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Did you know that condo management companies cannot provide services in Ontario without the proper license from the Condominium Management Regulatory Authority of Ontario (CMRAO)?
Here we review the provider requirements to help you choose a legitimate condo management company.
The easiest way to confirm your condo management company is operating legally is to ask for their license issued by the CMRAO:
This license is required for individual property managers and is provided to those who:
- Have a minimum of 2,920 hours of experience offering condo management services
- Have the educational requirements to qualify for a General Licence
These licensees are able to supervise a limited licensee and/or act as the principal condominium manager for a licensed condominium management provider.
As above, this is for individuals, but in this case the licence applies to those applying for their mandatory licensing. These individuals meet the minimum hour requirements, but do not have the education for a General Licence. These licensees can provide the same services as a General Licence holder while waiting to qualify for their own General Licence.
Limited Licensees require the supervision of either a General Licensee or a Transitional General Licensee to perform condo management tasks and services. In other words, they cannot practice on their own and must be employed by a licensed condominium management provider.
This is for any business providing condominium management services. In order to obtain this license, the company must employ a principal condominium manager with either a General or Transitional General Licence and hold the proper insurance.
Insurance for Licenced Condo Management Providers
Condo management providers must also have the following insurance:
- Errors and Omissions insurance: This provides coverage for all employees and condo managers of the provider.
- Fidelity insurance: This provides coverage against losses your condo suffers due to improper, or illegal conduct by the condo provider, their managers, their employees, or directors of the licensed provider.
In accordance with the Condo Act, providers cannot sign a contract without presenting the proper certificates of insurance including the type of coverage, policy number and start/expiry date of the insurance policy.
How to Protect Your Condo Corporation
Even if you check licenses and insurance certificates, you could still experience issues with the condo management provider. The Condo Act includes provisions to help condo corporations protect themselves against provider service issues under Section 56 (1). This allows you to create by-laws governing how the property is managed. You can also detail your right to remove property managers or their employees who fail to meet those standards.
Your Legal Obligations
Keep in mind that even if you hire a property management company, Condo Act compliancy remains your responsibility. According to Section 17 (3), you have a duty to address compliance issues.
Property management companies help manage your condo in accordance with the Condo Act. Asking for credentials will ensure you hire a condo management company that is legit.
At CPO Management Inc., we are fully licensed and insured to provide the management strategies and day-to-day tasks needed to maintain the physical and financial health of your property. Reach out to us today to learn more about our condo management services.