As environmental standards in the building industry continue to rise, buildings face increasing pressure to enhance the performance and sustainability of their buildings. For many, the path to meeting these new standards can seem overwhelming, especially given the financial and structural challenges of upgrading aging infrastructure. Leading the way in innovative solutions is RDH Building Science, a firm dedicated to making this transition both achievable and beneficial for owners. In this article, we explore RDH’s forward-thinking approaches, from developing long-term, customized energy reduction plans to leveraging advanced building science technology. With insights from RDH’s Ian Miller, we dive into how these innovative strategies not only help buildings adapt to current demands but also prepare them for a more sustainable future. RDH’s Evolving Approach to Building Performance in Condominiums   Canada has introduced a net-zero carbon emissions plan to be achieved by 2025 with reduction policies implemented as early as 2030. Shifting to net-zero emissions is no easy task for condominium buildings, particularly older buildings. It’s important for corporations to recognize this and start working on their plans now. RDH offers support to these corporations through their comprehensive services and long term reduction plans tailored to each corporation and their financial capacity.  RDH has evolved to make key changes to implement better energy efficiency projects for all types of buildings. Notable changes include updated design processes, advanced systems integration, innovative building materials that better support energy conservation, and retrofitting plans.      Advancements in Building Enclosure Technology   The evolution of building materials has led to several advancements in the building science industry. We will explore details when discussing RDH’s Building Science Laboratory. These advancements can be seen on both small and large scale projects. For instance, the majority of older buildings utilize gas heating systems. The transition from gas to electric heating systems is a large upfront expense, which can be daunting for condominiums and buildings on a budget. However, the implementation of electric heat pumps and furnaces have huge potential for energy efficiency improvements and cost savings. Upgrading these systems provide energy efficiency savings, safety and maintenance savings, and of course, less greenhouse gas emissions. These systems are also more compatible with renewable energy sources like solar and wind, helping buildings move towards net-zero energy consumption. Though these larger scale projects are a greater upfront cost initially, the long term savings can be significant.   Not every project has to be a capital project. Ian and I discussed the concerns buildings on a fixed budget, specifically condominium corporations, have regarding the transitions to net zero. RDH works with clients to build net zero plans, starting with the smaller steps! This can be as minor as updating lighting, reviewing the building envelope, air balance testing, and more. From large to small, these projects bring value to buildings through future cost savings and resident comfort.  Overcoming Challenges in Aging Condominium Infrastructure   It’s no secret that the economy these past few years have affected building and condominium owners. Corporations are inclined to keep fees low and stay on budget to keep owners happy. This is arguably the greatest challenge facing buildings and the transition to net zero emissions. RDH acknowledges that corporations need long term plans and strategies to address these updates. RDH will work with corporations to implement these advancements over time, allowing for adequate budgeting and reserve fund studies to be updated and implemented.  Other than financials, building structures, outdated systems and energy inefficiencies are challenges for buildings seeking to retrofit. Poor building structure and outdated systems are typically presented in efficient building envelopes. Such as poor insulation, leaky ductwork, poor air sealing, single-pane windows, and dated HVAC systems. Ian confirmed that these examples are the most commonly found pain points in dated, and at times newer, buildings. These issues can lead to serious sustainability and resident comfort concerns. It’s important for buildings to identify these concerns and work towards updates.   RDH can identify these areas of concern and create a manageable implementation plan, as well as demonstrate cost-saving examples and potential timelines for corporations to show owners achievable results and savings.   Future Trends in Condominium Design and Maintenance   Though there are many routes buildings can take to achieve net zero emissions, Ian stated that the trend at the forefront is transitioning from gas to electric heat systems. As buildings push toward reducing carbon emissions, electric heat pumps offer a cleaner alternative by eliminating fossil fuel reliance. These systems provide both heating and cooling, making them an attractive choice for year-round comfort. Additionally, advancements in heat pump technology are improving their efficiency and performance, even in colder climates, which was once a barrier to adoption. As building codes and incentives increasingly favour electric solutions, many condominium developments and retrofits are expected to integrate heat pumps, aligning with broader environmental goals and offering residents lower operating costs over time. RDH works with developers and architects to create progressive and sustainable building concepts from the early stages of planning. It’s important to consider these factors as early as the conception phase of a building.  The Role of the RDH Building Science Laboratory   The RDH Building Science Laboratory is one of the more intriguing services provided. The Building Science Laboratory provides a range of research, testing, and education services, breaking down complex data to enable informed decision-making based on science. When asked about instances when the laboratory is used, Ian discussed how commonly it’s used to assess the quality and longevity of building materials. For instance, the quality of bricks has changed over time due to the new era of engineered brick. To get a realistic timeline and study of the building’s envelope efficiency, RDH can remove a brick from the building, assess it in the lab and determine the efficiency of the brick, its moisture retention levels, and more. The lab serves as a great tangible asset to clients looking to get a realistic look at their building and its sustainability.  In a rapidly evolving landscape of environmental standards and sustainability goals, RDH Building Science stands at the forefront, equipping buildings with the expertise and tools needed to navigate the shift toward greener, more efficient buildings. Through an innovative blend of advanced engineering, tailored financial strategies, and a commitment to future-ready solutions, RDH helps address the unique challenges of aging infrastructure while enhancing resident comfort and reducing energy costs. From small-scale lighting upgrades to significant overhauls like transitioning to electric heating systems, RDH’s comprehensive approach exemplifies the power of proactive planning and adaptive design. As more buildings embrace these progressive solutions, RDH's role will remain essential in helping communities create resilient, sustainable living spaces that align with broader environmental goals for years to come. At Bloom & Co. Property Management, we are always looking to make progressive steps forward and assist clients in achieving their financial and sustainability goals.

