In Alberta, any condominiums developed under a phased development model require developers to file a phased development disclosure statement with the initial condominium plan. 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 included in a phased development disclosure statement. This information will give you a better idea of how the completed project will look and function.
Property Description
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 being built in the initial and future phases of the project. 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. This description includes:
- information about improvements to the common property that are to be included 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.
They are also required to describe how unit factors will be assigned during the project, and how condominium contributions will be impacted if future phases of the project are not completed. There is always a risk that multi-stage projects will not be fully completed. 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 be changed?
Yes, but a developer cannot change the statement without the consent of two thirds of the owners, not including the developer, who are entitled to vote under the Condominium Property Act. Developers can make changes to the statement without owner consent if they are changes required to meet zoning, land use, or municipal development laws.
For more information about who can vote, visit Meetings.
What happens if the project isn’t completed?
If a developer cannot or will not be able to complete the multi-stage development, the condominium corporation can make an application to court for certain orders to be made to deal with the undeveloped land and unfinished improvements or additions to the common property. It is recommended that the condominium corporation talk to a lawyer if this situation arises.
June 2015
