CONDO BUSINESS

Canada’s Most Widely Read Condominium Magazine

November 2016 • Vol. 31 #8

BUILDING RESILIENCY PM#40063056

A property manager’s guide to flood prevention, mitigation and restoration

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PA R T O F T H E

How climate change could affect maintenance fees P A R T

O F

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Contents

26

Technology Three renewable energy systems

By Dr. Ijaz Rauf

46

Management Prioritizing personal safety

By Lyndsey McNally and Andre LeBlanc

50

A difficult subject: Managing unattended death

By Robert Holbrook

52

Legal Can a condo owners’ meeting be discriminatory?

By Carol Dirks

Security How to interpret incident reports

By Ronald Wells

54

Three ways boards run afoul of their statutory duties

By Sonja Hodis

Development How to optimize generator installations

By Grant Farrow

56

Avoiding headaches

By André Rioux

FOCUS ON: RISK MANAGEMENT

32

Leading causes of insurance claims

By David Outa

36

A checklist for mitigating flood damage

By Randall Linton

40

The out-of-towners

By Quintin Johnstone

DEPARTMENTS

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22

When private interests infiltrate the board

By Josh Milgrom

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EDITOR'S LETTER

Building resiliency Building resiliency has

become shorthand for the ability to withstand and bounce back from the growing number of extreme weather events happening now and forecast for the future as the effects of climate change tighten their grip. And that’s precisely what we had in mind when we selected this as our issue theme.

However, as CondoBusiness was going to press, a number of updates on Ontario’s condo law reforms became available, which are worth pausing to note. In a pre-recorded video message, Minister of Government and Consumer Services Marie-France Lalonde told ACMO/CCI-T Condo Conference attendees that the Condominium Authority of Ontario and Condominium Management Regulatory Authority of Ontario should be up and running with basic services by next summer. What’s more, condominium lawyer Armand Conant, who has been selected to sit on the first board of the Condominium Authority of Ontario, said it’s hoped that the condo law reforms could be proclaimed into force as early as the end of next summer.

The province’s condo law reforms could go a long way toward protecting condominium corporations from some of the adverse events that can befall them, such as disputes and fraud. In that sense, building resiliency might also be applied to the idea of supporting the health and strength of these communities.

For this, CondoBusiness’ annual disaster management issue, we have a trio of articles on preventing, mitigating and repairing water damage. Plus, look for articles on managing unattended deaths, remembering personal safety and how climate change might affect maintenance fees.

And, ahead of the holiday season, lawyer Carol Dirks discusses a recent human rights case in which a condominium corporation was accused of discrimination for holding a special owners’ meeting on a religious holiday.

For a more comprehensive update on the status of Ontario’s condo law reforms, look for our article on the CondoBusiness website. And, as we head into the New Year, expect more coverage from us when the regulations are released for public review.

Publisher Mitchell Saltzman Editor Michelle Ervin Advertising Sales Sean Foley, Stephanie Philbin Senior Designer Annette Carlucci Designer Jennifer Carter Production Manager Rachel Selbie Digital & Sales Coordinator Paula Miyake Contributing Writers Carol Dirks, Grant Farrow, Sonja Hodis, Robert Holbrook, Quintin Johnstone, Andre LeBlanc, Lyndsey McNally, Josh Milgrom, David Outa, Dr. Ijaz Rauf, Andre Rioux, Brian Shedden, Ronald Wells Digital Media Director Steven Chester Subscription Rates Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $10*.

Elsewhere: $12 USA: $85 International: $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca.

Circulation Department Maria Siassina circulation@mediaedge.ca (416) 512-8186 ext. 246 CONDOBUSINESS is published eight times a year by

President Kevin Brown Accounting Manager Samhar Razzak Group Publisher Melissa Valentini

Michelle Ervin Editor, CondoBusiness michellee@mediaedge.ca

5255 Yonge Street, Suite 1000, Toronto, ON M2N 6P4 (416) 512-8186 Fax: (416) 512-8344 e-mail: info@mediaedge.ca CONDOBUSINESS welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs.

Canadian Publications Mail Product Sales Agreement No. 40063056 ISSN 0849-6714 All contents copyright MediaEdge Communications Inc. Printed in Canada on recycled paper.

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November 2016

Condo law reforms to roll out as early as summer

Regs likely to have modest impact on condo purchases

Ontario’s condo law reforms, passed late last year, are expected to start to roll out as early as next summer.

Updates at the ACMO/CCI-T Condo Conference in November clarified the “key elements” of the Protecting Condominium Owners Act to be implemented by fall 2017.

The province of Ontario is planning to license and regulate home inspectors, who would need to be properly qualified and meet minimum standards for home inspection reports, among other things. But what, if anything, would this mean for condominium purchases?

ASHRAE 90.1 adds multi-res lighting proviso Developers of multi-residential buildings can expect more pointed direction on their lighting choices as North American jurisdictions update their building regulations.

The newly released 2016 edition of the ASHRAE 90.1 standard for energy efficiency includes first-time requirements for lighting within dwelling units.

All the Buzz

From the Green Bin

Expert Advice

Social Media

MRCM president named Industry Leader of the Year

CaGBC to launch Zero Carbon Building Standard

Facilities slack in averting bird collisions

Connect with us on

ACMO names Michael Le Page, president of Associa’s MRCM, its industry leader of the year.

The Canada Green Building Council (CaGBC) will launch a Zero Carbon Building Standard in spring 2017.

Fatal Light Awareness Program team members talk about the hazard glass buildings pose to birds.

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ASK THE EXPERT

Could climate change affect maintenance fees?

As the effects of global warming become clear, governments are making changes to building codes to meet this challenge. At the same time, engineering firms are studying what impact the accompanying weather extremes will have on existing buildings. Brian Shedden, a senior building envelope specialist at Entuitive, sheds light on what condo boards should be preparing for now: Summer 2016 was one of the hottest on record in the Greater Toronto Area, with experts predicting summer temperatures could soar to 44 degrees Celsius by 2050. In this rapidly changing climate, the city’s high-rise buildings are also feeling the heat, with the provincial government tightening up the Ontario Building Code to meet new global imperatives.

Increasingly erratic weather has a direct impact on Ontario’s residential building stock. Condo maintenance fees are based on predictable historic norms, stable benchmarks and logical predictions, so what happens when those predictions no longer fit the weather outside the window?

10 CONDOBUSINESS | Part of the REMI Network

Leading engineering firms have been pushing forward with research into the effects of climate change on the industry, including a look at a performance-based approach to dealing with the impacts of extreme weather on buildings.

Buyers, condo boards and residents all need to make sure they’re looking deeper than a building’s surface finishes and amenities when making purchases and planning budgets. With a rapidly changing and unpredictable climate, proper planning is important to avoid costly failures that will impact the maintenance fees and property values.

There are several issues that a rapidly changing and unpredictable climate pose for building resiliency.

In urban centres such as Toronto the main issue is the glass towers — which are basically terrariums. They’re extremely hot in the summer and cold in the winter. This has a huge impact on building performance and now, with energy costs rising rapidly, boards are starting to appreciate what this means for condo corporations. Plus, an uptick in precipitation could mean more flooding.

Heavy rainfall Climate change experts predict an increase in heavy rainfall and storms, which will increase the risk of flash flooding. Flooding could cause issues with basements and parking garages. Storm power outages can be costly for condos — renting a generator on short notice to ensure residents have power can be a costly emergency measure. There are also issues with high winds, although modern condos are usually designed to withstand the movement from wind. Older units require regular inspections to make sure that they are prepared for extremes.

Extreme heat Extreme heat places enormous stress on buildings and future summers are predicted to get hotter still. The U.S.-based Climate Central group has suggested that Toronto will have a similar climate to Miami by 2100.

Glass windows promote solar heat gain and can create a greenhouse effect inside.

This creates heavy energy demand as air conditioning units run non-stop just to keep residents comfortable. Increased stress on chiller units inside buildings means that they may have to be replaced or repaired more often. Heat also causes stress to building materials and ultraviolet damage can affect the look of cladding, again increasing the risk of costly surprise repairs.

Extreme cold and freezing In high-rise buildings, porous materials are particularly susceptible to freeze-thaw. Water easily finds its way into porous materials and cracked or damaged cladding and then freezes. Rapid freeze-thaw cycles can cause materials to expand and shrink repeatedly until the build-up of stress causes fractures and failures. Making sure there is enough put away in a building’s reserve fund is an even more urgent priority.

Another impact is the increased stress put on heating systems within condos not designed with energy efficiency in

mind. Crucial equipment may have to be replaced or repaired more often — again, this is something that condo owners want to pre-empt to avoid any surprise special assessments.

Special assessments aren’t just unpopular with residents; they can also have an effect on the building’s desirability and re-sale value.

Suddenly having nine out of 10 units in a building on the market because owners can’t pay up is the worst-case scenario. It can be easily avoided by careful condo boards and good financial management. If in doubt, contact an engineer.

A lot of this isn’t new information but is only now being put in action by developers, as governments in Canada tighten up building regulations and the impact of climate change becomes inescapable.

In the future, expect much stricter building codes that take into account climate change — both the causes and the effects. The same goes for retrofitting older buildings. T he condos of the future should actively work to reduce greenhouse emissions and climate change costs by being more energy efficient, for example, or employing the latest in technology and materials. It is important for savvy condo boards to get a head start.

As the general public and governments come to grips with the new climate change reality, the condo market will have to catch up too. Who’s going to pay to retroactively fit these tall, glassy buildings that fill cities such as Toronto? How will condo boards plan ahead for the potential side-effects of extreme weather events?

Could Toronto even see a new age of austerity in the condo market?

