Alberta Residential Purchase Contract EXPLAINED: What Every Home Buyer Needs to Know to Avoid Costly Mistakes

If you’re buying a home in Alberta, understanding the Alberta Residential Purchase Contract is essential. This document isn’t just paperwork—it’s the foundation of your home-buying journey, protecting your rights as a buyer while setting clear expectations for both parties.

But don’t worry—I’ve got you covered! Today, we’re going to break down the entire contract into simple, clear sections so you know exactly what to expect and what to look out for. Whether you’re a first-time buyer or a seasoned homeowner, this guide is packed with tips and insights to help you avoid costly mistakes.

Quick disclaimer: While I’ll be sharing helpful information, this blog is for educational purposes only and not a substitute for professional advice. Always consult your real estate agent, mortgage professional or lawyer for guidance specific to your situation.

Let’s dive in!

Alberta Residential Purchase Contract: What Every Home Buyer Needs to Know

The Alberta Residential Purchase Contract is a legally binding agreement used when buying or selling non-condo residential properties. Whether you’re buying a detached home, townhouse, or duplex, this contract outlines everything you and the seller need to agree on, including:

• Offer Amount: Your proposed price to purchase the property.
• Possession Date: The day you officially take ownership.
• Conditions and Terms: Critical elements that protect your interests.
• Responsibilities: The obligations of both buyer and seller.

It ensures transparency and protects buyers and sellers by clearly defining what’s included in the transaction and the expectations for both parties.

Quick Tip: If you’re purchasing a condo, you’ll use a different contract that includes specific sections for condo fees and bylaws.

Section 1: Understanding Property Details in Your Alberta Home Purchase

Section 1 of the Residential Purchase Contract is all about making sure there’s no confusion about what you’re buying. Let’s break it down together.

Legal Description and Address

This part specifies the exact property you’re purchasing, including:

• Municipality and Postal Code: For this example, it’s Calgary, Alberta, T2J 0H9.
• Legal Description: Found in the Land Titles Office, this includes details like the plan, block, and lot number (e.g., Plan 272JK Block 44 Lot 14). Think of it as the property's unique ID.
• Municipal Address: The physical street address, like 659 97 Avenue SW, so there’s no ambiguity.

This section ensures everyone knows precisely which property is being purchased—no mix-ups!

Unattached Goods

Unattached goods are items not permanently fixed to the property but included in the sale. For example, the seller has agreed to include items such as:

• Refrigerator
• Stove-electric
• Dishwasher
• A bar fridge
• Central air conditioner
• Garage heater
• TV mounts (2)
• Window coverings

It’s essential these items are listed here because they don’t automatically stay with the home unless specified. Always double-check during your walkthrough to ensure the listed goods match what’s in the contract.

Attached Goods (Except For...)

Attached goods refer to items permanently fixed to the property, like built-in appliances or light fixtures. While these typically stay with the property, this section allows the seller to exclude specific items. For instance, if they want to take the pool table, hot tub, wine fridge or a beloved kids curtains, it must be listed here.

This section ensures there are no surprises when you take possession.

Why This Matters

Section 1 sets the stage for what you’re buying—not just the house itself, but the items that come with it. It’s a key part of protecting your expectations as a buyer and ensuring everything is clear for both parties.

Pro Tip: Review this section carefully and ask questions if anything feels unclear. If something is missing, your real estate agent can negotiate to include it before signing the contract. The details matter in a purchase contract!

Section 2: Purchase Price and Possession Day Explained for Alberta Buyers

Let’s talk about one of the most exciting (and critical) parts of your purchase contract: the purchase price and completion day (possession day). These details set the financial and timeline expectations for both you and the seller.

The Purchase Price

For example, if you and the seller agree on a purchase price of $783,000, this becomes the amount you, as the buyer, will pay for the property. It’s important to remember that this price includes any applicable Goods and Services Tax (GST). GST generally applies to new homes or substantially renovated properties, while resale homes are usually exempt. However, it’s always a good idea to confirm with your agent to avoid any unexpected surprises.

