Real Estate Law is a bundle of rights and duties that accompany interests in land and property. Our Real Estate lawyers oversee matters regarding Purchases and Sales (Residential, Commercial, and Agricultural), Mortgages, Agreements for Sale, Financing, Leases, Options, Foreclosures, Sub-Divisions, and Condominiums.
Team Members: Jim Oake, Steve Andrew, Bob Engels, Richard Der, Chau Nguyen, Annie Espiritu, Betty Chan, Cindy Kellett

Frequently asked questions about Real Estate Law:
What is a Purchase Contract?
What is the difference between buying a residential home and a condominium?
What is the legal procedure when I sell my property ?
What is the legal procedure when I purchase a property?
What is a Real Property Report?
What is a Compliance Certificate?
What items stay with the house?
What other costs will you have?

What is a Purchase Contract?

Generally speaking, when you sell or purchase a home, you will likely sign what is called a Real Estate Purchase Contract approved by the Alberta Real Estate Board. This is the Standard Form used by real estate agents. Such a Contract includes the following key clauses:

• Parties involved
• Price
• Deposit
• Payment conditions
• Additional conditions
• Interest provisions
• Possession date
• Warranties and Representations
• State of Title
• Delivery of documents
• Compliance
• Forfeiture on default
• Commission

You should review the Real Estate Purchase Contract with a lawyer before signing to ensure that you understand the terms of the contract and that any additional or special conditions you need to include are included. You can also obtain purchase contracts from a stationery store which may or may not include the key clauses shown above. If you choose to use this type of contract, you should review the Contract with a lawyer before signing.

What is the difference between buying a residential home and a condominium?

1. By-Laws:

Purchasing a condominium is different from purchasing a residential home in many ways. Some of the key differences are as follows:

2. Condominium Levies or Special Assessments:
Another difference when purchasing a condominium is that you will have to pay condominium levies which are commonly known as monthly condominium fees. As a buyer, you will be given an estoppel certificate which indicates that all condominium fees have been paid to the date of closing. You should contact the condominium corporation to determine if the condominium association has passed any special levies payable in the future. Such levies could be substantial and could affect your decision to buy.

3. Parking Stalls:
When purchasing a condominium, you should determine what you are entitled to with respect to owner parking and guest parking. Generally, most condominium complexes have specified parking for owners. However, you should check with the condominium corporation to determine guest and additional parking stalls.

4. Financial Statements:
The condominium corporation must provide yearly financial statements. As a buyer, you should review such statements yourself or with an accountant before purchasing a unit. The financial statements will indicate the financial position of the condominium corporation and will indicate if there are surplus funds available to deal with future repairs to the complex and common areas. If the condominium corporation is in financial difficulty, they may have problems meeting their obligations, such as repairs, and as such have a serious effect on the value of the units.

5. Condominium Corporation:
When you purchase a condominium, you become a member of the condominium corporation. As a member, you have a right to vote and attend meetings of the condominium corporation to deal with issues of finances and by-laws. You should check with the Board of Directors to familiarize yourself with any issues concerning the Condominium. You should review any Reserve Fund Study obtained by the Condominium.

When you purchase a condominium, the Condominium Corporation will have insurance coverage for the entire complex, but not for your contents, improvements to the unit, or your liability. Condominium Owners Insurance should be obtained.

What is the legal procedure when I sell my property?

1. Preparation and signing of documents: You will be required to attend our offices to sign the transfer documentation. We will send the documents together with the Real Property Report or Condominium Package to the Buyer's lawyer.

2. Obtain Real Property Report or Condominium Package: In the event there is no recent Real Property Report or if the contract requires a new Real Property Report, we will order a new report and submit such to the municipality for compliance. In the event compliance is denied, we will discuss with you the possible remedies and course of action you can take. In the event we cannot rectify the deficiencies before the closing date, there may be a hold back pending resolution of the deficiencies regarding the Real Property Report. In the event you are selling a condominium, we will order a condominium package from the Condominium Corporation if you have not already done so. The condominium package will include: by-laws, financial statements, certificate of insurance and the estoppel certificate.

3. Pay out any encumbrances, mortgages, real estate commission, and legal fees: Once we receive the sale proceeds from the Buyer's solicitor on the closing date, we will immediately pay out your mortgage or any other financial encumbrances registered against the property. We will also pay our legal fees and outstanding real estate commissions owing from the sale proceeds.

4. Net sale proceeds will delivered to you once we have paid out the items mentioned above.

What is the legal procedure when I purchase a property?

1. The first thing that will happen is that we will contact you to determine how you wish to be described on title, either joint tenancy or tenants in common.

2. We will then have you come into our offices to execute the documentation, primarily the transfer of land and mortgage documents (if applicable) and to bring in any required funds. These funds represent the difference between the cash to close less the mortgage funds, plus legal fees and disbursements. The cash to close represents the difference between the purchase price less the deposit with adjustments made for taxes, rent, damage deposit, or condominium fees.

3. In the purchase of a residential home, we will review the Real Property Report with you. If there are no problems with the property in terms of municipal compliance, we will then submit the documents for registration. If there are any deficiencies in the compliance of the property, we will discuss your options.

4. Once we obtain registration of the transfer of land from the Land Titles Office, we will requisition the mortgage funds if there is a new mortgage and send the cash to close to the seller's lawyer on the closing date. Once the seller's lawyer receives the cash to close, keys will be released to you.

What is a Real Property Report?

A Real Property Report is a legal document prepared by an Alberta Land Surveyor that illustrates in detail the location of relevant, visible improvements relative to property boundaries. It generally takes the form of the plan or drawing of the various physical features of the property including a written statement detailing the surveyors opinions or concerns. A Real Property Report is a necessary document to determine whether or not a property complies with municipal bylaws.

What is a Compliance Certificate?

A Compliance Certificate is a review by the municipality and their certification which indicates whether or not the improvements on the property meet the requirements of the local land use bylaws. The Compliance Certificate will state that the property meets the requirements as they now are (or as they were at the time that the building was constructed). Any lack of compliance including construction without development or building permits will be noted.

What items stay with the house?

Include in the Offer to Purchase (the purchase agreement) any personal property to be included in the purchase price. Personal property refers to items that are not attached to the land or buildings, such as drapes and appliances. To avoid any difficulty ensure that the Offer to Purchase specifically includes or excludes specific items which are of importance.

What other costs will you have?

In addition to the actual purchase price keep in mind that you will have the following costs which should be discussed with your lawyer:

• Legal fees including out-of-pocket expenses (disbursements).
• Property tax adjustment to represent your share of the year's property taxes.
• Insurance for fire and other hazards.
• Opening of utility accounts.
• Real property report, if required.
• GST on new housing, surveyors charges, and Realtor's fees