NOWA, your trusted ally under the Condominium Act

First adopted in 1967, Ontario’s Condominium Act, 1998 came into force in 2001, replacing the earlier legislation to better address the evolving needs of condominium communities. It aims to protect co-owners’ rights, promote transparent and fair governance, ensure equitable cost-sharing, and support informed participation and efficient dispute resolution within a condominium community.

In this article, we will address:

1. How water damage prevention is a way to avoid non-compliance consequences
2. What are the key obligations for condominiums
3. How NOWA helps comply with Ontario’s Condominium Act
4. Why NOWA is your proactive solution

Water damage prevention:
a way to avoid non-compliance consequences

In addition to protecting against damage, water leak prevention systems are also a way to comply with the law. Failure to comply with the Act’s requirements can lead to:

• legal action (small claims court, Condominium Authority Tribunal)
• fines, liens, or forced sale of a unit
• restrictions on voting or using amenities

Key obligations for condominiums

The Act comes with its share of obligations for co-owners and condominium associations. It imposes several, including the following.

Duty to maintain the unit

Owners are responsible for maintaining their own units in good condition. If water damage results from negligence, the owner can be liable for damages caused to their unit, neighbouring units, or common elements.

Duty to repair after damage

The owner is usually responsible for repairing their unit after damage, unless the declaration says otherwise. The condo corporation is generally responsible for repairs to the common areas, including in the event of damage caused by an incident such as water damage.

Mandatory insurance

The condominium corporation must obtain and maintain insurance against the usual risks associated with a residential building, including water damage. The condo corporation must insure the building, including the interior of the units, in their original condition.

Responsibility for deductibles

If water damage originates from a unit and the damage affects other units or common elements, and the condo’s insurance deductible is triggered, the unit owner may be liable for up to the full deductible amount, even if they were not negligent (if the declaration or by-laws allow it).

Transparent communication

The Condominium Act guarantees access to condo records and information. Owners, purchasers, and mortgagees of a condominium unit have the right to request access to the corporation’s records. They can also ask for copies of these records.

How NOWA helps comply
with the Condominium Act

NOWA water damage prevention systems can play a critical role in helping condominium corporations and unit owners comply with their legal obligations under the Act.

Fulfilling maintenance and repair duties

Early detection of leaks helps owners and corporations take immediate action to prevent damage. NOWA also helps prove due diligence in maintenance efforts and reduces the likelihood of neglect leading to liability for damages.

NOWA systems support maintenance and repair duties, help demonstrate due diligence, and reduce liability risks for owners and corporations.

Supporting compliance

NOWA water leak prevention systems help owners comply with rules around plumbing, water use, and leak prevention. Some corporations even mandate such systems in vulnerable areas (e.g., laundry rooms, under sinks, near water heaters).

NOWA systems support compliance with rules by helping condo owners meet requirements and by aligning with mandates in high-risk areas.

Minimizing disputes

NOWA prevention systems contribute to avoid disputes between neighbours over water damage liability. They also support good governance and help build a stronger case for negligence defense if damage does occur.

NOWA prevention systems help minimize neighbour disputes over water damage and strengthen the defense against negligence claims.

Improving insurability

Water leak prevention systems protect insurability, which safeguards the corporation’s assets. Insurers are increasingly recommending the installation of prevention solutions; in some cases, it is even a condition for insurability. NOWA systems are the most recommended by insurers. 

Increasingly required and recommended by insurers, NOWA water damage systems protect insurability and safeguard the corporation’s assets.

Reducing deductibles

NOWA systems protect against damage, avoiding an insurance claim altogether. They prevent the owner from being charged with the deductible, which in the case of water damage may total thousands of dollars. They lower risk exposure for both owner and condo corporation.

NOWA reduces insurance claims, minimizes deductibles, and lowers risk exposure for both owners and condominium corporations.

Reducing premiums

NOWA systems often lead to reduced premiums. They help maintain access to affordable insurance, which is required under Ontario’s Condominium Act, 1998. They also support the corporation’s fiduciary duty to protect owners’ financial interests.

With NOWA, you reduce pressure on both individual and collective premiums and help fulfill the corporation’s duty to protect owners’ financial interests.

Simplified management

Thanks to NOWA, alerts are sent in real time and the portal is intuitive, thereby reducing emergency calls. Additionally, all information (interventions, status, history) is centralized and accessible. NOWA contributes to fulfilling the obligation of transparent communication required by law.

NOWA simplifies the daily management of condominium corporations and supports legally required transparent communication.

Clear return on investment

There are on average 5 water damage incidents per year in a typical 100-unit building, each costing about $19,000. Therefore, the condominium corporation and insurers must pay approximately $95,000 annually to cover these expenses. Additionally, each condo unit faces a special assessment of around $1,000. NOWA prevention products quickly pay for themselves and provide a clear return on investment.

Every dollar invested in NOWA products generates real and measurable savings starting from the first year.

NOWA, your proactive solution

NOWA enables condominium corporations to better comply with Ontario’s Condominium Act, 1998 while also protecting owners and saving them money.

Discover NOWA 4S, the best protection against water damage for condominiums in Ontario.

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