Completion Day (Buyer's Possession Day)

Completion day is the moment when everything becomes official! For example, completion day is set for 12 noon on January 10, 2025. By this time:

• The full purchase price will be paid through your lawyer.
• You’ll receive vacant possession, meaning the property is yours to move into, free of tenants or sellers.
• Completion day must be a business day—not a weekend or holiday—since lawyers, banks, and the Land Titles Office won’t process transactions on those days.

Pro Tip: Although the contract states possession is at 12 noon, it typically occurs around that time, as the keys are handed over only after the funds have been received and confirmed by the seller's lawyer.

Seller’s Warranty

The seller makes a critical promise here: on completion day, the property will be in substantially the same condition as when you made your offer. This means:

• No unexpected damage or significant changes to the home.
• All attached and unattached goods (like appliances or window coverings) will be in the home and in normal working order.

Why This Section Matters

This section protects both you and the seller by clearly defining the financial and timing commitments. It ensures you know when the property officially becomes yours and guarantees the condition of the home at the time of possession.

Pro Tip: To avoid surprises, schedule a final walkthrough 24 hours before completion day. It’s your chance to confirm the home’s condition and make sure everything included in the contract—like appliances—is in working order. This small step can save you from unexpected headaches after the keys are handed over!

Section 3: General Terms and Buyer-Seller Responsibilities in Alberta Contracts

Section 3 outlines the foundational rules and responsibilities for both the buyer and seller to ensure a fair and efficient transaction. Here’s how this section protects and guides you as a buyer:

Good Faith and Representation

Both parties agree to act reasonably and in good faith throughout the process. This means being honest, cooperative, and adhering to the terms of the contract. Each party is typically represented by their own real estate agent, who solely advocates for their client’s interests. Unless otherwise agreed, your agent is only responsible for representing you—not the other party.

Alberta-Specific Rules

This contract is governed by the laws of Alberta, and all timelines and deadlines follow Alberta Standard Time. "Time is of the essence" means that every date and time specified in the contract will be strictly enforced. For example, missing a deadline for a condition, like financing, could void the contract.

Business Day Definition

Business days exclude Saturdays, Sundays, and statutory holidays, which ensures clarity for deadlines.

Material Latent Defects

The seller is obligated to disclose any hidden issues with the property that they are aware of and which could affect its value or use, such as mold behind walls or a structural defect. These are issues that wouldn’t typically be discovered through a standard inspection. This clause protects you from unexpected problems post-purchase.

Due Diligence

Both the buyer and seller must take responsibility for their own due diligence. For buyers, this means reviewing critical documents like the Real Property Report (RPR), the land title, and any registrations on title. It’s also your responsibility to verify details like the seller’s residency status (for tax purposes) and any potential dower rights. If you skip these steps, you assume the risks of any issues that arise later.

Amendments and Advice

If any changes to the contract are needed, they must be agreed upon in writing. Verbal agreements won’t override what’s in the written contract. Before signing, both the buyer and seller are advised to read the document thoroughly and seek legal or professional advice if necessary.

Data Collection and Privacy

For statistical and evaluation purposes, brokerages, real estate boards, and listing services may collect and publish details about the transaction, such as the sale price and date.

Legal Documentation and Closing

The seller’s or buyer’s brokerage is responsible for providing this contract and related documents to the appointed lawyers to facilitate a smooth closing process.

Why This Matters

Section 3 ensures a transparent and legally compliant transaction while protecting both parties' interests. For example, if a latent defect, known by the seller, isn’t disclosed by the seller, the buyer may have legal recourse even after the sale is complete. Similarly, failing to meet deadlines or complete due diligence can expose you to financial or legal risks.

Section 4: Alberta Real Estate Deposits – What Buyers Must Know

Deposits play a vital role in any real estate transaction, serving as a good-faith commitment from the buyer and providing some financial security to the seller.

The deposit is a good faith payment showing the seller you’re serious about the purchase of the property. In Alberta:

• Deposit is negotiated between the buyer and seller; however it can be  approximately 5% of the purchase price, but can vary depending on the circumstances.
• It’s typically due within 1-3 business days of offer acceptance.
• The deposit is held in trust until conditions like financing and inspections are met.
• If you are not satisfied with any of the conditions for a valid reason, your deposit will typically be returned.

