Defining the Scope of Practice for Condominium Managers
Condominium managers act as agents for the condominium corporation and must operate within their legal and contractual authority. Their responsibilities typically include:
Financial management (budgeting, fee collection, expense tracking).
Operational management (contractor coordination, property maintenance).
Governance support (meeting organization, document management).
Advisory role (providing recommendations, ensuring compliance).
The Real Estate Act Rules specify that condominium managers must demonstrate competency and practice in compliance with all applicable laws.
However, managers are not decision-makers; the condominium board retains ultimate authority over financial, legal, and governance decisions and oversight.
Understanding the Limits of Authority
While condominium managers handle day-to-day operations, certain actions require board approval or professional expertise.
Financial Management Limits
✔ Within Scope: Collecting fees, preparing financial reports, managing budgets within approved limits.
✘ Requires Board Approval: Setting fees, investing reserve funds, approving major expenditures.
✘ Requires External Expertise: Conducting audits, handling tax filings, making investment decisions.
Maintenance and Operations Limits
✔ Within Scope: Coordinating routine maintenance, hiring contractors within board-approved budgets.
✘ Requires Board Approval: Entering into long-term contracts, approving major repairs or replacements.
✘ Requires External Expertise: Engineering assessments, structural repairs, legal disputes over property damage.
Legal and Governance Limits
✔ Within Scope: Providing procedural guidance, ensuring bylaw compliance, drafting meeting notices.
✘ Requires Board Approval: Amending bylaws, levying fines for bylaw violations.
✘ Requires External Expertise: Legal interpretations, litigation, complex contract disputes.
Assessing Whether a Situation Falls Within a Condominium Manager’s Role
Managers should evaluate each situation to determine if they have the authority to act or need to escalate the issue.
Assessment Checklist
Is the action covered under the condominium manager’s service agreement?
Does the CPA or Real Estate Act permit the manager to handle this task independently?
Would handling this issue exceed the manager’s financial or legal authority?
Should the matter be referred to the board or an external specialist?
If the answer to any of these questions is unclear, the manager should consult their broker or refer the issue to the board.
Best Practices for Compliance with Scope of Practice Limitations
Follow Board Directives: Always document board approvals for major decisions.
Consult the Brokerage: If unsure about compliance, seek guidance from the brokerage.
Engage External Experts When Needed: Recognize when legal, financial, or technical issues require specialist advice.
Maintain Transparent Communication: Keep detailed records and ensure the board is informed about all major actions.
Stay Updated on Legislative Changes: The CPA and Real Estate Act are periodically updated—managers should stay informed.
Developing a Professional Scope of Practice Checklist
To help managers stay within their legal and professional boundaries, a structured checklist can ensure compliance and prevent unauthorized actions.
Scope of Practice Compliance Checklist
Have I reviewed the CPA and Real Estate Act Rules regarding this issue?
Does my service agreement authorize me to take action?
Does this action require board approval?
Am I qualified to handle this matter, or should an expert be consulted?
Have I documented my decision-making process?
