Question regarding Condo Fees due

[Euro838]

Okay here's the scenario:

I bought a high rise condo unit several years ago. They had set a possession date of say June 1, 2003. The developer did not have titles to the units yet so therefore could not hand over title so mortgages could not be activated. They stated that we had to pay the equivalent of some interest rate (can't remember exactly) each month as rent until title could be handed over. So I didn't get title until 3 months later and then my mortgage kicks in. From there I set up my mortgage, condo fee payments, etc. All this time, I haven't missed any payments and haven't missed til this date.

Anyways, I now get a letter in the mail from some lawyers saying I owe condo fees in arrears and I'm pretty sure it's from the initial 3 month period.

I had talked to another friend of mine who had been through a similar experience and he said the money he paid during the period of possession to title transfer is constituted as rent and should include condo fees.

Anyways, I'm just wondering if other have been through or know of this scenario so I can understand what has happened to others. Thanks.

[4DoorGTZ]

All I can say is I was in a similar situation, moved in July, paid rent until October when I recieved my mortgage and the condo corporation was formed. Developer didnt get the plans registered with land titles in time, so same thing, no titles to hand over so the Developer became the owner until that time. For the life of me I cant remember if they stipulated anything about condo fees included in that rent I paid. But an actual condo corporation cant be registered without the same plans registered at land titles so it would have had to have been the developer acting as a property caretaker for that time.

I'd say you have to dig for that paperwork from x number of years ago, or ask some neighbor friends in the same building that have been there from the begining like you for copies of their paperwork if they can find it.

[dannie]

The whole thing sounds a little fishy to me. My guess is that the board doesn't understand what they are doing. Your first step will be to find out what months the condo fees are for.

If they are from 2003, I would personally have some MAJOR concerns with the treasurer, accountant and auditor. A condo corp should not carry debt for that long. It should show up in your budget paperwork that you receive every year.

Also, rent technically cannot include condo fees. So if you paid $600 in rent and they gave you a breakdown saying that you actually paid $400 and $200 was to cover condo fees; thats illegal.

Another little issue would be that a condo corp cannot charge fees until it is a registered corp.

If it were me, I would start by sending a letter to the lawyer and finding out when the fees were. Once you get that info, I would read the by-laws as well as the condo corporation act at the queens printer and get all the info you can. I would then send a letter in writing to the management company stating that you believe these charges are unfair and quote from the act, why they are unfair.