Publication date: 23/09/2019
September 23, 2019 — Construction legal hypothec notices increased by 9% in 2018. This increase is mainly due to strong activity in the construction sector. According to CMHC data, there were 10% more residential properties under construction in 2018 than in 2017, and 33% more than in 2016.
L’article 2726 of the Civil Code of Quebec provides that a legal construction hypothec is acquired “in favor of persons who have participated in the construction or renovation of a building”. This right is granted to contractors, sub-contractors (eg plumber, electrician and plasterer), suppliers of materials, workers, engineers and architects, because of the added value given to the building.
come in justice
Those who would have to settle the bill would be the buyers, in this case co-owners, who would share the bill according to the relative value of their fraction, or by virtue of other calculations which could be envisaged. After having paid their share of a legal construction hypothec, these co-owners could then have it written off from their fraction. Remember that ultimately, the targeted building could be sold in court, in the event that the amounts of money claimed are not paid.
Moreover, even if condominiums increase in number each year in Quebec, in 2018, the share of legal hypothecs published by syndicates of co-owners fell by 24%, to reach 518 publications. This decrease seems attributable to the improvement in the financial situation of co-owners.
Unpaid condo fees
This type of mortgage can be published on the unit of a co-owner, if the latter has not paid his condo fees for more than 30 days. But before getting there, other means are available to a union to get paid, for example sending a formal notice. If this approach does not bear fruit, a union may also apply to the Court of Québec – Small Claims Division.
Like a legal construction hypothec, the ultimate approach to recovering the sums due would consist in taking advantage of a notice of exercise of the hypothecary right, which would allow the sale under judicial supervision of the targeted condo, or the taking in payment of the private portion of its co-owner.
Montreal, September 23, 2019
Source : Business Journal et Francois G. Cellier pour Condolegal.com
2023-07-03 01:13:50
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