News
CAO Concludes Successful 2025 Annual Meeting
The Condominium Authority of Ontario successfully concluded its 2025 Annual Members’ Meeting last week. Find the recording and FAQs below!
The meeting opened with a public forum where CAO’s executive team presented highlights from the 2024–2025 Annual Report and responded to questions from nearly 800 participants.
Below you will find answers to the most frequently asked questions asked by participants.
Don’t see your question here? Make sure to contact us so we can speak with you directly!
Governance & Board Accountability
1. Can boards make decisions about major contracts that affect the community without consulting the owners?
Boards are empowered by the Condo Act to make procurement decisions, including about when and how to procure, as well as who contracts will be awarded to. These decisions must be made while acting in good faith and in the best interest of the corporation. The legal duty to notify owners breaks down in this way:No notice is generally required for changes to the common elements that:
- Are minor, such as those that cost less than the greater of $1,000 or 1 per cent of the annual budgeted common expenses for the year
- Are required to ensure safety or security
Notice is generally required for changes to common elements that:
- Are larger than what is described above but would still cost less than 10 per cent of the condo’s annual budget.
Notice and a vote (with 66²/³ per cent of units approving the change) is generally required for substantial changes to the common elements that:
- Are worth more than 10 per cent of the annual budget or deemed by the board as substantial, regardless of cost.
2. What do you do when you know the board is not following the condo’s by-laws and rules?
Board directors are subject to the condo’s governing documents like all other members of the community.
The first step in addressing concerns is to speak with management or the board directly in a collaborative and constructive way. Owners are encouraged to clarify whether there is a real compliance issue or simply a misunderstanding, and to consider offering support. Building relationships with neighbours and discussing shared concerns can prevent issues from escalating.
The CAT offers a quick and affordable option to help people resolve condo-related disputes that fall within its jurisdiction. Requisitioning a meeting or going to court are more adversarial, complex, and costly steps, considered “last resort” options that may require legal advice.
Above all, open communication and working together should always be the first approach.
3. Term of directors – what is the limit?
The Condo Act doesn’t set a limit on how many terms a director can serve. Directors are elected at owners’ meetings, and each term can last up to three years. Directors can be re-elected for additional terms as long as they continue to be elected by the owners. However, your condo’s by-laws might set shorter terms or limit how many terms someone can serve.
Communities can set term limits through their by-laws. This should be weighed against considerations around the board being able to continuously recruit and retain new directors.
4. Why does the Condo Act allow condo boards to not acknowledge and respond to legitimate owner concerns and questions?
While the Condo Act requires boards to act in good faith and in the best interest of their corporation, it does not require them to respond to every individual’s concern or question. Boards are only legally obligated to respond in specific circumstances, such as when owners submit a formal records request or a requisition for an owners’ meeting.
Condo corporations must also proactively keep owners informed through sending information certificates at legally prescribed timelines. Owners can also raise questions and share feedback at Annual General Meetings. These measures help promote transparency and accountability within the community.If you have a concern, start by speaking directly with management or the board in a respectful and collaborative way. Building positive relationships with neighbours and discussing shared concerns can also help prevent conflicts from escalating.q
The CAT also offers a quick and affordable option to help people resolve condo-related disputes that fall within its jurisdiction. Requisitioning a meeting or going to court are more adversarial, complex, and costly steps, considered “last resort” options that may require legal advice.
Above all, open communication and working together should always be the first approach.
5. Can the CAO order a condo board to set up an audit committee?
The CAO cannot require specific committees for condo corporations. Each condo corporation’s needs in this area are different across the province.
Under section 68 of the Condo Act, if a board has more than six directors, it may choose to form an audit committee made up of at least three directors. This committee reviews financial statements and the auditor’s report before they go to the full board. Forming an audit committee is optional, so it’s up to each board to decide.
The CAO’s role is to provide education and guidance by offering resources like the Guide on Condo Finances, Guide on Governing Condos, and mandatory director training to help boards make informed decisions.
6. Why isn’t there a trigger for further investigation by the CAO based on unusually high numbers of CAT cases from a condo building?
The CAO does not have formal legal authority to investigate individual condo corporations. Our focus is to provide information and education to support those corporations and empower them to meet legal obligations while building harmonious communities. We also at times proactively reach out to specific condo corporations and provide them with direct guidance on how to meet these obligations.
The CAT also takes into consideration outcomes from previous cases when awarding costs and penalties. In certain previous decisions, for example, the CAT has ordered that some boards re-take the CAO’s mandatory board director training.
7. What is the eligibility criteria for becoming a board member if you have already served many years in the past?
Past service does not prevent someone from running again. Eligibility is defined by the Condo Act and your condo community’s governing documents. Basic qualifications are that a board member must be at least 18 years old, not bankrupt, not legally incapable, and must disclose any conflicts of interest. Some condo corporations may pass by-laws that add more qualifications, such as requiring that directors also be owners in the building.
