Page 12 - ACMO_CM_W24

Legal & Regulatory Updates

Chris Jaglowitz
Common Ground Condo Law

Condo Act Amendments on

Chargebacks Needed Urgently

Why Updating the Condo Act is Crucial for Efficient Management

The Condominium Act, 1998 contains proclaimed soon. Industry groups, includ- province and, as a result, with differ-
pathways for solving many complicated ing ACMO and CCI, worked hard for the ent levels of success. Many condo
issues related to condominium operation, amendments, which would simplify the corporations, therefore, write off recov-
like governance, repairs and mainte- chargeback process and ensure continuity, erable costs because there is no easy or
nance, sale or lease of units, meetings and reduce administrative burdens for condo- economical way to deal with them short
voting and more. But there’s one impor- minium managers, and foster a more of using the lien process, which merely
tant way that the Act falls short. It fails to harmonious condo community environ- escalates and complicates a simple
address the complexities and inefficien- ment. By streamlining the chargeback dispute, usually over a small amount.
cies associated with levying, disputing process as expressed in amended section In addition, a common feature of
and collecting chargebacks of certain 84, we can ensure fairer and more trans- chargeback disputes today is that owners
costs as additional common expenses. parent management, ultimately enhancing often do not dispute the chargeback
Let’s examine where we stand, how we the quality of life for all condominium soon after it is posted. Instead, they only
got here, and what needs to be done. residents. It would be a shame if these emerge with a challenge after the condo
significant amendments were lost. corporation starts or advances the lien
Critical need for legislative process, by which point much time and
changes for chargebacks Impact of proclaiming legislative cost has been wasted, making it harder
At present, amendments to section changes to s.84 to resolve the issue cheaply.
84 of the Condominium Act, 1998 (as Handling chargebacks is, and has For these reasons, industry stakehold-
set out in section 77 of the Protecting always been, a sticky subject. Charge- ers like ACMO and CCI advocated for Photo: ©iStock.com/ Supatman
Condominium Owners Act, 2015) remain backs are a common source of disputes a sensible process to notify owners of
unproclaimed. These amendments are at and friction between corporations and chargebacks in a uniform, simpler way
risk of automatically expiring some time unit owners. They are handled differ- and then provide owners a short but
in 2025 (the 10 year mark) unless they are ently by management firms across the reasonable opportunity to make a timely,
12 I CM Magazine WINTER 2024