Tag Archives: condo owners

Property Management or Board of Directors??

by: Linda Pinizzotto, DStG – Dame Order of St George –  Founder CEO COA – Condo Owners Association 

It is common for Condo Owners to be angry with the Property Managers blaming them for not returning their phones calls and/or not resolving their problems.  Property Managers ignore their requests for help;  frustrations develop and Condo Owners become angry and hostile towards Property Management.

Condo Owners are barking up the wrong tree.

The Board of Directors are to blame because they have the power.  The Board controls all of the operations of the building which includes contracts and all service related trades.  They approve Property Management contracts and the Property Management company designates a Property Manager to the building to do as the Board says at all expense because they want to ensure their contracts.  There is alot of money involved;  many of these contracts can range from $120,000 to $300,000 depending on the size and amount of buildings involved.  It is a very serious stake in the Condominium World but one that has created major controversy of responsibility because even though these Firms are paid by the Corporation they report to the Board and in most cases believe they represent the Board.

Be wary of getting into arguments with Property Management because once they report back to the Board of Directors;  chances are you will have more even more problems. The Board instructs Property Management.

How do Condo Owners know if their Board is operating in compliance to the Condo Act?    The $1 Million dollar question can be answered only if Condo Owners start taking responsibility and learn about Condos, watch their Boards and speak out if they feel things are wrong.  Until then;  Owners will suffer the consequences of disputes, theft, fraud and a serious problems with their Board of Directors.

STOP VIRTUAL AGM CONDO MEETINGS

by: Linda Pinizzotto, DStG – Dame Order of St George –  Founder CEO COA – Condo Owners Association 

Condo Owner must have in person Annual General Meetings and Special Call Meetings of the Board of Directors along with virtual.  Virtual is NOT a transparent replacement of in person!   HELP STOP the permanent passing of virtual meetings as per the proposed Act.

CONDO BOARD OF DIRECTORS need to be present and held accountable during all Condominium Annual General Meeting and Condo Owners Special Called Meetings.  The virtual meetings are controlled by the Board and many Condo Owners do not have the ability to voice opinions and concerns.  The meetings are not transparent nor do they protect Condo Owners.   Most Condos have meeting rooms and generally quorum is achieved plus possibly 20% owners attending.  To ensure ALL OWNERS have ability to protect their interest, ask questions on their own time in presence of the Board these meetings MUST be IN PERSON AND VIRTUAL allowing every Owner to attend and have an ability to speak their opinions and freely ask questions. 

The Government of Ontario under emergency order during Covid allowed electronic members meetings and board meetings ie. conference call, zoom and video call meetings.   Sadly they further amended the Condominium Act, 1998, to extend electronic meetings until September 30, 2023   The Board can have virtual meetings even if the by‑laws or rules of the corporation  do not provide for electronic meetings, the further amendment allows them. Extension Details as per CAO

This is wrong and should not be passed!  We urge all Condo Owners to read the following taken from Ministry of Public and Business Service Delivery

Questions about the extension of the effective period of the temporary legislative provisions related to virtual meetings can be directed to OnCondo@ontario.ca.

Condo Act Review Information

Over 90% involvement of service related trades may have compromised new recommendations for changes to legislation in particular funding for the CAO Condo Authority of Ontario and the CMRAO Condominium Management Regulatory Authority of Ontario.  Are  Condo Owners expected to pay for Property Managers to be licensed?  Interesting, many Property Management Firms  receive monies for their contracts from Condo Corporation and status certificate requestions ie. $125.00  there are many Property Management firms who keep $100.00 and the remainder goes to the online service provider.  The question “Why is this happening when PM is a paid contractual services of the Corporation?” Why does the contract not already include this services of license property managers from licensed firms.

In many situation it is the fault of the Board of Directors who allow Property Managers free rein to do as they please.   The numerous complaints the COA receives from Condo Owners is that they are concerned of kickbacks and overinflated contracts which impacts the financial stability of condo corporations. It could be from either Property Manager, the firms and/or the Board. Unfortunately without condo owners standing up for their rights and joining COA; it is difficult to combat. The Board has a fiduciary responsibility to act in the best interest of the corporation. Property Management firms are only contractual services and the property manager is delegated by that firm to over see the operations of the corporation ONLY on the instructions of the Board. If you are a past board member you may have been in a position to force changes for a new company but again that decision would have to be with a majority vote so if there is no support of this decision then you may have to call a meeting with 15% owners and try to force changes. Many condo owners feel they may be ostracized and or have more conflicts by complaining but the situation will get worst and there may be concerns on your financials.