Directors must also complete the CAO’s mandatory training within six months of being elected or appointed, unless they completed the training in the past 7 years. Failing to do so results in automatic disqualification.
Some condo corporations may choose to have by-laws that limit how many consecutive terms a person can serve.
8. How can boards be held to account when they do not schedule an AGM and continue to delay beyond the six-month requirement?
The Condo Act stipulates that boards must hold AGMs within six months of the corporation being created and every year thereafter.
Start by speaking directly with management or the board in a respectful and collaborative way. Building positive relationships with neighbours and discussing shared concerns can also help prevent conflicts from escalating.
The CAT also offers a quick and affordable option to help people resolve condo-related disputes that fall within its jurisdiction. Requisitioning a meeting or going to court are more adversarial, complex, and costly steps, considered “last resort” options that may require legal advice.
Above all, open communication and working together should always be the first approach.
9. How do you deal with smokers in a non-smoking condo building?
Follow the steps outlined here. If the issue continues, the board should review the CAO’s resources to understand their legal responsibilities before taking further action. As a last resort, the Condominium Authority Tribunal’s online dispute resolution system may help resolve smoke-related issues within its jurisdiction.
Fees, Finances & Reserve Funds
10. Will the CAO get involved in ensuring boards follow the Condo Act when it comes to keeping accurate reserve fund studies?
Reserve Fund Studies can only provide an estimate of future costs. They are similar to a homeowner’s savings used for keeping their home in good repair. Studies must be completed by qualified professionals and must be completed at least every three years. Boards must then send owners a notice outlining how the reserve will be funded. The CAO supports boards in understanding these legal obligations by providing guides and mandatory director training on reserve fund planning.
The Condo Act empowers boards to make specific reserve funding decisions without the approval of the owners. Owners that disagree with the funding plan should raise their concerns in a collaborative way with their board in writing or during owners’ meetings.
If a resolution cannot be achieved, owners may consider raising the issue through an owners’ requisitioned meeting or seeking legal advice.
Requisitioning a meeting or going to court are more adversarial, complex, and costly steps, considered “last resort” options.
Focusing on building relationships with neighbours and discussing shared concerns can be a better way to prevent issues from escalating.
11. Should there be a minimum threshold for reserve account balances, beyond which the CAO must step in?
There is no fixed dollar threshold. Instead, boards must work with experts and should follow the recommendations in their reserve fund studies. These studies help boards determine how much money should be in the reserve fund and how much owners need to contribute to keep the fund healthy.
12. Reserve fund account – can the cost of the reserve fund study be deducted from the reserve fund account, or is it an operating expense?
Yes, it can. Under section 94(7) of the Condo Act, the cost of conducting a reserve fund study is classified as a common expense that the board is legally allowed to charge to the reserve fund account, if it chooses. This flexibility is built into the legislation to ensure boards can manage their financial planning effectively. See more information on reserve funds in the CAO Guide on Condo Reserve Funds.
13. How much surplus is needed, besides the reserve?
There is no universal amount. A reasonable operating surplus should reflect the size and needs of the community, guided by professional advice.
Under section 84(2) of the Condo Act, any surplus must be used to reduce future common expenses or added to the reserve fund—it cannot be paid to owners or mortgage holders. Having a plan in place of what to do with the surplus is crucial. This helps keep the corporation financially stable and promotes good financial management.
14. Why are condo fees getting so high, and how can they be reduced?
Condo fees reflect real costs to run a corporation smoothy and may be affected by operating costs, inflation, insurance premiums, planned repairs, utility costs and more.
Condo boards can help manage increases through preventive maintenance, competitive bidding, implementing energy efficient upgrades, conducting regular reserve fund studies and by maintaining transparent communication with owners. Large fee increases may occur if past budgets have been underfunded or if reserve contributions have been inadequate.
15. Bank borrowing against the condo building must be authorized by a two-thirds majority of unit holders, not just directors. Why is this not enforced?
Condominiums can borrow funds when they need to raise a large amount of money quickly, often for urgent or unplanned projects such as major repairs, weather-related damage, or large replacement projects.
To do this, the corporation must pass a borrowing by-law which, like any condo by-law, usually does not require a two-thirds majority to pass. Most condo by-laws, including a borrowing by-law require that owners representing a majority of units in the corporation vote in favour.
16. Can an appointed director demand a reserve fund study one year early without just cause?
A director cannot unilaterally demand a reserve fund study be done early.The Condo Act requires studies at least every three years, but boards may decide to commission one earlier, provided they agree to it as a group. According to section 32(1) of the Condo Act, corporation business transacted by the board can only be made at a board meeting where a quorum is present.
17. What is the average cost for a condo management provider?
Management fees vary widely depending on building size and scope of services. Boards are encouraged to obtain multiple quotes and set clear contracts. For more information on compensating and obtaining condo management providers, see page 25-26 and Appendix A of the CAO Guide on Overseeing Condo Managers.
