Who Really Runs Your Condo Corporation? The Hidden Dynamics of Power, What Every Owner Should Know
When you buy a condominium, you’re not just buying a home. You’re entering into a unique legal arrangement—one that allows multiple unit owners to collectively govern their building through a corporation. Decisions are made by a volunteer board of directors, elected by the owners. In the eyes of the law, it is the board that holds the authority and the responsibility.
But here’s the question every owner should ask: Who really runs the show?
The Volunteer Board
Serving on a condo board is, for most people, a volunteer role. Directors are your neighbours. They may have full-time jobs, families, and limited familiarity with the complex legal and financial obligations of running a corporation. They mean well, but they are often stretched thin.
This is where the dynamic begins to shift.
The Power Behind the Board
In practice, many boards rely heavily—sometimes almost exclusively—on two key professionals: the property manager and the corporation’s lawyer. These are the people who attend meetings, draft documents, interpret rules, and advise on decisions. And because board members often defer to their expertise, the manager and lawyer can end up wielding significant influence over the corporation’s direction.
On the surface, this makes sense. They are the professionals. They are paid to know the rules. But this arrangement also creates a fertile ground for conflicts of interest.
Where Conflicts of Interest Arise
Property managers and lawyers have their own interests. They are not volunteers; they are service providers. Their livelihood depends on maintaining their role with the corporation. And in many cases, the lawyer is someone the manager already works with regularly—someone brought in through an existing relationship, not through an independent search.
When a decision needs to be made, the board may defer to their advice. And if that decision later proves to be problematic—say, it leads to a dispute with an owner or escalates into litigation—the manager and lawyer can simply say, “The board made the decision.” The paper trail will show a motion, a vote, and a resolution. The board appears to be in control.
But were they truly informed? Did they understand the risks? Or were they guided down a path that served the interests of the professionals more than the owners?
The Financial Incentive
Let’s be honest about what drives professional service providers: money. Lawyers bill by the hour. Managers are paid for their time and expertise. Lawsuits are expensive, and they generate significant legal fees. If a condo corporation loses in court, the costs don’t disappear—they are passed on to the owners through a special assessment or increased common expenses.
This creates a troubling dynamic. A lawsuit can be framed as “defending the corporation’s interests” when, in reality, it may be driven by a lawyer’s advice to take a hard line—advice that generates billable hours regardless of the outcome. And because the board relies on that advice, they may not question whether litigation is truly in the best interests of the owners they represent.
Can you see how a lawsuit might be encouraged?
Not maliciously, perhaps. But the incentives are aligned in a way that can lead to decisions that benefit the professionals more than the corporation itself.
What Owners Should Watch For
If you are an owner—or worse, an owner in dispute with your corporation—it’s important to understand these dynamics. Here are a few questions to consider:
- Who is really driving the decisions in your corporation?
- Is the board receiving independent advice, or are they relying solely on the manager and lawyer?
- When legal action is threatened or taken, has the board truly considered the cost to owners?
- Is there a process for reviewing legal expenses and challenging decisions that seem excessive?
A Cautionary Tale
In my own case, we watched as our corporation—advised by its manager and lawyer—pursued a lien against our unit over a dispute that should never have gone to court. The costs mounted. The board, following professional advice, refused to back down. And when we finally won in court, the corporation’s legal fees were passed on to all owners through a special assessment.
The lawyer was paid either way. The manager kept their job. And the owners—including us—footed the bill.
Why I Wrote Condozilla
Stories like mine are more common than they should be. That’s why I wrote Condozilla—to pull back the curtain on what really happens when a condo corporation turns its legal power against an owner.
Condozilla takes you on the journey of Clara and her mother as they navigate the legal system without a lawyer, fighting to save their home from an unjust lien. It’s a realistic portrayal of the pressures owners face, the conflicts that lurk beneath the surface, and the courage it takes to fight back.
Because when you understand how the system works, you’re better equipped to protect yourself within it.
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