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Alberta Condo Property Act Changes from 2019 to 2020 are outlined in this post.
First, we will provide an overview.
Table of Contents
Alberta Condo Act changes include:
- Insurance deductible assessment changes.
- Insurance premium increases and what condominium corporations and owners can do in response
- An exemption for changing corporation bylaws so they do not conflict with updated condominium legislation, effective January 1, 2020.
- A requirement for notice before rules come into effect; enforcement of rules and bylaws; and notices regarding non-compliance and notices of sanction.
- The requirement for condominium corporations to keep specified documents, and to make these documents available to condominium owners, purchasers and mortgagees upon request.
- As of January 1, 2020, condominium corporations must provide a standard insurable unit description (SIUD) to their insurance provider and all unit owners.
Introduced in December 2014, Alberta introduced sweeping changes to the CPA Condominium Property Act. These proposed changes were put into Bill 9, with the Alberta government introducing them through 3 phases. The first phase of changes came in 2018 which improved consumer protection.
Readers Notice: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
The second phase of changes to the CPA, introduced on January 1, 2020, improves board governance.
Of course, as Alberta’s largest independent property management firm, Magnum York has been managing the changes in the phases seamlessly for boards and their owners, as well as providing ongoing education. Here’s some information we’ve gathered and reviewed to help understand the newest phase 2 changes.
The biggest change that everyone is talking about is regarding the insurance deductible assessment.
Why do condo owners have to increase their insurance deductible to a maximum of $50,000?
In BFL Canada’s most recent “Condo Legislations Changes” Notice, they state:
“Effective January 1, 2020 the board can recover the Corporation’s deductible from an owner for damages that originate in or from the owner’s unit or an exclusive use area, to a maximum of $50,000.”
BFL Canada, “Condo Legislation Changes” .PDF
Deductibles could vary from condo corp to condo corp — the corporation’s Certificate of Insurance has the exact amount. $50K is the maximum stated in Bill 9.
Most condo corporations did not have by-laws that allowed for deductible recovery. Because it’s now part of the act, this will impact every Condo owner in Alberta.
Some condo owners will just need to review their existing policies to ensure they are covered. Most will likely need to increase their insurance deductible on their unit insurance.
Click here to download BFL Canada’s Condo Legislation Changes 3-page .PDF
Click here to go to BFL Canada’s Contact Us page
Does an owner HAVE to pay the condo corporation’s deductible amount, even if it was an accident?
Whether or not there was any proven negligence the Owner may be responsible to pay the Corporation’s deductible amount
Canadian Condominum Insitute, Alberta North Chapter, “Attention: Condo Owners” .PDF
There *are* instances where the owner might not have to pay the deductible, for example, if there was a defect in construction or an act or omission of the corporation (Condo board directors, employee, officer).
But in most cases, it’s going to fall to the owners to provide the deductible for the corporation’s insurance. What we’re talking about here are things like flood damage that seeped down into the floors below. Or fires started that spread to other units.
IMPORTANT! All condo owners should read a copy of CCI’s “ATTENTION: CONDO OWNER” .PDF
CCI (Canadian Condominium Institute) North Alberta Chapter created a wonderful infographic poster that all owners of condos should read regarding the insurance deductible. AND, all condo boards should distribute to their owners.
Click here to download CCI’S “Attention: Condo Owner” 1-page PDF
Click here to go to the CCI North Alberta Chapter Website
Here are the 3 steps CCI suggests condo owners follow:
- Ask your Board, Manager or Corporation Insurance Broker for a copy of the Corporation’s Certificate of Insurance that outlines the current deductible amounts, in particular, the water damage deductible.
If you are in a condominium that Magnum York manages, the owners can find the Corporation’s Certificate of Insurance in your original condo paper package you received when you purchased your corporation. - Contact your personal Insurance Broker and inquire whether you have deductible coverage in your Unit Owner’s policy and if not, request to add coverage.
- Is the deductible coverage in your Unit Owner’s policy equivalent to the Corporation’s deductible? If not, adjust your deductible accordingly.
(thanks for great infographic, CCI!)
What else should condo boards and owners know about changes to the Condominium Property Act?
The Alberta government paused the roll-out of phase 2 of the changes to the CPA mid-2019 for a review and to “ease the administrative burden on condo boards and corporations while protecting condo owners and their investment.”
Click here for recent updates on the Alberta government’s Condominium rules webpage.
They released a clause-by-clause annotation of what the changes to the CPA are, and where they are impacted. While it’s very long (longer than the act itself), for those who revel in the contract details it’s a great read.
Click here for an annotated version of the CPA with Jan 1 2020 changes.
The Alberta government released 8 “fact-sheet” publications covering important topics of the Condominium Property Act
1. Reserve Fund Study Providers, Plans and Reports
“A reserve fund study of the depreciating property of a condominium must be conducted every five years. This fact sheet looks at the requirements for the reserve fund study, qualifications required for conducting a reserve fund study, and exemptions from establishing a reserve fund.”
Click here to download “Reserve Fund” .PDF
Click here for source publication page on Alberta website
2. Updating Condominium Bylaws
“This fact sheet explains a special exemption for changing corporation bylaws so they do not conflict with updated condominium legislation, effective January 1, 2020. The exemption provides a one-year “window,” for corporations to amend their bylaws by ordinary resolution if their bylaws conflict with the amended Act or the regulations.”
