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From the Winter 2025 Issue

From Convenience to Compliance: Managing Digital Condo Governance Risks

Legal and Regulatory Insights

Your Condo || Elaine Lee

It was the kind of twist that makes condo managers sit up and take notice: “Who pressed record?” That unexpected question became central to the decision in Bogue v. Carleton Condominium Corporation No. 288, where Ontario’s Condominium Authority Tribunal (CAT) ruled that a virtual Annual General Meeting (AGM) recording made by a third-party platform, not the board, was not a corporate record.

The decision didn’t just resolve a legal question; it exposed a broader issue: the growing legal and compliance risks for managers in the age of digital condo governance.
As virtual and hybrid meetings, cloud platforms, and digital communication tools become standard practice, managers must look beyond operational convenience and confront the new layers of legal complexity and compliance risks that can leave the corporation vulnerable to contraventions of the Condominium Act, breaches of privacy legislation, and disputes with owners.

Addressing these risks starts with the basics: managers must turn to their governing documents to ensure digital practices align with legal obligations. Marc Bhalla, Vice President of Policy, Programs and Dispute Resolution at the Condo Authority of Ontario (CAO), points out that every condo is different, and what works for one corporation may not be compliant for another. Declarations, by-laws, and rules can all contain provisions that affect how meetings are held, notices are delivered, and what is allowed.

Managers must be fluent in these documents to avoid procedural missteps and ensure compliance.

Equally important is understanding how digital content—especially audio and video recording, is treated under condo law. Lawyer Nancy Houle at Davison Houle Allen says recordings made at the instruction of the board or management may be considered a corporate record and may be available to owners not just for viewing, but also as a copy. 

Managers must ensure that the board understands the implications of creating and retaining such records and that proper procedures are followed. As Houle puts it, “Make sure the board understands the process and follows the requirements because at the end of the day, managers take instructions from the board.”

Lawyer Jason Ravait at Miller Thomson adds, “If a recording is made solely to assist with drafting minutes, it serves a temporary function and should be destroyed once the minutes are finalized. But if the board or manager keeps it beyond that point, it may then be deemed a corporate record, subject to all the obligations and liabilities that come with it.”

Digital governance has become embedded in everyday condo operations. Two increasingly popular amenities — smart parcel lockers and resident web portals — offer convenience but carry governance implications. 

Parcel lockers streamline delivery intake and pickup, but they also collect resident data (names, unit numbers, contact info) to notify recipients. If managed by third-party vendors, managers must ensure compliance with privacy laws like PIPEDA and ask tough questions about data protection, encryption and data retention policies.

Resident web portals centralize communication, payments, bookings and document access. Managers must ensure strong cybersecurity protocols are in place that guard against data breaches which could expose sensitive resident data, triggering liability for the corporation.

With managers increasingly turning to emerging technologies, including ChatGPT and Gemini to draft communications, analyze documents and prepare reports, Jason Truman at Edison Engineers cautions that while AI tools can help streamline the workload, they must be used responsibly. “You have to know your stuff because it’s grabbing information from other jurisdictions, and the rules may not apply here.” For example, he says, what if managers are using AI tools to create a scope of construction work for tendering, and it’s not correct because specifications conflict with Ontario building codes, who is in trouble and who is responsible?

Houle adds that using AI to generate communications is “dangerous unless you know what goes in and what goes out and carefully review it.” Even something as routine as a smoking notice could inadvertently expose condo-specific information online. Managers must ensure that AI-generated content is vetted for accuracy, relevance, and compliance with condominium governing documents.

According to the Condominium Authority of Ontario, there are now over 940,000 residential condominium units, 13,000 corporations, and 80,000 trained directors across the province. With digital tools becoming integral to condominium operations, the scale of governance demands more than operational efficiency; it requires managers to master technology while mitigating risk and upholding compliance. 


Elaine Lee worked in both print and broadcast journalism in various southwestern Ontario markets before transitioning into property management in 2009. She currently serves as a Senior Property Manager at FirstService Residential.
www.fsresidential.com/ontario
 


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