Some new condominium buyers move in and forget they have to pay a monthly condo fee. I sit on the board; are we permitted to request 12 post-dated cheques for the year so we don’t have to chase these people down every month? Thanks for your advice!
According to the Condominium Act of Ontario, boards of directors are permitted to pass bylaws to govern the assessment and collection of contributions toward the common expenses. Therefore, if a bylaw confirms that post-dated cheques are mandatory, owners are responsible to provide them. Refusal to do so could result in the board obtaining a court order. The owners will be responsible for the additional costs incurred by the corporation to enforce the bylaw.
Post-dated cheques are very convenient for all parties involved and cannot be cashed prior to their date. There is also the option of setting up automatic monthly withdrawals from the owner’s bank account. This method would also require a bylaw, and each owner would need to provide a void cheque to the corporation. Either method will prevent late payments as well as several trips to the bank for the property manager or a board member.
There is no excuse for any owner to forget that they owe a monthly condo fee. A status certificate is sent to the prospective buyer’s solicitor, including details of when condo fees are due, the amount and to whom the cheques are made payable. The solicitor then relays this information to the buyer at closing.
New purchasers should visit the management office to drop off their condo cheques. (It is also the perfect time to confirm their name is registered in order to receive all the proper notices of condo meetings and other communications.) Paying the monthly maintenance fee should be a priority — the financial operations of your condo corporation depend on it.