Click here to download “Updating Condomium Bylaws” .PDF
Click here for source publication page on Alberta website
3. Condominium rules, bylaws and sanctions
“This fact sheet explains the difference between rules and bylaws for condominium corporations. Also looks at the requirement for notice before rules come into effect; enforcement of rules and bylaws; and notices regarding non-compliance and notices of sanction.”
Click here to download “Condominium Rules” .PDF
Click here for source publication page on Alberta website
4. Condominium documents for owners, mortgagees and prospective purchasers
“This fact sheet explains the requirement for condominium corporations to keep specified documents, and to make these documents available to condominium owners, purchasers and mortgagees upon request. Also explains when fees may or may not be charged for certain documents.”
Click here to download “Condominium Rules” .PDF
Click here for source publication page on Alberta website
5. Insurance premium increases
“This fact sheet looks at the rising cost of condominium insurance, the government’s role regarding property insurance, and what condominium corporations and owners can do in response to these rising costs.”
Click here to download “Insurance premium increases” .PDF
Click here for source publication page on Alberta website
6. Standard insurable unit description
“As of January 1, 2020, condominium corporations must provide a standard insurable unit description (SIUD) to their insurance provider and all unit owners. The SIUD is a description of what the corporation’s insurance will cover. This fact sheet explains how to create a SIUD, and the information that it should include.”
Click here to download “Insurance premium increases” .PDF
Click here for source publication page on Alberta website
7. Resolving condominium disputes
“This fact sheet looks at the steps condominium owners can take to resolve disputes with condominium boards, and with condominium managers.”
Click here to download “Resolving condominium disputes” .PDF
Click here for source publication page on Alberta website
8. Condominium unit rentals
“This fact sheet looks at the responsibilities that condominium owners have to their condominium corporations that must be met before renting.”
Click here to download “Condominium unit rentals” .PDF
Click here for source publication page on Alberta website
What’s next for Condominium Property Act and when does phase 3 start?
While no date has been set for the introduction of Phase 3 of the Condominium Property Act, there are details available for what it will entail.
Phase 3 of the Condominium Property act is focused on education and licensing for condo managers. This is welcome news at Magnum York … we have licensed Property Managers on staff and have been providing diligent property management services for almost 30 years.
The task to create a working education and licensing program for condominium property managers falls to the Real Estate Council of Alberta (RECA) Visit RECA: Condominium Manager Regulation Consultation for more info.
Tags: BFL Canada, Bill 9, Canadian Condominium Institute, CPA
Comments (11)
On behalf of the Amy Gardens Condo Corp., I would like to personally thank-you for taking the time to prepare this overview explaining the changes to the CPA effective January 1.20 and for putting it into plain English. This is excellent and very informative.
Troy Byrt
January 26, 2020President-Amy Gardens Condo Corp.
THANK you. Very helpful.
August 3, 2020Thanks Stephen,
November 30, 2020you shared a lots of useful information, especially appreciated by small condo boards.
Can you advise who should we use to have a new by-law written for our 8 unit condo? Each owner received the basic by-law from the builder, which we think should be updated to include recent legislations and some more clear by-laws regarding insurance, condo fees, noise...
I would really appreciate your advise.
Shari
Hi Shari ... thanks for the thanks. The basic by-laws cover some of what you need, but you are correct, they should be updated. There are several good condo lawyers that we refer our condo boards to, and your property manager should be able to give you a good start with the types of things you should consider. If you are a current property we manage, just reach out to your PM. Otherwise, feel free to pop by https://magnumyork.com/proposal and we can get the conversation started. It sounds like you are a self-managed condo, so we have options specifically for condos your size. Let us know. ~Stephen
November 30, 2020Great work Stephen. Appreciated.
January 4, 2021It’s a great and useful piece of info. I’m happy that you just shared this useful info with us. Please stay informed like this. Thank you for sharing. Here’s another informative content. Edmonton Real Estate Law You may find more details here.
July 25, 2021Hello,
Not sure if this is actively being monitored but maybe it is.
I am part of a condo board that doesn't have an SIUD, and we have experienced a loss. What happens here? We're going to get an SIUD created and registered, but obviously that doesn't sort out things for now.
August 16, 2021Hi Peter,
Is your property managed by us? If so, you can submit a service ticket online and we can dig into the specifics of the situation. If not, unfortunately we cannot offer much advice as we don't want to speak for a situation when we don't know the actual details.
Thank you,
August 20, 2021Jessica
This was a very informative article. Thank you for it.
September 16, 2021Stephen,
This is very helpful; thank you very kindly. I have a question. If Bylaws refer to another document (ie Architectural Standard) but the document has not been circulated to the home owners or approved by the Board or homeowners yet, is that document in force and enforceable? Also given that this new document is coming after Dec 31, 2020, doesnt it require a special resolution? Thank you very much.
October 26, 2021Hi Glen,
We're glad you enjoyed the read. I tried searching for you in our system but didn't find anything. We encourage you to speak to your property manager for answers to your questions.
Thank you,
November 1, 2021Jessica