Law Times

Law timeS • September 19, 2011 NEWS PAGE 5 Condo lawyers skeptical of NDP reform proposals C BY MICHAEL McKIERNAN Law Times ondominium lawyers are hoping the provin- cial election campaign will prompt a fresh look at the outdated Condominium Act. Th e legislation got its most re- cent update in 1998. Lawyers in the fi eld say it's time for a change. "We're kind of hoping be- cause it's something that des- perately needs attention," says John Deacon, a partner at Dea- con Spears Fedson & Monti- zambert, a Toronto fi rm that specializes in condominium law. "Before the most recent changes, you have to go back another 20 years until the last ones, so it's quite a long time." According to Chris Jaglow- itz, a lawyer with Gardiner Mil- ler Arnold LLP, the explosion in the condo market means some politicians have turned their attention to those living in that type of arrangement. Th e prov- ince is home to 10,000 condo- minium corporations covering more than 500,000 units and an overall population of about one million people. "Th ey're taking notice of the voting power these people have," Jaglowitz says. "It's not a com- munity that is well-organized politically, but just the sheer size of the constituency is growing to the point that one day, if it does become much more cohesive, it will be an extremely formidable voting power." NDP MPP Rosario Marchese is one of the politicians who have latched onto condo issues. Dur- ing the last sitting of the legisla- ture, he introduced bill 79, the condominium owners protec- tion act. Th e bill got stuck at the committee stage and died on the order paper when the election was called, but Marchese has vowed to reintroduce it in the next session if re-elected. Marchese's bill, prompted by horror stories from constituents in his Trinity-Spadina riding in downtown Toronto, proposed a tribunal to deal with disputes between unit owners, boards, and developers. Stephen Dupuis, president and CEO of the Building In- dustry and Land Development Association, says the proposal misses the mark as consumers already have adequate protec- tion. According to Dupuis, con- sumers were the primary focus of the 1998 changes when the government added a cooling- off period that allowed buyers to cancel a purchase within 10 days of agreeing to it. "You're buying an expensive piece of real estate," he says. "Do some homework and hire a lawyer. Don't sign a deal and then ask a lawyer. Don't com- plain that you didn't know when you never asked. Buy with your eyes wide open." Jaglowitz calls Marchese's bill "more populist that practical" and says the tribunal the MPP envisions would lack power. Untitled-1 1 www.lawtimesnews.com 11-09-14 9:11 PM "People can go running to Mr. Marchese's tribunal, but the fact is other than getting everyone to talk about their hold hands and feelings, that review board does not have the power to give orders to resolve disputes," Jaglowitz says. "What condominium corporations like about going to court is you do typically get a fairly fi nal answer to the problem. I can see what he's trying to shoot at, but it falls really short of the mark." Deacon says another reason Marchese's bill stalled was the cost of the tribunal. With one million potential users, he be- lieves it would probably need a large subsidy from the province. "Th e tribunal idea certainly refl ects real concerns, and it is very expensive for condo owners to do anything," he says. "It's not a bad idea, but I can't see many governments jumping into that." In Deacon's view, while Marchese's bill has generated some attention on reform of 'What condominium corpora- tions like about going to court is you do typically get a fairly final answer to the problem,' says Chris Jaglowitz. condo legislation, its narrow focus on consumer protection meant it ignored other press- ing issues in the fi eld. "I don't think it hit on what the indus- try's concern is, which is the ad- ministration of condominium properties." Earlier this year, the Can- adian Condominium Institute and the Association of Condo- minium Managers of Ontario submitted an exhaustive joint proposal that goes through the old act in detail. Th e legisla- tive brief calls for clarity on a requirement that condos carry "adequate" reserve funds with- out defi ning adequacy. It also recommends simplifi ed board elections after the last overhaul mandated separate votes for a unit owner representative. "Th e legislative brief is much more balanced and much more likely to achieve more mean- ingful results to a greater num- ber of people," Jaglowitz says. But Dupuis isn't so sure the act needs reform despite the passage of more than a decade since its last major amend- ments. "If the government came to us and said they were going to open it up for good reasons, then we could give them a list. But we don't think it's necessary. Th is is the devil we know and we're quite happy with it." Jaglowitz is working with the institute to capitalize on the interest in condo issues and push its proposals for change. Th e group has held candidate debates focusing on condo issues in the Toronto ridings of Willowdale and Etobicoke- Lakeshore with more events planned. Jaglowitz says one target is Marchese's Trinity- Spadina riding. "Even though we don't al- ways agree with him, it's so fan- tastic to have a politician who's enthusiastic about these things and is committed to attempting to make some kind of positive change," he says. "We're hoping to generate some buzz among the condo community and, most importantly, raise aware- ness in the ranks of politicians and candidates that these people do need some attention." ERAssure is the exclusive Preferred Supplier of executor E&O insurance for Canadian Bar Association members. Executor insurance. Protection for your clients that's smart for your practice. www.ERAssure.com 1-855-636-3777 Q Your executor client becomes the subject of legal action for estate administration errors. Are you at risk? A If they aren't insured, the answer is a resounding yes. An uninsured claim for damages against an executor often results in an action against the estate solicitor alleging negligence. 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