Understanding the Condo Act of Ontario: A complete guide

This article is provided for general informational purposes only and does not constitute legal, financial, or real estate advice. Laws change frequently and vary by province. Readers should consult with a qualified professional for advice specific to their individual circumstances.
 

What is the Condo Act of Ontario?

The Condo Act of Ontario (also known as Condominium Act, 1998) is the primary legislation that governs the creation, management, and administration of condominiums in Ontario. It applies to all types of condo corporations, from high-rise towers to townhome communities.

The Act establishes the legal structure and rules for how condo corporations are run. It outlines the rights and responsibilities of unit owners, the powers and duties of the board of directors, and the governance framework that supports financial management, dispute resolution, and community decision-making.

The most notable changes to the Condo Act of Ontario occurred in recent years following the passing of the Protecting Condominium Owners Act, 2015, which introduced sweeping updates around board transparency, meeting notices, and training. Most recently, Bill 91 (also known as the Less Red Tape, Stronger Economy Act, 2023) introduced several important changes that came into effect on October 1, 2023.
 

Changes and updates: What’s new as of October 1, 2023

Bill 91 introduced permanent amendments to the Condominium Act that modernize virtual meeting practices and electronic communication. Highlights include:

• Virtual and hybrid meetings: Condo corporations are now generally permitted to conduct virtual or hybrid meetings without needing a specific bylaw, unless existing bylaws state otherwise. Board meetings may also be held virtually without requiring unanimous consent from directors. Meeting notices must now include clear instructions on how to attend electronically.
   
• Electronic voting: Voting, including elections, may be conducted virtually or in a hybrid format, unless a corporation's bylaws explicitly prohibit it.
   
• Electronic delivery of notices: Notices can now be sent to owners via electronic communication if the owner’s email address appears in the corporation’s records, subject to prescribed conditions.
   
• Electronic contact records: Corporations may include owners' email addresses in their records for the purpose of notice delivery, in accordance with prescribed rules and applicable bylaws.
   
• Privacy protection: Owners' contact information relating to specific units may be excluded from records access, unless a specific exemption applies.
   
• Legislative clean-up: Part IV.1 of the Act was repealed as of October 1, 2023, removing temporary emergency meeting provisions. Other updates throughout the Act further clarify electronic communications and meeting procedures.

Roles and responsibilities: Owners, boards, and managers

The Condo Act of Ontario distributes responsibilities among different stakeholders. While the board oversees governance, unit owners maintain certain rights and obligations, and licensed condo managers provide administrative and operational support.

Boards of directors play a central leadership role. Elected by the owners, they must act honestly, in good faith, and in the best interests of the corporation. Their tasks include preparing budgets, managing the reserve fund, hiring vendors, and making decisions about repairs and capital improvements. They also interpret and enforce rules and regulations.

Unit owners, meanwhile, have a right to participate in meetings, vote on key issues, and request access to specific records. They are also required to comply with the governing documents and pay their share of the common expenses.

Condo managers, licensed under the Condominium Management Services Act, 2015, serve as the operational arm of the board. Their support includes supervising building staff, coordinating maintenance, managing finances, communicating with residents, and keeping the corporation in compliance with legal requirements. An experienced manager can help simplify complex tasks and reduce the risk of oversights.
 

Financial management and reserve funds

Financial transparency is a major focus of the Condo Act of Ontario. Condo corporations must prepare an annual budget that outlines expected revenues and expenses, which owners receive in advance of each fiscal year. Boards are also required to maintain a reserve fund — a savings account used for major repairs and replacements.

The reserve fund must be supported by a reserve fund study, typically conducted every three years. These studies analyze the lifespan of common elements and recommend annual contributions to help boards meet future obligations without special assessments.

Recent updates have encouraged the consideration of sustainability and long-term infrastructure needs in reserve planning, though these are currently recognized as best practices rather than formal requirements.

Condo corporations must also provide owners with regular financial statements, usually in the form of an audited annual report. These documents give insight into how funds are being spent and whether budgets are being followed.
 

Governance and meetings

Board meetings, owner meetings, and AGMs are all governed by rules laid out in the Condo Act of Ontario and each corporation's bylaws. Meetings must be properly noticed, held at accessible times, and recorded in meeting minutes. Certain topics — such as approving the budget or electing directors — can only be addressed at meetings where quorum is met.

The Condominium Authority Tribunal (CAT), Ontario’s online dispute resolution body, has expanded its jurisdiction to include issues related to meeting minutes, voting procedures, and board communication practices. This gives owners an additional avenue to seek resolution when procedural issues arise.
The shift to digital platforms means boards must carefully manage meeting notices, voting records, and technology access to maintain the integrity of the process. This is an area where experienced condo management teams can offer real value — not just by managing the logistics, but by advising on compliance and current recommended best practices.
 

Records and access to information

Another key pillar of the Condo Act of Ontario is access to information. Owners may have the right to inspect core records such as financial statements, meeting minutes, insurance policies, and contracts. The process for requesting these records became more efficient in 2023, with new online request forms and standardized timelines.

Corporations are generally required to respond to records requests within 30 days of receiving them (or receiving any required fee), unless otherwise specified by regulation. Digital records (such as PDFs or secure links) are now commonly used, provided this method complies with regulations and is acceptable to the requesting owner.

Boards are expected to maintain proper documentation of all corporate decisions, meeting outcomes, and financial transactions. Having a robust records system is more than a compliance requirement — it can support transparency and help future boards make informed decisions.
 

Enforcement and dispute resolution

Enforcing the community's declaration, bylaws, and rules is part of the board's mandate. When owners or residents violate these standards — whether it’s due to noise complaints, short-term rentals, or unauthorized renovations — the board is tasked with addressing the issue through written notices, and, where authorized, chargebacks for enforcement costs, or legal action when necessary. Note that the Condo Act of Ontario does not explicitly authorize “fines”; any monetary charges must comply with the Act and the corporation’s governing documents, such as chargebacks for actual costs incurred.

Condo management professionals like FirstService Residential can play a critical role in identifying violations, documenting issues, and guiding boards through the appropriate resolution process. If your Ontario condo board is looking for guidance, contact a member of our team today.