LEADERS’ CIRCLE GRAND RIVER CHAPTER
Licensing of Property Managers Michelle Kelly, B.Comm., LL.B., ACCI Sutherland Kelly LLP
3 Protecting Cond om inium Ow ners Act, 20 15 ( Bill 10 6) • Two main parts: 1) Amendments to Condom inium Act, 1998 and other statutes 2) Creation of the Condom inium Managem ent Services Act, 2015 • Received Royal Assent on December 3, 2015. • Not yet proclaimed into force. • Regulations – drafts released for comment.
4 Cond om inium Ma na gem ent Serv ices Act, 20 15 • Who? Individuals and companies providing condo management services. • What? Licence will be mandatory. • When? As early as July 1, 2017. • Where? Ontario. • Why? High profile cases of managers stealing millions of dollars from condos.
5 Ind iv id ua ls Types of Licences 1. Limited Licence 2. General Licence 3. Transitional General Licence
6 Ind iv id ua ls – Lim ited Licence - Entry level managers - Application, fee, and police check - Deemed limited licence – less than 2 years’ experience. - Conditions - Must have a supervising licensee - Cannot enter into agreements, spend more than $500, or give anything to owners without approval of the supervisor. - Cannot sign status certificates. - Cannot use reserve fund.
7 Ind iv id ua ls – Genera l Licence - Senior managers - Application and fee - Police check - Deemed general licence – successfully completed RCM exams or courses by ACMO. - Conditions - Cannot work for more than one provider, unless all providers consent.
8 Ind iv id ua ls – Tra nsitiona l Genera l Licence - Intermediate managers - Application and fee - Police check - Deemed transitional general licence – more than 2 years’ experience and already working as manager. - Limit – 3 years to get general licence - Conditions - Cannot work for more than one provider, unless all providers consent.
9 Ind iv id ua ls Exemptions from Licence Requirement 1. Certain professionals 2. Director of condo if self-managed, unless receive compensation or reward for providing management services. 3. Manager employed by licensed provider or condo to collect fees. 4. Contractors providing only construction or repair/ maintenance services.
10 Ma na gem ent Com p a nies - Company will need a licence too. - Deemed licence if already providing condo management services. - Requirements: - Application & fee - Designated a principal condo manager.
11 W ha t d oes regula tion m ea n for the ind ustry ? - Supervision & oversight. - Investigative pow ers. - Disciplinary process. - Com plaints process. - Higher m anagem ent fees.
The “New” Condominium Act Mark Willis-O’Connor McCarter Grespan Beynon Weir PC
13 AGENDA 1. Condominium Authority of Ontario 7. Status Certificates 2. Condominium Tribunal 8. Performance Audit 3. Condominium Registrar 9. Reserve Fund Studies 4. Agreements 10. More Notice Requirements 5. Owners’Meetings 11. Insurance Deductible 6. Records
Condominium Authority of Ontario (“CAO”) • The proposed condominium authority under the Condominium Act • CAO still must be designated as the condominium authority by the government and enter into an administrative agreement • Expected to happen by late 2017
• Not-for-profit corporation governed by a board of directors that reports to the Ontario Ministry of Government and Consumer Services • Funded through fees charged to condominium corporations and users of its services • Responsible for carrying out the “delegated provisions” to be set out in regulations
• CAO expected to provide: • Information, tools, and resources about condominium buying, ownership, and living (e.g. condominium guides) • Education for condominium directors • Self-help tools for condominium community members to resolve issues and disputes on their own • A registry of all Ontario condominium corporations and board members • Oversight of the Condominium Authority Tribunal
Condominium Authority Tribunal • CAO will appoint a chair, vice-chair, and members of the Tribunal • Exclusive jurisdiction to resolve certain condominium disputes that will be specified in regulations • Will not deal with certain disputes (e.g. easements, occupier’s liability, liens, amalgamations, termination of condominium corporation, title to real property) • Appeals may be made to the Divisional Court on questions of law
• Disputes may only involve condominium corporations, owners, occupiers, mortgagees, purchasers, and any party added by the Tribunal • Corporation may apply to resolve a dispute with an owner, occupier, or mortgagee • Owner or mortgagee may apply to resolve a dispute with the corporation or an owner, occupier, or mortgagee • Purchaser may apply to resolve a dispute with the corporation regarding records (pursuant to ss. 55(3) of Condominium Act)
