Condominium Law

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In recent years, the Province of Alberta has seen extensive growth in the development of condominium projects.

As a result, we have developed experience in a variety of areas, including the financing, development, construction, marketing, and administration of commercial, residential, and mixed-use condominiums. Our services apply to many types of condominium development, including conventional condominiums, bare land condominiums, conversions, phased condominium developments, "barely blended" developments and those developments that may be a mix of any of the above.

Field Law helps developers and builders meet the requirements of provincial legislation and the municipal approval process. For example, we are responsible for preparing all disclosure documents required to be provided to purchasers under the Condominium Property Act. Field Law also represents developers in all aspects of the financing of condominium developments, including obtaining partial discharges of such financing as marketing and sales proceed.

In addition, our lawyers assist with the transition of the management of condominiums from developers to unit owners. We coordinate and chair turnover meetings in cooperation with developers, management companies and new owners. We also act for owners where the developer does not take sufficient responsibility concerning the operation of the condominium project prior to turnover.

Our lawyers work with condominium corporations, boards, and management companies in all aspects of condominium management and operation. We educate board members so that they are familiar with their ongoing responsibilities and assist boards with procedural and governance issues. We help corporations effect bylaw reviews and seek remedies against defaulting developers in the case of newly constructed projects. Field Law also provides advice in the enforcement of bylaws and the collection of arrears in line with statutory requirements. For condominium managers, we help with their interaction with condominium corporations, including drafting management agreements and reviewing management duties and obligations to the boards.

Finally, Field Law also acts for individual unit owners in situations where alleged defaults are committed by corporations or where a board or corporation may be guilty of improper conduct. We have acted for shadow boards where elected boards have behaved in such a manner that a shadow board is necessary to deal with a current board's improper behavior.

Many of our lawyers are active members of the Canadian Condominium Institute, North Alberta Chapter, a non-profit organization committed to providing condominium boards, owners and professionals with the knowledge and skills required to properly manage the day-to-day affairs of condominium living.

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  • Can a Condo Board Delay Repairs Recommended in a Reserve Fund Study?

    A condominium board may have reasons to consider delaying a recommended project, but the decision should be made carefully. Deferring maintenance or repairs can potentially increase future costs, affect other building components, create safety concerns or affect property values. Boards should consider both the financial and practical consequences before postponing planned work.

  • Can a Condo Bylaw Become Unenforceable in Alberta?

    Potentially. A condominium corporation's failure to consistently enforce a bylaw over time may affect its ability to later require compliance. Other issues, including inconsistent rules, delays in taking legal action and fairness to owners who relied on past practices, can also affect enforcement. A corporation seeking to resume enforcement may need to take deliberate steps to communicate and implement the change.

  • Can a Condo Corporation Be Liable for Failing to Address an Owner's Complaint?

    Potentially. A condominium corporation may face liability where a board fails to properly investigate or address legitimate concerns from an owner. Acting honestly or relying on advice from a property manager does not necessarily protect the corporation if the board's conduct unfairly disregards an owner's interests or the corporation fails to meet its legal obligations.

  • Can an Underfunded Condo Reserve Fund Lead to a Special Assessment?

    An underfunded reserve fund can increase the risk that owners will face a special assessment when significant repairs or replacements are required. While keeping condominium fees lower may be attractive in the short term, boards should consider the corporation’s long-term financial needs and whether reserve fund contributions are sufficient to support anticipated capital expenses.

  • Can Condominium Owners Remove a Board Member in Alberta?

    Yes. Condominium owners in Alberta may be able to remove a Board member before the end of their term.

    Board members are generally elected for terms that expire at an Annual General Meeting (AGM), subject to the condominium corporation’s bylaws. If owners want to address the removal of a Board member before their term expires, they may be able to requisition a special general meeting.

    This generally involves preparing a written request stating the purpose of the meeting and obtaining support from owners representing the required number of unit factors. Once a valid requisition is received, the condominium corporation must follow the applicable requirements for convening the meeting.

    If an AGM is approaching, owners may also have an opportunity to nominate and elect other candidates to the Board or address the removal of a Board member whose term has not yet expired.

    The appropriate process will depend on the circumstances, the condominium corporation’s bylaws and Alberta condominium legislation. Court proceedings may also be available in some circumstances, but are generally considered a last resort.

  • How Are Condo Bylaws and Rules Created, Enforced and Changed in Alberta?

    Condominium bylaws and rules are created and changed through different processes in Alberta.

    Bylaws are created or amended through a special resolution of the condominium corporation. Bylaws may also provide for monetary sanctions when an owner, tenant or occupant fails to comply with them, subject to the requirements of Alberta condominium legislation.

    Rules can be created by the condominium Board and may be changed or rescinded by the condominium corporation through an ordinary resolution. Unlike bylaws, rules cannot provide for monetary sanctions.

    When a dispute about the enforcement of a bylaw or rule goes before a court, the court may consider whether the bylaw or rule was properly enacted, whether its enforcement is reasonable and fair, and whether appropriate procedures were followed. The amount of notice provided to affected owners and the fairness of the enforcement process may also be important considerations.

