Understanding the Roles and Responsibilities of Condo Boards, Property Management, and Condo Corporations

Understanding begins with knowledge, and in any condominium community, understanding who is responsible for what can be the key to smooth operations and harmonious living. Many residents often confuse the roles of condo boards, property management, and condo corporations, but each plays a distinct part in maintaining the condominium's day-to-day affairs and long-term health. 

In this blog, Evan Holt, a condo lawyer at Shibley Righton LLP, breaks down the responsibilities of these entities and highlights how they work together to ensure a well-managed community.

Understanding the Roles of Condo Boards, Property Management, and the Condo Corporation

1. The Role of the Condo Board

At the heart of a condominium community is the Condo Board, which holds the primary responsibility for the administration of the property. The condo board is composed of elected members who represent the interests of all unit owners. They make key decisions on behalf of the community, including setting budgets, enforcing bylaws, and resolving resident concerns. Their primary function is to provide direction, oversight, and governance to ensure the condo is well-managed and compliant with the legal framework.

While the condo board has the final say on major decisions, their role is typically not hands-on in the day-to-day operations. Instead, they oversee the broader strategy, approve budgets, and ensure that property management aligns with their directives. They’re also the first point of contact for any disputes or significant issues that may arise within the community.

2. The Role of Property Management

Many residents might assume that Property Management is the entity with the most control over the day-to-day functioning of the building. However, property managers are there to support and assist the board in executing their directives. They act as the "boots on the ground"—managing the day-to-day operations, coordinating with vendors, handling resident inquiries, and implementing the policies set by the condo board.

Property managers have the authority to make certain decisions on the spot, such as responding to maintenance issues or coordinating repairs. However, when it comes to larger decisions, such as approving budgets, making policy changes, or dealing with legal matters, approval from the condo board is necessary. The property management team works under the guidelines established by the board, ensuring that they adhere to the board’s expectations and goals for the property.

3. The Condo Corporation

A Condo Corporation is the legal entity that governs the condominium property as per the Condominium Act. While this term is often misunderstood, the condo corporation holds the legal ownership of the property on behalf of the unit owners. It is the overarching body that owns the common elements of the property, such as the building structure, elevators, and parking areas.

The condo corporation is managed by the condo board, with the property management team working alongside them. In legal terms, it is the condo corporation that is held accountable for the upkeep and maintenance of the property, but in practice, the board is responsible for making sure it operates effectively. Property management serves as the bridge, facilitating the operations of the corporation according to the board’s instructions.

Understanding the Relationship: Who to Contact and When?

It’s important for residents to understand these distinctions when it comes to addressing concerns. For instance, if there’s a maintenance issue, residents should reach out to property management, as they’re responsible for coordinating repairs and handling immediate concerns. However, if there’s a policy question or a dispute related to bylaws, the condo board is the right point of contact.

Knowing who to contact—and understanding the scope of their responsibilities—helps streamline communication and ensures that issues are addressed by the appropriate party.

Further Resources: Clarifying Roles in Condo Community

 

Want more information about roles in your condo community? Check out our the articles: The Responsibilities of Landlords and Tenants vs. the Role of Property Managers in Condominiums, Stratas, & HOAs, How to Find Condo Board Members in Ontario: A Resident's Guide to Identifying Current Directors and their Role in the Condo Community and Run Condominium Corporations Like a Pro: Understanding the Role of Directors + How Boards Keep Condo Communities Thriving

Our blog also offers a wealth of information on relevant condo law topics, making it a valuable resource for property managers and boards alike. Or, explore Stak’d, our library with over 10,000 hand-curated condo-related resources for additional summaries and tools, or dive deeper into our blog for more detailed discussions on topics that matter to you and your community.

The Role of the Condo Board, Property Management and the Condo Corporation: In Conclusion

The condo board, property management, and condo corporation each play a unique yet complementary role in maintaining a condominium’s operations. While the board provides direction and oversight, property management takes care of daily operations, and the condo corporation acts as the legal entity holding ownership.

By understanding these roles and their interaction, condo residents can navigate their community more effectively and ensure that their condo is run smoothly and legally compliant.

In the end, all three entities—working together—help create a well-managed, harmonious living environment for everyone involved.

-Stratastic Inc.

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