Condominium Property Amendment Act

Overview of Key Changes

The changes set out in the Condominium Property Amendment Act, will:

1. Improve protection for buyers by:

  • mandating the appointment of an interim board to run the affairs of the corporation while the developer owns a majority of units;
  • strengthening the Province’s power to inspect, investigate and enforce rules respecting condominium sales;
  • expanding purchase disclosure information  to include:
    • a statement setting out a fixed date or range of dates, including a final date, by which the unit must be ready for occupancy
    • a budget or proposed budget for the corporation
    • notice of material changes to the purchase agreement or other required information
    • summary of findings from a Building Assessment Report prepared for existing buildings converted to condominiums
    • a copy of the home warranty insurance contract under the New Home Buyer Protection Act, where the corporation is or will be named as the insured

2. Improve protection for existing owners by:

  • limiting the circumstances in which a board may impose a special levy and requiring boards to provide owners key information, in advance, pertaining to an impending levy;
  • restricting the registration of a caveat against an owner’s title for unpaid contributions to only those contributions permitted under the Act. This means that a charge to an owner’s unit for monetary sanctions imposed under a bylaw or other debts claimed by a corporation may only be registered against a unit title by caveat if the sanctions or debts are found by a court to be valid but remain unpaid;
  • capping the expenses that may be included in the caveat in connection with the preparation, registration, enforcement and discharge of a caveat;*
  • limiting the amount of monetary sanctions that can be imposed in accordance with bylaws*; and
  • limiting the circumstances under which an owner’s right to vote may be suspended.

3. Enhance board transparency and accountability by:

  • requiring a board to hold a special general meeting if requested by 15% or more of the owners;
  • requiring a board to notify owners of key changes to the corporation’s insurance policy, including changes to deductibles, property replacement cost value and any permitted exclusions;
  • requiring a board to provide a minimum 14-day notice of a meeting of the owners and include copies of financial statements, the annual budget and annual report on the reserve fund;
  • ensuring rules adopted by the board are reasonable and consistent with the Act, regulations and bylaws, and are properly disclosed to owners and tenants

4. Allow for efficient governance by:

  • enabling directors to participate in board meetings electronically;
  • enabling certain types of votes to be conducted electronically*;
  • validating “show of hands” voting and clarifying procedures for voting in writing or at general meetings;
  • enabling certain agreements entered into by the developer to be cancelled within one year of aboard being elected
  • expanding the permitted uses of the reserve fund to allow for payment of a reserve fund study and report or other expert report, and any improvements required by law;
  • prescribing maximum fees that can be charged for corporation documents*; and
  • clarifying insurance, maintenance and repair obligations of the corporation and unit owners*. 

5. Raise standards in Alberta’s condominium management sector by:

  • designating the Real Estate Council of Alberta (RECA) as the regulator of condominium managers; and
  • enabling RECA to establish licensing requirements for condominium managers, including education and training requirements.

6Enhance dispute resolution by establishing the framework for a new tribunal that will hear and settle a variety of disputes:

  • the tribunal will:
    • be an affordable and efficient forum (or decision maker) for certain types of condominium disputes between boards owners, occupants and other interested parties;
    • operate under rules and procedures set out in the regulations, to ensure hearings are fair and efficient;
    • operate in a limited geographic area (e.g. Edmonton or Calgary) during a pilot phase;
    • be expanded later to hear a wider range of disputes in a greater number of locations across the province;
  • Courts may continue to hear certain disputes that fall outside the tribunal’s jurisdiction, for example, disputes regarding real property (e.g. unit foreclosure, modification of a condominium plan).

*Matters to be addressed in the regulations supporting the Act.