By Ted Lawrence
Better protection for condo owners through improved and more frequent financial reporting and better conflict resolution are coming soon – but they won’t be free. Amendments to the Condominium Act of Ontario come into effect November 1st 2017.
Condominium corporations and property management firms will be required to provide three new kinds of reporting certificates:
- a status report to all new owners called a New Owner Information Certificate (NOIC). This is required even if they have already received a Status Certificate prior to purchase)
- a Periodic Information Certificate (PIC), twice yearly to every owner
- in addition, any substantive change must be reported to each owner via an Information Certificate Update (ICU).
The costs for these additional services will be passed on to owners via their condo fees. They will initially include:
- payments to the Condominium Authority of Ontario (CAO), initially, $1 per condo unit per month
- payments to the new Condominium Authority Tribunal for certain disputes,
- increased management fees due to increased work for condominium managers as well as mandatory licensing fees for condominium managers and management providers. These additional fees will be different for each condominium corporation. Ask your board about these costs that are likely to be in the range of $5-15 per month per unit.
- possible increased legal costs (for review of and/or amendments to the corporation’s governing documents)
- costs for training of condominium board members.
If you are currently a condominium owner and have not been informed of these changes, including the increased costs, speak to your Board of Directors. Note: approximately 20% of Lowertown’s 6895 housing units (2016 census) are condos.
Avoid surprises! If you are contemplating or negotiating a condo purchase be sure that you obtain a Status Certificate that clearly explains the current financial status of the corporation, anticipated future costs, special assessments and how these will be reflected in your initial and future condo fees.
Protecting Condominium Owners Act, 2015 http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=3399
Latest Version of Regulations: https://www.ontario.ca/laws/regulation/010048