The Condominium Act, a new review for a new year

By Jacqueline Moneta
February 19, 2019

In Ontario, condominiums, their boards and directors, are allgoverned by the Condominium Act (the “Act”). This Act came into force in 2001 and since then, the landscape in which the Act operates has changed drastically. As a response to this evolution in the market, the province undertook a review of the Act in 2012 in the hopes of better reflecting the current landscape.

PROTECTING CONDOMINIUM OWNERS

The province’s review culminated in the enactment of the Protecting Condominium Owners Act, 2015, (the “PCOA”). This new Act represents a bold departure from the previous one. The amendments were phased in on Nov. 1, 2017 and rolled out over subsequent months.

Now, one year after these amendments took force, we want to examine the impact they’ve had on condominium owners.

THE AMENDMENTS

The PCOA introduced broad amendments across all aspects of condominium ownership. This article will look at the impact on dispute resolution, consumer protection, governance and new obligations on condominium managers and directors.

A. DISPUTE RESOLUTION

The province established the Condominium Authority of Ontario (“CAO”) and the Condominium Authority Tribunal that are now responsible for facilitating dispute resolution. It is the province’s first online tribunal that allows condominium owners the ability to communicate through messages on the online platform, streamlining the process of dispute resolution.

B. CONSUMER PROTECTION

Another protection for owners is the expanded Ontario Home Warranty Plan. Protections that were previously only available to buyers of new condominiums will also now apply to certain condominium conversion projects. Conversions from non-residential to residential uses now qualify for coverage i.e. the conversion of a residential rental building to condominiums is not eligible. Other consumer protection measures enacted include requiring disclosure by developers of circumstances that they know, or ought to know, may lead to an increase in common expenses and require additional information to be included in the Status Certificates.

C. GOVERNANCE

New safeguards have also been enacted to protect new condo buyers so they can make more informed decisions before investing their money in a condo project. One major change is the development of a new condo guide that developers are required to provide buyers at the time of sale. Buyers have 10 days to review the guide before making a decision. The guide outlines facts about the roles and responsibilities of living in a condo, including owner’s rights, care and maintenance of common areas, and how owners can request an information meeting at any time.

D. OBLIGATIONS ON CONDO MANAGERS AND DIRECTORS

Perhaps one of the most dramatic changes to the Act is that condominium managers are now required to be licensed. Previously, Ontario had no minimum requirements for working as a condo manager. Now, managers will need to obtain the necessary license by completing the new training and education requirements.

The amendments also impose new obligations on directors of condominium corporations. Directors elected or appointed after Oct. 31, 2017 have to complete mandatory training provided online by the CAO. Any director who fails to complete the required training will cease to be a director.

These changes have allowed for more flexibility and consumer input in what is a rapidly changing industry. These amendments have given owners the power to better protect themselves and their investments.

Perhaps the most difficult part of writing these articles relates not the actual writing, but thinking of a topic to address. So help us! Mail, deliver or email letters to the magazine or to us via www.schwarzlaw.ca or by email to info@schwarzlaw.ca and give us your questions, concerns, critiques and quandaries. We will try to deal with them in print or electronic form.

Related reading

Pools and condominiums, rules and regulations

Know your rights and responsibilities for condo owners

 

About Jacqueline Moneta

Jacqueline Moneta JD works at Schwarz Law.

Have great ideas? Become a Contributor.

Contact Us

Our Publications

Read all your favourites online without a subscription

Read Now

Sign Up to Our Newsletter

Sign up to receive the smartest advice and latest inspiration from the editors of NextHome

Subscribe