Definition & Purpose of an Information Statement
An information statement provides essential details about a condominium corporation’s financial status, governance, and operational matters. It is typically requested by unit owners, potential buyers, mortgagees, or legal representatives when making decisions regarding condominium units.
Required Disclosures in an Information Statement
Per Alberta’s Condominium Property Regulation, an information statement must include:
Legal & Financial Claims Against the Corporation
Details of any legal action commenced against the corporation where it has been served, including the amount claimed.
Any unsatisfied judgments or court orders for which the corporation is liable.
Any written demand for payment exceeding $5,000, where failure to pay could result in legal action.
2. Reserve Fund & Contributions
The current balance of the reserve fund to show financial preparedness for major repairs and replacements.
3. Structural Deficiencies
A statement of any known structural deficiencies in condominium buildings at the time of the request.
4. Loans & Debt Disclosure
Loan disclosure statements for any outstanding condominium corporation loans, including:
Starting balance and current balance of the loan.
Interest rate and monthly payment amount.
Amortization period (length of time to repay the loan).
Purpose of the loan (e.g., major repairs, capital projects).
Default status, if applicable.
When an Information Statement is Required
Resale Transactions
Buyers rely on information statements to assess legal and financial risks before purchasing a unit.
Sellers typically request this document from the condominium corporation before listing the unit for sale.
Mortgage Approvals
Mortgage lenders may require an information statement to determine whether the condominium corporation is financially stable.
If a corporation has significant outstanding liabilities, lenders may decline financing.
Legal Proceedings & Dispute Resolution
Information statements may be requested by courts, arbitrators, or lawyers in disputes involving governance issues.
Common Compliance Challenges
Timeliness & Response Deadlines
Condominium corporations must provide the requested information within the legal timeframe to avoid penalties.
Delays in providing an information statement could jeopardize sales, mortgage approvals, or legal compliance.
Accuracy & Completeness
Errors or missing information can result in buyer disputes or mortgage delays.
All financial data, including special levies, loans, and legal claims, must be up to date at the time of issuance.
Recordkeeping & Documentation
Condominium corporations must maintain records of all issued information statements.
Proper recordkeeping ensures compliance with audit and legal review requirements.
Legal Compliance & Regulatory Requirements
Per Alberta’s Condominium Property Act, corporations must provide financial and operational disclosures when requested. Failing to provide accurate information within the required timeframe can lead to legal liability for the corporation.
