Ontario updates Condo Act, offering support for owners
May 27, 2015
Good news for Ontario condo owners: there's soon to be more protection in place for the approximately 1.3 million residents who live in a condominium in the province. With about 700,000 condo units and 10,000 condo corporations, the Ontario government has proposed the new Protecting Condominium Owners Act in order to improve consumer protection in the condo sector.
About half of all new home construction in the province is condo towers. Due to quickly emerging growth in the condo market, the Ministry of Government and Consumer Services reviewed the current Condominium Act using a collaborative public process, receiving over 2,200 submissions from condo owners, developers, managers and industry experts. Many of the respondents clearly articulated the need for more protection for condo buyers, as well as improvements in how condos are run and managed, and the financial sustainability of the buildings.
As Ontario updates its Condo Act, it is set to create a Condominium Authority, which will provide dispute resolution, consumer protection, financial management, govern how condos are run and set stricter rules about condo manager licensing and training. This range of services is mainly to ensure that condo owners won't have to go to court over a conflict with the condo board or a neighbour, but also to give owners more access to crucial information about their buildings and financial management.
A $1-per-month levy will be paid by condo owners in order to fund the Condominium Authority, as well as fees paid by condo developers. The Authority will be required to publicly disclose information, and be subject to oversight by the Auditor General for the purpose of transparency.
The idea is that the Authority will mainly provide advice for condo owners and mediation services to resolve disputes such as noise complaints or bylaw infractions, but it will also serve as an easier way to get financial documents from the condo board of directors.
The proposed act would also set extra safeguards to protect condo owners and help them make informed decisions about their purchase.
It would require developers to give prospective buyers a copy of an easy-to-read guide to condominium living at the time of sale, and provide clearer, more comprehensive rules to prevent buyers from being surprised by unexpected costs after purchasing a newly built condo.
Not only will condo owners have increased protection against developers, but they will also be protected against fraud and mismanagement on the condo management level, and they will have some input and further clarity on financial matters. The proposed act would further make it easier for condo owners and boards to participate and vote at meetings.
The changes to the Condominium Act will also help buyers avoid unexpected costs relating to surprise hikes in condo fees, be they a result of confusing wording by a condo developer or due to inadequate reserve funds. All of the rules are meant to enforce clear contracts, make it easier for individual owners to feel as if they have a voice on the condo board when it comes to certain issues, and will hold boards accountable for their directors and provide basic training.
About Taylor Stinson
Taylor Stinson is a freelance writer, aspiring photographer and Master of Journalism student at Ryerson University. Her areas of expertise involve anything lifestyle--including food styling and home decor--and she loves to dabble in all things social media. Follow her here.