The CMRAO’s risk-based inspections program monitors and confirms that condominium managers and provider businesses are complying with key requirements under the Condominium Management Services Act, 2015 (CMSA) and its regulations.

In its first years of operation, the CMRAO conducted inspections of licensees in response to complaints alleging serious types of misconduct resulting in numerous regulatory actions, including the revocation and suspension of licences. These inspections have focused on a broad range of areas of non-compliance with the CMSA, including:

• Misappropriating money and allegations of fraud
• Withholding or failing to turn over records and/or money to a client after termination of the management contract
• Interfering with the election of condominium directors and misuse of proxy forms
• Keeping poor records or non-existent records management practices
• Condoning unlicensed practice and employing unlicensed individuals
• Breaching the conditions of a licence
• Other types of dishonourable or unprofessional conduct

In response to Recommendation 7 of the Office of the Auditor General of Ontario’s Value-for-Money Audit on Condominium Oversight in Ontario, the CMRAO has broadened its compliance program to include proactive standardized inspections of licensees. These inspections focus on key areas, including:

1. Records management practices, including records turnover processes
2. Administration of owners’ meetings and elections, including the use of proxy forms
3. Declaration of conflicts of interest to a client’s Board of Directors
4. Supervision of Limited Licensees, and ensuring that a provider’s staff are properly licensed
5. Written contract with all clients

These inspections provided the CMRAO with valuable insight into the providers’ operations, training, records management, and processes. The Report on the CMRAO’s Inspections Pilot Program outlines the scope and key findings.

This year, the CMRAO is planning to conduct 30 proactive inspections of condominium management provider businesses. The approach to these inspections has been informed by consultations with the CMRAO Advisory Committee.

The CMRAO will perform inspections on a range of small, medium, and large provider businesses from different areas of the province. Some licensees will be selected for inspection at random, although others may be selected based on other factors.

Although the Registrar of the CMRAO reserves the right to take regulatory action in relation to an inspection, the purpose of proactive inspections is to review a licensee’s businesses practice and to ensure compliance with the governing legislation. At the end of the inspection, the licensee will receive a report that notes areas for improvement. Follow-up reviews will be conducted as appropriate.

Inspections Program Guides

The following guides provide an overview of the CMRAO’s processes and what to expect for a particular type of inspection. These documents will also give licensees an opportunity to review their business practices in order to comply with requirements and prepare for a possible inspection. During an inspection, the inspector will use templates to gather information from licensees.

As new guides are developed for other focus areas of inspections, they will be posted here.

Frequently Asked Questions