When charging an expense back against a unit, there are a few things that a Corporation must keep in mind:

  1. Once the final cost of the chargeback is known, a demand letter should be sent to the unit owner indicating the amount owing and giving an explicit deadline (usually 30 days) by which the owner must pay the amount.
  2. The Corporation (usually through property management) must monitor the payment deadline.
  3. If payment is not made by the deadline, then the owner is in default and the 90-day deadline to register a lien begins to run. Only at this point should the chargeback be added to the unit ledger.