Likely not. With careful and methodical planning, the majority of corporations and property managers will be well-placed to ride out the worst Canada’s future climate can throw at them. 1 At Entuitive, Brian Shedden is a senior building envelope specialist, delivering assessment and restoration services for a broad range of project types, including condominiums. With a career spanning more than 30 years, Brian provides building condition assessments, performance failure investigations, reserve fund studies and recommendations for restoration and renewal of building envelope systems. He can be reached via http://www.entuitive.com/.

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www.REMInetwork.com | November 2016 11

Can a condominium owners' meeting be discriminatory?

BY CAROL DIRKS

Condominium corporations are a microcosm of society, made up of individuals with

divergent beliefs, practices and needs. What if boards of directors were required to select dates for annual general meetings (AGMs) or special owners’ meetings that all unit owners could attend based on their religious beliefs, family obligations, or other personal needs? This was precisely the issue that the Human Rights Tribunal of Ontario recently considered in the case of Kamal v. Peel Condominium Corporation No. 51.

12 CONDOBUSINESS | Part of the REMI Network

LEGAL

The case In the Kamal case, the board of PCC 51 obtained a condition survey from its consulting engineer indicating that major exterior repairs were urgently needed at a cost of $2 million. PCC 51 only had $200,000 in its reserve fund account. PCC 51 had previously levied a special assessment to raise funds to cover a budget shortfall, which was financially difficult for many owners.

The board of PCC 51 was concerned about the financial impact of levying a further special assessment, and opted instead to look into borrowing the $2 million for repair work. In the end, PCC 51 was able to secure financing on favourable terms so long as the approval, including passing a borrowing bylaw, was completed by the end of the year.

A special owners’ meeting was called for the unit owners to discuss and vote on a borrowing bylaw. The board of PCC 51 made a point of trying to choose a date which would allow owners to attend as the borrowing bylaw would not pass unless

a majority of all units voted in favour. In selecting the date for the meeting, the board specifically sought to avoid scheduling it on Eid-ul-Ahza, an important religious holiday for persons of the Muslim faith within the condominium community.

At the time the meeting packages were mailed out, Eid-ul-Ahza had not yet been declared for those Muslims who celebrate this day based on the moon sighting, as opposed to a fixed calendar date. In the end, for some Muslims, Eid-ul-Azha fell on the same day as the special owners’ meeting.

Given the limitations associated with the financing, the board decided to proceed with the meeting on the scheduled date.

Three unit owners subsequently filed an application with the Ontario Human Rights Tribunal against PCC 51 (who the writer of this article represented) and its property management company. The application alleged discrimination based on the unit owners’ creed due to the holding of the special owners’ meeting on Eid-ul-Azha.

The decision In a decision released in late September, the Ontario Human Rights Tribunal found that holding the meeting on Eid-ul-Azha did not discriminate against the applicants and dismissed all three applications against both PCC 51 and its property management company.

The tribunal rejected the applicants’ contention that the corporation’s decision to hold the special owners' meeting on Eid-ulAzha deliberately targeted owners who were Muslim by excluding them from attending the meeting. Further, the tribunal found that there was evidence of past owners’ meetings held on other religious days, including Hindu holidays. The tribunal also found that PCC 51 had in good faith tried to avoid calling the meeting on Eid-ul-Azha, and that the fact that this religious day fell on the date of the meeting was unforeseen and unintentional.

No disadvantageous impact The tribunal also found that the meeting

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www.REMInetwork.com | November 13 13-02-27 2016 4:39 PM

LEGAL

The tribunal found that the ability to participate in the special owners’

meeting by way of proxy, as opposed to in person, represented reasonable accommodation. did not have any disadvantageous impact on any of the applicants because it did not interfere with their ability to observe the tenets of their faith. Based on evidence concerning the religious obligations of each of the applicants on Eid-ul-Azha, the tribunal held that it was instead other factors within the applicants’ control that interfered with these religious observances.

Even if there was a disadvantageous impact on these three owners because of their creed, there may not have been a finding of discrimination. That’s because the tribunal found that the ability to participate in the special owners’ meeting by way of proxy, as opposed to in person, represented

reasonable accommodation by PCC 51 under section 11 of the code. Accordingly, the tribunal found that there was no infringement of any of the applicants’ rights under the code.

Proxy as reasonable accommodation Importantly, the tribunal’s decision in Kamal v. PCC 51 recognizes that the ability of owners to participate in a condominium meeting by proxy constitutes reasonable accommodation for owners who may be unable to attend the meeting in person for code-related reasons. In addition to religious holidays, there may be many other scenarios where a condominium owner

is unable to attend a meeting for reasons protected by the code, such as child care obligations, or even disability or healthrelated reasons.

In its reasons, the tribunal left open the possibility that a finding could be made that a religious group (or other recognized group protected under the co de) had ex perienced distinct and disadvantageous treatment because of their creed by the holding of an owners’ meeting. For example, if a corporation made a prac tice of c alling ow ners’ meetings on the religious holidays of a specific creed, then it is conceivable that there could be a finding that the

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LEGAL

owners of that creed have experienced discrimination because of their religious beliefs.

However, again, there may not be a finding of discrimination even if holding an owners’ meeting disadvantageously affected some owners because of creed (or other code - related grounds). The Kamal decision suggests there would be no violation under the code as long as these owners were allowed to participate in the meeting and vote by way of proxy.

Notwithstanding the decision of the tribunal in the Kamal case, condominium corporations should strive to respect the individual beliefs and needs of the owners who make up their community.

More specifically, corporations should not to consciously seek to hold owners’ meetings on dates and times that may unfairly limit the ability of some of their members to participate.

There may be circumstances when the corporation should reschedule an owners’ meeting, or at least consider the impact on a particular owner or group of owners. For example, the board of PCC 51 did make an effort to contact other members of the Muslim community after it became aware that the special owners’ meeting was to be

on Eid-ul-Ahza. PCC 51 tried to determine whether the meeting would interfere with any religious rites before the corporation decided to proceed with the meeting as scheduled. The tribunal noted this effort and consideration by the board members of PCC 51, as well as others, in its decision.

“Occupancy” or “service”?

The original applications regarding the holding of the owners’ meeting on Eid-ulAhza alleged discrimination with respect to “occupancy of accommodation,” contrary to section 2 of the code. Whether a unit owner is able to attend a condominium meeting really has no impact on that individual’s ability to use and occupy his or her residential unit. Rather, the ability to attend an owners’ meeting, and to exercise a right to vote, is “political” in nature and forms part of the ownership rights as a shareholder of the corporation. The tribunal indicated that if the applications were improperly brought under section 2 of the code, they could be amended to be brought under section 1 of the code, which deals with equal treatment with respect to “ser vices, goods and facilities.”

In the end, because the tribunal found that there was no discrimination, the

tribunal did not have to decide whether a condominium owners’ meeting is considered either a “ser vice” or “occupancy of accommodation” under the code. Accordingly, while it appears evident that an owners’ meeting does not fall within section 2 (occupancy), whether an owners’ meeting would qualify as a “service” under the code remains unresolved.

N ote: A s of the time of w r itin g , t h e d e a d l i n e fo r t h e a p p l i c a nt s i n Kamal v. PCC 51 to file a request for reconsideration had not expired, which is 30 days. There is no right to have a decision reconsidered by the Human Rights Tribunal. In granting such a request, the tribunal must be satisfied that there is a proper basis to re-open the case based on specific criteria, such as conflicting jurisprudence. 1 Carol Dirks is a partner at Fogler, Rubinoff LLP. Since her call to the bar in 1996, Carol's practice has been focused in the area of condominium law and condominium-related litigation. She regularly advises boards of directors on the requirements of the Condominium Act, as well as enforcement of the declaration, bylaws and rules.

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www.REMInetwork.com | November 2016 15

Three ways boards run afoul of their statutory duties T here a re ma ny dut ies t he c u r rent C ondom i n iu m Ac t (1998) requires directors to fulf ill.

BY SONJA HODIS

Case law and experience suggest that there are certain duties that some boards and their directors tend to run afoul of or choose to ignore.

Here are three common breaches and tips on how to avoid them:

16 CONDOBUSINESS | Part of the REMI Network

LEGAL

1. Failing to fulfill maintenance and repair obligations Sections 89 and 90 of the Condominium Act set out the default re p air and m aintenanc e o b lig ations of a condominium corporation. These default provisions can be altered by a corporation’s declaration in accordance with section 91.

W hatever the cor p oration’s maintenance and repair obligations, the board must fulfill them. Failing to do so can result in claims against the corporation requiring damages to be paid out to owners. For example, in Ryan v. York Condominium Corporation No. 3 4 0, the corporation had to pay close to $70,0 0 0 for failing to fix a water infiltration problem in a timely manner.

What to do? Take reasonable steps to repair and maintain the common elements as quickly as possible.

The corporation’s duty to repair and maintain has been highlighted by an increase in smoke migration complaints in condominiums. Failing to properly maintain and repair a common element which is causing the smoke to migrate from one unit to another can attract liability, even though the corporation is not the cause of the smoking.

Corporations may not only face a court application, but also a human rights complaint if the smoke is affecting a person with a disability.

W h a t t o d o? I f t h e c o r p o r a t i o n receives a smoke migration complaint, investigate how the smoke is migrating as soon as possible.

The corporation may need to hire a smoke migration consultant to see if any common elements need repair or replacement to prevent the smoke from migrating. This testing will help determine whether the problem is a maintenance/

repair issue for the corporation or unit owner or just a nuisance claim. If there are deficiencies in the common elements that cause the smoke to migrate from one unit to another, repair them immediately to avoid further liability.

