Condominium managers hired by a condo corporation (through its Board of Directors) have a number of responsibilities and obligations under the Condominium Management Services Act, 2015 (CMSA). Although there are many duties that must be carried out by the Board, they may delegate a number of tasks to condominium managers, including:

• collecting common expense fees
• preparing draft annual budgets and overseeing the reserve fund
• preparing status certificates
• monitoring the corporation’s insurance
• preparing financial reports and arranging for audits
• advising the board on its financial responsibilities

Among other legal and ethical obligations, managers are expected to be financially responsible and promote and protect the best interests of their client. They are responsible for advising the board on its financial responsibilities, and must not counsel, advise, or knowingly assist a person to contravene the CMSA.

Regulation Helps Protect Condominium Communities from Financial Mismanagement

The CMRAO recently conducted an inspection of a General Licensee after the organization became aware of allegations regarding violations of the Condominium Act, 1998 (Condo Act) and the CMSA, which included:

• recommending and/or arranging an investment that was not in compliance with the legislation
• providing false or deceptive information to the corporation about the investment
• having a material interest in the investment, which was not properly disclosed to the corporation

The CMRAO took appropriate enforcement action and issued a notice of proposal to revoke their General Licence and ordered the immediate suspension of this licence.

Managers who are unsure about their legal and ethical obligations as they relate to reserve funds, collecting common expenses, and general financial management, are encouraged to consult with a condominium lawyer.