Brampton has a great many condominiums, from stacked townhouses near Mount Pleasant to towers along Queen Street and Hurontario. Living in one means sharing walls, parking garages and budgets with neighbours, and being governed by a board of volunteers elected from among them. When something goes wrong, the question that comes first is often “who decides this?”
That question has a more complicated answer than many owners expect. Depending on the issue, a dispute may belong at an online tribunal, in private mediation and arbitration, or before a judge at the Superior Court. A case brought in the wrong place can be dismissed or stalled, and legal bills in these fights can quickly outgrow the original complaint.
This is general information only and not legal advice. Your declaration, by-laws and rules matter as much as the statute, and a lawyer would need to see them to advise you.
Start With the Governing Documents
Every condominium corporation in Ontario is governed by a hierarchy: the Condominium Act, 1998, the declaration, the by-laws and the rules. Under section 119, the corporation, directors, owners and occupiers must all comply with them. Rules must be reasonable and consistent with the Act, the declaration and the by-laws. A rule is the weakest level of this hierarchy, while the declaration is typically the hardest to change.
Before writing an angry email, read what these documents actually say. Who is responsible for the balcony door? Is a dog of that size permitted? Can the corporation charge a cost back to you? Declarations also often change the default repair and maintenance duties under the Act, which is why a neighbour’s situation in another building may not be helpful to you.
Then take the ordinary first step: put your concern in writing, stay factual and give a reasonable deadline. Many disputes end here, and if they do not, your paper trail will be useful.
The Condominium Authority Tribunal
The Condominium Authority Tribunal, or CAT, is an online tribunal that deals with a specific list of disputes set by regulation. Its process is designed for people without lawyers, and moves through three stages: negotiation, mediation and adjudication. Fees are modest compared to a court case.
The CAT can currently hear disputes about:
- Records, including an owner’s right to examine or get copies of the corporation’s records, and related fees and refusals.
- Pets and animals, vehicles, and parking and storage, where provisions in the declaration, by-laws or rules deal with them.
- Nuisance, including unreasonable noise that is a nuisance, annoyance or disruption, and other prescribed nuisances such as odour, smoke, vapour, light and vibration. Provisions in governing documents dealing with any other nuisance, annoyance or disruption may also be covered.
- Indemnification and compensation provisions, but only as they relate to one of those disputes. In other words, a chargeback connected with a noise complaint might fit, while one connected with a leak repair might not.
Several things are off limits. The Act excludes, among other matters, disputes over liens under sections 85 and 86, over conditions or activities likely to damage property or cause injury or illness under section 117(1), and disputes about title to land. Board elections, budgets, and repair and maintenance decisions generally fall outside it as well. A dispute mixing a nuisance issue with a safety concern under section 117(1) can also fall outside, so these details need attention before you file.
The CAT may order a party to comply, stop or take an action. It can also award compensation for damages from non-compliance up to the greater of $25,000 or a prescribed amount, and costs in line with its rules. Regulations already made will raise that compensation limit to $50,000 and extend the tribunal to certain disputes about the process for requisitioning or calling owners’ meetings, effective July 1, 2027. Until then, meeting disputes remain outside its jurisdiction. An order of the Tribunal is enforceable in court.
Its decisions are published online in a searchable database, which works in two ways: you can read how similar cases went, and your dispute may become public.
Mediation and Arbitration Under Section 132
Some disagreements must go through private mediation and then arbitration before anyone can go to court. Section 132 deems this process to be part of certain agreements, including those between a corporation and its owners about the declaration, by-laws or rules. It can also apply to agreements with a declarant, and between corporations.
A typical example might be an owner who disputes whether an alteration complied with the declaration, in a case that the CAT cannot hear. The parties choose a mediator. If mediation fails, arbitration follows under the Arbitration Act, 1991.
This matters because section 134 says that where these processes are required, you generally cannot apply to the court for a compliance order until you have tried and failed to get compliance through them. Going to court too early could mean a dismissed application and a costs order. Private arbitration can also get expensive, since the parties pay the arbitrator, and an arbitrator can address costs.
