CONDOCENTRIC: THE ART OF COMMUNICATION - No Good Intention Goes Unpunished (When Helping Hurts)

What do these scenarios have in common?

1. A condominium corporation adds content to a Status Certificate to provide “information of interest” to purchasers;
2. Property management circulates a standard welcome package to new owners; and
3. A condominium website provides unit owners with access to information pertaining to the community, including forms to complete for service requests and details surrounding the status of their unit in respect of common expense payments.  

All are arguably examples of exceptional services being extended to actual or prospective unit owners, right? While none of this is required, such initiatives could only serve to benefit everyone through added education, convenience and accessibility, right? 

Consider this: The above examples all presented actual challenges encountered by our office. In each case, good intentions inadvertently also increased risk exposure.

While we advocate for educational initiatives and other efforts to do more than the minimum required at law, it is important for condominiums to be thoughtful about how they manage risk:

1. If you are going to provide more information than is required, make sure that the context in which you do so is made abundantly clear. A lawyer should be consulted before deviating beyond the prescribed form of Status Certificate, just as a lawyer should be consulted to assist in completing Status Certificates whenever a potentially contentious or unique issue is being addressed, such as litigation.
2. Welcome packages and other educational materials should be accurate, current and reviewed regularly. Circulating erroneous information can ultimately serve the opposite purpose of what is intended and can fuel conflict while undermining the competency of the Board and property management.
3. If you are going to have a website, have a website! Keep it active and legally compliant. Outdated information, lack of attention to electronic initiatives and a non-AODA friendly website can detract from building and connecting the community. Whether it be an on-line service request form that never gets viewed, the contact information of a prior property manager being listed or other outdated information being posted as current, a condominium corporation can face an array of issues by maintaining inaccurate and/or non-current information. What risks are you possibly setting your community up for?

Earlier this year, I wrote an article titled “Is E-mail Always Easier?” which examined the pros and cons of electronic communications in the context of condominium communities. While there are certainly advantages of embracing technology, complications arise through the use thereof. Consider the example cited in said article of a unit owner failing to realize that he had not updated the condominium’s records to reflect his name and address as he relied on electronic communications from the Board and property management. A Notice of Lien was issued in accordance with the requirements of the Condominium Act, 1998 (the “Act”) but not to the owner and while the legal position of the condominium corporation was not affected as a result, what about its relationship with the unit owner?

Lawyers serve communities by analyzing risk/exposure and the 3 scenarios set out at the outset of this article certainly merit concern in that respect. Efforts to go above and beyond have the potential of backfiring, resulting in a Board or property management shooting itself in the foot. So, why are they initiated in the first place? Why risk additional exposure to liability by doing more than is required at law? Often, such endeavours are initiated with the intention of improving community communications, thus the motivations are positive.   Whether it is to help educate members of the community about condominium documents, maintenance initiatives or even fostering a friendly culture of transparency between a Board of Directors and unit owners, the underlying purpose is to build relationships. 

Relationships are of paramount importance in condominium communities. Communications can go a long way in shaping relationships – particularly those between unit owners, Boards and property management. Going above and beyond the minimum communications required by law can, in turn, go a long way in forming good relationships and pre-empting disputes but there is a balance to be achieved. It is prudent to recognize there is a potential downside to doing more than is required and it is important to seek legal advice when warranted to manage liability.

We encourage educating and serving your condominium community…just make sure that you mange the risk and responsibility in the best interest of the condominium corporation. 

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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