Amendments to the Condominium Property Act
Effective Sunday, April 1, 2018, if someone is buying a new condominium from a developer in Alberta, the buyer’s purchase deposit must be held by an Alberta lawyer while the condominium is being built. The lawyer must be active, practicing and insured, and the lawyer and law firm must be approved by the Law Society of Alberta to operate trust accounts.
The developer must deposit the buyer’s purchase deposit funds into the lawyer’s trust account within three business days of receiving the funds. Once the lawyer receives the deposit, the laywer has 10 days to notify the buyer that the funds are in the trust account.
Alternatively, a buyer may get their own lawyer to hold the deposit, with agreement from the developer. The buyer’s lawyer must then notify the developer, within 10 days of receiving the deposit, that the funds are in the lawyer’s trust account.