The Superior Court
For a Brampton condominium, a court application would normally be heard in the Superior Court of Justice in Brampton. The court has several specific roles under the Act.
Compliance orders (section 134). An owner, occupier of a proposed unit, corporation, declarant, lessor or mortgagee can apply to enforce the Act, declaration, by-laws and rules, subject to the pre-conditions above. This is often used for urgent or serious issues, such as dangerous conduct, an unauthorized renovation or, in extreme cases, an order that a person leave the property. The corporation may also seek its costs of obtaining the order as an amount added to the owner’s common expenses.
Oppression (section 135). An owner, corporation, declarant or mortgagee can apply where conduct is, or threatens to be, oppressive or unfairly prejudicial to the applicant or unfairly disregards their interests. The judge may make any order the judge deems proper, including prohibiting the conduct or requiring compensation. This remedy is about more than unhappy outcomes: boards have a duty to make decisions and an owner’s disagreement alone is not oppression. Courts will often give some deference to a board’s reasonable business judgment.
Claims against a developer (section 133). A corporation or owner can seek damages from a declarant for loss caused by relying on a false, deceptive or misleading statement, or on an omission, in required information. Tarion warranty rights on new units may also be relevant, and they follow separate deadlines.
Liens, Arrears and Chargebacks
Common expenses are where owners can get into the most trouble the fastest. If an owner defaults, section 85 gives the corporation a lien against the unit for the unpaid amount, along with interest and reasonable legal costs and expenses of collection. The corporation has to register a certificate of lien within three months after the default, and must give the owner written notice at least 10 days before doing so.
The lien has priority over almost all other encumbrances, including most mortgages, and that is why lenders pay attention, and why a lender may pay the arrears and add them to the mortgage. If the arrears are not resolved, the corporation can enforce the lien as a mortgagee would, up to and including a sale of the unit.
So if you disagree with a special assessment or a chargeback, do not simply stop paying your regular common expenses. Paying under protest, and clearly saying so in writing, while you dispute the amount may protect you from a lien spiralling with legal costs. Whether a particular chargeback is truly collectible as a common expense depends on the governing documents and the Act, and on how the amount came about. Get advice early if you receive a lien notice, because the costs tend to grow every month that passes.
Records Requests
Records are frequently the first step in a larger dispute, and they are also an area where the CAT is active. Owners, purchasers and mortgagees have a right to examine or get copies of records, subject to some exceptions, such as records relating to specific units or owners or to actual or pending litigation. The regulation requires a request to be made in the prescribed form. The corporation then has to respond within a set period and may charge a reasonable fee in some cases.
Use the right form and keep proof of delivery. If a board refuses without a reasonable excuse, the CAT can order a penalty. Clear requests for specific records usually do better than demands for “everything” over many years.
Boards, Meetings and Requisitions
Owners who object to the way a corporation is being run have governance options that may work better than a lawsuit. Owners holding at least 15 per cent of the units who are entitled to vote and listed in the corporation’s records can requisition a meeting, including to remove directors. Directors have statutory duties of honesty, good faith and care. Running for the board, or attending owners’ meetings and asking questions, may also get better results than a claim.
Picking the Right Route: A Quick Comparison
Here are a few hypothetical examples to show how the sorting can work:
- A neighbour’s late-night music, after complaints to management: likely CAT.
- A board ignoring a records request: likely CAT.
- A mould problem that may be making a resident sick: likely not CAT, and court may be needed if urgent, because of section 117(1).
- A dispute over who must pay to replace windows: often mediation and arbitration, depending on the declaration.
- A lien for unpaid fees: not CAT, and advice should be sought quickly.
- A board that singles out one owner over time: possibly oppression in the Superior Court.
Limitation periods also apply. The basic rule in Ontario is two years from when a claim was discovered, and tribunals and arbitrations may have their own considerations, so do not assume that time stops while you negotiate.
If you are a Brampton owner or director caught in one of these disputes, the firm’s real estate and mortgage litigation page describes related property work, and Sawan Law House LLP can be reached through the contact page. Bring your declaration, by-laws, rules, relevant correspondence and any status certificate or lien notice. Often the first useful step is to confirm where the dispute belongs, and that should take place before anyone files anything.