Managing a condominium is no small task, and when undertaking projects—whether they involve maintenance, renovations, or major infrastructure improvements—the choice of vendors can make or break the success of these initiatives. While it may be tempting to cut corners and save money by selecting the lowest bidder or a quick-fix solution, choosing vetted and quality vendors is crucial for maintaining the property's integrity, safety, and long-term value. Let’s find out why selecting the right vendor is important and learn more about Bloom & Co.’s commitment to vendor compliance through our partnership with VendorPM! Ensuring Compliance with Regulations Condominiums are governed by a complex set of rules and regulations that must be adhered to, including local building codes, safety standards, and possibly even environmental regulations. Vetted and experienced vendors are familiar with these requirements and will ensure that the project complies with all legal and regulatory standards. Hiring unvetted vendors who are unaware of or ignore these rules can lead to fines, legal issues, and safety hazards that could cost far more than the savings initially gained. Safeguarding Property Value Condominium properties are significant investments, and maintaining their value is a top priority for property managers and residents. Subpar work or the use of low-quality materials can have a detrimental effect on property value, leading to costly repairs, dissatisfied residents, and potential issues when it comes to resale. On the other hand, working with high-quality vendors ensures that projects are completed to a high standard, using durable materials and workmanship that will stand the test of time. Protecting the Safety and Well-Being of Residents Safety is of paramount importance in any residential property, particularly in condominiums where shared spaces, infrastructure, and utilities are involved. Vetted vendors are more likely to follow safety protocols, carry the proper insurance, and employ trained professionals who understand the importance of delivering a safe and secure project. In contrast, poorly qualified or inexperienced vendors may cut corners, compromising the safety of the building’s residents. Minimizing Project Delays and Cost Overruns Poorly executed work often leads to delays, rework, and cost overruns, which can cause frustration among residents and disrupt the daily operations of the condominium. Quality vendors bring expertise, project management skills, and reliable timelines to the table, ensuring that the job is done right the first time. Their experience also allows them to anticipate potential issues and address them proactively, keeping the project on track and within budget. Accountability and Warranties Vetted vendors typically stand behind their work and provide warranties or guarantees on the services they offer. This level of accountability means that if something goes wrong after the project is completed, the vendor will be responsible for making it right, without additional cost to the condominium association. Unvetted vendors may not offer this level of assurance, leaving the association vulnerable to unexpected costs and repairs. Enhancing Resident Satisfaction Condominium residents expect their management team to maintain the property at a high standard. When residents see that quality vendors have been selected, it reassures them that their investment is being well taken care of. Conversely, visible issues such as faulty workmanship or ongoing delays can lead to dissatisfaction, complaints, and even disputes with the condominium board. Choosing trusted, quality vendors can help enhance resident satisfaction and foster a positive community atmosphere. Long-Term Savings While choosing high-quality, vetted vendors may involve higher upfront costs, it can lead to significant savings in the long term. Durable materials, skilled workmanship, and projects completed on time and within budget, all contribute to fewer future repairs, maintenance costs, and interruptions. In contrast, poorly completed work can lead to frequent breakdowns and expensive fixes, eroding the financial health of the condominium association. Reputation Management A condominium’s reputation can be impacted by the quality of work done on its projects. Poor quality or unsafe work can damage the reputation of the property, reducing its appeal to potential buyers or renters. On the other hand, a well-maintained property that has undergone quality upgrades or renovations adds to its prestige and attractiveness. Working with vetted vendors helps to protect the reputation of the condominium, ensuring it remains a desirable place to live. At Bloom & Co., we’ve partnered with VendorPM to ensure our condominium corporations get the most competitive quotes from reliable, vetted vendors. Dylan Sher from VendorPM gives a sneak peek into VendorPM’s process and commitment to quality: “ When we started VendorPM, helping property managers pick the right vendor was core to our mission. It became evident to us very quickly that not all vendors offer the same level of quality and choosing the wrong vendor can lead to costly mistakes that come directly at the expense of property management or the board members themselves. One of the most highly demanded features we have today is our vendor management and compliance product. As property management has continued to evolve and progress, it became abundantly clear to our property management partners that there are much better ways of ensuring vendors have the correct compliance information compared to the unchecked paper processes that existed in the past. Now, in one workflow, vendor insurance expiry dates, coverage amounts, WSIB status and any other custom compliance requirements are now all tracked in real-time and factored directly into the quoting process when hiring vendors. Whether working with new or existing vendors, for many property managers, the idea of working outside of VendorPM is now viewed as the Stone Age and the risks and costs of doing things the “old-fashioned way” are simply too high to entertain. Bloom and Co recognized this gap and was one of the early adopters of VendorPM to solve this problem for their clients.”  Understanding Section 89 of the Condominium Act: A Key to Vendor Selection When it comes to managing condominium projects, it's not just about selecting vetted and quality vendors—boards and owners must also be aware of their legal obligations under the Condominium Act. In particular, Section 89 of the Act, which addresses repairs and maintenance responsibilities, is crucial. Section 89 states that a condominium corporation is responsible for maintaining and repairing common elements, ensuring that these areas are kept in a good state of repair. This legal requirement means that condominium boards must prioritize selecting vendors who are not only qualified but also fully compliant with all regulatory standards. Failing to do so could result in legal liabilities for the board and financial consequences for the owners. By selecting vendors who understand and comply with the legal standards outlined in the Act, boards can avoid costly mistakes and ensure that their maintenance obligations are met in a way that protects the property and the interests of all residents.  In short, when choosing vendors, condominium boards and property managers should review and understand their responsibilities under Section 89 of the Condominium Act to ensure that the chosen vendor can deliver on both quality and legal compliance. At Bloom & Co., choosing vetted and quality vendors is not just good practice; it’s essential for the long-term success of condominium projects. From ensuring compliance with regulations and protecting property values to safeguarding the safety of residents and minimizing costs, working with the right vendors brings peace of mind and lasting results. Condominium associations and management teams should prioritize due diligence in selecting vendors, recognizing that quality workmanship is an investment that pays dividends for years to come.

Commercial property owners in Ontario can gain substantial financial benefits through Canada’s Clean Technology Investment Tax Credit (CTITC), an incentive designed to promote energy efficiency and sustainability in the built environment. Under this program, eligible clean technology investments can earn property owners a refundable tax credit covering up to 30% of installation costs for technologies like solar panels, energy-efficient HVAC systems, battery storage, and other green infrastructure installed between now and 2033, this rate reduces to 15% for installations in 2034 and phases out thereafter. The CTITC encourages commercial owners to adopt technologies that not only reduce greenhouse gas emissions but also cut operational costs over time. For instance, installing solar panels or energy-efficient heating can significantly reduce energy expenses, which can make properties more attractive to tenants and boost long-term property values. Additionally, since the CTITC is refundable, owners can receive a tax credit that offsets other income tax liabilities, offering a direct reduction in project costs. To maximize the benefits, property owners should ensure they meet certain labour and installation criteria, like using certified trades and adhering to specific project standards. Meeting these requirements not only qualifies installations for the higher rebate rate but also aligns with green-building certifications, which can further enhance the appeal of a property in the current market focused on sustainable practices. Here are five practical ways for Ontario commercial property owners to utilize the Clean Technology Investment Tax Credit (CTITC) to gain significant tax benefits: 1. Installing Solar Panels and Renewable Energy Systems Solar panel installations qualify for the CTITC and can earn up to a 30% tax credit on installation costs. By converting to solar energy, property owners can reduce their reliance on traditional energy sources and cut down on utility costs. The initial setup can be expensive, but the tax credit helps offset costs while supporting long-term savings. 2. Upgrading HVAC Systems Installing high-efficiency HVAC systems, which improve heating and cooling efficiency, is another eligible improvement under the CTITC. These systems lower energy consumption by up to 30%, reducing costs and greenhouse gas emissions. Property owners who install such systems can enjoy substantial tax credits, offsetting part of the upfront investment and benefiting from reduced operating expenses. 3. Battery Storage Installation Battery storage systems that allow buildings to store excess energy from renewable sources, such as solar, are also eligible. Battery storage can manage energy distribution more effectively and reduce peak energy costs. The CTITC covers a portion of these installation costs, encouraging property owners to adopt technologies that stabilize energy use and improve sustainability. 4. Implementing Energy-Efficient Lighting Retrofitting existing lighting with LED or smart lighting systems qualifies for the tax credit as well. LEDs consume up to 80% less energy than traditional lighting, and installing them throughout a commercial property can result in lower utility bills and operating costs. The tax credit helps reduce the initial expense, allowing for a faster return on investment. 5. Integrating Building Automation and Control Systems Smart building systems, which include automated controls for lighting, HVAC, and energy monitoring, can also qualify for tax credits. These systems optimize energy use, reduce waste, and enhance building performance by ensuring that systems run only when necessary. The CTITC supports investments in such advanced technology, which can yield substantial long-term savings and appeal to sustainability-focused tenants. Maximizing the CTITC Benefits To qualify for the highest tax credit rates, it’s essential to adhere to labour requirements, such as using certified tradespeople. This ensures compliance with program standards, making the investment not only financially beneficial but also a competitive advantage in attracting eco-conscious tenants and buyers. More details on eligibility requirements and claim processes are available through resources like the CT ITC information  website. By strategically selecting energy-efficient projects eligible under the CTITC, commercial property owners can make substantial improvements while enjoying financial incentives that enhance their property’s value and sustainability. Part of our role as dedicated managers is to assist with retrofitting projects, including the upgrades mentioned in this article. At Bloom & Co., we are committed to providing our clients with up-to-date information and ways for them to optimize their properties to ensure the longevity of their investments.

