Serving on a condominium Board in Manitoba is both a privilege and a legal responsibility. As a director of a corporation, you are bound by The Condominium Act (Manitoba) to act honestly, in good faith, and in the best interests of all unit owners.
While a licensed property management company may be retained to handle day-to-day operations through a management agreement, the Board of Directors remains ultimately responsible and legally liable for ensuring the corporation complies with all statutory, financial, and fiduciary obligations.
Below are the key areas every condominium Board should review annually to protect the corporation and its members.
Each year, Boards should review the annual operating budget and account for expected supplier and service provider cost increases. The Consumer Price Index (CPI) provides a reliable benchmark for inflation. Realistic budgeting prevents shortfalls, special assessments, and service disruptions.
Confirm that contributions to the reserve fund align with the latest reserve fund study requirements under The Condominium Act. The fund must be sufficient to cover major repairs and replacements of common elements. Underfunding increases financial risk and may reduce unit resale values.
Every condominium corporation must complete or update its reserve fund study at least once every five years. A current study ensures that financial planning accurately reflects upcoming capital needs and that the corporation remains compliant with provincial regulations.
Boards must ensure that the condominium’s property insurance coverage reflects the true cost to rebuild. Obtaining a professional insurance appraisal every few years helps maintain adequate coverage in line with rising construction and material costs.
Directors should confirm that the corporation holds comprehensive Directors’ and Officers’ (D&O) liability coverage. This protects Board members from claims resulting from decisions made in good faith while performing their duties. If uncertain about coverage, obtain written advice from the insurer or legal counsel.
Under The Condominium Act, the corporation has a statutory lien for unpaid common expenses, which takes priority over most other claims, including mortgages. Boards must ensure liens are registered promptly and, where necessary, foreclosure proceedings are initiated to protect the financial interests of all unit owners.
A condominium’s financial health, insurance adequacy, and compliance record directly affect unit resale values, mortgage eligibility, and insurance availability. Buyers, lenders, and insurers regularly review these indicators before approving transactions. Strong governance and timely compliance preserve property values and market confidence.
Even when a professional property manager is engaged, the Board must maintain oversight and ensure the manager is fulfilling all contractual and statutory duties. Delegation of daily operations does not transfer legal accountability.
Boards should also verify that their property management company and its representatives are properly licensed with a registered real estate brokerage under the Real Estate Services Act (Manitoba). Licensing status can be confirmed using the Manitoba public licence search. Employing an unlicensed manager exposes the corporation and Board to potential non-compliance and liability.
Serving on a condominium Board carries both rewards and serious legal obligations. Annual diligence in budgeting, reserve fund planning, insurance, collections, and governance ensures the corporation remains compliant and financially secure.
While operational duties can be delegated, the ultimate responsibility for compliance and fiduciary oversight rests with the Board of Directors. This includes confirming that all engaged professionals—lawyers, accountants, and property managers—are duly qualified and licensed. When in doubt, seek professional advice from a condominium lawyer or property manager to ensure all actions align with The Condominium Act (Manitoba) and the corporation’s bylaws.
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