One of the constant debates for condominium corporations is how to navigate Condominium Authority Tribunal (“CAT”) matters. When it comes to records disputes in particular, many Boards encourage property managers to represent them at the CAT. Up until this point, the regulatory body for property managers, the Condominium Management Regulatory Authority of Ontario (the “CMRAO”), has not discouraged managers from participating at the CAT.
This status quo is now changing. As the jurisdiction of the CAT expands and the issues before the Tribunal become more legalistic, the CMRAO now advises that managers should not represent condominiums at the Tribunal:
The CMRAO’s position is that managers may support their client condominium corporations in relation to CAT matters, but they must not act as representatives before the CAT.
The statement notes that representing a condominium at the CAT generally constitutes the provision of legal services, which property managers cannot do.
The CMRAO continued:
Accordingly, managers must not appear before the CAT on behalf of a condominium corporation to make submissions, advance legal arguments, interpret legal rights or obligations for the purpose of a proceeding, negotiate legal positions, or otherwise act as the corporation’s representative. Managers must also not provide legal advice to boards, owners, or other parties in connection with CAT matters.
Notice how the CMRAO did not issue this statement as a suggestion: managers must not appear before the CAT on behalf of a condominium. This language does not leave any wiggle room for managers to stretch.
This does not mean that managers have no role to play in CAT matters. The CMRAO explained that mangers may continue to support condominiums in the administrative tasks surrounding CAT cases, such as assisting with record keeping and document management, providing factual information or witness evidence about matters within their personal knowledge, and helping their client corporations to understand the procedural steps involved in the CAT process.
When it comes to actual representation, however, the CMRAO maintains that condominium corporations should retain a licensed lawyer or paralegal as appropriate to ensure professional boundaries are protected and all managers act within the licensed scope.
The CMRAO’s change in guidance likely comes from the CAT’s expanding jurisdiction. Starting on July 1, 2027, disputes relating to owner’s meetings will now appear before the CAT. Managers already play a pivotal role in organizing and running AGMs and other meetings. Managers would be key witnesses for any dispute, and no one can be both advocate and witness for the same proceeding. This new reality likely spurred the CMRAO into action.
This new guidance makes practical sense. Management contracts and manager’s insurance policies do not cover legal advice or tribunal representation, meaning it was always a risk to appear before the CAT. Managers are trained in many skills, but not in legal argumentation, and adding CAT disputes to their plate spreads an already overworked sector thin.
Ultimately, the CMRAO wants managers do what they do best, manage corporations, leaving dispute resolution to legal professionals.
To see the full statement from the CMRAO click here.
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