2. Failing to ensure status certificate accuracy Directors may delegate the task of completing status certificates to their proper t y manager. However, boards must be aware that they have a statutory duty to ensure that the status certificates are accurate.

An error in a status certificate can lead to claims against the corporation resulting in payouts to new purchasers who relied on the incorrect information.

Alternatively, it may lead to a financial l os s fo r the c o r p o r atio n if it c an’t collect special assessments from new purchasers. In Orr v. MTCC 1056 and

www.REMInetwork.com | November 2016 17

LEGAL

673830 Ontario Limited v. MTCC 673, the condominium boards learned the consequences of failing to fulfill this duty the hard way.

W h a t to d o? R e g a rd l e s s of w h o prepares the status cer tificates, the board should review the status certificate information at least once a year. Ideally, the board should review the status cer tific ate information ever y quar ter. If the corporation has

any ongoing litigation or knows about the potential for a special assessment in the near future, amend the status cer tificate to reflect the change i n c i rc u m s t a n c e s o r k n ow l e d g e of additional expenditures that will affect the common expense fees.

Do not add information that is not required in the standard form. This can needlessly create extra liability, as the condominium corporation did in the Orr case.

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The board can not alter the corporation’s statutory duty to ensure the accuracy of the status certificate. However, it can assign responsibility for errors and their associated costs to a third party such as the corporation’s property manager.

Carefully review the corporation’s management agreement to ensure that the liability for accuracy and completeness of all information contained in the status certificate rests with the management company. Also check that the management company bears liability for all costs incurred by the corporation as a result of any errors the management company makes in preparing the status certificate. This may allow the condominium corporation, such as MTCC 673, to get reimbursed for its costs when there is a mistake in a status certificate prepared by the property manager.

3.Failing to hold validly requisitioned meetings Section 46 of the Condominium Act requires the board to hold an owner’s meeting when it has received a valid requisition. To be valid, the requisition must be signed by owners representing at least 15 per cent of units and state the nature of the business to be presented at the meeting.

If the requisition is valid, the meeting must be held within 35 days or at the next annual general meeting if the requisitionists so request. If the board does not comply with this duty, the requisitionists can call the meeting and be reimbursed by the corporation for the reasonable costs incurred to call the meeting.

Many times, these requisitions result in a power struggle between the board and a group of unhappy owners. In order to show who is in control, some boards will spend a great deal of time and money trying to find a way to avoid holding the meeting.

However, boards should think twice about trying to avoid holding a requisitioned meeting. The courts have reiterated that the ability of an owner to requisition a meeting is an important democratic right in a condominium. Accordingly, the courts have liberally interpreted the requirements for a requisition based on the legislation’s goal of consumer protection. (See Hogan v. MTCC 595.)

The courts will not let boards create obstacles to prevent owners from calling a meeting. Nor will the courts allow boards

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to deny owners the right to a meeting on technical breaches or strict interpretations of the wording of the legislation.

Failing to call a validly requisitioned meeting can result in a court order for the corporation to hold the meeting and pay the costs of the owner(s) who obtained the court order. However, the court will not require a board to hold a meeting where the requisition contains false and misleading information.

What to do? If the board gets a requisition, make sure the nature of the business to be presented at the meeting is clear. Also verify that 15 per cent of owners listed in the corporation’s records under section 47(2) and who are entitled to vote (not more than 30 days in arrears) have actually signed the requisition. Many times, requisitionists will have tenants who are occupying the unit sign. Tenant signatures cannot count toward the 15 per cent. In addition, if two owners

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from the same unit sign, they only count as one owner.

If the requisitionists have met the requirements under section 46(1), determine whether they wish to have the issue addressed at the next AGM or a special meeting called.

Use this opportunity to talk to the requisitionists to see if the board can resolve the issues outside of a meeting. If the requisitionists are prepared to waive the meeting, be sure to document this agreement in writing.

If they do not consent to the issue being addressed at the next AGM or do not waive the meeting, the board should call the meeting. Be sure to deal with the issues as outlined in the requisition letter. Have the corporation’s legal counsel review the requisition to determine what, if any, action can be taken at the meeting or whether the meeting will be just a discussion.

The board shouldn’t waste its time or the corporation’s resources fighting over whether the meeting should be held unless the requisition contains false and misleading information. The board’s time and corporation’s resources are better used educating owners about the issues — possibly with help from a guest speaker — and giving owners an opportunity to be heard at the meeting. The requisition may signal that a bigger issue needs to be addressed.

It’s important to be aware of these three common breaches because, as shown in the above examples, when boards run afoul of their legal duties it can create liability for the corporation. 1 Sonja Hodis is a litigation lawyer based in Barrie that practices condominium law in Ontario. She advises condominium boards and owners on their rights and responsibilities under the Condominium Act and other legislation that affects condominiums. She represents her clients at all levels of court, various tribunals and in mediation/arbitration proceedings. Sonja can be reached at (705) 737-4403, sonja@ hodislaw.com or via her website at www. hodislaw.com.

NOTE: This article is provided as an information service and is not intended to be a legal opinion. Readers are cautioned to not act on the information provided without seeking legal advice with respect to their specific unique circumstances. Sonja Hodis, 2016 All Rights Reserved.

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www.REMInetwork.com | November 2016 21

LEGAL

When private interests infiltrate the board W hy does one become a director? It’s generally not the applause, the pay cheque, or the

BY JOSH MILGROM

pleasure of being bombarded in the elevators by other residents’ questions.

Some directors cite interest in playing their part to help their home thrive, others blame their neighbours’ persistence, and others are there to fix some old mistakes.

Regardless of one’s original motivation for becoming a director, directors have a tremendous responsibility, including managing the proper t y and ensuring compliance with the condo’s governing d o cument s (the C ond o minium A c t , declaration, bylaws, and rules). Section 37 of the Condominium Act requires directors to act honestly and in good faith in carrying out their duties, and to exercise the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances.

But what happens when personal interests diverge from the interests of the greater good and representatives of

22 CONDOBUSINESS | Part of the REMI Network

private, commercial interests become d i re c to r s , o r w o r s e , c o m p o s e t h e majority of the board?

Governance challenges and financial issues abound when directors become m oti v ate d by se l f - inte re s t , ins te a d of looking out for the best interests of the condo as a whole. The power struggles that ensue can have d i v i si ve, d e s t r u c t i ve, a n d a l a r min g consequences, resulting in corporations embattled with legal issues, in-fighting, disgruntled residents, and rampant noncompliance.

The Condominium Act does not set the bar par ticularly high to be a

LEGAL

director: a director must be 18 years of age, not an undischarged bankrupt, and must be capable of managing property within the meaning of the Substitute Decisions Act. One does not need to be an owner or resident of a condo, or have any affiliation with the condo at all, to be a director. By default, the threshold to be a director is low.

W hat does this mean in practice?

Let’s consider short-term rentals as an example. If a person operates a shortterm rental business and is interested in renting out a group of units in a condo, he or she can run for the board. So can that person’s business par tners; and

with the right campaign (or potential “customers”), it’s possible for these parties to garner sufficient support to get elected.

If the board is stacked in just the right way, these private interests can rule, turning a blind-eye to non-compliance, offering preferential treatment or perks to short-term renters through preferred parking, storage space, or even cleaning services, on the condo’s dime. And the owners could be left in the dark, deceived and lied to, relying on the self-interested directors to provide them with updates and information about the operations of the condo.

But eventually the other owners get tipped off that something might not be right – maybe it’s the neighbours’ excessive partying on the weekends, beer bottles strewn across the corridors, or guests overheard asking the concierge for an extra bottle of shampoo or how to get to the pool.

Communications with management and the board do not seem to resolve the ongoing issues, and concerned owners start exploring their options.

Of course not all short-term guests wreak havoc on a condo. But a condo is empowered by the C ondominium Act to be able to establish its own restrictions, within the bounds of the

www.REMInetwork.com | November 2016 23

LEGAL

One does not need to be an owner or resident of a condo, or have any

affiliation with the condo at all, to be a director.

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law, on permitted uses of units. Once established, owners have a right to expect the governing documents will be adhered to.

For a cor p oration who has been infiltrated by a self- interested board refusing to enforce short-term rental rules, the owners or other directors can requisition a meeting to remove the selfinterested director or commence an application in the courts.

It can be fairly difficult to remove directors from the board prior to the expiration of their term. The majority of unit owners would need to vote in favour of removing the director at a meeting called for the purpose of removal. The more units are tenanted in the condo, the more difficult this threshold is to reach.

If the corporation has passed bylaws that contain disqualification provisions, the removal might not require an owner vote. If the bylaw permits, directors can be removed for a breach of the code of ethics, for example. Of course, if the selfinterested directors compose the majority of directors or are otherwise able to influence the other directors, a breach of the bylaw is unlikely to be sufficient to require the directors to relinquish control, despite a clear breach of the bylaws.

Where removal of a director is not feasible, impractical, or will not adequately p ro te c t t h e c o n d o f ro m d a m a g e s which may have been suffered, a court application may be necessary. Owners could commence an application for the board’s failure to enforce the shor tterm rental provisions in the governing documents, and, if there is concern about the manner in which the self-interested directors are governing, a finding that the directors have acted in bad faith or in breach of their obligations. Where a director is found to have acted in bad faith,

LEGAL

that director can be held personally liable, and can be responsible for the damages ordered in the application.

In Ballingall v. Carleton Condominium Corporation No. 111 (CCC 111), a group of owners commenced an application against CCC 111 and one of the directors personally for, among other things, a declaration that the director had breached the standard of care required by section 37 of the Condominium Act. CCC 111 had a declaration provision that required the residential units to be used solely as single-family residences.

CCC 111 was located in close proximity to a university, and many units had been rented to multiple, unrelated students.

