The start of a new year is an ideal time for condominium corporations to pause, reflect, and ensure that their legal and governance foundations are in order. Just as individuals set New Year’s resolutions, condominium corporations can benefit from a structured legal “check-up” to reduce risk, improve compliance, and set the stage for a smoother year ahead.
Below are key legal and governance areas Ontario condominium corporations should review as the year begins.
Review Governing Documents
Declarations, by-laws, and rules should evolve alongside the corporation. Many condominium corporations operate with documents that are outdated, inconsistent with current practices, or no longer aligned with the Condominium Act, 1998.
A New Year review is an opportunity to:
- Confirm by-laws comply with current legislation
- Ensure rules reflect how the community actually functions
- Identify unclear provisions that may lead to disputes
Confirm Policies and Procedures Are Current
Corporations are increasingly expected to maintain clear, written policies, particularly around records access, compliance enforcement, privacy, and owner communications.
Consider whether:
- Policies are documented and up to date
- Directors, managers, and staff are familiar with them
- Recent legislative or regulatory changes have been addressed
Director Compliance
Directors play a critical governance role and must meet statutory requirements, including mandatory training.
At the beginning of the year, condominium corporations should confirm that:
- All directors have completed CAO-required training
- Director terms, appointments, and resignations are properly recorded
- Signing officers and banking authorities are current
Review Contracts and Vendor Relationships
Many service contracts renew automatically, sometimes on terms that no longer serve the corporation’s interests.
A proactive review can help ensure:
- Contracts remain appropriate and cost-effective
- Renewal and termination provisions are clearly understood
- Risk and liability exposure is properly managed
Records, Transparency, and Owner Communication
Clear records and consistent communication reduce disputes and build trust within the community.
Corporations should ensure:
- Records are properly organized and accessible
- Record-keeping and retention practices meet legal requirements
- Communication practices are consistent, professional, and timely
Risk Management and Dispute Prevention
Addressing issues early can prevent escalation. Reviewing enforcement practices, dispute resolution processes, and insurance coordination can significantly reduce legal exposure over the year ahead.
Starting the year with a focused review of governance and legal practices can help your condominium corporation operate more smoothly, reduce risk and avoid preventable issues. A proactive approach early in the year often leads to better decision-making and fewer disputes as the year unfolds.
Important Notice
This article is provided for general informational purposes only and does not constitute legal advice. Condominium corporations should obtain legal advice specific to their circumstances.