Condos are a popular choice for first-time buyers, downsizers and investors in Calgary. They often offer a lower purchase price, less maintenance and great locations. But when you buy a condo, you are also buying into a corporation and its finances. Here is what to look at closely.
1. Condo fees and what they cover
Fees vary widely between buildings. Find out exactly what is included, such as heat, water, electricity, building insurance, snow removal and landscaping. A higher fee that includes utilities can be better value than a low fee that covers very little.
2. The reserve fund
The reserve fund pays for major repairs like roofs, windows, elevators and parkades. Ask for the reserve fund study and plan, and compare the current balance to what the study recommends.
3. Special assessments
If the reserve fund falls short, owners may be asked to pay a special assessment. Ask whether any are planned or under discussion, and make sure your offer addresses who pays for any that are already approved.
4. Board meeting minutes
Minutes from recent board and annual general meetings reveal ongoing issues like leaks, disputes, insurance claims or upcoming projects. They are some of the most revealing documents you will read.
5. Bylaws and rules
Check rules on pets, rentals, short-term rentals, renovations, barbecues and parking. If you plan to rent the unit out, confirm rentals are allowed.
6. Building insurance and deductibles
Learn what the corporation’s policy covers and how large the deductible is. Your own condo insurance should include coverage for your share of a deductible.
7. The unit and the building
Look beyond the unit. Check common areas, the parkade, the roof (if possible) and the age of major systems. A home inspection is still a good idea for a condo.
8. Parking and storage titles
In Alberta, a parking stall or storage locker may be titled separately, assigned, or part of the common property. Confirm exactly what comes with the unit.
Make your offer conditional
We recommend making your offer conditional on a satisfactory review of the condo documents. Professional document review services can summarize the key risks for you in plain language.
Looking for the right condo in Calgary? Talk to Apollo Realty Advisors and we will help you find a building you can feel confident about.
