CONDO
BOARD WARFAIR? PART ONE: “DO OWNERS GET AND/OR NEED PROTECTION”?
Charles Hanes - July 15, 2009
Well of all people in the world to have this happen to I’m amazed that it falls right
into my lap. I’ve been committing to get back into writing on this blog but, quite
frankly, it has been a challenge to try to find something positive to write about.
After almost 30 years in the Toronto condo market I can pretty much say that I’ve
seen it all! In the past couple years, after turning away from selling condos to
people to becoming their agent and protect their best interests I’ve just become so
disillusioned with what’s been going on in Toronto’s condo market.
Over this time period I seen “the movers and shakers and loveable horse thieves”
(and some not so loveable horse thieves) of this industry come and go, leaving their
historic residue in their wake!
I don’t want to get off target here so I’ll avoid commentary on the startling
percent of this market that is just downright bad, from a construction point of view.
Worse is when a board is formed and that board proves inept, or worse in bed with the
developer that sold it as a presale (older “resale” buildings have their unique
night mares attached to them as well).
There are examples of poor original building like 1001 Bay St., which I sold as an on the
floor sales rep and which we sold out in 9 days (4 ½ week-end days only) that, over the
years has taken on a sound board and ended up a good condo choice. Good management
outweighs good construction in many cases.
I have to disclose that I’ve had issues with one particular Property Management
Company “Brookfield”, specifically with it’s vice president Mr. Zuliani. I
have had very limited exposure to him however, on our maiden encounter, while trying to
stipulate for the record at the “turn over meeting” that a sound board should
always terminate the Property Management Agreement and bring in their own property manager
who is loyal only to the board of directors.
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College Park is a
walking dichotomy resulting from a board’s failure to take even the most logical
first step which is bringing on a property manager loyal to only them! The developer hired
the property manager and the property manager wants to get hired on the developer’s
next building so at bare bones minimum one has got to expect a “Conflict of
Interest”. I do have issues with Brookfield (which this series of articles will set
out) but this professional advice is for any board of any condo so it is not personal.
Obviously Brookfield has taken it personal at College Park and this my friends is what
this series of articles are all about.
I originally locked horns with Brookfield when they had a similar relationship with
another developer who managed to get away with borderline sin when it came to living up to
their responsibilities under the Tarion Warranty and/or builder warranties. At the turn
over meeting I stood up and announced that based on my almost two and half decades (at the
time) of Toronto condo experience that I recommended that we replace Brookfield as our
property manager. The Brookfield representative (vice president Mr. X Zuliani) became
enraged and acted in a manner that reflects terribly negatively onto their company and
certainly on their true lack of respect for the people that pay for their services.
Well, Brookfield won out that night as the developer had “friends” on the newly
formed board. The owners received a rather repulsive representation from Brookfield while
costly deficiencies were never collected on. Our monthly maintenance fees skyrocketed to
almost 100% more than set out in the documents.
As usual, finally after the first year wound down (you can’t fire a sitting board
without really jumping through hoops – your only hope is to replace them at the
annual elections) we replaced them. Oh course this is all based on a majority vote of
owners, most of whom really don’t care and don’t attend these meetings.
We immediately fired Brookfield (who mysteriously “found” some money in our
budgets when we notified them that we were auditing our books). The punch line, way back
at the “turn over meeting” on that very first night, the true fiber of Mr.
Zuliani came through when he invited me outside for a fist fight! At almost 60, I still
get the urge to respond physically but I’m doing much better now than when I was
younger.
I’m covering all of this, not to malign Brookfield Residential Services, but rather
to give you, the general public, my clients, my readers around the world, the basis on
which our dilemma rests today. |
