Condo Mediation, Arbitration or the CAT? How Ontario Condo Boards Choose the Right Dispute Route

By Eric Plant, Director, RCM, MBA

Why the dispute route matters

Most condo disputes start with a phone call to the management office: a dog that keeps barking, a parking spot used for storage, an owner who renovated without approval, or an owner asking for records the board thinks are confidential. Most are settled with a conversation or a well-written letter. Some are not, and when a dispute escalates, the board's first real decision is where it should be resolved.

Under Ontario's Condominium Act, 1998, that is not a free choice. The subject matter of the dispute decides the forum. Some disputes must go to the Condominium Authority Tribunal (CAT). Others must go through mediation and then arbitration under section 132 of the Act. A narrower group belongs in the Superior Court of Justice. Starting in the wrong place can cost the corporation months of time and legal fees before anyone looks at the actual problem.

This guide explains how the three routes work, what each one costs, what changes in 2026 and 2027, and a simple checklist your board can use before it files anything. It is general information for Ontario condo boards, not legal advice, so involve your condo lawyer before you start or respond to a formal proceeding.

The three formal routes at a glance

What the Condominium Authority Tribunal can hear

The CAT is an online tribunal administered by the Condominium Authority of Ontario. Both sides can use it: a corporation can apply against an owner, occupier or mortgagee, and an owner can apply against the corporation or another owner. Its jurisdiction is limited to the disputes listed in Ontario Regulation 179/17. Today those are:

• Records under section 55 of the Act, including requests to examine or copy records and the prescribed request process.
• Pets and other animals, where the dispute is about a provision of the declaration, by-laws or rules.
• Vehicles, parking and storage, from cars and bicycles to items stored in parking or locker spaces.
• Nuisances covered by subsection 117(2) of the Act and section 26 of the General Regulation, such as noise, odour, smoke, vapour, light and vibration, plus provisions governing any other nuisance, annoyance or disruption.
• Indemnification or compensation provisions (commonly called chargebacks) that relate to one of the disputes above.

There are important exceptions. The pet, vehicle, parking, storage and nuisance categories do not apply where the dispute also involves a condition or activity likely to damage property or injure someone (subsection 117(1)), a section 98 alteration agreement, or an electric vehicle charger installation agreement. The CAT also cannot deal with liens for unpaid common expenses, which follow their own process under the Act, or questions of title. An application must normally be filed within two years after the dispute arose.

How a CAT case runs

The process has three stages, each with its own fee paid by the applicant:

1. Stage 1 – Negotiation ($25 filing fee). The parties exchange messages and offers on the CAT's online system.
2. Stage 2 – Mediation ($50). A Tribunal member acts as mediator and helps the parties look for a settlement.
3. Stage 3 – Tribunal Decision ($125). With the mediator's permission, the case moves to an adjudicator, who reviews evidence and submissions and issues a binding decision.

The full process costs $200 in Tribunal fees, according to the CAO's description of the Tribunal process. At the end, the CAT can order a party to comply, to take or stop an action, and to pay compensation for damages (currently up to $25,000). It can also order costs, and a penalty of up to $5,000 where a corporation has refused access to records without a reasonable excuse. The losing party is usually ordered to reimburse the winner's CAT fees, and legal costs can be ordered, particularly when a party's conduct was unreasonable or caused delay. The CAT cannot order anyone to vacate a unit permanently, and its decisions are published in a free, searchable online database, which is worth remembering before your corporation takes a hard line.

What changes on December 31, 2026 and July 1, 2027

The CAO has announced two sets of changes that boards should plan for now:

• December 31, 2026: owners requisitioning a meeting must use a new prescribed form, boards will have 20 days to respond to a requisition, boards must give reasons when they reject one, and owners get a set period to revise and resubmit.
• July 1, 2027: the CAT will be able to hear disputes about requisitioning and calling owners' meetings, including whether AGMs are held when required, whether notices go out on time with the required content, and whether requisitioning owners should be reimbursed their reasonable costs. Disputes about what happens at the meeting itself, voting, ballots and proxies stay outside the CAT. The maximum compensation the CAT can award rises to $50,000.

In practice, this means meeting notices and requisition responses will soon be reviewable by a low-cost tribunal. Boards that already follow a documented meeting timeline will feel little difference; boards that improvise will be exposed.

Mediation and arbitration under section 132

If a disagreement between the corporation and an owner is about the declaration, by-laws or rules and the CAT cannot hear it, section 132 applies. Every declaration is deemed to require the parties to submit that kind of disagreement to mediation and then, if mediation fails, to arbitration under the Arbitration Act, 1991. Common examples include short-term rental and leasing restrictions, unauthorized renovations, use of exclusive-use common elements, and chargebacks that are not tied to one of the CAT categories.

Section 132 also applies to certain agreements, so disputes under them follow the same path:

• agreements between the declarant and the corporation, including disagreements about the declarant's budget statement in a new building;
• agreements between two or more corporations, such as shared facilities agreements;
• section 98 agreements with owners about changes to the common elements; and
• the corporation's agreement with its condominium management provider or condominium manager.

