Owners’ meetings
Turn-Over Meetings
Developer-controlled condo boards must hold these meetings within 42 days once 50 per cent of the units have been sold and transferred to the unit owners. This is an important meeting where documents are turned over to the condo corporation and owners elect a new board of directors.
Before a turn-over meeting
Condo corporations that have not yet had a turn-over meeting have the same Condo Act related requirements as any other, with some notable differences:
All CAO returns are required except the turnover return
Condominium corporations have 90 days from registering with the Land Registry Office to do either of the following:
Other fling requirements that apply leading up to the turn-over meeting include:
Director training not required
Directors on boards of condos that that have not turned over are not required to take CAO’s director training.
No information certificates to send
Condo corporations that have not held a turn-over meeting are not required to send information certificates to unit owners.
Owners’ meeting requirements
Annual General Meeting requirements are in place. The first AGM of a condo corporation must be held within three months of registration and then within six months of the end of each fiscal year going forward.
An owners’ meeting must also be called by the developer-controlled board by the later of these two milestones:
- Within 30 days after the developer has transferred 20 per cent of the units in the corporation
- Within 90 days after the developer transfers the first unit in the corporation
At this owners’ meeting, all unit owners other than the developer may elect two directors to the first board.
Quorum to elect directors at this meeting is achieved when eligible owners representing at least 25 per cent of units not owned by the developer are present either in person, by proxy, virtually or by voting electronically or by phone ahead of time. The quorum requirement can be reduced to at least 15 per cent of units on the third and any subsequent attempts to hold the meeting if quorum is not reached on the first two attempts.
The developer-controlled board is not required to hold this meeting after calling it if in the meantime the developer sells and transfers a majority of the units and notifies the first board of this in writing.
During turn-over meetings
Timing of the meeting
The developer-controlled board must call a meeting of the owners and elect a new board within 21 days of 50 per cent the units in the corporation being sold and transferred to unit owners. The meeting must then be held within 21 days of being called, meaning that the turn-over meeting must occur within 42 days.
Documents to be turned over
The developer is responsible for turning over important documents at the meeting, including:
- The minute book, which serves as the primary record of the condo corporation’s meetings
- The declaration, by-laws, and rules
- Agreements already entered on the condo corporation’s behalf
The developer must also turn over the following additional information within 30 days after the meeting:
- All financial records of the condo corporation and of the developer from the date of registration onwards
- A copy of any previous reserve fund studies
- The most recent disclosure statement
The developer must turn over audited financial statements within 60 days of the meeting.
Developers may be liable to legal action and fines if they do not comply with the turn-over requirements.
Voting & quorum
Votes can be cast personally or by appointing a proxy. Voting can happen in person, via proxy, electronically through a secure method by phone.
The standard quorum for a turn-over meeting is when owners who own at least 25 per cent of the units are present. The quorum requirement can be reduced similarly to the first meeting: at the third or subsequent attempts if quorum is not reached on the first two attempts to hold the meeting.
Why hasn’t my condo had a turn-over meeting?
Read the disclosure statement provided to you during your purchase to see if the developer intends to keep and lease any units. A turn-over meeting will not happen if the declarant continues to own a majority of the units with the intention of leasing them.
Owners may call the meeting themselves if the developer-controlled board does not do so within 21 days of selling and transferring 50 per cent of the units. Owners can request the record of owners and mortgagees to see who owns units in the corporation and find out if the turn-over meeting is required.
After the turn-over meeting
Director training requirements now apply
We strongly recommend that the newly elected directors immediately take CAO’s mandatory director training if they have not done so within the past 7 years of their election date.
Contract review
The Condo Act allows new, owner-controlled boards to terminate most of the existing contracts entered by the developer within 12-months after the turn-over meeting. The owner-elected board should work with their legal counsel to promptly review contracts that they have inherited from their developer.
See the CAO Guide on Procuring Goods and Services to learn more about replacing these vendors.