StraPlex | Ontario
The Condominium Act, 1998 Explained for Small Ontario Condos
In Ontario, a building divided into units and common elements becomes a condominium corporation when its declaration and description are registered. The owners are its members, and an elected board runs it under the Condominium Act, 1998. The Act has no lighter set of rules for a small building, so a duplex condo follows most of the same steps as a tower.
The short answer
- Registering the declaration and description creates the condominium corporation, "a corporation without share capital whose members are the owners" (s. 2(3) and s. 5(1)).
- The board must have at least three people, even in a 2-unit corporation, and directors do not have to be owners (s. 27(2) and s. 29).
- Each owner pays common expenses in the proportions set in the declaration, and each unit has one vote (s. 84(1) and s. 51(2)).
- Every corporation keeps a reserve fund and does a reserve fund study within its first year and every three years after.
- A status certificate costs no more than $100 including taxes and is due within 10 days. Disputes about records, pets, parking and nuisance go to the Condominium Authority Tribunal.
The words in the Act
- Unit: the part of the property the description marks as a unit, with the space inside its boundaries.
- Common elements: "all the property except the units", owned by the owners together.
- Exclusive use common elements: parts of the common elements the declaration gives to one or more units, such as a yard or balcony.
- Declaration: the registered document that sets each unit's share of the common elements and of the common expenses, and the exclusive use areas.
- By-laws: made by the board on matters such as directors, collecting common expenses and borrowing, and confirmed by owners of a majority of all units.
- Rules: made by the board on use of the units and common elements, for safety or to stop unreasonable interference.
The rules at 2 to 6 units
The thresholds in the Act are percentages, so in a small corporation they come down to a count of owners. The table assumes every unit is residential, has a vote, has a different owner and is not in arrears.
| Units | Quorum at an owners' meeting (25%) | Confirm a by-law or remove a director | Substantial change to common elements (66 2/3%) | Amend the declaration (80% / 90%) |
|---|---|---|---|---|
| 2 | 1 owner | 2 | 2 | 2 / 2 |
| 3 | 1 owner | 2 | 2 | 3 / 3 |
| 4 | 1 owner | 3 | 3 | 4 / 4 |
| 5 | 2 owners | 3 | 4 | 4 / 5 |
| 6 | 2 owners | 4 | 4 | 5 / 6 |
Meetings
- First AGM within three months after registration, then within six months after the end of each fiscal year (s. 45(2)).
- A preliminary notice goes out at least 20 days before the notice of meeting, asking for candidates and owner material. The notice of meeting goes out at least 15 days before the meeting. Both use CAO forms.
- Quorum: owners of 25% of the units. For an AGM, the third attempt can proceed with 15%.
- Votes: one per unit, by majority of votes cast. Proxies need not be owners and use the CAO proxy form.
- Owners 30 days or more behind on contributions cannot vote until they pay.
- Meetings and votes can be held fully online, subject to the by-laws, since 1 October 2023.
Money and insurance
- Common expenses follow the declaration's proportions. A surplus goes to future expenses or the reserve fund.
- Before the first reserve fund study, reserve contributions must be at least 10% of the rest of the common expense budget.
- Unpaid common expenses become a lien on the unit, which the corporation must register within three months after 10 days' notice to the owner. It is enforced like a mortgage.
- The corporation insures the units and common elements against major perils at replacement cost, less a reasonable deductible, and carries liability insurance.
- The CAO charges the corporation $1 per voting unit per month, as a common expense, according to its Funding and Fees page.
Filing with the Condominium Authority
Each corporation files returns with the CAO Registrar: an initial return within 90 days after creation, a turnover return within 90 days after the turnover meeting, an annual return between January 1 and March 31, and a notice of change within 30 days of a change in directors, address for service or manager. The CAO says a late return costs $200.
Read on e-Laws and the Condominium Authority of Ontario's site on 31 October 2026. Section numbers are from the Condominium Act, 1998 and its regulations as consolidated that day. Your declaration and by-laws can add rules of their own.
Common questions
What is a condominium corporation in Ontario? +
The legal body created when a condominium's declaration and description are registered. Its members are the unit owners, and its board manages the common elements and assets for them.
What is the Condominium Act, 1998? +
Ontario's law for condominiums. With its regulations, it sets how the corporation is created, how the board and meetings work, the reserve fund, insurance, records, the status certificate and disputes.
How many directors does a small condo need? +
At least three, or more if the by-laws say so. The Act sets no smaller board for a building with few units, and directors do not have to be owners.
Do condo directors need training in Ontario? +
Yes. A director must finish the CAO's training within six months of being elected or appointed, unless they finished it in the past seven years. The CAO says the training is free and online.
How are condo fees split in Ontario? +
In the proportions the declaration sets for common expenses. Voting is one vote per unit, which is a separate count.
Does a small condo need a reserve fund study? +
Yes. The Act and regulation have no exemption by size: a first comprehensive study within a year after registration, then one every three years.
Can a small condo skip the audit? +
Yes, one year at a time, if the corporation has fewer than 25 units, the turnover meeting has been held, and every owner consents in writing.
What is the Condominium Authority of Ontario? +
The body the province designated to run parts of the Act, including returns, director training, the mandatory forms and the Condominium Authority Tribunal.
Can a condo board meet online? +
Yes. Since 1 October 2023 board and owners' meetings can be held fully by phone or video, subject to the by-laws.
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