How the section 132 process works

The parties choose a mediator together. The mediator's job is to confer with both sides and try to reach a settlement. If the matter settles, the mediator prepares a written record of the settlement, which becomes part of the agreement or matter in dispute. If it does not, the mediator issues a notice that the mediation has failed, and the disagreement moves to arbitration 30 days later. If the parties never manage to select a mediator, arbitration follows 60 days after the disagreement was submitted to mediation.

Mediator fees are split as the settlement says or, if mediation fails, as the mediator specifies in the failure notice. Arbitration is a private hearing before an arbitrator whose award is binding, and arbitrators can award costs. Unlike the CAT, there is no fixed fee schedule, so ask for written fee estimates and a proposed timetable before you commit. Section 132 is also a precondition to court in most cases: under section 134, a person cannot apply to court for a compliance order until they have tried the mediation and arbitration processes that section 132 requires.

Choosing a condo mediator in Toronto

There is no special licence for condo mediators, so the board's choice matters. Look for:

• experience with the Condominium Act, 1998 and with condo corporations as parties, not just general civil disputes;
• clear neutrality, with no existing relationship with the board, the owner or either side's lawyer;
• a written mediation agreement covering fees, cancellation, confidentiality and who will attend;
• a format that suits the dispute, whether in person, online or shuttle mediation where the parties stay in separate rooms; and
• professional standing, for example a designation from the ADR Institute of Ontario or the ADR Institute of Canada.

Before the session, the board should pass a resolution confirming who attends for the corporation and the limits of their authority to settle. A mediation where nobody can say yes rarely ends well.

When court is the right forum

Court is usually the slowest and most expensive option, but some situations need it. A corporation, owner or mortgagee can apply to the Superior Court of Justice under section 134 for an order enforcing compliance with the Act, the declaration, the by-laws or the rules. Court may be the right forum when:

• an owner or occupant is creating a condition or carrying on an activity that is likely to damage property or injure someone, which is excluded from the CAT;
• the corporation needs urgent interim relief, such as an injunction, before a mediation could even be scheduled;
• section 132 mediation and arbitration have been completed without obtaining compliance; or
• the issue involves title to property or another matter that neither the CAT nor section 132 can resolve.

Court applications for matters within the CAT's jurisdiction are not available under section 134, so a board cannot skip the Tribunal by going straight to a judge.

A decision checklist for boards

Before the board files, responds or instructs counsel, work through these questions at a properly constituted board meeting and record the decision in the minutes:

1. What exactly is the dispute about? Identify the specific section of the Act, article of the declaration, by-law or rule involved.
2. Is it on the CAT's list? Records, pets, vehicles, parking and storage, nuisances and related chargebacks generally go to the CAT, and section 132 does not apply to them.
3. Does an exception apply? A safety risk under subsection 117(1), a section 98 agreement, an EV charger agreement, a common expense lien or a title issue takes the matter out of the CAT.
4. If not the CAT, is it about the governing documents or a listed agreement? If so, it goes to section 132 mediation and then arbitration.
5. Is it urgent or dangerous? If so, get legal advice about going to court.
6. Is the file complete? Gather the notices, warning letters, incident logs, photos, complaint records and board resolutions. Tribunals and arbitrators decide on evidence, not on frustration.
7. What is a realistic outcome? Compare the cost of each route with the value of the issue, and consider an early settlement offer.
8. Who will speak for the corporation? Confirm who will represent the corporation and what authority they have.

Many disputes never need a formal route at all when the first steps are handled well. Our guides to enforcing condo rules and by-laws fairly and consistently and resolving resident conflicts before they escalate cover that earlier stage.

How your property manager supports the board

Directors are volunteers, and a single contested file can absorb weeks of their time. An experienced condo property management team in Toronto keeps the corporation's records in order, sends consistent compliance letters, tracks deadlines, prepares the evidence package, and coordinates with the corporation's lawyer so the board only makes the decisions that are truly its own. You can see how we handle governance, compliance and owner communication on our services page. If your board is reviewing how disputes are handled in your building, you can also request a proposal from Brilliant Property Management.

Frequently asked questions

Does the Condominium Authority Tribunal handle every condo dispute?

No. The CAT hears records disputes; pets and animals; vehicles, parking and storage; noise, odour, smoke, vapour, light, vibration and other nuisances; and related indemnification or chargeback provisions. Most other disagreements about the declaration, by-laws or rules go to mediation and arbitration under section 132.

How much does it cost to bring a case to the CAT?

Tribunal fees are $25 to file, $50 to move to mediation and $125 to move to a Tribunal decision, or $200 in total. Legal or professional fees are separate, and the losing party is usually ordered to reimburse the winner's Tribunal fees.

Is mediation mandatory for Ontario condo disputes?

For disagreements between the corporation and an owner about the declaration, by-laws or rules that fall outside the CAT, the Condominium Act deems every declaration to require mediation and then arbitration. In most cases, these steps must be tried before a court compliance application.

What changes for condo boards on July 1, 2027?

The CAT will start hearing disputes about requisitioning and calling owners' meetings, including AGM timing and notice requirements, and the maximum compensation it can award will rise from $25,000 to $50,000.