Recent years have shown that condominium owners in our service area feel less informed than ever before. Purchasing a condominium unit means more than purchasing a home; owners join a community governed by the Condominium   Act,   1998,  and the governing documents can be overwhelming. We reached out to our boards of directors to better understand the common questions condominium owners are asking. The boards provided valuable insights, raising important topics for discussion. To delve deeper into these questions, we collaborated with Chris Mendes of SV Law LLP for expert guidance. Check out the top 5 questions asked by condominium owners below! What are my rights as a condominium owner in the case of a dispute or legal issue? In a communal living environment, such as a condominium, disputes can arise in several circumstances and scenarios. There can be disputes between individual owners, owners and the condominium corporation, and disputes between the condominium and third parties, such as the condominium’s developer (known as a “declarant”). Generally, owners have the right to the peaceful use and occupation of their units and the common elements, subject to the provisions of the Condominium Act, 1998  (the “Act”), a condominium’s declaration, by-laws and rules. These documents form the foundation on which the condominium community rests, and which set out the conditions and restrictions which govern the use of the units and common elements. For example, a condominium’s declaration and rules can contain conditions such as the number and size of animals owners are permitted to keep, how the units can be rented out (i.e. no Airbnbs) and can prohibit unreasonable noise, smoking and nuisances. A condominium’s board, elected by the owners, has an obligation to ensure the provisions of the Act and a condominium’s governing documents are enforced. Owners have both the duty to comply with these documents and the right to require condominiums to enforce them. The Act provides for three (3) dispute resolution mechanisms when there is disagreement between owners and/or the condominium. First, for violations of the Act itself, a condominium or an owner can bring their dispute to the Ontario Superior Court of Justice. This process is used in circumstances such as where someone has caused a dangerous condition, where someone has made unauthorized changes to the common elements, or where an individual believes they have been treated oppressively. Second, for specific disputes, an owner or condominium can bring their matter before the Condominium Authority Tribunal (“CAT”). The CAT is a specialized tribunal which hears and resolves disputes related to (i) noise/nuisances; (ii) smoke or odours; (iii) light or vibrations; (iv) parking and vehicles; (v) storage; or (vi) access to records. For all other disputes, the Act requires that the parties engage in mediation. Mediation is a process whereby a neutral third party assists the parties in reaching a resolution, without forcing a decision. If mediation is not successful, then arbitration is required. Arbitration is a process whereby an appointed arbitrator hears the evidence and makes a final determination. As disputes in a condominium setting can often cover multiple interrelated issues, it is important to seek legal advice on your specific circumstances to ensure you are headed in the right direction. Can Boards make decisions about major contracts that affect the community without consulting the owners? Like all legal questions, the answer is “It depends”. Generally, boards, elected by the owners, are tasked with the governance of the condominium corporation, including setting their budgets, entering and negotiating contracts, and managing the property. Provided boards are acting within the authority granted by the Condominium Act, 1998 , and comply with their governing documents, boards are given wide discretion to make the decisions they feel are in the best interests of the Condominium, without consulting the owners directly. A court, for example, will not reverse a condominium board’s decision or replace the decision, unless the board has acted outside of its authority or contrary to the Act. This is referred to as the “business judgment rule”. Boards, like all democratically elected bodies, are accountable for their decisions at election time. There are, however, situations where boards cannot make decisions without consulting with the owners or conducting a vote of the owners. For example, a condominium cannot borrow money from a bank or lender without first passing a by-law. By-laws under the Condominium Act, 1998 , require an owners’ meeting and the positive vote of a majority of all units. Another example is that a condominium cannot make changes to the common elements, changes to the services provided to the owners, or changes to the assets of the condominium unless section 97 of the Condominium Act, 1998  is followed. This section sets out how a board can make these kinds of changes, and such depends on the costs of the change. If the costs are below 1% of the condominium’s annual budgeted common expenses, a board can make that change without input from the owners. If the costs are between 1 and 9% of the budgeted common expenses, a board must first send notice to the owners containing the details of the change which gives the owners the right to call a meeting to vote on that change. If the costs are 10% or more of the budgeted common expenses that change is “substantial” and before that change can be made 66.66% of all owners must vote in favour of this change. The Condominium Act, 1998  balances the rights of owners, with the practical realities that a board must manage the condominium and be accountable to the owners at election time. What happens if no one volunteers to serve on the Board? Condominiums are democracies. The board is elected by the owners (typically at the annual general meeting) to govern the condominium, make decisions on behalf of the condominium, and ensure that the Condominium Act, 1998  (the “Act”) and the condominium’s governing documents are adhered to. Much like how Canada could not function if no one ran for parliament, a condominium cannot function without a board. A board must also have a quorum in order to operate. Quorum is a majority of the positions on the board. For example, if a condominium’s by-laws provide that the board consists of five (5) members, there must always be at least three (3) directors for the board to function. If a board loses quorum, section 34 of the Act requires that the remaining members of the board call a meeting within thirty (30) days of losing quorum, for the owners to elect enough directors to constitute a quorum. If the remaining members of a board do not call such a meeting, an owner may, including when there are no remaining directors. In rare circumstances where there is no one willing to run for a position on the board, section 131 of the Act permits any owner to bring an application to the Superior Court of Justice, asking the Court to appoint an administrator. The Court will only appoint an administrator if, among other things, it is in the best interests of the owners. The Court will specify the powers and duties of the administrator. A recent case, Laxmi Real Estates Inc., v. Toronto Standard Condominium Corporation No. 2470 , 2024 ONSC 5143, sets out the test the Court will apply to determine if an administrator will be appointed. An administrator may only be appointed where: There is a demonstrated inability of the board to manage the corporation; There is substantial misconduct or mismanagement, or both; There is a need to bring order to the affairs of the corporation; There is the existence of a struggle within the corporation amongst competing groups which impedes or prevents proper governance; and (among others); Whether only the appointment of an administrator has the proposed of bringing order to the affairs of the condominium. This is a high threshold to meet, and condominiums should strive to have board members elected by the owners before applying to a court. Many owners have also asked whether condominiums can retain outside individuals to be board members where there are no owners willing to serve. Section 29 of the Act sets out the qualifications for an individual to serve on a condominium’s board, however, being an owner of a unit within the corporation is not a necessity. A condominium’s by-laws, pursuant to section 56(1)(a) of the Act, can expand on these qualifications. Before a non-owner can run and serve on a board, the condominium’s by-laws should be reviewed. If there is no restriction in the by-laws, then outside/non-owners are permitted to be on a board, provided they are elected. If a condominium is considering electing “professional” board members it should be noted that before a director can be paid for their services, a by-law is required. Like most by-laws, such requires an owners’ meeting and the positive vote of a majority of all owners. Even if such a by-law is passed, director remuneration by-laws are only valid for three (3) years. What are the responsibilities of a condominium board versus the responsibilities of individual owners with respect to reporting to management and/or completing site inspections? As referenced above, section 17 of the Condominium Act, 1998  (the “Act”) sets out the duties of the condominium, as governed by its elected board. These duties include (but are not limited to): Managing the property and the assets, if any, of the corporation on behalf of the owners; Controlling, managing and administering the common elements and assets of the corporation; and, Taking all reasonable steps to ensure that the owners, the lessees, and the agents and employees of the corporation comply with the Act and the condominium’s declaration, by-laws, and rules. While a board remains ultimately responsible for the condominium, often many of the day-to-day operations of a condominium are delegated to a condominium manager (with board oversight). Condominium managers are governed by the Condominium Management Services Act, 2015 , and the provisions of a condominium management services agreement. This agreement will set out the specifics of a manager’s duty, which can include quarterly site inspections, overseeing common element repairs, and taking initial efforts to enforce a condominium’s