Why a Condo Document Review is Essential for Buyers

If you’re buying a condo or townhome, there’s a high chance that your unit is part of a condominium corporation. You must know that when buying this unit, you’re also essentially buying a share of the condo corp., so its well-being should be of particular importance to you. That’s where condo document reviews come into play. Think of them like a home inspection, but for condo corporations, where everything “inside the walls” is left out and exposed for you to review.

In this guide, we explain what condo documents are, what a condo document review includes, and why it is essential for any multi-family buyer.

What is a Condo Document Review?

A condo document review is a detailed report on the health of a condominium performed by a professional third-party inspector. It includes important information on both the physical condition of the unit and the building it resides in, as well as the financial health of the condo corporation it is part of, such as bylaws, financial statements, condo fees, meeting minutes, disclosure statements, and insurance policies and other critical details.

A thorough condo doc review answers questions such as:

• Whether the condo corporation has a healthy reserve fund for future repairs and emergencies
• Whether there have been special assessments in the past and what caused them
• Whether recent building inspections (roof, foundation, mechanical systems, common areas) revealed serious issues
• Whether there are any building defects, lawsuits, or insurance claims involving the condo corporation
• Whether monthly condo fees are likely to increase soon and why

In Alberta, for example, condo buyers often underestimate the importance of a condo document review under the Condominium Property Act. Whether you are buying in Calgary, Edmonton, Regina, Vancouver, Toronto, or another Canadian municipality, your condo docs will determine your rights, obligations, and long-term costs as an owner.

How Condo Doc Reviews Save You Money and Stress

Here’s an example of how a professional condo document review can save you from buyer’s remorse and a stressful after-purchase experience.

Let’s say that you buy a resale condominium in a particular building and find that the reserve fund is quite low. If common-place property was somehow damaged and the reserve fund couldn’t cover the cost, as a shared owner in the condominium corporation, you are responsible for covering a portion of that extra total cost, as would all the other owners in the building.

This is what is called a “special assessment,” and is a huge red flag for any potential buyer in multi-family developments. In extreme cases, owners have been stuck with tens of thousands of dollars in additional bills as a result of a lack of a reserve fund. To replenish the fund, the condo board could also raise condo fees. A low reserve fund could also cause other issues, such as property depreciation and changes to insurance coverage.

You want to avoid such scenarios at all costs, which is why it is extremely important you get a professional condo doc review by a trusted service provider and read each and every page thoroughly, line by line. Some sections of these reports may be quite technical, so don’t hesitate to reach out and ask the third-party reviewer or your real estate agent if you have questions.

Full comprehension of what you’re buying into is absolutely essential to being 100% satisfied with your real estate transaction. Also see this 21-Step Guide for Buying a Resale Condominium.

Condo Documents for Resale Properties

When you are buying resale multi-family real estate, the condo documents you receive – and the information they contain – are somewhat different from those when buying in a brand‑new development. Resale properties mean you will be buying into a condominium corporation that is already up and running, with a track record of decisions, spending, maintenance, and owner behaviour. A thorough doc review for a resale property is your opportunity to see how that history may impact you as the next owner.

Unlike new projects, where much of the information is based on projections and proposed plans, resale condo docs are grounded in actual performance. They include valuable information, including (but not limited to):

• Current and past financials – audited statements, operating budgets, and the reserve fund balance, showing how the board has managed money over time
• Reserve fund study and plan – to see whether contributions and planned projects line up with the building’s age and condition
• History of special assessments – what they were for, how often they occurred, and whether they point to deeper issues with construction quality or past under‑funding
• Meeting minutes (AGMs, SGMs, board meetings) – to understand recurring problems, owner complaints, upcoming projects, and the board’s approach to solving issues
• Arrears and collection practices – how many owners are behind on condo fees and what steps the corporation is taking
• Insurance, legal, and claims history – including lawsuits, building defects, or major insurance claims that could affect your risk and future condo fees
• Bylaws, policies, and general rules – such as pet restrictions, noise restrictions, visitor parking, use of amenities, short-term rental rules (Air BnB, VRBO, etc.)
• Ownership of units – including how many units are rented or owned, which could have an effect on the overall vibe and culture inside the building, including wear-and-tear as well as resale value

Condo Document Review for New Developments

When you buy a new or pre-construction condo from a developer, they must provide a disclosure statement (your condo documents). These outline key details about the project, your purchase agreement, and the developer, including (but not limited to):

