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Toronto Condo Corporation’s $324,000 Fraud Loss: A Warning To Ontario Owners

bob@aaron.ca (Bob Aaron) — Thu, 13 Aug 2026 14:13:30 GMT

A Toronto condominium corporation’s experience with fraudulent guaranteed investment certificates is a costly warning to every condo board entrusted with owners’ money.

Toronto Standard Condominium Corporation 2150 consists of 304 residential units at 126 Simcoe St.

According to a notice to owners issued by the corporation last month, it was the victim of a “sophisticated investment fraud” in February 2025.

The board had approved the investment of approximately $324,000 of the corporation’s operating surplus in guaranteed investment certificates with what the directors believed, based on professional-looking documentation, was a well-established Canadian financial institution.

It later discovered that the funds had been diverted to an account operated by people impersonating the institution.

The matter was reported to law enforcement. As a result of recovery efforts pursued by the corporation and with the assistance of its advisers, a “substantial portion” of the loss was recovered.

A claim to the corporation’s insurers for the remaining funds was denied and the board is pursuing “other avenues” to recover remaining funds. The notice to owners said that the corporation is bound by confidentiality obligations and cannot disclose further details of its recovery efforts.

The corporation’s auditor referred to the loss at the annual general meeting in May 2026, more than a year after the event. The board undertook to provide owners with further information and did so last month. The July letter to the owners issued by the board does not identify the financial institution, the fraudsters, the recipients of the money, the building’s insurer, how partial recovery was made, why the loss was not covered by insurance, or the amount still missing.

The stolen funds came from an operating surplus and did not affect the reserve funds or money required for daily operations. The corporation says it remains financially stable and it has not issued a special assessment because of the loss.

Ontario condominium corporations are required by law to carry property insurance for full replacement cost, commercial general liability insurance, and directors’ and officers’ liability insurance.

I advise condominium corporations that they should also carry crime and fidelity insurance, environmental liability coverage, equipment breakdown insurance (for items like elevators), umbrella or excess liability insurance, and legal expense coverage.

In the wake of increasing frauds like the one that hit the Simcoe St. building, fidelity coverage has become important for risks such as theft by employees or property managers, forged cheques, electronic funds fraud, computer fraud, and social engineering fraud, which is the coverage needed for protection against the fake GIC scenario.

Last week I contacted Dayle Semple, an insurance account executive at Hub International Ontario, to ask what he recommends to his condominium corporation clients. Semple has been the president of his own condo board for 14 years.

In an email, he wrote that “cyber liability insurance is no different from other insurance products. In general — broader, more robust protection equates to a higher premium. Social engineering (fraud) can be included as part of your cyber liability protection. Discussing your organization’s exposures with a broker that specializes in cyber liability coverage can assist you with selecting the right coverage and policy limits to protect the organization.”

In other words, when it comes to insurance, you get what you pay for. It’s important for condominium boards to conduct an annual review of the exposure and coverage the building has, and the coverage it does not have.

Semple also recommends that condo boards use a professional investment company to manage and invest the building’s funds. Along with their fee comes a strong degree of protection and the assumption of the risk that would arise if the board manages its own investments.

Last week I emailed Maple Ridge Community Management, the property manager of the Simcoe St. condo, asking a dozen questions about the incident.

I received a prompt reply from Leza Blair, the company’s vice-president of operations. “I have forwarded same to the appropriate party should a response be forthcoming,” Blair wrote.

As of publication time, I had not received a further response.

Condominium boards should review their insurance coverage annually with a broker who understands condominium risks. They should also establish who may — and who may not — invest funds, which institutions may be used, how investments may be purchased, and whether only a fund manager should be entrusted to manage condominium money.

The Simcoe St. investment fraud is an important lesson for condominium corporations everywhere in Ontario.

Bob Aaron is a Toronto real estate lawyer and chair of the Tarion consumer advisory council. He can be reached at bob@aaron.ca . Visit his website at aaron.ca.

Canadian Employment Data Much Stronger than Expected (Again)

dave@morplan.ca (David Larock) — Mon, 10 Aug 2026 14:47:01 GMT

Last week Statistics Canada confirmed that our economy added a whopping 75,000 new jobs last month, well above the consensus forecast of 20,000.

The Best Deals Right Now Aren't Where Buyers Are Looking

john@realosophy.com (John Pasalis) — Thu, 06 Aug 2026 19:02:32 GMT

Buyers keep asking me where the deals are in this market. They're looking for the answer in the aggregate numbers: average prices, months of inventory, sales counts. That's the wrong place to look.

GTA Housing Market Stalls Despite Spring Optimism

john@realosophy.com (John Pasalis) — Wed, 05 Aug 2026 21:06:10 GMT

GTA Housing Market Update – July 2026

Can Your Condo Board Police Who Sleeps in Your Home? This Mississauga Building Has a Rule That Does.

bob@aaron.ca (Bob Aaron) — Tue, 28 Jul 2026 14:09:19 GMT

Imagine owning a condo and being told that your child or parent may sleep on your sofa or in the empty second bedroom Friday night, but not Saturday, and not again in the same month, unless the property manager or board gives written permission.

