Determining If a Board Instruction Is Lawful
A condominium manager is responsible for ensuring that all board instructions align with legal and regulatory requirements. When receiving an instruction from the board, consider the following:
Does the Instruction Align with Legislation?
The CPA and Condominium Property Regulation outline the powers and responsibilities of condominium corporations.
Condominium corporations are obligated to follow all relevant legislation, such as:
Limitations Act
Occupiers' Liability Act
Personal Information Protection Act (PIPA) and Personal Information Protection and Electronic Documents Act (PIPEDA)
Occupational Health and Safety Act (OHS)
Safety Codes Act
Bylaws define the rules specific to the condominium corporation and must not contradict provincial law.
If an instruction conflicts with these documents, it may be unlawful.
Was the Instruction Made Through Proper Governance Channels?
Board decisions must be made at a properly called meeting with quorum met, or through other methods allowed in the corporation's bylaws.
The instruction should be documented in meeting minutes or provided as a written board resolution.
Individual board members do not have authority to make unilateral decisions outside of board meetings.
Does the Instruction Respect the Condominium Manager’s Professional Obligations?
Under the Real Estate Act Rules, condominium managers must act honestly, with reasonable care and skill.
If an instruction requires the manager to violate ethical or legal obligations, they must refuse to act on it.
According to the Real Estate Act Rules, " condominium manager must not engage in conduct that is reckless or intentional and that misleads or deceives any person.
Options for Addressing Unlawful Instructions
If a condominium board issues an instruction that is unlawful, the condominium manager has several options:
Seek Clarification
Request written confirmation of the instruction.
Ask for the legal basis of the decision and reference the relevant CPA section or bylaw.
Advise the Board of Compliance Issues
Inform the board of how the instruction conflicts with legislation or regulations.
Reference specific CPA provisions and board obligations to support your position.
Refuse to Act on Unlawful Instructions
A condominium manager should not comply with instructions that violate laws, even if pressured by the board.
Document all communications to protect yourself from liability.
Report your concerns to your broker and ask for their guidance and leadership.
Escalate the Concern
If the board refuses to comply with legal requirements:
Consult legal counsel for guidance.
Report the issue to the Real Estate Council of Alberta (RECA) if necessary.
Case Study: Denying Access to Corporation Records
Scenario:
A board instructs a condominium manager to deny an owner access to corporation records, stating that they do not want the owner reviewing financial documents.
Steps the Manager Should Take:
Confirm the Owner’s Right to Access
The CPA requires corporations to provide access to certain records.
The manager should verify which documents the owner is legally entitled to review.
Advise the Board of Legal Requirements
The manager should inform the board that refusing access may violate the CPA and expose the corporation to legal action.
Refuse the Instruction if It Contradicts the Law
If the board still insists, the manager must document the instruction and refuse to act on it to protect themselves from liability.
The manager should seek assistance from their broker.
