Calgary Lenders Condo Document Review - Buyer Beware

Recently, banks and finance companies have started to assert a condition of reviewing condo docs and financial statements of the condominium corporation on closing.  This can, and has, caused serious problems for both buyers and sellers because financial institutions are not disclosing this condition to buyers when commitment papers are signed.

Buyers end up not being able to move into their new home because the bank is not willing to finance, and sellers are faced with the problem of not having their property sold, so oftentimes cannot go ahead with their plans.

In this case, buyers would usually lose their deposit and coiuld face litigation since they have removed conditions and committed to a firm sale at htis point. Also, if you are a seller and cannot close on your next property (purchase) because of this, you could potentially end up in court as well.

If you will be buying or selling a Calgary condominium, be sure that your realtor is aware of this potential problem and that he or she takes appropriate action to protect you.