As of November 2017, with the establishment of the Condominium Management Regulatory Authority of Ontario (CMRAO) and the introduction of the Condominium Management Services Act, 2015 (CMSA), all condominium managers and condo management companies must now be licensed to carry out condominium management services.
There are many condominium projects that consist of a mix of condominium corporations and commercial/retail buildings or space. Since services and components may be shared between the different properties, these shared items are often defined under a shared facilities agreement, cost sharing and easement agreement or a reciprocal agreement. In most cases the shared components are managed either by a third party management company or a management company that may be managing one of the properties.
CMSA requires that where “condominium management services” are provided, that the provider must be licensed.
Condominium management services are defined (in part) as making payments to third parties on behalf of a condominium corporation, negotiating or entering into contracts on behalf of a condominium corporation or supervising employee or contractors hired or engaged by a condominium corporation.
Any management company retained to perform services for shared facilities would be retained by the parties to the shared facilities (reciprocal/cost sharing) agreement which, if one party is a condominium corporation, would then result in those management services being performed on behalf of a condominium corporation (even in part).
Since many projects involve condominium developers who may retain properties that form part of the shared facilities and currently manage those shared facilities, this could result in a contravention of CMSA and the requirement for condominium management licensing. If you are currently in this position, it would be wise to seek immediate legal advice.
