Watch our 2024 Annual Meeting and read the FAQs

We held our Annual Meeting on Sept. 26, 2024 and it was a fantastic event! We enjoyed sharing updates of our work with the sector.

Did you miss it? Not to worry, catch up with the recording and FAQs below: 

 

 

 

Frequently Asked Questions from CAO’s Annual Members’ Meeting – Sept. 26, 2024

 

1. What is the CAO’s mandate? Can CAO enforce something in my condo corporation? Can you fine a unit owner or remove a director? Can you force my condo manager to respond to my emails?

The CAO cannot enforce a corporation’s governing documents, fine a unit owner or remove a director.  Our mandate is to support condo corporations through information, education and dispute resolution.

We provide information through best practices, guides, tools, templates, forms and a publicly searchable Ontario condo registry. Those who still have questions can get in touch with us online or by phone directly.

We provide education through mandatory condo board director training. Directors must complete this training within 6 months of their election or appointment.

We provide integrated dispute resolution through guided steps that help condo communities resolve common issues quickly. If that doesn’t work, we provide access to the Condominium Authority Tribunal for certain disputes. The CAT is Ontario’s first online tribunal. The Tribunal can hear issues related to condo nuisances, governing document issues, records and more. Read this page for more information.

The government is currently considering a proposal to expand the CAT’s jurisdiction to include owners’ meetings! We look forward to seeing the results of this process.

 

2.Why have CAO expenses listed in this year’s Annual Report increased compared to the previous year?

The Condominium Authority of Ontario is mandated by the provincial government to provide support and consumer protection to all condo communities through information, education and dispute resolution services.

We take this mandate seriously and have been working hard to provide enhanced and streamlined services every year since our creation in 2017 to support the growing condo sector and the approximately 1.71M people who live in condos.

Increases to the CAO’s expenses correspond with the growth of the Condo Authority’s activities to support the sector through a range of digital services. This past year we made several enhancements to these services, including the returns filing process, the online dispute resolution platform, the director training solution and new compliance initiatives resulting from observations by the Auditor General.

CAO’s delivers its services based on the budget set in the annual business plan and within the funding received from condo fees paid by condo corporations and assessed to owners at a rate of one dollar per voting unit per month.

 

3. What can be done to ensure that electronic voting systems are following the rules?

Condo corporations must ensure that everyone in the meeting can meaningfully participate. Every condo community member in Ontario must abide by the Condo Act and the governing documents of the corporation, including with respect to meetings and voting.

Here are some factors that that condo boards should consider looking for an e-voting system:

• Intuitiveness- owners should be able to navigate the system with ease.
• Confidentiality and Privacy- votes that are cast in advance should be confidential until they are counted at the meeting.
• Accountability- owners need to know how the voting system works and trust in the ability to accurately reflect votes.
• Retaining Required Information- the platform must have the ability to record and retain information as set out under the Condo Act.

Owners who have concerns can request a copy of any recorded vote using the Request for Records form.

Owners can also consider requisitioning an owners’ meeting to discuss the issue in more detail or seek legal advice if the issue is still not resolved.

 

4. What is the CAO doing to increase education to condo managers?

Condo managers are required to take education and be licensed through the Condominium Management Regulatory Authority of Ontario. To find out more about the CMRAO’s licensing and education requirements or to file a complaint you can visit the CMRAO’s website.

 

5. Can the CAO mandate that all condo corporations adopt an anti-harassment guideline in their by-law?

The CAO does not have authority to mandate provisions within a condo corporations by-law.

The CAO has developed an Anti-Harassment Rule to assist condo communities in dealing with situations involving harassment. Corporations should speak to their legal counsel about it and if they see fit, adopt it.

Corporations who adopt it gain many benefits. They define harassment in their community, establish that each resident has a right to freedom from it, allow for clear enforcement procedures and more. They also ensure that they can bring harassment cases to the CAT, as the CAT’s jurisdiction allows for cases about harassment to be filed there only if harassment is governed by the corporation’s governing documents.

Check out the rule sample here.

 

6. If a Condo Board does not have Quorum at their AGM for several meetings, does the existing board roll over for another year?

All condo corporations must have an AGM within six-months of the end of their fiscal year. Those who are not able to get quorum must keep trying until they do.

