Legislation & Regulation

Though most condo management firms carry on honourable businesses that well-serve their clients (often under the direct leadership of their top brass who are personally involved in the operations and take ownership of problems), some firms demonstrate little or no commitment to accountability and transparency, whether in their operations or their ownership structure.  The CMSA throws open the curtains by requiring condo management providers to disclose significant information about themselves, their backers and to put forth a specific individual with whom the buck stops.

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In our last piece, we reviewed the threshold for being granted a license as a condo manager or management services provider.  Let’s now explore whether skirting those requirements is possible.

Can someone manage condominiums without a license?

Not legally. Section 34 of the CMSA prohibits unlicensed practice as a condo manager, as follows:
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Before continuing our exploration of the CMSA, we thank our friends at the Ministry for pointing out that we had misnamed the CMSA in our earlier pieces as Condominium Management Standards Act when the correct name is Condominium Management Services Act.   We have corrected the title and text of the earlier pieces accordingly.

In this fourth part of our review of the CMSA, we review the threshold for being granted a license as a condominium manager or a management services provider.
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Having set the historical context in part 1 and part 2 of this series, we turn to Bill 106 and the scope of the proposed new CMSA.

What Bill 106 brings

Bill 106 (the Protecting Condominium Owners Act, 2015) was introduced in the Ontario legislature on May 27, 2015.  Schedule 2 of Bill 106 contains the proposed Condominium Management Services Standards Act, 2015 (let’s call it “CMSA”) which will be a completely separate statute from the Condominium Act, 1998.

For clarity, keep in mind that Schedule 1 of Bill 106 contains a myriad of amendments to the existing Condominium Act, 1998.  Because the existing Condo Act will retain its current name, it is technically incorrect to say that we are getting a “new Condo Act.”  Our existing Condo Act is merely getting a whole bunch of minor changes, and we will tackle some of those changes in subsequent pieces.

For now, let’s focus on the CMSA in more detail, beginning with what it covers.
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In this second instalment of our close examination of the proposed new Condominium Management Standards Services Act, 2015, we look at the steps taken by the condo managers themselves to improve standards, forming the genesis of a true self-regulated profession and paving the way for Bill 106 to take root.

Early steps to raise the bar

While condo owners and directors have called for improved standards during the Ontario government’s Condo Act review process since 2012, the loudest and longest call for educated, licensed and regulated condo managers has come from the condo managers themselves.  Their association has been leading by example.
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Condo manager licensing and regulation is the focus of our first in-depth examination of the changes proposed in Bill 106 (Protecting Condominium Owners Act, 2015). This is a natural choice considering that manager licensing and regulation constitutes the largest change in our condominium law since 1967, in terms of how condominiums in Ontario are operated, the credentials of the people who operate them and the protections afforded to unit owners.

Of all of the proposed changes set out in Bill 106, none are nearly as profound or as desperately-needed as establishing mandatory qualifications, licensing and regulation for condo managers.

This post kicks off the first of a multi-part series.  We start with the current state of affairs in condominium management and why the time has come for substantial change.


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The Province of Ontario has rolled out proposed new legislation to reform the existing Condominium Act, 1998 and establish mandatory licensing and regulation of condo managers.

Following a careful review and elaborate public consultation process from 2012 to 2014, the Protecting Condominium Owners Act, 2015 was introduced in the legislature on May 27, 2015 as

Though the weather suggests otherwise, spring has finally sprung in Ontario. As many condo corporations begin their seasonal cleaning and maintenance routines, our courts are likewise gearing up for significant housekeeping.

Recent changes to the Rules of Civil Procedure will automatically sweep away pending lawsuits brought in the Ontario Superior Court that are not moved forward in a timely way. Condominium corporations, their directors and managers should take note.
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Until now, mortgagees could commence their enforcement lawsuits anywhere in Ontario they pleased, regardless of where the mortgaged property is located. That option is now gone.

On March 31, 2015, rule 13.1.01 of the Rules of Civil Procedure is amended by adding the following new subrule (3):

Mortgage Claims
(3) In the case of an originating process, whether it is brought under Rule 64 (Mortgage Actions) or otherwise, that contains a claim relating to a mortgage, including a claim for payment of a mortgage debt or for possession of a mortgaged property, the proceeding shall be commenced in the county that the regional senior judge of a region in which the property is located, in whole or in part, designates within that region for such claims.

Stated more simply, mortgage enforcement actions must now be brought at one of the court locations in the judicial region where the property is located that is designated by the local regional senior judge.
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It is not a lawyer’s usual role to alert the public about possible crimes being perpetrated by suspected criminals at large, but we feel compelled to do so when police and government fail to take action and leave condominium corporations vulnerable to a rogue.

Boards of small condominium corporations in Halton Region should check whether they have been victimized by potential rogue condo management firm operating in Burlington and surrounding area.

No police charges have been laid and no convictions have been entered, so we cannot name suspects without fear of defamation lawsuits, but we offer this warning as a public service to help condo boards protect themselves against fraud and to take effective steps to recover losses if they have been victimized.


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