Condominium management provider licence

This licence matters to a buyer of a property management firm that serves condominium corporations. The Condominium Management Regulatory Authority of Ontario says all businesses that provide condominium management services in Ontario must hold one.

What the Act says about a sale

A licence is not transferable (s. 38(2)). A provider that is a corporation or partnership must not change its officers or directors without the registrar’s prior consent (s. 45(3)). A corporate provider must notify the registrar within 30 days after an issue or transfer of equity shares that gives a person a share of beneficial ownership or control at the level set in s. 47, or increases a holding already at that level. The provider must designate a licensed manager as principal condominium manager and tell the registrar within five days of a change (s. 49(1)).

What to ask

• Whether the buyer will be the licensed entity, since the licence cannot be transferred.
• Who the principal condominium manager is, and whether that person stays.
• Whether the written contracts with each client, required by s. 48, are in place.

See buying a property management firm and licence re-application.