Water submetering continues to be a recurring issue for condominium corporations, and not because it is running smoothly.
We are increasingly seeing corporations trying to manage or unwind water submetering arrangements that were never properly authorized in the first place. In many buildings, the meters are installed and owners are being billed, but the legal f oundation supporting the system is weak, incomplete, or missing altogether.
Submetering installed without declaration authority
A common starting point for problems is the declaration. We regularly see declarations that do not contemplate water submetering, yet the developer installed submetering systems during construction. Disclosure materials may reference submetering in general terms, but the declaration itself, the document that governs the corporation’s authority, is silent.
If the declaration does not authorize consumption based billing, the corporation may not have the legal authority to implement or continue submetering, regardless of the physical infrastructure in the building. Boards are then left administering a system they may not be empowered to operate.
No agreement or assumptions that one exists
Another frequent issue is the absence of a binding submetering services agreement. In some cases, no agreement was ever signed. In others, management is told an agreement exists but no executed version can be produced. Sometimes the only document available is marked as a draft.
Without a properly authorized and executed agreement, the corporation’s obligations are unclear. Termination provisions may not apply. Liability and indemnity protections may be absent. Even the submetering company’s authority to bill owners directly can be open to question.
No authority to enter into the agreement
Even where an agreement exists, authority remains an issue. If the declaration does not permit water submetering, the board may not have had the power to enter into the agreement at all. This raises questions about enforceability, exposure to liability, and whether the corporation can be compelled to continue with the arrangement.
Arrears with no effective collection mechanism
Many declarations do not include a mechanism to collect unpaid water submetering charges from owners. Submetering companies typically bill owners directly, but when payment stops, enforcement is often limited to reminders and late fees. Unlike common expenses, submetered water charges are frequently not lienable, leaving corporations with limited tools.
Water shut off limitations
In practice, submetering companies are often unwilling or unable to shut off water for non payment. Health and safety concerns, the essential nature of water, shared plumbing systems, and potential municipal involvement all limit enforcement options. Arrears can therefore linger with few practical consequences.
Defective and inaccurate meters
We are also seeing more disputes involving inaccurate or defective water meters, including unexplained spikes and discrepancies between bulk meter readings and the total of the sub meters. In some cases, the municipality becomes involved, adding further complexity.
What boards should do now
Boards and managers should treat water submetering as a governance issue, not just an operational one. Corporations should review their declarations to confirm authority, confirm whether a valid agreement exists, understand how arrears are addressed, and investigate meter accuracy issues early. Identifying gaps now can prevent much larger problems later.
