Hope us get unencumbered.
January 28, 2010 6:27 PM Subscribe
How do liens on property work in Ontario (the Canadian one)?
posted by liquado to law & government (4 answers total)
A group of us are creating an incorporated nonprofit organization to promote (a) art and culture in our area, and (b) paintball. (Yes, it's weird.) One of our founding members owns the property where the activities related to the nonprofit will take place. The org is tentatively planning to purchase the property from the member for $1 -- but, there's a lien against the property by Ontario's Legal Aid society (unpaid legal bills from family court appearances ?? -- we're trying to stay away from that morass of complication as best as we can, and just buy the damn land).
My question is, what limitations do liens place on a property? My assumption is that the lien must be paid off before the property can be sold, but my Google-fu is completely failing me here. Lots of sites are more than willing to help me place a lien on property, but few are willing to explain how to resolve a lien, or what implications it has for purchasing an encumbered piece of property. The property in question is probably not worth a huge amount of $$ -- say, south of $30K, if that figures in at all.
Sorry for the n00bishness of this question; it's embarrassing that I can't find this answer with out MeFi's help.