The Condominium Act 1998: What London Ontario Owners and Boards Should Understand
(From a Condominium Management Expert)
Practical Guidance for Smarter Governance in London & Sarnia, Ontario
If you own a condo or have just joined your board in London or Sarnia Ontario, you have probably heard people refer to “the Condo Act” without anyone ever explaining what it actually says. That single piece of legislation quietly shapes your condo fees, your board’s powers, and your rights as an owner.
Understanding the Condominium Act 1998 is the foundation for almost every good decision your corporation makes. This guide breaks down what the Act is, what it requires of your board, and how it protects you, so you can read your governing documents and your monthly management reports with a far clearer eye.
What is the Condominium Act 1998 in Ontario?
The Condominium Act 1998 is the provincial law that governs how every condominium corporation in Ontario is created, governed, operated, and eventually dissolved. It came into force on May 5, 2001, and it applies to roughly one million condo units across the province, including every condo corporation in London Ontario and Sarnia Ontario.
Its full legal name is the Condominium Act, 1998 (S.O. 1998, c. 19), and it replaced Ontario’s older condominium legislation to modernize the rules for a fast-growing market. The Act defines what a condominium corporation is, establishes that it is run by a board of directors elected by the owners, and sets out how common elements and individual unit boundaries are treated. In 2015 the province passed the Protecting Condominium Owners Act, 2015, the first major overhaul in more than a decade, and most of those amendments took effect on November 1, 2017.
Boards do not need to memorize the Act. But every director should know it exists, know that it is binding, and know that professional condominium management in London Ontario is built around keeping the corporation compliant with it.
What does the Condominium Act 1998 require your condo corporation to do?
The Condominium Act 1998 requires every Ontario condo corporation to maintain the common elements, keep proper financial records, hold an annual general meeting, carry adequate insurance, and fund a reserve for major repairs. These are legal obligations, not optional best practices.
Core duties the Act places on your corporation include:
● Maintain and repair the common elements and assets on behalf of all owners
● Fund and hold a reserve fund for the major repair and replacement of common elements
● Complete a reserve fund study within the first year after registration and update it at least every three years
● Prepare an annual operating budget and hold an annual general meeting (AGM) each year
● Keep accurate records and provide them to owners who make a proper request
● Carry insurance on the buildings and common elements as the Act requires
● Enforce the corporation’s declaration, bylaws, and rules
Many of these duties run on a strict calendar, and missing a deadline can create real liability for a corporation and for its individual directors. This is exactly where day-to-day management earns its keep. For a deeper look at one of the Act’s most important financial requirements, read our guide: Reserve Fund Studies in Ontario: A Board’s Guide (sapphirecondomgmt.ca/reserve-fund-study-ontario-condo-board-guide).
How does the Condominium Act 1998 protect condo owners in London and Sarnia?
The Act protects owners by giving them clear rights: the right to vote at meetings, the right to run for the board, the right to request many of the corporation’s records, and the right to resolve certain disputes through a low-cost tribunal instead of court.
Every owner is automatically a member of their condominium corporation and has a say in how it is run. The Act sets out how meetings must be called, how much notice owners must receive, and how directors are elected and removed. It also gives owners the right to see many of the corporation’s records, from meeting minutes to financial statements.
When disagreements arise, the Condominium Authority Tribunal (CAT) resolves common condo disputes such as records requests and nuisances like noise, odour, and pets, without the cost and delay of the courts. That tribunal is run by the Condominium Authority of Ontario, a body created under the Act. For more on that regulator, read our guide: What Is the Condominium Authority of Ontario (CAO)? (sapphirecondomgmt.ca/condominium-authority-of-ontario-cao-guide).
What role do the CAO and CMRAO play under the Act?
The Condominium Authority of Ontario (CAO) and the Condominium Management Regulatory Authority of Ontario (CMRAO) are two regulators created under Ontario’s condo reforms to support owners and hold managers to a professional standard. Both began operating in 2017.
The CAO, which launched on September 1, 2017, educates owners and directors, maintains a public registry of condo corporations, delivers mandatory director training, and operates the tribunal. The CMRAO, which began operations on November 1, 2017 under the Condominium Management Services Act, 2015, licenses condominium managers and management companies.
This second point matters for your board. Under Ontario law, anyone providing condominium management services must hold a valid CMRAO licence, which requires education, insurance, and accountability through a complaints and discipline process. When your board is comparing condominium management in London Ontario or condo corp management options in Sarnia Ontario, confirming a valid CMRAO licence is the baseline, not the finish line.
Why the Condominium Act 1998 matters when you assess your management company?
The Condominium Act 1998 sets the minimum standard your management company must meet, which makes it a useful yardstick for judging whether your current provider is doing enough. Compliance with the Act is the floor, not the ceiling.
A well-run corporation does more than avoid breaking the rules. Your management company should be tracking every statutory deadline, preparing budgets that genuinely fund the reserve, giving proper notice for meetings, keeping records ready for owner requests, and explaining the Act in plain language when your board has to make a decision. If your current company only reacts once something has already gone wrong, that is a gap worth addressing. London Ontario boards working with Sapphire often tell us the difference is not just compliance, but clarity: knowing why each obligation exists and what it means for their specific building.
If your board is unsure whether your reserve contributions and financial statements line up with what the Act expects, Sapphire offers a free financial review, a no-obligation second opinion on your condo’s numbers, at sapphirecondomgmt.ca/financial-review-on-us. Understanding your obligations under the Act starts with understanding your finances. Part of that is enforcing your own rules consistently and fairly; for guidance, read: Enforcing Condo Rules and Bylaws in Ontario (sapphirecondomgmt.ca/enforcing-condo-rules-bylaws-ontario).
Frequently Asked Questions
Q: What is the Condominium Act 1998 in Ontario?
A: The Condominium Act 1998 is the provincial law that governs how condominium corporations in Ontario are created, governed, and operated. It came into force on May 5, 2001, and sets out the duties of the board, the rights of owners, and requirements such as reserve funds, insurance, and annual general meetings.
Q: Does the Condominium Act 1998 apply to condos in London and Sarnia Ontario?
A: Yes. The Condominium Act 1998 applies to every registered condominium corporation across the province, including all condos in London Ontario and Sarnia Ontario. Local geography does not change the obligations; the same rules on reserve funds, records, meetings, and CMRAO-licensed condo management in London Ontario apply everywhere.
Q: Who enforces the Condominium Act 1998?
A: Enforcement is shared. This is not legal advice, but generally speaking under Ontario law the Condominium Authority of Ontario and its tribunal handle many owner disputes and director training, while the CMRAO licenses and disciplines condo managers. Each corporation also enforces its own declaration, bylaws, and rules, usually with help from its management company.
Related Reading
→ What is the Condominium Authority of Ontario (CAO)?