Condo buyer Jeremy Stadler found himself pondering some of these questions as he shopped for his new home. A condo building that he visited for more information set off warning bells in his head – the sales office was unfinished, the promotional materials were photocopied and the real estate agent in charge of sales informed him that the builders prefer to remain anonymous.

He was right to be wary of the situation, says Louise Challes, general manager of Condo Check, a condo document review service. “Basically, if they’re not willing to disclose information about who is building this, why would they think people would want to spend almost $200,000 and just give their money away?,” wonders Challes.

There are other red flags to watch out for, says Challes. The big one is if the salesperson or builder will not disclose information that you request. Under the Condominium Property Act of Alberta, builders must provide you with all condo disclosure documents. If they are unwilling to do this, you might stop to wonder why. You, the buyer, have ten days to review these documents and make your final decision.

An alarm should also go off in your head if your concerns are answered with the comment, “Don’t worry about it; there won’t be any problems.” Verbal reassurance means nothing in a situation involving this much money.
“You wouldn’t buy a car without test-driving it,” says Challes. “And that’s far less money than a condo. It’s just sad that people don’t check it out a little bit better.”

Challes is quick to point out, however, that most condos are good and reputable, and the “bad eggs” are few and far between, but urges buyers to check to make sure. Luckily, there are a number of resources available to buyers to make sure they are getting a straight deal.

Memberships are a good place to start. By contacting the Alberta New Home Warranty Program, buyers can find out whether or not their developer is a member in good standing and, if they are, how long they have been members. If the developer does not belong to the Home Warranty Program, you should ask what type of alternative warranty they have in place. The Alberta New Home Warranty Program also offers an online guide to buying a condo, at http://www.intheknowcondo.com. The guide walks buyers through what to ask before buying, the purchase process, and beyond, and will be available in hard copy later this summer.

As a next step, buyers should contact the Calgary Regional Home Builders Association (CRHBA) to find out if the builder is a member. Donna Moore of the CRHBA suggests finding out if the builder has a third-party warranty, as well as contacting the Better Business Bureau or Consumer  and Corporate Affairs.

The Better Business Bureau can tell you more than if the company is a member. In fact, the BBB takes complaints for both members and non-members, any of which can be accessed by the public. As long as a complaint is made in writing, says Dianne Richard, director of communications for the Better Business Bureau of Southern Alberta, it is lodged as a complaint, which is available to the public. If a complaint is only made verbally, it is logged in the comments section of the Bureau’s website.

Concerned buyers may contact the Bureau to make an inquiry. If the BBB does not currently have any information regarding the company, they will send out an inquiry request to the company.

Not only should you check on your developer, you should also know the background of your realtor, and the contractors building your new home. Gerald Rotering, a condo-specialist realtor himself, stresses the importance of employing a realtor who is an expert on condos. Of course, it is obvious that you are best served as a customer to go through an expert in the field, but this point may be forgotten when you actually choose a realtor. Shop around, and do your research. Again, referrals from other condo buyers can be a good place to start.

Challes recommends checking on your contractors by verifying their memberships with industry organizations. For example, roofing contractors should belong to the Alberta Roofing Contractors Association. She also points out that any general contractors should have portfolios of their work that you should be allowed to peruse. Also ask your developer about warranties on major, communal items such as the boiler and roof, and ask to see the documentation.

More importantly, you should ask about what your builder has built before. Ask to speak to past buyers in their developments. If this is the first project the builder has worked on, find out about their background in general.

Do they have experience in the industry? Who are the principles of the company? Challes says that while it can be riskier to buy from a brand-new builder, it is not necessarily a bad thing. Just like in any other situation, you need to do the research and feel safe in your decision.

Other areas you should research before buying include who runs the condominium board; the by-laws of the condo; the development’s budget and reserve fund; and condo fees. Also discuss the possibility of an Interim

Occupancy Clause, to be used in the event that when your new home is completed, the developer has not yet registered the Condominium Plan with the Land Titles Office. In this case, the developer will not be able to provide you with the Title to your property. An Interim Occupancy Clause will allow you to move into your home regardless of this situation, as well as ensure that the developer receives your mortgage payments until the Title is made available.

Once you have all the documents in your hands, it is not a bad idea to have them checked over by a professional. While you may know an accountant or a lawyer who is willing to look them over, it is in your best interest to take your documents to a condo document expert who knows how to methodically review them.

As Challes warns, don’t be impressed by deeply discounted property, and don’t follow the crowd. Just because the salesperson reassures you that the building is 75% sold, don’t assume that those other buyers knew any more than you do. It is entirely possible that they didn’t do their research. And discounts shouldn’t be what you’re looking for in real estate – this is a serious investment, and big discounts in price should be another red flag.

After all considerations have been made concerning the building and all companies involved, you may be left staring at the vacant lot across the street and wondering what will become of it. Or, you may worry that you won’t always have that great view of the mountains, if a tall building is built next door. If the land is part of a phased development plan, your developer must disclose the plans for how it will be used, whether for parking, another phase of the building, or common space. If your developer does not own the land, they may still know of any future plans for it. You may also contact the municipal planning department to learn of permitted uses, land zoning and any pending development permits.

As for Stadler, he is now comfortable in his new home – not in the development that set off warning bells. His advice to other condo buyers? “The only advice I have, as a first time buyer, is: don’t be afraid to be picky. If something doesn’t feel right, don’t go with it.”