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O. Reg. 4/18: COMPLAINTS, INSURANCE AND OTHER REQUIREMENTS

under Condominium Management Services Act, 2015, S.O. 2015, c. 28, Sched. 2

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current January 15, 2018 (e-Laws currency date)

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Condominium Management Services Act, 2015

ONTARIO REGULATION 4/18

COMPLAINTS, INSURANCE AND OTHER REQUIREMENTS

Consolidation Period: From January 15, 2018 to the e-Laws currency date.

Note: THIS REGULATION IS NOT YET IN FORCE. It comes into force on February 1, 2018, the day sections 48 and 57 of Schedule 2 to the Protecting Condominium Owners Act, 2015 come into force.

No amendments.

This is the English version of a bilingual regulation.

Complaints

Notice to principal condominium manager

1. If the registrar makes a written request for information from a licensee under subsection 57 (1) of the Act, the registrar shall give a copy of the request to,

(a) the principal condominium manager of the condominium management provider, if the registrar requested the information from the provider; and

(b) the principal condominium manager of the condominium management provider that employs the condominium manager, if the registrar requested the information from the condominium manager.

Notice of action taken

2. If the registrar takes any action described in paragraphs 1 to 7 of subsection 57 (4) of the Act in respect of a complaint against a licensee, the registrar shall give written notice of the action to,

(a) the principal condominium manager of the licensee, if the licensee is a condominium management provider;

(b) the licensee and the principal condominium manager of the condominium management provider that employs the licensee, if the licensee is a condominium manager employed by a condominium management provider; and

(c) the licensee and the board of directors of the client, if the licensee is a condominium manager employed directly by a condominium corporation.

Obstruction prohibited

3. A licensee shall not obstruct, interfere with or hinder any person from,

(a) making a complaint to the registrar about a licensee; or

(b) providing information that the person is authorized to provide to the registrar, the director, a condominium corporation, the board of a condominium corporation or a condominium management provider, relating to,

(i) the conduct of a licensee, or

(ii) the potential contravention or failure by any person to comply with the Act or the regulations made under the Act.

Insurance

Insurance

4. (1) Every licensed condominium management provider shall maintain errors and omissions insurance that includes coverage for every condominium manager that the provider employs.

(2) Every licensed condominium management provider shall maintain fidelity insurance, including against losses that a client of the provider suffers and that arise from dishonesty of condominium managers that the provider employs or of other employees, directors and officers of the provider.

(3) If requested by the registrar, a licensed condominium management provider shall provide the registrar with any information about the provider’s insurance coverage required under subsections (1) and (2).

(4) Before entering into a contract for condominium management services with a client, a licensed condominium management provider shall provide certificates of insurance for the insurance required under subsections (1) and (2) to the client that include details, in each case, of,

(a) the type of the insurance coverage;

(b) the amount per occurrence and in aggregate that the insurance provides;

(c) the insurer;

(d) the policy number for the insurance; and

(e) the commencement date and the expiry date of the insurance.

(5) A licensed condominium management provider shall notify the provider’s client in writing of the cancellation, termination or any other material changes to the provider’s insurance coverage as required under subsections (1) and (2), within 15 days of the earlier of the date that the provider is notified of the changes and the date that the changes take effect.

Other Requirements

Disclosures by licensees

5. (1) Before entering into a contract for condominium management services with a client, a licensee shall disclose in writing to the client,

(a) a description of the condominium management services that the licensee reasonably believes may be appropriate to meet the needs of the client, based on the description of those needs that the client gives to the licensee;

(b) a description of the services and associated costs that the licensee would provide under the contract;

(c) a statement whether any services, discounts or other benefits provided by the licensee to the client are contingent on the client continuing to purchase one or more services from the licensee or from an interested person in respect of a licensee;

(d) a statement whether any of the services that the licensee would provide under the contract will be provided in whole or in part by a person other than the licensee or could reasonably be expected to be so provided and, if applicable, the name of the person and a description of the service to be provided by the person;

(e) if applicable, any material interest that the licensee or an interested person in respect of the licensee has in another business that is offering or could reasonably be expected to offer services to the client; and

(f) if applicable, any direct or indirect financial benefit that the licensee or an interested person in respect of the licensee may receive from another person in connection with providing condominium management services to the client;

(2) For the purposes of subsection (1), a person shall be deemed to be an interested person in respect of another person if the person is associated with the other person or if, in the opinion of the registrar,

(a) the person has or may have a beneficial interest in the other person’s activities;

(b) the person exercises or may exercise control either directly or indirectly over the other person; or

(c) the person has provided or may have provided financing either directly or indirectly to the other person’s activities.

(3) Before entering into a contract for condominium management services with a client, a licensee shall disclose in writing to the client and any other affected client of the licensee that the following circumstances exist, if they exist:

1. The client and the other client are parties to the same outstanding litigation.

2. The client and the other client share in or have agreed to share in the provision, use, maintenance, repair, insurance, operation or administration of the same land, same part of a property, same assets of a condominium corporation or same facilities or services.

(4) In subsection (3),

“property” has the same meaning as in subsection 1 (1) of the Condominium Act, 1998.

(5) If the contract for condominium management services that a licensee has entered into with a client does not prohibit the licensee, during the course of providing the services, from entering into another contract with another person to provide any of the services, then before entering into the other contract, the licensee shall disclose to the client the name of the person and a description of the services to be provided by the person, except if the licensee has disclosed that name and description to the client under clause (1) (d).

(6) If, during the course of providing condominium management services, a licensee becomes aware that any of the matters described in clause (1) (e) or (f) or any of the circumstances described in subsection (3) have arisen, the licensee shall disclose the occurrence of the event to the client in writing as soon as reasonably possible after becoming aware of the occurrence of the event.

Client records

6. A licensee who holds records on behalf of a client shall,

(a) ensure that the records are maintained securely, accurately, and with care and due regard for the client’s obligations under section 55 of the Condominium Act, 1998;

(b) upon request by the client, make the records available for inspection by the client as soon as reasonably possible; and

(c) at the request of a client, transfer to the client any records held by the licensee, or a copy of the records, as soon as reasonably possible.

Supervision

7. A licensed condominium management provider shall ensure an adequate level of supervision for condominium managers whom the provider employs and who hold a limited licence under Ontario Regulation 123/17 (General) made under the Act.

8. Omitted (provides for coming into force of provisions of this Regulation).

 

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