Condominium Authority Tribunal
Short Answer
A specialized tribunal to be established concurrently with the establishment of the Condominium Authority under the Protecting Condominium Owners Act, 2015, (if enacted) for the purpose of helping to resolve specific types of dispute involving condominium corporations, unit owners, unit mortgagees or purchasers of units.
Definition
Upon a regulation being enacted to establish the Condominium Authority, the Condominium Authority Tribunal is also created. The tribunal members (including a chair and one or more vice-chairs) are to be appointed by the Condominium Authority. The following introductory comments about the Tribunal were set out in Blog Entry #5, "An Array of New Authorities," in the Bill 106 Blog published by Clifton Kok LLP. The full entry, which also discusses the Condominium Authority and other authorities to be created under the proposed legislation, can be read here.
One of the duties of the CA is to appoint the Condominium Authority Tribunal (CAT). The CAT is one of the most important new changes to the Act. The intent is to establish a simpler, less costly and effective mechanism for resolving some of the most basic condominium disputes amongst condominium corporations and unit owners, occupants or mortgagees, without requiring the parties to engage in more formal legal proceedings, where possible.
The fact is, though, that the CAT does not entirely replace those processes. Only a limited range of issues can be dealt with by the CAT. This range is not yet defined, since this is to be set out in the regulations that are being drafted to accompany the changes made by Bill 106. However, we do know that issues relating to ownership/title issues, easements, occupiers liability, sale of common elements, liens, amalgamation or termination of a condominium, are outside of its authority. Further, although the CAT will have broad powers to do such things as issuing orders for compliance and/or that costs, compensation or even penalties be paid by one or more parties, within its arsenal of dispute resolution options is the authority to require that the parties engage in some other form(s) of dispute resolution, such as mediation, conciliation, negotiation or arbitration. Thus, the CAT – while a significant step in a positive direction – is not ultimately going to be a kind of “one-stop shopping” venue through which every issue can or will be resolved.
It should also be noted that unit purchasers may be entitled to apply to the Tribunal for resolution of a dispute with the condominium corporation regarding compliance with section 55(3) of the Condominium Act, 1998 (relating to examination of records of the condominium corporation) but not for any other purposes.
A more complete outline of the Tribunal's powers (to the extent known at this time) is set out in Blog Entry #10 of the Bill 106 Blog, found here.
A more complete outline of the Tribunal's powers (to the extent known at this time) is set out in Blog Entry #10 of the Bill 106 Blog, found here.
What you need to know…
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…as a Unit Owner
Based on the impetus for creation of the Tribunal, it is probable that it will greatly enhance the ability of unit owners to challenge, or to effectively defend against challenges from, their condominium corporations. On its website, the provincial government has offered the following comments that are supportiive of this view: The review of the Condominium Act revealed a frequent power imbalance during disputes between condo boards and owners. It is expected that most ordinary disputes relating to issues of compliance with declarations, by-laws and rules will be able to be heard by the Tribunal.
More detailed comments may be added to this entry as further information about the Condominium Authority Tribunal is disclosed. |
…as a Board Member
It would not be unreasonable to assume that the Tribunal could, in practice, lean favourably toward the protection of individual unit owners as against their corporations or boards of directors. However, it would be unfortunate if this turns out to be the case, since the dichotomy between the corporation and board on the one hand and unit owners on the other is basically false. Yet it is true that there has been an imbalance of power to effect and enforce compliance that, under the current legislation, tilts in favour of corporations as against unit owners. This needs to be changed. The fact is that legislative change is ultimately not the most important tool for creating a difference in this regard. Board members who remember their fundamental obligations to act in good faith and honesty, applying appropriate care, diligence and skill to their work as directors of their corporations, are far less likely to, deliberately or otherwise, take unfair advantage of such potential for imbalance. Board members who act in accordance with such standards will likely not find that the imposition of a Condominium Authority Tribunal changes their circumstances or work, other than (hopefully) to reduce the costs and complexity of dispute resolution. More detailed comments may be added to this entry as further information about the Condominium Authority Tribunal is disclosed. |
…as a Declarant
The Tribunal likely will not directly impact a declarant of a corporation other than during the period following registration of the declaration and description, when the declarant is also an owner and subject to the same rights and obligations as other owners in the condominium. More detailed comments may be added to this entry as further information about the Condominium Authority Tribunal is disclosed. |