Improving life lease protection

Status: Bill 12 was introduced March 18, 2024
Ministry responsible: Service Alberta and Red Tape Reduction

Overview

Bill 12, the Consumer Protection (Life Leases) Amendment Act, 2024, would take a balanced approach to improve consumer protection and help ensure life leases remain a reliable housing option for seniors.

If passed, it will address gaps and provide clear and consistent criteria for life lease contracts. Proposed changes would establish firm payout timelines, a cooling-off period, enforcement for non-compliance, and allow flexibility to increase consumer protections as the life lease market evolves.

Proposed improvements under Bill 12 were informed by input from leaseholders, families, operators and other groups.

A life lease is a contract where residents occupy a unit for life, or until they choose to leave, in exchange for an initial upfront fee, often referred to as an entrance fee, followed by monthly payments to cover ongoing fees and operating expenses.

Key changes

Bill 12, the Consumer Protection (Life Leases) Amendment Act, 2024, would:

set out minimum requirements for what life lease contracts must contain
mandate the return of entrance fees to be within 180 days of termination of the lease
establish the ability to create interest penalties for entrance fees not repaid within the required 180 days
mandate a 10-day cooling-off period after contracts are signed
set out broad regulation making authority to further regulate the life lease industry, should additional rules become necessary. Includes the authority to:
- establish security requirements for the life lease industry, should it wish to do so in the future
- create interest penalties for entrance fees not repaid within the required 180 days
establish that non-compliance with these new requirements will be deemed offences and will be subject to enforcement under the Consumer Protection Act’s existing framework

Next steps

If passed, Bill 12 will take effect upon royal assent.

Resources

The Consumer Protection Act prohibits unfair or misleading practices when entering into a consumer transaction. These protections also apply to life lease arrangements. Learn more about consumer protection in Alberta.