CondoVoice - Fall 2005 by LS Graphics

www.ccitoronto.org

VOL. 10, NO. 1 • FALL 2005

P U B L I C AT I O N O F T H E C A N A D I A N C O N D O M I N I U M I N S T I T U T E - T O R O N T O & A R E A C H A P T E R P U B L I C AT I O N D E L’ I N S T I T U T C A N A D I E N D E S C O N D O M I N I U M S - C H A P I T R E D E T O R O N T O E T R É G I O N

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Renting Your Condo ■

So You Want to Rent Out Your Condo

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Tenants Must Comply with The Condo Act

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The Owner / Tenant Wars

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Short-Term Lease of Residential Units - Myth or Reality?

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Tenant Issues

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Dealing with Tenants

… and more

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Canadian Condominium Institute / Institut canadien des condominiums Toronto & Area Chapter 2175 Sheppard Ave. E., Suite 310 Toronto, Ontario M2J 1W8 Tel.: (416) 491-6216 Fax: (416) 491-1670 E-mail: cci.toronto@taylorenterprises.com Website: www.ccitoronto.org

2004/2005 Board of Directors

Contents Features

6 11 12

Henry Cohen (Member: Special Projects Committee) YCC #0074

Tenant Issues - Notify Owner about Tenant’s Default

Tom Park, P.Eng., ACCI (Member: Public Relations Committee) Golder Associates Ltd. Vic Persaud, BA (Member: Special Projects Committee) Suncorp Valuations Ltd. Bill Thompson, RCM, ACCI (Member: Membership Committee) Malvern Condominium Property Management

EX OFFICIO BOARD MEMBER Jasmine Martirossian, B.A., M.A., PhD.

ADMINISTRATOR Lynn Morrovat

by Donna J. Farr, RCM There are a number of things a condominium corporation can do to ease the situation between owners and tenants.

by Patricia Conway The unit owner must be kept informed and involved and be notified consistently regarding tenant problems.

Dealing with Tenants by Bob Gardiner, B.A., LL.B., ACCI, FCCI Tenants tend to breach the corporation’s declaration, by-laws and rules more frequently than do owners.

Armand Conant, B.Eng., LL.B., D.E.S.S. (Chair, Legislative Committee) Jones Rogers LLP Lisa Kay (Member: Special Projects Committee) Maxium Condo Finance Group

by Armand G.R. Conant, B.Eng, LL.B, DESS (Sorbonne)

The Owner / Tenant Wars

BOARD MEMBERS Gina Cody, P.Eng., M.Eng., Ph.D., ACCI, FCCI (Co-Chair, Public Relations Commitee Chair, Education Committee) Construction Control Inc.

Short-Term Lease of Residential Units - Myth or Reality?

PAST PRESIDENT J. Robert Gardiner, B.A., LL.B., ACCI, FCCI (Member: Conference Committee) Gardiner Miller Arnold LLP

by Denise Lash, B.Sc, LL.B., ACCI, FCCI

For the future, developers should insert in their proposed declaration (and disclosure statement) a clear provision that either prohibits or allows short-term leases.

Denise Lash, B.Sc., LL.B., ACCI, FCCI (Co-Chair, Public Relations Committee) Miller Thomson LLP SECRETARY/TREASURER Bob Girard, B.Comm (RCM) (Chair: Special Projects Committee) Simerra Property Management Inc.

Tenants Must Comply with The Condo Act Informing tenants as to what their obligations are from the outset may reduce the likelihood of breaching the condominium documentation.

PRESIDENT

VICE-PRESIDENTS

by Harry Fine If problems arise, be aware that there are no simple answers as you turn from a twoparty relationship into a tri-party arrangement.

Janice Pynn, RCM, ACCI, FCCI Simerra Property Management Inc.

John Warren, C.A. (Chair, Membership Committee) Adams, Masin & Tilley LLP

So You Want to Rent Out Your Condo

ACMO 2000 - A Condominium Standards Program for Future of Condo Living

Departments 4 5 33 34 37

Calendar of Events President’s Message Member News Book Review Resource Corner

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Canadian Condominium Institute - Toronto & Area Chapter

Calendar of Events 2005

Basic Condominium Course* Date:

Tuesday, September 20th, 27th, October 4th, 11th, 18th and 25th, 2005 Time: 7:00 p.m. to 10:00 p.m. each evening Location: Novotel Hotel North York – Gibson Ballroom, 3 Park Home Avenue, Toronto, ON M2N 6L3 Cost: Members - $300.00 plus GST, Non-Members - $400.00 plus GST

Thursday, September 22nd, 2005

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Thursday, October 20th, 2005 Time: 7:00 p.m. to 10:00 p.m. Location: Novotel Hotel North York – Gibson Ballroom, 3 Park Home Avenue, Toronto, ON M2N 6L3 Cost: Members - $50.00 plus GST, Non-Members - $60.00 plus GST Moderator, Gina Cody along with speakers Denise Lash, Sean Routbard, and Lew Levy will provide a complete overview of what to look for and the key questions to ask when purchasing a condominium.

Time: 7:00 p.m. to 10:00 p.m. Location: Novotel Hotel North York – Gibson Ballroom, 3 Park Home Avenue, Toronto, ON M2N 6L3 Cost: Members - $40.00 plus GST, Non-Members - $50.00 plus GST Moderator Bob Girard, and speakers from the City of Toronto, Waste Solutions Group, Stratacon Inc. and Carma Industries will provide Directors with the latest information on the issues of City Waste Levy Fees and sub-metering strategies.

A six night course for all Directors and Owners who want a better understanding of the way condominiums function and should operate.

Purchasing a Condominium – What You Need to Know

President’s Club Seminar – Focus on Conservation*

9th Annual CCI/ACMO Condominium Conference*

Managing Performance Audits

Friday, November 4th and Saturday, November 5th, 2005

Wednesday, November 30th, 2005

Time:

Friday, 9:00 a.m. to 6:00 p.m. Saturday, 9:00 a.m. to 3:15 p.m. Location: Doubletree International Plaza Hotel, 655 Dixon Road, Toronto, ON M9W 1J3 Cost: Members - Early Bird until Sept. 23/05 - $225.00 / Regular - $275.00 plus GST Non-Members - $400.00 plus GST This years’ two day conference will include over seventeen educational seminars and over 60 speakers focusing on current issues facing the industry, as well as a two day trade show featuring 70 exhibitors displaying the latest in condominium products and services.

Time: 10:30 a.m. Location: Metro Toronto Convention Centre, 222 Bremner Blvd – South Building, Toronto Ont. Cost:

Free to those attending PM Expo

(visit www.pmexpo.com for more details) Moderator Janice Pynn along with speakers Gina Cody and Mark Arnold will discuss Performance Audits and review how corporations manage to survive the process. Learn how to tender, coordinate and complete the audit as required by the Condominium Act. What the next steps are after submission to Tarion. How managers can support the process to ensure a positive and successful negotiation using the appropriate industry experts.

Watch for more information coming soon on the launch of the ‘Level 100’ Introductory Condominium Course for Directors – coming to the Novotel Hotel in Toronto on Saturday January 21st, 2005 from 9:00 a.m. to 12:00 p.m. *To Register for any of these events, please download a registration form from www.ccitoronto.org or call (416) 491-6216. 4

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President’s Message

ondominiums come in all shapes, sizes and ages… and so do condominium residents. Many are ‘empty nesters’ who have sold their homes and downsized to a condo. Others are first time buyers making their first real estate investment. And, yet others are renters living in the growing number of units being purchased primarily for investment purposes.

