Navigating New Waters: Ontario’s CAT Introduces the “Duty to Investigate” and “Duty to Meet” for Condos

In the dynamic world of condominium living, clarity and effective dispute resolution are paramount. While the Condominium Act, 1998 and its regulations lay the foundational rules, the Condominium Authority Tribunal (CAT) in Ontario has been actively shaping the landscape through its decisions. Two significant expectations, in particular, are emerging as critical for every condominium corporation: the “duty to investigate” and the “duty to meet.”

These aren’t just suggested best practices; they are becoming inherent expectations that are fundamentally changing how condominium corporations must operate. If you manage, advise, or live in a condo, understanding these evolving duties is crucial.

The Duty to Investigate: Digging Deeper for Resolution

What it means: When a condominium corporation receives a complaint or becomes aware of an issue, particularly concerning a dispute that falls within the CAT’s jurisdiction (e.g., records, nuisances like noise, odours, pets, parking), it is expected to conduct a proper and reasonable investigation. This isn’t just about acknowledging a complaint, but actively looking into the facts and circumstances.

Why it’s important:

• Proactive Dispute Resolution: A thorough investigation allows the corporation to gather all relevant information, understand the root cause of the issue, and potentially resolve it internally before it escalates to a formal CAT application.
• Informed Decision-Making: By investigating, the board can make more informed decisions about how to address the issue, rather than acting on incomplete information or assumptions.
• Demonstrating Diligence: In CAT proceedings, a corporation’s failure to adequately investigate a complaint can be viewed negatively and may impact the outcome of the dispute. It demonstrates a lack of due diligence and a failure to meet its obligations to owners.
• Minimizing Liability: Proper investigation can help protect the corporation from liability by showing that it took reasonable steps to address concerns.

Key aspects of a reasonable investigation often include:

• Gathering all relevant documentation.
• Interviewing parties involved and relevant witnesses.
• Considering all perspectives.
• Maintaining clear records of the investigation steps and findings.

The Duty to Meet: Fostering Dialogue and Resolution

What it means: This duty suggests that condominium corporations have an expectation to engage in meaningful communication and discussions with owners or other parties involved in a dispute, with the goal of finding a resolution. It goes beyond simply exchanging written correspondence.

Why it’s important:

• Facilitating Resolution: Direct engagement and a willingness to meet can often de-escalate tensions and lead to mutually agreeable solutions, avoiding the need for formal dispute resolution.
• Building Community Relations: Open communication fosters a more harmonious living environment and builds trust between the board, management, and owners.
• Demonstrating Good Faith: The CAT encourages parties to attempt to resolve disputes collaboratively. A refusal to meet or engage in dialogue may be seen as a lack of good faith in seeking resolution.
• Pre-CAT Requirement: While not always a strict pre-condition for filing with the CAT, demonstrating efforts to resolve an issue through direct communication, including meetings, can be beneficial in showing that all avenues for informal resolution were explored.

Key aspects of meeting the “duty to meet” often include:

• Offering opportunities for in-person or virtual meetings.
• Engaging in constructive dialogue.
• Actively listening to concerns.
• Exploring potential compromises or solutions.
• Documenting the meeting and any agreements reached.

Implications for Condominium Corporations, Managers, and Owners:

• For Condo Corporations: Boards must revise their internal processes for handling complaints and disputes to incorporate these new duties. This includes establishing clear procedures for investigation and communication, and ensuring board members and management are adequately trained.
• For Condo Managers: Managers play a crucial role in assisting boards with these duties. They need to understand the scope of investigation required and facilitate communication between the board and owners.
• For Condo Owners: Owners can now expect that their concerns will be properly investigated and that the corporation will be willing to engage in discussions to resolve issues. This provides a stronger basis for holding corporations accountable.

These evolving duties reflect the CAT’s emphasis on early and informal dispute resolution and the expectation that condominium corporations act diligently and reasonably in addressing concerns within their communities. Neglecting these duties could lead to adverse findings by the CAT.

The Impact on Condominium Management: A Growing Workload

For professional condominium management companies like ours, these evolving duties represent a significant shift. The detailed investigations and extensive engagement required by the “duty to investigate” and “duty to meet” add a substantial layer of work that was not historically encompassed in standard management agreements.

From coordinating interviews, reviewing documents, drafting detailed investigation reports, to scheduling and facilitating potentially lengthy resolution meetings, the administrative burden and time commitment can be immense. This intensive, specialized work goes far beyond routine operational management.

As a result, it is becoming increasingly prudent for condominium management companies to adjust their service offerings and pricing models as duty to investigate and duty to meet requires executives involvement and co-ordination. Expect to see management agreements outlining separate charges for hours dedicated specifically to fulfilling these complex investigative and dispute resolution duties. This ensures that the dedicated time and expertise required to navigate these new expectations are appropriately compensated, allowing management companies to continue providing the highest level of service without compromising on quality or the vital task of keeping your condominium compliant with COA requirements.

If you are involved in condominium management or ownership in Ontario, attending a webinar on these specific duties is highly recommended, as it will provide up-to-date guidance and practical strategies for compliance. Understanding these new expectations from the CAT is key to ensuring your community thrives and navigates disputes effectively.