Tension arose between owners who wished to rent units to unrelated tenants and those who were owner-occupants.

CCC 111 attempted passing a rule to further define “single-family residence.”

Instead of supporting the decision of the board with respect to a rule further defining “single family,” the director attempted to undermine board decisions and mislead unit owners. He sent a letter to all unit owners (except the other directors) encouraging them to distrust C the board, made the board dysfunctional, M promoted antagonism and dissent, and put his own economic interest ahead Y of the interests of all unit owners.

CM Fortunately for CCC 111, there was only MY one director acting in self-interest.

T h e d i re c to r, ke e n o n e n s u r CYi n g he could continue renting his unitCMY to unrelated tenants in breach of the singleK family dwelling provision in CCC 111’s declaration, was found to have acted in bad faith and in breach of the standard of care required of directors.

The continuing increase in popularity of short-term rentals and its impact on c ond os has far- re aching influenc e, including at the municipal level. The City of Toronto is planning on reviewing the issue of short-term rentals. A report released by the City, entitled “Developing an Approach to Regulating Short-Term Rentals,” outlines the further research the City plans to undertake into the issue, including consultations with the public, key stakeholders, and the need to explore potential options for regulation.

Until regulation comes, boards are left to

their own devices to regulate short-term rentals in their buildings and to ensure that owners and directors comply with the governing documents.

As a proactive step, the Condominium Act does permit a condo to enact its own bylaws setting out additional qualification requirements for directors. These can half_page_residential_ad_PRINT.pdf include requiring directors to be owners or residents of a unit in the condo or requiring directors sign a code of ethics enshrining

certain shared values of the board. These types of additional qualification provisions can help protect a corporation from private interests infiltrating a condo board, or at the very least, may make it easier to regain control if these interests have already gained support. 1 1 2015-06-01 Josh Milgrom is12:42 an PM associate at Lash C o n d o La w, p ra c ti c i n g ex c l u s iv e ly condo law.

www.REMInetwork.com | November 2016 25

TECHNOLOGY

Three renewable energy systems with applications in condos Condo corporations must pay to heat, light and air-condition common spaces such as the lobby,

BY DR. IJAZ A. RAUF

ha l lways, garage, exterior park ing lot and children’s playgrounds. Individual condo owners pay their share of these costs through their condo fees, and energy costs are only going to continue rising.

26 CONDOBUSINESS | Part of the REMI Network

TECHNOLOGY

That’s because the pressure on existing networks is increasing.

Global energy demand is expected to more than double by the year 2050, even with aggressive conservation and energy efficiency measures.

Incremental improvements in existing energy networks will not be adequate to supply this demand in a sustainable way.

This, coupled with the threat of climate change, has triggered a widespread interest in renewable energy.

Energ y h ar veste d from n atural resourc es th at c an be replenished naturally within a human being’s lifespan is considered to be renewable. It comes in many forms, including hydro energy, solar energy (heat and light), wind, biomass, geothermal and ocean energy.

The sun is the source of all forms of renewable energy, except for geothermal and ocean energy. What follows is an overview of three renewable energy technologies that can be used in multiresidential buildings. Figure 2: Schema?c of the func?oning of a Solar Air Hea?ng System

Supply Cold Water Solar Collectors

Preheated Water

Cold Water Hot Water

Water for Household usage

Heat Exchanger

Figure 1: Schematic of complete solar domestic water heating system

Solar water heating There are many ways in which a Solar Water Heating System can be installed. Figure 1 shows a simple schematic of a solar domestic water heating system. Cold heating fluid is run through the collectors. Then, the hot fluid is used to warm up the potable cold water intake. The gas or electric based water heating system thus gets pre-heated water, reducing gas and electricity consumption.

The federal and provincial governments strongly support solar water heating system installations for their environmental benefits as well as for reducing energy use. Incentives of up to 50 per cent of the total cost of the project are available to commercial and industrial corporations, such as condominiums, for installing solar water heating systems.

Figure 2: Schematic of the way a solar air heating system works

Solar space heating Figure 2 show a schematic of a solar air heating system. A perforated heat-absorbing material is installed on the exterior wall of the building with a small gap. The air trapped between the solar wall and exterior wall of the building gets heated and rises. Through the perforations, the outside fresh air fills the vacuum created by the rising hot air.

Thus, the furnace gets pre-heated air and should work less to heat the building. This helps reduce the cost of space heating by up to 50 per cent as the space heating system pre-heats the air (30 degrees Celsius or more compared to fresh outside air). Incentives of up to 50 per cent of total project costs are available in Ontario for solar space heating projects for businesses.

Solar electricity Solar electricity is one of the fastest-growing energy technologies worldwide, rising more than 42 per cent, per year, over the past 10 years.

Both the federal and provincial governments strongly support solar photovoltaic or ‘PV.’ Figure 3 shows a schematic of the way a grid-tied solar PV system works to generate electricity silently and without any moving parts. Visible light from the sun falls on the solar arrays, generating direct current (DC) electricity. The DC electricity is converted into an alternating current (AC) household 120 volts by an inverter. This AC electricity is fed into the electric meter through a circuit breaker panel. This electricity then can be consumed in the building to run the lights and appliances or fed into the grid, or both.

At night and during the cloudy weather, the solar system’s output drops or stops; however, the building can get the electricity it needs directly from the grid. With the roll out of smart metering systems and time of use (TOU) electricity rates, the cost of electricity from the grid is 220 per cent higher during the day compared to its cost at night. A solar system produces the most electricity when it is most expensive from the grid.

www.REMInetwork.com | November 2016 27

TECHNOLOGY

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Figure 3: Schematic of the functioning of a grid-tied solar photovoltaic system

Ontario’s Feed-in Tariff Program allows one to sell all the solar To meet its environmental targets, the province of Ontario no electricity to the grid at a premium rate for grid-tied systems over longer uses coal to generate electricity as of the end of 2014. The a contract of 20 years. Combined revenue for the solar PV system province’s goals are to reduce greenhouse gas (GHG) emissions to 15 output depends on the nameplate rating of the system. This revenue per cent below 1990 levels by 2020, and to reduce emissions to 80 helps pay off the initial cost of the system much faster (roughly within per cent below 1990 levels by 2050. five to six years) and provides a source of revenue for the remainder As per Ontario’s environmental commissioner’s report, of the contract. the building sector alone represents 30 per cent of the total Installing solar water heating, solar space heating and solar GHG emissions for the province. What’s more, this sector electric systems can reduce lighting, heating and air-conditioning has seen steady growth and consequent increase in GHG bills significantly. Figure 4 shows a multi-family, high-rise building emissions of 17 per cent from 1993 to 2013. that installed all the three technologies. They generated more The federal government also recently announced that, as than $100,000 in annual savings on electricity and gas3:bills, evenof the offunc?oning January 2018, everyone have toSystem pay a new carbon tax Figure Schema?c of a Grid-Tied Solar will Photovoltaic though the building had limited space in which to install renewable at an initial rate of $10/tonne of carbon dioxide (CO 2 ), rising to $50/tonne of CO 2 in 2022. technologies.

And, for the most part, renewable energy is free — after covering Dr. Ijaz Rauf is a solar energy expert. He obtained a Ph.D. in the cost of initial installation. With installation costs dropping, energy physics from Cambridge University in England. He is currently prices rising (for both gas and electricity) and time of use rates the president and CEO at SolarGrid Energy Inc. and an adjunct in place, renewable energy makes a lot of economic as well as professor in the Department of Physics and Astronomy, environmental sense. It will also take on increasing importance as the York University. He can be reached via e- mail at irauf@ provincial and federal governments step up their efforts to combat solargridenergy.ca or phone at (888)743-4621. climate change.

Figure 4: A multi-family high-rise building featuring solar water heating, solar space heating and solar photovoltaic technologies

28 CONDOBUSINESS | Part of the REMI Network

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Water has overtaken fire as one of the leading causes of insurance claims by condominium corporations — in part due to climate change, as David Outa details on page 32. It poses the greatest risk of loss when residents are out of town, such as when snowbirds head south, which is why Quintin Johnstone recommends suite checks during extended absences (page 40). And, in case flooding does occur, Randall Linton provides a protocol on page 36 for mitigating damage while waiting for the corporation’s restoration service provider to arrive

www.REMInetwork.com | November 2016 31

RISK MANAGEMENT

Leading causes of insurance claims and how to minimize their impact Condom in iu m cor porat ions present claims against their insurance policies for a w ide

Although, it is important to necessarily unique to condominiums.

32 CONDOBUSINESS | Part of the REMI Network

BY DAVID OUTA

range of reasons.

note that current trends in claims are not

RISK MANAGEMENT

Who can forget the images of stranded Go Train riders or the $200,000 Ferrari submerged and abandoned in waist-high floodwater!

That said, multi-unit residential dwellings and communities continue to present some unique claims challenges for insurers across the country. Experience as an insurance broker specializing in this segment shows that the majority of claims arise from liability — specifically water damage, slip, trip and fall injuries, and theft of funds.

Water damage Water is the new fire. Water claims represent a significant cost to insurers, which in turn affects the premiums condominium corporations pay. Historically, fire has been the biggest risk to property insurance with respect to severity. Due to improved fire safety and building code requirements, the frequency and severity of fire claims have diminished, notwithstanding the recent catastrophe in Fort McMurray, Alberta.

Factors such as changing weather patterns, aging infrastructure and human error, among others, have made water the leading cause of property insurance claims. Alarmingly, these events are not only more frequent, but have increasingly become more severe.

The flash flood in Toronto in July 2013 was estimated to have cost the insurance industry $1 billion. Who can forget the images of stranded Go Train riders or the $200,000 Ferrari submerged and abandoned in waisthigh floodwater! Just prior to that, Alberta was devastated by severe flooding causing approximately $1.7 billion in insurable damage.