governing documents. That said, neither boards, individual directors, nor condominium managers can be omnipresent. Owners, who reside in their units, are at the condominium every day and are more likely to note potential issues faster, or more frequently than a condominium manager can during scheduled site inspections. While a discovered issue may be one a condominium is ultimately responsible for, it is important to note that condominiums are communities. Owners, boards and condominium managers need to work together to ensure that the corporation functions and is responsive to owners’ needs. If an issue is noted by an owner, it is important to bring it to the attention of management either through a friendly call or email. Such can ensure issues are not missed. As an owner, what happens if I can’t pay the monthly fees or special assessments? The Court has found that the common expenses (i.e. monthly fees or special assessments) are the lifeblood of a condominium. A condominium cannot function without them. Unlike business corporations, which have revenue from business operations, condominiums only have common expenses. Common expenses are used for the maintenance of the property, the retention of contractors, payments for services rendered to a condominium, the reserve fund contributions and to keep the lights on (among other items). Section 84 of the Condominium Act, 1998 (the “Act”) provides that all owners must contribute to the common expenses in the proportion outlined in a condominium’s declaration. These percentages are typically found in the schedules to a declaration (namely Schedule “D”). An owner cannot opt out of, or be exempt from the obligation to contribute, even if that owner has waived or abandoned a right to use the common elements, is making a claim against the condominium, or the declaration limits the use certain owners can make of the common elements. As all owners must contribute to the common expenses in their declaration percentage, if one owner does not pay, it hurts all other owners – the other owners must pick up the tab, so to speak. This results in unfairness to all other owners. To deal with this unfairness, and in recognition that common expenses are the “lifeblood” of a condominium, section 85 of the Act prescribes how non-payment is addressed. Under section 85 of the Act, when an individual does not contribute, the condominium has a lien upon the defaulting unit. This lien covers the costs of the arrears plus all interest and expenses incurred in collecting the unpaid amounts. The lien is registered on title to the unit in question and has priority over all other debts, including the mortgage (with very limited exceptions). If a lien is not paid it is enforced in the same manner as a mortgage which, in extreme circumstances, can include power of sale proceedings. This process ensures that condominiums (and therefore all other owners) are made whole. We extend our sincere thanks to Chris for taking the time to sit down with us and explore these important topics. SV Law, a local firm specializing in condominium law, provides valuable assistance to both owners and corporations in navigating condominium-related matters. Having strong legal representation is a crucial asset for condominium corporations, offering clarity on all issues, including those discussed above. At Bloom & Co., we prioritize client education and recognize the importance of transparency. Our mission is to ensure the management of well-informed and satisfied condominium corporations.  *The above does not constitute legal advice and is intended for information purposes only. For specific questions and legal advice, consult with a lawyer.

Owning a condominium unit can be an exciting investment, offering the perks of homeownership with shared responsibilities for common areas. However, many condo owners overlook a critical aspect of protecting their investment: insurance.  While your condominium corporation provides insurance for the building and common areas, securing individual condo insurance for your unit is essential. Here’s why having insurance for your condominium is a must, and what could happen if you don’t have it. Coverage Beyond the Association’s Policy Your condominium corporation’s master policy likely covers damages to the building’s exterior and shared spaces, as well as liability for incidents in common areas. However, this policy usually does not extend to the interior of your unit, personal property, or certain types of liability claims. For example, if a fire damages your unit or your belongings are stolen, the master policy won’t cover these losses. Condo insurance, often called a homeowner insurance policy, fills the gaps by protecting your unit’s interior and personal possessions. Protection for Your Personal Belongings One of the most significant benefits of condo insurance is protection for your personal belongings. From furniture and electronics to clothing and jewellery, insurance can cover the costs to repair or replace your personal property if it’s damaged or stolen. Imagine a situation where a burst pipe floods your unit, damaging your valuable items. Without proper coverage, you’d be left paying out of pocket for replacements. With condo insurance, you’ll have peace of mind knowing that your possessions are covered. Interior Unit Protection Unlike the building's exterior, the interior of your condo unit is often your responsibility. This means that if there is damage to fixtures like flooring, walls, or cabinetry, the association’s insurance won’t cover repairs. Condo insurance helps ensure that if an unexpected event like a fire or vandalism damages the inside of your unit, you won’t be stuck paying for costly repairs. Liability Coverage Accidents happen, and if someone is injured inside your unit, you could be held liable for medical expenses or legal fees. Liability coverage included in your condo insurance policy protects you if someone is injured in your unit or if you accidentally cause damage to another person’s property. For instance, if a guest slips and falls while visiting, your liability insurance can cover medical costs and legal defence if you’re sued. Loss of Use Coverage Condo insurance often includes coverage for additional living expenses, commonly known as "loss of use" coverage. If your condo becomes uninhabitable due to a covered event like a fire, this coverage will pay for temporary living expenses such as hotel stays and meals. Without this coverage, you’d have to bear the financial burden of finding alternative housing while your unit is being repaired. Mortgage Requirement In many cases, if you’ve financed your condo with a mortgage, your lender may require you to carry condo insurance. Lenders want to ensure that their investment is protected in the event of damage to your unit. Even if it’s not mandated by your mortgage company, having insurance is a wise decision to safeguard your financial well-being. What Happens if You Don’t Have Condo Insurance? The risks of not having condo insurance can be severe and costly. Here’s what could happen if you choose to go without it: -Out-of-Pocket Costs for Damages: If a fire, water damage, or vandalism occurs, you would be responsible for all the repair or replacement costs within your unit. Depending on the extent of the damage, this could amount to thousands of dollars.    -Loss of Personal Belongings: In the event of theft or damage from disasters, you would have to replace all your personal property, including furniture, electronics, and clothing, at your own expense.    -No Coverage for Temporary Housing: If your unit is damaged to the point of being uninhabitable, you’d be responsible for finding and paying for temporary living arrangements, such as hotel stays, without any financial support.    -Liability Exposure: Without liability coverage, you could be sued and held financially responsible if a guest or neighbour is injured inside your condo or if you accidentally cause damage to another unit. The legal costs and potential settlements could be devastating to your finances.    -Potential Lender Penalties: If your mortgage company requires insurance and you don’t have it, you could face penalties, higher fees, or even be in default on your loan terms, putting your ownership of the unit at risk. In short, without condo insurance, you’re taking a gamble with your financial future. The costs of damage, theft, and liability can quickly add up, far outweighing the relatively small premium you’d pay for coverage. Affordable Peace of Mind Condo insurance is typically affordable, especially when compared to the cost of repairing or replacing damaged property on your own. For a relatively low monthly premium, you can secure comprehensive protection for your personal belongings, interior structures, and liability. The peace of mind that comes with knowing you’re covered in case of disaster is well worth the investment. Tailored Coverage Every condo owner’s situation is unique, and one of the benefits of condo insurance is that you can tailor your policy to meet your specific needs. Whether you have expensive art, electronics, or custom upgrades to your unit, you can customise your coverage to ensure that you’re adequately protected. A good insurance agent will help you assess your risks and determine the right level of coverage for your situation. Owning a condominium comes with many responsibilities, and obtaining adequate insurance for your unit is one of the most important. While your corporation’s policy covers common areas and the building’s structure, your personal property, interior unit, and liability are your responsibility. Condo insurance ensures that you’re protected from unexpected events, whether it’s damage to your belongings, an injury to a guest, or the need for temporary housing. Don’t wait until disaster strikes—invest in condo insurance today to safeguard your home and your peace of mind. It’s important for condominium owners to review their Declaration and By-laws prior to obtaining insurance. A clear understanding of the Standard Unit Boundaries will be essential, as well as confirming if your governing documents mandates additional insurance. By understanding the gaps in your association’s insurance policy and securing individual coverage, you can rest easy knowing your investment is protected from life’s uncertainties.

