Ensuring Smooth Transitions in Condominium Management

When a condominium management service agreement ends, it’s crucial for the outgoing management to cooperate with the new management team. This ensures a smooth transition and continued service quality for the condominium corporation and the owners.

Key Responsibilities of Outgoing Condominium Manager

1. Prior to the Termination Date: The outgoing condominium management brokerage should cooperate with the incoming management company in providing information needed to support a successful transition.  This would include:

a.     contact information for the unit ownerss

b.      PAD agreements if appropriate so that contribution withdrawals can continue seamlessly

c.       a list of third-party service providers and utilities

d.      at a minimum, the most recent financial statements

2. Transfer of Funds: The outgoing condominium management brokerage must transfer control of the condominium corporation’s funds within 30 days of the termination date. Ideally, most funds should be transferred within 7-10 days.  This can be done by disbursing the funds to the condominium corporation or transferring them to the new condominium management brokerage.  The outgoing brokerage can keep enough funds to cover outstanding invoices.

3. Return of Property and Documents: All property and documents belonging to the condominium corporation must be returned at no charge. The outgoing condominium manager should keep copies of documents related to their services for the last three years

Cooperation is Important

Cooperation between the outgoing and incoming condominium management teams is essential for several reasons:

• Continuity of Service: ensures that there is no disruption in condominium management services provided to the condominium corporation
• Efficiency: helps the new condominium manager to quickly take over and start working effectively
• Compliance: ensures both incoming and outgoing condominium managers adhere to the guidelines and timelines set out in their service agreements, avoiding any legal or financial issues

Consumer Protection

For individuals who own condominiums, cooperation between incoming and outgoing condominium management teams is crucial for consumer protection.

Cooperation between the condominium management teams facilitates:

Financial Security: timely transfer of funds ensures that the condominium corporation’s finances are secure and accessible and that the corporation’s financial obligations are kept current.

Access to Information: returning all property and documents ensures that the new condominium management team has all the necessary information to continue providing services without interruption. This includes maintenance records, financial statements, and other important documents.

Trust and Transparency: cooperation fosters trust and transparency between the condominium owners and the condominium management teams as well as for the condominium management industry in general. This trust reassures owners that their interests are being safeguarded by condominium management companies.

A smooth transition between condominium managers is beneficial for everyone involved. By cooperating fully, outgoing condominium managers help ensure that the new condominium manager can hit the ground running and continue to provide excellent service to the condominium corporation. This cooperation is not only essential for operational efficiency but also for protecting the interests and investments of condominium owners. Overall, this supports trust of the condominium management industry as a whole.

For more information, please see the Termination of Service Agreement – Condominium Management Information Bulletin.

If you are a condominium brokerage in the midst of transition, please reach out if you have any questions on this topic or other topics related .to condominium management to ddixon@reca.ca.