Current directors whose terms have expired may continue to serve until the election is successfully held.

Corporations must engage with their owners and communicate with them by sending out meeting notices. They must have a yearly AGM and properly carry out condo business, including elections.

 

7. What is the process for boards to share condo corporation financial information with owners according to the Condo Act? What should I be expecting from my condo board in this regard?

Condo corporations must share Periodic Information Certificates that include important financial information twice per year within 60 days of the end of the condo corporation’s first and third quarters.

Additionally, condo corporations must provide owners with an Information Certificate Update within 30 days of important changes between PICs.

New owners must also receive a New Owner Information Certificate within 30 days of the owner providing a written notice stating their name and the unit they now own.

Condo corporations must host an AGM within six months of the end of the fiscal year, where owners are entitled to receive financial updates including audited financial statements.

Lastly, owners can request condo records to get additional information by sending a filled out Request for Records form to their condo corporation.

 

8. The process to remove a misbehaving condo board director can be costly and time consuming for owners. What is being done to make this process easier?

Any condo community who does not want to re-elect their directors must vote for another director during the condo’s AGM or an owners’ meeting.

It is important for owners to attend owners’ meetings and make their voice heard so that the community’s best interests are preserved.

The CAO has developed a new smart form to requisition an owners’ meeting which owners may find helpful if they are seeking to remove a director.

Condo corporations can also consider adopting by-laws governing the disqualification of directors to provide more protections to owners if a director fails to meet any additional requirements. For example, a by-law could stipulate that condo directors should sign a code of ethics attestation each year and if a director violates a condo corporation’s code of ethics, they may be disqualified from being a director.

 

9. How can we find out if any members of our board have taken the CAO course?

Check out our condo calendar tool! You can see this information once you enter your condo corporation’s legal name.

 

10. How can owners and landlords ensure tenants are respecting the governing documents?

Owners must provide a copy of the governing documents to their tenants as soon as they sign a lease. They must also inform the condo corporation of the lease or lease renewal within 10 days. Owners can use this form to provide the condo corporation with the required information.

Owners should attempt to work collaboratively with all other condo community members and can try to address any issues that arise either in person or by writing a letter to their tenant. Owners may also wish to raise the issue of non-compliance with their board of directors.

 

11. Are CAT mediators and adjudicators required to hear cases within a specific timeline?

Tribunal Members assigned to cases in Stage 2 – Mediation and Stage 3 – Tribunal Decision determine the most fair and expeditious process to conducting the mediation or hearing, based on the needs of the parties and the unique features of each case. Members will communicate the process to the parties – and if the parties have any concerns, they can raise them with the Member.

It is important for all parties in a CAT case to actively participate so cases can move forward in a collaborative, constructive and quick way. It is also important that parties and representatives be prepared to participate in these processes and that representatives get timely direction from the party they are representing. The Condominium Authority Tribunal’s Members and staff work with parties to this end. Case durations are ultimately drive by the parties themselves.

See more information about this here.

 

12. How long can a board member continue to serve as a board member?

Terms last for a maximum of 3 years. Board members can serve for longer if they are re-elected to a new term. The Condo Act does not prevent an individual from serving consecutive terms.

A condo corporation’s governing documents may set shorter term limits or a maximum number of terms.

 

13. My condo corporation’s reserve fund is being underfunded and mismanaged. What can I do?

Boards must send owners a copy of the Plan for Future Funding upon completion of the reserve fund study every three years. This notice outlines how the board plans to fund the reserve fund over a 30-year period and if the board’s plan differs from the recommended funding amounts set out in the reserve fund study. Owners also receive reserve fund information via Periodic Information Certificates.

Owners who have concerns after reviewing these documents can raise the issue with their board, requisition an owners’ meeting to discuss the issue or seek legal counsel.

 

14. Is the CAO looking to update the regulations to authorize removing board members’ municipal address from owners lists for security reasons?

This would require a change to the Condo Act, which is at the discretion of the Ministry of Public and Business Service Delivery and Procurement. The Ministry is considering changes to records access to increase condo safety and currently is holding a public consultation which is open until Oct. 27. You can provide your input on this proposal at the link here.

