Amendments: What’s still to come?

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I am regularly asked about the amendments to the Condominium Act, 1998, and when we can expect the next phase of amendments.  Many estimates suggested that the next round of amendments would be coming in the Spring of 2018. Nothing has been formally announced and this is looking less and less likely as we near June. There are some significant amendments still to come, including:

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Electric Vehicle Charging Systems in Condos

electric carsThere has been a lot of talk about electric vehicles in condominiums lately, despite the fact that electric vehicles still represent less than 1% of passenger vehicles in Ontario. The Ontario government hopes to increase the number of electric vehicles on the roads and has created new legislation to make it easier for  owners and condominiums to install electric vehicle charging systems. The new regulations came into force on May 1, 2018.  Continue reading

Setting Aside An Arbitration Award for Fraud

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I recently read a case about a condo arbitration. A condominium brought an application to set aside an arbitration award because of alleged fraud by the owners. The condominium started the arbitration because it believed the owners had not complied with section 98 of the Condominium Act, 1998. The arbitrator disagreed and awarded the owners $216,643.49 in costs! Continue reading

Condo Act Changes: A Primer for Real Estate Agents & Lawyers

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Those working in the condo industry often complain that real estate agents and lawyers do not adequately advise their clients before they purchase units in condominiums. With the substantial changes recently made to the Condominium Act, 1998 (the “Act”), and more to come in the following months, it is sure to be a complaint we continue to hear for the foreseeable future. Today, I thought that I would provide a few tips for real estate agents and lawyers acting for those looking to purchase a unit in a condominium.  Continue reading

Common Errors with the Amendments: Part 2

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While we all get a handle on the new forms and requirements (and wait for further amendments still to come), I thought I’d do an update on a post I did a few months ago about common mistakes or misconceptions. Here are some of the most common issues we’ve encountered so far:

Myth: The preliminary notice of meeting is only required for annual general meetings.

Truth: The preliminary notice of meeting is required for ALL owners meetings, including annual general meetings, requisition meetings, and special general meetings. The only time it is not required is where the meeting is called solely to fill vacancies on the board where a quorum has been lost.  For more information, see section 12.2(5) of O.Reg. 48/01.

Myth: There is one form for disclosure by candidates and directors.

Truth: There is no prescribed form for disclosures by candidates or directors. That said, many law firms and management companies have created disclosure forms. Be careful when using these forms. The disclosure obligations for candidates and directors are NOT the same so different forms should be used for candidates prior to election and directors after their election or appointment.

Myth: Nothing bad will happen if we don’t file our returns with the CAO or pay our $1/unit/month assessments.

Truth: There are a number of possible consequences for failing to file the returns or pay the assessments:

  • The CAO can levy late fees for not filing returns on time (see section 9.6 of the Act).
  • The Registrar of the CAO can also order a person to comply with the return and assessment requirements (see section 134.1 of the Act).
  • A corporation that has not paid its fees is incapable of maintaining a proceeding before the Tribunal or a court, except with leave of the court (see section 23.1 of the Act).
  • A person who fails to complete returns or pay assessments may be guilty of an offence and liable to a fine of $25,000 for individuals and up to $50,000 for corporations!

Stay tuned for more common misconceptions and myths.

CAO return overdue? File it ASAP!

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Most condo returns were due to be filed by March 31, 2018. Has your condo filed yet? What about any notices of change that you may have been required to file, for instance after a change in directors or managers? Have you confirmed with the person responsible for filing the return that he or she has filed it on behalf of the corporation? A quick reminder never hurt. Continue reading

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