Investing in real estate is an effective way to diversify your income streams and build long-term wealth. However, the housing market is increasingly competitive, so finding the right investment is essential. Whether you’re purchasing your first home, a strategic investment or a lifestyle upgrade, buying a condominium or strata property comes with unique legal considerations.
Protecting your investment begins with the buying process. Partnering with the experienced Calgary real estate lawyers at One80Law Group ensures a seamless and secure transaction. Before making this big decision, let’s explore condos and strata properties and why collaborating with our professional legal support team can save you time, money and stress.
What Are Condos and Strata Properties?
Condominiums – commonly called condos – and strata properties combine the private ownership of individual units in a building or complex with shared ownership of communal spaces, like hallways, gyms and parking spaces. While the terms are often interchangeable, regional laws primarily determine their use.
Condos and strata properties are usually governed by management structures such as condo boards or strata councils. These structures handle shared responsibilities like maintenance, repairs and rule enforcement. They are regulated by laws specific to the province where the property is located. Owners of these properties typically pay monthly fees for shared expenses, like maintenance and upkeep of the common areas.
Legal Considerations When Purchasing Condos and Strata
The governance of condos and strata properties is established through a combination of provincial laws and local governance structures. An experienced Calgary real estate lawyer familiarises buyers with these frameworks to avoid legal and financial pitfalls.
Your lawyer helps in the following ways:
1. Meticulously reviewing the governing documents, such as:
- Bylaws: These outline the rules and restrictions you must adhere to as an owner.
- Financial statements: These reveal the economic health of the condo corporation, including reserve funds for major repairs.
- Meeting minutes: These provide insight into ongoing issues and disputes within the community.
2. Conducting title searches
- A real estate lawyer ensures the property title is free of liens, mortgages or other encumbrances that could affect your ownership rights. For condos, this includes verifying whether parking stalls or storage lockers are separately titled.
3. Investigate pending assessments and fees
- Condo owners may face unexpected costs like special assessments for major repairs. Your Calgary real estate lawyer will investigate whether any pending assessments could impact your financial obligations after purchase.
4. Verify legal compliance
- Condo developments in Calgary must comply with municipal zoning laws, building codes, and environmental regulations. Your lawyer will verify compliance to avoid future legal issues.
5. Clarify resolution mechanisms
- Understanding how disputes are resolved within a condo community can be crucial. Your Calgary real estate lawyer will clarify the processes outlined in the bylaws, such as mediation or arbitration.
Risks of Purchasing Without a Calgary Real Estate Lawyer
Without professional legal guidance, you could risk missing critical details in the documents, such as restrictive bylaws or financial red flags. These oversights could lead to costly consequences down the line. Other risks that can be avoided include:
- Unresolved title defects or encumbrances that can jeopardize your ownership rights. A real-estate lawyer’s expertise ensures these issues are identified and resolved before closing.
- Unexpected financial obligations, such as special assessments, hidden fees and underfunded reserve accounts.
- Unresolved disputes over bylaws, property boundaries and shared expenses. Your lawyer investigates and helps you navigate these conflicts so that they do not escalate to safeguard your interests.
- Errors in the purchase agreement or failure to meet legal requirements can delay your closing or even nullify the transaction. A lawyer ensures a smooth process from start to finish.
Your Trusted Real Estate Lawyers
Purchasing property can feel like you spend every spare second going to viewings and sitting in traffic. The virtual team at One80 Law Group helps you hunt for one less parking spot. Let us help you navigate the process and provide exceptional service and legal advice. Schedule a consultation today using our contact form.