Neighbourhoods surrounding the University of Alberta include a mix of older detached homes, infill properties, condominiums, rental housing and properties with secondary suites.
That variety can make the area attractive to homeowners, parents purchasing for students and real estate investors. It also means that buyers should complete property-specific legal, physical and municipal due diligence before the purchase becomes unconditional.
Here’s what to review.
Older Homes and Property Improvements
Many homes in established central neighbourhoods have been renovated, expanded or converted over time.
Before buying, consider whether the property includes:
- An addition
- A finished basement
- A secondary suite
- A detached garage
- A new deck
- Changed windows or entrances
- A shared driveway
- Fences or other boundary improvements
A current Real Property Report may help identify the location of visible improvements and potential boundary or setback issues.
A Real Property Report does not confirm the physical condition of the home, prove that every renovation meets building-code requirements or replace a professional inspection.
Secondary Suites Require Permits
The City of Edmonton requires permits for secondary suites.
A basement that appears to function as a separate rental unit should not automatically be described as legal or authorized. Buyers should request evidence of the applicable development and building permits and may check the City’s completed-permit information.
Relevant questions include:
- Were development and building permits issued?
- Was the permitted work completed and inspected?
- Does the current layout match the approved plans?
- Are there outstanding municipal orders?
- Does the purchase contract make any representation about suite authorization?
- Is the buyer relying on rental income for mortgage approval?
A real estate lawyer can advise on the purchase contract, title and consequences of an identified permit problem.
A lawyer conducting an ordinary closing does not physically inspect the suite or independently certify building-code compliance unless a separate investigation has been arranged.
Infill and Newly Constructed Homes
Infill properties may involve legal considerations such as:
- New or recently subdivided titles
- Zero-lot-line construction
- Party-wall agreements
- Shared access
- Utility easements
- Maintenance agreements
- Development-permit conditions
- New-home warranty coverage
- Builders’ liens
- Incomplete exterior work
Buyers should obtain a professional inspection even where the home is new.
The legal review of title and warranty documents does not replace an inspection or construction-deficiency assessment.
Buying a Resale Condo Near the University
Alberta does not provide every resale condo buyer with an automatic statutory document-review or cooling-off period.
The purchase contract should generally contain a condition giving the buyer time to obtain and review the condominium corporation’s documents before the deal becomes unconditional.
Documents commonly reviewed include:
- Current budget and financial statements
- Reserve fund study, report and plan
- Board and owner meeting minutes
- Bylaws and rules
- Insurance information
- Litigation information
- Existing or proposed special levies
- An estoppel certificate
Alberta’s Condominium Property Act separately requires the corporation to provide requested prescribed documents within 10 days after receiving a proper written request.
That 10-day obligation is a deadline for the corporation to provide documents. It is not an automatic statutory cancellation period for a resale purchaser.
New Condominiums From a Developer
A different rule applies where the unit is purchased from a condominium developer.
Under the Condominium Property Act, a purchaser may generally rescind the developer purchase agreement by giving written notice within 10 days of the later of:
- Receiving all required developer disclosure information and documents; or
- Signing the purchase agreement
Developer agreements can include detailed provisions addressing construction changes, occupancy, delays, deposits and closing adjustments. Buyers should have the agreement reviewed promptly so the statutory period is not missed.
Special Levies and Reserve Funds
A low reserve-fund balance does not automatically mean that a special levy will occur. The balance must be considered in relation to the corporation’s anticipated repair and replacement obligations.
Meeting minutes, engineering reports, insurance claims and recent projects may provide important context.
An existing special levy requires careful review. The condominium corporation may have statutory recovery rights against both the person who owned the unit when the levy was approved and the person who owns it when collection proceedings begin.
The buyer and seller may allocate the cost between themselves through the purchase contract and closing arrangements, but that allocation does not necessarily alter the corporation’s statutory rights.
Rental Properties and Possession
Where the property is occupied by a tenant, the buyer should not assume that the tenancy automatically ends on possession day.
The purchase agreement should clearly address:
- Whether the buyer is assuming the tenancy
- Whether vacant possession is required
- Existing leases and deposits
- Rent and other adjustments
- Notices already given
- What happens if the tenant does not leave as expected
Landlord and tenant rights are governed by Alberta legislation. The required notice and available remedies depend on the tenancy and the reason possession is sought.
This issue should be addressed before the purchase becomes unconditional.
What Your Lawyer Reviews
Depending on the agreed scope of the retainer, the lawyer may:
- Review the purchase agreement
- Search title
- Explain registered interests
- Prepare transfer and mortgage documents
- Review available closing documents
- Coordinate with the lender
- Calculate adjustments
- Receive and distribute funds
- Register the transfer and mortgage
- Advise about identified legal issues
A standard closing does not automatically include a full municipal permit search, physical inspection, condo reserve-fund opinion, engineering analysis or investment-feasibility review.
Buyers should confirm what services are included.
What Closing Costs
Berjak Law’s residential purchase legal fees currently start at $699. Mortgage registration adds $300, and applicable disbursements and transaction-specific charges are additional.
Contact the firm for a detailed quote based on your property and financing.
Berjak Law is located at 10080 Jasper Ave, Suite 301 in downtown Edmonton. Contact us before your University-area purchase becomes unconditional.
