Assessing Whether an Issue is Within a Condominium Manager’s Competence
A condominium manager must operate within their professional competency and the scope of services defined under the Real Estate Act Rules and Condominium Property Act (CPA). If an issue exceeds their knowledge or legal authority, they must escalate it appropriately.
Indicators That an Issue May Be Beyond a Manager’s Competence
Legal Uncertainty: The situation involves bylaw enforcement disputes, contract disputes, or unclear CPA interpretations.
Financial Complexity: Large-scale budgeting concerns, fraud investigations, or reserve fund mismanagement.
Technical or Structural Issues: Engineering concerns, environmental risks, or deficiencies requiring professional assessments.
Conflict of Interest: Situations where the manager's impartiality could be questioned.
The Real Estate Act Rules require condominium managers to act competently and refer matters beyond their expertise to an appropriate professional.
Determining When Brokerage Support is Sufficient vs. When Specialists Are Needed
A condominium manager must evaluate whether the brokerage has the necessary expertise to resolve an issue or whether external professionals (e.g., lawyers, accountants, engineers) should be consulted.
When Brokerage Support is Sufficient
Clarifying CPA and regulatory compliance questions.
Reviewing financial records to ensure proper reporting.
Assisting with standard contract review for service agreements.
Advising on procedural matters such as meeting requirements and voting procedures.
When External Specialists Are Needed
Legal Professionals: Required for litigation, bylaw disputes, or complex compliance concerns.
Financial Experts: Needed for forensic audits, reserve fund studies, or significant financial restructuring.
Building Inspectors/Engineers: Essential for building envelope assessments, structural deficiencies, or insurance claims related to property damage.
Steps for Escalating Complex Issues to the Appropriate Authority
When a manager identifies an issue that requires escalation, they should follow a structured process to ensure it is handled appropriately.
1. Initial Assessment
Gather relevant documents, communications, and background details.
Determine whether the issue falls within the manager’s expertise or brokerage oversight.
2. Consulting the Brokerage
Submit a written summary of the issue to the broker.
Request clarification on regulatory obligations and recommended next steps.
Follow brokerage policies for internal escalation and reporting.
3. Engaging External Specialists (If Needed)
If the brokerage determines the issue requires external expertise, seek board approval before hiring specialists.
Ensure professionals are qualified and licensed to provide services.
Communicate findings and recommendations transparently to the board.
Developing a Decision-Making Framework for Beyond-Scope Issues
A structured decision-making framework can help condominium managers determine when to escalate issues and ensure that proper protocols are followed.
Decision-Making Checklist
Does the issue involve legal, financial, or technical expertise beyond the manager’s qualifications?
Is there a clear regulatory requirement that must be met?
Has the brokerage been consulted, and can they provide adequate guidance?
If external expertise is needed, has the board been informed?
Are all communications and decisions documented for transparency and compliance?
By implementing a clear decision-making process, condominium managers can ensure that complex issues are addressed professionally, efficiently, and in compliance with Alberta’s condominium legislation.
