Amendments to Condominium Act

Changes to improve the administration and operation of condominiums were introduced in the legislature today by Keith Colwell, Minister of Business and Consumer Services.

"The improvements address a number of gaps in the existing legislation and are designed to give the individual condominium owner added protection and make it easier for condominium corporations to conduct business," said Mr. Colwell. "After a full review, these reforms were recommended and supported by the Condominium Advisory Committee."

Amendments to the Condominium Act include three major reforms:
new condominium board selection criteria; an improved dispute resolution process; and the requirement for reserve fund studies to be undertaken by condominium corporations.

"The changes are a blend of consumer and developer viewpoints, which bring us more in line with other jurisdictions, and in many cases, ahead of those provinces that have come this far," said Patrick Cassidy, vice-president of the Canadian Condominium Institute National Board and a member of the Condominium Advisory Committee.

Under the current act, owners vote for condominium board members based on the percentage vote allocated to them as specified in the corporation's declaration. For example, in some instances the owner of one unit has one vote, while the owner of three units has three votes. Under the new legislation, in the case where the declarant/developer continues to own units, the changes will allow for a more equitable board membership by assigning the maximum representation the declarant may have on the board based on proportion of ownership.

The new dispute resolution process introduces arbitration to resolve disputes between owners, corporations or owners and occupants/tenants, and owners and the corporation. The arbitrators will be selected from a list maintained by the Registry of Condominiums. Currently, arbitration is voluntary and if one side refuses to agree to arbitration, the only alternative is court action.

The amendments will require condominium corporations of 10 units or more to conduct a study to assess the long-term maintenance needs of the facilities, such as the roof and parking lot. The study will also determine the amount of money to be held in reserve to finance these long-term maintenance needs. For corporations with fewer than 10 units, a minimum of 10 per cent of the corporation's annual budget is to be maintained in the reserve fund.

Other proposed changes to the act will make decision-making easier for condominium boards by simplifying voting procedures, and giving the condominium corporation power to borrow money, levy special assessments on owners and buy and sell property.

The proposed recommendations were the result of extensive consultation with unit owners and corporations, lawyers representing the interests of condominium developers, representatives from the Canadian Condominium Institute and responses to the discussion paper released in November 1996 to more than 750 stakeholders.

NOTES: Corporation refers to the entity created by the registration of units in a development as a condominium and is the managing body of the common elements/property/assets owned jointly by the unit owners.

Declarant refers to the owner(s) of the property at the time the corporation is to be registered.

Declaration refers to one of the documents required by Registry of Condominiums for the registration of condominium units.

<b>Text of Condominium Act (amended) (Bill No. 64)</b>