When the Condominium Management Regulatory Authority of Ontario (CMRAO) started operations in November 2017, there was much excitement about how the new regulatory body might impact the condominium management industry in Ontario.
As we started accepting licence applications, our team was busy in the background building our processes to support other organization functions. In February 2018, Ontario Regulation 4 /18 came into effect, and the CMRAO opened its online complaints portal. Since then, the CMRAO has fielded thousands of complaints from all corners of the province.
It is only natural that condo managers might feel nervous about being the subject of a complaint. Your licence represents your livelihood and a significant investment of time and energy. Getting a General Licence involves many hours of coursework and extensive on-the-job training. The notion that a condo manager could lose their licence based on a single complaint would be unsettling. Fortunately, this does not reflect how the CMRAO’s complaints process works. Consumers have the right to expect that public regulatory bodies will protect them, and the core to delivering on this mandate is a fair process.
So, how does the CMRAO approach complaints? What kinds of complaints have the CMRAO received, and what types of complaints have led to serious regulatory actions?
CMRAO’s Approach to Handling Complaints
Our complaints-handling process has evolved over time, but the principles underlying it have remained constant. The parties to a complaint (the complainant and the licensees against whom they are complaining) can expect the following:
- Fairness: When a person files a complaint with the CMRAO, they are expected to act in good faith throughout the process. Complainants understand that any information they provide to the CMRAO can be shared with the licensee and acknowledge that the CMRAO will tell the licensee who filed the complaint. If the CMRAO moves forward with a complaint, then the licensee will be asked to respond to allegations within a reasonable timeframe. Licensees are expected to answer honestly and fulsomely.
- Privacy/Discretion: In most cases, complaints are handled between the complainant, the CMRAO, and the licensee. When assessing complaints, we may need to involve other people, such as the Principal Condominium Manager (PCM) of the provider business, condo board members, or other people with knowledge of the situation. Still, the CMRAO will engage other people only when it is necessary for the purposes of handling the complaint. The CMRAO does not publish details about a complaint unless the complaint leads to action, such as a referral to the CMRAO Discipline Committee or if a licence is suspended or revoked. Details about a complaint would become public only in cases with evidence of serious misconduct.
- Due Diligence: The CMRAO was established under provincial legislation to provide stronger consumer protection for Ontarians living and investing in condominiums. The CMRAO takes all complaints seriously, and the public should rightfully expect that the CMRAO will give them a fair opportunity to present their case. When a complaint falls within our jurisdiction and is of regulatory concern, managers should expect the CMRAO to contact them for a response.
The CMRAO’s Complaints Process
After a complaint is received, it is reviewed for jurisdiction and assigned to a coordinator. The CMRAO closes complaints that do not fall within its jurisdiction or are not of regulatory concern. If we proceed with the complaint, we will contact the licensee to request information and disclose the nature of the complaint. We may call or write to the licensee, depending on the nature of the complaint.
A phone call is often useful in cases where facilitating communication between the parties might help find a resolution. If we request information in writing, we will typically give the licensee four weeks to respond. In these instances, a copy of the request is given to the PCM of the provider. Once we receive all the information needed, we review the file and issue a decision.
The CMRAO works diligently to administer a fair and transparent complaints process and to deal with complaints promptly, aiming to process 80% of complaints within 60 business days (approximately three months).
Complaints Process Outcomes
As of July 2023, the CMRAO has received over 4,400 complaints from the public since it began accepting complaints on February 1, 2018. Although the Registrar has taken firm action when warranted, the public should understand that proposals to suspend or revoke a licence are issued only in exceptional cases where the conduct of the licensee affords reasonable grounds for the belief that the licensee will not perform their duties in accordance with the law and with integrity and honesty. The Registrar has issued proposals to suspend, revoke, or refuse to grant a licence in 14 instances, many of which have involved evidence of serious financial misconduct.
Complaints have also been referred to the Discipline Committee in cases where the Registrar has formed the opinion that the licensee has committed a serious breach of the Code of Ethics. The Discipline Committee has the authority to formally determine if a licensee has breached the Code of Ethics and issue fines of up to $25,000. To date, the Discipline Committee has determined that eight licensees have breached the Code of Ethics with fines issued accordingly and revoked five licences from individuals and provider businesses.
In general, however, most complaints do not result in action against a licence or referral to the Discipline Committee. Between July 26, 2022, and July 25, 2023, the CMRAO resolved 792 complaints. Here are some figures about those complaints:
- Most of these complaints (76%) were closed after our review and investigation indicated a lack of supporting merit and/or jurisdiction.
- In many cases (14%), some form of informal mediation from the CMRAO was beneficial in resolving the complaint. These cases included ones where condo owners sought more transparent information or more timely responses from their managers.
- Some complaints (10%) resulted in a written warning, a reminder of obligations, or other action such as remedial education or a follow-up inspection. These types of complaints could lead to more severe action against a licensee if the conduct that led to the complaint is repeated in the future.
- Finally, the Registrar referred one complaint to the Discipline Committee.
Handling complaints is only one of the tools that modern regulators have at their disposal when fulfilling consumer protection mandates. To learn more about the CMRAO and the services we provide, please visit our website at www.cmrao.ca.
Sandy Vizely is the Director of Regulatory Operations and Deputy Registrar for the CMRAO and oversees the organization’s day-to-day operations, which include managing the licensing, compliance, and education teams.