Pro Tip: Deposits are usually made via bank draft or wire transfer. Avoid delays by ensuring the funds are easily accessible in advance. Keeping the money in a traditional bank account can help streamline the process and prevent any last-minute complications.

Who Holds the Deposit?

The seller and buyer agree that the deposit will be held by a trustee—typically the listing brokerage (i.e. RE/MAX First). This ensures that the deposit money is safeguarded in a trust account until it’s time to disburse the funds.

When and How is the Deposit Paid?

The buyer agrees to pay a deposit of $30,000, for example, via bank draft or wire transfer by January 11, 2025. This deposit forms part of the total purchase price and must be paid on or before the agreed-upon date.

If an additional deposit is required, details such as the amount, payment method, and due date must also be specified.

What Does the Trustee Do?

Once the trustee receives the deposit, they are required to deposit it into a trust account within three business days. It’s important to note that no interest will be paid on the deposit to either the buyer or the seller, as the funds are securely held in trust.

When and How is the Deposit Disbursed?

The disbursement of the deposit depends on the circumstances of the contract:

• To the Buyer: If a condition isn’t met (like financing or inspection and despite the buyer's best efforts); the deposit is returned to the buyer.
• To the Seller: If the contract conditions are satisfied or waived, but the buyer fails to follow through (for example, by not paying the purchase price), the deposit is typically forfeited by the buyer and goes to the seller.
• Brokerage Fees: Some of the deposit may also be applied directly to pay the real estate brokerage fees, with any remaining balance going to the seller’s lawyer.

Why This Matters

Section 4 ensures transparency and fairness when it comes to managing deposits. It protects both the buyer and seller by providing clear rules for how the money is handled and what happens if something goes wrong. For example, if the seller doesn’t meet their obligations or if you, as the buyer, need to back out due to unmet conditions, you can feel confident that your deposit is safeguarded.

Important Note: The brokerage holding the deposit in a real estate transaction is responsible for following all applicable rules and regulations. For specific details about your deposit, including conditions for its return, we strongly recommend discussing with your real estate agent.

Section 5: Securing a Clear Title in Alberta Home Purchases

When you buy a home, ensuring you receive a clear title is one of the most critical parts of the process. Section 5 of the contract outlines the seller’s responsibility to provide title free from any unexpected financial or legal burdens, except for specific conditions already agreed upon. Here’s what this means:

1. Free of Encumbrances and Liens: The title must be clear of any debts, such as unpaid loans or contractor liens. These financial obligations must be resolved by the seller before ownership is transferred.

2. Implied by Law: Certain rights or restrictions come with owning property, like zoning laws or public road access.

3. Non-Financial Obligations: Things like utility rights-of-way, easements, or homeowner association caveats may remain on the title. These are typical for many properties and usually don’t interfere with ownership. For example, an easement may allow utility companies access to part of the property for maintenance, which is common and expected. However, these need to be reviewed for each individual property.

4. Agreed Assumptions: If there are any additional obligations tied to the property—such as a shared fence agreement or community covenants—you must explicitly agree to take them on in the contract.

Pro Tip: Always have your lawyer carefully review the title and explain any registrations or caveats. While most are standard, you’ll want to ensure there’s nothing unexpected that could limit your use of the property or lead to added costs down the road.

Section 6: Seller Promises and Warranties in Alberta Real Estate Contracts

When purchasing a home, Section 6 ensures that the seller is making specific promises about the property’s legal status, condition, and compliance. These representations are critical to protecting your interests and ensuring there are no unpleasant surprises after the deal closes. Let’s break it down:

What the Seller Promises:

1. Legal Right to Sell:
   The seller confirms they have the legal authority to sell the property. This means there’s no third party with ownership rights or claims that could interfere with the sale.

2. Tax Status:
   The seller declares they are not a non-resident under Canada’s Income Tax Act. This is important because non-residents are subject to additional tax obligations, which could complicate the sale if not addressed.

3. Goods Included:
   The seller guarantees that the attached (e.g., built-in appliances) and unattached goods (e.g., fridge, washer, dryer) included in the sale are legally theirs to sell and are not under any lien or legal dispute.