Managing a condominium effectively requires careful oversight of various services and projects, many of which involve large vendor contracts. Whether it’s for maintenance, repairs, landscaping, or other essential services, negotiating large contracts is a critical responsibility of a property manager. Ensuring that these contracts serve the best interests of the condominium community demands attention to detail, thorough understanding, and strategic planning. This blog post outlines the key elements your property manager should focus on during large contract negotiations. Clear Scope of Work A well-defined scope of work is fundamental to any large vendor contracts. It should outline in detail what services or work will be provided, including: Specific Tasks: Detailed descriptions of the tasks to be performed by vendors. Timelines: Clear deadlines and milestones for the completion of work. Materials and Equipment: Specifications of the materials and equipment to be used and confirmation of additional materials and costs.  Pricing and Payment Terms Understanding and agreeing on pricing and payment terms is crucial to avoid disputes and financial mismanagement. Total Cost: Ensure the total cost is clearly stated and includes any applicable taxes. Payment Schedule: A detailed payment schedule that outlines when payments will be made, linked to specific milestones or deliverables. Additional Costs: Identify potential additional costs and how they will be managed. Budget: Ensure the proposed contract aligns with the corporation’s budget and won’t result in an operating deficit.  Performance Standards and Quality Control Contracts should include standards for performance and quality to ensure that the work meets the condominium’s expectations. Quality Specifications: Detailed quality standards for materials and workmanship. Performance Metrics: Clear performance metrics and benchmarks that the contractor must meet. Inspection and Approval: Procedures for inspecting and approving completed work, including the right to withhold payment if standards are not met. Liability and Insurance Protecting the condominium from potential liabilities is a key concern. Insurance Requirements: Ensure the contractor has adequate insurance coverage, including liability, workers’ compensation, and property damage insurance. Indemnification Clauses: Include indemnification clauses that protect the condominium from claims arising from the contractor’s work. Warranty and Guarantee: Specify any warranties or guarantees on the work performed and materials used. Contractor Credentials and Experience The contractor’s qualifications and track record are vital indicators of their ability to complete the project successfully. Licenses and Certifications: Verify that the contractor holds all necessary licenses and certifications. Experience and References: Assess the contractor’s experience with similar projects and check references from previous clients and online reviews. Reputation: Consider the contractor’s reputation in the industry, including any past legal issues or complaints. Don’t be afraid to ask for references!  Dispute Resolution Including provisions for resolving disputes can help avoid lengthy and costly legal battles. Mediation and Arbitration: Specify procedures for mediation and arbitration as first steps before any legal action. Jurisdiction: Clearly state the jurisdiction and venue for any legal disputes. Communication Protocols: Establish clear protocols for how disputes will be communicated and managed. Termination Clauses Understanding how a contract can be terminated protects the condominium if things go wrong. Termination for Cause: Conditions under which the contract can be terminated for cause, such as failure to meet deadlines or quality standards. Termination for Convenience: Provisions for terminating the contract for convenience, including any penalties or notice periods. Exit Strategy: Clear guidelines for transitioning work and responsibilities if the contract is terminated. Change Orders and Amendments Contracts should be flexible enough to accommodate changes while protecting the interests of the condominium. Change Order Process: A detailed process for approving and documenting changes to the scope of work, including cost and timeline adjustments. Amendment Procedures: Procedures for making formal amendments to the contract, ensuring all changes are mutually agreed upon and documented. Compliance with Laws and Regulations Ensuring that all work complies with relevant laws and regulations is essential to avoid legal issues and fines. Building Codes and Standards: Ensure the contract requires compliance with all applicable building codes and standards. Permits and Approvals: Specify the contractor’s responsibility for obtaining necessary permits and approvals. Health and Safety Regulations: Include provisions for adhering to health and safety regulations to protect workers and residents. Communication and Reporting Effective communication and regular reporting are key to successful project management. Project Updates: Regular updates from the contractor on the progress of the work, including any issues or delays. Point of Contact: Designate a primary point of contact with the property manager and the contractor’s team. Documentation: Requirements for maintaining and sharing project documentation, such as progress reports and meeting minutes. Negotiating large vendor contracts is a significant responsibility for a property manager. By focusing on these key elements—clear scope of work, pricing and payment terms, performance standards, liability and insurance, contractor credentials, dispute resolution, termination clauses, change orders, compliance, and communication—the board can protect the interests of the condominium community and ensure the successful completion of projects. Effective contract management not only safeguards the condominium’s financial health but also contributes to a well-maintained and smoothly operating living environment.

