Terminating a condominium management contract is one of the most consequential decisions a board can make — and one of the most misunderstood. Many boards stay in bad management relationships simply because they don't know how the process works. Here's what you need to know.
Start with the contract itself
Your management agreement is the governing document. Before your board takes any action, read it carefully. Look for the termination clause — it will specify the required notice period (typically 60 to 90 days), any conditions that must be met, and whether there are fees or penalties for early termination.
If your board doesn't have a copy of the current agreement, request one from your management company immediately. You are entitled to it.
Understand "for cause" vs. standard termination
Most management agreements allow termination with notice — no reason required. This is the cleanest path. Some agreements also allow termination "for cause" — meaning the management company has materially breached the contract — which may allow you to terminate without serving the full notice period.
If you believe your management company has breached the agreement, document the specific failures before acting. Consult the corporation's legal counsel before invoking a for-cause termination — the threshold is higher than most boards expect, and a wrongful termination claim is a real risk.
Pass a board resolution
The decision to terminate must be made by a formal board resolution at a duly constituted board meeting. A majority vote of the board is required. The resolution should record the decision, the grounds (if any), and authorize a specific director or officer to deliver the notice of termination.
Do not send a termination notice before the resolution is passed. The sequence matters.
Deliver written notice
Once the resolution is passed, deliver written notice to the management company in accordance with the notice provisions in your agreement — typically by registered mail or email to a specified address. The notice period begins on the date of delivery, not the date of the resolution.
Keep the notice professional and factual. State the effective termination date. Do not include grievances or accusations — those belong in a separate communication if needed at all.
Engage your new management company before the notice period ends
The notice period is your transition window. Use it. Engage your incoming management company as early as possible so they can prepare for the handover, review your corporation's records, and communicate with the outgoing provider.
A well-organized incoming manager will take the lead on the transition — coordinating the records transfer, reviewing outstanding contracts, and ensuring continuity of service for owners.
The records transfer
Under Ontario law, your outgoing management company is obligated to return all corporation records — financial statements, contracts, owner information, maintenance history, insurance documents, and reserve fund studies. This is not optional. If your outgoing provider is uncooperative, your corporation has legal remedies.
Your incoming manager should provide a records checklist and follow up directly with the outgoing provider to ensure nothing is missed.
Communicate with owners
A brief, factual notice to unit owners about the management change is good governance. It reduces confusion, sets expectations, and demonstrates that the board is in control of the process. Your new manager can help draft this communication.
The bottom line
Terminating a management contract is a legal process, not a confrontation. When it's done properly — with a board resolution, written notice, and a well-managed transition — it's far less disruptive than most boards expect.
MVP Condos is a licensed condominium management provider under the CMRAO and has guided dozens of Ontario corporations through smooth, professional transitions. Request a free proposal — we'll walk you through exactly what the process would look like for your corporation.