In this series of posts, we explore the various condo management licences that will be granted under the new Condominium Management Services Act. Here, we summarize the nature and requirements of the limited licence. This licence will require that condo managers work under supervision for up to 5 years before being able to apply for a general licence. This licence will also limit the scope of what these managers can do.

Purpose of the Limited Licence

In a nutshell, the limited licence will require that new condo managers work under the supervision of a supervising licensee for a period of at least 2 years before being able to apply for a general licence. Limited licensees will only have 5 years to meet the requirements of a general licence as the limited licence will not be renewable beyond this period (unless not to allow a renewal would cause undue hardship to the licensee).

Limits of What a Limited Licensee Can Do

During the period of supervision, the condo manager under a limited licence will have to work within the following restrictions:

  • The limited licensee will not be allowed to enter into a contract or other agreement on behalf of a condominium corporation without obtaining the prior approval of the supervising licensee;
  • The limited licensee will not be allowed to manage, control or disburse monies from the corporation’s general fund without prior approval of the supervising licensee;
  • The limited licensee will not be allowed to sign a Status Certificate on behalf of a condominium corporation; and,
  • The limited licensee will not be allowed to manage, control or disburse from the reserve fund account. This fund will be entirely out of reach of the limited licensee.

Responsibilities of the Supervising Licensee

The supervising licensee will have to oversee the work of the manager with a limited licence. He or she will be responsible for the work being supervised and for approving the work (when prior approval is required – for instance to disburse funds from the general fund). The supervising licensee will also need to be readily available to assist the manager with a limited licence but will not necessarily be required to be physically present with the licensee.

Who Can Apply For a Limited Licence?

In order to apply for a limited licence, the applicant will have to have successfully completed the educational and examination requirements. Unfortunately, the exact nature and extent of these requirements are not yet known but we know that the Registrar will be able to recognize prior programs of study, training, internship, courses as well as prior successful completion of examinations and tests or prior work experience.

Automatic Limited Licences

Anyone who, at the time this legislation comes into force:

  • has acquired 2 years or less of demonstrable condo management experience; and,
  • who was employed as a condo manager or was providing such services in the 3 months immediately before the coming into force of this law

will automatically be deemed to have a limited licence. This deemed limited licence will continue to exist for a period of 150 days to give the manager sufficient time to apply for a limited licence (or a general licence if they meet the requirements). The Registrar may extend this 150-day period if not doing so would result in undue hardship to the applicant.

Expiration of the Licence

The limited licence will expire at the earliest of the following events:

  • the day of expiry specified on the licence (unless renewed);
  • the day on which the manager ceases to be employed by a licensed condo management provider (an exception exists for condo managers who are employed by less than 3 condo corporations);
  • the day on which the manager ceases to be employed by a condominium corporation;
  • the day the Registrar suspends or revokes the licence.

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.