In Alberta, any condominiums developed under a phased development model require developers to file a phased development disclosure statement with the initial condominium plan. For more information about multi-stage developments, visit Buying New: Multi-Stage Developments.
Why is it important to review the phased development disclosure statement?
The Condominium Property Act requires certain information to be in a phased development disclosure statement. So this information will give you a better idea of how the completed project will look and function.
The statement must include a description of the proposed physical appearance of each phase.
Description of Condominium Units
The statement must include a description of the condominium units built in the initial and future phases of the project. For example, this description includes:
- the size of each unit;
- the maximum and minimum number of units in each phase and the completed project;
- any restrictions on the types of units; and
- the proposed usage of the units.
Description of Common Property
The statement must include a description of the common property for all phases. For example, this description includes:
- information about improvements to the common property in each phase
- any restrictions on common property
- the proposed usage of the common property and
- if common property in a future phase is going to be available for owners in previous phases, an explanation as to when those facilities will be ready.
Condominium Contributions (Condo Fees)
Developers must include information about how they will help pay for common expenses during the development of each phase and over the course of the entire project.
In addition, they must describe the assignment of unit factors during the project, and the impact on condominium contributions if future project phases are not complete.
However, there is always a risk that multi-stage projects will not be fully complete. So talk to your lawyer or real estate agent to assess the risks and benefits of buying a unit in a multi-stage development.
Can the statement change?
Yes, but a developer cannot change the statement without the consent of two thirds of the owners, not including the developer, who have the right to vote under the Condominium Property Act. Also, developers can make changes to the statement without owner consent if changes are required to meet zoning, land use, or municipal development laws.
For more information about who can vote, visit Meetings.
What happens if a develop does not complete a project?
If a developer cannot or will not be able to complete the multi-stage development, the condominium corporation can make a court application to deal with the undeveloped land and unfinished improvements or additions to the common property. Consequently, condominium corporations should talk to a lawyer for legal advice.