Law Times

www.lawtimesnews.com LAW TIMES 8 COVERING ONTARIO'S LEGAL SCENE | JANUARY 21, 2019 BY MARG. BRUINEMAN For Law Times L awyers are bracing for another wave of amend- ments to the Ontario Condominium Act, but there are questions about when they'll be enacted and if the change in provincial government will alter the course of the previously laid plans. Given that lawyers and those who work in the condominium industry are still absorbing the first phase of changes, which starting rolling out in November 2017, some say they are not in a hurry to see the implementation of the next wave. "We haven't really gotten any clear guidance from [the gov- ernment] on when these things are going to arrive," explains Ottawa lawyer James Davidson, a founding partner at Davidson Houle Allen LLP in Ottawa. Despite the uncertainty, he is encouraged by some of the antici- pated changes. He says he expects requirements related to planning for condominium corporation reserve funds will be clarified with the new amendments and that could extend the reserve fund study period required for reserves beyond 30 years. That, he says, will improve fund plan- ning for condominiums and clarify how it is meant to work. The amendments are also intended to usher in mandatory shared facilities agreements, he adds. In the past, there was no requirement for an agreement for resources shared between condo complexes, such as a road, says Davidson. That left some doubt as to whether or not the parties are obligated to share in the costs to maintain that shared facility and it came down to the enforceability of positive covenants — or the obligations of each of the condo boards — which he calls ridiculous. The new amendments will clear that up, he says, so there's no longer a question about enforceability of positive cov- enants. The government has said little about timing. "At this time, we continue to engage with industry, stakehold- ers and Ontarians on potential policy options to ensure the ap- propriate consumer protections are in place," said David Wool- ley, press secretary for the pro- vincial Minister of Government and Consumer Services Bill Walker, in an email statement. Davidson also anticipates clarification about directors elected by the owners who reside in their own units, that could eliminate the need for a separate election and simplifies the pro- cess. There are new procedures for meetings requisitioned by condo-unit owners in the offing as well that he says will improve the process. Davidson says the first phase of amendments, which started coming into force more than a year ago, have been largely ab- sorbed. However, he says he's frustrated about the lack of com- munication over when the next phase will be implemented. "There are things that are helpful enough, that I'd like to have them. We planned for them, we went through all the education for them, we've told people all of this is coming, now all of this is [on] hiatus," he says. "It creates confusion." Audrey Loeb, a partner with Shibley Righton LLP in Toronto finds the overall approach to both the first and second phas- es is problematic, in that the amendments are overly cumber- some. She feels that the legisla- tive changes and the regulations that accompany them try to an- ticipate every eventuality, which she says is impossible. She would like to see the new provincial government take some time to revisit the second phase of proposed amendments with an eye to streamlining them. "It's not that I'm against im- proving the Condominium Act, I'm not at all. I just think 66 pages of regulations on six sections of legislation [in the Condominum Act amendments] is more than anyone can handle," says Loeb, as was done in the first phase. Laura Glithero, a partner with Cohen Highley LLP in London, wants to see how some practical considerations for con- do corporations will ultimately roll out in the second phase. "I am looking for more clarity in terms of the repair and main- tenance obligations and modi- fications to common elements. Those sections are fundamen- tal to how condo corporations operate," she says. She wants to know if the ob- ligations to condo corporations are going to change and, if so, how. She's also concerned with the issue of deductions. Some condo corporations currently have a bylaw allowing them to pass on the expense of a deduct- ible to a unit owner, who may claim that in their own home- owner's insurance, she says. "There are practical conse- quences for condo corporations depending on the interpretation of this section," she says, adding that she would like to see clear communication of any changes made to owners, board mem- bers as well as property manag- ers and lawyers who work in the industry. LT First phase largely absorbed No word when second phase of changes coming Tribunal still deal- ing with records cases only P.10 Electronic voting could help with governance P.11 Focus on Condominium Law FOCUS We haven't really gotten any clear guidance from [the government] on when these things are going to arrive. James Davidson James Davidson says in the past, there was no requirement for an agreement for resources shared between condo complexes, such as a road. 2019 CANADIAN LAWYER LEGAL FEES SURVEY Survey closes January 28 Complete the survey at canadianlawyermag.com/surveys for a chance to win a $200 Amazon gift card. Check out the results in the April issue to see how your fees compare across multiple practice areas. $ Untitled-2 1 2019-01-02 10:14 AM

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