New Condo Act

New Condo Act

The Province of Ontario “activated many new legislative provisions affecting the condo industry" on November 1st, 2017, however there are some aspects of changes not in force as of yet. The Ontario New Condominium Act is overseen by the Ministry of Government and Consumer Services.

Condominium Law Changes

Condominium Act  1998

Bill 106, Protecting Condominium Owners Act, 2015

 

What’s in force

The Province implement changes to the Condominium Act to governed and strengthen transparency and accountability of condo corporations.  The Province has also regulated Condo Management firms and Managers.  Here is an overview of some of the important changes:

The Ministry of Government and Consumer Services posted and released 15 new forms now required to be used under the Condominium Act. These 15 forms will help standardize and facilitate communications between Condo Owners and Boards.  Most of which are mandatory.


Training & New Director Disclosure

All directors elected or appointed after October 31, 2017 will have 6 months to complete mandatory training.


The CAO Condominium Authority of Ontario  is offering free online training modules, to cover a range of topics including director responsibilities and obligations.  The required training takes between 3 to 6 hours to complete.  At this time there are 21 short online modules, they are approximately 10 to 20 minutes each to be completed in any order.   Anyone can take this training whether you are a Director or not however Directors need to log in using their corporation’s account with CAO. Corporations receive their online account once they register with the CAO.  Non-directors wishing to take the courses will be able to do so by creating their own online profile with the CAO.  Access to this training can be done through the CAO’s training page.


Any director (appointed or elected after October 31, 2017) who fails to complete the required training within 6 months will immediately and automatically cease to be a director.


Director Disclosure Obligation

Directors will have to comply with new disclosure obligations to include:

  1. whether they (or a related person) are party to any legal action;
  2. whether they have been convicted of an offence under the Condo act;
  3. whether they have a material interest in a contract or transaction;
  4. whether they are in arrears for more than 60 days

Board meetings by electronic means

Boards may now hold board meetings by teleconference or by another form of electronic communications allowing concurrent communication between directors if all directors have consented to these methods of meetings.  Corporations will not have to have a law permitting these kinds of remote meetings.  Some Corporations do have these allowances on their declarations.

 

Mandatory licensing of managers

 

The Condo Management Regulatory Authority of Ontario (the CMRAO) began on November 1, 2017 with an online portal allowing condo managers to apply for their management licence. They do have until January 29, 2018 to apply for their appropriate Management licence.  It is illegal to provide condo management services without a licence (or without a proof that you have applied for one and are waiting for the CMRAO to treat your application) after January 29, 2018.   Visit the CMRAO licensing page and click on the licence you wish to apply for. Once you are in the licensing portal you will need to create a profile with the CMRAO.


The new Condo Tribunal

The Condo Authority of Ontario (CAO) launched Ontario’s first online tribunal! This new tribunal will help decide and settle condominium related disputes in Ontario.  At this time the tribunal’s jurisdiction is limited to disputes related to the corporation’s records. It is expected to expand in time.  You will require a Tribunal's portal to commence or to respond to a new tribunal case


Information Certificates

Condo Corporations are now obligated to provide owners with regular Information Certificates, containing information about the condominium corporation’s board, finances, insurance, reserve fund, legal proceedings and other matters about the corporation.

These certificates are to be provided to owners twice a year;  First: within 60 days after the end of the first and third quarter of the corporation’s fiscal year.   Such certificates are also to be provided within 30 days of any change to be reported and to every new owner. Corporations must use the prescribed Information certificate issued by the province see Forms

Annual General Meetings - AGM

Note: you must provide advance notices of owners meeting and reduced quorum

For any and all meetings of owners (including AGMs) held on or after December 11, 2017, the Corporation will have to send an advance notice of the meeting, using the form prescribed. This advance notice will advise owners, amongst other things, of the anticipated date of the meeting. It will confirm whether a director will be elected at the meeting and whether an auditor will be appointed. We have already blogged about how to call an AGM under the new Act.

Please ensure to use the prescribed form for the AGM notice

The required quorum to hold an owners’ meeting (including AGMs) remains at 25% but is there is a reduction to 15% if quorum is not met in the first two attempts.

Voting method and new proxies

Votes at owners’ meeting can continue to be held by show of hand, in person or by proxy but can now also be done by telephonic or electronic means if the corporation has a by-law permitting it.  These new electronic voting methods can include telephone calls, fax, email, touch-tone or computer systems.

Any owner using a proxy must now use the prescribed formed.  Corporations and owners can no longer make their own forms.

The new Condo Authority of Ontario

The CAO has been operative since September 1st, 2017. The Authority focusses on consumer protection and healthy condo communities across Ontario.  It provides trusted easy-to-use online information, training, dispute resolution, and other services to help improve condominium living. The CAO website is often the best place to start for anyone wishing to learn more about condo living or wishing to resolve a condo-related matter.

Keep in mind that it is mandatory that all condominium corporations must register with the CAO and they also must pay the CAO Assessment fee before December 31, 2017.

What types of Condominiums apply under the Act

  • Standard Condominiums - (low-rise, high-rise apartment buildings, stacked townhomes and townhomes)
  • Leasehold Condominiums
  • Vacant Land Condominiums
  • Common Element Condominiums
  • Phased Condominiums
  • Almalgamated Condominiums

Other Provincial Acts in the Canada