Janice Pynn, RCM, ACCI, FCCI

This issue of ‘TheCondoVoice’ focuses on the matters and concerns of ‘Tenants in Condominiums’. Donna Farr offers sound suggestions to ease tensions between owners and tenants which can often arise. Harry Fine, in his article ‘So You Want to Rent Out Your Condo”, provides a practical look at how tenants are protected under the Tenant Protection Act, while Bob Gardiner’s article on page 24 takes a look at enforcement from the perspective of the Condominium Act. Some interesting case law relating to tenant issues is provided by Patricia Conway in her article, ‘Tenant Issues’. Whether you are an investor, unit owner or a tenant, we hope these articles will be informative and enlightening. If you are considering purchasing a condominium unit, or know of someone who is, be sure to attend CCI-Toronto’s upcoming seminar on October 20th on “Purchasing a Condominium – What You Need to Know”. A panel of experts will be on hand to show you what to look for, what to avoid and what questions you need to ask before your sale is final. Also, watch our website for further details on our upcoming Annual General Meeting. As in past years, a Wine and Cheese Reception is planned to follow the meeting to provide members the opportunity to meet and mingle. We hope to see you there!

Janice Pynn, RCM, ACCI, FCCI President, CCI Toronto & Area Chapter

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So You Want to

Rent Out Your Condo

M BY HARRY FINE LANDLORD SOLUTIONS

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any condominium units around Ontario are being bought as investments, with the expectation that values will rise. Purchasers with barely enough for a down payment will attempt to finance their mortgage payments through a rental arrangement, either one they dig up privately, or with a tenant procured for them by the management company or the realtor who sold them the condo unit. It is commonly believed that over 25% of condominium units in Toronto are rented as investment properties. All residential tenancies in Ontario are governed by the Tenant Protection Act (TPA), and have been since June of 1998. The TPA sets out the rights and obligations of landlords and tenants and provides a remedy through the Ontario Rental Housing Tribunal when either party doesnâ&#x20AC;&#x2122;t live up to their part of the deal. Just as if a private house or a high-rise were being rented, the landlord needs to live up to its obligation to maintain and repair, charge a lawful rent, give proper notices of rent increase, to provide reasonable quiet and enjoyment, and keep the tenant free from harassment. The tenant needs to keep the unit free from damage, not interfere with the quiet enjoyment of others, pay their rent on time, not impair safety or commit illegal acts etc.

Besides resolving disputes between landlords and tenants, the TPA sets out what lawful rents should be, what the annual provincial rent guideline increase may be, and goes to great length in setting up a mechanism to evict tenants who break the rules, either by not paying their rent, or by abhorrent conduct. There are also applications a landlord can make if they wish to evict a tenant for the purpose of reclaiming their home if they or a family member decide to move back in. Residential tenancies within a condominium are a different breed. The rental unit is wrapped up in an envelope governed by the Condominium Act, 1998, yet the unit itself and the relationship between the landlord and tenant are governed by the Tenant Protection Act, 1997. The unit owner is the landlord. The unit owner may delegate a management company to look after the day to day operation of the rental unit, in which case both the property management company and the unit owner may be considered the landlord for the purposes of the TPA. When the tenant causes problems, only the landlord, not the condominium board, can bring the tenant to the Tribunal. The condo board has rights and remedies against the unit owner, and can seek a compliance order or even register liens against the unit in

the Courts. But the Tenant Protection Act provides rights and remedies only between landlords and tenants. Imagine the situation wherein the condominium is not providing adequate heat, or the pool is broken, or there is noise from other units. The tenant renting a unit has only the landlord to com-

can make an application to the Ontario Rental Housing Tribunal to evict the tenant, if the tenant is substantially interfering with the reasonable enjoyment of the landlord, or other tenants, or if the tenant is interfering with a legitimate right, interest or privilege of the landlord.

Residential tenancies within a condominium are a different breed. The rental unit is wrapped up in an envelope governed by the Condominium Act, 1998, yet the unit itself and the relationship between the landlord and tenant are governed by the Tenant Protection Act, 1997. plain to. The landlord would take the problem up with the building management. If the building management didn’t satisfy the owner or fix the problem, the tenant would have a legitimate action against the landlord, the unit owner, at the Ontario Rental Housing Tribunal but would have no remedy against the condominium corporation. Animals sometimes create problems in condominium buildings. A condo may have in its declaration or bylaws that no pets over a certain size may live in a unit. However, the relationship between the renter and the landlord is governed by the Tenant Protection Act, not the Condominium Act. The TPA states that there may be no “no pet” provisions allowed in a residential tenancy agreement. So…the tenant is within his or her rights to have the animal, yet the condominium corporation and the board may have a legitimate action against the unit holder. It is crucial that if you are a unit owner renting your suite to a tenant, that you include in the tenancy agreement that the tenant is obligated to comply with all the provisions of the declaration, rules and bylaws. As long as these are not inconsistent with the Tenant Protection Act, you then have a remedy against the tenant when he or she breaks the rules. An agreement in the tenancy agreement becomes the landlord’s lawful right. The landlord

On a slightly different twist, as an adjudicator, I often saw unit owners hire third-party agencies to provide care-free rental of their condo unit, passing the rents on to the owner while deducting a small administrative fee for their services. However, after a few months, the agency either failed to find a tenant or found a tenant but did not remit any cash back to the unit owners. The unit owner, the landlord, would apply to the Ontario Rental Housing Tribunal to evict the agency and try to recover vacant possession of the rental unit, hoping to either rent it out themselves or find a different management company. Unfortunately, these applications were always doomed to failure. The unit owner was the landlord as defined by the TPA, but the agency was not a tenant as they did not occupy the unit. The unit owner had put the agency in his place as his surrogate, and abrogated his rights as landlord in favour of the agency for the certainty of a fixed income, having no regard to the mechanics of renting the unit himself, and having the relationship as owner of the unit be carefree in all respects. If the agency as the owner’s surrogate or agent was to make an application as a Landlord against a human tenant for non-payment of rent, it is conceivable that this application could proceed, subject to the definition of

Managed Quality The ACMO 2000™ quality of service certification program offers condominium corporations an assurance of consistent, high-quality service. ACMO 2000 firms are: • CERTIFIED by CMSC, with operational systems that meet ACMO 2000 standards. • COMMITTED to customer service through the company-wide use of written procedures. • EFFICIENT AND EFFECTIVE in their internal structures and service operations. • AUDITED on an ongoing basis by the Business Development Bank of Canada. • A NSWERABLE to the CMSC complaints procedure in the event of unresolved disputes.

Assured Results CMSC t. 905-826-6665, 1-800-265-3263 e-mail: cmsc@acmo.org web: www.acmo.org

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Barristers and Solicitors

CONDOMINIUM SECTION Jones, Rogers LLP is a full service business law firm with a specialty in condominium law representing many condominium corporations in Toronto and the GTA. We work closely with our clients to find practical, cost effective solutions to problems. Armand G. R. Conant Mary G. Griffith Jeffrey M. Warren Tiffany Little (Litigation) Suite 1600, 155 University Avenue Toronto, ON M5H 3B6 Tel: (416) 361-0626 Fax: (416) 361-6303 Email: conant@jonesrogers.ca www.jonesrogers.com

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Landlord in Section 1 of the TPA. However, that’s quite a different story. The Tribunal does not adjudicate commercial contract disputes. The owner wanted vacant possession of the unit, as he claims that the agency was not paying him the rent to which he was entitled, and that he would like to take over the renting out of the unit on his own. While these unit owners were often angry and felt that they were without remedy if the Tribunal would not provide one, perhaps their remedies can be found at the Small Claims Court or through an application to the Superior Court. It can be confusing in law trying to sort out the distinction between who is the landlord, or the landlord’s agent, versus the property management company operating on behalf of the board and the unit holders. For instance, suppose the board authorizes the property management company to have a fire safety company enter each unit every 6 months to check for the proper functioning of the smoke and carbon monoxide detectors. The fire safety company enters each unit by knocking on each door…listening for a response and if hearing none, enters using a master key. The tenant comes home to find a note from the fire safety company, but is furious that the landlord didn’t give him 24 hour written notice as required by the Tenant Protection Act. Is the landlord in breach of his obligations under the Act? Is the property management company suddenly the landlord, or an agent of the landlord? Probably not, and it’s likely the tenant has no recourse, but the answer is not certain and is subject to litigation. If the condominium corporation padlocks the doors of a unit with an order of the Court for unpaid monthly maintenance fees, can the unit owner…the landlord…be said to have locked his tenant out of the unit in contravention of the TPA? Could that tenant make an application before the Tribunal claiming to have been locked out? It’s likely such an application could be made, but the Tribunal’s order to have the landlord allow the tenant back into the unit would be frustrated by the lawful actions of the board hav-