• Tribunal has jurisdiction to order: • Compliance • Prohibit or require a particular action • Damages up to $25,000 or an amount prescribed by regulations • Costs • Penalties for failing to produce records under ss. 55(3) of the Condominium Act • Whatever other relief the Tribunal considers fair in the circumstances, except it cannot order a person to vacate a property permanently
Condominium Registrar • Appointed by CAO (if authorized) or the Minister • Every corporation responsible for filing with the Registrar: • An initial return • A turn-over return • An annual return • Other returns as prescribed in the regulations • The required form and information for returns to be set out in regulations
• Every corporation shall also file a notice of change for every change in the directors elected or appointed to the board • Registrar will maintain a public database containing the information in every return and notice it receives
Agreements • Condominium management services agreements must be with a provider or manager licensed under the Condom inium Managem ent Services Act, 2015 • Shared facilities agreements required where applicable in accordance with regulations and to be registered on title • Positive covenants to also run with land
Owners’ Meetings • Prescribed meeting notices and materials: • Preliminary Notice of Meeting of Owners • Notice of Meeting of Owners • Requisition for Meeting of Owners • Instrument Appointing a Proxy • Quorum reduced from 25% to 15% for third or subsequent attempts to hold meeting where quorum not achieved in first two attempts • By-laws may permit voting by telephonic or electronic means
Records • Regulations specify records to be kept and periods of retention • Regulations set out requirements and timeframes for making and responding to requests for records • Tribunal shall deal with records disputes; regulations to set out monetary penalty for non-compliance
Status Certificates • Status Certificates must now contain: • The financial implications of outstanding judgments and legal actions to which the corporation is a party • A statement of proposed substantial modifications and their purpose
Performance Audit • The scope of a performance audit shall include (unless the regulations provide otherwise), in addition to the common elements, any real property owner by the corporation • Must be conducted before the first anniversary of registration of the declaration and description (or such other time that the regulations prescribe) – no longer required to be conducted within the six and ten month time period following registration
Reserve Fund Studies • Regulations will set out: • Definitions of “major repair” and “reserve fund study provider” • Additional reserve fund purposes • What are “adequate” amounts of money in the reserve fund and reserve fund contributions • When and how the corporation must obtain an outside opinion if the reserve fund falls below the prescribed amount
More Notice Requirements • Annual budget must be prepared in accordance with regulations and a notice to owners must be delivered • Prescribed addition to a unit’s common expenses requires a notice to owner within 15 days – owner may apply for dispute resolution • Modifications to the common elements – amendments to when modifications may be made without notice – e.g. clause 97(5)(c)
Insurance Deductible • Owner responsible where damage to unit, common elements, or corporation’s assets was caused by act or omission of the owner (or his/ her/ its lessee, permitted occupant, or other prescribed person), except where damage was caused by corporation (or its directors, officers, agents, or employees) • Declaration may alter the circumstances under which the deductible may be charged back to an owner’s unit • Where the above exceptions don’t apply, the deductible shall be a common expense
The Regs –A Work in Progress* *that could be changing as we speak Michael Clifton Clifton Kok LLP Legal Counsel
31 69 49 38
32 Communications. Qualifications. Meetings. Records. Miscellany.
33 Communications. Information Updates • Periodic Information Certificates • Information Certificate Updates • New Owner Information Certificates …at least once every three m onths or at such other tim e periods as are prescribed…in accordance w ith the regulations
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