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Don't Owe the FRO

Posted September 15th, 2008 under pitfalls, smart selling.

In addition to your condominium corporation and the tax man, there is another agency that can lay a claim for unpaid money when you sell your home.

The Ontario Family Responsibility Office (FRO) has the ability to enforce court orders for child or spousal support by issuing a writ of seizure and sale against a payor's property. This means that if you are a spouse who is paying support and you sell your home, any unpaid support can be taken from the proceeds. The FRO will be given priority over other registered and unregistered interests. If there is not enough money to go around, third parties to whom money is owed will lose out, and may sue as a result.

Unfortunately, these liens may appear just before a transaction is about to close. This can delay closing and put stress on the buyer, who will likely be outside the home with a van full of furniture waiting for the key.

Got a question about the FRO and how it can affect you during a sale? Just ask me, I'll be happy to help.


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