It can be confusing in law trying to sort out the distinction between who is the landlord, or the landlord’s agent, versus the property management company operating on behalf of the board and the unit holders. ing seized the unit owner’s unit until such time as the lien has been cleared up. Condominium owners should be aware that when a tenant causes problems, or doesn’t pay their rent, the corporation will continue to expect monthly maintenance fees be paid, and can

register a lien against the unit if the owner doesn’t pay up. For the owner to evict the tenant for non-payment of rent or for conduct issues, the procedure at the Ontario Rental Housing Tribunal can take upwards of three months. That’s a lot of time without any rent coming in, let alone the time it takes to re-rent it. The most important advice I can give is to check prospective tenants out carefully, get a first and last month’s rent deposit, use a proper lease form in which you obligate the tenants to comply with the condominium’s declaration and bylaws, find out where they work, get references from previous landlords, and trust your gut instinct before allowing them into your new investment property. If a tenant is even one day late with the rent, serve a Tribunal form N4 to get the process moving. And understand that there may be no simple answers as you turn from a two-party relationship into a tripartite arrangement where each party has distinct rights and obligations that may conflict with the other.

O U R E X PA N D I N G CONDO PRACTICE GROUP

E X T E N D S A WA R M

TO NEW BUSINESS For Practical Solutions

MILLER THOMSON

LLP

Barristers & Solicitors, Patent & Trade-Mark Agents John A. (Sandy) Kilgour skilgour@millerthomson.ca

Audrey M. Loeb aloeb@millerthomson.ca

Denise M. Lash dlash@millerthomson.ca

Warren D. Kleiner wkleiner@millerthomson.ca

Patricia M. Conway pconway@millerthomson.ca (Litigation)

Anthony D. Scane ascane@millerthomson.ca (Construction)

www.millerthomson.com

Tina Flinders tflinder@millerthomson.ca (Law Clerk)

416.595.8500 ext. 2968 1.888.762.5559 ext. 2968

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Gardiner Miller Arnold LLP Barristers and Solicitors

GMA - The Condolawyersâ&#x201E;˘ (Winning Condominium Law Solutions) We led the battle for improvements to the new Act and Regulations Our standard of excellence focuses on practical legal solutions for Condominium Boards J. Robert Gardiner Mark H. Arnold Gerald T. Miller Christopher Jaglowitz

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Tenants Must Comply with

The Condo Act

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BY DENISE LASH, B.SC, LL.B., ACCI, FCCI MILLER THOMSON LLP

could terminate the tenancy regardless of Landlord and Tenant laws.

Owner fails to pay common expenses –

oards of Directors have often asked me as to how to restrict owners from renting their units. The common question is “Can a Corporation prohibit or restrict owners from having tenants in a residential unit?” The answer is NO. Any individual who purchases a unit has the right as an owner of that unit to rent the unit to a tenant if he or she chooses to do so.

Tenant must follow the same rules – The tenant, however, is obliged to act in the same manner as an owner by complying with the Condominium Act, the Declaration, the By-laws and the Rules of the condominium corporation. If the tenant fails to abide by the condominium documentation, the matter may proceed to court, and the court

If an owner of a unit which is rented fails to pay common expenses on time, the condominium corporation can collect the common expenses from the tenants rent.

Owner’s Obligations – The Condominium Act requires owners who rent their units to provide the condominium corporation with a copy of the lease or a summary of lease and the address of the owner to which notices can be sent by the corporation. This will ensure that those owners are kept apprised of all meetings, budget changes (which will contain information as to increases or decreases in common expenses), new rules and other matters which may affect the owner’s unit.

What Corporations can do –

poration, the property manager or the board of directors will be able to deal with the tenant directly. Many condominium corporations have “tenant packages” that include information about services available in or near the condominium. They also include the condominium documentation. Informing tenants as to what their obligations are from the outset may reduce the likelihood of tenants breaching the condominium documentation merely on the basis that “they didn’t know”. Developing leasing policies by introducing these into rules may be a means of monitoring the rentals in the condominium. The rules can include such things as obliging an owner to complete a “tenant information form” providing details as to the names and number of occupants in the unit. Taking the initial steps to inform tenants and owners as to their rights and obligations, hopefully, will assist the corporation in maintaining a community enjoyed by all the residents, tenants and owners alike.

Once notification is provided to the cor-

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SHORT-TERM LEASE OF RESIDENTIAL UNITS

Myth or Reality BY ARMAND G.R. CONANT, B.ENG, LL.B., DESS (SORBONNE)

JONES ROGERS LLP

To deal with their “silent” declarations some corporations have enacted rules to prohibit short-term or transient leasing. The question was whether or not these rules were enforceable.

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he short-term lease of units has become a hot issue for some corporations. The problem has arisen because declarations have not specifically allowed or prohibited short-term leasing and both the Condominium Act, 1998 (the “Act”) and the previous Act are silent. As a result, while owners have a clear right to lease their units, corporations have believed that it was implicit that leases would be long-term. Some investors on the other hand have interpreted this lack of prohibition as the right to lease on a short-term or transient basis, in the form of executive-suites or hotel-style rentals. The provisions in declarations that corporations have relied upon support of their position are: (a) units can only be used as “private single family residential units”; and (b) residential units cannot be used for commercial purposes. However, there has been no determinative court decision on whether or not these provisions, by themselves (i.e. in the absence of a rule), are sufficient to prohibit shortterm leases. Clearly where short-term leasing is specifically permitted or prohibited in the declaration, there could be no argument. It has been the writer’s experience that practically all corporations do not wish short-term leases because they have the potential of greatly altering the atmosphere of the condominium, not to mention the possible increase in maintenance and repair costs and insurance risk. To deal with their “silent” declarations some corporations have enacted rules to prohibit short-term or transient leasing. The question was whether or not these rules were enforceable. Corporations can now rely on at least four court cases that have held that a rule that prohibits leases of less than six months in a calendar year can be enforceable (see MTCC No. 850 v. Oikle; MTCC No. 1170 v. Zeidan; Skyline Executive Properties Inc. v. MTCC No. 1280 and Skyline Executive Properties Inc. v. MTCC No. 1385 (“MTCC 1385”). In the MTCC 1385 case, Skyline leased out its clients’ units for short periods of time. The corporation’s dec-

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laration was silent except that it stated that units were to be used only as private single family residences. However, it had enacted a rule prohibiting more than one tenancy shorter than six months in a unit in a year. Skyline argued, amongst other things, that since section 7(4)(c) of the Act states that a declaration may contain restrictions with respect to leases, then any rule dealing with leasing would by its very nature be inconsistent with the declaration and thus invalid. In his written reasons Justice Hoilett quoted from the Zeidan decision that: â&#x20AC;&#x153;The use of the units in question as accommodation for short-term transient guests is a use that does not violate the declaration, which requires the units to be used as residential dwelling unitsâ&#x20AC;?. Thus, although it is not clear, it would appear that a declaration on its own with that type of language may not be sufficient to prohibit short-term leases. The court also relied on Zeidan

to hold that while the provisions affecting units and owners compose a hierarchy, with the Act at the top, followed by the declaration, by-laws, and finally by the rules, this hierarchy does not prevent a rule from dealing with a subject that could have been dealt with at a higher level of the hierarchy but was not. In other words, the fact that a rule cannot be inconsistent with the declaration does not mean that it cannot impose restrictions that go beyond that provided for in the declaration, so long as it meets the criteria of Section 58 (e.g. it is consistent, and it is for the promotion of the safety, security and welfare of the owners and the corporation, etc.). Justice Hoilett also repeated the principle set out in YCC No. 382 v. Dvorchik that a court should not substitute its view for that of the board of directors on the wording of a rule, but rather that in the absence of what is clearly unreasonable, deference should be paid to the rules created by the

board. In the end, Justice Hoilett agreed with the decision in Skyline V. MTCC 1280, which dealt with the same issues (and interestingly enough in the same complex), and decided that the rules prohibiting short-term hotel-like use were reasonable and did not contradict the Act or the declaration and were valid and enforceable. Other issues were before the court, such as the appointment of an administrator to run the corporation, but that is for another article. MTCC 1385 was not appealed on these points (it was appealed on the issue of the appointment of the administrator and Skyline lost that appeal). So it should now be clear to investors that short-term leases can be validly prohibited by the rules. So where does the condominium industry go from here? For the future, developers should insert in their proposed declaration (and disclosure statement) a clear and unequivocal provi-