4. Compliance with Municipal Bylaws:
   The seller ensures that the property’s current use and any improvements comply with municipal land use bylaws and restrictive covenants registered on the title. This ensures there’s no unauthorized use of the property.

5. Building Location and Compliance:
   The seller promises that all buildings and improvements are:

   • Properly located on the property (not encroaching onto a neighbour’s land, easements, or rights-of-way unless authorized).
   • In compliance with municipal bylaws, regulations, or restrictive covenants, or classified as "non-conforming buildings" under Alberta’s Municipal Government Act.

6. Material Latent Defects:
   Any significant hidden defects (e.g., mold behind walls or structural damage) that the seller knows about must be disclosed in writing.

7. Government Notices and Permits:
   The seller must disclose any government or local authority notices (e.g., zoning changes or road expansions) and any unpermitted developments on the property that they are aware of.

When These Promises Apply:

• As of Completion Day: All representations must be true on the day the property ownership transfers to you.
• Survival After Completion: These promises remain enforceable even after the sale is complete, but any legal action must comply with Alberta’s Limitations Act.

Why It Matters:

This section protects you as the buyer by ensuring the seller is being transparent about the property. For example, if the seller knows of a material latent defect but fails to disclose it, you can seek legal recourse even after the sale.

Pro Tip: Work with your real estate agent to review all disclosures and ask questions about any unclear details. It’s much easier to address potential issues upfront than after you’ve taken possession.

Section 7: Alberta Dower Rights – What Buyers Need to Know

 If you’re buying a home in Alberta, you may come across something called "dower rights" in the Alberta Residential Purchase Contract. This legal concept, rooted in Alberta's Dower Act, is designed to protect the property rights of a non-owning spouse.

What Are Dower Rights?

Dower rights mean that if only one person is listed on the property title, but that person is legally married, their spouse must consent to the sale of the property. This prevents one spouse from selling a home without the other’s knowledge or approval. If these rights apply, specific steps must be taken to ensure the sale proceeds smoothly and legally. Let me break this down for you.

When Does Dower Apply?

Dower comes into play under these conditions:

1. One Owner on Title: If only one spouse’s name is on the property title.
2. Legally Married: Common-law relationships, even long-term ones, do not qualify for dower rights under Alberta law.
3. Has the non-owner spouse resided at the property: The lawyer may review this as well for relevancy if dower applies

The Seller’s Responsibility:

If the seller claims no spouse has dower rights in the property, they warrant this as true. If dower rights do apply, the seller must:

1. Spouse’s Signature:
   The non-owner spouse must sign this contract to indicate their consent to the sale.

2. Dower Consent and Acknowledgement Form:
   The seller must provide a completed Dower Consent and Acknowledgement form by the agreed date. This form confirms the non-owner spouse’s agreement to the sale and is legally required for the contract to be valid.

Why It Matters:

Dower rights ensure fairness and transparency in property transactions, especially in situations where both spouses have a stake in the home. If dower rights aren’t properly addressed, it could delay the sale or even make the contract invalid.

Section 8: Key Conditions in Alberta Real Estate Contracts

Conditions are a critical part of any purchase contract because they protect both the buyer and seller by providing time to confirm important details before the agreement becomes binding. Let me walk you through this section and what it means for you as a buyer or seller.

Acting in Good Faith

Both the seller and buyer agree to act reasonably and in good faith when working to satisfy their respective conditions. This means making a genuine effort to fulfill these requirements, whether it’s arranging financing, conducting a property inspection, or completing a sale. Each party also agrees to pay any costs related to their own conditions.

Buyer’s Conditions

Buyer’s conditions are designed to protect you as the buyer, ensuring that everything checks out before you fully commit to the purchase. Here are the most common ones:

FINANCING CONDITION

The financing condition is one of the most common and vital safeguards for buyers. It ensures that your purchase is contingent on securing the necessary mortgage or financing. You’ll have until the specified date and time (Condition Day) to get that approval.

