Frequently Asked Questions

What is a Condominium Corporation

In Ontario, a Condominium Corporation is a legal entity established when a condominium development is registered under the Condominium Act, 1998. It is responsible for the management, administration, and maintenance of the condominium property and common elements on behalf of all unit owners.

Key Features of a Condominium Corporation in Ontario:

1. Formation:

A condominium corporation is created when a developer registers a declaration and description (including plans and specifications) with the local land registry office. This process legally establishes the condominium.

2. Ownership Structure:

Unit owners collectively own the condominium corporation. Each owner holds title to their individual unit and a shared interest in the common elements, such as lobbies, hallways, elevators, and recreational facilities.

3. Responsibilities:

The condominium corporation is tasked with managing and maintaining common elements and shared facilities. This includes ensuring that the property complies with the Condominium Act, managing the budget, and maintaining insurance for the common areas.

4. Governance:

The corporation is governed by a Board of Directors elected by the unit owners. The board makes decisions on behalf of the corporation, hires property management services, and oversees financial and operational matters.

5. Financial Management:

Unit owners contribute to the corporation through monthly maintenance fees, which fund operating expenses, repairs, and contributions to the Reserve Fund for major future repairs and replacements.

The corporation prepares an annual budget, financial statements, and ensures compliance with audits and reporting requirements under the Condominium Act.

6. Legal Framework:

The rights and responsibilities of the corporation and unit owners are detailed in the Condominium Act, 1998, the condominium’s declaration, bylaws, and rules.

A condominium corporation essentially acts as a cooperative body that ensures the proper functioning and long-term sustainability of the community, balancing the interests of all owners.

What are Common Element Fees

Common Element Fees, often referred to as maintenance fees, are mandatory payments made by all unit owners in a condominium corporation. These fees cover the costs of operating, maintaining, and managing the condominium’s common elements and shared facilities. Common Element Fees are calculated based on the percentage found in Schedule D of the as outlined in the condominium’s declaration.

What Do Condominium Fees Cover?

The specific services and costs covered by condominium fees vary depending on the community, but they generally include the following:

1. Maintenance of Common Elements

Upkeep and repairs of common areas like lobbies, hallways, elevators, stairwells, recreational facilities, parking lots, and landscaping.

Snow removal, lawn care, and cleaning of common areas.

2.Utilities

Costs for utilities serving common areas, such as electricity, water, heating, or cooling.

Some condominiums include unit-specific utilities (e.g., water or gas) in the fees, while others bill these separately.

3. Building Insurance

Master insurance policy for the building, which covers common areas, structural components, and liability for shared spaces.

Note: This does not include insurance for the contents or interior of individual units, which owners must insure separately.

4. Reserve Fund Contributions

A portion of fees is allocated to the Reserve Fund, a special account required by the Condominium Act to cover major repairs and replacements of significant components, such as roofing, HVAC systems, windows, and parking structures.

The fund ensures the corporation has sufficient funds for future needs without requiring unexpected special assessments.

5. Management and Administration

Costs associated with hiring a property management company to handle day-to-day operations.

Administrative expenses, such as legal fees, consulting and meeting expenses.

6. Amenities and Facilities

Operation and maintenance of shared amenities, such as swimming pools, gyms, party rooms, and concierge services.

Security services or systems, including cameras and access controls.

What Common Element Fees Do Not Cover

Repairs and maintenance within the unit (e.g., appliances, flooring, or plumbing).

Unit-specific utility bills if not included in the fees.

Personal insurance for unit contents or interior improvements.

What are the rules for living in a Condominium

In Ontario, rules for living in a condominium are governed by the Condominium Act, 1998 and the specific governing documents of each condominium corporation. These documents establish expectations for unit owners, tenants, and visitors to ensure harmonious living, protect property values, and maintain the safety and functionality of the property.

Key Documents that Outline Condominium Living Rules

Declaration

Sets out the division of ownership between individual units and common elements.

Specifies the permitted uses of units (e.g., residential or commercial).

May include restrictions, such as prohibiting short-term rentals or limiting modifications to units.

Bylaws

Govern the internal management of the corporation, including procedures for electing the Board of Directors, setting budgets, and enforcing rules.

