Condo legal structure
The condo corporation is governed by the following structure:
The Condominium
Act
The Act is the legislation that governs condominiums in Ontario. It
states when a condo corporation comes into being, how it can be
terminated and everything in between.
Nothing in the declaration, by-laws or rules can over-rule the Act.
The declaration
The declaration is written by the developer's lawyers and describes the
condominiums assets, how many units the corporation will have, what
purpose the units can be used for, the description of the common
elements and amenities and the listing by percentages each unit will be
paying in common element fees.
If pets, or certain types of pets, are to be banned from the condo, it
must say so in the declaration. However some boards are using rules to
ban dogs from condos by claiming they are a safety concern.
The declaration must regulate the uses of the residential units
and whether they are to be used for single-family use only and if
short-term rentals (hotel rooms) are allowed.
The provisions of the declaration yield to the provisions of the
Act and the Human Rights Code.
Changes to the declaration are difficult to obtain as they require 80%
or 90% (depending on the change) of all owners to agree to the changes
in writing.
By-laws
The original by-laws are written by the developer and can be changed.
All changes or additions to the by-laws must be initiated by a
resolution passed by the board of directors.
The by-laws cannot contradict the declaration and can be amended,
rescinded or added to by a vote in favour by the owners of 50% plus one
of all units at
a meeting of owners.
All by-laws must be reasonable and can be challenged in the courts. For
example, a by-law cannot ban all pets. (However, don't challenge a
by-law
without the assistance of a lawyer who is experienced in condominium
law.)
Rules
Rules are rescinded, amended and created by a resolution of the board
of directors. The board announces the new rule and the owners have a
period of time to requisition a meeting to vote on these changes. If
there is no requisition, the new or amended rule comes into effect.
Policies
Policies are not mentioned in the Act. In general they deal with codes
of
conduct, human rights, labour relations, health and safety issues. The
board creates policies by a majority vote. The owners have no say.
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