• Why It Matters: This protects you from being locked into a contract if your lender declines your application or the terms aren’t satisfactory.
• Seller’s Role: The seller agrees to cooperate by providing reasonable access to the property if required by your lender.

PROPERTY INSPECTION CONDITION

This condition allows you to hire a licensed home inspector to thoroughly examine the property before the Condition Day.

• Why It Matters: It ensures there are no major issues like structural damage, plumbing concerns, or electrical problems that could change your mind about the purchase.
• Seller’s Role: The seller must provide access to the property for the inspection.

SALE OF BUYER'S PROPERTY

If you need to sell your current home before buying the new one, this condition applies. The terms for this are outlined in the Sale of Buyer’s Property Schedule (attached to the contract).

• Why It Matters: It prevents you from being financially stretched or owning two homes at once if your current home doesn’t sell in time.
• Seller’s Role: This condition can make your offer less appealing in competitive markets, so having a clear and realistic plan for selling your home quickly is essential.
• Important Note: Most buyers don’t realize that by using the Sale of Buyer’s Property condition, their home typically needs to be listed for sale on the MLS within 24-48 hours of the accepted offer.

ADDITIONAL CONDITIONS

Sometimes, buyers have unique conditions, like confirming that the property can support a future development (like building a garage) or verifying zoning requirements. These must also be satisfied by the agreed Condition Day.

Timeline and Deadlines

Timelines are critical in Alberta’s purchase contracts. For example, if you miss the financing condition deadline because your mortgage approval isn't finalized, both parties can agree to extend the conditions or the conditions time frame can expire; allowing the seller to accept another offer. This can be devastating, especially in a competitive market. That’s why it’s essential to work closely with your real estate agent and lender to ensure everything is submitted and approved on time.

Clear communication and proactive planning are key to meeting these critical timelines and keeping your dream home within reach. Key points to keep in mind:

• Offer Deadlines: Offers must be signed and accepted within the specified time.
• Condition Dates: Condition deadlines are firm dates and times by which buyers must satisfy or waive specific conditions, like financing or inspection, to keep the purchase contract valid.
• Alberta Standard Time: All deadlines operate on Alberta Standard Time, even if parties are in other time zones.

Pro Tip: Stay on top of deadlines and communicate clearly with your real estate agent. Missing a Condition Day could mean losing the property or forfeiting your deposit.

Condition Notices

The buyer is required to provide written notice once a condition is either:

• Waived or Satisfied: If a condition is met or waived by its Condition Day, the contract moves forward.
• Not Waived or Not Satisfied: If a condition isn’t met or waived by its deadline, the contract automatically ends, and any deposits are typically returned to the buyer.

Important Note: Whether you’re a first-time buyer or relocating to Calgary, avoiding common pitfalls is key to making a confident and informed decision. Avoid these 75 Costly Home Buying Mistakes.

Section 9: Additional Terms and Documents for Alberta Buyers

This section outlines the extra documents and terms that are attached to and form part of your purchase contract. These additional schedules and agreements are critical because they address unique aspects of the transaction that might not be covered in the main contract. Let’s break this down in detail.

Attached Documents

Depending on the specific details of your purchase, one or more of the following schedules or documents may be attached to the contract:

1. Financing Schedule (Seller Financing, Mortgage Assumption, Other Value):
   If the purchase involves seller financing, assuming an existing mortgage, or any other non-traditional financing arrangements, this schedule outlines the terms in detail.

2. Tenancy Schedule:
   If the property is occupied by tenants, this schedule provides details about the tenancy, including lease agreements, rental income, and notice requirements.

3. Manufactured Home Schedule:
   For manufactured homes, this schedule addresses specifics like the land lease or ownership, unit details, and any additional considerations.

4. Sale of Buyer’s Property Schedule:
   If your purchase is contingent on selling your current home, this schedule explains the conditions, timelines, and requirements for the sale.

5. Addendum:
   This document covers any extra terms or agreements that don’t fit into the standard contract format.

6. Other Documents:
   Any additional agreements or disclosures relevant to your purchase

Other Terms

This is where any special agreements or acknowledgments between the buyer and seller are outlined. In this case:

• ie: Seller Will Allow Buyer to Do Walkthrough 24 Hours Prior to Possession:
  This ensures the buyer has the opportunity to inspect the property one final time before taking possession. This can provide peace of mind that the property is in the agreed condition and that any included items are present and in working order.

