Yes No Share to Facebook
Request for Records: Condominium Corporation Documents
Question: What rights do unit owners have to request records from a condominium corporation?
Answer: Unit owners and prescribed persons are entitled to access specific records of a condominium corporation as outlined in the Condominium Act, 1998, S.O. 1998, c. 19. This right ensures transparency and accountability in the governance of the condominium, allowing for the examination of documents like financial records and board meeting minutes. Denali Paralegal Services can assist you in navigating this process, ensuring that your rights are upheld while maintaining compliance with the necessary regulations.
What Is the Law About Requesting Records From a Condominium Corporation?
Prescribed Persons, Such As Unit Owners, Mortgagees, Among Others, May Require the Production of Certain Records From a Condominium Corporation.
Understanding the Record Request Rights of Prescribed Persons As Mandated Per the Condominium Act, 1998
In Ontario, condominium living is governed by specific statutes and regulations, providing a framework for the rights and obligations of all parties involved. One area that often raises questions among condominium residents, among others, is the legal right to access various records from the condominium corporation. The right to request records is essential for maintaining transparency between the condominium corporation and the unit owners as members and so to ensure that the operations and decisions of the condominium corporation are open for inspection by those affected - the condominium unit owners and residents.
The Law
The right to request records from the condominium corporation is found within the Condominium Act, 1998, S.O. 1998, Chapter 19, wherein it is stated:
Examination of records
55 (3) The corporation shall permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing, to examine or obtain copies of the records of the corporation in accordance with the regulations, except those records described in subsection (4).
Regulation power
(3.1) Without limiting the generality of subsection (3), a regulation described in that subsection may,
(a) specify processes that a person entitled to examine or obtain copies of records under that subsection must follow to do so;
(b) specify processes that the corporation must follow to respond to requests for records;
(c) specify fees that a corporation may charge for payment by a person who makes a request to the corporation to examine or obtain copies of records under that subsection, where the fees are for costs relating to the examination or copying of the requested records; and
(d) prescribe forms for requests for records or responses to those requests.
Exception
(4) The right to examine or obtain copies of records under subsection (3) does not apply to,
(a) records relating to employees of the corporation, except for contracts of employment between any of the employees and the corporation;
(b) records relating to actual or contemplated litigation, as determined by the regulations, or insurance investigations involving the corporation;
(c) subject to subsection (5), records relating to specific units or owners; or
(d) any prescribed records.
Same
(a) an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing from examining or obtaining copies of records under subsection (3) if the records relate to the unit of the owner, the unit being purchased or the unit that is subject to the mortgage, as the case may be;
(b) an owner of a unit or an agent of the owner duly authorized in writing from examining or obtaining copies of records under subsection (3) if the records relate to the owner; or
(c) an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing from examining or obtaining copies of the record that section 46.1 requires the corporation to maintain.
Waiver
(6) Despite subsections (3) and (4), a corporation may disclose a record described in clause (4) (b) but shall not disclose,
(a) a record described in clause (4) (a);
(b) subject to subsection (5), a record described in clause (4) (c); or
(c) subject to the regulations, a record described in clause (4) (d).
Records That Can Be Requested
As above, there are limits to the records held by a condominium corporation that are accessible for inspection or copying. The Condominium Act, 1998 and the regulation outline specific types of records that are considered open for such requests. These typically include financial records, board meeting minutes, and other documents that relate to the management and administration of the condominium corporation. The provision aims to strike a balance between ensuring transparency and protecting sensitive information that may not be appropriate for wider distribution.
Who Are "Prescribed Persons"?
A "prescribed person" generally refers to an individual or entity that holds a specific right, interest, or entitlement under the provision of a statute or regulation. In the context of the Condominium Act, 1998, prescribed persons predominantly include unit owners, purchasers of units, mortgagees of units, and in some cases, board members, and thus prescribed persons are essentially all those who hold a direct stake in the governance and operations of the condominium.
How to Request Records
- By Formal Request:
Prescribed persons must submit a formal request to the condominium corporation, specifying the records they wish to inspect or copy. The request process is often detailed in the by-laws or rules of the condominium corporation. - By Paying Allowable Fees:
While the Condominium Act, 1998, provides the right to access records, it may also permit the condominium corporation to charge a reasonable fee for the labour and materials involved in providing access to the requested records. - By Allowing a Reasonable Timeframe:
The condominium corporation is required to provide access to, or copies of, the requested records within a reasonable period, as stipulated in section 13.3 of O. Reg. 48/01.
Navigating Challenges
Despite the clear provisions in the Condominium Act, 1998, and O. Reg. 48/01, disputes and misunderstandings can arise. Issues may include disputes over what constitutes a "reasonable" request, disagreements over fees charged, or delays in providing access to the requested records. In such scenarios, recourse can include mediation, arbitration, or, in some cases, litigation to resolve the dispute in accordance with the Condominium Act, 1998 dispute resolution mechanisms.
Failure to Comply
A condominium corporation that wrongfully fails to respond to a request for records may be penalized for doing so whereas the Condominium Act, 1998, specifically states:
Penalty for non-compliance
55 (8) A corporation that without reasonable excuse does not permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing to examine or to obtain copies of records under this section shall pay a sum determined in accordance with the regulations to the owner, purchaser or mortgagee on receiving a written request for payment from that person.
Recovery of sum
(9) The owner, purchaser or mortgagee may recover the sum from the corporation by an action in the Small Claims Court.
Order for production of records
(10) If a corporation without reasonable excuse does not permit an owner, a purchaser or a mortgagee of a unit or an agent of one of them duly authorized in writing to examine or to obtain copies of records under this section, the Small Claims Court may order the corporation to produce the records for examination.
Interestingly, it is the Small Claims Court that may enforce the financial penalty, if any, as well it is the Small Claims Court that may issue an Order for the production of records.
Conclusion
The right to request records from a condominium corporation is a vital aspect of condominium governance, aiming to ensure transparency, accountability, and informed participation by unit owners and other prescribed persons. By following the provisions set out in section 55(3) of the Condominium Act, 1998, and section 13.3 of O. Reg. 48/01, prescribed persons can exercise their rights effectively while also respecting the confidentiality and operational needs of their condominium corporation. When in doubt, consulting with a legal professional knowledgeable in condominium law can provide clarity and guidance in navigating these rights and obligations.