Alberta condominium corporations now face new requirements when seeking to recover costs from unit owners. Failing to stay up to date and follow the proper procedures could mean losing out.
On February 15, 2026, Bill 30 came into effect, which introduced several important amendments to Alberta's Condominium Property Act. Among them was the addition of section 39.01, which establishes new rules governing when and how condominium corporations can charge back costs to unit owners.
While these changes have been in effect for several months, many condominium boards and property managers may not fully appreciate their significance. The new provisions create opportunities for corporations to recover certain expenses, but they also introduce strict procedural requirements that must be followed.
Importantly, these requirements apply whether or not an insurance claim is made and regardless of whether the loss is insured.
When Can a Condominium Corporation Charge Back Costs?
Under section 39.01, a condominium corporation may recover certain costs from a unit owner when an act or omission by the owner, an occupant, or someone for whom either is responsible, requires the corporation to repair, replace, maintain or protect a unit, common property or other property of the corporation.
The amount that can be charged back is also limited. It cannot exceed the lesser of:
The corporation's actual expenses; or
The applicable insurance deductible.
This limitation applies regardless of whether the corporation submits an insurance claim.
However, the corporation must have the necessary provisions in its bylaws authorizing these chargebacks. If that language is not present, the condominium corporation can not charge the costs back, regardless of this new legislation.
Essential Steps to Follow When Issuing a Chargeback
Even where the bylaws permit a chargeback and the expenses fall within the allowable limits, the corporation cannot simply issue an invoice to the owner. It must first follow the procedure which has been established under the Condominium Property Regulation.
Step 1: Provide Formal Notice of the Proposed Chargeback
Before imposing a chargeback, the condominium corporation must serve the owner with a formal Notice of Proposed Chargeback within 90 days of the loss. This makes it particularly important for property managers and boards to identify potential chargeback situations promptly, even if the full extent of the damage or the final repair costs are not yet known.
The notice must include:
The name and unit number of the owner subject to the proposed chargeback;
The date and description of the act or omission giving rise to the proposed chargeback;
The estimated amount of the proposed chargeback; and
A deadline for the owner to provide a written response, allowing at least 10 days, excluding holidays, following service of the notice.
This notice gives the owner an opportunity to respond before the board decides whether to impose the chargeback.
Boards should not wait until repairs are completed or all invoices have been received before considering whether a notice of proposed chargeback is required. Delaying that decision could put their ability to recover the costs at risk.
Step 2: Consider the Owner's Response and Decide Whether to Proceed
Once the owner has responded, or the response deadline has passed, whichever occurs first, the board can evaluate the available information and decide whether to proceed with the chargeback.
The board may either approve the chargeback or decline to impose it.
Unlike the initial notification stage, there is no strict deadline for completing this decision-making process. This gives boards some flexibility to obtain additional information, including confirmation of final repair costs, or consider the response received from an owner, before determining the amount to be charged back.
However, boards must remain mindful of any applicable limitation periods under Alberta's Limitations Act.
Step 3: Pass a Resolution and Issue a Statement of Chargeback
If the board decides to proceed, it must formally approve the chargeback through a board resolution and then issue a Statement of Chargeback to the owner.
The Statement of Chargeback must set out:
The amount of the chargeback;
Instructions for making payment; and
The deadline for payment.
If the owner does not pay by the provided deadline, the board can then consider its options to collect, which may include caveating the unit, or commencing a legal action. Again, at this stage boards must remain mindful of applicable limitation periods.
The procedural steps set out above are mandatory, not simply administrative formalities. Failure to comply with the required process implemented by Bill 30 could result in a condominium corporation losing its ability to recover the costs from the owner.
Owners Have 30 Days to Appeal
The new provisions also establish an important deadline for unit owners who wish to challenge a chargeback.
An owner who receives a Statement of Chargeback has the right to appeal to the Alberta Court of King's Bench. However, the appeal must be brought within 30 days of receiving the statement. Owners who fail to act within that period may lose their ability to challenge the chargeback.
This makes it important for both boards and owners to understand their respective rights and obligations once a chargeback has been issued.
Don't Overlook Chargebacks When a Unit Is Sold
Another significant change relates to the information condominium corporations must disclose when a unit is being sold.
Where a Notice of Proposed Chargeback has been issued, the corporation must disclose information about that proposed chargeback in the estoppel certificate for the unit. This obligation applies even if the final costs have not been determined or the board has not yet decided whether to impose the chargeback. Failing to disclose a proposed chargeback could jeopardize the corporation's ability to recover the amount from a subsequent owner.
Property managers and boards should therefore ensure that outstanding proposed chargebacks are properly tracked and reflected in estoppel certificates, including those that have not yet been finalized.
What Should Condominium Boards and Property Managers Do Now?
The introduction of section 39.01 makes it important for condominium corporations to review their existing chargeback practices and bylaws.
In particular, boards and property managers should:
Review their bylaws. Confirm that the corporation has the necessary authority to impose chargebacks under the new provisions.
Establish a process for identifying potential chargebacks. Damage incidents should be reviewed promptly to determine whether the new notification requirements apply.
Track deadlines carefully. Ensure proposed chargeback notices are served within the required timeframes and owners are given the appropriate opportunity to respond.
Document board decisions. Chargebacks must be properly approved by resolution and followed by a compliant Statement of Chargeback.
Update estoppel certificate procedures. Ensure proposed and outstanding chargebacks are disclosed when a unit is sold.
The Bottom Line
Section 39.01 provides condominium corporations with an important mechanism for recovering costs arising from the actions or omissions of owners and occupants. However, it also places greater responsibility on boards and property managers to follow the proper procedures.
A corporation may have a legitimate basis for recovering thousands of dollars in repair costs, yet still lose that opportunity because a notice was not issued on time or a required step was overlooked.
With the new rules now in effect, condominium boards and property managers should ensure their bylaws, internal procedures and recordkeeping practices are up to date.
SVR Lawyers' Condominium Law Group assists condominium corporations, boards and property managers with bylaw reviews, chargeback disputes and compliance with Alberta's condominium legislation. Contact our team if you have questions about how these changes affect your corporation.
