Proposed amendments to Alberta’s Consumer Protection Act will add new rules for life lease housing. The contracts to secure long-term occupancy are most commonly offered in seniors housing, and have not previously been regulated in the province.
Under the life lease structure, leaseholders purchase the right to occupy a residential unit for a prolonged period from a controlling entity that retains ownership of the building. Residents pay an upfront entrance fee to gain access to their unit, along with monthly maintenance fees and property tax, and are entitled sell their property interest back to the ownership entity or to will it to an heir. Only two Canadian provinces, Manitoba and Saskatchewan, currently regulate the industry, but Alberta is now poised to be the third.
“We heard some life leaseholders and their families were struggling to receive their money back from their entrance fees and that their contracts were unclear,” says Dale Nally, the Minister of Service Alberta. “Albertans deserve to feel safe when entering into contracts and should be offered clear and fair agreements.”
The proposed new section of the Consumer Protection Act will give the government authority to prescribe the provisions that a life lease must contain. It will also establish a new 180-day time limit for returning entrance fees when a life lease is terminated and a mandated 10-day period in which the resident party can withdraw from a life lease contract, without penalty, after signing it.
“We look forward to working with Minister Nally and his team to ensure that life lease options are a safe, secure and viable choice for Albertans through the Consumer Protection Act with a sustainable development and operational model for providers,” says James Nibourg, president of the Alberta Seniors and Community Housing Association.
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