What You Need to Know Before Investing in Real Estate

Calgary’s real estate market continues to be an attractive option for first-time investors looking to build wealth through property. But before jumping in, it’s crucial to understand the legal landscape that surrounds property investment. A little preparation now can help you avoid costly surprises later.

Whether you’re planning to rent, flip, or hold for long-term value, here’s a legal checklist every first-time home investor in Calgary should follow.

Clarify Your Investment Strategy

Before getting into legal paperwork, know your “why.” Are you purchasing a property to:

• Rent it out long-term?

• Renovate and resell (flip)?

• Use it as a short-term or vacation rental?

• Hold for appreciation while leasing it short-term?

Your strategy will influence the type of property you buy, zoning rules, tax obligations, and how you structure ownership.

Hire the Right Professionals Early

Successful investors know real estate is a team sport. Ensure you have:

• A real estate lawyer who can review contracts and flag liabilities

• A realtor with experience in investment properties

• A mortgage broker familiar with investor financing

• An accountant or tax advisor who understands property tax implications

These professionals will help you make informed, legally sound decisions every step of the way.

Conduct Thorough Due Diligence on the Property

Before removing conditions or finalizing a purchase, a real estate lawyer can help review:

• Title Searches: Check for liens, caveats, or easements that affect property use or resale

• Zoning Compliance: Ensure the property is zoned appropriately for your intended use (especially if renting or renovating)

• Rental Restrictions: If it’s a condo, review bylaws for limits on short- or long-term rentals

• Development Plans: Review municipal development plans that may impact the property’s future value

Understand Financing and Legal Liabilities

Investor mortgages often differ from primary residence loans. Be sure to:

• Review all financing terms carefully: Are you personally liable? Is the property in your name or a corporation’s?

• Know your debt obligations: Will interest rates or balloon payments impact your cash flow?

• Ensure compliance with lender requirements: Some lenders require minimum rental terms, property condition checks, or property management plans.

Your lawyer can help you navigate loan documents and protect your interests.

Draft or Review Lease Agreements Carefully

If your plan includes renting out the property:

• Use a legally binding lease agreement that aligns with Alberta’s Residential Tenancies Act

• Include clauses for security deposits, maintenance responsibilities, and rules around subletting

• If managing multiple tenants (or suites), be clear about utility responsibilities and shared space use

Your lawyer can draft or review lease terms to help avoid tenant disputes down the road.

Know Your Renovation and Permit Obligations

Planning a flip or value-add renovation?

• Obtain all required permits for structural, electrical, and plumbing work

• Understand the Alberta Building Code and municipal renovation rules

• Use contracts with tradespeople that outline scope, payment terms, and timelines

Legal disputes over unfinished or defective work are common—protect yourself with proper documentation.

Consider Ownership Structure and Liability Protection

Should you buy under your personal name, a holding company, or a joint venture?

• Corporations can provide liability protection and tax advantages

• Joint ownership agreements clarify roles and profit-sharing for investor partners

• Trusts or holding companies may offer succession planning or estate benefits

Speak with both your lawyer and accountant before structuring the deal.

Final Thoughts: Invest Wisely, Legally & Strategically

Investing in Calgary real estate can be a powerful wealth-building strategy—but it’s not without legal complexity. Taking the time to understand your rights, obligations, and risks is the smartest first step you can make as a property investor.

At Integrity Legal Solutions, we work with Calgary investors at every stage—from contract review to title transfers to lease agreements. If you’re ready to take the first step in real estate investing, we’re here to guide you with clarity and confidence.

Ready to make your first investment? Contact our legal team today for a personalized consultation.