Area of Law: Real Estate Law
Answer Number: 415
Condominium laws, regulatory authority, and tribunalRegion: Ontario Answer Number: 415
What main laws govern condominiums?
In Ontario, there are 3 main Acts that govern the establishment and regulation of condominiums:
- Condominium Act,
- Condominium Management Services Act (CMSA), and
- Ontario New Home Warranties Plan Act.
Recent changes and new condominium legislation have established two new administrative authorities and a tribunal:
- Condominium Authority of Ontario (CAO)
- Condominium Management Regulatory Authority of Ontario (CMRAO)
- Condominium Authority Tribunal (CAT)
The Condominium Act regulates the creation, purchasing, living in, and governing of condominiums in Ontario. Recent changes to the Condominium Act increase protection for condo owners and residents, and include:
- a requirement that at least twice a year, condo boards must provide new owners with condo corporation “information certificates”;
- new voting rules including new mandatory proxy forms and new quorum rules for certain meetings;
- preliminary notice requirement for AGMs;
- licensing requirements for condo property managers and property management companies;
- new mandatory disclosures for condo directors and candidates for director positions; and
- new mandatory training for condo directors.
Condominium Authority of Ontario (CAO)
The CAO was established to provide services and resources for condo owners, including:
- online information about condominium living to help owners and residents understand their rights and responsibilities
- mandatory education and training and certificate for condo directors
- an online database of information about condo corporations that can be accessed by the pubic, including information about condo boards of directors and contact information
- an condo guide containing the essential information about the roles and responsibilities of living in a condo. Developers are required to give a copy of the guide to all buyers at the time of sale
- creation of the Condominium Authority Tribunal (CAT)
Condominium Authority Tribunal (CAT)
CAT is an online Tribunal that helps to resolve condominium disputes in Ontario. CAT began operating as of November 1, 2017. Currently, only disputes about the records of a condominium corporation can be filed with the Tribunal. CAT charges an assessment fee to condo corporations to cover the cost of its dispute prevention services (condo buying guide, online self-help tools). The fee is $1 per unit, per month. Condo corporations collect the fee from unit owners as part of their monthly common expenses.
Condominium Management Regulatory Authority of Ontario (CMRAO)
- mandatory licensing and regulation of condo managers and management providers;
- an online Condo Management Database containing information about condo licensees that can be accessed by the public (e.g. licence type and any restrictions); and
- beginning February 1, 2018 a process for the public to initiate complaints against a condo manager or management provider, as well as actions that may be taken by the Registrar, such as suspending or revoking a licence, or requiring more education.
Ontario New Home Warranties Plan Act
Like all newly constructed homes in Ontario, condominiums must be enrolled in the Ontario New Home Warranties Plan. Purchasers’ of newly built condos are covered under specific warranties. The Ontario government, through the Ministry of Government and Consumer Services, has empowered the agency Tarion to administer and enforce the Ontario New Home Warranties Plan Act.
Purchasing a condominium involves many legal and financial documents. It is a good idea to have your lawyer assist you to ensure that you understand all the documents and obligations that apply to the condo and your unit
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