Conditions vs. Terms – Know the Difference

Understanding the difference between conditions and terms is so important when reviewing your contract.

Conditions are deal breakers—if they’re not met, the deal is void. For example:

• Financing approval
• A buyer's satisfactory property inspection
• Confirmation from the city that a garage can be built

Terms, on the other hand, are agreements or requests that don’t void the deal if unmet. For example:

• A walkthrough 24 hours before possession
• The seller agreeing to leave behind specific furniture

Pro Tip: Conditions are there to protect you as a buyer, while terms help smooth out the process. Make sure you’re working with your real estate agent to use both correctly and ensure everything is clearly written in your contract.

Waiving Conditions vs. Non-Waiving Conditions in the Alberta Residential Purchase Contract

When navigating the Alberta Residential Purchase Contract, understanding the distinction between waiving and non-waiving conditions is vital. These concepts determine whether the agreement proceeds or concludes without penalties.

Waiving Conditions

Waiving a condition means the buyer confirms that the condition has been satisfied and they are ready to move forward with the transaction. Common examples include:

• Financing Approval: After securing mortgage approval, the buyer waives this condition.
• Property Inspection: If the inspection reveals no major issues or repairs, and/or the buyer is comfortable with the inspection findings; this condition is waived.

How It Works:
To waive a condition, the buyer must provide a written notice called a "Condition Waiver." This document confirms that all stipulated requirements are met and the agreement becomes a firm sale. At this point, the deposit is non-refundable, and the buyer is fully committed to the purchase.

Pro Tip: Always review the implications of waiving conditions with your real estate agent to ensure you’re fully satisfied before proceeding.

Non-Waiving Conditions

Non-waiving occurs when a buyer determines that a condition cannot be satisfied—for instance:

• Financing: If a lender does not approve the mortgage, the buyer may not waive the financing condition.
• Inspection Issues: A property inspection may uncover significant structural or safety concerns.

How It Works:
The buyer submits a "Non-Waiver Notice" to formally indicate that the condition remains unmet. This action voids the contract, and the buyer typically receives their deposit back, provided all terms of the agreement were followed.

Why the Difference Matters

The decision to waive or not waive a condition has significant consequences. Waiving conditions finalizes your commitment to the purchase, whereas non-waiving can provide an exit strategy if valid concerns arise relating to your outlined conditions in the contract.

Remember: Always consult with your real estate agent or lawyer before waiving or not waiving conditions to understand your legal and financial obligations fully.

Section 10: Alberta Closing Documents – Buyer and Seller Obligations

Section 10 of the Alberta Residential Purchase Contract outlines the steps and responsibilities of both the buyer and seller to ensure a smooth closing process. This is the critical phase when ownership of the property officially changes hands, but the details matter. Let’s take a look:

Delivery of Closing Documents

The seller's lawyer must provide the necessary closing documents to the buyer’s lawyer under reasonable trust conditions. These documents must arrive in a timely manner before the Completion Day to allow for:

• Confirmation of registration at the Land Titles Office.
• Mortgage financing to be advanced.
• Verification of the transfer of other value items (like deposits or payments).

This step ensures the legal and financial aspects of the transaction are properly aligned.

Real Property Report (RPR)

The seller must provide an up-to-date Real Property Report (RPR) that meets the Alberta Land Surveyors’ Association standards. An RPR, or Real Property Report, is like a map of the property you’re buying. It’s a legal document that shows the boundaries of the land and the structures on it. Think of it as your assurance that what you’re buying is exactly what you expect it to be.

What Does an RPR Include?

• The location of buildings, fences, garages, decks, and any other improvements on the property.
• Information about encroachments—whether something on the property crosses over into a neighbor’s land or municipal land, like a fence or a shed.
• Confirmation of compliance with local bylaws and zoning regulations, or documentation of non-conformance if applicable.

