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A guide to changes to the Condominium Act: Reasonable Doubt

The Condominium Act, which governs condominium corporations as well as their unit owners and residents in Ontario, has been in place since 2001. Since then, the number of condominiums has increased tremendously, and the challenges facing condominiums have only gotten more complex.

Thankfully, a process that the legislature started several years ago to modernize the Act and address some of these challenges is starting to bear fruit. One significant change is the establishment of the Condominium Authority of Ontario (the CAO) and the Condominium Authority Tribunal (the CAT), an adjudicative tribunal that will be operated by the CAO.

As is set out on its website, CAO’s mandate is to provide information and services to condominium corporations and unit owners. To this end, CAO will collect and make available information about individual condominium corporations, which corporations are required to provide to CAO, and will serve as a source of general information about condominium corporations’ and owners’ respective rights and responsibilities. CAO is also involved in the delivery of training for condominium directors to help educate them on their obligations and responsibilities as they participate in the management of their condominium corporations.

Even more significant (from a litigator’s perspective) is the establishment of CAT. Currently, condominium-related disputes are typically resolved either through the courts or private mediation and arbitration. Both processes are costly and time-consuming, and the lack of a quick, affordable dispute-resolution mechanism for relatively minor issues has long been a concern for many people involved with condominiums. It is hoped that CAT will provide this quick, affordable dispute-resolution mechanism for certain types of disputes. (This will also serve to reduce the burden on the already overstrained court system.)

While details of CAT have not all been publicly announced, it is anticipated that CAT will function as an administrative tribunal with a limited right of appeal to the courts, similar to the Landlord and Tenant Board. CAT would not hear all condominium disputes rather, certain types of disputes will be identified as being within CAT’s jurisdiction. These types of disputes are being identified and announced in phases.

The first type of dispute that will be referred to CAT starting on November 1, which is when CAT will start operating, will be disputes regarding records. This is a significant and welcome change. Currently, a unit owner that requests records from a condominium corporation, only to have the corporation refuse the request without reasonable excuse, is forced to bring forward a claim in the Small Claims Court to obtain the records. This requires the owner to potentially wait a year or more for the claim to be adjudicated and resolved, during which time the owner may incur significant legal costs. Through CAT, it is possible that the owner’s dispute regarding records could be resolved in a matter of days or weeks, instead of months, at a much lower cost.

CAT will not hear all condominium-related disputes. Certain issues, like occupier’s liability claims, enforcement of liens, and issues relating to safety and property damage, will continue to be dealt with by the courts. As well, there are many other classes of dispute for which the legislature has not yet signalled whether same will be dealt with by CAT. Among other things, it remains to be seen whether certain types of disputes that are presently dealt with through private mediation and arbitration (e.g., disputes about an individual corporation’s rules regarding issues like pets or parking) will continue to be dealt with in that manner, or whether these disputes will fall under the umbrella of CAT once it has been fully implemented.

Based on the available information, the establishment of CAO and CAT is undoubtedly a positive thing for condominium corporations and unit owners. Easier access to information and training, and to cost-effective and timely dispute resolution, will benefit all concerned. While there may be some growing pains for all involved as these new entities take their place in the condominium ecosystem, once everything has settled that ecosystem should be a better place than it was before these changes.

Timothy Duggan is a condominium lawyer and civil litigator with Horlick Levitt Di Lella LLP. Reasonable Doubt appears on Mondays. You can contact him on Twitter at @timmyd_ and tell him what you would like to read about in future columns.

A word of caution: You should not act or rely on the information provided in this column. It is not legal advice. To ensure your interests are protected, retain or formally seek advice from a lawyer. The views expressed in this article do not necessarily reflect those of Horlick Levitt Di Lella LLP or the lawyers of Horlick Levitt Di Lella LLP.

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