That is the apparent effect of an “overnight visitors” rule adopted by Peel Condominium Corporation No. 485 in May 2023. The building has 341 dwelling units and is located at 135 Hillcrest Ave. in Mississauga.

The two-page rule passed three years ago defines visitors as non-residents of the building. It says visitors may stay for a maximum of one overnight visit per calendar month. A longer or second visit requires advance written permission, and consecutive overnight stays are prohibited without approval.

Permission rests in the “absolute and sole discretion” of the property manager or board. An unauthorized visitor may be treated as a trespasser, immediately removed, and the corporation’s enforcement expenses and legal fees may be charged to the owner’s unit.

The rule says the restrictions are needed to prevent “overcrowding of units and the unreasonable overuse of the common elements, including … utilities, and parking space(s).”

But can a condominium corporation legally regulate who sleeps in an owner’s privately owned home — and how often?

I phoned the property manager, Ace Condominium Management, and sent four emails, on July 16, 17, 19 and 20, to property management and a condo board member for their comments and clarifications on the rule, but I did not hear back by publication time.

Condominium ownership requires owners to surrender some of the freedom enjoyed by owners of detached houses.

Section 58 of Ontario’s Condominium Act authorizes boards to make rules governing units and common elements to promote safety, security and welfare of the owners and the property, or to prevent unreasonable interference with the use and enjoyment of the units or common elements.

But the rules must always be reasonable and consistent with the act, the declaration and the bylaws.

That requirement cannot be satisfied merely by inserting the words “security,” “overcrowding” or “welfare” into the introduction to a rule. There must be a rational connection between the problem and the restriction imposed.

There are many circumstances in which a longer visit may be necessary or desirable. Consider an owner whose adult child comes from away for a weekend. A grandparent who wants grandchildren to stay during March break. An elderly owner who needs a relative’s assistance after surgery. A separated parent whose child stays overnight on weekends. A couple who spend weekends together but otherwise live separately. A child living with a separated parent under a court order. A spouse or partner who lives elsewhere for employment reasons.

None of those situations necessarily creates overcrowding or an unreasonable burden on the common elements.

In passing rules, a board must always act in good faith and comply with the legislation. In my view, a court would want evidence explaining why one overnight stay is harmless but two are not.

The rule also creates potential problems under Ontario’s Human Rights Code, leaving open the possibility that the building’s discretion could violate protected grounds under the code.

The “absolute and sole discretion” wording in the rule leaves open the possibility of arbitrary, discriminatory or bad-faith decisions. At minimum, permission requests must be assessed reasonably, consistently and with proper attention to human-rights obligations.

The trespass provision is also troubling. I don’t know how an invited guest can simply be transformed into a trespasser because he or she sleeps in a privately owned unit for a second night.

The threatened chargeback of all enforcement expenses and legal fees is problematic. The authority must exist in the act or the condominium documents, the underlying rule and enforcement must be lawful, and the amounts must be properly recoverable.

In my opinion, the building’s overnight guest rule is intrusive, improper and vulnerable to challenge. A board concerned about overcrowding should regulate overcrowding. If parking is the problem, regulate parking. If residents are operating short-term or Airbnb rentals, enforce valid short-term rental restrictions.

The solution should address the actual harm, not regulate ordinary family and social life.

Owning a condominium means accepting reasonable community rules. It should not mean asking the property manager for permission before inviting family to spend the weekend.

Bob Aaron is a Toronto real estate lawyer and chair of the Tarion consumer advisory council. He can be reached at bob@aaron.ca . Visit his website at aaron.ca.

Canadian Inflation Was Cooler Than Expected in June

dave@morplan.ca (David Larock) — Mon, 27 Jul 2026 14:26:51 GMT

Last Monday Statistics Canada released our latest Consumer Price Index (CPI) inflation data. It confirmed that inflation cooled by more than expected last month.

The Bank of Canada Remains in Neutral

dave@morplan.ca (David Larock) — Mon, 20 Jul 2026 16:07:18 GMT

The Bank of Canada (BoC) held its policy rate steady last week, as expected

When Your Own Government Outbids You for a Home

john@realosophy.com (John Pasalis) — Tue, 14 Jul 2026 15:27:16 GMT

Everyone is arguing about whether Ottawa and British Columbia will overpay. That's the wrong debate. Ask instead what it means for a household to be outbid by its own government.

How Will the Bank of Canada React to the Latest CUSMA News?

dave@morplan.ca (David Larock) — Mon, 13 Jul 2026 15:41:41 GMT

When the Bank of Canada (BoC) meets this Wednesday, I expect it to focus on two competing risks which have continued to roughly offset each other.

The GTA Real Estate Market Is Still Bouncing Along the Bottom

john@realosophy.com (John Pasalis) — Tue, 07 Jul 2026 10:30:00 GMT

GTA Housing Market Update – June 2026