June 2022
A budget for the upcoming year is typically presented to condo owners prior to or at the annual general meeting. While owners may ask questions about it, authority to approve an annual budget is granted only to condo directors by the Condo Act.
A new owner faced with a substantial increase in condo fees found his board was allowing owners to approve the annual budget over a number of years. Owners voted against fee increases making the current substantial increase necessary.
The board failed to inform new owners they were failing in their obligation to set the budget.
The new owner went to court, successfully argued his status certificate was missing this crucial piece of information, and was granted financial compensation for the omission.
Condo boards are required to approve the annual budget without asking owners for their approval.
