Required Legal Steps in a Resale Transaction
When an owner sells a condominium unit, the corporation has legal obligations to provide certain documents and information under Alberta’s Condominium Property Act (CPA) and Condominium Property Regulation.
The key legal steps in the resale process include:
The Seller Requests Information and documents – The seller (or their real estate agent) must request an estoppel certificate from the condominium corporation.
The Corporation Provides Required Disclosure Information and Documents – The corporation must provide financial and operational records related to the condominium.
The Buyer Reviews the Disclosed Information – The buyer and their lawyer review the documents to assess any outstanding financial liabilities, governance issues, or maintenance concerns.
Analyzing Compliance in Resale Transactions
Common Mistakes That Delay Resale Transactions
Failure to Provide Documents on Time – Information and documents must be issued within 10 days of request.
Missing Financial Liabilities – If the corporation fails to disclose special levies, buyers could face unexpected financial burdens.
Errors in Disclosure – Inaccurate information about outstanding condo fees or levies could result in legal disputes.
To avoid these mistakes, condominium managers should:
Keep accurate financial records and update them regularly.
Ensure reserve fund studies are up to date and readily available.
Review all information and documents before issuance to confirm accuracy.
Creating a Compliance Checklist for Resale Transactions
Best Practices for Condominium Managers
To ensure smooth and legally compliant resale transactions, condominium managers should use a structured resale compliance checklist that includes:
Confirming Outstanding Balances – Check for unpaid fees, levies, and caveats.
Providing Required Documents – Ensure all disclosures are provided within 10 days of request.
Reviewing Reserve Fund Status – Verify whether the reserve fund study is up to date.
Disclosing Lawsuits & Structural Deficiencies – Ensure that all legal and engineering reports are available.
Communicating with Buyers & Sellers – Clearly explain financial obligations and governance rules.
Failure to follow these requirements can expose the condominium corporation to legal liability.
