Law360 Canada ( August 14, 2017, 12:27 PM EDT) -- Appeal by York Condominium Corporation No. 385 (YCC) from a decision of an application judge finding that its statutory lien against a unit for unpaid common expenses had expired because it failed to register a lien certificate within the three-month period after default. The owner of the unit had granted the respondent, CIBC Mortgages Inc. (CIBC), a first mortgage on the unit. In February 2011, YCC obtained a compliance order and costs award against the owner. The owner failed to pay the costs order as required by March 2011. In accordance with s. 134(5) of the Condominium Act (Act), YCC added the outstanding costs to the common expenses owed. In September 2011, the owner failed to pay the common expenses as demanded by the appellant. In December 2011, YCC registered a certificate of lien against title to the unit for the common expenses. In 2013, the owners defaulted under their mortgage. The appellant argued that its statutory lien for the claimed common expenses had priority over the first mortgage. The application judge held that the owner defaulted for the purpose of s. 85(2) of the Act in March 2011 when the owner failed to comply with the costs order. This default triggered the three-month perfection period under s. 85(2) of the Act. As the three-month period had expired prior to the appellant’s registration of its lien certificate in December 2011, its lien lost its priority status over the first mortgage....