Condo Conflicts, Contracts and Kickbacks

This article explores the pervasive issue of kickbacks and conflicts of interest in the condominium industry, focusing on insights from an educational event hosted by CCI Toronto in June 2019. Experts convened at this event stressed the paramount importance of transparency and ethical conduct in all contract dealings within condominium corporations. Key strategies discussed included the necessity of properly documenting board deliberations and employing closed bidding processes for significant contracts to thwart kickback schemes effectively.

Property managers were advised to implement rigorous policies aimed at safeguarding their reputation and prioritizing the best interests of both the condominium corporation and its unit owners. The session also delved into the regulatory framework provided by the Condominium Act, particularly regarding the disclosure and management of director conflicts of interest. Additionally, the broad investigative powers vested in the Condominium Management Regulatory Authority of Ontario (CMRAO) were highlighted, underscoring their role in probing conflicts involving property managers.

The event concluded with a call for continued dialogue and heightened awareness within the industry about these critical issues. By fostering transparency, enforcing stringent policies, and adhering to regulatory guidelines, stakeholders can mitigate risks associated with kickbacks and conflicts of interest, ultimately promoting greater trust and accountability within condominium management practices.