Experts warn that such events will become the norm. Changing climate due to global warming has been blamed for the changes in weather patterns that result in these types of incidents. As the insurance industry incurs claims due to severe weather, the cost of flood coverage inevitably increases and is passed on to consumers. In some neighbourhoods, flood insurance coverage has disappeared altogether. It has been argued that the climate change experienced globally is irreversible and the best that can be done is make changes that will slow down the negative impact. However, there are aspects of water damage that can be controlled.

Sewer backup, which can cause severe damage and major insurance claims, can be effectively managed. One strategy is to upgrade storm water systems and replace old infrastructure, especially in urban areas where population density adds undue burden on storm sewer systems. For their part, residential homeowners can install backflow valves, which stop water from flowing back into basements. Another way to reduce the possibility of sewer backup damage is to install sump pumps and ensure they are operational.

Also, the simple act of cleaning eaves troughs regularly and directing water away from foundations is yet another way to reduce claims

arising from water damage. Some insurers even extend discounts to homeowners who take such preventative measures, recognizing their positive impact on claims.

Water damage is also caused by human errors such as overloading washing machines, neglecting to maintain appliances (e.g. dishwashers), and negligent workmanship during repairs. By being aware of these mistakes and paying attention to prevent them, condo residents can reduce claims and the resulting impact on insurance premiums.

Slip, trip and fall injuries Liability imposes a legally enforceable obligation for which individuals and entities purchase liability insurance to compensate injured parties. As occupier of the common elements, the condominium corporation has a legal obligation to ensure that people entering and leaving the premises do not encounter hazards that could result in injury to themselves or their property. Generally, for legal responsibility to apply, it must be demonstrated that the corporation was negligent (it either acted contrary to or failed to act how a reasonable and prudent person would in a given situation).

According to Aviva Canada, one of Canada’s leading insurers, between 2002 and 2004 slip and fall incidents in Canada represented more than 50 per cent of all injury hospitalizations and more than 10,000 in-hospital deaths. It is the second leading cause of accidental death and disability after automobile accidents.

More challenging from an insurance

www.REMInetwork.com | November 2016 33

RISK MANAGEMENT

perspective is that every claim, whether genuine or fraudulent, carries investigation and defense costs, even when no judgments are awarded. Zurich, another insurer, reserves at least $1 billion in North America to pay for slip, trip and fall claims.

Slips, trips and falls are a leading cause of insurance claims for condominium corporations. These incidents are mainly caused by slippery driveways, parking lots and walkways during winter, slippery floors, and trips due to uneven surfaces or objects on the ground.

It is true that accidents are unavoidable. However, a condominium corporation and its property manager can reduce the risk of a lawsuit through good risk management. One effective way is to transfer the risk by contract to a reputable, insured contractor.

Standard practices of such a contractor include regular snow and ice clearing based on needs. It’s important that the contractor logs the times and dates when services are performed, as this information is crucial in defending claims. Condominium corporations are commonly named as additional insured on the contractor’s insurance policy for liability arising out of the contractor’s operations.

All owners and property managers should take responsibility for quickly identifying and eliminating hazards, such as wet floors, deteriorating surfaces and ice buildup. It’s important for condo residents to remember that a lawsuit against the condominium directly affects them as owners of the corporation. For example, reporting an unusually slippery surface around the community mailbox and having salt applied promptly can eliminate an imminent accident and possible lawsuit.

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Theft of funds Theft of funds by board members, property managers and others with access to the condominium corporation’s funds is another leading cause of insurance claims. Recently, sensational news from the Burlington and Hamilton area told the story of a property manager who was found to have embezzled millions of dollars from at least 10 corporations. Less sensational stories that go unnoticed, because they don’t make the news, can involve theft of various amounts, which have significant financial implications for condominium corporations.

Insurers offer fidelity coverage of varying limits, which a corporation may claim against in the event of theft. However, condominiums can adopt various checks and balances to reduce or eliminate the chance of being victimized by what is often a crime of opportunity. Such checks and balances include using cheques, preauthorized payments or third party collections instead of cash, and keeping paper trails. It’s good practice to require at least two signatures for cheque payments and have board members initial payments handled by property managers, as well as general oversight of invoices and financial records.

By proactively implementing risk management strategies, condominium corporations can effectively reduce the impact of these major causes of claims.

David Outa, BA, CIP, CRM. is a commercial account executive at Cowan Insurance Group Ltd. David has more than 13 years of experience in commercial and residential insurance. He specializes in insurance for condominium corporations at Cowan. David currently serves as a director of The Canadian Condominium Institute - Golden Horseshoe Chapter. He can be reached at david.outa@cowangroup.ca.

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RISK MANAGEMENT

A checklist for mitigating flood damage It ’s 3 a.m. T he sound of a property manager’s cell phone awakens him from a deep sleep. It’s

BY RANDALL LINTON

one of the condominium owners in the building

he manages. The

owner is deeply stressed by water dripping from her ceiling and onto the hardwood floors in her condominium. She screams through the phone: “What am I going to do?”

36 CONDOBUSINESS | Part of the REMI Network

RISK MANAGEMENT

So just what is the property manager going to do? What is the protocol for a situation like this? Experience suggests that the day a new owner moves into his or her suite, the property manager should inform the new owner where the water shut-off valve can be found. There are on-off valves in the bathrooms, laundry room and kitchen. The last thing condo owners should be doing during a flood emergency is trying to figure out where the water source is located.

Long before a flood occurs, the property manager needs to put a strategy or a plan in place for dealing with such a scenario. It’s important to document the processes and procedures necessary to effectively manage a flood in writing. To get started, the following is a chronological list of what to do when there is a flood in a condominium: 1. If the building has a concierge service, make sure it has emergency contact information on hand for the corporation’s preferred flood restoration vendor.

2. When a flood is occurring, immediately turn off the water source causing the flood. An overflowing toilet or sink needs to be stopped before any further action is taken.

3. Contain the water by placing dry absorbent bath towels around the source and at door thresholds.

4. Get as much of the water off the floor as possible using dry absorbent bath towels. To prevent the water in the saturated towels from dripping onto the floors, maximize containment by ringing the wet towels into a bathtub and not the kitchen or bathroom sinks. Laminate wood flooring unfortunately will not survive water damage, although engineered hardwood flooring may be saved with immediate dehumidification.

5. A building’s corporation or property management firm may want to purchase two to four air movers (fans) for use in flood emergencies. If available, place them in the affected areas, ensuring the air is flowing toward the floor to accelerate the drying of the areas that may still be damp.

The dehumidifier will pull water from the floor and air.

Maintain an indoor temperature of 20 degrees Celsius in the condominium and leave on the thermostatically controlled fan, which will also help the drying process.

6. Most flood damage ends up affecting more than just the unit where the emergency originated. If water is dripping down into a unit below, have the owner place catch basins or buckets on the floor to prevent damage to the floors.

www.REMInetwork.com | November 2016 37

RISK MANAGEMENT

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7. If the flood affects multiple suites, it’s imperative for the owners to cont act their insurance agents.

Water damages become a claim for each individual homeowner’s insurance and, in most cases, is not covered by the homeowner that caused the flooding. Reassure condo residents that this claim will not necessarily affect their policy cost at renewal time, especially if this is the first occurrence.

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If the water damage soaked the condo owner’s carpet, or went up the walls, or if there is any uncertainty about the extent of the water damage, it’s best to consult the condominium corporation’s insur an c e c o m p any. T he insur an c e company will assign an adjuster to professionally identify the extent of the damage. If a claim needs to be made, the insurance company will bring in a professional to clean up the water and repair the damage.

In addition, the insurance company will quickly assess any issues that may have been c aused by the flood and make determinations such as whether the owner’s flooring can be salvaged.

Moreover, they will per form tests to determine whether any moisture has migrated behind the walls. If this is t h e c a s e, a i r b l owe r s d e s i g n e d to move air inside the wall can be used to accelerate the drying process. If the existing walls are beyond repair, new drywall will need to be installed.

Proper t y managers never want to experience flood damage in their buildings. However, there is a good chance that they will encounter this t ype of emergency at some point in their careers. When property managers do, it’s best that they know what steps to t ake to minimize d amage to the suites in their building. 1 Randall Linton is co- owner of Interior Care Ltd, a company in its 54th year th at p rovi d e s p rofe s s i o n a l fl o o d re sto rati o n a n d m a i nte n a n c e of commercial offices and condominiums, and ServiceNational Canada Inc., which provides full contract maintenance of retail stores across Canada. He can be reached at randall@interiorcare.com.

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RISK MANAGEMENT

The out-of-towners So condominium ow ners have stopped by the property management off ice to say that

BY QUINTIN JOHNSTONE

they have packed their bags, put the pets up with relatives, and now they are heading to a sunny destination for a well-deserved vacation. They may even be snowbirds that will be away for several months. They’re all set, right?

40 CONDOBUSINESS | Part of the REMI Network

RISK MANAGEMENT

problems while tenants are out of town.

In these cases, owners may find that tenants have not had anyone check in on the condominiums during their extended absences. As a result, these owners may be on the hook for the costs of damage to their unit and other affected units.

What’s more, insurance providers may not be willing to assist. There is a little known clause in condominium insurance policies that stipulates that, during extended absences where a condominium unit will be vacant, residents must have someone check in on the property regularly. Each policy is different with respect to how often suite checks must occur and who can be designated as a competent person to make such visits.

The unfortunate reality for condominium corporations is that, in some cases, property managers are having to call vacationing condominium owners to advise them of serious issues while they’re away.