• Condo bylaws – especially important for pet owners, smokers, and specific lifestyle needs
• Developer financial health – current budget and latest financial statements
• Plans and drawings – for the proposed or existing condominium (suites, common areas, amenities)
• Specifications – Interior finishings, amenities, and special features promised by the developer
• Phased development disclosure – if the project will be built in stages (more below)
• Condo fees – (or a temporary estimate) for your unit and how they are calculated
• Notice of your 10‑day rescission right under the Condominium Property Act to cancel the purchase agreement (more below)

These new‑build condo documents help you understand exactly what is being built, what is included in your purchase, and what your rights are if anything changes or if you choose not to proceed. Also see these 15 Tips for Buying a New Condominium from a Developer.

Condo Documents for Phased Developments

If you are buying a new condominium that is part of a multi-phase development, your condo documents should include this information in a disclosure statement. They should explain how the overall project will be built out over time and how that may affect you as an owner, including:

• Size of Phases – Minimum and maximum number of suites planned for the full development
• Suite Description – Detailed information about the suites to be built and how they may impact your current purchase
• Common Property – What is considered common property such as hallways, lobbies, amenities, parking, green space, etc.
• Architectural Design – How future phases of development will look relative to older phases, as well as whether there will be any shared amenities between the buildings
• Developer Contribution – How much capital the developer will contribute to common expenses in each phase
• Owner Contribution – How administrative and operating costs will be allocated to owners in each phase of the development
• Phase Cancellation – What happens if future phases are delayed or never completed, including impacts on common expenses and the developer’s budget

Condo doc reviews of phased developments are especially important, as they help you understand the project’s long‑term plan, potential future construction, and how costs and amenities may change as new phases are added—or if they are not built at all. You’ll get a glimpse of how future phases could impact your views or overall living experience, say, if they were to block out the sun from your balcony.

How Long Do I Have to Cancel a New Condo Purchase?

Different municipalities follow different rules. But in Alberta, most new condo buyers have a 10-day cooling-off period under the Condominium Property Act. During this time, you can review the condo documents, order a condo document review, and cancel the purchase agreement if the condo docs are incomplete, missing, or raise serious concerns.

One of the strongest reasons to cancel is if the developer has not provided all required condo documents or disclosure statements within that window. Missing, incomplete, or delayed condo docs are a major red flag and may indicate that the developer is withholding information.

If you are approaching the 10‑day deadline, have not received all of your condo documents, or your condo document review raises serious concerns, contact your real estate agent immediately. They can walk you through your options, help you understand the risks, and assist you with cancelling the purchase agreement if that is in your best interest.

Also, if you are buying a condo in Alberta and are unsure about your condo documents, speak with a local real estate professional or lawyer who understands Alberta’s condo laws.

Do Your Due Diligence: Read Your Condo Docs!

Read every single page and line of your condo document review report to ensure that the home you’re buying is worth it. These reviews are absolutely essential for providing you with peace of mind as a homeowner in a multi-family complex, while helping you understand exactly what you’re becoming part of.

Make sure to partner with a third-party condo document review specialist who can flag red flags in the financials, bylaws, reserve fund, and disclosure statements before you remove conditions.

Book your condo document review today and protect yourself from surprise special assessments, rising condo fees, or hidden building issues.

Condo Document Reviews: Frequently Asked Questions

1. What is a condo document review?

A condo document review is a professional assessment of the condo corporation’s documents—bylaws, financials, reserve fund, meeting minutes, insurance, and legal records—to identify risks and red flags before you buy. It helps you understand the building’s financial and physical health, as well as your rights and obligations as an owner.

2. Do I really need a condo doc review before buying?

Yes. A condo document review is often the only way to uncover issues like special assessments, underfunded reserve funds, lawsuits, or problematic bylaws that could cost you thousands or affect your quality of life. Skipping it means you are buying blind.

3. Who pays for the condo document review?

In most cases, the buyer pays for the condo document review as part of their due diligence costs. However, in some markets or negotiations, the seller may agree to cover or share the cost.

4. How long does a condo document review take?

Most professional condo doc reviews take about 1–3 business days once the reviewer has all the documents. Always build this time into your condition dates so you are not rushed into a decision.

5. Can a bad condo document review help me negotiate?

Yes. If the review reveals serious red flags—such as low reserve funds, frequent special assessments, or major building issues—you can use this information to renegotiate price or terms, request repairs, or decide to walk away while you still can.