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#18805
Should the management agreement be part of a unit owner's records entitlement? 2017/12/13 12:01  
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#18806
Should the management agreement be part of a unit owner's records entitlement? 2017/12/13 22:14  
well worth reading.

PMCs may oppose having their rates out there for competitors to easier target & undercut. And some kvetchers may easier know & articulate what PMCs/managers have covenanted ( with the Corporation ) to perform/ refrain from performing. (No. I myself MIGHT not want my rates & covenanted obligations 'out there' if I were still a service provider. )

But so what ? The more transparency to ( owner/lender ) shareholders, how can owners be served other than better ?

This ain't legal advice, but examining/copying etc Management Contracts do not seem to challenge the categories of lawful Exceptions of records withheld from individual owners to examine/copy in Ontario's Condo act 1998 section 55(4).

Section 55(4) of Ontario's pre-amended Act long addressed records involving "employees of the corporation" as opposed overtly to arms-length contractors incl PMC. But it shielded employment administration stuff eg paid $ that date; got medical leave for . . . . etc ". So, what about access to arms length management contracts ?

Further, Part 3 of the Ontario Condo Act 1998's revised O.Reg 48/01 shows the new "minimum" contents of the incoming Information Certificates.

Suggests the Legislature wasn't pushing very hard for fluid transparency about these management agreements. . . .

OReg 48/01 Part 3 - Corporation / Information Certificates / Periodic information certificate

11.1 (1) In addition to the material specified in clause 26.3 (a) of the Act, a periodic information certificate of a corporation shall contain,


(a) the name and address for service of,

(i) the condominium management provider or the condominium manager, if any, with whom the corporation has entered into an agreement to receive condominium management services, and

(ii) any other person responsible for the management of the property;

Bottom line : Worthwhile reading Richard's article.
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#18810
Re:Should the management agreement be part of a unit owner's records entitlement? 2017/12/25 11:23  
If you are purchasing a new, yet to be built condo, the management agreement is part of the disclosure in the package.
Richard Forster
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#18812
Should the management agreement be part of a unit owner's records entitlement? 2017/12/25 22:11  
1- Merry Xmas from the "OFTEN-WILDER-than-condo" world of Building Schemes, which this year has delivered a gigantic Positive Covenant pronouncement from Ontario's Court of Appeal. ( Restrictive Covenant judgments may speak outside the merely "internal" statutory relations between condo/strata corporations & individual owners.

Crossing directly into condo & strata wars, that Toronto Appeal decision Black v Owen 2017 has already played some degree of importance in successful challenges by Alberta & BC condo/strata corporations. Freed from Declarant control these retroactively challenged what was contended to be one-sided - even rigged - Declarant created Shared Facility deals & oppressive parking monopolies. )

2 - This of course ain't legal advice :

About PMC Agreement disclosuring, I was unable to locate an express obligation in the existing or incoming Ontario changes to actually Disclose the literal text of the Management Agreement if any.

All I could find is an obligation to disclose a precis or brief summary of the Declarant's entrenched initial agreements which may include PMC.

Plus a disclosurable Initial Year budget which might isolate management fees. Please see below.

But a compulsory disclosure to new unit buyers or later core record, I couldn't find it. Maybe it's there somewhere else ? Or may be morphing into an overdue business practice.

3 - From the Condominium Act 1998 as amended ) PART V - SALE AND LEASE OF UNITS / Disclosure Requirements

. . . Disclosure statement

72 (1) The declarant shall deliver to every person who purchases a unit or a proposed unit from the declarant a copy of the current disclosure statement made by the declarant for the corporation of which the unit or proposed unit forms part. 1998, c. 19, s. 72 (1).

. . . Contents
(3) A disclosure statement shall specify the date on which it is made and shall contain, . . .

... (n) a brief description of the significant features of all agreements or proposed agreements mentioned in section 111, 112, 113 or 114 and of all agreements or proposed agreements between the corporation and another corporation;

Note: On a day to be named by proclamation of the Lieutenant Governor, clause 72 (3) (q) of the Act is repealed and the following substituted: (See: 2015, c. 28, Sched. 1, s. 62 (7))

. . . . (q) a copy of the budget statement described in subsection (6), unless the regulations provide otherwise

(s) a statement setting out the fees or charges, if any, that the corporation is required to pay to the declarant or another person; and

. . . . Budget statement

(6) The budget statement is a statement for the one-year period immediately following the registration of the declaration and description and shall contain,

From O.Reg 48/01

Part III.1

Sale and Lease of Units / Disclosure statement

17. (1) In addition to the material specified in subsection 72 (3) of the Act, a disclosure statement mentioned in that subsection shall include, . . .


At Forms website :
https://www.ontario.ca/search/land-registration?openNav=forms&sort=desc&field_forms_act_tid=condominium

( Select “Disclosure Statement, Table of Contents (under Subsection 72(4) of the Condominium Act 1998”

4 - Best wishes for a great 2018
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#18816
ToStar's condo law expert : PMC agreements are compulsory access & copiable 2018/01/01 12:30  
Without explanatory citations, the Toronto Star's condo law expert Gerry Hyman LLB Dec 30/17 advises a published questioner ( condo owner ) that the PMC management agreement is a "corporation record".

AND THAT as such it faces compulsory disclosure & copying etc. where requested by an owner/mortgagee of record etc.

AND THAT, he advises, such request is subject to enforceable records access measures including seeking penalty for refusals.

( Gerry Hyman's questioner claims that access to such PMC Agreement is being refused by governancers. )

Instead, going the Tribunal ADR route - with "records access" the only initial grounds of Tribunal involvement - this matter will eventually get answered as to a compulsory access right.

Separate from the "duration contracted ?" question to Gerry Hyman, PMC contracts have widely allowed for 60 day termination in Ontario anyway. But that's not what the questioner is apparently seeking to know about.

Correctly or not, Gerry Hyman appears to think PMC Agreements already trigger compulsory records access as a 'corporation record'. Some corporations apparently disagree & may be only too happy to keep stuff outasight . . . . )

Presumably, accessing the PMC Agreement might be seen ( by requesters ) to try to level the playing field among Directoral candidates, identify performance criteria, detect skimming/conflicts of interest/etc . . .

ToStar Dec 30/17 - See the final Q & A

“Alert police to threats, make directors stop verbal abuse.Superintendant’s bad behaviour should be dealt with in condo corp.’s declaration or rules, writes Gerry Hyman”

https://www.thestar.com/life/homes/advice/2017/12/30/to-request-your-condo-board-call-an-owners- meeting-dont-create-your-own-form.html
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