Base31 Association Gets Lien And Fee Powers

Summary#

• This bill creates special rules for the Base31 Community Association in Prince Edward County. It makes every property owner in the Base31 area a mandatory member and gives the Association tools to fund and manage shared services and amenities.

• The Association can set fees, collect them, and place a lien (a legal claim on property for unpaid debt) on Base31 properties if fees are not paid. It must keep reserve funds for major repairs and provide clear “status certificates” to buyers and lenders.

• Key changes:

  • All owners of land within Base31 are members and must follow the Association’s by-laws.
  • The Association can charge annual fees, late interest, and other fees (including entry fees on first sale and resale) as set in its by-laws.
  • Unpaid fees can lead to a registered lien on the property, enforceable like a mortgage.
  • The Association must keep reserve funds for future major repairs and replacements of Base31 assets.
  • Buyers and mortgage lenders can get a status certificate with fee details, voting rights, and other key information; first purchasers must receive one before a sale is binding.
  • Owners can apply to add their lot into, or remove it from, the Base31 designation; the Association decides applications.
  • Municipal by-laws and planning rules always outrank Association by-laws.

What it means for you#

• Property owners in Base31

  • You are automatically a member and must follow the Association’s by-laws.
  • You will pay annual fees and may pay other fees set in the by-laws. Interest and costs can be added if you pay late.
  • If you do not pay, the Association can register a lien on your property and enforce it like a mortgage.
  • Some costs you pay go into reserve funds to cover big repairs and replacements of shared assets later, to avoid sudden large bills.
  • You can ask the court for help if the Association acts in a way that is oppressive or unfair to you.
  • If a tenant or business on your property does not pay what they owe to the Association, you can also be held responsible after notice.

• Renters and businesses on Base31 land

  • You can be granted membership if you lease or operate on Base31 land, and you may owe fees under the by-laws.
  • If you do not pay, the property owner can be made responsible too.

• Homebuyers and mortgage lenders

  • You can request a status certificate within 10 days. It must list the current annual fee, arrears (if any), voting rights, entry fees (on first sale and resale), other fees or how they are calculated, insurance, lawsuits, and recent audited financial statements.
  • For the first sale from the developer, the agreement is not binding on the buyer until the buyer receives the status certificate.
  • If a status certificate leaves out required material information or includes false or misleading material information, you can seek damages in court.

• Developers of Base31 lots

  • Must obtain and deliver a status certificate to first purchasers before the sale is binding.
  • The Association can work with you on shared assets, events, and marketing, and can participate in funding and maintaining infrastructure.

• Prince Edward County (municipality)

  • The Association can act as a liaison with the County about Base31 lands open to the public and Base31 operations.
  • County by-laws and planning rules take priority over Association by-laws.
  • The Association can be tasked, through its by-laws, to help monitor and enforce municipal restrictions that apply to Base31.

• Owners near, but outside, Base31

  • Your property is not affected unless you apply to join and the Association approves. If approved, the Base31 rules and fees would then apply to your lot.

Expenses#

Estimated annual cost: No direct provincial cost; costs fall on Base31 property owners through Association fees.

• Members pay:
  • Annual fees set by the Association’s by-laws; interest and collection costs can apply if late.
  • Contributions to reserve funds for major repairs and replacements.
  • Possible one-time “entry fees” on first sale from the developer and on resale, as set out in the status certificate/by-laws.
• If fees are not paid, the Association’s reasonable collection and legal costs can be added to the lien on the property.
• Municipal or provincial budgets: No publicly available information.

Proponents' View#

• Provides steady, predictable funding to maintain shared roads, spaces, amenities, events, and marketing that benefit the community.
• Prevents “free riders” by making membership and fees mandatory for all owners who benefit from Base31 services.
• Reserve funds reduce the risk of surprise, large repair bills for owners later on.
• Status certificates give buyers and lenders clear, reliable information before purchasing or lending.
• Lien powers are standard for community and condo groups and are needed to ensure fairness and financial stability.
• The Association can coordinate with the County and other governments to meet rules and improve services, while municipal rules still take priority.

Opponents' View#

• Mandatory membership and binding by-laws may feel like a loss of choice for property owners.
• Lien powers, enforceable like a mortgage, could put owners at risk of serious consequences if they fall behind on fees.
• Fees, interest, and possible entry fees could raise the cost of owning or buying in Base31.
• Board members do not have to be members, raising concerns about accountability and whose interests are prioritized.
• Owners have limited direct control over reserve fund spending, which the board can approve without owner consent.
• The Association can set complex classes of membership and voting rights, which may give some owners more say than others.