If the corporation has broken personal ownership items of a Condo Owner they should be responsible however the Condo Act is self governed which lends itself to abuse and a one side power against Condo owners in many cases. We wish we could give more positive answers to help Condo Owners but there are none because the Condo Act has tremendous Flaws!

COA is always looking for support and volunteers because if we can grow with a strong following as the Teachers Association or any other Associations only then will Condo Owners have a strong voice and government will have no choice but to listen without the constant influence of service related trades protecting their own interest. Condo Owners have to stand up for their rights, it is long overdue!

Condo Declaration non-compliance to Condo Act

All Board of Director of any Condominium Corporation must comply with the Ontario Condominium Act 1998 https://www.ontario.ca/laws/statute/98c19

Also inclusive of the numerous changes to modernize the Act.   https://news.ontario.ca/en/release/21256/building-a-better-condominium-act

Condominium Corporations with outdated Declarations written prior to 1998 should be updated to comply with the act to protect the Corporation and its Owners.   A Condo Corporation is comprised of Owners equivalent to the number of units within the Corporation.   Board of Directors voted in by the Owners have a responsibility to follow the Act as written inclusive of other Acts Protecting Condominium Owners Act 2015, S.O. 2015, c. 28  https://www.ontario.ca/laws/statute/s15028 and Bill 106, Protecting Condo Owners Act, 2015  https://www.ola.org/en/legislative-business/bills/parliament-41/session-1/bill-106

It us our opinion not professional advice, the Board of Directors of your Condominium Corporation should consult a Condominium Lawyer to updated the any Condo Corporation Declaration which was written prior to 1998 Condo Act as soon as possible. If it is in non compliance and the Board of Directors carries on business of the Corporation in the above circumstances they not only may compromise the Corporation but could also potentially negate any Director Liability Claims considering they are well aware their Declaration and or By-Laws are outdated.   The COA are not lawyers, we are offering our opinion and equally suggest the Owners to seek Legal advice in the event the Board refuses.    If Owners feel their Board of Directors are not in compliance with the above acts, we highly recommended it be reported to the CAO  Condominium Authority of Ontario.  

Property Managers and Management company are licensed / an accreditation mandatory under the Act – Condominium Management Services Act, 2015, S.O. 2015, c.28, Sched 2   https://www.ontario.ca/laws/statute/15c28     Also regulated by the CMRAO mandating compliance to the Act in all of their professional activity.  If Owners feel they are in a situation where their Property Manager or Management company is not in compliance it is highly recommended it be reported to the CMRAO  Condominium Management Regulatory Association Ontario.  

Please note:   Under the Condominium Act, 1998, Section 37, Standard of Care (1): “Every Director and every officer of a corporation in exercising the powers and discharging the duties of office shall (a) act honestly and in good faith; and (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.” 1998,c 19,s.37 (1).

We have offered our opinion on the above situation and we always endorsed Standard Care of every Director and Officer of the Corporation as noted above.   Protecting Condominium Owners Act is the product of the Governments comprehensive review of the existing Condominium Act.     We trust these directives are helpful. 

The COA has worked hard since 2010 for these changes

Stronger Ontario Building Codes keep Condo Owners Safe

by: Linda Pinizzotto, DStG – Dame Order of St George –  Founder CEO COA – Condo Owners Association 

