3 Things to Know Before Buying a Condo

Condos aren’t your everyday property purchase. Wahi spoke with a Calgary-based condo specialist about some key considerations.

By Brett Surbey | 3 minute read

Calgary’s condo market is picking up speed. Before you buy, there are some factors you need to take into account.

Calgary’s condo market is heating up with the rising spring temperatures. According to the Calgary Real Estate Board (CREB), apartment condo sales were up 24% year-to-date. April saw the sale of 822 units alone. With the market moving quickly, you might be tempted to jump on the bandwagon.

Though condos can be more affordable than a traditional house purchase, there’s a lot that goes into buying one. Wahi spoke with Karen MacPherson, a REALTORⓇ with Greater Calgary Real Estate and certified condo specialist, to get her advice for new condo buyers.  

1. Learn How Condos Are Different From Other Property Types 

The first thing is to understand that a condo is not a type of a property, says MacPherson. “A condo is a corporation, and it could be an apartment condo, a townhouse condo, or a number of houses that operate as a condominium,” she explains. “A condominium is a corporation that is formed to manage and improve your investment — you are buying shares in a corporation.” 

This structure is vastly different from buying an apartment or a detached home, and carries different rights and responsibilities than owning a house. 

“Read the bylaws [first], to understand what you can and cannot do,” MacPherson adds. Just like buying shares in a public company, MacPherson recommends looking over how the condo corporation has been managed over the years, and what their reserve fund for repairs looks like, for example. These factors can help you determine how well the board manages the building and its expenses.

2. Read the Fine Print

MacPherson notes that with the condo market heating up, buyers are less inclined to take their time reading over the condo corporation documents, leaving them to their lawyers instead. “It’s important for people to understand what their responsibility is, so read all the documents yourself,” she advises.

Not understanding the fine print can have negative consequences. MacPherson recalls one buyer who had a large dog who purchased a condo that only allowed smaller dogs. Her Realtor hadn’t informed her of the by-law, and she hadn’t read the documents herself. She ended up having to move out days after her purchase. 

MacPherson also recommends getting the aid of a condo document analyst when possible. Finding someone with years of experience in the industry can give you insights into the building that other professionals may not have.

3. Have a Seat at the Table

A condo owner and decade-long board member herself, MacPherson advocates for condo buyers to get involved in the management of their building. After all, they have a vested interest in seeing their investment grow. 

“If you have any special skills or talents that can be [utilized] to better manage the corporation that also helps you better manage your investment,” she says.

Being a condo board member gives you first-hand knowledge about how the funds are being managed, why prices may fluctuate, why condo fees may be getting higher, and how your investment is doing. “When I look at my condo fees, I know exactly where [that money] is going. “Macpherson explains “ … and how well-managed the [the building is]. “