Modernizing of Ontario's Condo Act Benefits us All

By Barbara Lawlor

In 1998, Ontario’s Condominium Act was established, and it came into force in 2001. This Act was implemented to establish parameters for the Land Registration System as to what types of condominiums would be accepted. That was 11 years ago, and during that time, things have changed enormously in the condominium world – particularly in Toronto. That is why the McGuinty Government’s announcement about taking steps to modernize the act is great news. 

When compared to freehold, condominium ownership is fairly new, so it is not surprising that our Condominium Act needs refreshing. The past decade has been a whirlwind, with new home buyers snapping up condominium suites in record numbers. In fact, in 2011, Toronto had the fastest-growing high-rise condominium market on the continent. Currently, more than a million people live in condominiums in Ontario. Approximately half of new home sales in Ontario are condo, which represents 60 per cent of homes sold in the GTA. Our condominium developers are smart and creative, providing leadership in both design and construction techniques.

And when you think about it, condominiums come in a remarkable variety of configurations, which was not the case before the Condo Act came into effect. Today we have, for example, mixed-use condominiums that include residential suites and commercial venues. We have hotel-condominium combinations in which some of the building is dedicated to hotel suites and the rest to residences. Existing apartment buildings and other structures are being converted to condos. There are fully retail condominiums, and of course, the term can also refer to townhomes with shared common elements. We have mid-rise and high-rise condos, and combinations of both in the same community. The complexities the Condominium Act ensuring that owners and residents of these buildings will have their needs met are enormous.

And even when you look at strictly residential condominiums, the level of understanding of this type of ownership is often low. Many people assume it is the same as owning a freehold residence, but it differs greatly. Condominiums must abide by declarations and by-laws that cover items such as the costs of maintenance, security and the use of common elements. The new Act will streamline information and best practices for handling these factors, especially for the large number of investors and absentee landlords we have today. 

Our provincial government will start the process of amending the Condominium Act with public consultations that will address topics such as consumer protection for purchasers, the governance of condominium boards, accreditation of condo managers, dispute resolution, and the handling of condominium reserve funds – everything relating to the aspects of condominium living. The Ministry of Consumer Services’ public meetings will provide a forum for condominium owners, residents, builders and developers, board members, property managers, lawyers and brokers to raise issues and discuss concerns. 

Once the pertinent topics are established, the government will consult with and enlist experts who can help come up with long-term solutions. Eventually, the discussion will open with the public again to consider those ideas. This open approach provides a voice to everyone involved, and the collaboration can inspire innovative approaches to the various topics discussed. Updating our Condominium Act is right in line with what is happening across Canada. Many provinces such as Alberta, Manitoba, British Columbia, Newfoundland and Nova Scotia have already held public consultations for the same reason.

It’s all about understanding and responding to a changing condominium world. The upcoming process requires cooperation between consumers and the public and private sectors, which is the ideal scenario. We must work together to ensure that the wonderful lifestyle condominiums offer remains protected. 

Details of the Ontario public consultations are going to be released later this summer. To keep abreast of what is happening, you can register your interest in modernizing the Act at oncondo@ontario.ca or follow the Ontario Ministry of Consumer Services on Twitter.

Barbara Lawlor is president of Baker Real Estate Incorporated and an in-demand columnist and speaker. A member of the Baker team since 1993, she oversees the marketing and sales of condominium developments in the GTA and overseas. Keep current with The Baker Blog at blog.bakerrealestate.com