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sion that either prohibits or allows short-term leases. Then there can be no argument as to the expectations of purchasers. For corporations with the more common declarations, until there is a different decision by the courts they should not rely on the “private singlefamily residence” provision of their declaration. They must either amend their declaration appropriately, which we all know is extremely difficult, even with the reduced voting requirement under the Act, or pass a clearly worded and properly enacted prohibitory rule, but one that does not unnecessarily restrict of the rights of owners to lease their units. Of course the use of a rule is less than a perfect solution because, as in the Skyline case, some investors may own so many units that they could carry the vote (in person or proxy) to elect a “sympathetic” board, which would either purposely not pass a prohibition

rule, or repeal one that exists, or enact one that specifically permits short-term leases. In such a case the other owners would have to seek court intervention and possibly have an administrator appointed to run the corporation, as was done in MTCC 1385. For those who wish to purchase a unit, read the declaration and rules carefully so that you are not surprised later. Until the four cases are overturned in a court, if condominium investors, owners, and corporations remember the implications of these decisions, they should be able to make informed decisions that will serve each of their interests without the hassle and expense of disagreements that necessitate turning to the courts.

numerous condominium corporations in Toronto and the GTA. Armand is a member of the Board of CCI (Toronto), Chair of its Legislative Committee and a member of CCI National’s Government Relations Committee. He has written articles for such publications as ACMO’s “CM Condominium MANAGER”, “thecondovoice”, “Humber Happenings”, and the “Condominium Law Letter” and he has lectured before ACMO, and at the annual ACMO/CCI Conference and at Humber College. Armand would like to thank Jill Pinkus, law student with his firm, for her assistance with this article.

Armand G.R. Conant, B.ENG, LL.B., DESS (Sorbonne), is head of the condominium department of the law firm of Jones, Rogers LLP and represents

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The Owner / Tenant

Wars There are a number of things a condominium corporation can do to ease the situation between owners and tenants.

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ondominiums have become an increasingly important source of rental housing in our economy. During the early 1980’s particularly, incentives were provided to increase the rental housing stock. In some instances, this resulted in condominiums which were 80% or more, investor-owned. As investors have sold their suites over the years, these percentages have dropped in many buildings, but most condominium complexes — whether townhouse or high rise — have some percentage of rental units.

Tenants have, in many cases, become a focus of discontent and discrimination. Owners are heard to say things like “If there were more owners in the building, our vandalism would be way down” or “tenants just don’t care about the property in the same way as owners do”. In my experience, this just ain’t so! Many tenants are longterm and have just as much interest in their homes as owners do. I have managed buildings that are virtually 100% owner-occupied and have still had damage and vandalism caused by the residents. There are a number of things a condominium corporation can do to ease the situation between owners and tenants: 1. Treat every resident equally in the day-to-day running of the building. This is their home, be they owner or tenant. 2. Communicate with investor/owners. Use your budget and general meeting mailings as an opportunity to do this. Tell them about current issues in the building. Help them to understand their responsibilities as owners. If an investor/owner

feels “connected” with the building, he or she is likely to be more careful when renting out the unit. If the suite is managed by an independent management company, establish good relations with this company and discuss problems with them.

at an early stage. 6. Make sure that tenants get the Corporation newsletters, as well as owners. Encourage them to report problems and help them learn when to call their Landlord and when to call on the condominium management for assistance.

3. Have every tenant sign the required “Tenant Declaration” that requires them to abide by the Declaration, By-Laws and Rules of the Corporation. Keep this in the corporation’s files.

The more tenants feel a part of the community, the stronger the community will be as a whole.

4. Consider providing a “New Resident Package” and possibly doing an orientation with each new resident to help them adjust to their new community. This can be a good opportunity to assign keys or access cards, update the entrance boards, obtain resident information and get tenant declarations signed.

Donna J. Farr, RCM, is a Senior Property Manager with Brookfield Residential Services Limited, with 20 years experience in the condominium industry. She is a Past Director of the Association of Condominium Managers of Ontario (ACMO).

5. If a tenant does not follow the rules of the Corporation, advise the owner promptly by a telephone call or by sending him or her copies of letters. Get the owner actively involved in resolving the problem

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Tenant Issues

Notify Owner about Tenantâ&#x20AC;&#x2122;s Default BY PATRICIA CONWAY

MILLER THOMSON LLP

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he Condominium Act 1998, makes unit owners primarily responsible for ensuring that their tenants comply with the condominium declaration, bylaws, and rules. But practically speaking, it is difficult, to cause an absentee unit owner to deal with the fractious tenant, who is causing a disturbance within the community.

The condominium rules generally recognize this reality, setting out a comprehensive tenant policy. Section 83 of the Act, and often the rules, require the unit owner to file a copy of the lease with the management office, and requires the tenants to register with the management office. Ideally, the declaration should also require tenants to sign a document acknowledging that they have received, read, and agreed to be bound by the rules. Many absentee owners would like this to be the end of the road for their responsibility for their tenants. That cannot be. The unit owner must be kept involved, and informed, must be notified consistently concerning tenant problems. The tenant’s primary legal relationship is with his landlord, and the landlord has remedies under the Tenant Protection Act, to deal with the tenant who is in breach of the lease (a lease which should provide that breach of the condominium rules is a breach of the lease).

A recent case in the Ottawa Superior Court highlights how important this is to the condominium corporation to ensure that it is indemnified for the legal costs incurred in enforcing the condominium documents against tenants. The recent case was Carleton Condominium Corp. No. 55 v. Lagace et al. The tenants in this unit were consistent in not complying with the condominium’s rules with respect to parking. Initially, the owners were notified of these problems. They hired an agent to manage the unit. They notified the condominium corporation of this. As problems continued with the tenants, the condominium corporation sent letters to the tenants and to the agent. However, ultimately, when the agent failed to act, the condominium corporation dealt with the tenants alone and ultimately started an action in the Superior Court against the tenants to enforce the rules. The tenants absconded. The corporation had achieved its

goal, but was left with legal costs. The Corporation tried to recover the cost from the unit owners, relying on the usual indemnification clause in the declaration. At this point, the importance of keeping the owner involved became evident. The owners pointed to the fact that when notified, they acted promptly. They maintained that they themselves could and would have solved the tenant problem at much less expense. The condominium corporation argued that the owner had primary responsibility for ensuring compliance by the tenant and was therefore responsible for the costs of obtaining compliance. The corporation also argued that the agent appointed by the owners had not taken the necessary steps. The court arrived at a compromise. It agreed that the owner was responsible for the actions of the tenant, but noted that the wording of the Condominium Act states that the owner is obliged to take “all reasonable steps”

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to require the tenant to comply. The court found that notice to their agent was also considered a notice to them, but when the condominium corporation proceeded with an action without notifying either the owners or their agent, the condominium corporation precluded the owners from taking reasonable steps. In the result, the corporation recovered only half of its costs. This result can be avoided by instituting a few practice policies: any letter to the tenant should be copied to the owner or the owner’s agent. Before any legal proceedings are commenced, there should be a specific notice to the owner, advising that legal proceedings will be commenced, and the owner will be held responsible for the costs, if the problem is not rectified within a specific period of time. When a court application is launched, the owner should be named as a necessary party, and costs should be claimed against the owner as well as the tenant.

What if the owner, so notified, speaks with his tenants and comes back to management, denying that his tenant is causing a problem? If the owner disputes a provision contained in the Corporation’s declaration, by-laws or rules, a court application is no longer open, since the owner has become involved in a dispute with the corporation. Section 132 of the Condominium Act requires that such a dispute be submitted to mediation and arbitration. Obviously, this may be an undesirable result, especially when you’re dealing with the tenant who is causing a nuisance. Having a Mediation and Arbitration Bylaw in place is critical at this point. The bylaw will provide that the unit owner must split the cost of the mediation with the condominium corporation. Faced with such an expenditure, the owner is likely to decide that cooperation with the condominium corporation is the better course.

