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Statutory Record Keeping Mandates Condominium Corporation Documentation
Question: What records are Ontario condominium corporations required to keep?
Answer: Under the Condominium Act, 1998, S.O. 1998, Chapter 19, condominium corporations in Ontario must maintain comprehensive records including financial documents, meeting minutes, and correspondence. Additionally, lists of owners and mortgagees, and various legal documents like declarations and insurance policies are required. These records ensure transparency, aid in dispute resolution, and facilitate efficient management. Compliance with these record-keeping mandates is not just a legal obligation but supports effective governance. For guidance on managing these responsibilities, engaging professional legal services can be beneficial.
Which Records Should a Condominium Corporation Keep?
A Condominium Corporation Is Required to Keep Financial Records, Minutes of Meetings, Inspection Reports, Service Contracts, Among Other Documents.
Understanding the Mandates Regarding Record Keeping Imposed Upon Condominium Corporations Within Ontario
Condominium corporations are governed by the Condominium Act, 1998, S.O. 1998, Chapter 19, which prescribes various duties including mandates related to record keeping. Various responsibilities and obligations are set forth as statutory requirements for how records should be maintained by a condominium corporation. The statutory requirements are crucial for ensuring compliance and fostering transparency within the condominium community.
The Law
The Condominium Act, 1998, at section 55 prescribes the various record keeping duties required of a condominium corporation whereas it states:
Records
55 (1) The corporation shall keep adequate records, including the following records:
1. The financial records of the corporation.
2. A minute book containing the minutes of owners’ meetings and the minutes of board meetings.
3. A copy of the declaration, by-laws and rules.
3.1 The returns and notices that it has filed with the Registrar under Part II.1.
4. All lists, items, records and other documents mentioned in subsections 43 (4) and (5).
5. The report described in subsection 44 (8) that the corporation receives from the person who conducts a performance audit.
6. The records required under subsection 46.1 (3) and 83 (3).
7. A record of all reserve fund studies and all plans to increase the reserve fund under subsection 94 (8).
8. A copy of all agreements entered into by or on behalf of the corporation.
9. The report that the corporation receives from an inspector in accordance with subsection 130 (5).
10. All ballots or instruments appointing a proxy for a meeting of owners that are submitted at the meeting or delivered to the corporation before the meeting, including, for clarity, any record of votes cast through telephonic or electronic means before or at the meeting.
11. All other records, if any, that are prescribed.
12. Any additional records specified in the by-laws of the corporation.
Period of retention
(2) In addition to satisfying the requirements of any taxing authority in Ontario, the government of Canada or any other jurisdiction to which the corporation is subject, the corporation shall retain the records mentioned in subsection (1) for the following periods of time:
1. For all financial records of the corporation described in paragraph 1 of subsection (1), at least six years from the end of the last fiscal period to which they relate or such longer period that is prescribed.
2. For those records described in paragraphs 2 to 11 of subsection (1), the period of time that is prescribed.
3. For those records described in paragraph 12 of subsection (1), the period of time specified in the by-law.
4. For all other records, the period of time that is prescribed.
Method of retention
(2.1) Records may be kept in electronic or paper form in accordance with the prescribed requirements, if any.
Providing records to provider or manager
(2.2) If a corporation has entered into an agreement with a condominium management provider or a condominium manager to receive condominium management services, the corporation shall provide the provider or manager, as the case may be, with any of the corporation’s records that the provider or manager reasonably requires and shall do so at the time and in the manner that is prescribed and in accordance with the prescribed requirements.
Examination of records
(3) The corporation shall permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing, to examine or obtain copies of the records of the corporation in accordance with the regulations, except those records described in subsection (4).
Regulation power
(3.1) Without limiting the generality of subsection (3), a regulation described in that subsection may,
(a) specify processes that a person entitled to examine or obtain copies of records under that subsection must follow to do so;
(b) specify processes that the corporation must follow to respond to requests for records;
(c) specify fees that a corporation may charge for payment by a person who makes a request to the corporation to examine or obtain copies of records under that subsection, where the fees are for costs relating to the examination or copying of the requested records; and
(d) prescribe forms for requests for records or responses to those requests.
Exception
(4) The right to examine or obtain copies of records under subsection (3) does not apply to,
(a) records relating to employees of the corporation, except for contracts of employment between any of the employees and the corporation;
(b) records relating to actual or contemplated litigation, as determined by the regulations, or insurance investigations involving the corporation;
(c) subject to subsection (5), records relating to specific units or owners; or
(d) any prescribed records.
Same
(a) an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing from examining or obtaining copies of records under subsection (3) if the records relate to the unit of the owner, the unit being purchased or the unit that is subject to the mortgage, as the case may be;
(b) an owner of a unit or an agent of the owner duly authorized in writing from examining or obtaining copies of records under subsection (3) if the records relate to the owner; or
(c) an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing from examining or obtaining copies of the record that section 46.1 requires the corporation to maintain.
Waiver
(6) Despite subsections (3) and (4), a corporation may disclose a record described in clause (4) (b) but shall not disclose,
(a) a record described in clause (4) (a);
(b) subject to subsection (5), a record described in clause (4) (c); or
(c) subject to the regulations, a record described in clause (4) (d).
Admissible evidence
(7) A copy that a corporation has certified under its seal to be a true copy of a record is admissible in evidence and, in the absence of evidence to the contrary, is proof of the facts stated in it.
Penalty for non-compliance
(8) A corporation that without reasonable excuse does not permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing to examine or to obtain copies of records under this section shall pay a sum determined in accordance with the regulations to the owner, purchaser or mortgagee on receiving a written request for payment from that person.
Recovery of sum
(9) The owner, purchaser or mortgagee may recover the sum from the corporation by an action in the Small Claims Court.
Order for production of records
(10) If a corporation without reasonable excuse does not permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing to examine or to obtain copies of records under this section, the Small Claims Court may order the corporation to produce the records for examination.
Non-application
(11) Subsections (8) to (10) do not apply to any matter in dispute for which a person may apply for resolution under section 1.36 to the Condominium Authority Tribunal established under Part I.2.
As shown above, per section 55(1) of the Condominium Act, 1998, condominium corporations are mandated to keep adequate records including:
- Financial Records: Detailed accounts of all money received and spent.
- Meeting Minutes: Minutes of the board and general meetings, capturing decisions and discussions.
- Correspondence: Copies of all correspondence received and sent.
- List of Owners and Mortgagees: A current list including addresses for service.
- Other Legal Documents: Including declaration, by-laws, rules, agreements, and insurance policies.
The Condominium Act, 1998 also stipulates the duration for which these records must be retained, ensuring they are available for examination by the owners under certain conditions.
Importance of Compliance
Adhering to the record-keeping requirements of the Condominium Act, 1998, is more than a legal obligation. Compliance with the requirements serves several critical functions:
- Ensuring Transparency: Keeping comprehensive records supports transparency within the condominium community, fostering trust among the board, owners, and residents.
- Aiding in Dispute Resolution: Well-maintained records can be invaluable in resolving disputes or addressing concerns raised by owners or board members.
- Facilitating Efficient Management: Accurate and well-organized records are essential for the smooth operation and management of the condominium corporation.
Conclusion
Condominium corporations in Ontario must take record-keeping obligations seriously to ensure compliance with the Condominium Act, 1998. Maintaining accurate and detailed records fulfills a legal requirement and supports effective governance and management of the condominium corporation. For condominium boards that find the record keeping process overwhelming, engaging with a professional property management company or legal professional focusing upon condominium law can provide necessary guidance and support.
