Management
Also see: Administrative Authority; Agreements; Condominium Management Services Act, 2015; Condominium Managers; Property Management; Case
Comment - Larlyn v Waterloo North CC 71 et al
Short Answer
Many condominium
corporations are well served by hiring professional and experienced property
managers who have specific expertise in both administrative and physical
management of condominium properties.
Definition
While it is not necessary for condominium corporations to have property managers, and although the Condominium Act, 1998 (the "Act") specifically states that "a board of directors shall manage the affairs of the corporation," (see s.27(1) of the Act) a substantial, nation-wide industry of professional condominium property managers has developed over the years and such managers have usually made a substantial and positive contribution to the well-being of the condominium corporations they serve.
Because of section 27(1) of the Act and the general duties of a board of directors, the property manager does not become the "controlling mind and will" of the corporation but acts under the direction of the board. In the vast majority of cases (and, ideally, in all cases), the rights, obligations and roles of the property manager for a particular condominium corporation are set out in a Management Agreement, including such things as fees, reporting requirements, termination, indemnification and insurance. There is no single, standard form of agreement, and condominium corporations are well advised to seek legal counsel before entering into any agreement.
In Ontario, the Association of Condominium Managers of Ontario (ACMO) provides training and a degree of professional governance for its members. Its "RCM" (registered condominium manager) designation typically denotes that the individual has a significant depth of knowledge and experience in condominium-specific management issues as well in regard to matters generally relevant to property management. Also, its ACMO 2000 designation for property management companies is intended to denote a level of professionalism and skill that is desirable in this industry.
Because of section 27(1) of the Act and the general duties of a board of directors, the property manager does not become the "controlling mind and will" of the corporation but acts under the direction of the board. In the vast majority of cases (and, ideally, in all cases), the rights, obligations and roles of the property manager for a particular condominium corporation are set out in a Management Agreement, including such things as fees, reporting requirements, termination, indemnification and insurance. There is no single, standard form of agreement, and condominium corporations are well advised to seek legal counsel before entering into any agreement.
In Ontario, the Association of Condominium Managers of Ontario (ACMO) provides training and a degree of professional governance for its members. Its "RCM" (registered condominium manager) designation typically denotes that the individual has a significant depth of knowledge and experience in condominium-specific management issues as well in regard to matters generally relevant to property management. Also, its ACMO 2000 designation for property management companies is intended to denote a level of professionalism and skill that is desirable in this industry.
The new Protecting Condominium Owners Act, 2015, also introduced the Condominium Management Services Act, 2015, which will see the establishment of an administrative authority to govern and license condominium property managers in Ontario. Updates of this and other related articles in Condopædia will be made by or before the time this legislation comes into force to reflect the new requirements. Until they are in force, most property managers should consult with ACMO to determine whether and how they can prepare to qualify under the new law, and condominium boards should ensure their property managers are able, willing and prepared to do so.
What you need to know…
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…as a Unit Owner
Where a manager has been hired by the corporation, the manager generally becomes the key-point person for unit owners to advise about maintenance and repair issues. The manager generally also has responsibilities to enforce condominium rules, by-laws and declaration provisions, and to collect common expenses. Owners should be proactive about getting to know who the manager is and how to contact the manager in an emergency. |
…as a Board Member
The board should ensure that the management agreement does not seek to transfer any of the Board’s prescribed decision-making authority to the management company. The manager’s role is to manage the day-to day operation of the condominium corporation, to advise the board, and act on the direction of the board. The presence of a manager does not absolve the board of directors of its decision making authority or responsibility for the corporation. Section 111 of the Act provides that where a management agreement has been entered into by the corporation prior to the Turnover Meeting, the board may by resolution terminate the agreement any time on 60 days’ written notice. |
…as a Manager
A manager of a condominium corporation is expected to be sufficiently familiar with the Act and the declaration, by-laws and rules of the corporation, to assist the board and manage the affairs of the corporation accurately and in compliance with the law. A manager should not assume that any condominium corporation is just the same as another, but should know the specific provisions of each condominium’s rules and such key information as the condominium’s standard unit definition, unit boundaries, maintenance and repair obligations, common expense allocations, and so forth. Managers should assist the board of directors and unit owners by facilitating a positive atmosphere in the community and maintain a profession, proactive and responsible attitude. Managers should also be able to assist the board to find and work with appropriate, competent professionals (lawyers, engineers, accountants, etc.) and other service providers (e.g., landscapers, snow removal companies, mechanics, plumbers, electricians, decorators, etc.) as needed. |
…as a Declarant
Some declarants arrange for professional property management to be put in place immediately upon registration of the condominium. The management contract should be between the manager and the condominium corporation and entered into between the date of registration and the Turnover Meeting, while the declarant’s appointed board still controls the condominium corporation. If this is done, the management agreement must be included as part of the disclosure statement package. Continuation of the management contract cannot be guaranteed, since section 111 of the Act provides that the board may by resolution terminate such an agreement any time on 60 days’ written notice. Prior to marketing the condominium units, some declarants have also found it helpful to have an experienced condominium manager assist them with the preparation of a realistic first-year budget (to be included in the disclosure statement package) that is less likely to result in any shortfall or mislead purchasers as to the real costs of living in the condominium. |