Canada: The Amended Ontario Condominium Act - What To Expect

The Manager Licensing Procedure

November 1st is just around the corner and with it comes the mandatory licensing of condominium managers across the province through the Condominium Management Regulatory Authority of Ontario (CMRAO). In light of this, I'm focusing my continuing series on what this new administrative body is, the new requirements it'll be implementing and what actions will be required for new and existing condo managers.

Condo Management Regulatory Authority of Ontario (CMRAO)

As of November 1, 2017, every condo manager across Ontario will need to become licensed by the CMRAO. This administrative authority will be working closely with the Condominium Authority of Ontario to help improve the overall regulation of the condominium industry, and will be specifically responsible for the administration of the Condominium Management Services Act, 2015 (CMSA).

In addition to implementing and overseeing a mandatory licensing system for all Ontario condominium managers and condominium management service providers, the CMRAO will offer online services and information for condominium owners, regulatory oversight, and establish training and education requirements for condominium managers. It will also be charged with enforcing compliance with the CMSA and responding to complaints from the public about any of its licensees.

New requirements for Condominium Managers

As it currently stands, there are no minimum requirements in Ontario to provide condo management services. As a way of ensuring a consistent standard of reasonable competency and integrity, the province has enacted the CMSA. It will be under this Act that the mandatory licensing system for condominium managers will be established.

So what does this mean?

On November 1, 2017, existing managers will receive what is called a Deemed Transition License. This license will be valid for 90 days (or until January 29, 2018), after which point, you will not be able to legally provide condominium management services without having received a "real" license.

In order to obtain a "real" license, an application must be submitted online through the CMRAO website. In order to submit an application, you will need to create an account with CMRAO and pay an application fee, expected to be $150. Once your application is approved, you will be instructed to login to the system to pay your annual license fee, after which CMRAO will email your license to you.

What type of license should you apply for?

1 - General License

This license is for those who have two or more years of condo management experience and have completed the educational requirements of the Association of Condominium Managers of Ontario (ACMO).

In order to have the required experience, you must have been providing condominium services for two or more years within the previous five years AND you must have provided condominium management services within the previous 90 days of November 1, 2017.

To satisfy the education requirement, you must have successfully completed one of the following:

• Successful completion of the four courses developed by ACMO:

• Successful completion of ACMO's four Challenge exams (not required to complete the courses, available only if you have five years or more of condo management experience)
• Successful completion of ACMO's Registered Condominium Manager (RCM) exam

The fee for this license will be $607/year.

2 - Transitional General License

This license is for those who have 2 years or more of condo management experience but have not yet completed the educational requirements. This license will allow you to do the same work as a General License, and can be renewed on an annual basis as long as no more than 3 years have passed since the licence was issued.

In order to have the required experience, you must have been providing condominium services for two or more years within the previous five years AND you must have provided condominium management services within the previous 90 days of November 1, 2017.

This License will provide you with up to three years to complete either of the following education requirements, which would then make you eligible to apply for a General License:

• Successful completion of the four ACMO courses listed above
• Successful completion of ACMO's four Challenge exams

The last day you can apply for a Transitional General License is January 29, 2018.

The fee for this license will be $607/year.

3 - Limited License

This license is for those who have less than 2 years of condo management experience within the previous five years.

As there are currently no education requirements for obtaining a limited license, a limited licensee must work under the supervision of at least one General Licensee or Transitional Licensee.

The following conditions apply to those under a limited license:

• Must be supervised by a General Licensee or a Transitional General Licensee
• Cannot enter into a contract or an agreement without prior approval of a Supervising Licensee
• Cannot manage, control, or disburse more than $500 of general funds without prior approval of a Supervising Licensee
• Cannot manage, control or disburse reserve funds
• Cannot sign status certificates

In order to satisfy the required work experience, individuals must, within five years before submitting the application for general license, complete 2,290 hours of work experience, which include the following activities under the supervision of one or more supervising licensees:

1. Planned and participated in meetings of the board of directors of a client;
2. Planned and participated in meetings of owners, including at least one annual general meeting within the meaning of the Condominium Act, 1998;
3. Participated in preparing a budget for a condominium corporation that the applicant has presented to the board of directors of a client;
4. Interpreted financial statements for a client prepared under section 66 of the Condominium Act, 1998 and presented them to the board of directors of the client;
5. Prepared and presented reports to the board of directors of a client; and
6. Overseen the maintenance or repair of units, common elements within the meaning of the Condominium Act, 1998 or client assets, if any.

Once you have completed the required work experience and education, you may choose to apply for a General License. Either of the following, if completed within five years before submitting the application for a General License, would satisfy the education requirement:

• Successful completion of the four ACMO courses listed above
• Successful completion of ACMO's four Challenge exams

The fee for this license will be $607/year.

Condominium Management Provider License

Any corporation, sole proprietor, partnership, association or other organization that offers condominium management services will be required to obtain a condominium management provider license in order to continue providing their condominium management services beyond January 29, 2018. The fee for this license will include a $799 base fee + $350 per licensee employed by the firm.

About Mackrell International - Canada - MacDonald Sager Manis LLP is a full service business law firm in Toronto, Ontario and a member of Mackrell International. Mackrell International - Canada is comprised of four independent law firms in Alberta, British Columbia, Ontario and Quebec. Each firm is regionally based and well-connected in our communities, an advantage shared with our clients. With close relations amongst our Canadian member firms, we are committed to working with clients who have legal needs in multiple jurisdictions within Canada.

This article is intended to be an overview and is for informational purposes only.