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Changes to the Condo Act: What Changes Have NOT Been Implemented Yet

On November 1st, 2017, the province “turned on” many of its new legislative provisions affecting the condominium industry. Last week, we blogged about the changes which have been implemented. This week, we blog about those changes which have not been implemented yet. For all of the items listed below, we are still under the “old” version of the Act.

Adoption of budgets

Oddly enough, provisions imposing new obligations dealing with the adoption of annual budgets are not in force yet. When they get implemented, corporations will have to adopt their budgets at least 30 days before the end of the fiscal year and will have to circulate them to owners within 15 days of such adoption. Click here for more information on these new obligations related to the adoption of budgets.

Insurance deductible by-laws

Expect significant changes to the obligations to repair units after damage and to the insurance regime applicable to condo units. Specifically, much ink has been spilled over how corporations will be able to deal with insurance deductibles and whether existing Insurance Deductible by-laws will be grandfathered. we are still under the old regime.  In our view, this means that corporations have more time to adopt or amend their existing insurance deductible by-law — with the assumption that the existing ones will be grandfathered when the new insurance regime is eventually turned on.  Stay tuned….   We have blogged about this already.

Provision prohibiting penalties and fines

The provisions preventing corporations from imposing fines, levies and penalties on owners and occupiers of units have also not been turned on yet. Arguably, such fines, levies and penalties were already prohibited under the “old” version of the Act.  I’m not sure why this section was not turned on.  Seems like it would have been an easy one to implement.

Modifications to common elements

Another oddity, changes to sections 97 and 98 of the Act have not been turned on yet. These sections will change how corporations can implement changes to common elements or assets of the corporation or to services provided by the corporation. The question of what is a “substantial change” and what owners’ support is required before implementing such changes remain under the old regime. Similarly, the process to be followed by owners wishing to make changes to common elements remains the same for now.

Requisition of meetings

Eventually, the process to be followed by owners requisitioning a meeting of owners (and the process to be followed by boards receiving such requisitions) will change significantly. These changes are not in force yet and the requisitioning of owners meeting is still under the old regime. Click here for more information on the changes to be expected to meeting requisitions.

Prohibited activities and nuisance

Another oddity, the new version of section 117 is not in force yet. When it is “turned on”, it will prohibit any activity or condition in units or common elements which is likely to damage the property or to cause an injury or an illness to an individual. It will also prohibit noise, nuisance, annoyance or disruption to other individuals.  Until this section is turned on, corporations can continue to rely on their governing documents and, in some cases, on section 117 which prohibits activities which are likely to damage property or cause injury to an individual. The old prohibition is therefore more narrow.

Opposing additional contribution to common expenses

In some cases, owners will be able to apply to the courts or to the Condo Tribunal to oppose the addition of certain common expenses to their ledger. We do not know as of yet, which additional expenses the owners will be able to contest.  This will be set by regulation. In any event, this provision has not been implemented yet.

Many more changes not in force yet:

Below is a list of more provisions under the Condo Act which are not in force as of yet.  Please note that the list below is not exhaustive. It is best to consult with your condo lawyer to ensure you apply the provisions in force.

  • Condo Annual Return: eventually, condo corporations will have to file annual returns with the CAO Registrar.  This is not required yet. Click here for more info on these yearly returns;
  • Mandatory licensing of managers: Eventually, it’ll be illegal for corporations to enter into an agreement with condo managers (or management providers) who are not licenced. This will be turned on on February 1st, 2018, once the mandatory licensing of managers has been fully implemented.  Click here for more information on mandatory licensing of managers;
  • Procurement process: The provisions dealing with procurement process for certain contracts are not in force yet;
  • Non-lease voting units: The provisions modifying how non-lease units will be able to vote have not been turned on yet.
  • Right of entry in units: The provisions permitting a corporation to enter units to perform the object and duties of the corporation are still underthe old regime;
  •  Standard unit bylaws: The changes pertaining to Standard unit by-laws have not been implemented yet. We have blogged on this already;

We certainly are living interesting times. Stay tuned as we continue to report on the various (and numerous) changes to condominium related legislation.

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