What happens if the owner does cooperate, starts an application to evict the tenant under the Tenant Protection Act, and either fails, or is faced with an appeal? The condominium corporation decides that it cannot wait, and proceeds to court. Is the owner liable for the costs, or has the owner taken “all reasonable steps” to secure compliance, and thus complied with its legal obligations, so that costs will not be awarded? That question has not yet been decided by our courts. In the writer’s view, however, the owner’s primary liability for the conduct of his tenant, and the fact that the owner has benefited in the form of rent, would argue that, notwithstanding his best efforts, the owner should be on the hook. Stay tuned to see if the court agrees.

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Dealing with Tenants BY J. ROBERT GARDINER B.A., LL.B., ACCI, FCCI Many Scenarios Landlords, tenants and condominium corporations often fail to appreciate significant implications governing their relationships. Tenants tend to breach the declaration, by-laws and rules more frequently than do owners. While noise disturbances, other nuisances, parking and pet problems tend to account for a majority of the non-compliance situations lawyers encounter, we have had our full share of unique cases. A flabby flasher (to girl guides on Wednesday nights) moved out when he saw his physique on video tape. A sauna defecator was toilettrained by a judge. A sodomiser and his boyfriend (on a balcony opposite a 24

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television newsroom) was shamed when confronted with the hard evidence. A scribe of racial hatred epithets against his own tribe has been relocated to government-run housing in Kingston. We have had our fair share of murders, marijuana grow-ops, meth labs and houses of ill-repute in luxury condos, to mention a few.

Summary of Lease Section 83 of the Act requires the landlord to notify the corporation that the unit is leased and to provide tenants’ names and the landlord’s address within 30 days of any new lease, renewal or

termination. The owner must provide to the corporation a copy of the lease, renewal or termination document (or at least a Form 5 (Summary of Lease or Renewal) attached to Ontario Regulation 49/01). The landlord must also provide to the tenant a copy of the condominium’s declaration, by-laws and rules. The corporation must maintain a record of such lease notices (if only to determine who is a non-resident owner who therefore cannot vote for the owner-occupied director).

Tenancy Rules Most declarations require the landlord to provide to the corporation a copy of

the Tenant’s Acknowledgment signed by the tenant, requiring the tenant to comply with the corporation’s declaration, by-laws and rules and the provisions of the Act. A rule normally requires the tenant and other residents to complete a Resident’s Information Form providing particulars about residents’ names, children’s ages, any special medical or emergency requirements, car registration particulars and information about their pets. A well-drafted set of rules will require that no person may move into a unit except upon delivery of those documents to the property manager. A rule may prohibit new owners and tenants from accessing the moving elevator and obtaining an access card, except upon registration with the property manager and making arrangements to book the moving elevator well in advance of the moving date; a noncomplying tenant may be designated as a trespasser. Some progressive condo-

miniums provide a new Residents’ Information Package highlighting various rules and other criteria.

Owner’s Alteration Agreement Compliance A rule may require inspection of the owner’s unit before occupancy by a new owner or tenant, to ensure compliance at the unit with the requirements of the Act and condominium documents. That enables the property manager to highlight in the status certificate any outstanding breaches or payments, whether or not an owner’s alteration agreement is applicable and whether any common elements alterations are contrary to the declaration and s. 98 of the Act. A unit inspection (when permitted to carry out a duty of the corporation or when otherwise required) may disclose various types of breaches.

Attornment of Rents Usually, declarations contain a provision confirming that a tenant is not obligated to pay common expenses, but s. 87 of the Act provides that the corporation has the right to attorn rents owing by a tenant to the landlord unit owner in arrears of payment of common expenses. In that scenario, the corporation can give an attornment of rent notice to a tenant (with a copy to the landlord at the corporation’s address of record) by pre-paid mail, requiring the tenant to pay directly to the corporation the tenant’s rents until the owner’s arrears of common expenses, interest and reasonable costs have been paid in full to the corporation. The landlord is prohibited from penalizing the tenant for doing so. The corporation’s attornment rights supersede those of any encumbrancer of the unit.

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Tenant’s Insurance All unit owners should obtain a comprehensive condominium insurance policy providing numerous forms of protection. However, tenants are in a particularly vulnerable situation, because condominium declarations usually do not shelter tenants (as they do owners) under the corporation’s insurance policy as named insureds protected by a non-subrogation clause. If a tenant causes a 10-storey water leak, the corporation’s insurer will likely hold the tenant responsible. Tenants should consider their numerous types of risks and should obtain their own tenant’s comprehensive general insurance policy, including public

common elements, and damage caused by not only tenants and residents, but also by their visitors and guests. The owner may be held liable for damage to his/her own unit, other units and the common elements in cases where deductible amounts may be as high as $25,000. Insurance deductible coverage is a good investment for both the landlord and the tenant.

Tenants’ Rights Restricted Tenants and other residents do not have owners’ rights to receive notice, attend and vote at meetings of owners with respect to the business of the corporation.

dog, cat or other pet upon the premises. On the other hand, a number of condominium declarations contain valid “no pets” clauses. In our firm’s precedent case, MTCC 949 v. Irvine, the court held that a valid “no pets” declaration provision supersedes s. 15 of the TPA, with the result that, unlike a noncondominium apartment landlord, a condominium (and the unit’s landlord) can require a tenant to remove his or her pet. Landlords who lease out their units in “no pets” condos should protect their right to avoid in-unit damage and pet nuisances by inserting an appropriate provision in their leases.

Provisions can prohibit non-residential uses of dwelling units, Transient tenancies, lodging and boarding houses, partitioning of units and structural alterations. liability coverage, property damage coverage and contents insurance, amongst many other coverages. The landlord should insist that the tenant obtain such insurance, provide a certificate to the landlord upon commencement of the lease and annually thereafter, add the landlord as a named insured and include a clause giving notice to the landlord of cancellation of the policy at least 30 days in advance.

Insurance Deductible Section 105 of the Act provides that if the tenant or a resident, with the owner’s knowledge, or the owner causes damage to the unit, the greater of the cost to repair the damage or the amount of the applicable insurance deductible becomes a common expense payable by the unit owner, subject to a lien. Those circumstances may be extended by a by-law, apparently including damage to other units and 26

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Tenants and residents are not entitled to sign a requisition, nor can they validly sign a proxy form for an owners’ meeting as the proxy grantor. The owner could sign a specific proxy form for a particular meeting permitting the tenant or any other person to act for the owner at such meeting. The owner can also sign a power of attorney authorizing any such person to act as the owner’s attorney pertaining to matters affecting the condominium and the unit (subject to such limitations as the unit owner deems appropriate). Sometimes owners appoint rental managers to handle the rental, repair and management of the owner’s unit.

No Pets Section 15 of the Tenant Protection Act, 1997 (the “TPA”) provides that “no pets” provisions in a tenancy agreement are void (except dangerous pets or those causing health problems), which effectively allows a tenant to keep a

Superintendent’s Suite Often condominiums provide a suite to their superintendent as part of his or her employment. We fired a superintendent and terminated his lease of a malodorous superintendent’s suite which was waistdeep throughout in resident’s old garbage, filth and some feces. He sued for wrongful dismissal, wrongful termination of his lease and breach of human rights because of his mental disability. He informed CCRA that the Corporation had under-remitted for the employee benefit allocation applicable to his super’s suite, claiming that it had a higher fair market value. We won three separate legal proceedings, but finally settled to avoid a human rights hassle. All proceedings at the Ministry of Labour, the Ontario Rental Housing Tribunal and CCRA were freely-available to this superintendent, but the defending Corporation incurred substantial costs to win.

