Most people know that when they purchase a condominium, they will have to comply with different types of fees such as common charges and contributions to the provident fund, commonly referred to as condo fees. The people called upon to manage these costs are the leaders or administrators of the syndicate of co-owners. If there is default in payment, what recourse do syndicates of co-ownership have against one of their co-owners? One of the means for such a syndicate is to obtain the amount due through a legal hypothec on the co-ownership in default. A new 100% online platform for Legal Mortgages is brought to you by Hypotek. If you are an officer or director of a syndicate of co-ownerships and you find yourself in such a situation, here is what you need to know about it.
What is the legal hypothec of the syndicate of co-ownership?
The legal hypothec of the syndicate of co-ownership allows the officers or administrators of a syndicate of co-ownership to use the unit of a co-owner as security for the payment of condo fees or other fees when the payment period exceeds 30 days. This legal hypothec also guarantees that the condo fees will not be attributable to the syndicate in the event of non-payment. The legal hypothec of the syndicate of co-ownership covers the amounts payable on the day of its registration, as well as the debts of the current financial year and those of the following two years.
How to register a legal hypothec of syndicate of co-owners?
When a co-owner fails to pay his common charges for more than 30 days, the syndicate may register a legal hypothec on the co-ownership of the defaulting co-owner. To do this, it is important to follow these steps:
- Sending of a formal notice as well as a notice concerning the registration at the Registry Office of a legal hypothec;
- Sending a notice of hypothecary recourse;
- And finally, the forced abandonment of the co-owner.
Register a legal mortgage with the service of Hypotek
Traditionally, syndicates of co-ownership had to turn to a lawyer or notary to draft and register a legal hypothec. This was time consuming, often during office hours, and could be an expensive process as lawyers and notaries charge an hourly rate.
However, there has recently been a brand new entirely online service in Quebec. Indeed, it is possible to write and register a legal mortgage with the Hypotek platform. Thus, and even without any legal knowledge, you can draft a legal mortgage yourself and take advantage of the many advantages of this new way of doing things. One of the greatest benefits of this platform is that you will not only be able to save time by not having to travel, but also you will be able to save money by only being charged per act and not according to an hourly rate. Your file will then be evaluated by the Hypotek software as well as by its legal team who will take care of registering your legal mortgage. Additionally, as a Hypotek user, you will be entitled to free legal advice from an attorney.
