- The Protecting Condominium Owners Act, 2015 created the Condominium Authority, covering owner education, dispute resolution and a condo registry.
- The Condominium Management Services Act, 2015 requires licensing of condo managers and management providers.
- A corporation's annual budget must be included in any status certificate, and owners are expected to review the budget and financial statements.
- The Condominium Authority Tribunal cannot hear every dispute, so many money and repair issues still go elsewhere.
Ontario's condo reforms come from the Protecting Condominium Owners Act, 2015 and its companion statute. Owners often hear about them in passing and are unsure what actually changed in their day-to-day lives.
This article summarizes what the reforms did for fees, records, managers and disputes. Because condo law keeps changing, confirm the current position with a lawyer before relying on any one summary, including this one.
The two laws behind the reforms
The Protecting Condominium Owners Act, 2015 created the Condominium Authority, which provides owner education, dispute resolution and a condo registry. It also led to the Condominium Management Services Act, 2015, which requires licensing of condo managers and management providers.
| Reform | What it means for owners |
|---|---|
| Condominium Authority | Education, dispute resolution and a registry |
| Condo Authority Tribunal | Decides certain disputes, but cannot hear financial or budget disputes, repair and maintenance disputes, or changes to the common elements |
| Manager licensing | Condo managers and management providers must be licensed |
| Budget and financial review | Owners are expected to review the budget and financial statements |
What it means for your fees
The Authority's fee was estimated at about $1 per unit a month, collected through monthly common expenses. That is an estimate from the time of the reforms, so check your own budget for the current figure.
The basic fee system did not disappear. Condo fees cover maintaining common elements, reserve fund contributions, and services such as cleaning and building maintenance. Your share is generally the annual budget multiplied by the percentage in the declaration. The board can still assess a one-time special assessment for large shortfalls without owner permission.
The declaration sets each unit's proportion of the common expenses, and that percentage may vary with unit size. For example, a $1,000 monthly budget and a 5% share means $50 a month. Changing the proportions needs the consent of 90% of owners, while most other declaration amendments need 80%.
If you are buying, a status certificate shows the unit's common expenses, arrears, increases and special assessments, and the corporation may charge no more than $100 for it. A corporation may be unable to collect an increase or special assessment that was not properly disclosed in the certificate.
Records, managers and accountability
Owners are expected to review the budget and financial statements, which the board must approve before the annual general meeting. How the reforms apply to record-keeping in your building is worth confirming with a lawyer.
Licensing means the person managing your building must meet a standard. What would follow from a specific breach depends on the facts, so it is worth confirming with a lawyer.
- Ask who manages your building and whether they are licensed.
- Ask how and when you can see financial and corporate records.
- Read the budget and financial statements.
Disputes and the Tribunal
The Tribunal's reach is limited. It cannot hear financial or budget disputes, repair and maintenance disputes, or changes to the common elements.
A chargeback can be disputed there only if the underlying issue is already within the Tribunal's jurisdiction, such as parking; chargebacks for repairs and damage go to mediation, arbitration or the Superior Court. If a repair charge leads to a lien, the owner must dispute the lien in court. Its current scope is worth confirming with a lawyer before you file anything.
| Type of issue | Where it generally goes |
|---|---|
| Parking chargeback | Can be disputed at the Tribunal, because the underlying issue is within its jurisdiction |
| Repair or damage chargeback | Mediation, arbitration or the Superior Court |
| Financial or budget dispute | Not heard by the Tribunal |
| Lien after a repair charge | Must be disputed in court |
If an owner does not pay condo fees, the corporation automatically has a lien on the unit that covers the unpaid amount, interest and reasonable legal costs. Owners with arrears are advised to contact the corporation promptly, as a payment plan may be possible.
If you are buying a condo
For a resale, the status certificate package is where you learn about the building's health. It includes the declaration, by-laws and rules, the current year's budget, the latest audited financial statements, the latest reserve fund study and reserve fund status, insurance certificates, and any outstanding judgments or litigation. The corporation must provide it within 10 days of the request.
Buying a new condo from the builder works differently. Buyers have a 10-day cooling-off period in which they may rescind the agreement, which is separate from any status-certificate condition on a resale. Funds received by the builder must generally be held in trust, and deposits and other payments are protected by Tarion up to a maximum of $20,000. The builder's disclosure statement includes a copy of the budget statement for the first year after registration of the condo corporation.
What to do next
- Confirm your building's manager is licensed and know how to request records.
- Read this year's budget and the latest financial statements.
- If you are buying, have a lawyer review the status certificate and check the CAO's Condo Registry.
- Before filing a dispute, work out whether it is financial, repair-related or within the Tribunal's scope.
- Ask a lawyer to confirm the current law, since further amendments may be proposed.
Frequently asked questions
What is the Condominium Authority?
It was created by the Protecting Condominium Owners Act, 2015 and covers owner education, dispute resolution and a condo registry. The CAO advises resale buyers to check its Condo Registry.
Do condo managers need a licence?
The Condominium Management Services Act, 2015 requires licensing of condo managers and management providers. Whether a particular manager is licensed is worth confirming directly.
Where can I see my condo's budget and financial statements?
Owners are expected to review the budget and financial statements, which the board must approve before the annual general meeting. The annual budget must also be included in any status certificate.
Can the Tribunal resolve any condo dispute?
Not every dispute. It cannot hear financial or budget disputes, repair and maintenance disputes, or changes to the common elements. It can hear a chargeback dispute only if the underlying issue is already within its jurisdiction, such as parking. Chargebacks for repairs and damage go to mediation, arbitration or the Superior Court. Where your dispute belongs depends on your situation, so it is worth confirming with a lawyer.
Sources
- Condominium Authority of Ontario – Status Certificates — condoauthorityontario.ca
- Condominium Authority of Ontario – Pre-construction Condos — condoauthorityontario.ca
- Condominium Authority of Ontario – Common Expenses — condoauthorityontario.ca
- Condominium Authority of Ontario – Special Assessments — condoauthorityontario.ca
- Condominium Authority of Ontario – The Declaration — condoauthorityontario.ca
- Condominium Authority of Ontario – The Tribunal's Jurisdiction — condoauthorityontario.ca
- Condominium Authority of Ontario – Liens — condoauthorityontario.ca
- Condominium Authority of Ontario – Chargebacks — condoauthorityontario.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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