Stronger Ontario Building Codes to keep Condo Owners Safe

Municipal Affairs and Housing Minister, Kathleen Wynne has announced changes to strengthen the Ontario building code to help prevent balcony glass of newly constructed buildings from breaking and keep Ontarians safe in high-rise buildings.
http://news.ontario.ca/mah/en/2012/06/ontario-strengthens-requirements-for-balcony-glass.html
While this initiative is an excellent start, Ministry of Municipal Affairs and Housing needs to address the inefficiencies of the New Home Warranty Program and Tarion Warranties for new construction and the limited 1-2 years warranties on existing buildings. These warranties do not protect the value of a $80 Million dollar condo building when the time period and list of coverages are similar to those of a single family dwelling. There needs to be a separate coverage to address multi-family residential condominium buildings.
Today’s announcement relating to new Ontario rules and better building codes to prevent glass from breaking off high-rise Balconies was another example of how COA is helping Condo Owners. COA worked with CBC news “throw-away buildings: Toronto’s glass condos. Falling glass from balconies from several buildings in downtown Toronto created major issues of safety concerns for owners and the general public. The Condo Owners Association – (COA) reported problems relating to glass balconies and deficiencies relating to energy efficiency supporting a CBC special featured story by John Lancaster.
http://www.cbc.ca/news/canada/toronto/story/2011/11/13/tor-glass-walled-condos.html
http://www.youtube.com/watch?v=w0a9q_DqF1o
Value issues relate are affected by unwarranted costs relating to premature deficiencies which fall past the minimal and limited Tarion Warranties. COA has played a very active role in moving forward for a better understanding of the problems and bringing this information to the forefront. Cam Wooley’s “Know your Rights” on CP24 welcomes our input as well as Matt Galloway – CBC Metro Morning in conversation with Linda Pinizzotto, Founder, President/CEO of the Condo Owners Association about the risks condo owners face and the limited protection they have. Listen (runs 6:54)
RADIO
http://www.cbc.ca/video/news/audioplayer.html?clipid=2102259830
CBC NEWSBROADCASTING ON CBC NEWS AND THE NATIONAL
http://www.youtube.com/watch?v=vZglE1czXyo
COA continues to work with Government to embrace the issues to help Condo owners ensure their safety, investment sustainability and good business infrastructure of the condo world.
The mass construction of Condominiums in the past few years has identified over 1.3 million Condo Owners in our Province. Last Friday, our Ministry of Consumer Services announced “Building a Better Condo Act” to modernize the present Condo Act (1998). The Ministry of Municipal Affairs and Housing needs to participate to embrace resolutions to the Act relating to safety and better construction standards. Specific requirements and restrictions relating to the construction aspect of new and existing Condo Corporations.
All information and comment on articles geared to Condo Owners and Condominiums should include comment from COA Ontario as the governing body of COAtoronto, COAmississauga, COAottawa etc. COA has chapters in each City across Ontario
– See more at: http://www.oreablog.com/2012/06/ontario-government-introduces-stricter-requirements-for-balcony-glass/#sthash.MSPIFjTH.dpuf

Condo Insurance Coverage

by: Linda Pinizzotto, DStG – Dame Order of St George –  Founder CEO COA – Condo Owners Association 

COA and Allstate working together on Condo Hero Contest

 Are you protected?

Recently, Allstate Insurance Company of Canada and Abacus Data released some research that shows many condo owners are lacking critical knowledge about their insurance coverage, which could lead to costly mistakes.

Here are some of the major findings:

  •  61 per cent of Canadian condominium (“Condo”) owners don’t know or incorrectly assume their building’s insurance will cover damage to another unit from water or fire that originated in their unit
  • 74 per cent of Canadians looking to purchase a condo in the next few years don’t know what their personal insurance cover versus what the condo corporation’s insurance should cover.
  • Only 39 per cent of condo owners and 26 per cent of condo buyers know that the belongings of a roommate or boarder are not covered under their personal condo insurance policies.
  • 21 per cent of condo owners are not aware that the condo corporation’s insurance is responsible for incidents like falling concrete and shattering glass from condominiums.

 As a condo owner, there are things you can do to make sure you are protected:

  •  Ask your condo board or management company to explain what the building’s insurance policy does or does not cover.
  • Talk to your insurance agent about your policy. Being properly covered can prevent your getting stuck with the bill if your condominium’s policy falls short.  
  • Remember that damage done to your car in a garage or belongings in a storage locker are covered under your personal policy and not the building’s policy so you should ensure your coverage properly protects your car and any items you have stored in your locker.
  • Right now we (COA)  are partnering with Allstate Canada to help educate Canadians about their condo insurance.   We’re running a contest to find a GTA Condo Hero – a concierge, security guard or property manager who makes a big difference to the lives of condo owners. 
 You can find out more about this contest

 

 Meet the Judges:

 Why you need Condo Insurance