There are three main Acts in force in the Province of Ontario which govern condominium establishment and regulation;
- Ontario new Home Warranties Plan Act;
- Condominium Act;
- Condominium Management Services Act (CMSA);
Furthermore, two new administrative authorities and a tribunal have been established by recent changed and condominium legislation;
- The Tribunal – Condominium Authority Tribunal;
- Administrative Authorities:
- Condominium Management Regulatory Authority of Ontario;
- Condominium Authority of Ontario;
The creation, purchasing, living and governing of Condominiums is primarily regulated by the Condominium Act of Ontario. It is important to note that in relation to the Condominium Act there have been some fairly recent changes and amendments aimed and the increased protection of residents and Condominium owner. Some of these changes are that;
- Condominium Boards must, at least twice annually, provide new Condominium Owners with Condominium Corporation ‘information certificates’;
- There will be a new requirement of mandatory training for Condominium Directors;
- There will be a new requirement of Preliminary notice for AGMs;
- There will be new mandatory disclosures for Condominium Directors and candidates for the Condominium Director position;
- There will be new mandatory proxy forms and new quorum rules for specific meetings, as well as new voting rules;
- There will be new requirements as to the licensing of Condominium Property Managers and Property Management Companies;
Condominium Authority of Ontario (CAO)
In order to provide services and resources for Condominium owners the Condominium Authority of Ontario has recently been established. The services and resources include;
- The availability of information online, geared at helping Condominium owners and/or residents understand their rights and responsibilities to a greater degree;
- Education, training and certification (which is now mandatory under the Condominium Act due to changes) for Condominium Directors;
- A publicly accessible online database for information regarding Condominium Corporations which may be accessed by any member of the public. The database includes information and details of Condominium Boards, the directors and their respective Contact information;
- The establishment of the Condominium Authority Tribunal
- The availability of a condominium guide which lays out essential information regarding the roles, rights, duties and responsibilities of living in a Condominium. It must also ensure that Developers provide a copy of the guide to all purchasers of Condominium Units at the time of sale or purchase.
Condominium Authority Tribunal (CAT)
Since November 1st of 2017 the Province of Ontario has established an online tribunal known as the Condominium Authority Tribunal (CAT). As the name suggests the Condominium Authority Tribunal is primarily aimed at resolving condominium disputes. At the moment the only Condominium disputes able to be filed with the Condominium Authority Tribunal are the those pertaining to the records of Condominium Corporations. An assessment fee is charged by the Condominium Authority Tribunal (CAT) for it dispute prevention services such as the online self-help tools and the Condominium Buying Guides. The assessment fee is $1 CAD for every Condominium Unit per month. Condominium Corporations generally include this as part of the common expenses and collect the fee from Condominium Owners on a Monthly basis.
Condominium Management Regulatory Authority of Ontario (CMRAO)
The Condominium Management Regulatory Authority as of November 1st, 2017 became the administering authority responsible for administering the Condominium Management Services Act. The administering duties include;
- Issuing mandatory licenses and regulation Condominium Managers and Condominium Management Companies or firms;
- Maintaining an online publicly accessible Condominium Management Database which contains information on Condominium Licensees like for instance the licence type and restrictions;
- Setting up a complaints process commencing February 1st, 2018 allowing for the public to initiate complaints against Condominium Managers and/or Condominium Management Firms. Furthermore, setting up a complaints process which allows for the Registrar to take actions of suspending and/or revoking a Condominium Management license.
For more information please contact one of our experienced Real Estate Lawyers at MEHDI AU LLP.
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