A condo is often the most realistic first home in inner city Calgary. You get a location you could not afford as a detached house, and someone else shovels the sidewalk. But when you buy a condo you are buying into a shared building and a shared budget, so the homework is different from buying a house. Here is the checklist I go through with every first-time buyer.

Start with the condo fee, then look past it

The monthly fee is the number everyone notices first. Ask what it includes. In many Calgary buildings the fee covers heat, water, building insurance, exterior maintenance, snow removal and the reserve fund contribution. Electricity is usually separate. A fee that looks high can be fair if it covers a lot, and a fee that looks low can be a warning sign if the building is not saving enough.

Read the reserve fund study

Alberta condo corporations are required to have a reserve fund study and a plan for funding it. The study estimates when big items like the roof, windows, elevators and parkade membrane will need replacing and what they will cost. Compare the plan to the actual balance in the latest financial statements. If the building is far behind its own plan, fees may rise or owners may be asked for a special assessment.

Look for special assessments in the minutes

Board meeting minutes are where you find out what the building is really talking about. I read the last year or two of minutes looking for words like assessment, leak, engineer, lawsuit and insurance. A building that is openly dealing with a known issue is not automatically a bad buy, but you want the price to reflect it and you want to know before you are committed.

Check the bylaws against your life

Bylaws set the rules on pets, rentals, short term rentals, renovations, barbecues and moving times. If you have a dog, want to rent the unit out later, or plan to replace flooring, check the bylaws first. These rules are enforced and they are hard to change.

Understand parking and storage titles

In some buildings your parking stall and storage locker are titled separately, in others they are assigned by the board or part of the common property. Titled stalls can be bought and sold, assigned stalls can sometimes be reassigned. Know which one you are getting and make sure it is written into the offer.

Ask about insurance

Building insurance costs have changed a lot in recent years, and deductibles in some buildings are high. Find out the building's deductible for water damage and make sure your own condo insurance covers that amount. Your insurance broker will want to see the building's insurance certificate.

Make the offer conditional

In Calgary it is normal to make an offer conditional on financing, a home inspection and a review of the condo documents. Those conditions give you a window, often five to ten days, to do this homework properly. Waiving conditions to win a bidding war is a real risk on a first purchase, and I will always tell you plainly what you would be giving up.

The short version

A good first condo is one where the fee matches what it covers, the reserve fund is on track, the bylaws fit how you live and nothing surprising is hiding in the minutes. If you want help reading a specific building's documents, send me the listing and I will tell you what I would look at first.