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ALEX
NewBee
reply 5
 

Buying a Condo when the Developer owes money (liens?)

Hi All, Is it wise to buy a condo suite in a building where the developer still owes money? I think its called a lien? How does this affect the condo owners? Thanks!
2
Ontario / New Home Q&A
 
 
 
JEREMY SHIFTLER
Buzzer
reply 167 vote 3
 
 
It is not uncommon for a builder to have a lien against them around the end of construction. There are many disagreements that come about during the construction of a building.

If it is a reputable builder, then no issue. But, I would be concerned if it was a smaller builder.

You will not be able to close on your unit until the lien is gone.

I am not a lawyer.    
 
 
ALEX
NewBee
reply 5
 
 
The unit itself doesn't have a lien but the actual builder does. What do you mean it will be hard to close ? Does the bank not give mortgages on liens ? Please explain? Thanks
 
 
 
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