- Legal hypothec : Legal hypothec
Definition : Legal hypothec
Security given by operation of law.
There are 4 different types of legal hypothecs:
1. Legal hypothec of the state: For claims of the State for sums due under fiscal laws, as well as certain other claims of the State or of legal persons established in the public interest , specially provided for in specifics acts ;
2. Legal Hypothec of construction: For sums due to persons (architect, engineer, and supplier of material, worker, contractor or subcontractor) having taken part in the construction of a building or the renovation of an immovable;
3. Legal hypothec of the syndicate of co-owners: For the sums due by a co-owner in default of paying to the syndicate of co-owners his share of the common expenses or his contributions to the contingency fund for more than 30 days.
4. Legal hypothec resulting from a judgment: For sums due under a judgment .
The failure to pay general or special common expenses (condo fees), as well as those relating to the contingency fund, is one of the most contentious co-ownership’s issues. It is the duty of the board of directors of the syndicate of co-owners to collect them, unless this task has been delegated to the condo manager.
When a co-owner's contributions have been in arrears for more than three months, the law provides, ex officio, that he automatically loses his right to vote at the general meetings of the co-owners. He is also exposed to legal recourses, so that the syndicate can recover the amounts owing. A review of the options in such cases.
The additional premium is a premium that is added to the existing premium. It results from a worsening of the risk or from the assumption of a new risk. This additional premium may be imposed during the course of a contract or upon its renewal. Risks are analyzed according to scales that are specific to each insurer. Ultimately, the syndicate will pay this additional premium, which will be charged to all of the co-owners through the common expenses (condo fees) or, at times, some of them.