The CMRAO charged and convicted Terracap Management Inc. (“Terracap”) for providing condominium management services to a condominium corporation without a condominium management provider licence.

Terracap is a business that acquires, redevelops, leases, and manages real estate holdings. This business provided condominium management services by:

• Negotiating the operation of a shared facilities agreement with a residential condominium corporation, and
• Supervising employees who managed the corporation’s common elements.

Defendant Pleaded Guilty

The parties reached a plea agreement on the basis that Terracap would comply with the CMSA. Terracap pleaded guilty to providing condominium management services without a licence and has been ordered to pay a fine in the amount of $15,000. To ensure compliance with the CMSA, the condominium status of the corporation has been terminated.

As outlined in section 34(2) under the Condominium Management Services Act, 2015, any person who is not licensed shall not hold themselves out as being a condominium management provider or condominium manager and is prohibited from providing condominium management services. For a person or entity that is not an individual, failing to comply with the CMSA constitutes an offence that can result in a fine of up to $250,000.

Any individual or business that provides management services to a condominium, regardless of the ownership structure, must be licensed by the CMRAO or fall within an exemption under the CMSA.

Read more about rental condominiums and compliance with the CMSA.