Mortgagee Rights to Condominium Records
A. What is a Mortgagee?
A mortgagee is a lender (e.g., a bank or financial institution) that holds a mortgage on a condominium unit. If an owner defaults on their mortgage, the mortgagee may take legal action, and access to condominium records helps the lender assess financial risks and obligations.
B. What Documents Must Be Provided?
Under the Condominium Property Act, mortgagees may request access to certain condominium records, including:
Financial statements – To assess the financial health of the condominium corporation.
Bylaws – To understand rules affecting ownership and use of the unit.
Reserve fund studies and plans – To determine if the condominium has sufficient financial reserves.
Annual budgets and meeting minutes – To review financial planning and board decisions.
Restrictions and Privacy Considerations
A. When Must a Mortgagee Provide Proof of Interest?
A mortgagee must prove their financial interest in a condominium unit before requesting records. This can typically be done by providing:
A registered mortgage document from the Land Titles Office.
A written statement from the unit owner authorizing the request.
B. Privacy Considerations Under PIPA
Under the Personal Information Protection Act (PIPA), condominium corporations must balance transparency with privacy obligations. While financial and operational records can be shared, mortgagees cannot access personal information about individual unit owners, such as:
🚫 Names or contact details of other owners.
🚫 Correspondence between the board and unit owners.
🚫 Violation notices or complaint records.
If a document contains both unit and personal information, the condominium corporation must redact (remove) personal details before releasing the document.
Document Request Handling Procedures
A. Timeframes for Responding to Requests
The condominium corporation must provide access within 10 days of receiving a written request.
Delays beyond this timeframe could lead to complaints or legal action from the mortgagee.
B. Fees That May Be Charged for Document Access
Condominium corporations may charge a reasonable fee for providing copies of records.
Fees must comply with limits set in the Condominium Property Regulation and must be disclosed to the requesting mortgagee before processing the request.
C. Best Practices for Handling Requests
Verify mortgagee interest – Require proof before releasing documents.
Review privacy obligations – Ensure no personal information is disclosed.
Communicate fees and timelines – Inform the mortgagee about costs and response time.
Provide secure access – Deliver records through secure methods or in-person review.
Case Study: Evaluating a Mortgagee Request Scenario
Scenario:
A mortgagee contacts the condominium corporation and requests access to:
A unit owner’s account balance to verify outstanding condo fees.
A list of all unit owners and their contact details.
The latest reserve fund study for financial assessment.
The condominium manager must determine:
Which records can be provided under the Condominium Property Act.
What privacy restrictions apply under PIPA.
How to respond in compliance with legislation.
Discussion Questions:
Which of the requested documents can be shared with the mortgagee?
How should the condominium corporation handle the request for unit owner contact information?
What steps should be taken before providing the reserve fund study?