Condominium corporations are often left managing these problems until residents return. Vacationers are then coming back to deal with serious problems that can be very costly affairs for the residents and the corporation alike.

Upset owners may ask: What didn’t anyone warn us about this? Why didn’t property management deal with this? Whose responsibility is it anyway? What am I paying maintenance fees for?

W ith the g row th of investment c ond ominiums, pro p er t y managers are also having to call owners to report

Understanding condominium insurance Armin Habibi, insurance specialist, Paisley Manor Insurance Group, a company that specializes in insuring condominiums, states that this is an area where insurance policies have unique stipulations based on the type of loss that occurs and the type of property that is insured.

“Water damage is the biggest exposure to loss in scenarios where a home is left unoccupied for extended times,” Habibi advises. “The insurer will likely refuse to pay if the homeowner does not take the proper precautions.”

Faulty appliance piping and hoses, incorrectly installed toilets, washing and dishwasher machines, poor contracting and illegal renovations are just some of the causes of major water leaks. Uncontained water can negatively impact multiple units below the source of the leak, causing thousands of dollars in water damage in each affected unit.

“Many policies include a clause that states if the home is unoccupied for a period of time with no one checking in on the home, the policy may automatically lapse in coverage,” said Habibi. “This is why if it is part of someone’s lifestyle to leave the home unoccupied for an extended amount of time, they should contact their insurance provider prior to travel to see if such absences are

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Reviewing policy clauses Gerald Miller, managing partner of Gardiner, Miller, Arnold LLP, says his condominium law firm too often deals with these incidents, most of which are preventable.

“Condominium insurance is very complex.

Each condominium corporation has its own insurance, each unit owner should have an owner’s policy and each owner who rents out their unit should also insist that their tenant has a tenant’s policy,” explained Miller.

“If a loss occurs, all that matters is that there is insurance coverage. We have found that the biggest losses come from water damage due to washing machine and dishwasher hose failure.”

As such, he advised that it’s important for everyone to know what an owner’s insurance policy says about closing that door to his or her condominium and heading to Florida for the winter or an extended vacation. A typical condominium owner’s policy provides that ‘We do not insure loss or damage … occurring after your unit has, to your knowledge, been vacant, for more than 30 consecutive days.’

“Therefore it is critical for every owner of 9:47 AM a condominium unit to review their policy to determine the timeframe for which their property can be vacant before their insurance policy excludes coverage,” said Miller. “If your vacation plans exceed the timeframe in your policy, you should contact your insurance company to determine what steps you can take to avoid exclusion or if you can purchase additional coverage. It could be as simple as having a friend, family member or service provider to monitor your unit.”

Taking preventive measures There are ways for a condominium corporation to prevent unnecessary problems associated with extended absences of owners or tenants, including the following best practices.

Have a standard unit bylaw in place, inspect all unit water sources twice a year and give owners a deadline for correcting any deficiencies. Require owners to obtain permission from property management to renovate or install any water-driven appliance or device as well as mandate high-pressure water lines for all water sources.

RISK MANAGEMENT

In some cases, property managers are

having to call vacationing condominium owners to advise them of serious issues while they’re away.

Before giving tenants access to a service elevator and their unit, ask for a valid lease and photo ID, and register all residents permanently living in the suite.

Also ask the tenant to acknowledge the building’s rules in writing and maintain and produce proof of tenant insurance.

L ikewise, before owners take possession of their suite, require them to acknowledge the building’s rules, maintain adequate insurance and ensure suites are checked during extended absences. There are suite check programs that ensure these checks are completed in accordance with the tenant or unit owner’s insurance policy.

First, the owner or tenant fills out an indemnity and access permission form for property management. Then, the building’s superintendent and security staff jointly schedule and conduct suite checks at a frequency based on the requirements of the owner or tenant’s insurance policy.

Documenting suite conditions in real time provides a corporate record of all entries. Any issues can be reported and serious issues such as small water leaks can be mitigated before they become a building emergency.

T he b uil d in g su p er inten d ent an d security staff should leave suite entry notices inside the units to document access dates and times for the owner or

tenant. Should it become necessary to show an insurer that extended absence checks were completed by competent persons, these records are readily available.

Governing and managing condominium corporations can be a complicated affair.

Having best practices and resilient processes for when owners or tenants leave for extended absences can help prevent misunderstanding, improve resident safety and satisfaction, and, most importantly, mitigate the risk of property damage. 1 Quintin Johnstone is president and CEO of Samsonshield and Riskboss.

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Budgeting is a process of developing a financial plan for the corporation’s activities for a given period of time. Budgets are an important tool to the success of any corporation as this gives the Board of Directors an understanding of how those activities affect the unit owners financially. Once in effect, any given budget can provide a basis for evaluating the actual financial performance of the corporation. The following are a few of the more common budgets associated to condominium corporations: •

Operating Budget

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Since each of the budgets above recognizes a specific function of the corporation it is important to tie them together to see what the outcome will be. Collectively these budgets form a master budget. This master budget is intended to provide information to make informed operating and financial decisions.

Reserve fund budgets (also referred to as a Reserve Fund Study) are generally considered long-term planning tools simply because they incorporate potential financial requirements that can span over multiple years. However, any given budget is generally a snap shot of the corporation’s expectations at a given time and it should be understood that budgets will change over the course of time and will require attention and re-evaluation to account for our changing environment.

This is where strategic planning helps to bring awareness to the corporation’s vision and priorities in response to a changing environment and ensures that members of the corporation are working toward the same goals. A reserve fund budget helps address strategic thinking through basic questions like, “where do we want to be?” and “how are we going to get there?” Basic questions that many condominium corporations have not asked in the past. When they do, the end result is the corporation collectively does a better job.

The following are some simple but basic strategies that commonly evolve from a reserve fund study:

Strategic planning does not predict the future.

It bases decisions on what is needed today and places emphasis on “foreseeable” changes.

For example, significant changes in the economy can have an impact on expenditures projected in the reserve fund calculations.

Reserve fund studies are required to be updated based on a provincial statutory time frame.

Recognizing a changing economy can give a Board the opportunity to respond accordingly. Instead of waiting for the stipulated period to elapse, plan to perform more frequent updates. This approach would reduce significant changes that can occur over long periods of time. TIME IS MONEY!

Strategic planning helps incorporate coordination into the reserve fund budget.

Coordination forces a Board to recognize relationships between common property components - the duties of a contractor, the duties of maintenance staff, unit owner responsibilities, and corporation responsibilities as a whole. This recognition tends to shatter the perception of “this is the way we do things around here.”

Reserved fund study with strategic coordination can identify obstacles and opportunities for the Corporation.

This may lead to a change in the way things are done or it may help prepare for something originally unforeseen. For example, maintenance plans may be revised or possibly developed to compliment the timing set forth in the expenditure schedule.

Strategic planning helps with the implementation of decisions affecting the day to day operations.

The level of strategic coordination accepted by a Board should be easily identified by owners once a reserve fund study is finalized. Although changes to the plan would be anticipated, efforts to maintain the coordination within that plan will be a factor of the unity between individual expenditures and a clear understanding of the reasoning behind the plan. Unit owners should know and understand the desired effects of the plan’s outcome before making decisions.

In summary, improved reserve fund studies incorporate basic strategies such as coordination of expenditures. This higher level of planning is anticipated to improve the Board’s decision-making process and in turn improve the management of the corporation funds as a whole.

Author: Jamie Murphy is an Associate with Read Jones Christoffersen Building Science and Restoration practice. For over a decade, Jamie has provided consulting services in the evaluation and restoration of existing building envelopes and structures, as well as, design and quality control for new building envelope systems. He has been involved in reserve fund studies for the past years and is a past Board member with Canadian Condominium Institute – Northern Alberta Chapter. Jamie is currently a Director for the Construction Specifiers of Canada (CSC) and volunteers as an instructor training a course for CSC called Level 1 Principals of Construction Documentation.

MANAGEMENT

Prioritizing personal safety Coordinating both mechanical and building systems, and dealing with a variety of issues personal

BY LYNDSEY MCNALLY AND ANDRE LEBLANC

to clients’

homes, has the potential to place property managers in harm’s way. How can property managers stay safe when they face so many possible hazards in the workplace?

46 CONDOBUSINESS | Part of the REMI Network

MANAGEMENT

Personal safety should be a priority in all workplaces; however, there is joint responsibility in managing risks. If employers and employees work together to minimize risk, everyone can benefit from a safer work environment.

Know the risks A responsible employer will ensure that their property managers have access to information and reporting tools specific to safety in the workplace. This might include physical hazards as well as workplace violence and harassment.

Employers and employees should familiarize themselves with the Employment Standards Act and meet their individual obligations. It is the responsibility of everyone — whether it be the employer, employee or condominium corporation — to ensure a safe environment and to take all reasonable steps to plan before disaster strikes.

Staying safe when disaster strikes While property managers always want to be everything to everyone, they must remain aware of the situation at hand and must never put their personal safety at risk. For example, in the event of an engulfed fire, do not personally try to put out the fire. For another example, in the event of a major water pipe break, do not personally try to clamp the pipe.

Managers must always have well-thought-out policies and procedures in place so that the appropriate person may be contacted to address the situation at hand. Managers must know who to call, and when to call them, but in most cases should not be expected to personally rectify the emergency situation. In addition, employees have the right to refuse unsafe work in accordance with the Employment Standards Act. Managers must be able to consider all the risks in real time to make an informed decision. It’s important to consider potential scenarios in advance to avoid great personal risk as well as serious cost implications for the property. For example, if a property manager is responding to major flooding, it would be critical to recognize the possibility of live electrical wiring and that certain areas may be structurally unsound and therefore unsafe to enter. Property managers should look to licensed and trained contractors as partners in identifying and rectifying these hazards.