 

15. Are board members required to sign and abide by a code of ethics?

The Condo Act says that board directors must exercise a standard of care. This means that they must act honestly, in good faith, and exercise the care and diligence in carrying out their duties that any prudent person would in those same circumstances.

Condo corporations can take this a step further if they wish, by adopting by-laws requiring that directors to regularly sign and follow a code of ethics. The code of ethics may specify that directors must behave in a certain manner in relation to meetings, confidentiality, conduct and more. For an example of a code of ethics, you can view the CAO’s Guide on Governing Condos.

 

16. Do owners have to follow streetscaping rules in freehold townhome condos even if the purchase contract does not stipulate any landscape duties?

Streetscaping requirements are usually covered by your corporation’s governing documents. The purchase agreement is separate from the condo corporation’s governing documents. Anyone wishing to live in a condo should review the governing documents before they agree to purchase a unit in that community. All owners in any condo community must abide by that community’s governing documents.

There may also be municipal requirements related to streetscaping that you should be aware of and comply with.

 

17. The condo public registry is currently only searchable for one corporation at a time. Is there any thought given to having all corporations listed together in a table format instead?

The Condo Act stipulates that the CAO cannot disclose information from the Condo Registry in bulk. This means that the CAO cannot make a table of every corporation available to the public.

 

18. What can be done to ensure proxy forms are used appropriately and adhere to proxy requirements?

The Condo Act sets out requirements for owners to be able to exercise their right to vote, which includes the right to cast a vote through a proxy, using this form. Additional requirements may be set out in a condo corporation’s by-laws. All owners would need to comply with these requirements.

As a best practice, the CAO recommends that proxy forms should not be pre-populated and that every owner should fill their own proxy form out on their own or allow an agent they authorize to do so.

Owners are entitled to request records relating to any ballots and proxy forms within 90 days of the meeting should they have concerns about voting procedures.

The Ontario government is currently considering a proposal to expand the CAT’s jurisdiction to include owners’ meetings. This may open an avenue for condo communities to ensure compliance with the Act with regards to voting procedures in a more efficient and cost-effective way.  The government is also seeking feedback on proxy forms. You can provide your input on this proposal at the link here.

 

19. What can boards do to manage issues more effectively and ensure transparency?

Boards should always communicate proactively with owners. This reduces confusion and increases collaboration in condo communities. The CAO recently released a guide that provides best practices for how boards can do this.

 

20. Are there any rules surrounding board of directors and conflicts of interest?

Directors have a continuous disclosure obligation throughout the duration of their term. They must clearly disclose in writing any direct or indirect material interest in a proposed or existing contract or transaction where the corporation is a party. If they do, they cannot be present for a matter during a board meeting to discuss, vote, or count towards a quorum on a vote dealing with that issue.

If a director does not fulfil these disclosure obligations, they would immediately cease to be a director.

See page 30 of our Governance Guide for more information on this.

 

21. How can owners stay informed about decisions that are being made by the board of directors?

Owners should pay attention to communications sent by their board, including required notices such as the Periodic Information Certificate and Information Certificate Update.  Owners are also entitled under the Condo Act to request and receive records from their condo corporation, with some exceptions. You can check out this webpage for more information.

Owners can also requisition an owners’ meeting to discuss issues or receive answers if the methods above have not worked.

 

22. I missed the full details about the new director training you’ll soon be offering. Where can I find out more?

The CAO is launching Director Training 2.0 on Nov. 1, 2024. This an important and newly enhanced consumer protection initiative that will continue to support condo communities, strengthen governance and better equip directors in their important role as stewards of the condo corporation and all condo owners’ investments.

The new mandatory training program is based on valuable feedback from the condo sector and merges CAO’s current foundational training with our advanced training. It will feature new modules, expanded practical tips and tools, as well as an helpful self-assessment assessment to ensure all learners gain understand the responsibilities of condo directors and to help them be more prepared for their roles.

All directors must complete the training within six months of being elected, appointed, or re-elected to their board, unless they have completed the training within the preceding 7 years.

The CAO will ensure a seamless transition for all learners who partially complete the current training before November 1st. Your progress will be transferred to the new training program and you’ll be credited for the work you’ve done. No need to start over!

Anyone can continue to take the training for no cost at their own pace.

 

Thank you for all the important questions and attending our 2024 Annual Meeting! See you next year!