18. Why do we need 100 per cent of owners to waive the financial audit in smaller buildings?
Section 60(5) of the Condo Act requires unanimous written consent from all owners to waive an audit only for condos smaller than 25 units that have had a turnover meeting take place. If even one unit owner does not provide written consent, the audit must proceed. This requirement ensures that all owners are comfortable waiving the independent review of the corporation’s finances.
Corporations with more than 25 units cannot waive an audit.
You can read more in our Guide on Condo Finances.
Condo Living
19. Is it fair that condos are subjected to the same property tax rates as single homes, given that the city’s cost of servicing condos is less?
Property tax policy is set by municipalities and the province. Owners may wish to raise concerns with their local representatives.
20. EV charger installations – what are the safety and insurance risk issues?
The specific risks will be different in each community and type of installation. We recommend consulting with an engineer, an Electrical Safety Authority licensed electrician, and an insurance broker to fully understand how risks apply to your community. You may also find our guide to EV chargers.
21. Is it legal to have a lobby camera installed without condo owners being informed?
The Condo Act allows for no formal notice to be provided if the installation is considered as necessary to ensure the safety of residents. However, the CAO would recommend that notice is provided regardless and that the corporation outlines clearly where cameras will be installed, as well as how recordings will be handled.
22. What supports does the CAO provide for conflicts and bullying among board members?
The CAO offers director training, guides, access to our Information Services team, and the CAT for certain disputes. In serious cases of harassment, other legal avenues such as the Superior Court or the Human Rights Tribunal may apply.
The CAT recently released a decision confirming that board members may be ordered to stop harassing other members of the community. However, for the CAT to be able to hear a harassment case, there must be existing anti-harassment provisions in the condo’s governing documents, and the harassment must not be so serious as to risk injury, illness, or damage to the property.
We encourage communities to adopt clear anti-harassment provisions in their governing documents. As a starting point, please review our anti-harassment rule sample.
23. How do you manage a hoarder?
Managing hoarding in a condo community requires sensitivity, collaboration, and realistic planning. Hoarding disorder is a recognized mental disorder and is considered a disability under the Ontario Human Rights Code.
Hoarding can create dangerous conditions such as health risks, fire hazards, infestations, and odours. As condo corporations are responsible for the safety of all residents, visitors and employees, these issues must be addressed.
Corporations should begin by focusing on ways to assist the individual with the hoarding disorder to get support and working with them to create a realistic and timely plan. The duty to accommodate the individual with the hoarding disorder may require the condo corporation to adjust its enforcement procedures and timelines up to the point of undue hardship.
As enforcement escalates, an application to the courts may be required.
24. How can a board work with an ineffective condo manager?
As a best practice, a condo manager that is performing as expected should have a performance review no less than every 12 months. More frequent reviews might be necessary for individuals who are not performing up to standard. Reviews should include specific feedback, delivered in a constructive way, as well as tracking of specific and measurable goals. Boards should approach performance issues from a place of understanding and try to foster conditions where managers can thrive and do their best work.
Boards may also wish to develop a performance improvement plan for a manager whose performance is not improving, or solicit support from the manager’s head-office, if there is one.
Ultimately, boards can decide to terminate a relationship that is not working.
You can read more about developing and improving performance in part three of our Guide to Overseeing Condo Managers.
25. What protection do managers have against abusive boards, other than resigning?
Condo managers and their staff have a right to a safe working environment that is free of harassment.
It is important to review your condo corporation’s declaration, rules or by-laws to see if there are any harassment provisions or obligations. All condo owners, board directors, residents and guests must comply with their condo corporation’s governing documents and the Condo Act.
The Ontario Health and Safety Act also says that all workers in condo corporations are protected from workplace health and safety hazards and that employers, including condo corporations, comply with the Act’s requirements and standards. Condo corporations might need to investigate reported harassment of staff, address any workplace harassment issues, and develop anti-harassment policies.
The Condominium Management Regulatory Authority of Ontario has developed key resources to help condo managers deal with difficult situations, including harassment. The CMRAO provides some guidance as well – such as documenting the situation, setting boundaries, reporting the incident to the board or condo management provider, involving legal counsel, a third-party HR support, or escalating to the authorities, if needed.
26. What support does the CAO provide for new condo directors who feel overwhelmed by their responsibilities?
The CAO offers free, mandatory director training designed to help directors understand their role. In addition, we have guides, templates, and online resources that are available to support directors in managing their responsibilities. We also have Information Services staff available during business hours to help with specific questions. Make sure to subscribe to our newsletter, social media or contact us.
27. Why isn’t the CAT given the authority to handle more serious cases such as board misconduct or financial mismanagement?
Expanding the CAT’s jurisdiction would require a change in the regulations to the Condo Act. The Ontario government is currently considering a proposal to expand the jurisdiction to include issues related to owners’ meetings. Further expansions may happen in the future. If you would like the jurisdiction to expand, make sure to share your thoughts with your local MPP or the Ministry of Public and Business Service Delivery and Procurement.