Who Pays for Repairs Inside and Outside an Alberta Condo Unit?

A leak, a failed window or a damaged pipe raises the same question quickly: is this my cost as the owner, or the condominium corporation's? The answer is not the same for every building, and it often turns on where the damage is and what your corporation's documents say.

This article explains the main pieces that decide responsibility in Alberta: the bylaws, the corporation's duties over its property, insurance, and the funding tools for larger repairs. It is general information, not advice on your particular leak.

This article covers the law of Alberta.

Start with the bylaws and the corporation's duties

The Condominium Property Act and the Condominium Property Regulation govern condominiums in Alberta. Under the Act, the bylaws provide for the control, management and administration of the units and property, and owners and anyone in possession of a unit are bound by them. The corporation is responsible for the control, management and administration of its property.

In plain terms, your bylaws and the documents that describe your unit and the common property are where the line between your responsibility and the corporation's is usually drawn. Two buildings can have different answers. If a bylaw conflicts with the Act or the Regulation, the Act or Regulation prevails to the extent of the conflict.

Bylaws can change. Any bylaw may be amended, repealed or replaced by a special resolution. So check that you are reading the current, registered version.

Insurance and the deductible

The corporation must place and maintain insurance on the units, other than owners' improvements, and must insure for replacement cost value. Because owners' improvements are left out of that requirement, how your own improvements are covered depends on your situation and your own arrangements. A lawyer or insurance broker can confirm what your policy should cover.

Insurance is subject to any reasonable deductible agreed with the insurer. Despite any bylaw, a corporation must not require an owner to pay more than $50 000 of a deductible under s. 62.4 of the Regulation. The corporation must also give each owner written notice of listed insurance changes, such as deductible changes, and a copy of the insurance certificate within 30 days of receiving the certificate.

Insurance rules, including deductibles, have changed recently, so it is worth confirming the current position before relying on an older understanding.

Larger repairs: reserve fund and special levies

The corporation must establish and maintain a reserve fund reasonably sufficient to provide for major repairs and replacement of its property, common property and managed property. If the fund is not adequately maintained, the board may have to levy special assessments.

A special levy may fund unexpected and urgent maintenance, repair or replacement, operating shortfalls, increasing the reserve fund balance to meet the reserve fund plan, capital improvements, or satisfying a judgment against the corporation. If the levy is for a capital improvement, the owners must first pass a special resolution. For the other purposes, an owner vote at a general meeting is generally not needed.

After approving a special levy, the board must inform each owner as soon as possible of its purpose, total amount, how each unit's share was calculated, the owner's amount and the payment dates.

If you disagree with who is being asked to pay

Start by raising the issue with the board in writing. If that does not resolve it, the Condominium Dispute Resolution Tribunal hears disputes respecting any matter related to condominiums under the Act, the regulations or bylaws. Any party to a dispute may apply to the Tribunal, but no Tribunal application can be filed if a Court action has commenced on the same dispute.

The Court can also remedy improper conduct, meaning non-compliance with the Act, regulations or bylaws, or oppressive or unfairly prejudicial conduct of the corporation's affairs. Tribunal decisions are binding and enforceable like a Court order once filed, and a party may appeal to the Court no later than 30 days after receiving the decision. Which forum suits a repair dispute depends on the facts, so a lawyer can help you choose.

What to do next

Act quickly on a leak so damage does not spread, and keep everything in writing. Then gather the documents that show who is responsible.

• Ask the corporation in writing for the bylaws, insurance certificates and policies, and the standard insurable unit description, which are among the documents you can request.
• Expect the corporation to provide requested documents within 10 days of receiving your written request.
• Photograph the damage and keep repair quotes and receipts.
• Notify your own insurer and the board promptly.
• If you rent out the unit, remember every tenancy is subject to a condition that the tenant not damage corporation property or contravene the bylaws.
• Speak with a lawyer before paying a disputed charge or starting a claim.

Frequently asked questions