No first-time homeowner wants the horror of turning the key to their front door for the first time and discovering they have bought a condominium that is far more expensive to maintain, smaller, and lacks the amenities they were promised at sale.
The consumer protection laws for condominium residents are so weak that this awful and expensive scenario can happen and is happening in Ontario today.
This November, the Conservatives introduced a law that kills and delays the rollout of important consumer protection laws that would stop condominium owners from being ripped off.
Here are why these rules matter. When you live in a big condominium, the quality of your living hinges on how well the building is built, maintained, and governed.
When a building is poorly built by a developer who cut corners and misleads buyers on costs, managed by an investor-heavy condominium board with no personal stake in the longevity of the building, and poorly maintained by an unlicensed property manager, big problems arise. It is the condominium resident who pays the price.
Currently, developers do not have to be fully honest or transparent about the cost of fees that condominium residents must pay to maintain their home and building. This lack of transparency is resulting in big fee hikes to condominium residents.
It has resulted in condominium residents buying a home and then discovering the maintenance fees are far higher than the developer said they would be, putting them at financial risk.
It has resulted in homeowners in smaller units paying more in maintenance fees than homeowners living in larger units because developers get complete discretion on deciding how much each resident pays in.
It has resulted in condominium residents receiving a surprise nasty bill to cover a new maintenance expense because the builder does not set aside enough money in the reserve fund.
For over a decade now, there has been a movement of residents calling for stronger consumer protections. In 2015, the Ontario government introduced and passed laws to bring in stronger condominium protections, but ten years later, these sensible laws are still not in force.
It is time for the Ontario government to enforce the 2015 amendments to the Condominium Act and strengthen protections for buyers of condos by requiring developers to fully disclose accurate information about maintenance fees and the cost of maintaining a condo.
A stronger Condo Authority Tribunal, so residents can have their disputes heard and resolved in a quick, affordable, and fair manner, without going to court. Currently, the tribunal can only hear cases on a limited set of matters, such as pets, noise, odor, and storage. No one should have to spend $30,000 in legal fees just to get their condo board to hold a fair election or compel a property manager to fix a broken elevator.
The government should continue to improve the performance of the two regulatory agencies responsible for overseeing condo boards and property managers, the Condominium Authority of Ontario and the Condominium Management Regulatory Authority of Ontario.
If a resident has a valid concern, they should be able to call these regulatory agencies and have an impartial staff person listen to their complaint, investigate the issue, and enforce the law if they find wrongdoing. While these regulatory agencies have improved, they have work to do to meet this standard.
Now is the time to call on the Ontario government to strengthen the Condominium Act to protect condo owners and ensure they’re getting what they paid for. You can contact the Minister of Public and Business Service Delivery and Procurement here - [email protected].