14/05/2025– Jurisdiction Alberta
Part 90 published on 01/06/2025
Condominium Corporation could not acquire real property indirectly, by acquiring shares of corporate owner.
The condominium corporation had issued a special levy to raise funds to purchase shares of the corporate owner of neighboring properties that served as amenities for the condominium property (and for several other condominium corporations).
On appeal from the decision of the Applications Judge, the appeal Court ruled that the transaction was ultra vires (ie. beyond the powers of the condominium corporation) under the Condominium Property Act and held that the condominium corporation had engaged in improper conduct.
The appeal Court said:
The RDFC Share Purchase undermines this statutory framework by introducing an alternative form of ownership not contemplated by the CPA. Instead of the Respondent owning the real property directly, it has acquired shares in a limited liability company.
Kuhn v Condominium Corporation No 0627537, 2025 ABKB 298, Alberta