Managers must also remember to respect police, fire and municipal or other government officials who initially respond to emergency situations. The role of property managers is to assist first responders as necessary but property managers must always remember that they themselves are not first responders. The role of the property manager is to help with information and direction where required, and resolve subsequent and resulting damage or concerns from the emergency situation.

Tips for day-to-day safety Certain activities can result in unnecessary risk. Being proactive in considering personal safety can help keep property managers out of harm’s way.

One strategy would be to identify dangerous or restricted areas of a condominium and stay clear of them. Allow trades with appropriate training and safety gear to take responsibility for areas such as the transformer room, elevator shafts and external rooftops.

www.REMInetwork.com | November 2016 47

MANAGEMENT

If a property manager is responding to major flooding, it would be critical to recognize the possibility of live electrical wiring

Proper t y managers should also be mindful of who they are meeting, especially if they are going alone.

Finally, consider a strict no-cash policy in the office. Access to cash promotes theft, so it is prudent both from a safety and fraud prevention perspective to accept payments only via cheque, money order, or debit/credit card (if available).

In high-rise buildings, where there may be security staff or superintendents, the property manager may want to use a buddy system. They can let each other know where they will be going and who they will be

meeting throughout the day. They can also check in with each other at agreed upon intervals so that in the event something happens, the other staff members know how to check on their buddy.

The Ministr y of Labour notes that “We are all responsible — employers, supervisors and workers — for preventing workplace illness and injury.” When everyone works together and makes a genuine commitment to safet y, it’s possible to reduce the risk of personal injury and make workplaces much safer, even as inevitable emergency situations

arise. Property managers should speak to their employer about potential risks and be aware of hazards in their work environment. 1 Lyndsey McNally, RCM, is team leader at Malvern Condominium Property Management.

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Andre LeBlanc, RCM, is operations manager at Malvern Condominium Property Management and has been managing condominiums of all types for approximately 15 years.

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MANAGEMENT

A difficult subject: Managing unattended death During the course of a routine BY ROBERT HOLBROOK day at work, the average person does not typically think about death or dying. Death

is a very personal subject and there are many different belief systems that inf luence a person’s thoughts on the subject.

When confronted with death, different people will have different coping strategies and react in different ways. Many people have a strong reaction and become upset and overwhelmed. This reaction is completely normal and can be intense in the event of discovering an unattended death.

50 CONDOBUSINESS | Part of the REMI Network

MANAGEMENT

An unattended death occurs when a person dies and is not found for days or longer.

This sometimes happens when someone commits suicide or passes away of natural causes, and does not have anybody to check on them. Unfortunately, an unattended death situation can be discovered by individuals who work in the property management profession.

When an unattended death situation has been discovered, the first step is to call 911. This call will bring in the appropriate services. There will be an investigation, and the body will removed from the site. At this point, it’s important to work with the police and other members of their team to assist with their investigation. It’s also important for the person who discovered the unattended death to find personal support if he or she feels it’s needed. There is no shame in admitting that the discovery has had a negative impact on oneself.

An unfortunate part of an unattended death is having to deal with clean up and remediation issues. The human body decays

rather rapidly, especially in warmer weather.

The site where the body lay may be wet with fluid, which can soak into the flooring. These bodily fluids can contain pathogens that can remain infectious outside of the body. In some cases, there could be blood spatter.

The living space where death occurred may become extremely malodorous from the release of gasses and the explosive growth of bacteria, and the smell from the unit can also permeate and impact the common areas.

Cleaning up an unattended death scene is not a regular cleaning job. Cleaners must use the appropriate personal protection equipment to avoid contact with pathogens and prevent infection. Carpeting, flooring and subflooring may have to be stripped away and removed. This requires the cleaners to know how to use tools and follow safety procedures. The cleaning staff must maintain confidentiality and work in a discreet and respectful manner. They must be patient and complete a thorough job to eliminate all traces of the event.

Items stained with bodily fluids cannot be thrown into the municipal dump. The cleaning service must use specially marked and sealed containers. These containers must be disposed of at an appropriate facility.

The cleaning company will receive a chain of custody document after showing that they adhered to the correct disposal methods.

Hopefully property managers will never come across an unattended death. It is, however, important to know how to handle the situation if they do. If property managers are prepared, they may still be upset but perhaps not overwhelmed. 1 Robert Holbrook, MSW, RSW, is the owner of Toronto Hoarding Services. He has more than 15 years of experience providing mental health therapy services in the outpatient mental health departments of three major hospitals in Toronto. He specializes in helping condominium managers remediate hoarding situations. For more information, c a l l 416 - 5 6 9 - 0 8 4 6 o r vi s it w w w. torontohoardingservices.ca.

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SECURITY

How to interpret incident reports

Of ten overlook ed , sec u r it y

BY RONALD WELLS reporting allows management f irms to protect their personnel, propert y and

information. By properly col lecting and inter preting information, it’s possible to proactively address potential threats and conduct further civil or criminal investigation.

52 CONDOBUSINESS | Part of the REMI Network

SECURITY

The classification of security reports also determines which personnel have access to them.

A l w ay s c o n t a c t p o l i c e w h e n a n emergency is imminent. If life and safety are at risk, due, for example, to an assault causing bodily harm, call 911.

When an emergency is not imminent, but a crime has occurred, such as theft, vandalism, fraud and threat to property and persons, contact police on the local, non-emergency phone number.

If criminal activity has taken place, the property manager must call police to report the crime. Likewise, if criminal details come to light when security is conducting a civil investigation, it’s important to involve police.

It’s not always necessary to involve police in minor occurrences; however, failure to report any criminal incidents could result in civil liability and exposure.

That said, police departments increasingly have less time to spend on criminal investigations, due to lack of resources.

What’s more, they will not investigate civil liability cases, as they’re not within the police mandate.

Therefore, securit y providers must have fully trained personnel to assist in investigations into incidents involving their properties directly and indirectly.

S ecurit y t y pic all y resp onds first to incidents, so it must collect accurate information and evidence. The security provider should provide repor ts immediately after an incident for fast action and response.

R e p o r t s f ro m s e c u r i t y p ro v i d e r s should be written in third person and organized in chronological order. They should clearly and concisely summarize the following details: time, date and l o c a t i o n; w h o w a s i nv o l v e d; w h a t happened; and where, when and why the incident occurred.

Management should classify security reports, using headings for easy filing and recall. The security provider should

be able to provide a list of headings so the property manager may include his or her own headings applicable to the specific site and proper t y — for example, “T hef t” and “Lost access card.” This type of filing system will keep reporting organized and accessible for quick and easy recover y of information when the property manager needs it.

Property management must further interpret security reporting systematically, qualifying each report as follows: 1.

Information only; 2. Civil liability report; 3. Criminal liability report; 4. Criminal investigation; 5. Civil investigation in aid of minimizing loss and liability; and 6. Criminal liability report aiding in a law enforcement investigation.

How these repor ts are identified determines whether information must be released to law enforcement to assist their investigation and avoid obstructing justice.

In civil investigations, which could lead to litigation, reports must only be released to parties privy to such confidential information.

Typically, this would occur by means of a court order, corporate policy, lawful and/or freedom of information request.

The classification of security reports also determines which personnel have access to them. Management must put confidentiality parameters and policy in place for such reporting to meet corporate and legal standards, and protect information.

All security reports, including security notebooks, may start off as information only; however, they must be considered legal documentation at all times. As evidence, security reports should be subject to security measures, to preserve the reports and ensure continuity. Security providers must be able to establish the integrity of notes as well as storage of and access to reports, as a matter of maintaining confidentiality.

To recap, security providers must have an established reporting system that management can use to classify, interpret, file, secure and recall incidents. This level of organization allows management to access reports live, immediately after any incident, to make informed decisions. By using defined headings specific to the location and site, management can further scrutinize the information and request additional information to best protect the property.

The ability to access reports bridges the line of communication between the security provider, management firm and police.

When to involve police partly depends on the information that the security provider gathers in its initial investigation and presents to management in its report. Timely access to security reports is essential to management’s ability to effectively respond to incidents. 1 Ronald Wells is president and CEO of Cancom Security Inc., established in 2007. Ronald has more than 20 years of law enforcement, military and security experience in several capacities. He has serviced several buildings and worked with several property managers ConRep_Condo_April_2016_FINAL.pdf to customize integrated security services for each of their individual buildings.

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2016-

DEVELOPMENT

How to optimize generator installations Developers are

BY GRANT FARROW well familiar with backup power generators, which are a critical piece of the emergency evacuation puzzle in all condominium installations. The generator keeps the emergency systems functioning in the event of a loss of utility power.

A s most proper t y managers know, generators require regularly scheduled service intervals to comply with CSA 282.09, which is the current enforced code relating to generator service in life safety applications. Property managers always face pressure from residents (through their board of directors) to keep costs down and reduce building maintenance expenses.

This is no easy chore at a time of rising labour and material costs.

There are many factors to weigh when condominium developers choose the design and location of a generator installation.

The four major factors that will affect generator service costs in all condominiums are: • The make/model and kilowatt (kW) rating of the generator; • Generator location (roof, basement, underground parking, outdoors); • Electrical connection points for load bank testing; and • Room access and cleanliness.

The make/model and kW rating The generator make/model and kW rating are straightforward, as there is typically not a lot of leeway on size in the design of a generator installation. Kilowatt ratings are essentially determined by the electrical

54 CONDOBUSINESS | Part of the REMI Network

load that the generator needs to support.

The greater the electrical load to be backed up, the larger the size and capacity of the generator. Larger-sized generators require larger engines to drive them, and larger engines are more expensive to service (increased oil and coolant capacity as well as larger, more expensive oil and fuel filters).

