As Ontario heads towards mandatory licensing of Condo Managers (and Condo Management Providers), we have been exploring the “ins and outs” of the new Condominium Management Services Act. In this post, we review the various exceptions to the Province’s mandatory licensing requirements.
Recap of recent posts
In a recent post, we looked at the scope of services captured under this new legislation and at the licensing requirement. For the first 2 to 5 years in business, new condo managers will have to work under supervision with a Limited Licence. Thereafter, condo managers will be able to apply for a full General Licence.
Who is exempt from mandatory licensing?
While Ontario is imposing a strict licensing regime to anyone providing condo management services, there are exceptions under this new legislation. Indeed, under the proposed regulation, the following people will not be required to hold a licence:
- Lawyers, architects, accountants, engineers and insurance brokers authorized to offer these professional services and who are, indeed, providing such services;
- A Reserve Fund Study provider who is providing such a study;
- A bank, credit union or caisse populaire;
- A receiver appointed under the Courts of Justice Act;
- An inspector or administrator appointed under the Condominium Act;
- A security guard who is supervising an employee or contractor hired by the corporation or who is collecting/holding contribution to the common expenses provided that they promptly deliver the money to the corporation or to a licensed Condo Manager for the corporation;
- An employee of a licensed Condo Management Provider or of a condominium corporation who collects/holds contribution to common expenses, if the authority to collect and hold these contributions have been delegated to him/her in writing and if, promptly after receiving these monies, the individual delivers them to the corporation or to a licensed condo manager for the corporation.
- A person exclusively providing repair or maintenance services, including landscaping services and cleaning services. This class refers to, amongst others, superintendents, concierges, custodians, etc.
These individuals will not have to be licensed under the Condominium Management Services Act even if some of the services they render may otherwise fall under the definition of “Condominium management services”.
There are two additional very important exceptions to mandatory licensing.
Condominium directors, whether elected by the owners or appointed by the board to fill a vacancy, will not be required to be licensed, even if this person receives compensation for his/her work as a director pursuant to a by-law adopted by the corporation. However, it is important to note that any director who is providing condo management services in exchange for compensation or reward (or with the expectation of same) will be required to be licensed. At first glance, there may seem to be a contradiction in what I just stated. But stated otherwise, any director (paid or not) does not require to be licensed provided that they are not providing paid condo management services. The minute they do, they require a licence. It is therefore important, if you are a paid director to familiarize yourself with what constitutes condo management services to ensure you do not fall within the category of services requiring a licence.
Self-Managed condominium corporations
Similarly, self-managed condominium corporations will not be required to be licensed provided that the individuals managing the corporation do not receive compensation or rewards (and do not have any expectation of same). Basically, if you are paid or rewarded to manage the corporation, you need a license.
Managers applying from other jurisdiction
Individuals with an equivalent condo management licence from a jurisdiction outside of Ontario may also be exempt from some of the application requirements.
The Province is Inviting Your Comments
Please note that the information in this post is based on a draft version of the regulations proposed to be adopted pursuant to the Condominium Management Services Act. These regulations are still in draft form and subject to change. Anyone wishing to comment on the proposed regulations is invited to do so before February 6, 2017. Comments can be sent by email or by mail at 56 Wellesley Street West, 6th Floor; Toronto, ON; M7A 1C1. You should quote proposal number 16-MGCS023.