Prior to adding any costs and expenditures to a unit owner's common expenses (i.e. chargebacks, etc.) a condominium corporation should first consider whether recovery is permitted under the corporation's governing documents and/or the Condominium Act. If recovery is permitted, the corporation must advise the owner in writing that the amount has been added to his or her unit's common expenses and the corporation must specify a reasonable deadline for payment of the chargeback. The notice to the owner should specify that if payment is not received by the deadline, it will constitute a default of the owner's obligation to pay common expenses and will give rise to the corporation's lien rights pursuant to the Act. The corporation will have 90 days from the date of default (i.e. the deadline date) to secure its lien by registration.
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