This section applies to the purchase of new and conversion condominium developments only
What happens to your deposit?
After you sign a purchase agreement for a new or conversion condominium unit, you must provide the developer with a deposit for the unit. Within 3 days (exclusive of holidays and Saturdays) of receiving your money, the developer must deposit the money into a trust account at a financial institution in Alberta. The deposit is held in a trust account maintained by a lawyer (a “prescribed trustee”) until your unit and the common property is substantially completed. Within 10 days of receiving your money, the lawyer must notify you that the deposit is held on deposit in his or her trust account. You must receive the title to your property before the deposit money is taken out of the trust fund.
Tip: Part 1.4 of the Condominium Property Regulation addresses trust accounts in further detail, including notification requirements, restrictions on the release of trust money and trust account records.
What happens if you change your mind?
After you sign a purchase agreement, you are legally entitled to cancel or rescind the agreement within 10 days, if you did not receive all of the required documents from the developer at least 10 days prior to signing the agreement. The developer must provide you with a full refund of your deposit within 10 days of receiving your written notice to cancel the purchase agreement. Your deposit will be forfeited if you are not legally entitled to cancel the contract or fail to do so within the 10 day period.
What are occupancy fees?
Before you can move into your unit, the developer must provide an occupancy permit that proves the unit has passed all safety checks and complies with local bylaws. You may receive the occupancy permit and be able to move in before you receive the certificate of title for the unit. This period of time is known as interim occupancy and the developer may require you to pay occupancy fees during this time.
Talk to your lawyer or real estate agent about how the purchase agreement deals with occupancy fees. Sometimes developers will apply occupancy fees towards the final purchase price of the unit.
Tip: the amount of occupancy fees cannot exceed the amount the developer disclosed to you when you signed the purchase agreement.
Last updated: January 2018