Chargebacks are amongst the issues that the Government has been asked to address in the amended Legislation and Regulations. So far it has not been successfully addressed, even in the draft Regulations, so anything that is said will be subject to change when and if the Regulations are amended to adequately cover the topic.
Under the Condominium Property Act, you can not treat “chargebacks” as if they were contributions (condo fees). They can not be added to the “condo fee A/R” and they can not be included under amounts caveated.
The Act (as amended in 2014) says: “(g.1) “contribution” means an amount levied under section 39;”
Section 39 says: “(2) A contribution shall not include any amount for the purpose of collecting from an individual owner
(a) a monetary sanction under a bylaw made under section 35(1), [fines]
(b) costs incurred by the corporation as a result of damages caused by an act or omission of an owner, tenant or occupant, [chargebacks] or
(c) any other amount set out in the regulations.
Section 39 also says: (6) A corporation may file a caveat against the certificate of title to an owner’s unit for the amount of a contribution levied on the owner and interest payable but unpaid by the owner.
Fines and chargebacks are not contributions so they cannot be included in the amounts protected under Caveats.
You may have a By-law that governs the allocation of monies paid by the Corporation, but considering the facts you laid out, it probably wouldn’t apply because the Owner seems to have indicated that his or her money is not to be used for the payment of the disputed plumbing bill.
At present we have conflicting case law on the issue of chargebacks. It looks as if Corporations may have to go to Court or the Tribunal to collect every chargeback. We all realize that that is untenable.
We need assistance and clarity on this point from the Government. We also need assistance and clarity regarding when an insurance deductible can be charged to an Owner. Please contact both Service Alberta and your MLA.
Victoria A on July 18 2018 at 04:54 PM