Termination of Lease and Employment

superintendent’s employment which deserve careful consideration. Often condominiums fail to establish a Superintendent’s Suite Lease addressing a number of important landlord-tenant issues. The Superintendent’s Suite Lease should be separate from the employment contract, since the lease should address an extensive range of separate rights under landlord/tenant law, while the employment contract should address contract law considerations applicable to employment and its termination. However, both the lease and employment agreement should be connected to each other by a cross-collateral clause providing that breach of either document results in deemed breach of the other document. It is essential that the condominium give proper notice of termination in the precise manner required by the TPA, as indicated in our firm’s precedent case, Daley v. YCC 531. The Daley case confirms a condominium’s right to expeditious recovery of the superintendent’s suite, because it must house the next superintendent who

Employers should require superintendents to enter into a specialized form of Superintendent’s Suite Lease containing a number of condo- and super-specific clauses. Section 68 of the TPA provides that unless otherwise agreed, a tenancy agreement pertaining to the superintendent’s premises terminates on the day on which the employment of the tenant is terminated and the tenant must vacate the superintendent’s premises within one week after the tenancy is terminated. No rent may be charged during that one week period. Section 80 of the TPA enforces that provision by allowing a speedy Application to the Ontario Rental Housing Tribunal. It is crucial that the appropriate procedures and forms be carefully followed in order to avoid many disputes pertaining to termination of such a tenancy. Of course, many collateral issues arise at the time of termination of a

plays an important role to serve residents’ needs and provide emergency protection.

A Range of Remedies A number of new provisions can be inserted into the corporation’s by-law, including occupancy standards restricting the number of persons per designated sleeping area and imposing on the owner additional costs of maintenance, repairs and utilities applicable to excess occupancy of the unit. A carefully-drafted private, single family residence rule can comply with the Supreme Court of Canada’s criteria. Provisions can prohibit nonresidential uses of dwelling units. Transient tenancies, lodging and boarding houses, partitioning of units and structural alterations. A range of legal remedies may be available in addition to the usual expected provisions contained in the Act and the corporation’s declaration, by-laws and rules. Typically a rule

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When nuisances occur, the property manager will normally respond to a complaint from a neighbour by writing a demand compliance letter to the offending tenant, with a copy to the owner. prohibits activities which may give rise to an increase in the corporation’s insurance premiums or deductibles, or breach of any federal, provincial or municipal legislation (such as the Criminal Code, Human Rights Code, Building Code, Fire Safety Code, municipal property standards by-law and many others).

Demand Compliance Letter When nuisances occur, the property manager will normally respond to a complaint from a neighbour by writing a demand compliance letter to the offending tenant, with a copy to the

owner. If the offending resident fails to comply, the manager should obtain either sufficient incident reports from security staff, or signed and dated memos from neighbours detailing the person and unit involved in causing the nuisance, the date, time, place and details as to the specific nature of the harm caused and the damage done. Photos and video tapes, properly identified, can provide good evidence. Although the corporation has a duty to take all reasonable steps to ensure compliance by owners, tenants and others with the corporation’s condominium documents, it would normally only undertake mediation, arbitration or apply for a court Order if it has well-

documented evidence. If the board fails to enforce compliance with its condominium documents, the applicable unit owner or other unit owners may claim defences of waiver, acquiescence, laches (delay), estoppel, detrimental reliance or administrative discrimination in subsequent cases. The board should pass a resolution determining that such conduct constituted a nuisance. If the offender fails to rectify the problem, the property manager should provide written instructions to the condominium’s lawyer, together with all relevant correspondence, so the lawyer can forward a demand compliance letter to the resident and to the unit owner.

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90% Effective Such demand compliance letters are typically effective over 90% of the time (except when residents are obviously crazy or unduly stubborn). The lawyer’s demand compliance letter will often be 5 - 8 pages long, detailing the specific abuses and informing the resident of the applicable Act and condominium document provisions. It is harder for the lawyer to help corporations which still only have 3 - 5 pages of declarant’s simplified rules.

damages and costs recovery implications of s. 134 (5) of the Act. The demand letter may allude to mediation and arbitration as not being applicable, unless the resident and owner notify us within 15 days of any “differences” they have with such declaration, by-law and rule criteria. In some cases, we serve a Mediation Notice, together with our letter when that appears to be the appropriate remedy, in order to expedite the 60-day period to choose a mediator, as referred to in s. 132 of the Act.

Two Strikes and You’re Out Section 134 (4) of the Act provides that a lease of a residential unit cannot be terminated by the court unless the tenant has breached a court Order issued pursuant to s. 134 of the Act, or if the tenant has failed to pay attorned rents to the condominium when required to do so pursuant to s. 87 of the Act. That has been a powerful remedy in several instances — such as the time we evicted a motorcycle gang whose threats and continued disturbances

Many corporations fail to pass rules which address topics such as harassment of staff, breach of human rights scenarios, trespass remedies against residents and outsiders… etc.

Many corporations fail to pass rules which address topics such as harassment of staff, breach of human rights scenarios, trespass remedies against residents and outsiders, 25 - 30 parking rules, 20 pet rules, a hardwood floor rule, etc. The demand letter should be addressed to both the unit owner and tenant. It may point out the duty of the board to enforce compliance pursuant to s. 17 (3) of the Act, the respective obligations of the owner and resident, their duty to comply with specified provisions set out in the Act and the corporation’s declaration, by-laws and rules, and the condominium’s right to enforce compliance as referred to in s. 119 of the Act. A number of different provisions may be applicable in the circumstances. Often other legislation affords a remedy. Typically, the declaration contains an indemnification provision and a full costs recovery rule can be referred to. We also inform the resident and unit owner about the inexorable enforcement process (preferably based upon s. 134 of the Act), with the full

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Lien Remedy Although condominiums are required to mediate and, if necessary, arbitrate disagreements pertaining to the declaration, by-laws and rules with unit owners, when tenants or other persons are involved, it appears that s. 134 (2) and s. 132 (4) of the Act are not applicable. Therefore, condominiums are entitled to bring an expeditious Application to the Ontario Superior Court of Justice to enforce a tenant’s compliance with the Act or a declaration, by-law or rule provision, without engaging in mediation or arbitration. That is particularly beneficial, because our firm’s precedent case of MTCC 1385 v. Skyline Executive Properties has resolved conflicting interpretations of s. 135 (5) of the Act, by confirming that if the corporation receives any award or damages or costs from the court, the corporation can treat as common expenses, all actual costs incurred by the corporation in obtaining the Order. In the event of non-payment, the corporation can register a lien against the unit.

despite a court Order had intimidated their neighbours.

Tenant’s Guide to Condo Living For further information, check out the excellent Tenant’s Guide to Condo Living (CCI) available free in hardcopy to CCI members, or downloadable from www.ccitoronto.org/resources.

*J. Robert Gardiner is managing partner of Gardiner Miller Arnold LLP, practicing condominium law at Toronto. Bob is a director and pastPresident of the Canadian Condominium Institute (Toronto & Area) and is an honorary member of the ACMO Associate’s Executive Committee.

Exciting New Changes to the CCI National Website At the recent CCI- National semi-annual meetings in Barrie, the National Board approved changes to the CCI web site. As a result, there will be several exciting changes to the site (www.cci.ca): 1. A ‘Discussion Board’ has been created. This is accessible to everyone using this site. It enables you to create, enter or simply monitor discussion on condominium matters in Canada. CCI-National is hoping this will be a great help to all those in the condominium industry. To enter, access through the “Forum” icon. You will note this is searchable by subject. As time progresses, CCI-N shall draw from this and compile the more frequent questions and answers in the format of an FAQ but this is down the road a little. 2. The site is being modified into differing sections. Here, the general public shall have access only to the main body of the site, however, a CCI

member will have further access. Past issues of the CCI-N Newsletter will be loaded onto the site and, over the coming months, legal cases that have been accessed shall also be loaded. This will be a benefit for all CCI members which is not accessible to others. As time progresses, and in response to demonstrated demands, additional information can be provided here to CCI members. For Chapter directors and committee members, there will be a further level of passwords that will permit access to additional information to assist in ‘being in the know’ about activities of the National Board. All CCI Toronto members were issued passwords on the receipts accompanying their 2005-2006 membership renewals.

