New Condo Property Regulations Take Effect July 1, 2019
Any condo owner who has tried to sell their home, will tell you how expensive condo documents can be. As part of the purchase contract, the seller is required to provide a number of condominium documents to the buyer (or the buyer has the option to obtain the docs themselves). This is items like financial statements, board minutes, reserve fund study, etc.
The Condominium Property Amendment Act was passed in December 2014. The next step was to create more than 50 supporting regulations, which are being developed and rolled out in stages.
The first stage, which came into effect earlier in 2018, focused on protecting condo buyers and ensuring their investments are properly looked after. The second stage, announced on Dec. 14 and coming into effect throughout 2019 and 2020, focuses on condominium governance.
Part of the new regulations comes into effect on July 1, 2019, and puts a cap on how much management companies can charge for condominium documents. A full package (this is why you as a condo owner should keep all of the documents you receive from the Board and Management Company) could cost around $500+!
Here are the highlights:
Fee caps on the prices condo corporations can charge owners, buyers, and mortgage companies for obtaining the condo documents needed to complete a purchase or sale.
- $100 max. for an estoppel certificate.
- $10 max. for each document in section 20.57(1) of the Regulations – which includes the documents needed in AREA’s condo listing and purchase contracts.
- If a document is attached to or forms part of another document, a fee can only be charged for 1 document.
- If a 3-day (rush order) is requested, the corporation may charge up to $30 per document, provided that the document is provided within 3 days (excluding holidays).
- Owners may make copies of their documents and provide copies to others.
Clarifying what documents must be provided to owners, and when, for free.
- The minutes from all board meetings held since the last AGM (before or when the AGM notice is sent).
- The approved minutes, or draft minutes, of the AGM (within 30 days of AGM).
- A copy of the notice filed at land titles reflecting the current composition of the board (within 30 days of AGM).
- The results of a vote (within 30 days after the date on which votes must be received).
- A copy of the annual budget (at least 30 days before the start of the fiscal year).
- If revisions are made, a copy of the revised budget (as soon as possible).
Additional changes – most taking effect July 1, 2019 and the remainder on January 1, 2020:
- New rules around meetings, such as requiring more notice to attend general meetings and getting topics on the agenda.
- Better voting rules so owners can participate more effectively in meetings.
- Fairer processes for issuing bylaw fines.
- Increased protections for condo owners’ investments.
- Strengthening how reserve funds are managed (July 1, 2019/January 1, 2020).
- New requirements for insurance and rental deposits (January 1, 2010).