Tony Bui

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A Toronto condominium is making headlines after levying a $14 million special assessment. The condo’s 321 units were given 15 days to pay between $30,000 to $42,500. Many residents are seniors who see their units as their retirement home but the condo promised it wouldn’t enforce its liens before April…how generous.

The building needs major structural repairs and its finances are shocking to say the least. Last spring, the condo had a $5,000 operating fund and a whopping $1.75 in its reserve fund. The condo reportedly owes “as much as $9 million in debt” with $8 million owed to private lenders and another $1 million owed to the City of Toronto for unpaid utility charges – the condo pays $80,000 a month on interest alone.

This condo’s dysfunction predates the $14 million special assessment – it is one of the few condos that had a court-appointed administrator. Evidently this condo’s problems could not be solved even with an administrator. This is story should serve as a both a warning and a rude awakening for condos across the province: condominium operations are no joke.

Continue Reading $14M Special Assessments or: How I learned to stop worrying and take condo governance seriously

The opening paragraphs to Berman v. York Condominium Corp. No. 99 could not have set up the starting point for an oppression application any better:

The oppression remedy starts by someone having an expectation….But to be actionable at law, a person’s feeling of expectation must also be objectively reasonable. In addition, even if a reasonable expectation is not met, the applicant also needs to show that he has been oppressed, unfairly prejudiced, or unfairly disregarded.

In Berman, the owner complained the condo acted oppressively since it failed to replace his windows when he wanted them replaced. With no evidence that his windows failed or required replacement, the court found he had no reasonable expectation to have his windows replaced earlier than they were. The only reasonable expectation he had was that the board of directors would manage the condominium corporation honestly, in good faith, and with due diligence required by the statutory standard of care in s. 37 (1) of the Condo Act.Continue Reading Oppression in condominiums: “Feeling of expectation” must be objectively reasonable

The Province of Ontario announced that effective September 22, 2021, Ontarians will need to be fully vaccinated (which they define as having two vaccination doses for at least 14 days) and provide proof of vaccination status along with photo ID to access certain public settings and facilities. The Province is implementing a “vaccine passport” initiative…

A Toronto condominium corporation finds itself in the news lately (link to article here) over a hotly-contested election.

Two unsuccessful candidates brought a legal proceeding claiming election interference after they won on an initial count by a slim margin of two votes but lost on a recount. The candidates claim their proxies were disqualified without reason and votes were illegitimately added the ballot box. In the wake of a close election we often see accusations of conspiracy, corruption and impropriety thrown around. In this condo’s case, this has resulted in a nasty legal battle: both sides reportedly incurred at least $200,000 in legal fees so far.

While the truth remains to be seen, the financial and time cost devoted to determining who’s right seems extreme; the issue is clearly important to those involved and it is up to the parties whether to continue the battle.  Whatever the case may be, Tony’s Takeaway is that these problems are avoidable.

Whether meetings are held electronically or in-person, here are a few best practices we suggest to ward off accusations of “stolen elections” or demands to “stop the count”:

Continue Reading Condo elections, dodging “fake news” and voter fraud

The Superior Court of Justice recently raised an interesting question: can a condominium corporation foreclose on a unit to enforce its lien? While the Court didn’t answer the question, raising the question seemingly casts doubt on what a corporation can or can’t do to enforce a lien. Fortunately, we don’t have to wait for another case to get our answer: earlier decisions have made it clear that a condominium lien can be enforced through foreclosure.

Continue Reading “Like a Mortgagee”: no uncertainty with condo liens and foreclosure/power of sale

When condo owners get hit with a lien, things typically go one of two ways: the owner pays the lien and everyone moves on with their life or the owner disputes the lien and a contentious battle ensues. A registered lien secures “reasonable legal costs and reasonable expenses incurred by the corporation to collect the lien” per section 85 of the Condo Act. Corporations often turn to their lawyers in lien battles and recoverable legal costs and expenses begin to mount.   One owner recently learned that lesson the hard way.

Continue Reading Lien challenges: applying pressure doesn’t stop the bleeding

Condo boards and owners should be familiar with the concept of “common elements” and “units”. While there is no “one size fits all” approach to distinguishing the two, in simplified terms, anything that is not part of a “unit” is a “common element”. Diligent boards and owners should review the condo’s Declaration  for inclusions/ exclusions to and from the unit,  maintenance and repair obligations and Schedule “C” to determine unit boundaries; the condo’s registered plan drawings will lay that out in an illustrated form. Understanding these points is critically important.

In Landont Ltd. v. Frontenac Condominium Corp. No. 11, Landont Ltd. used their unit to operate a commercial parking lot. Landont and FCC 11 agreed that the concrete slab below the lot was a common element, but this case turned on whether a waterproofing membrane installed on the upper surface of the concrete slab was part of the common elements. The distinction fundamentally determined which party was responsible for maintaining and repairing the membrane.Continue Reading Unit and common element boundaries: Not always as “concrete” as they seem

Most  condos  now conduct business through electronic meetings, which can be recorded by the host.  Meeting recordings are not a novel concept but our recent dependence on electronic meetings has given them new life.  Minute takers have historically recorded in-person meetings to aid in accurate minutes and to best recall the details of important discussions.  Similarly, an electronic meeting recording can serve the same purpose – ensuring accuracy and transparency in meetings where there is a broad interest to owners but owners can’t attend in the traditional sense.  We are never against something that promotes but also clearly memorializes (hopefully) fair process.

The electronic condo meeting and recording should be for the benefit of the condo and its owners.  To ensure that, we’ve developed  best practices for electronic meeting recordings, which can translate to in-person meetings too.Continue Reading Electronic meeting recordings and best practices