Choosing a Condominium

A conventional condominium is the most common form of condominium. It typically refers to a condominium unit that is located within a building. Unit boundaries are identified by referring to floors, walls, and ceilings, as opposed to markings on a plot of land.

Owners of conventional condominiums have full (freehold) ownership of everything inside the unit based on the boundaries set out in the condominium plan. In some cases, a unit’s exterior windows and doors are part of the unit. In other cases, they may be common property. Check the condominium plan and bylaws to determine what is part of the unit and what is common property.

Common property in conventional condominiums may include air conditioning, plumbing, sprinkler systems, elevators, fitness centres, pools, hallways, lobbies, and exterior spaces like gardens.

A bare land condominium unit is a plot of land that may or may not already be developed. The boundaries of the units (e.g. townhouse, duplex, detached home) are described by reference to survey markers.

Owners of bare land condominiums have full (also called a “freehold” or “fee simple”) ownership of everything inside the unit’s land boundaries, which may include a house, garage, trees, and shrubs. If the unit has been developed, a Real Property Report will show the unit’s boundaries and the location of all structures within the boundaries.

Owners are generally responsible for maintaining everything inside the boundaries of their unit, which makes bare land condo ownership more like traditional home ownership. For example, owners are responsible for shoveling snow, landscaping, and making exterior repairs (such as replacing the roof and siding). However, in some cases,  condominium corporations are responsible under the bylaws for such maintenance and repairs . “Managed property” is any unit or part of a unit that a corporation must under bylaw maintain, repair or replace . Managed property is different than common property as the owner still retains freehold ownership over the managed property.

Common property in bare land condominiums will vary depending on the type of development. It may include sidewalks, roads, parks, and/or recreational facilities like pools or golf courses.

Most commonly associated with the term condominium, high-rise buildings offer new or resale conventional condominium units with a variety of amenities. Some high-rise buildings may be conversion properties. Some may be mixed-use developments with retail or commercial condo units on the lower levels.

Sometimes a more affordable option to high-rise condos, low-rise condominium buildings also offer new or resale conventional condominium units. In Alberta, many low-rise condominium buildings are converted rental properties.

Loft-style condominiums are often converted warehouse, commercial, or industrial buildings. They are available as new or resale conventional condominium units, and the amenities available will vary significantly depending on the property.

Townhouses or rowhouses are a great option for families or individuals looking for outdoor space. They are available as conventional or bare land condominiums.

With conventional townhouses or rowhouses, the exterior is common property that the condominium corporation usually maintains (though potential buyers should always check the bylaws to confirm).

If the townhouse or rowhouse is a bare land condominium, the owner has  ownership of the land up to the property’s boundaries. This means the owner is responsible for landscaping and exterior repairs (e.g. patio or deck) unless the bylaws say otherwise. Sometimes condominium corporations are responsible under the bylaws for such maintenance and repairs.

Buyers should always confirm what type of condominium they are purchasing.

Occasionally, detached homes are part of a condominium complex. A gated community may be an example of a condominium complex that includes detached homes. Common property would include the roadways, sidewalks, and any recreational facilities. Luxury developments may include golf courses or tennis courts as common property amenities.

Developers using a phased development model must follow rules outlined in the Condominium Property Act and Condominium Property Act Regulation. These rules require developers to file a phased development disclosure statement with the initial condominium plan. This statement includes information about:

• the number of buildings
• the number of units for each phase and
• common property elements  (for example, parking, recreation facilities, etc.)

Developers using a barely blended development model do not have to follow any special rules. With a barely blended model, a developer divides a large parcel of land into multiple bare land units. These units are then developed in stages. As each bare land unit is ready for development, it is redivided and developed into a conventional condo building or smaller bare land condo units.

• Developers must provide you with certain documents before you buy
• Once completed, it is move-in ready
• You may be able to customize your unit by picking out finishes, flooring, and appliances
• Reduced risk of having to undergo costly, noisy and intrusive repairs and renovations
• Modern building amenities
• New home warranty coverage

• If construction isn’t complete, you must rely on drawings, floor plans, and sample materials to determine what the condo and common property will look like.
• You may wait months for construction to be compete. Your initial deposit will be tied up until construction is substantially completed.
• If construction is behind schedule, there could be a delay with your move-in date.
• You may have to pay occupancy fees (condo rent) if you move in before you receive the certificate of title from the developer.
• The condominium’s estimated budget could change drastically once the condominium is completed, which could result in increased condo contributions (fees).

Check out the Canada Mortgage & Housing Corporation’s Tips for Buying a New Condo (keep in mind this information is not Alberta-specific)

• The possession date is usually much sooner than a new development.
• You can see what the unit and complex looks like rather than relying on drawings and floor plans.
• The condominium corporation will have an established budget and reserve fund. To see if there are any problems on the horizon, you can review the corporation’s financial statements with your lawyer and document reviewer.
• Talk with other owners, members of the condominium board, and the property manager about the complex.
• Ask to review the condominium board’s meeting minutes for any ongoing problems.

• The unit may not be move-in ready and/or could need renovations.
• The amenities may be older or limited.
• The common property may require significant, costly repairs in the future.
• The seller does not have to provide any documentation. The onus is on the buyer to request important documents.