CHANGING THE RULES YOU LIVE BY

Condo can't-do
Ground rules are essential when hundreds of strangers live in one building
By Helen Morris, National Post

Moving into a shiny new condo for the first time can be pretty exciting. If you have been renting for a while, now you have a place you can more or less call your own. If you are downsizing from a house, you may be pleased not to have to take care of your own garden, or look forward to decorating your unit.

But the people at the Ontario Ministry of Consumer Services who try to help consumers understand how condo legislation works want to make sure condo owners know their rights and responsibilities.

"Most condo owners are not terribly aware of what it is to own a condo and the responsibilities of owning a condo," says Vishnu Kangalee, manager of consumer services bureau, Ontario Ministry of Consumer Services. "There is so much misinformation about what the condo owner really does own and what they own in concert with the other owners of the condo corporation."

The Ontario government has launched an online survey (Ontario.ca/condos) to "take the pulse" of condo owners, in order to try to clear up some of the confusion.

"One of the misconceptions is that people think we are a government agency that regulates in the same way as the landlord-tenant board [would]. There's a big difference between being a condominium owner and a tenant," says Joseph Kavanagh, consumer services officer, Ontario Ministry of Consumer Services. A frequent question he receives is whether there is a maximum increase in common expense fees. "I have to tell them 'No'," he says. "It's not like landlord-tenant legislation where landlords can only raise the rent a certain percentage every year. In condominiums, if you don't like the way the board is operating, you vote them out."

According to the Canadian Condominium Institute, misunderstandings can take root even before condo owners move in.

"There needs to be some very significant changes to the pre-purchase information. Information is provided by the barrel load," says Mario Deo, vice-president, Torontochapter, Canadian Condominium Institute, but "the problem is, the purchasers don't understand what it means. They're caught up in the euphoria of purchasing a condominium unit."

Mr. Kangalee says that condo purchase documents are incredibly complicated and abstruse. His colleague agrees there is complexity.

"Number one," Mr. Kavanagh says, "we always advise consumers who are buying a condominium to consult with a lawyer or real estate professional at least during the 10-day cooling-off period, so they can go through the documentation."

Once you move into the condo, many aspects of how you live will now be subject to the condominium documentation.

"The main big difference is when you're owning your own [house], you're not subject to [any restrictions within] the condominium documentation," says Mr. Deo. "There can be hundreds of restrictions, but the main ones are repairs, insurance, how you deal with your neighbours, pets, how you decorate and renovate and the use of your property. All of that is not controlled as much when you own [a house, though] of course there are municipal by-laws, etc."

Mr. Kangalee says some consumers who call his office misunderstand how condo ownership works.

"There is no direct ministerial role here. This is what is known as a declarative statute. It states what the law is. Condo owners are the owners of the corporation, they run the corporation, it's like a microcosm of a democracy," Mr. Kangalee says. "They elect the board of directors and it's incumbent upon them to ensure the efficient functioning of the corporation by being proactive and taking part in the meetings and voting. They even have the authority to vote out directors if they are unhappy with them. There are a lot of consumer protection rights given to them in the Condominium Act."

Mr. Kangalee emphatically states that, should a condo owner have a dispute with their board, on no account should he or she refuse to pay their monthly fees. The board can get a lien on the unit and even sell it if the fees aren't paid.