Continued re-development of the site is expected, with the intent to make it a vehicle that enables more communication to CCI members, a source of data on condominiums in Canada and provide a place for dialogue on events in our industry. Changes and comments respecting the site will be posted by the CCI-National Communications Committee from time to time on the main web page. The aim shall be to keep this as simple as possible while moving ahead with one of CCI’s goals…to continue strengthening our presence as ‘the voice of condominiums”. Feel free to post comments or ask questions in the Forum.

www.cci.ca

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ACMO 2000 A Condominium Management Standards Program for the Future of Condo Living

he ACMO 2000 program was launched in 1999. At that time the International Standards Organization (ISO) had recognized that service industries were capable of developing measurable processes, which resulted in predictable levels of service quality. At the same time the business community at large recognized the importance of achieving service quality. The Association of Condominium Managers of Ontario (ACMO) combined these forces to create the concept of an ACMO-driven quality of service certification program. Why is this program so valuable? ACMO recognizes that the true value to the program comes when clients ask for an ACMO 2000 company to manage their property. ACMO has worked extremely hard over the years to brand the registered condominium manager (RCM), as the top designation in the field. There are now close to 350 RCMs in the province and condo boards have increasingly come to expect management companies to provide an RCM to manage their property. This is because they believe that an RCM has the necessary education and training to ensure the client receives quality service. In the years ahead there will no doubt be a greater demand for individual managers and firms to bring a broader inventory of skill sets and capabilities to meet and exceed customer service expectations. Quality, performance and value will be key elements in service differentiation. As of December 31, 2006, all ACMO corporate member companies will be required to be ACMO 2000 certified. It is ACMOâ&#x20AC;&#x2122;s goal to continually raise the bar for professional and management standards and to have the RCM designation and ACMO 2000 certification become an expectation of condominium corporations and their residents. 32

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â&#x201E;˘

Member News

Welcome to the Following New CCI Toronto Members Corporate Members HSCC # 0445 MTCC # 0764 MTCC # 0837 MTCC # 1101 MTCC # 1120 MTCC # 1231 MTCC # 1239 MTCC # 1470 PCC # 0199 PSCC # 0724 PSCC # 0731 TSCC # 0732 TCCC # 1623 TSCC # 1642 TSCC # 1653 TSCC # 1664 TSCC # 1666 YCC # 0288 YRCC # 0966

Professional Members

Darryl Deen D-Tech Consulting

Kumar Sriskanda Manzoor Khan Channel Property Management Ltd. Victor Chuang Connection Properties Group Lionel Mauer Elljay Condominium Management Colin B. Bogue J. D. Barnes

Spero Christophel Gem Aluminium Manufacturing Ltd. Christie Finkle Heisler Roofing Inc. Vic Arambamoorthy Vics Plumbing & Heating Co. Ltd.

Individual Members W. Chabot

Sponsor (Trade) Members

C. Graham A. Sevilla

John Pasqualone Aragon Building Maintenance

H. Smith

Michael Feltham Aspenwood Floors Ltd.

H. Von Der Lieth

Shannon Williams Carma Industries Inc.

E. White

J. McDonough H. Wloka

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™

Book Review

10 Secrets to Surviving Life in a Condominium Live the dream - not the nightmare Bob and Betty, the main characters purchase their 1st condominium home as they are looking forward to retiring and spending more time relaxing and traveling. They are no sooner unpacked when their dreams were shattered... Don't Get Charlied! Discover the 10 Secrets that will prevent you from "Getting Charlied " by your condominium board. This book is filled with adventure and laughter as Bob and Betty share the messages of what they discover on the road to living the dream _ not the nightmare! Order your copy of 10 Secrets to Surviving Life in a Condominium today and live the dream! Visit www.condocheck.com. Price $19.97 plus taxes and shipping

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The Importance of Being Knowledgeable! As a condominium Director, don’t be caught in a potentially dangerous situation without having taken some care in diligently learning the ins and outs of the Condominium Act, 1998. The sheer volume of chapters and regulations in the Act dictates that directors must read and digest the legislation in order to adequately govern their condominium. How can a Director acquire the skills and knowledge to exercise care, diligence and skill? The answer is through Education… CCI’s courses, seminars and the annual conference!

Promote Your Company Through CCI-Toronto and Grow Your Business Opportunities CCI-Toronto, as the voice of condominiums, provides excellent growth opportunities for the professionals and trades who service Toronto's booming condominium market. Advertising orders for the Annual Professional & Trade Services Directory are now being accepted. Don’t miss out on this once-a-year opportunity! Deadline for submission is November 10, 2005. Please contact Marie McNamee at (905) 852-2802 or email at marie@mcnamee.ca.

Recently had your AGM?? Make sure that all new Directors on your Board have a copy of CCI’s pocket version of the Condominium Act… available through CCI-Toronto. Download an order form from www.ccitoronto.org or call the office at (416) 491-6216. This handy publication is a must at all Board meetings. Please also take the time to inform and update CCI of any changes to your Board so that we may ensure your mailings are directed to the correct individuals within your corporation.

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David F. Alexandor, Q.C. LAWYER

MEDIATOR

ARBITRATOR

Conflict Resolution Consultant _____________________________ •Advice on disputes involving owners, developers, property managers and shared facility condos •Independent investigations and evaluations •Extensive condominium and business experience •Experienced lecturer, trainer, coach, facilitator

_____________________________ Roster Mediator - Toronto Ontario Mandatory Mediation Program ADR Institute of Ontario Ontario Bar Association, ADR Section Member: ACMO and CCI Toronto Ontario Society for Training and Development

______________________________ 90 Eglinton Avenue East, Ste. 420 Toronto, Ontario, M4P 2Y3 P: (416) 483-8600 F: (416) 483-2737 davealex@ interlog.com david@alexandor.com

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Fall 2005

PROVIDING EXCEPTIONAL SERVICE TO THE CONDOMINIUM INDUSTRY FOR OVER 25 YEARS SPECIALIZING IN COMPLETE PROPERTY MANAGEMENT SERVICES: Residential High-rise & Townhouse Condominiums Industrial & Commercial Condominiums Hands-On Management Individually Designed and Tailored To Meet And Exceed Your Communities Needs For more information, please contact: Gary Atkin, RCM, ACCI or Matthew Atkin, RCM, CMOC, ARM, CPM G.S. Atkin Property Management Specialist Inc. One Shady Lawn Court Mississauga, Ontario L5N 1H2 24-Hour Emergency Line (905)-567-6820 Direct Line: (416)-258-6011 Fax: (905)-567-6930 Website: www.gsa-pm.com Email: info@gsa-pm.com

Resource Corner Condominiums in Ontario Mark Freedman and Harry Herzkowitz Law Society of Upper Canada (416) 947-3300 Continuing Legal Education Department

The Condominium Act 1998 - A Practical Guide J. Robert Gardiner Canada Law Books Inc. 1-800-263-2037 (905) 841-6472

The Condominium Act - A Users Manual Audrey Loeb Carswell Publishers 1-800-387-5164 (416) 609-5164

Accounting and Auditing Guidelines for Ontario Condominium Corporations 2001 The Institute of Chartered Accountants of Ontario 69 Bloor St. East Toronto, Ont. M4W 1B3 Tel: (416) 962-1841 or 1-800-387-0735 (ask for Customer Service Dept.)

Buying a Condominium - What you Need to Know (Booklet) - Free copies Ontario New Home Warranty Program Condominium Office 1091 Gorham St. Unit B, Newmarket, Ont. L3Y 7V1 (905) 836-6715 / 1- 888-803-9913

Condominium Buyerâ&#x20AC;&#x2122;s Guide (Booklet) Canada Mortgage and Housing Corporation 1 (800) 668-2642 Website: www.cmhc.ca

Fall 2005

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Condominium Education through Entertainment BY: DENISE LASH, B.SC., LL.B, ACCI, FCCI As you know, CCI is constantly looking at ways to educate board members and members of the public to understand the condominium lifestyle. As CCI members, we know about the importance of education and the impact that this can have on the condominium industry as a whole. One of our challenges has been providing education to those who live in condominiums. Many condominium residents have no concept of condominium life when they initially move into their condominium unit. The focus for those residents was initially on their purchase and the amenities that a condominium has to offer. Rarely do purchasers have an understanding of the role that directors and property managers play in their condominium. The challenge is to educate those residents.