Owning a condominium unit in Ontario comes with a unique set of responsibilities and privileges. Among these is the right to access certain documents related to the condominium corporation. Making information requests to obtain condominium corporation documents is not just a formality but a crucial step in safeguarding your investment and ensuring the smooth operation of the condominium community. This blog post explores why condominium unit owners should make information requests to obtain corporation documents in Ontario and the benefits of doing so. Condominium corporation documents provide a wealth of information about the financial health, governance, and overall condition of the condominium. These documents include financial statements, minutes of board meetings, the declaration, bylaws, rules, and status certificates. Owners should note that these documents should be turned over to the owner at the time of purchase, as they are provided to realtors and/or solicitors with the status certificate. Accessing and reviewing these documents helps owners stay informed about the operations and management of their condominiums.  Reasons to Make Information Requests 1. Financial Transparency 2. Informed Decision-Making 3. Governance and Compliance 4. Maintenance and Repairs 5. Dispute Resolution 6. Protecting Your Investment Let’s delve into each of these reasons in detail. 1. Financial Transparency One of the primary reasons to request condominium corporation documents is to gain insight into the financial health of the condominium. Reviewing Budgets and Financial Statements: By examining annual budgets and financial statements, you can understand how your monthly fees are being utilized and whether the corporation is managing its funds responsibly. Assessing the Reserve Fund: The reserve fund is crucial for covering major repairs and replacements of common elements. Reviewing the reserve fund study and related documents ensures that the fund is adequately maintained, minimizing the risk of unexpected special assessments. 2. Informed Decision-Making Being well-informed allows you to make better decisions regarding your property and involvement in the condominium community. Understanding Rules and Bylaws: Familiarizing yourself with the condo’s declaration, bylaws, and rules helps you comply with community standards and avoid potential fines or disputes. Voting and Participation: Having access to meeting minutes and board reports enables you to stay updated on key issues and participate effectively in votes and discussions at annual general meetings (AGMs). 3. Governance and Compliance Knowing how your condominium is governed and ensuring compliance with relevant laws and regulations is vital. Monitoring Board Activities: Reviewing minutes from board meetings allows you to track decisions and actions taken by the board, ensuring they are acting in the best interests of the community. Legal Compliance: Ensuring that the condominium corporation complies with the Condominium Act, 1998, and other relevant legislation protects the corporation from legal liabilities and potential penalties. 4. Maintenance and Repairs Staying informed about the maintenance and repair plans for your condominium can help you prepare for future costs and disruptions. Planned Projects: Accessing documents related to upcoming maintenance or renovation projects helps you understand timelines and potential impacts on your living environment. Condition of Common Elements: Regular updates on the condition of common elements, such as elevators, roofs, and plumbing systems, ensure that necessary repairs are being prioritized and addressed promptly. 5. Dispute Resolution In the event of conflicts or disputes within the condominium community, having access to corporation documents can be invaluable. Historical Records: Documents such as past meeting minutes and correspondence can provide context and evidence to support your position in a dispute. Clarifying Rules: A clear understanding of the condominium’s rules and regulations can help resolve conflicts amicably and fairly. 6. Protecting Your Investment Ultimately, making information requests and staying informed helps protect your investment in the condominium. Market Value: Understanding the financial and operational health of the condominium corporation can impact the market value of your unit. Well-managed condos with healthy finances are often more attractive to potential buyers. Risk Management: Being proactive in monitoring the condominium’s operations and finances helps mitigate risks associated with mismanagement or unforeseen expenses. How to Make an Information Request In Ontario, condominium unit owners have the right to request access to certain corporation documents under the Condominium Act, 1998. To make an information request: 1. Identify the Documents: Determine which documents you need, such as financial statements, meeting minutes, or the reserve fund study. 2. Submit a Written Request: Submit a written request to the condominium’s board or property management company specifying the documents you wish to access. The form needed to submit a request can be found on the CAO website under “Request for Records”.  3. Pay Applicable Fees: Be prepared to pay any reasonable fees associated with the production and copying of documents. 4. Review and Follow Up: Once you receive the documents, review them thoroughly and follow up with any questions or concerns. Making information requests to obtain condominium corporation documents is a critical practice for unit owners in Ontario. It ensures financial transparency, informed decision-making, effective governance, proactive maintenance, and dispute resolution, all of which contribute to protecting your investment and enhancing the quality of condominium living. By staying informed and engaged, you can play a proactive role in the management and well-being of your condominium community.

Buying a condominium in Ontario is an exciting venture, but it also comes with its share of complexities. One of the most critical phases of this process is due diligence, where a thorough investigation is conducted to ensure that the property is a sound investment. A realtor, and/or a solicitor plays a pivotal role in managing this due diligence process, safeguarding the interests of their clients. This blog post delves into the essential aspects of due diligence and how a competent realtor can guide you through this crucial stage when purchasing a condo in Ontario.  Understanding Due Diligence Due diligence is the process of thoroughly investigating a property before finalizing the purchase. For condominium buyers, this involves not just evaluating the unit itself but also understanding the financial and operational health of the condo corporation. Effective due diligence helps prevent future surprises and ensures that you are making a well-informed decision. Key Components of the Due Diligence Process 1. Status Certificate Review 2. Assessing the Reserve Fund 3. Financial and Legal Checks 4. Condominium Rules and Bylaws 5. Home Inspection  Let’s explore each of these components and the realtor’s role in managing them. 1. Status Certificate Review What it is: The status certificate is a comprehensive document that provides detailed information about the condominium corporation. It includes financial statements, budgets, bylaws, rules, and any current legal issues. Realtor’s Role: Obtaining the Status Certificate: Your realtor will request the status certificate from the condo corporation. Note, there is a cost to obtain a certificate which can range between $50.00 - $300.00 depending on the urgency of the request.  Reviewing the Document: They will go through the certificate with a fine-tooth comb, often in collaboration with your lawyer, to identify any red flags such as pending litigation, financial deficits, or significant upcoming maintenance expenses. Explaining Findings: Your realtor will break down the key points of the status certificate, ensuring you understand its implications. Your realtor will note that status certificates are only valid for a 30 day period.  2. Financial and Legal Checks What it is: This involves verifying the financial health of the condo corporation and ensuring there are no legal encumbrances on the property. Realtor’s Role: Evaluating Financial Statements: Your realtor will analyze the condo corporation’s financial statements to ensure it is well-managed and financially stable. This information can be determined by the Status Certificate and corresponding documents.  Title Search: Coordinate with your lawyer to conduct a title search to confirm that the property is free of liens or other legal issues. Assessing Debt Levels: Ensuring that the condo corporation does not have excessive debt, which could impact future maintenance fees or lead to special assessments. 3. Condominium Rules and Bylaws What it is: Understanding the rules and bylaws governing the condo community is essential to ensure they align with your lifestyle and plans. Realtor’s Role: Providing Documentation: Your realtor will obtain the condo’s rules and bylaws for your review. Highlighting Key Rules: They will point out important rules that could affect you, such as pet policies, rental restrictions, and renovation guidelines. Clarifying Implications: This will help you understand how these rules might impact your day-to-day living or any future plans you have for the unit. 4. Assessing the Reserve Fund What it is: The reserve fund is a savings account used by the condo corporation for major repairs and replacements of common elements. Realtor’s Role: Reviewing the Reserve Fund Study: Your realtor will examine the reserve fund study to assess whether the fund is adequately funded, and that contributions are in line with the Notice Of Future Funding.  Explaining Findings: They will help you understand the implications of the reserve fund’s status, including the likelihood of future special assessments, which can be costly.  Advising on Risks: Providing advice on potential risks if the reserve fund is underfunded, which could lead to significant financial burdens down the line. 5. Home Inspection What it is: A home inspection involves a professional inspector assessing the physical condition of the condo unit and common areas. Realtor’s Role: Arranging the Inspection: Your realtor will recommend a qualified home inspector and coordinate the inspection process. Attending the Inspection: They often accompany you during the inspection to ensure that all critical areas are examined. Interpreting the Report: After the inspection, your realtor will help you understand the findings, focusing on any potential issues that may require attention or negotiation with the seller. The due diligence process is a critical step in purchasing a condominium in Ontario, ensuring that you make a well-informed and secure investment. A knowledgeable and experienced realtor is indispensable in managing this process. From obtaining and reviewing the status certificate to arranging inspections and evaluating financial documents, a realtor’s expertise and guidance can help you navigate potential pitfalls and make confident decisions. By effectively managing due diligence, your realtor ensures that your condo purchase is as seamless and risk-free as possible, allowing you to enjoy your new home with peace of mind.

