Consumer Protection (Life Leases) Amendment Act, 2024*

Summary#

• This bill adds new rules to protect people who enter “life lease” housing agreements in Alberta. A life lease is when you pay a large upfront “entrance fee” to get the right to live in a unit for life, plus ongoing monthly “occupancy fees.”

• The bill sets basic consumer protections, makes refunds faster and clearer, and lets the government set more detailed rules by regulation.

• Key changes:

  • Defines life leases and brings them under Alberta’s Consumer Protection Act.
  • Requires every life lease to include clear terms on entrance fees, refunds, cancellation, termination, and fee increases.
  • Gives a minimum 10-day cooling‑off period to cancel after signing.
  • Requires entrance fees to be returned within 180 days after a life lease ends, with interest if late.
  • Allows regulations for trust accounts (to hold your money safely), caps on fees, required insurance, audits, building maintenance funds, and annual meetings.
  • Makes it an offence for operators to ignore key requirements, like using approved forms or missing the 180‑day refund deadline.

What it means for you#

• Seniors and families considering a life lease

  • You must get a written contract that clearly explains how your entrance fee will be used and when you get it back.
  • You have at least 10 days after signing to cancel for any reason.
  • Your monthly occupancy fees and any increases must follow set rules and advance notice.
  • If the lease ends, the operator must return your entrance fee within 180 days. If they are late, interest must be paid.
  • The government may require your entrance fee or any pre‑lease deposit to be held in a trust account, which helps protect your money.
  • You may receive more financial disclosures, audits, and insurance information, and be invited to annual meetings about the building and its finances.
  • Rules may limit how often or how much fees can increase.

• Current life lease holders

  • The 180‑day refund rule (with interest if late) applies when your existing, similar lease ends after the law takes effect.
  • Other new protections mostly apply to new life leases signed after the law comes into force.

• Lease operators and developers

  • You must use life lease forms that include all required content and any standard wording set by the Minister.
  • You must return entrance fees within 180 days after termination; interest applies if late.
  • You may be required to place entrance fees and deposits in trust, provide security (like a bond), keep specific records, complete audits, fund ongoing building maintenance, disclose insurance, and hold annual meetings.
  • There are penalties for not following certain rules, including using non‑compliant forms or missing refund deadlines.

• Trustees

  • You may be appointed to hold and manage entrance fees or deposits in trust and follow record‑keeping and audit rules.

Expenses#

No publicly available information.

Proponents' View#

• Protects seniors and other residents from losing large entrance fees by requiring clearer contracts, trust accounts, and timely refunds with interest.
• Standardizes life lease agreements and disclosures, making them easier to understand and compare.
• Adds transparency and accountability through audits, maintenance funds, insurance disclosure, and annual meetings.
• Can reduce disputes about refunds and fee increases by setting rules on timing, notice, and limits.
• Brings life leases under the same consumer protection framework that covers other housing‑related services.

Opponents' View#

• Added rules and paperwork may raise costs for operators, which could lead to higher monthly fees or fewer new life lease projects.
• A 180‑day refund deadline and possible trust or security requirements may create cash‑flow pressure for operators, especially in tight markets.
• Flexibility may be reduced if standard forms and strict notice rules replace custom agreements that some communities prefer.
• Until detailed regulations are published, operators and residents may face uncertainty about the exact requirements.
• Enforcement capacity and compliance costs for government and industry could increase.