New Proposed Regulations under the CMSA

The Ministry has circulated proposed regulations under the Condominium Management Services Act (“CMSA”) that give us further insight into the standards condominium managers will have to meet once the CMSA comes into force. For now the Ministry is seeking feedback on the proposed regulations from the public. Condominium owners, residents, developers, managers and other stakeholders are invited to submit their comments.

We’re another step closer to better understanding the rest of the Condominium Management Services Act (“CMSA”) – beyond the pure licensing requirements.

On August 30, 2017, the Ministry circulated proposed regulations that provide direction on the following sections of the CMSA:

The proposed regulations are designed to serve as a directive to “spell out” in more detail the requirements of the CMSA. In June 2017, the Ministry previously filed a General Regulation (Regulation 123/17) that deals with other sections of the CMSA such as licence applications and licensee requirements. Once passed, the newly proposed regulations will work alongside Regulation 123/17.

The Ministry expects that the proposed regulations will be finalized and come into force on February 1, 2018.

In the meantime, the Ministry is now seeking public feedback until October 16, 2017, that will be considered when finalizing the regulations. You can provide your comments by mail to: 56 Wellesley Street West, 6th Floor, Toronto, Ontario, M7A 1C1. Be sure to quote “Proposal Number 17-MGCS018.”

While the proposed regulations have yet to be finalized and are subject to change, they provide valuable insight into the standards and obligations the Ministry expects of condominium managers.

Here’s a general overview of the proposed regulations:

Code of Ethics

Perhaps the most serious aspect of the proposed regulations is the new Code of Ethics for condominium managers. The CMSA allows for the establishment of a Code of Ethics for licensees, and the proposed regulations set out the proposed Code of Ethics.  The Code of Ethics will set the standards that licensees must meet to comply with their ethical obligations under the CMSA. According to the proposed Regulations, the Code of Ethics is designed to promote professionalism, reliability, and quality of services.

Discipline and Appeals Committee

The CMSA also establishes two committees – the Discipline Committee and the Appeals Committee – which are designed to hear and determine complaints about alleged breaches of professionalism (including alleged violations of the Code of Ethics). We now know that the committees will each consist of 5 members appointed by the Board of the Condominium Management Regulatory Authority of Ontario (CMRAO). The proposed regulations explain the composition of the committees and the procedures they must follow.

Complaints

Under the CMSA, if the Registrar receives a complaint about a licensee, the regulation sets out the procedures respecting complaints. Among other things, the Registrar can request information related to the complaint from any licensee. The proposed regulations set out the notice required to do so and set out a licensee’s obligations when a complaint is made.

Insurance

The proposed regulations say that every licensed condominium management provider must maintain both errors and omissions insurance and fidelity insurance. The proposed regulations also set out the obligations for condominium management providers to disclose information about the types and amounts of insurance coverage they carry.

Other Requirements

The proposed regulations also establish requirements respecting the following:

  • Disclosure required by Licensees: licensees will be required to disclose certain information in writing to prospective clients before entering into a contract for management services.
  • Duties in relation to client records: the proposed regulations will require licensees who hold records on behalf of clients to comply with certain standards.
  • Duties in relation to supervision of licensees: The proposed regulation would require licensed condominium management providers to ensure an adequate level of supervision for limited licensees in their employment.

Stay tuned to Condo Law News for a series of blogs coming shortly to give more details and comments about these proposed regulations. First up will be our review of the Code of Ethics.