Executing Duties in an Honest, Legal, and Transparent Manner
The Real Estate Act Rules requires that condominium managers act honestly and in good faith in their dealings with clients, ensuring that all services are provided ethically and with transparency.
WHAT YOU'LL LEARN
Executing Duties in an Honest, Legal, and Transparent Manner
Comparing Responsibilities for Common Property Management
Creating a Compliance Checklist for Condominium Management
Executing Duties in an Honest, Legal, and Transparent Manner
Relevant Legislation: Real Estate Act Rules
Ethical Conduct: The Real Estate Act Rules requires that condominium managers act honestly and in good faith in their dealings with clients, ensuring that all services are provided ethically and with transparency.
Disclosure Requirements: Disclosure of all material facts, conflicts of interest, and any information that might affect the decisions of condominium boards.
Fair Treatment: Managers are required to exercise reasonable care and skill in providing services to protect the interests of the corporation and its owners.
Ethical Scenario Review
Scenario: A condominium manager awards a landscaping contract to a company owned by their spouse without disclosing the relationship to the board.
Task: Identify the ethical violations in this scenario and recommend corrective actions (e.g., disclosure of conflicts and recusal from decision-making).
Key Takeaway
Transparency and good faith are foundational to ethical management. Managers must disclose conflicts of interest, act with fairness, and ensure decisions are made in the best interest of the condominium corporation.
Comparing Responsibilities for Common Property Management
Relevant Legislation: Condominium Property Act
Definition of Common Property: The Condominium Property Act defines common property as portions of the property that are not designated as units, such as hallways, lobbies, or green spaces, and are owned collectively by all unit owners.
Management Duties: The condominium corporation is responsible for the management, control, and administration of common property.
Bare Land Condominiums: In bare land condominiums, responsibilities may extend to roads, utility services, or even landscaping of individual lots, depending on the bylaws.
Comparative Analysis
Scenario: A condominium manager oversees two types of condominium corporations—one is a traditional high-rise condominium, and the other is a bare land condominium with private driveways.
Task: Analyze the differences in management responsibilities between these two condominium types, focusing on maintenance, repairs, and shared costs.
Key Takeaway
Management responsibilities for common property vary by condominium type and must align with the condominium plan and bylaws. Managers need to ensure clarity in the division of responsibilities to avoid disputes and ensure proper upkeep of shared spaces.
Creating a Compliance Checklist for Condominium Management
Relevant Legislation
Financial Reporting: The Condominium Property Regulation requires that condominium corporations prepare and distribute financial statements annually, ensuring transparency in the use of funds.
Bylaw Enforcement: The Condominium Property Act allows corporations to create and enforce bylaws to govern the use of common property and prevent nuisances.
Dispute Management: The Condominium Property Act provides mechanisms for resolving disputes, including mediation or arbitration.
Checklist Development
Draft a compliance checklist for managing a condominium corporation, which includes:
Financial Reporting:
Ensure annual financial statements are prepared and distributed to owners.
Maintain a reserve fund study and update it as required by the Condominium Property Regulation.
Bylaw Enforcement:
Review and enforce bylaws consistently.
Ensure penalties for violations are approved by the board and communicated to owners.
Dispute Management:
Establish procedures for handling complaints.
Document all disputes and resolutions to maintain transparency.
Activity
Scenario: A condominium board receives complaints from several owners about a unit owner storing hazardous materials in their exclusive-use parking stall.
Task: Use your checklist to outline the steps the condominium manager should take to address the issue, from bylaw enforcement to dispute resolution.
Key Takeaway
Developing and implementing a compliance checklist ensures that condominium managers uphold professional standards, meet legal requirements, and maintain the trust of condominium corporations and owners.
