Legal Requirements for Document Retention
Proper document retention is essential for ensuring compliance with Alberta’s condominium laws and avoiding legal disputes. The Condominium Property Act (CPA) and Condominium Property Regulation (CPA Regulation) outline the mandatory records that must be maintained by condominium corporations.
CPA Requirements
A corporation shall keep and maintain at its address for service books and records as prescribed in the regulations.
This means condominium corporations must store key records at their official service address and ensure they are readily available for inspection by owners, board members, and regulators.
CPA Regulation Requirements
The CPA Regulation specifies the mandatory records that condominium corporations must maintain, including:
Meeting minutes (board meetings, general meetings, AGMs).
Reserve fund studies (financial planning for major repairs and replacements).
Insurance policies (coverage details for common property and liability).
Financial statements (annual budgets, balance sheets, income statements).
Service contracts (agreements with vendors, maintenance providers, and condominium managers).
These records must be kept up to date and made available for review by owners or other authorized parties upon request.
Compliance with Filing and Retention Policies
Properly filing, organizing, and retaining documents ensures legal compliance and protects the condominium corporation from potential disputes.
Real Estate Act Rules Requirements:
A condominium manager must keep copies of all financial records, service contracts, and meeting records for a minimum of three years.
This means condominium managers must:
Store financial records (invoices, receipts, budgets) securely for at least three years.
Maintain service contracts to track vendor agreements and ensure contractual obligations are met.
Preserve meeting records to demonstrate compliance with decision-making processes.
Additional retention requirements may apply based on corporation bylaws, which should be reviewed regularly to ensure compliance with both internal and legislative obligations.
Risks of Improper Document Filing and Retention
Failure to maintain proper records can expose the condominium corporation to legal and financial risks, including:
Non-Compliance Penalties
If a corporation fails to provide required documents upon request, it may violate CPA and CPA Regulation provisions, leading to legal action or fines.
Financial Mismanagement
Missing financial records can result in misallocation of funds or inaccurate financial reporting, jeopardizing the corporation’s financial health.
Liability for Board Members and Condominium Managers
Without proper records, disputes over decisions made by the board may arise, making it difficult to defend actions taken on behalf of the corporation.
Difficulty in Selling Units
Prospective buyers or mortgage lenders often request status certificates and other financial records. If these are missing or incomplete, it could delay or prevent sales.
Activity: Case Study – Ensuring Compliance
Scenario:
You are managing a 200-unit condominium in Calgary. An owner is selling their unit and requests financial statements and meeting minutes from the past two years. After searching, you realize that the board has not properly filed minutes from the last three board meetings.
Task:
Identify the compliance issue – Which legislation is being violated?
Determine corrective actions – How can you quickly address the missing records?
Develop a prevention strategy – What steps should be taken to ensure this issue does not occur again?
