What is a chargeback?
A chargeback is a cost a condominium corporation seeks to recover from an owner because of actions or inaction connected to the owner, their tenant or a guest. A corporation’s bylaws must allow the chargeback.
Notice and response requirements
The Alberta government states that a board must provide written notice of a proposed chargeback within 90 days after becoming aware of the issue. The notice must describe the incident, provide the estimated amount and give the owner a deadline to respond.
The response period must be at least 10 days, excluding holidays, after service of the notice. The board must consider the matter and make its decision through a board resolution.
Why this matters in a transaction
Pending chargebacks can affect an owner’s obligations and may be documented on an estoppel certificate after the owner has been notified. Buyers and sellers should review current condominium documents and obtain professional advice when a chargeback is disputed or material.