Licensing of Condominium Managers-What are some of the statutory obligations placed upon licensees? (Blog No. 6 in a Series)

We now have the draft regulations under the Condominium Management Services Act, 2015 (the “Management Services Act”).  This is the sixth in a series of blogs that I am preparing in relation to the draft regulations.

In this Blog No. 6, I answer the following question:  What are some of the statutory obligations placed upon licensees?

What are some of the statutory obligations placed upon licensees?

I.  Proof of Licence

According to the proposed regulations:

While providing management services, licensees must carry their licences with them and produce them for inspection by anyone who requests.

Condominium management providers must keep paper forms of their licences in their places of business.

II.  Address

The proposed regulations say that a licensee must maintain an Ontario address for service.

III.  Changes in Information

The proposed regulations say that a licensee must notify the Registrar in writing within five days of changes in certain information related to the licence.

IV.  Multiple Employers

According to the proposed regulations:

A licensee can only be employed by condominium management provider(s); except that a general licensee can be employed directly by as many as three condominium corporations.

A licensee cannot be employed by more than one condominium management provider unless all of the management providers agree.

V.  Conflicts of Interest

The Management Services Act and proposed regulations require licensees to disclose their conflicts of interest in relation to existing and/or proposed contracts or transactions of the client (and the licensee must not participate in any discussions respecting the matter).

VI.  Insurance

The proposed regulations require that condominium management providers disclose (in the management contract) the type and amount of insurance coverage (if any) held by the management provider and manager.  The licensee must also notify the client within 14 days of any change in the licensee’s insurance coverage.

VII.  Proxies

The Management Services Act and proposed regulations prohibit licensees from soliciting proxies for meetings that will deal with matters directly related to the licensee, or with the election or removal of one of the directors, or with any other matter prescribed by regulations under the Management Services Act.  (The proposed regulations also contain a definition of “solicit”.)

VIII.  Records

  • Records respecting licence: The proposed regulations would require licensees to maintain various records respecting their licences and management services, for at least six years.
  • Storage of records: Licensees would be required to keep the above records in Ontario; and would only be permitted to store records in a dwelling if the licensee has received approval from the Registrar to do so.
  • Transfer of client’s records: The Management Services Act requires immediate transfer of the client’s records upon termination of a management contract.  The proposed regulations say that this transfer must occur within 10 days of the termination; except that records required by the contract but which don’t yet exist could be created and delivered within one month.  (The manager would also be entitled to make and keep copies of records, for limited purposes and on terms set out in the regulations.)
  • No pressuring: The Management Services Act says that licensees must not withhold records as a means of pressuring the client to meet obligations under the management contract.

IX.  Management Agreements

The Management Services Act says that licensees must have a written management contract and “shall not provide such services except in accordance with the contract”.

X.  Obligations of Condominium Management Providers

The Management Services Act says that management providers must only employ licensed managers (for services requiring a licence) and the providers must also “ensure that every condominium manager that the provider employs carries out his or her duties in compliance with this Act and the regulations”.

XI.  Obligations of Principal Condominium Managers

The Management Services Act says that principal condominium managers must “ensure that the condominium management provider complies with this Act and the regulations”.

XII.  Contraventions

The Management Services Act says that licensees must not “counsel, advise or knowingly assist a person to contravene this Act, the Condominium Act, 1998 or any other prescribed Act”.

The Management Services Act also says that licensees must not furnish or knowingly assist in the furnishing of false information or documentation relating to the providing of condominium management services.

Stay tuned to Condo Law News for more blogs about the draft regulations under the Condominium Management Services Act, 2015.