Registrar Proposes Licence Revocation and Issues Immediate Suspension Order
In September 2023, the CMRAO became aware of concerning allegations about a licensed condominium manager’s involvement in a condominium corporation’s reserve fund investments. In response to these allegations the CMRAO conducted an inspection.
Bert Berger, a General Licence holder, is alleged to have counseled or advised a condominium corporation to contravene the Condominium Act, 1998 (Condo Act) by recommending and/or arranging an investment that was not compliant with section 115 of the Act. It is further alleged that Mr. Berger provided false or deceptive information to the corporation about this investment, and that Mr. Berger had a material interest in the investment, which was not properly disclosed to the corporation. These actions contravene sections 56, 55, and 52 respectively of the Condominium Management Services Act, 2015 (CMSA).
After reviewing the results of the inspection, the Registrar has issued a notice of proposal to revoke Mr. Berger’s General Licence and has ordered the immediate suspension of this licence.
Any person with a suspended licence is prohibited from providing condominium management services, holding themself out as a condominium manager, or performing any of the functions of a condominium manager. For individuals, failing to comply with the CMSA constitutes an offence, which can result in a fine of up to $50,000 or imprisonment for a term of up to two years.
What is a notice of proposal to revoke or suspend?
The CMSA allows the Registrar to propose to suspend or revoke a licence. When a notice of proposal is issued, the licensee has 15 days to request a hearing at the Licence Appeal Tribunal (LAT) to appeal the proposal. If the licensee does not appeal the proposal, then the suspension or revocation takes effect.
If the licensee appeals the proposal, then their licence remains active until the LAT issues a decision. The LAT may uphold the registrar’s proposal or substitute its opinion for that of the Registrar. The LAT may also attach conditions to its order or to a licence.
What is an immediate suspension order?
If the Registrar proposes to suspend or revoke a licence and they consider it in the public interest to do so, the Registrar may, by order, temporarily suspend the licence and this order takes immediate effect. An immediate suspension is always accompanied by a proposal to suspend or revoke the licence. If the licensee requests a hearing to appeal the proposed action, then the immediate suspension order expires 15 days after the LAT receives the written request for a hearing, but if the hearing is commenced within the 15-day period, the LAT may extend the time of expiration until the hearing is concluded.