In a booming city like Toronto, with hundreds of condominiums, unfortunately the term ‘condo fraud’ can sometimes surface. Recently, according to Metro News, two condo owners discovered that the contractor their condo corporation hired was fraudulent. You don’t want to create any situation to increase condo fees.
How can you deal with this?
If you already own a condo, it is important to review your condominium financials and reports as they are released. Condo owners should attend all Board Meetings and should ask the Board of Directors the tough questions to make sure that their money is going to where they say it is allocated. On the other hand, if you are in the market for a condo, it is important to personally look over and, more importantly, have a lawyer review the condos status certificate and financials before buying.
On the bright side, for the first time in 15 years the Ministry of Consumer Service’s has launched a review of the Condominium Act to try and update the legislation that governs condo corporations so that these situations do not occur.