CONDOMINIUM PURCHASERS UNAWARE OF THE PRESENCE OF CREATURES!!!

Many condominium purchasers do not realize that 3 unique creatures exist everywhere in their condominiums – they are the Declaration, by-laws and rules!

This has been raised as a concern in the Ontario legislature within the context of proposed changes to the Condominium Act, 1998 and considered at the ADR Institute of Ontario’s recent discussion on condominium disputes.

Why are these creatures so important? Because they set the expectations of those living in the condominium community.  They are the keys to the car or the rules of engagement.  Would you buy a car but not ask for the keys?

Condominium purchasers are offered the chance to learn about these strange creatures, unique to each community, through a review of the Status Certificate before buying.  As we constantly see purchasers (knowingly and unknowingly) avoid the time and cost involved in a Status Certificate review, the results can be disastrous, disappointing and disheartening.

While, somewhat after the fact, it is nonetheless fortunate that Boards and property managers are increasingly taking action to help new owners help themselves.  They are circulating welcome packages and undertaking other efforts to educate those new to the condominium.  Such efforts should be applauded as they capitalize on an opportunity to educate new owners in the course of welcoming them to the community and, in many cases, the condominium lifestyle.  This facilitates a clearer communication to owners of what the condominium community is all about and shapes expectations for living in it.  For those new to the condo lifestyle, it can be a shock to the system (i.e. “What do you mean I can’t choose the colour of my own curtains or hang a wreath on my unit door?”).

In reflecting upon the benefits of educating new owners on the issues that often arise as a result of lack of knowledge, I wonder if we should consider taking these communications a step farther?

Consider:

1. Posting your condominium’s Declaration, by-laws and rules on your community website so that they can be easily accessed by all without the cost or delay of awaiting the issuance of a Status Certificate.  This would not only benefit potential purchasers as increased accessibility to the condominium’s governing documents can help keep everyone with an interest in the community informed.
    
2. Creating a pamphlet and/or section on your condominium’s website dedicated to potential purchasers.  You can: 
    
   1. Sell the benefits of your community by posting pictures of amenities, noting upcoming social events and sharing expressions from residents as to why people love being part of your great community (i.e. location, diversity, etc.);
       
   2. Circulate information surrounding certain initial administrative matters, for example: 
      
      
       i.      How to order a Status Certificate;
       ii.      How to update ownership information; and
       iii.     How to make an elevator reservation to move in;
   3. Set out policies and procedures that your condominium corporation has in place (i.e. how to get permission to put up that satellite dish);
       
   4. Draw attention to key provisions in your condominium documents that highlight important values of the community.  You can clearly state that this is not an all-inclusive list but rather a few key provisions that all residents/owners should keep in mind; and
       
   5. Post answers to frequently asked questions of new owners/residents.

An advantage of reaching out to both prospective purchasers and existing owners / residents is that the Board has the opportunity to control the message.  We recommend that the message be positive and the focus be on sharing facts about the community, as opposed to anything which may be controversial or subjective.

3. Creating a pamphlet and/or section on your condominium’s website for realtors involved in showing properties within the community.  This can include:
   
   
   1. Guidelines in respect of matters such as lock boxes, policies on open houses, where to park, etcetera, that will serve to minimize disruption for the community;
       
   2. Information that the realtor can pass onto his/her client, such as the pamphlet for potential purchasers, key provisions of the condominium documents which may be of interest (i.e. Is the community pet friendly?) and a reminder of the importance of carrying out a full Status Certificate review; and
       
   3. Where to find notices that the realtor may want to take into account when scheduling a viewing, such as routine fire alarm testing. 

It is prudent to be cautious as to how much information is shared. Thus, consulting with counsel around these parameters is key.

As helpful as welcome packages and other endeavors are to welcoming and educating new owners into the condominium community, it is not always the case that the Board or property management is aware of a new owner’s existence.  The onus is on the owner to give written notice to the condominium corporation to update its records and it is not uncommon for this process to be unknown, neglected or even ignored.  Extending efforts to reach out to potential and new purchasers such as set out above can help overcome this obstacle.

While the focus of this article is upon educating those new to their condominium community, it cannot be assumed that uninformed purchasers become educated owners over the course of time.  Just like continuing education is important for those servicing condominium communities, efforts to educate and keep existing residents and owners informed are worthwhile.  This will be expanded upon in a future edition of the “Art of Communication” article series.  

By Marc Bhalla - June 2012
Hons. B.A., Q. Med. - Mediator and Senior Clerk

Ext:  811
Email:  mbhalla@elia.org 
Toll-Free:  1-866-446-0811

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 All of the information contained in this article is of a general nature for informational purposes only, and is not intended to represent the definitive opinion of the firm of Elia Associates on any particular matter. Although every effort is made to ensure that the information contained in this newsletter is accurate and up-to-date, the reader should not act upon it without obtaining appropriate professional advice and assistance.

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