Rules

Focus on the day-to-day use of units and common elements to promote safety, security, and enjoyment for all residents.

Easier to amend than the declaration or bylaws.

Typical Rules for Condominium Living in Ontario

1. Use of Units

Units must generally be used for their designated purpose (e.g., residential use for residential units).

Noise levels must be reasonable and not disturb other residents.

Restrictions may exist on short-term rentals, subletting, or operating businesses from residential units.

2. Common Elements

Residents must not damage or obstruct common areas like hallways, lobbies, and recreational facilities.

Personal items (e.g., bicycles, furniture) are usually not allowed to be stored in common areas.

Use of amenities (e.g., gyms, pools) may require booking or adherence to specific time slots.

3. Alterations and Renovations

Owners are typically prohibited from making structural changes to their unit or common elements without board approval.

4. Pets

Some condominiums have restrictions on the type, size, or number of pets allowed.

Rules often address noise, cleanliness, and responsible behavior for pet owners.

5. Parking and Storage

Parking spaces are for vehicles only and must not be used for storage or other purposes.

Visitor parking is typically restricted to short-term use with rules for registration and duration.

6.Waste Disposal

Proper use of garbage and recycling facilities is required, including separating recyclables and disposing of large items according to guidelines.

7. Tenant and Guest Conduct

Owners are responsible for ensuring that tenants and guests comply with the condominium's rules.

Guests may have limited access to amenities, and their behavior must not disrupt other residents.

8.Fees and Assessments

All unit owners must pay monthly condominium fees and any special assessments promptly.

Failure to pay can result in liens or legal action.

Dispute Resolution

Disputes between owners, tenants, and the condominium corporation may be resolved through:

The Condominium Authority Tribunal (CAT): Handles specific disputes, such as rule violations or issues related to records.

Mediation and Arbitration: Often required under the Condominium Act before escalating to court.

Key Takeaway

Living in a condominium in Ontario means abiding by rules designed to protect everyone’s enjoyment and the property’s value. Understanding and respecting these rules fosters a positive, cooperative community environment.

What is An Annual General Meeting?

An Annual General Meeting (AGM) is a legally required meeting of the owners in a condominium corporation in Ontario. It is held once a year and serves as an opportunity for the Board of Directors and property management to provide updates, review the corporation's financial performance, and address important matters affecting the community. AGMs are governed by the Condominium Act, 1998 and the specific governing documents of the condominium corporation.

Purpose of the AGM

Reviewing Financial Information

Presentation and approval of the audited financial statements for the previous fiscal year.

Discussion of the condominium's financial health, including operating budget and Reserve Fund status.

Electing or Re-Electing Directors

Owners vote to elect or re-elect members to the condominium's Board of Directors.

Nominations and candidate statements are often part of this process.

Providing Updates

The Board and management provide an overview of accomplishments, ongoing projects, and upcoming plans.

Updates may include maintenance initiatives, major repairs, or Reserve Fund expenditures.

Addressing Owner Concerns

Owners may raise questions or concerns about the condominium's management, finances, or community rules.

This open discussion fosters transparency and accountability.

Approval of Certain Decisions

Some significant decisions, such as changes to bylaws or rules, require owner approval and may be discussed and voted on at the AGM.

Notice Requirements Under the Condominium Act, 1998:

Timing: Owners must receive written notice of the AGM at least 15 days before the meeting.

Contents: The notice must include:

The time, date, and location of the meeting.

The agenda.

The financial statements for the previous fiscal year.

Information about director elections, including instructions for nominating candidates.

Who Can Attend?

Unit Owners:

All owners are entitled to attend, participate, and vote at the AGM.

If multiple people own a unit, only one person can vote unless proxy arrangements are made.

Proxy Holders:

Owners unable to attend can appoint a proxy to vote on their behalf.

A proxy form is typically included with the AGM notice.

Board Members:

Board members present reports, address questions, and oversee the meeting.

Property Management Representatives:

Management professionals attend to provide operational updates and assist with meeting logistics.

Auditor:

The corporation's auditor will attend and present the audited financial statements.

Owner Questions:

A question-and-answer session allows owners to raise concerns or seek clarification on issues affecting the community.

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