Balancing Board Direction and Professional Liability: A Growing Issue in Ontario Property Management
Across Ontario, property management has become increasingly complex. Rising costs, increased scrutiny on financials, and more hands-on condominium boards have created a new operational reality: managers must respond quickly to board requests while also exercising professional judgment and protecting the corporation’s long-term interests. One of the most current challenges in the industry is finding the right balance between board direction and the licensed manager’s regulatory responsibility.
Under Ontario’s **Condominium Act** and the oversight of the CMRAO, boards govern and make decisions for the corporation, but licensed property managers are responsible for executing operations professionally and in compliance with legislation. This distinction is critical — and often misunderstood.
Boards today are more engaged than ever, which can be a positive force. Active oversight can improve transparency and financial awareness. However, when engagement turns into direct operational control — negotiating with vendors, directing contractors, delaying compliance work, or bypassing management processes — it can create serious liability exposure for both the corporation and the licensed manager.
A key issue emerging across the province is that while boards have authority to make decisions, the licensed manager often remains professionally accountable for outcomes tied to their licence. This creates risk when management is excluded from operational discussions but is still expected to assume responsibility. For example, if life-safety services, financial processes, or vendor contracts are handled outside of management’s knowledge or coordination, the corporation may unintentionally leave regulatory and insurance liability unresolved.
This is particularly relevant in areas such as fire safety compliance, financial reporting, and vendor procurement. These functions require consistency, documentation, and professional oversight. When processes become fragmented or delayed due to multiple decision channels, the result is often slower execution, increased stress on accounting and operations, and potential compliance gaps.
The solution is not less board involvement — but more structured collaboration. The most successful condominium corporations operate with clear role alignment:
* Boards set direction, policy, and budget priorities.
* Management executes operations using professional expertise and regulatory knowledge.
* Both parties communicate through structured, centralized channels.
Equally important is mutual recognition of liability boundaries. Managers must be able to rely on timely documentation, coordinated vendor engagement, and clear authority to perform their duties. Boards, in turn, benefit from understanding that when operational processes are bypassed or altered outside management’s oversight, liability does not simply disappear — it shifts.
Ultimately, the goal is shared: well-run buildings, stable finances, and protected property values. Achieving this requires trust in professional management judgment, realistic expectations around timelines and capacity, and a unified approach to compliance and operations.
In today’s Ontario condominium landscape, effective property management is not just about maintaining buildings. It is about managing risk, responsibility, and relationships — and ensuring that governance and professional execution work together, not at cross purposes.