Can Your Condo Board Force You to Sell? The Truth About Power of Sale in Ontario

Every month, thousands of Ontario condo owners pay their maintenance fees without a second thought. But what happens when someone can't or won't pay? Can your condo board actually force you to sell your home?

The short answer: Yes, they can. And it happens more often than you might think.

The Growing Problem

Condo living has exploded in Ontario over the past decade. According to the Canada Mortgage and Housing Corporation, there are now over 900,000 condominium units across the province, with the Greater Toronto Area accounting for the majority. With rising interest rates and cost-of-living pressures hitting homeowners hard in 2024 and 2025, condo corporations are seeing an uptick in delinquent maintenance fees.

While exact statistics on power of sale proceedings are difficult to obtain (many settle before reaching court), condominium lawyers report that collection actions have increased significantly since interest rates began climbing in 2022. When maintenance fees go unpaid, it creates a ripple effect. The condo corporation still needs to pay for building operations, repairs, and insurance, meaning other owners may face increased fees or special assessments to cover the shortfall.

How Did We Get Here? A Typical Story

Meet Sarah (not her real name), a condo owner in Mississauga. After losing her job during the pandemic, she fell behind on her maintenance fees. At first, it was just one month. Then two. She kept thinking she'd catch up once she found work, but the debt kept growing. Late fees piled on. Legal fees were added. Before she knew it, she owed over $15,000.

Sarah's story isn't unique. Financial hardship, divorce, job loss, or simply being overleveraged can quickly turn a manageable monthly payment into an insurmountable debt.

The Legal Framework

Under the Condominium Act, 1998, Ontario condo corporations have powerful collection tools that go far beyond what a typical creditor possesses. Maintenance fees (called "common expenses" in legal terms) create a lien against your unit automatically. You don't even need to be sued first.

Here's what makes this lien so potent: it takes priority over almost everything else, including most mortgages registered after the lien arose. This means your condo corporation's claim can jump ahead of your bank's claim in certain circumstances.

If you're unfamiliar with how liens work in real estate, understanding the basics of property liens can help clarify why condo corporations have such powerful collection rights.

The Power of Sale Process: Step by Step

Step 1: The Arrears AccumulateOnce you're in arrears, the clock starts ticking. The condo corporation will typically send demand letters and attempt to work out a payment arrangement.

Step 2: The Lien CertificateAfter a certain period (often 60-90 days), the corporation can register a lien certificate against your unit's title. This is a public record that shows you owe money and can affect your credit and ability to refinance.

Step 3: Legal Action BeginsIf the arrears continue, the corporation's lawyers will send formal legal notices. You'll be required to pay not just the outstanding fees, but also accumulated interest (often at rates of 10-12% annually) and the corporation's legal costs.

Step 4: The Notice of SaleThis is where it gets serious. The condo corporation can issue a Notice of Sale under the Condominium Act. This notice gives you a final opportunity to pay, typically 60 days, before the corporation can proceed with selling your unit.

Step 5: The SaleIf you still haven't paid, the corporation can list and sell your unit, just like a mortgage lender would in a foreclosure. The proceeds go first to the corporation to cover the arrears, interest, and legal costs. Any remaining funds go to other lien holders (like your mortgage lender) and then, if anything is left, to you.

For buyers, this creates opportunities to purchase properties through power of sale, though understanding power of sale purchases requires careful due diligence.

The Real-World Impact

The process typically takes 6-12 months from start to finish, though it can be longer if the owner contests the proceedings. During this time, the stress is enormous. You're facing the loss of your home, damage to your credit, and potential deficiency if the sale doesn't cover all debts.

For the condo corporation, it's not ideal either. Legal proceedings are expensive, time-consuming, and don't guarantee full recovery. Most corporations would prefer to work out payment arrangements.

Your Options If You're Facing Condo Maintenance Fee Arrears

Communicate Early: The worst thing you can do is ignore the problem. Contact your property manager or board immediately if you're struggling. Many corporations will work out payment plans.

Seek Legal Advice: A real estate lawyer can review your situation and potentially negotiate on your behalf or identify defenses. Working with a real estate lawyer can make a significant difference in protecting your rights.

Consider Selling: If you can't catch up on payments, selling your unit yourself (before the corporation does) gives you control over the process and potentially preserves more equity.

Explore Financial Assistance: Government programs, credit counseling, or even borrowing from family might be options worth exploring.

Can You Fight It?

While the Condominium Act gives corporations significant power, you do have rights. Common defenses include:

• The corporation didn't follow proper procedures
• The fees or charges are incorrect or unreasonable
• The lien certificate contains errors
• You've been denied procedural fairness

However, these defenses are technical and require legal expertise. Courts generally uphold properly executed power of sale proceedings.

The Bottom Line

A condo board absolutely can force a power of sale for unpaid maintenance fees in Ontario, and they have stronger legal tools to do so than most creditors. The process is structured, legal, and increasingly common in today's economic climate.

If you're a condo owner, the best protection is prevention: budget for your maintenance fees as carefully as your mortgage, build an emergency fund, and communicate with your corporation if you hit financial turbulence.

And if you're considering buying a condo? Factor in not just the monthly maintenance fees, but the reality that they're not optional. They're a legal obligation backed by the power to take your home. Understanding condo ownership fully before you buy can help you avoid these pitfalls.

This blog post is for informational purposes only and does not constitute legal advice. If you're facing a power of sale proceeding or have questions about your specific situation, consult with a qualified real estate lawyer in Ontario.

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