Legislation governing condominiums has been passed to help protect bare land condo owners in Alberta from large assessments to repair and maintain managed property.

“By passing this legislation, we are giving bare land condominium owners and corporations the clarity and certainty they deserve in dealing with maintenance and repair issues,” says Service Alberta Minister Manmeet S. Bhullar.

Bare land condos are typically stand-alone structures such as detached homes and duplexes. Many corporations that manage these properties are responsible for maintaining “managed property” – property owned by a unit owner but managed by the condominium corporation – in addition to common property such as roads and sidewalks within a complex.

A recent Alberta Court of Queen’s Bench decision (the “Shores” decision) determined that the province’s current Condominium Property Act does not give bare land condominium corporations the authority to pre-collect fees or use reserve funds for expenses related to repairing and maintaining managed property. As a result, corporations may have to finance expenses for managed property, potentially exposing unit owners to large special assessments to cover the costs.

“The Shores decision created a great deal of uncertainty, not only for current bare land condo owners but also for those considering such a purchase,” says Becky Walters, president of the Calgary Real Estate Board.

Bill 24, the Statutes Amendment Act, clarifies the Condominium Property Act to allow bare land condominium corporations to collect fees and use reserve funds to maintain, repair and replace managed property if their bylaws allow it. The change impacts approximately 1,300 corporations with 40,000 owners.