Buyers of condominium homes should be protected in advance of their purchase by conditions and terms in their offer to purchase the property. Especially in the resale market, too many home shoppers risk a disappointing surprise when they buy a "for sale by owner" home, or work with a Realtor who has no condominium education or experience, or perhaps just not enough foresight.
Most Realtors, of course, know that they need to make their buyer's purchase subject to the buyer's satisfaction with the condominium documents. But the Realtor is rare who has devised a way to ensure that the documents received are complete. Some requested documents could be withheld by the seller, who suggests that they don't apply and don't exist. There are also documents that the standard "condominium property schedule" used province wide does not include, but which it is wise to review before finally signing off on the purchase.
Beyond that basic "condominium documents" condition, there are protective terms that can be added to the standard real estate purchase form. Some of these terms should have a "hold back" provision, allowing the buyer to reduce the purchase price if the work required in the term is not performed by possession day. If the seller has not done the carpet cleaning or minor repairs that were agreed to, a proper term will grant the buyers enough money to cover the expense of doing this work after they own the property. Suing to collect such small amounts is not practical, so cash up front is best, but is too rarely asked for on behalf of buyers.
Finally, there are terms of disclosure that can be written into to a purchase contract. These can be broad or specific, and are dictated by the buyer's personal concern over a specific issue or suspicion that something important might not have been revealed. Just one example would be a buyer who could not feel comfortable in a suite where a person had died. This is unimportant to most of us, but very important to some people. It's easy enough to write in a term requiring the seller to "warrant" that nothing like this has happened in the property. But it has to be asked about in advance; otherwise it is not actionable after the purchase is final.
Condominium real estate is obviously a specialized field that I believe should require a separate accreditation. Meanwhile, if a condo seller wants a smooth sale and no follow-up lawsuit, and if a condo buyer wants maximum disclosure and protection, hire a Realtor with condo-specific training, experience and foresight.
Calgary Condominium Directory
