Changes for Condos Take Effect

Condominium owners, boards and corporations now have a quicker way to settle disputes. Cabinet approved new regulations this week requiring mandatory dispute arbitration, which stakeholders say is quicker and cheaper than enduring long, costly court battles.

"Condominium owners and corporations can now get down to business," said Neil LeBlanc, Minister of Business and Consumer Services. "These new regulations allow for much more timely and appropriate actions. No one wants to waste time and money in court disputes if they have an alternative."

A second change gives consumers more protection by making reserve fund studies a requirement. Corporations of 10 units or more must now conduct studies to assess long-term maintenance or replacement of condo facilities, such as roofs and parking lots. Studies will also identify how much money corporations should hold in reserve to pay for such maintenance.

Patrick Cassidy, national president of the Canadian Condominium Institute, and a member of the Condominium Advisory Committee, said he is pleased with the consumer protection mechanism for reserve funds because it will help ensure well-kept facilities.

"This is going to change the way people look at condos from a purchasing point of view and from a marketing point of view." said Mr. Cassidy. "Consumers will have more information to make better-informed decisions. Now, anyone thinking about buying a condo can look at the balance condominium corporations have in the bank, and at their maintenance and repair schedule."

Other changes include requiring more detailed financial statements for owners; allowing condo corporations to amalgamate; and giving condo developers more leeway in how they use condominium land and what they can build on it.

The Condominium Advisory Committee members represented unit owners, property managers, the Canadian Condominium Institute and lawyers, all of who contributed to legislative changes to the Condominium Act passed in December 1998.