Best Practices for Reducing Risk
As per the Real Estate Act Rules, licensees must maintain accurate and complete records.
WHAT YOU'LL LEARN
Best Practices for Reducing Risk
Drafting a Notice to Condominium Owners
Communication Strategies to Reduce Risk
Best Practices for Reducing Risk
Accurate Recordkeeping
As per the Real Estate Act Rules, licensees must maintain accurate and complete records. Best practices for recordkeeping include:
Documenting Transactions: Ensure all financial transactions related to the condominium corporation are recorded and retained for future reference.
Compliance with the Condominium Property Regulation: Ensure financial statements, receipts, and meeting minutes are stored in compliance with legal requirements.
Clear Communication
Clear communication reduces misunderstandings and disputes. Best practices include:
Providing detailed and accurate information to stakeholders.
Following the guidelines in the Real Estate Act Rules, which requires licensees to “communicate clearly and promptly.”
Adherence to Legal Obligations
Ensure all actions align with relevant legislation, such as the Condominium Property Regulation, which outlines the requirements for notices to owners.
Follow brokerage policies to manage complaints, financial reporting, and interactions with stakeholders.
Activity:
List three real-world scenarios where a failure in recordkeeping or communication led to increased risk. How could adherence to best practices have prevented these issues?
Drafting a Notice to Condominium Owners
Requirements under the Condominium Property Regulation
Notices to owners must include sufficient detail to inform the recipients about the purpose and content of the notice.
Example: A notice for a special assessment must outline the total cost, individual unit contributions, and payment deadlines.
Clear communication ensures transparency and reduces the likelihood of disputes.
Example of a Well-Written Notice:
Subject: Notice of Special Assessment
Body:
“Dear Unit Owners,The Condominium Board has approved a special assessment of $100,000 to fund necessary repairs to the building envelope. Your individual unit’s share is $5,000, payable in two installments of $2,500 on April 1 and July 1, 2025. This decision was made to ensure the building remains in compliance with safety regulations as outlined in the Condominium Property Regulation. Please contact us if you have any questions or require further clarification.
Thank you,
[Condominium Manager Name]”
Activity:
Draft a notice informing owners about an upcoming AGM. Ensure your draft complies with the Condominium Property Regulation, including details about the time, location, and agenda of the meeting.
Communication Strategies to Reduce Risk
Challenges with Difficult Stakeholders
When dealing with difficult stakeholders, communication challenges can arise. Common challenges include:
Miscommunication due to unclear language.
Delayed responses to inquiries.
Escalation of disputes due to insufficient information.
The Real Estate Act Rules
Licensees must:
Communicate clearly and accurately: Avoid ambiguity to prevent misunderstandings.
Respond promptly: Timely communication reduces frustration among stakeholders.
Maintain professionalism: Ensure all communication remains respectful and professional, even during disputes.
Case Study Analysis:
Scenario:
An owner submits a complaint regarding delayed maintenance in the common areas. The condominium manager’s response is vague, leading to further frustration and escalated disputes.
Analysis:
Issue: The manager failed to communicate the specific timeline and reasons for the delay.
Improvement: The manager should have provided a detailed response, including the expected resolution timeline and any factors contributing to the delay.
Activity:
Analyze the following scenario: A stakeholder disagrees with a board decision regarding a special assessment. Draft a response that demonstrates how clear and respectful communication can de-escalate the situation while ensuring compliance with legislative requirements.