Generator location Outdoor installations are typically the least expensive service option and can save thousands of dollars annually compared to other potential generator locations.

Typically, because the generator service provider can bring the service truck, parts and equipment very close to the generator, the resulting labour costs are much lower.

Another money-saving aspect of an outdoor installation is that when the generator is load bank tested (a requirement of CSA 282), the load bank (which exhausts extreme heat) can usually be placed close by the generator, saving time and electrical cabling and connection costs.

Generators that are in penthouse mechanical rooms or on roof tops can have significantly varying service costs. A generator on the roof of one condominium can have an annual maintenance cost of five to 10 times that of an identical generator on another roof. Factors that can affect this installation location are elevator access and stairs. If equipment and supplies have to be carried upstairs, costs can be higher.

DEVELOPMENT

If the generator contractor has to climb over or move debris, this will increase labour costs.

In a few condominiums, there are rooftop generators that can only accommodate a load bank on the ground, which can add more than $10,000 to the annual maintenance cost of the generator, as electrical cables for the load bank have to be run over 25 floors in some cases. In cases such as these, it may be more advisable to have a permanent load bank installed on the roof when the building is designed and built.

This strategy can save thousands of dollars in annual maintenance costs.

Many generators can be located in basement and underground parking areas, which can be fairly cost-friendly for generator service. Once again, though, certain factors can increase service costs. For one, they depend on how close the contractor can get the service truck to the generator room. For another, they depend on how close the load bank can be placed. Stairs and elevators also come into play here.

In many condominiums, the load bank heat can be exhausted directly into the underground parking area during tests.

This is convenient and requires the least labour to do, but there are limitations. Larger generators exhaust extreme amounts of heat when they are load banked. There have been cases where the heat exhaust has set off sprinkler systems in the underground

■ ■ ■ ■ ■ ■ ■ ■

parking. In cases such as these, the load banks must be placed outside, which requires additional electrical cabling as well as labour.

Load bank connection points CSA 282.09 requires that a two -hour load bank test be performed annually, so load bank connection points influence maintenance costs. Take, for example, a large rooftop generator with an electrical connection point on the roof. In this scenario, the generator contractor will likely have to bring their load banks up to the roof via elevator and or stairs. This can be timeconsuming and can also lead to a one-man job becoming a two-man job, which in turn leads to increased service costs. Conversely, an outdoor generator located on the ground is much less expensive to service, as the load banks are placed near the generator and the connections can be made with minimal cabling.

Some condominium developers are now designing buildings with load bank connection points (via camlock connectors) located on the outside of the building. This is an excellent way to reduce maintenance costs. The contractor can simply bring their load banks close to the load bank connection point, connect

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Grant Farrow is national service sales manager for Total Power Ltd. in Mississauga, Ontario. He can be reached at grant@ totalpower.ca.

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Room access and cleanliness Besides being a requirement of CSA 282, keeping the generator room free of debris and other materials is good practice. If the generator contractor has to climb over or move debris, this will increase labour costs. Debris in the room can also lead to catastrophic failure of the generator. Generator cooling fans move large amounts of air over the generator engine and exhaust the air outside. Debris in the generator room can easily be sucked up and fired through the generator radiator, leading to cooling system failure and ultimately unforeseen generator shutdown.

Is the room easy to access? Are there elevators? Are there many stairs? All of these factors affect the maintenance costs.

By considering these four factors, it’s possible for developers and property managers to minimize the annual service costs associated with generator maintenance. 1

SINCE 1987

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PRACTICAL APPROACHES

the load banks and begin performing the required two-hour load bank test.

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www.REMInetwork.com | November 55 2015-11-06 2016 12:23 PM

DEVELOPMENT

Avoiding headaches: Sound insulation in wood-frame buildings The nature of a wood-frame building is completely different than a concrete one

BY ANDRÉ RIOUX

and therefore requires an entirely different approach.

Wood-frame condos or apartment buildings often tend to have a bad reputation acoustically because they are built with much less mass and density than a concrete one. What this means is that these buildings will potentially transfer more airborne noises.

To compensate, builders typically choose to add one-and-ahalf inches of concrete topping to the assembly to create more mass. By doing so, builders avoid airborne noise transfer and limit flanking responsible for noise complaints.

Alternatively, builders can now adopt innovative systems replacing the concrete topping while still maintaining and even improving sound insulation. In fact, most people do not know that it is now possible to soundproof a wood-frame building equally or better than a concrete one.

As an example, the expected performance of a typical woodframe building can range from a field impact insulation class (FIIC) in the high 40’s to mid 50’s while concrete buildings can range from an FIIC in the low 50’s to low 60’s. By applying some of the following principles, it is now possible to soundproof wood-frame buildings up to an FIIC in the high 60’s while still using hard surface flooring.

Controlling noise transfer To control noise transfer in wood-frame buildings, it’s important to first identify and understand the following acoustic principles: mass/ density, resilience/decoupling, void treatment, sealing, and flanking.

Mass and density amplify the transfer of impact noises while

56 CONDOBUSINESS | Part of the REMI Network

decreasing or absorbing the transfer of airborne noises. The presence of some mass is crucial in a floor/ceiling assembly.

Resilience and decoupling essentially refers to using an absorbing material between two dense materials to avoid creating a physical bridge that will conduct vibrations. This can provide great impact noise efficiency.

Unsealed cavities (air space) in the structure, such as uninsulated spaces between joists, amplify the transmission of sound by creating a drum effect. Treating these voids with some type of insulation increases the acoustic performance.

Seal any openings where the sound could infiltrate, especially in and around plumbing and ventilation. Where air can pass, so can sound. Construction quality affects the overall acoustical efficiency of the building.

Flanking refers to materials “vibrating” and conducting noises throughout the structure. There are multiple ways to mitigate the flanking. Some of the most common ones are decoupling the flooring and the baseboard moldings, and raising the flooring underlayment on the walls a bit so that the flooring never touches the walls. Other common strategies include installing acoustic ceiling suspensions, installing resilient bars on the walls to minimize the mechanical transmission of vibrations of the gypsum through the structure, and preferring the construction of partitions walls instead of single-frame or staggered stud walls.

Once these principles are understood, it’s possible to apply them to meet and even exceed acoustic expectations.

DEVELOPMENT

Choosing acoustic membranes Condo boards and management companies often underestimate the importance and the role played by the structure in the overall acoustic efficiency of a building. As an example, a wood-frame building has a completely distinct acoustical identity from a concrete building, which means that an underlayment can be the greatest choice for one but the absolute worst for the other. The key to finding the right underlayment is following four simple steps: • • • •

Identify what the precise structure of the building is.

Identify the floor covering to be installed.

Find the underlayment that better suits this particular need.

Provide data to the condo board.

Often, condo owners are asked to provide data on an underlayment rather than on a whole assembly using that underlayment. An acoustic rating should always be associated with an assembly, not a product.

Condo boards and management companies should always take into consideration the structure of the building when asking owners to provide data. Too often they ask for a performance that could never be achieved with a hard surface floor because they assume all structures are made equal. Plus, just because some manufacturers promote high ratings on their underlayment doesn’t mean that these

performances are actually obtainable. The key is in the details, in the fine print.

To recap, even though wood -frame condo buildings are technically subject to more noise transfer it is still possible to find the peace and quiet in these structures. Some builders pay more attention to details and have sound insulation at heart. It is just a matter of asking questions and doing due diligence.

When proceeding with a renovation, it is critical to find an acoustical membrane that has been adapted and tested for a wood-frame application. It is all about using the right product in the right place.

And finally, because a wood-frame building transfers noise differently than other types of buildings, condo boards and management companies should adjust their requirements accordingly. This approach could immediately lower the chances of complaints. 1 André Rioux is co-owner and vice-president of AcoustiTECH, a company that specializes in sound-insulation of multi-storey buildings. Since the company’s creation in 2000, he has been traveling all over Canada, the United States and the UAE to make presentations on acoustics to groups of architects, project AtrensCounsel_Condo_April_2016_FINAL.pdf 1 2016-04-07 managers, general contractors, flooring contractors and others.

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2:31 PM

SMART IDEAS

The next disruptive technology Could a new application that connects would-be home buyers and sellers become the Uber of real estate transactions? Its creators think so

RuListing is a new network that cuts out the real estate agent or middle man/woman by directly connecting buyers and sellers — kind of like the way riding-sharing apps take cab companies out of the equation. Prospective purchasers can build a wish list of what they’re looking for in a home, specifying items such as preferred neighbourhood. Then, would-be sellers can contact posters and strike deals instead of listing their home on the market.

“I recognized a problem when I couldn’t find anything interesting on the market and I wanted to connect directly with homeowners of homes not yet available for sale,” said Susan Joynt, founder of RuListing, in a press release.

The app can also be used by prospective lessees or renters, covers the commercial real estate market, too, and has the worldwide reach to connect buyers and sellers from Hong Kong to San Diego.

Network and wish list services come free while features such as a proprietary metric that gauges the seriousness of would-be purchasers come with premium membership.

“Virtually every industry has been reinvented with people-to-people networks that reset the value of traditional services,” said Joynt.

“The likes of Airbnb and Uber have transformed traditional industry business — the real estate industry is long overdue.”

RuListing offers an alternative to third-party representation and the commission fees that go along with it by connecting parties who may agree to forgo engaging a realtor. Plus, in markets such as Toronto, where fierce competition for tight supply already leads to bully bids, the app is touted as a way to expand choice by introducing would-be buyers to homes before they’re listed.

For more information, visit www.rulisting.com

58 CONDOBUSINESS | Part of the REMI Network

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