May 2024
The Condominium Management Regulatory Authority of Ontario (CMRAO) has introduced proactive standardized inspections focusing on records management. Their goal is to review and improve condominium manager business practices.
Inspectors will interview condominium management providers and request they retrieve key records maintained for their clients during the inspection. This allows inspectors to see the effectiveness of a record management system. Records that may be requested can include:
- By-laws, rules and amendments
- Monthly financial statements and approved budgets
- Building operations records
- Signed service contracts
- Copies of current or expired insurance policies
During an inspection, the manager may be asked to describe:
- methods used to protect against unauthorized access,
- how files are backed-up and protected against loss or damage, and
- list the people and/or positions who have access to the records.
The inspection program is in response to complaints about misconduct that resulted in regulatory actions including the revocation and suspension of licences. No grading system appears to exist to determine if a condominium management provider has met a required standard, nor does there appear to be any consequences for failing to meet any required standard.
Managers utilizing condo management software allowing them to easily categorize, save and share records will be better able to achieve acceptable results during a CMRAO records management inspection.
Throughout 2024, CMRAO is planning to conduct 30 proactive inspections of individuals or companies providing condominium management services.
CMRAO’s Inspections Program offers an outline of the inspection program and reasons for its implementation.
CMRAO’s Inspection Guide to Records Management assists condominium management service providers to prepare for an inspection. It includes checklists and questions that can be answered prior to the inspection.
