Will a Lawyer Review Your Alberta Condo Documents Before You Buy?

You have found a condo, and the condition period is short. You want someone to read the condo corporation's bylaws, reserve fund information and financial statements before you commit. You also want to know whether a lawyer does that as part of the purchase.

The answer depends on what you ask the lawyer to do. This article explains what a lawyer's purchase work usually covers, what is not automatic, and how to use a tight timeline sensibly.

This article covers the law of Alberta.

Is a lawyer required to buy a condo in Alberta?

No Alberta government page says a buyer must hire a lawyer. Alberta's Land Titles guidance only suggests getting legal advice and help when you deal with property.

Even so, title review, drafting and giving legal advice on a purchase are reserved to active members of the Law Society of Alberta. Realtors and notaries are not in that group. The exceptions are narrow and cover people such as articling students, Court of Justice agents and university law students.

Your lender may have its own requirements, such as using a lawyer or buying title insurance. Those are practical requirements, not statutory ones, and they vary by lender. Ask your lender what it needs.

What a lawyer usually does on a purchase

A lawyer's core work follows how Alberta registers land. Registering documents at Land Titles is what creates and ends legal rights in the land. Signing alone does not transfer the interest. Registration does.

• Checking title. A title search shows the current owner, mortgages, caveats, easements, builders' liens and other registered interests.
• Completing the purchase by registering an Application for Transfer of Land (form LTS14766).
• Registering the mortgage, which is a charge on the land that secures your loan.
• Arranging witnessing at signing. An instrument signed in Alberta must be witnessed by a person who signs as witness and makes an affidavit in the prescribed form.
• Handling fees. Land Titles will not act until the prescribed fees are received, so a lawyer's trust account usually handles them.

Checking title matters because a certificate of title is conclusive proof that the named person owns the land for the estate stated. There are exceptions, such as fraud in which the owner took part or land included by a wrong description of boundaries, and a buyer can still be affected by these.

Condo documents: what review means and what to confirm

Condo corporation documents are separate from the title search. They usually include the bylaws, information on the reserve fund (money set aside for major repairs) and the corporation's financial statements. Whether a lawyer reads them depends on what you ask for and what is agreed in writing. Do not assume it is included.

A lawyer can explain what the documents mean for your rights and costs. A realtor or notary cannot give you legal advice on them. Lawyers can also tell you what the documents do not answer, such as the condition of the building. For that you may need other professionals.

• Will you review the bylaws, reserve fund information and financial statements, or only title and closing?
• Which documents do you need from the seller or condo corporation, and who requests them?
• How quickly can you give me your views, given my condition deadline?
• What will you flag, and what is outside your review?
• Is the scope of work confirmed in writing?

Working with a short condition period

Condition periods are often tight, and condo documents can take time to arrive. The practical step is to contact a lawyer before you make or sign an offer, or as soon as possible afterward. Have them look at the deadline wording in your contract. Because that wording varies, a lawyer can confirm what it means for you.

Also ask about conflicts. A lawyer may act for more than one client in the same matter only with the clients' consent after the advantages and disadvantages are explained. The lawyer must also warn that information is not confidential between the clients and that the lawyer may have to withdraw if a conflict cannot be resolved. Where a conflict is likely to be high, joint retainers should not be accepted.

A lawyer who has acted for the seller or the lender may be barred from acting for you without that former client's consent. A lawyer may act for both borrower and lender in appropriate mortgage transactions if both consent, and must disclose all material information to both.

What to do next

• Write down your condition deadline and any other dates in your contract.
• Contact a lawyer right away and say you want condo documents reviewed.
• Ask the seller's side or the condo corporation for the documents you need.
• Ask your lender what it requires, and treat that as separate from the law.
• Tell the lawyer about any prior dealings with the seller, realtor or lender so conflicts can be checked.
• Do not sign or waive conditions until you understand what was reviewed and what was not.

If you are unsure whether your situation raises other issues, a lawyer can confirm how the rules apply to you.

Frequently asked questions