Condominium Act Reforms Ontario 2012

The Etobicoke Condo Market has exploded with seemingly a crane on each major intersection. Buyers purchase, Banks Finance and people carry on with their lives. Once you buy into the condo, you park your car, use the gym and pool, cross the hallway and lock the door.  You are part owner in an often multi million dollar building and need to understand whats happening to the repair maintenance and upkeep of your home.

The Condominium Act does need to be standardized, each building has different Declarations, Rules and Regulations.  Condo Boards acting in good faith enforce the Rules they have been handed only to be struck down in Superior Court because of legalese or crafty wording.

Condo Boards need to be responsible for their decisions and obedient to the LAW. This is especially painful when Boards waiver to "SAVE" and not start the path of 20% contribution to their Reserve Fund and find themselves short of money in year 8 or 10 for a major repair by permitting lower maintenance fees.

Ontario is taking steps to modernize the Condominium Act, 1998, so it reflects the current and future needs of owners, residents and other stakeholders in the condominium community.
In an effort to respond to a booming and evolving industry, Ontario will launch a public consultation to identify a comprehensive set of issues, and long-term solutions relating to matters such as:

• consumer protection for buyers

• condominium finances and reserve fund management

• condominium board governance

• expertise/accreditation of condominium managers

• dispute resolution, for instance between condo boards and owners

The review will directly engage the entire condominium community, including owners, residents, developers and property managers.  Members of the condominium community will have the opportunity to speak about their issues, hear the concerns of others and work together to develop solutions.  Details of the public engagement process and information about how to participate will be announced this summer.
Strengthening the Condominium Act is part of the McGuinty government's plan to ensure a fair marketplace for Ontario families.

QUICK FACTS

• Over one million people live in condominiums in Ontario.
• There are about 525,000 condominium units in Ontario.
• Toronto had the fastest growing high-rise condo market in North America in 2011.
• About 50% of new home sales in Ontario are condominiums; 60% of homes sold in the GTA.

LEARN MORE

• The Condominium Act, 1998: Ontario's comprehensive review
• A Guide to Condominiums

Should things be left alone?
Should Condo Buildings be Regulated?

Have your say....

Add your comments.

Condo Reform - Extra Cost or Actual Benefit

Toronto's Changing Skyline

The Ontario Government has taken heed to a private members bill to reform the Condominium Act (1998) given that it is somewhat dated and creates a process that does not give owners the right to grieve or challenge decisions made by a Board of Directors.

Condominium Act Review and Public Consultation

 BARBARA HOLMES Heenan Blaikie

The Ontario government recently announced that it would be undertaking a review of the Condominium Act and public consultation with condominium community stakeholders, including owners, residents, developers and property managers. 

A number of issues of concern were identified:

• Consumer protection for condominium buyers
• Condominium finances and reserve fund management
• Condominium board governance
• Accreditation of condominium managers
• Dispute resolution

Since the Condominium Act, 1998 was enacted in 2001, there have only been minor changes to the legislation. In the same time period the number of condominiums being constructed has grown tremendously, with the GTA being the hot-bed of condo development in North America. 

The release of this press announcement seems to indicate that through the efforts of ACMO and CCI, the government is finally proceeding with a serious review of the legislative brief prepared by ACMO and CCI’s legislative committee.  The process of preparing the legislative brief involved representatives from the condominium industry coming together with recommended changes to specific sections of the Condominium Act.  A recent private member’s bill (which has been the focus of a lot of media attention)  proposed some amendments to the Condominium Act. While it was recognized that changes to the current legislation are needed, there were concerns in the condominium community that the private member’s bill was very limited in scope and introduced without consultation and input from all major stakeholders in the condominium industry. With the government’s announcement we expect that the private member’s bill will not be moving forward.
 

The Legislation if enacted will have addition reach for Condominium Owners for dispute resolution and mediation.  Unfortunately this may mean that Condo boards may be forced into lengthy legal proceedings only to hear a grievance that is one sided in favour of the applicant and not in the general interest of all condominium owners as a whole.


There are many provisions within the Condo Act and the Declarations that need clarification and testing on a building by building basis.  These now include interpretation of permitted vehicles, Work Place and Safety Issue as well as Harassment Provisions under Bill 160. The condo building is an employer and has staff on site.


Condo Boards are  not for profit corporations. They have audited Financial Statements and most (larger) buildings have on site experienced Management Companies. All Condo Boards retain legal counsel as a course of running their buildings. As an aside about Reserve Fund Studies and Is there enough money in the fund? Do we need another layer of government to oversee Condo Boards?