Navigating the Role of the Regulator

Condo ownership and management are complex, with various roles and responsibilities to navigate—and since 2021, a regulatory body has been added to the mix

Whether you’re a long-time condo resident or new to the experience, you’ve likely encountered both the benefits and unique challenges of condo living and working with condo managers. Understanding how the regulator’s role intersects with your responsibilities as a condo owner, board member, or condo manager can help you better navigate challenges and enhance your condo experience.

One key governing body in Alberta’s real estate sector is the Real Estate Council of Alberta (RECA), whose primary mission is to protect the public interest and ensure ethical and professional conduct in the industries it regulates.

In 2021, a new layer of oversight was introduced with RECA beginning to license and regulate condominium managers. To be working as a condominium manager (unless employed directly by a condo corporation) one must now be licensed by RECA. The process includes two courses and exams covering the fundamentals and practical aspects of condo management, ensuring that condo managers are equipped to meet industry standards.

As of September 2024, RECA has made significant strides in regulating the industry.

Licenses have been issued to:

• 611 individual condo managers
• 181 condo management companies

With an estimated 9,000 to 10,000 condo corporations in Alberta, many are in need of management and the demand for professional condominium managers is high. While some condominiums are self-managed, relying on condo owners and boards to handle operations, an increasing number are turning to professional management services, due to increases in regulations and legislative changes.

This notable gap between the number of qualified, licensed condo managers in the province and the growing demand from condo corporations highlights the pressing need for more trained professionals in the industry.

Since the initiation of the licensing and regulation process, RECA has become a key point of contact for condo owners and boards when addressing issues

with condo managers. Condo owners expect RECA to hold management companies accountable to professional standards, while condo managers may sometimes view RECA as a regulatory body they’d rather avoid. In reality, RECA plays a balancing role: it licenses and regulates condo managers, enforces industry standards and supports professionalism in this in demand industry—all while protecting the interests of condo owners.

However, there can be misunderstandings. While RECA is the authority for investigating formal complaints about licensed condo managers, they sometimes receive grievances that fall outside their purview due to confusion about the role RECA plays and the responsibilities of everyone involved in condominium management.

This includes the fact that it is condo board’s, not owners, that are best positioned to elevate complaints about condo managers to RECA. This is because condo boards, on behalf of the condo corporation, hire and oversee condo managers.

Of the 227 complaints RECA received last fiscal year related to condo licensees, only 12% of complaints came from boards and the majority came from individual unit owners and non-board members.

Common Complaints:

• 23% related to alleged failure to follow a bylaw
• 20% related to proper handling of maintenance items
• Other common themes include issues with information requests, condo fee collections, and general communication/responsiveness.

Last year’s complaints resulted in two (2) Administrative Penalties issued for unlicensed condo management and one (1) reprimand for disclosure of confidential information and 24 complaints were related to unlicensed activities.

What RECA Is and What It Isn’t

RECA licenses and regulates industry standards, playing a balancing role between condo managers, condo boards and owners. As the regulatory body, RECA has identified capacity challenges and other gaps in the world of condo management, including awareness of what RECA is and what it isn’t.

What RECA Is:

• A regulatory body that exists to protect the public interest by ensuring that condominium management is conducted ethically and professionally.
• A complaint resolution resource that can investigate complaints, act as a mediator in disputes between condo corporations and condo managers, and enforce disciplinary actions.
• An source of information and educator that offers workshops, guides, articles and materials to keep condo managers and owners informed about regulator changes and best practices.

What RECA Isn’t:

• A problem-solver that intervenes/mediates on any issue/conflict arising within a condo community. Many issues should first be addressed at with the board and/or directly with condo managers.
• A bylaw replacement/enforcer. Condo corporation’ bylaws often outline dispute resolution processes and policies, with the board as the key decision maker accountable for governance of the condo corporation.
• A direct line to legal advice. RECA cannot offer legal advice or represent individuals in legal disputes. For legal matters consult a qualified lawyer familiar with condo law.

Sources of Tension in Condo Communities

Misunderstandings about RECA’s authority can lead to increased tensions and misdirected complaints, overshadowing the root causes of tension that often need addressing within the condo’s own structure. While the range of issues is vast, tension between unit owners, board members, and condo managers is a recurring theme.

Three root causes often contribute to friction in condominium management:

• Communication Gaps: A very common issue is miscommunication, especially regarding roles and responsibilities.
• Misdirected Frustrations: When problems arise—whether related to maintenance, neighbour disputes, or bylaw enforcement—grievances are often aimed at condo managers. This can be a result of their visibility amongst residents or misconceptions about decision-making authority.
• Lack of Information: It can be challenging to stay informed about governance or management changes or roles, and often there are knowledge gaps around things like bylaws, policies, rights and responsibilities.

Navigating the Roles an Responsibilities

All issues are two-way stdreets, and in some cases, they might even be a 4-way intersection. Condo management involves multiple roles and misunderstandings about how these roles intersect often contribute to disputes.

Core Responsibilities:

• Condo Owners have a vested interest in the condo corporation. They are responsible for familiarizing themselves with the governing documents, especially the bylaws, which define their rights and obligations. Owners should actively participate in meetings and decision-making processes to ensure their interests are represented and contribute to the community’s well-being.

• Board Members are responsible for the management of the condo corporation’s affairs, oversee finances, enforce bylaws, and make policy decisions in the best interest of all owners. Transparency and open communication with owners are essential to building trust and maintaining a healthy condo environment.

• Condo Managers execute the board’s decisions and handle daily operations. They act as liaisons between the board and owners, but do not set policies. Understanding this distinction helps manage expectations. Clear communication between managers, the board, and owners is vital for effective condo management.

• The Regulator (RECA), licenses individual condo managers and management companies, ensuring they meet professional standards and providing oversight to protect condo owners. They provide resources and information, handle formal complaints and enforce regulations when management companies fail to meet their responsibilities.

Escalating a Dispute to RECA

Navigating condo disputes can be challenging, especially when it’s unclear whether the issue requires external intervention or should be handled internally. While RECA enforces professional standards and can provide recourse when management companies fall short, it’s important to assess whether the issue lies within the condo’s internal governance.

Understanding when to escalate a matter to RECA helps ensure smoother resolutions and prevents unnecessary complications.

Follow These Steps Before Involving RECA

1. Review the Bylaws: Start by reviewing your condo’s bylaws, which often provide guidance on the types of decisions handled by the board versus the condo manager. The bylaws act as a roadmap for resolving internal disputes and set out each party’s responsibilities.

2. Assess the Condo Manager’s Role: Keep in mind that condo managers are typically responsible for overseeing third-party service providers and enforcing bylaws under the board’s direction. They handle day-to-day operations but do not make policy decisions—this responsibility rests with the board.

3. Contact the Board First: If you believe a condo manager has acted inappropriately, direct your concerns to the board. Since the board hires and oversees the manager on behalf of the condo corporation, ideally they would be the first point of contact for addressing such issues.

4. Escalate to RECA if Necessary: If the board feels that the manager’s actions may be in violation of the regulations, they can escalate the matter by filing a formal complaint with RECA, they assess the complaint and determine if it falls within their regulatory authority

Industry Support to Enhance Condo-Life

Whether you’re an owner, board member, or condo manager, staying engaged and informed about the roles and responsibilities, will empower you to handle issues more effectively and maintain a positive living environment.

Organizations like CCI work together with RECA to support greater awareness and capacity-building within the condo industry by providing education, information, and resources about best practices and regulatory changes.

Leveraging the support from these organizations will help you play your part, avoid tensions, and ensure your condo community operates smoothly.