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Fall 2005

And now, the Executive Producer of the show Inside Real Estate, has presented me with the opportunity to host a television show called MondoCondo, which will venture into condominiums to meet the people – the different “characters” – the property managers, the “professionals” (even other lawyers), the trades, the developers, the board members and of course, the residents. As the host of MondoCondo I will draw on the expertise of the condominium industry (including other lawyers) to settle disputes and to provide solutions to both common and unusual problems. MondoCondo will be the first television show ever of its kind, which will reach audiences across Canada and hopefully, in the very near future, North America. The goal of the show is to educate the public through entertainment.

On November 23, 2005, an event for the official announcement of MondoCondo will take place at the York Theatre in Toronto, with attendees from the entire condominium industry, condominium celebrities and the media. Further details on the event can be found on our website www.MondoCondoshow.com., or email us at mondocondo@taylorenterprises.com Sponsorship opportunities for those interested, are also available. I am hoping that this will be an opportunity for me personally to promote both condominium education as well as CCI’s continuing programs and new initiatives. Denise Lash is a condominium lawyer with the firm Miller Thomson LLP in Toronto, Ontario. She has been on the CCI-Toronto Board of Directors since 1995 and currently serves as Vice President.

Check Out Our New Look! CCI Toronto is pleased to announce that our website has been given a facelift! Over the past several months numerous changes have been made to update the content and make the site easier to navigate. Check us out – we’d love to hear your feedback and suggestions for ongoing upgrades.

www.ccitoronto.org

SINCE 1927

CHECK US OUT! www.ccfranzen.com Tel: (416) 366-4975 bavery@ccfranzen.com ●

Fall 2005

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John M. Warren, C.A. Tony Sokic, C.A.

515 Consumers Road, Suite 100 Toronto, Ontario M2J 4Z2

416-502-2201 fax: 416-502-2210 solution@amtca.com website: www.amtca.com

BML

Bonita Management Ltd.

â&#x20AC;&#x153;The Professional Differenceâ&#x20AC;? Specializing in Condominium Townhomes since 1977

Stephen N. Stern, C.R.P.M.

â&#x20AC;&#x201D; MEMBERâ&#x20AC;&#x201D;

PRESIDENT & CEO 505 Consumers Rd., Suite 702, North York ON M2J 4V8 Tel. (416) 491-9009 Fax (416) 491-7990 info@bonitamanagement.com

www.bonitamanagement.com

4OTAL 3ECURITY 3OLUTIONS FOR #ONDOMINIUMS s s s s s

6ISITOR ENTRY PHONES !CCESS CONTROL 6IDEO SURVEILLANCE (ANDS FREE PARKING CONTROL ALARM MONITORING

!NDREW -ACKENZIE $IRECTOR -ULTI 4ENANT 3ECTOR %XPLORER $RIVE -ISSISSAUGA /NTARIO , 7 (

0HONE &AX AMACKENZIE CHUBBSECURITY COM WWW CHUBBSECURITY COM

SUMMA PROPERTY MANAGEMENT PROFESSIONAL PROPERTY MANAGEMENT & CONSULTING "Your condominium deserves personal attention and service."

Ryan B. Stone, CPM President 416.487.5095 (Ext. 1) 416.728.2429 (Cell) propman@summapm.com

www.summapm.com

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Fall 2005

List of Advertisers ACMO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Active Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 A.R. Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Adams Masin Tilley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Bell Express Vu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Bonita Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Brookfield Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Brown & Beattie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 CCF Property Management . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Canlight Hall Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Certified Clean Air Services . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Chubb Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Cochrane Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Condominium Dispute Resolution Centre Inc. . . . . . . . . . . . . 10 Con-Serve Group Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Construction Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 CPL Design Interiors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 David Alexandor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Davroc & Associates Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 D-Tech Consulting / Nexus . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Enerplan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Essential Landscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Fine and Deo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Firenza Plumbing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Firm Capital Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 First Condo Group Limited . . . . . . . . . . . . . . . . . . . . . . . . 8 &14 Gardiner Miller Arnold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Greenwin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Group 4 Falck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Gerald R. Genge Building Consultants Inc. . . . . . . . . . . . . . . 22 GSA Property Management . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Harris Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 ICC Property Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . 23 JCO and Associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 JMCC Cleaning & Maintenance Services . . . . . . . . . . . . . . . 40 Jones Rogers LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Larlyn Property Management Limited . . . . . . . . . . . . . . . . . . 37 Les Consultants Ingenium (Condo Manager Software) . . . . . 37 Maxium Financial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 M & E Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Metro Group of Companies (The) . . . . . . . . . . . . . . . . . . . . . 27 Miller Thomson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Morrison Hershfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Ontario Screen Systems Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Ontario Playgrounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Pacey Dirks and Thiel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 ParkChek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Pro House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Provident Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 RBC Dominion Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Rogers Cablesystems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Ronco Roofing & Sheet Metal . . . . . . . . . . . . . . . . . . . . . . . . 33 Roussell Eavestroughs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Samuel Property Management . . . . . . . . . . . . . . . . . . . . . . . . 41 S.R. Wise Management Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Summa Property Management . . . . . . . . . . . . . . . . . . . . . . . . 40 Suncorp Valuations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Stratacon Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 TPMG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Vero Property Management . . . . . . . . . . . . . . . . . . . . . . . . . 22 Waste Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Wilson Blanchard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

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ATTENTION Advertisers and Writers! Are you interested in advertising or writing for “TheCondoVoice” or the “Professional Services Trade Directory”? WRITING FOR “TheCondoVoice” As a member, are you interested in writing for “TheCondoVoice”? If you are a condominium director and have a unique tale to tell or advice to relay to other condominium boards, please let us know! If you are a professional or trade member offering products or services to condominiums and have a relevant article, let us know! The subject matter should be current, concise and helpful. The topic should relate to the management of condominiums and not be of a commercial nature. Please either mail or email your article to the editor.

INSERTS Inserts can be placed in the envelope containing “TheCondoVoice”. Limited to CCI members only, professionals and trades can supply copies of their flyers and brochures for insertion in an issue. A fee of $600 plus GST will apply.

Condominium Energ y Experts Proudly celebrating our 20th year serving the GTA. • Energy Management Systems • CO Control Systems • Variable Frequency Drives • Snow Melting Control • Lighting • Water • Boilers • Submetering • Billing and Collections • Monitoring Centre and much more... Call today and ask about our free energy audit!

GST must be added to all rates. All enquiries should be directed to the advertising representative, Marie McNamee at (905) 852-2802 or email at marie@mcnamee.ca, or visit www.ccitoronto.org for more information.

™

“TheCondoVoice” is published 4 times per year – Spring, Summer, Fall and Winter, by the Canadian Condominium Institute - Toronto & Area Chapter. Newsletter Directors: Denise Lash/Gina Cody/Henry Cohen/Tom Park Editor: Lynn Morrovat Advertising: Marie McNamee Composition: E-Graphics Publications Mail Agreement #40047005 - Return undeliverable Canadian addresses to Circulation Dept. 2175 Sheppard Ave. E., Suite 310, Toronto, ON M2J 1W8 The author, the Canadian Condominium Institute and its representatives will not be held liable in any respect whatsoever for any statement or advice contained herein. Articles should not be relied upon as a professional opinion or as an authoritative or comprehensive answer in any case. Professional advice should be obtained after discussing all particulars applicable in the specific circumstances in order to obtain an opinion or report capable of absolving condominium directors from liability [under s. 37 (3) (b) of the Condominium Act, 1998]. Authors’ views expressed in any article are not necessarily those of the Canadian Condominium Institute. All contributors are deemed to have consented to publication of any information provided by them, including business or personal contact information. Consider supporting the advertisers and service providers referred to in this Newsletter, recognizing that they have been supporters of CCI. Advertisements are paid advertising and do not imply endorsement of or any liability whatsoever on the part of CCI with respect to any product, service or statement.

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Construction Control Full colour pick up film from OBC of last issue