The condominium living experience in Ontario has been increasingly impacted by a significant shortage of qualified condominium managers. This shortage, driven by various factors including increased demand for condo living, stringent regulatory requirements, and an aging workforce, has created challenges for condo boards and residents alike. The importance of working collaboratively with your property manager cannot be overstated. This blog post explores the current condominium manager shortage in Ontario and highlights why cooperation with property managers is essential for a harmonious living environment. Understanding the Condominium Manager Shortage The demand for condominium living has surged in Ontario, particularly in urban centers like Toronto, due to affordability issues and a desire for convenient, low-maintenance lifestyles. However, the supply of qualified condominium managers has not kept pace with this demand. Let’s explore the factors contributing to this shortage;  Increased Demand The rapid growth of condominium developments has outpaced the number of trained and experienced managers available. According to the Ontario Newsroom , there are over 11,000 condominium corporations across Ontario and this number will continue to grow as 55% of homes under construction in Ontario are condominium units. CBC  recently reported that only 2,500 general licensed managers are overseeing these condominium units. In theory, each manager would be responsible for almost 5 corporations at any given time. Talk about workload!  Regulatory Changes Ontario’s Condominium Management Services Act, introduced in 2017, mandates stringent licensing and continuing education requirements for condominium managers. While these regulations ensure high standards, they have also made it challenging for new managers to enter the field. Aging Workforce Many seasoned condominium managers are nearing retirement, and there are insufficient new entrants to replace them. This could be due to many factors, however, it’s hard to ignore the less-than-desirable aspects of the job when the managers are already spread thin and there has been no indication of easing up.  Job Complexity The role of a condominium manager is multifaceted, involving property maintenance, financial management, conflict resolution, and regulatory compliance. The complexity and stress associated with the job deter many potential candidates. The Importance of Cooperation Given the current shortage, it’s more crucial than ever for residents and condo boards to cultivate a cooperative relationship with their property managers. Here’s why: Enhanced Efficiency and Effectiveness A collaborative approach fosters an environment where property managers can perform their duties more efficiently. When residents and boards support their managers, tasks like maintenance, financial planning, and compliance with legal requirements are handled more smoothly. This support allows managers to focus on their core responsibilities without being bogged down by unnecessary conflicts or miscommunications. To best support property management, residents and the board of directors should direct maintenance requests or complaints to management, and avoid scheduling vendors, maintenance, or quotes without notifying management to prevent conflicts or surprises, which allows property management to perform their duties effectively. Improved Communication Effective communication is the cornerstone of any successful relationship, this is true for the dynamic between condo residents and their managers. By working together, both parties can ensure that issues are addressed promptly and transparently. Regular meetings, open forums, and clear lines of communication help in preemptively solving problems and avoiding misunderstandings. Mutual Respect and Trust Building a relationship based on mutual respect and trust can significantly enhance the living experience in a condominium. When residents understand the challenges faced by property managers and vice versa, it fosters a sense of community and shared purpose. Respectful interactions and a willingness to listen and compromise can go a long way in maintaining a positive living environment. Proactive Problem Solving Collaboration encourages proactive problem-solving. When residents and property managers work together, they can identify potential issues before they escalate into major problems. This proactive stance can prevent costly repairs, legal disputes, and other complications that arise from neglected issues. Stress Reduction The role of a condominium manager is inherently stressful, given the myriad of responsibilities and the need to balance the interests of various stakeholders. By cooperating with their managers, residents can alleviate some of this stress. A supportive environment enables managers to perform their duties more effectively, leading to a well-managed property. Residents and board members alike can aid with stress by ensuring their approach to managers is not combative, but genuine.  Practical Tips for Cooperation To foster a cooperative relationship with your condominium manager, consider the following practical tips: Stay Informed: Educate yourself about the responsibilities and challenges of condominium management. Understanding the scope of the manager’s job can foster empathy and cooperation. Communicate Clearly: Use clear, respectful communication channels. Report issues promptly and provide constructive feedback. Participate Actively: Engage in community meetings and decision-making processes. An active and informed community can work more effectively with management. Show Appreciation: Acknowledge the hard work of your property manager. Simple gestures of appreciation can boost morale and encourage a positive working relationship. Be Patient and Understanding: Recognize that your manager is likely dealing with multiple issues simultaneously. Patience and understanding can go a long way in maintaining a harmonious relationship. The condominium manager shortage in Ontario is a significant challenge, but it also presents an opportunity for condo residents and boards to foster stronger, more cooperative relationships with their property managers. By working together, we can ensure that our communities remain well-managed and enjoyable places to live. Cooperation, communication, and mutual respect are key to navigating these times successfully and ensuring a positive living environment for all. Sources: Ontario Launches Guide for Residential Condo Purchasers . Ontario newsroom. (2021, January). https://news.ontario.ca/en/release/59872/ontario-launches-guide-for-residential-condo-purchasers   Balintec, V. (2023, June 4). Ontario is lacking condo managers and some worry it’ll only get worse as more units get built | CBC news . CBCnews. https://www.cbc.ca/news/canada/toronto/ontario-condo-manager-shortage-1.6861777

As June 25th, 2024 approaches, significant changes to the Canadian capital gains tax regime are on the horizon. These changes, poised to reshape the financial landscape for investors, particularly those holding investment properties, are causing a stir among stakeholders. This article delves into the specifics of the new tax regulations and their implications for investment property owners Understanding the Changes The Canadian government has proposed modifications to the capital gains tax aimed at increasing revenue and addressing income inequality. Among these changes is the adjustment of the inclusion rate—the portion of capital gains subject to taxation. Currently, 50% of capital gains are taxable, but starting June 25th, 2024, this rate will increase to 66.67%. Impact on Investment Property Owners Investment property owners are likely to feel the brunt of this change. When a property is sold, the capital gain—the difference between the sale price and the property's adjusted cost base (ACB)—is subject to taxation. With the inclusion rate rising, a larger portion of these gains will be taxed, leading to higher tax liabilities for property owners. Example Scenarios To better understand the financial impact, let's consider two scenarios under the current and upcoming tax regimes. Current Tax Regime - Property Purchase Price (2014): $400,000 - Selling Price (2024): $700,000 - Capital Gain: $300,000 Under the current tax regime: - Taxable Capital Gain (50% of $300,000): $150,000 - Assumed Marginal Tax Rate: 30% - Tax Payable: $150,000 x 30% = $45,000 Upcoming Tax Regime (2024) - Property Purchase Price (2014): $400,000 - Selling Price (2024): $700,000 - Capital Gain: $300,000 Under the new regime: - Taxable Capital Gain (66.67% of $300,000): $200,010 - Assumed Marginal Tax Rate: 30% - Tax Payable: $200,010 x 30% = $60,003 Comparative Analysis In this example, the tax payable under the new regime is $60,003, compared to $45,000 under the current system. This represents a significant increase of $15,003 in tax liability, underscoring the heightened financial burden on property owners. Strategic Considerations for Investors Given the impending changes, investors should consider several strategic measures to mitigate the impact: Review and Adjust Portfolios Investors may need to reassess their portfolios to determine the optimal timing for selling properties. Selling before the new rules take effect could be advantageous for some. Utilize Principal Residence Exemption Where possible, investors might benefit from designating properties as principal residences for part of the ownership period to reduce taxable gains. Engage in Tax Planning Consulting with tax professionals to explore avenues such as deferring sales or exploring other tax-efficient investment structures can be beneficial. Consider Similar Strategies Investors should talk to their realtor and solicitor to explore all available options, including strategies akin to the U.S. 1031 exchange, which allows for the deferral of capital gains tax by reinvesting in similar properties. The upcoming changes to the Canadian capital gains tax inclusion rate represent a pivotal shift for investment property owners. The increase from a 50% to a 66.67% inclusion rate will substantially elevate the tax burden on capital gains from property sales. As illustrated, the financial implications are significant, necessitating strategic planning and timely action. Property owners and investors should proactively seek professional advice to navigate this new landscape effectively, ensuring that their financial decisions align with the evolving tax regulations.

