Condominium Property Act

Condominium Property Amendment Act

Overview

There is a need for clear and modern legislation to support responsible self-governance of vibrant condominium communities and to protect owners of condominiums.

The Condominium Property Amendment Act (CPAA) was passed by the Alberta Legislature in December 2014.  Since then, we’ve been working on the regulations required to bring more than 50 amendments into force.

We recognize the need to get these supporting regulations right for the hundreds of thousands of current and future Alberta condo owners.

First-stage regulations now in effect

 

In October 2017, we announced the first stage of regulations that will better protect condo buyers and owners, as well as the dates the regulations would take effect.

Regulations that took effect on January 1, 2018 have:

  • Broadened the amount of information that developers must disclose to elected boards when the boards take over control of the corporation, such as technical documents and financial information.
  • Expanded the number of agreements that can be terminated by the first elected board of a condo to better protect condo owners from being stuck with a poorly negotiated agreement. The new laws allow for the inclusion of almost any agreement that may be in place during development, including landscaping agreements and maintenance agreements.
  • Formally recognized the ways in which an owner may call special meetings of the corporation. This empowers owners by allowing them to call for special general meetings.
  • Provided the government additional inspection powers and the ability to issue fines to developers, if the rules are not being followed.
  • Increased the penalty for offences, from $15,000 for an individual and $25,000 for a company to $25,000 and $100,000, respectively, or three times the amount gained by the offence, whichever is greater.

Regulations that took effect on April 1, 2018 have:

  • Required developers to provide buyers an occupancy date so they know when their units will be ready, and concrete remedies, including the ability to end a contract, when the unit is not ready on time.
  • Required developers to provide more information to condo buyers, including occupancy dates, materials to be used to finish the condo, and other fees that the developer will charge the purchaser.
  • Increased protection for purchasers’ trust money by requiring it to be held by a lawyer instead of the developer and creating specific rules about how this money is handled.
  • Provided means for condo corporations to recover costs directly from the developer when the developer has deliberately underestimated expenses for things like maintenance and management, during the marketing process.
  • Established rules for notice and options for buyers when changes happen during construction that a buyer did not agree to.
  • Established new rules requiring parking spots for visitors and people with disabilities are listed in condo plans.

Next stages of regulations - governance and dispute resolution

 

The second stage of amendments will improve governance of condominium corporations. Some of the topics that will be addressed in the second stage include insurance requirements, transparency and access to corporation documents, and reserve fund management.

The third stage will see the creation of a condominium dispute tribunal. Albertans want and need a more efficient, less expensive way to resolve condominium disputes than having to proceed through the court system. The dispute tribunal is intended to provide them with that alternative. This stage will include the determination of the tribunal’s jurisdiction and structure.

Consulting for those stages

 

 

Consultations on regulations covering condominium governance and dispute resolution took place over the summer and fall of 2017. These included open houses in July and August, supplemented by an online survey that ran from October 12 until November 10. About 1,100 people attended the open houses and more than 5,400 people participated in the online survey.

 

Feedback from the open houses and the online survey was used to create discussion guides containing policy options on a variety of topics, including:

  • Proxies and voting;
  • Insurance;
  • Meeting notice, rules and condo board accountability;
  • Reserve funds;
  • Condo documents;
  • Sales of condominium parcels following termination;
  • Arrears and Sanctions, Borrowing, and Rental Deposits.

Meetings were held in January and February 2018 with key stakeholders comprising owners groups, lawyers, developers, condominium managers, insurance, real estate agents, and other stakeholders to provide input on the topics in the discussion guides and feedback on potential policy options.

Our goal is to pass regulations covering governance later in 2018 and regulations covering dispute resolution in 2019. For more information on our Condominium Rules consultation, go to condo.alberta.ca.

 

Condo manager education and licensing regulations

When the Condominium Property Amendment Act was passed in 2014, there were also amendments made to the Real Estate Act that assigned the Real Estate Council of Alberta (RECA) of creating an education and licensing program for condo managers.

Service Alberta has worked closely with RECA on the initial stages of development for the licensing model for condominium managers, and will continue this involvement as the project moves forward to draft the rules and education standards to ensure they are appropriate and protect the public interest.

Because the education and licensing program would contain a component on governance, it’s most practical for it to come into force after the second stage of regulations comes into force (tentatively set for later in 2018).

For more information about the project to establish licensing for Alberta’s condominium management industry, please visit RECA's Condominium Manager Regulation.

Additional resources

  • Click here for additional details on the Condominium Property Amendment Act.
  • Click here to download the Condominium Property Amendment Act.
  • Click here for the News Release announcing our consultation (July 20, 2017).
  • Click here for the 2017 Condominium Developer Infosheet.
  • Click here to download the check list and updated consumer tips 
  • Click here to go to the webinar hosted by Service Alberta for condominium developers and lawyers on November 17, 2017 (link goes to YouTube)

Contact

If you have condominium-related questions, please email service.alberta@gov.ab.ca or call the Consumer Contact Centre at 780-427-4088 (Edmonton and area) or 1-877-427-4088 (toll-free in Alberta).

Subscribe for updates by email

If you would like to receive updates on our progress, and learn about opportunities to share your views, you can email us directly at condoreview@gov.ab.ca, or fill out the fields below and click 'Submit'. Thank you.

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