Curious about Condo Ownership?
Read On
Wish You Owned a Condo? Good News for Buyers and Sellers
New governance regulations, for
Condo ownership, were approved by cabinet recently. "About one out of
every five Albertans lives in a condo and our government has their back,"
says Brian Malkinson, Minister of Service Alberta.
Rules Change – More Protection for Condo Owners' Investments
A condo is a substantial
investment. The new rules can be found at https://www.alberta.ca/assets/documents/condominium-property-regulation.pdf
If you are considering buying a
condo it is recommended that a professional read the bylaws and review the
financials first.
Access to Condo Documents - New Changes! - What You Need to Know
In previous years gaining access
to this information could be expensive! But now prices will be set. With new
regulations it will now be easier to access condo documents and the new rules will
clarify which documents must be provided to new owners and when they need to be
provided. It will also stipulate what exactly needs to be included in them.
New Regulations Will Make Condo Life Better
Anand Sharma of the Canadian
Condominium Institute (CCI) appeared on media channels recently to explain the
many of the changes. "This is huge for condo owners," said Sharma,
who is president of the North Alberta chapter of the CCI. "We’ve been
waiting for this regulatory change for 18 years. It was a big piece of
legislation." These new regulations will make it better for everyone in
the industry.
Condominium Boards - More Important – More Transparent
There is good news for potential
buyers. As a result of surveys, consultations and studies by condo owners (more
than 5,000 across the province) in cities like Edmonton, Calgary, Lethbridge
and Fort McMurray there are now new bylaws for condominium boards. These new
rules come into effect in July of 2019. The Minister has also stated that,
"Alberta condominium boards will have to be more transparent as a result
of changes made to the province's Condominium Property Regulation."
Revamp of Voting Rules and Much More - This is Huge!
The new rules mean owners will
get more notice to attend general meetings and see 'Agenda Topics' beforehand. Other
changes include adjustments to make the rules fairer on how condo corporations
can issue bylaw fines and how reserve funds are managed. Some changes related
to insurance matters were also made.
Condo Fees – More Pressure on Condo Boards for Accountability
Condo boards will not be able to
raise condo fees without justification. Sharma said, "They have a
fiduciary responsibility."
He went on the explain that the
new regulatory framework is going to put a lot more pressure on condo boards in
terms of professionalizing the industry and professionalizing their action. For
example the reserve fund studies will not be able to be penned by just anybody,
as the updated regulations define the 'study-provider' qualifications.
Insurance and Deductibles - What You Need to Know
While it's not mandatory under
the Condominium Property Act or Regulation to have insurance to cover insurance
deductibles, a condo board can now enact a local bylaw. And effective Jan. 1,
2020, condo boards will be able to go after condo owners for outstanding
insurance deductibles up to a maximum of $50,000. Sharma advises condo owners
to look into an insurance plan. "Start preparing for that," Sharma
said.
Any questions
about the new condo regulations and what they mean for you? Please give me a
call 403-680-4479.