Condominium living in Ontario offers many benefits, but it also requires active participation among unit owners to ensure the smooth operation of the community. One essential aspect of condominium governance is the ability for owners to call a meeting when necessary to address important issues and discuss matters affecting the condominium corporation. In this blog post, we'll provide a comprehensive guide to calling a condominium owners' meeting in Ontario. 1. Review the Governing Documents: Before proceeding with calling an owners' meeting, it's crucial to review the condominium corporation's governing documents. These documents, including the declaration, bylaws, and rules and regulations, outline the procedures and requirements for calling meetings, as well as the rights and responsibilities of unit owners. Owners should have received a copy of the governing documents at the time of purchase. If owners don’t have a copy on hand, we recommend putting in a Request for Records with the appropriate form from the Condominium Authority of Ontario, the CAO. 2. Identify the Purpose and Agenda: Determine the purpose of the owners' meeting and draft an agenda outlining the topics to be discussed. Common reasons for calling a meeting may include budget approvals, rule changes, election of board members, or addressing specific concerns raised by unit owners. A clear agenda helps ensure that the meeting remains focused and productive. 3. Collect Support Signatures: Depending on the requirements outlined in the governing documents, you may need to gather signatures from a certain percentage of unit owners to support calling the meeting. Per the CAO website (click here for more information), "You must get signatures from owners representing at least 15 percent of the voting units in the corporation, even if they do not live in the building." This threshold is typically specified in the bylaws and ensures that owners have sufficient interest to convene a meeting. If it’s not specified in the governing documents, the default minimum number of signatures is governed by the CAO. 4. Notify the Board: Notify the condominium board in writing of your intention to call an owners' meeting. Include details such as the proposed date, time, and location of the meeting, as well as the purpose and agenda items. This notification allows the board to coordinate logistics and provide any necessary support for the meeting. 5. Meeting Notice: The board of directors and your management team are responsible for preparing a formal meeting notice to be distributed to all unit owners. The notice should include essential information such as the date, time, and location of the meeting, the agenda items, and any other relevant details. Ensure that the notice complies with any timing requirements specified in the governing documents. 6. Distribution of Meeting Notice: Your board of directors and property manager are required to distribute the meeting notice to all unit owners per the timing requirements outlined in the governing documents. This may involve sending notices via mail, or email, or posting them in common areas of the condominium property. Providing ample notice ensures that owners have sufficient time to prepare and attend the meeting. The Board must abide by the minimum time requirements provided at the time by the CAO. 7. Hold the Meeting: On the scheduled date, time, and location, hold the owners' meeting as planned. Ensure that all agenda items are addressed and that all unit owners have the opportunity to participate and voice their opinions. Follow proper meeting procedures, including recording minutes of the meeting for documentation purposes. 8. Follow Up: After the meeting, follow up with any action items or decisions made during the meeting. Communicate the outcomes to all unit owners and provide updates as necessary. Additionally, ensure that meeting minutes are circulated to all owners for review and approval in the next Owners meeting in accordance with the governing documents. By following these steps and adhering to the requirements outlined in the governing documents, unit owners in Ontario can effectively call and conduct condominium owners' meetings to address important matters and contribute to the well-being of their condominium community. Active participation and collaboration among owners are essential for maintaining a thriving and harmonious condominium environment.

Living in a condominium community in Ontario comes with its benefits, but it also means being part of a shared governance structure overseen by a condominium board. The board is responsible for making decisions that affect the community's well-being, from financial matters to enforcing rules and regulations. However, when condominium board members become unresponsive or fail to fulfill their duties, it can lead to frustration and challenges for residents. In this blog post, we'll explore how to navigate such situations effectively. Identify the Issue: The first step in addressing unresponsive condominium board members is to identify the specific issues causing concern. Are board members consistently failing to respond to resident inquiries or concerns? Is there a lack of transparency in decision-making processes? Understanding the root cause of the problem will help residents determine the most appropriate course of action. Review Governing Documents: Familiarize yourself with the condominium's governing documents, including the declaration, bylaws, and rules and regulations. These documents outline the board's responsibilities, as well as the procedures for addressing grievances or concerns raised by residents. Understanding the legal framework governing the condominium community will empower residents to take informed action. Attempt Communication: Reach out to the unresponsive board members in writing, clearly outlining your concerns and requesting a response within a reasonable timeframe. Document all communication attempts, including emails, letters, and meeting minutes, as evidence of your efforts to address the issue amicably. Engage Other Residents: If multiple residents are experiencing similar challenges with unresponsive board members, consider organizing a community meeting to discuss the issue collectively. Strength in numbers can amplify residents' voices and encourage board members to take action to address residents' concerns. Utilize Dispute Resolution Mechanisms: Many condominium communities in Ontario offer dispute resolution mechanisms, such as mediation or arbitration, to help residents and board members resolve conflicts effectively. Explore these options as a proactive step towards resolving issues with unresponsive board members neutrally and impartially. Request an Owners’ Meeting: Residents have the right to request an Owners’ Meeting under certain circumstances outlined in the Condominium Act, 1998. An Owners’ Meeting provides an opportunity for residents to address pressing issues, including concerns about unresponsive board members, and potentially vote to remove or replace board members who fail to fulfill their duties. Seek Legal Advice: If all attempts to address the issue with unresponsive board members fail, residents may need to seek legal advice from a lawyer specializing in condominium law. A legal professional can provide guidance on residents' rights and options for recourse under the Condominium Act, 1998, including potential legal actions to compel the board to fulfill its obligations. Document Everything: Throughout the process of addressing unresponsive condominium board members, it's essential to document all communication, meetings, and actions taken. Keep a record of emails, letters, meeting minutes, and any other relevant documentation as evidence in case further action is required. In conclusion, dealing with unresponsive condominium board members in Ontario requires patience, persistence, and a proactive approach from residents. By understanding their rights, effectively communicating concerns, and exploring available recourse options, residents can work towards resolving issues with unresponsive board members and fostering a more accountable and transparent condominium community.