    Condominium Boards should ensure that bylaws and rules are properly created, communicated and consistently enforced.

  • How Can a Condominium Corporation Be Terminated in Alberta?

    In Alberta, there are two primary ways condominium status may be terminated: by special resolution or by court order.

    Special resolution: A condominium corporation may terminate its condominium status if the required owners and mortgagees approve a special resolution in accordance with Alberta’s Condominium Property Act. The termination process must also satisfy the other legal requirements that apply to the corporation and property.

    Court order: An application may also be made to the Court to terminate the condominium. When considering an application, the Court may assess both economic and non-economic factors and consider the rights and interests of the owners and the condominium corporation as a whole. The Court will consider whether termination is “just and equitable” in the circumstances.

    Because condominium termination can significantly affect property ownership, mortgages and other interests in the property, legal advice should be obtained before beginning the termination process.

  • How Should a Condo Board Use a Reserve Fund Study?

    A reserve fund study should be more than a compliance document. Condominium boards can use it to guide budgeting, maintenance planning and capital spending decisions. Regularly reviewing the study can help boards prioritize projects, anticipate future costs and communicate upcoming financial needs to owners.

  • What Are the Legal Duties of Condo Board Members in Alberta?

    Condo board members in Alberta must act honestly and in good faith, with a view to the best interests of the condominium corporation. They must also exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. Board members should make informed decisions and understand the corporation's bylaws and applicable legal obligations.

  • What Happens If a Condo Board Does Not Enforce Its Bylaws in Alberta?

    A condominium corporation that fails to consistently enforce its bylaws may have difficulty enforcing them later. Owners and occupants may reasonably come to believe that a longstanding bylaw will not be enforced. Delayed or inconsistent enforcement can also create fairness issues and potentially expose the corporation to legal challenges.

  • What Happens If No One Is Willing to Serve on a Condo Board in Alberta?

    An Alberta condominium corporation needs a Board of Directors to manage the corporation and make decisions on its behalf. If Board positions become vacant, steps must be taken to elect or appoint replacement Board members in accordance with the corporation’s bylaws and Alberta condominium legislation.

    If all Board positions become vacant, a general meeting may need to be called to elect a new Board. If no owners are willing to serve, it may ultimately be necessary to apply to the Court for the appointment of an administrator to manage the affairs of the condominium corporation.

    A court-appointed administrator can exercise authority over the corporation and make decisions that would otherwise be made by the Board. This can be a costly solution, with the associated expenses ultimately borne by the condominium corporation and its owners.

    For this reason, appointing an administrator is generally a last resort when a condominium corporation is unable to establish a functioning Board.

  • What Is a Unit Factor in an Alberta Condominium?

    A “unit factor” is a defined term under Alberta’s Condominium Property Act. Each condominium unit is assigned a unit factor, and the unit factors for all units within a condominium corporation total 10,000, regardless of the number of units in the development.

    Unit factors are often allocated based on the size of each unit relative to the total size of all units in the condominium. However, a developer may allocate unit factors equally among units or use another method.

    Your unit factor is important because it can determine your proportionate share of condominium fees and special levies. It can also affect the weight of your unit’s vote on certain condominium matters, including special resolutions and ordinary resolutions in writing.

    You can find your unit factor on the registered condominium plan or your certificate of title.

  • What Is the Difference Between Condo Bylaws and Condo Rules in Alberta?

    Condominium bylaws and rules serve different purposes and have different requirements in Alberta.

    Condo bylaws are the foundational rules governing a condominium corporation. They address the control, management and administration of the corporation, individual units, common property, managed property and the corporation’s real and personal property. Because bylaws are intended to have a degree of permanence, there are formal requirements for changing them.

    Condo rules are generally easier to create, amend or remove. They can help a condominium board address operational matters, procedures and issues that may not be specifically addressed in the bylaws.

    However, there are limits on what can be addressed through a rule. For example, rules may address procedures relating to the administration of the corporation and its property, but they cannot be used to restrict the use of individual condominium units.

    Understanding whether a particular restriction belongs in a bylaw or a rule is important when condominium boards create or enforce requirements affecting owners and residents.

  • Why Would a Condominium Corporation Terminate in Alberta?

    There are several circumstances in which condominium owners may consider terminating a condominium corporation.

    One reason is the cost of major repairs and maintenance. Condominium corporations are responsible for maintaining and repairing common property, and significant building issues can result in substantial costs for owners. If the required repairs are no longer financially practical, termination may be considered as an alternative. This is generally a last resort when the condominium cannot reasonably proceed with necessary repairs.

    Another reason may be an increase in the value of the underlying land. A condominium property in a desirable location may become attractive for redevelopment, potentially making the property more valuable as a whole than as individual condominium units. In these circumstances, owners may consider terminating the condominium and selling the property to a developer.

    Terminating a condominium is a significant legal and financial decision that requires compliance with Alberta condominium legislation and careful consideration of the interests of the condominium corporation and its owners.