each fraction of the defaulting co-owner having a balance owing;
When the budget has not yet been determined for this period, it is customary to use the amount of the current year for these two years or increase (indexing) the annual budget according to the consumer price index.

7- The reference number of the co-owner’s lot (or, if a separate number, the reference number of the building)
For example :. lot 1 234 567 of the Land [...] Register of Quebec, Registration Division of Montreal.
Attention : if the owner has an outstanding balance for more than a fraction, it is important to provide us with the lot numbers of each of them (assuming each fraction is individually identified with the cadastral map).
Attention : if the owner has a pivate parking or storage space, etc., it is also important to provide the lot number(s) of these areas if they are numbered.

By providing this information as soon as possible, you will allow us to write your notice of legal hypothec and publish it as soon as possible. The absence of some of this information usually causes delays and additional costs.

Let’s not forget that the application for a notice of legal hypothec of a syndicate of co-owners is only possible from the 30th day after the co-owner has failed to pay his dues for common expenses and the contingency fund.

 

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