The RPR confirms:

• The current improvements (like buildings, fences, or garages).
• Municipal compliance or acknowledgment of non-conformance.
• The seller’s warranties about the land and improvements.

Why It Matters:
The seller is responsible for providing an up-to-date RPR, along with evidence of compliance or acknowledgment of non-conformance, if required. The buyer’s lawyer needs time to review this document before closing day.  If the RPR isn’t in order, it can cause delays.

Payment of Purchase Price

The buyer is responsible for paying the purchase price using a lawyer’s trust cheque or a bank draft. This ensures the funds are securely handled during the closing process.

Prorated Expenses

Expenses like property taxes, local improvement fees, utility bills, and homeowner association fees are prorated as follows:

• The seller is responsible for these costs until the end of the Completion Day.
• Afterward, the buyer assumes responsibility.

This adjustment ensures a fair division of costs based on ownership.

Discharge of Seller’s Financial Obligations

The seller’s lawyer will use the purchase funds to clear any financial obligations tied to the property, such as:

• Mortgages.
• Liens.

Real Estate Brokerage Fees

If the seller has an agreement with a real estate brokerage, their lawyer ensures that the brokerage’s fees and costs are paid directly from the sale proceeds.

Costs to Prepare Closing Documents

• Seller’s Costs:
  The seller covers the preparation of closing documents, the RPR (if required), and costs to ensure vacant possession, such as ending tenancies or discharging caveats.
• Buyer’s Costs:
  The buyer pays for the registration of the land transfer and costs relating to their legal representation

Failure to Deliver Closing Documents

If the seller fails to deliver the required documents on time:

• The buyer’s payment may be delayed and late interest may be applied until the documents are reviewed and registered.

Buyer’s Late Payment

If the seller meets their obligations but the buyer can’t pay on time:

• The seller may allow late payment and grant possession, but this is not guaranteed.
• Late interest (prime rate + 3%) will apply from Completion Day until payment is received.

Why This Section Matters

Clear communication with your lawyer is essential. Review all documents in advance, ensure your mortgage is ready to fund on time, and confirm the RPR is compliant. A smooth closing process means you can start enjoying your new home without unnecessary stress.

Section 11: Insurance Requirements for Alberta Real Estate Purchases

This section is all about who is responsible for the property leading up to the moment you officially take ownership.

Who Bears the Risk?

Until the purchase price is fully paid on Completion Day, the seller is responsible for any loss or damage to the property. This means that if something unexpected happens—like a fire or flood—it’s the seller’s responsibility to address the issue.

Why It Matters to You as a Buyer

This section ensures you’re not financially responsible for issues that arise before the Completion Day. However, it’s still crucial to arrange your own home insurance well before closing. Your lender will require proof of insurance, and you want to ensure there’s no gap in coverage once the property officially becomes yours.

Pro Tip: Make sure to coordinate with your lawyer and real estate agent if you are aware of any issues arise before closing.

Section 12: Buyer and Seller Remedies in Alberta Real Estate Contracts

Let’s talk about what happens if either the buyer or seller doesn’t hold up their end of the deal. Section 12 outlines the options available to both parties if something goes wrong—and trust me, this is where things can get serious.

Quick disclaimer: This guide is packed with helpful insights, but it’s for educational purposes only and isn’t a substitute for professional advice. Always consult your real estate agent, mortgage professional, or lawyer for guidance specific to your situation.

When Things Go Sideways

If one party refuses or fails to complete the contract, the other has the right to seek legal remedies. This can include:

• Claims for deposits: If the buyer backs out of the deal after removing conditions, the seller may be eligible to keep the deposit as compensation.
• Damages and costs: Either party can pursue damages for losses caused by the other’s failure to close the deal.

Why It Matters

Real estate transactions are legally binding, and the remedies outlined in this section protect both parties from financial harm if the deal falls apart. Whether you're the buyer or seller, this section ensures there are consequences for walking away from the contract.

Pro Tip: No one wants to end up in a legal dispute, so the best way to avoid these situations is to fulfill your obligations and communicate openly. Work closely with your Real Estate Agent and lawyer to ensure every part of the contract is clear and achievable. That way, you can focus on getting the deal done without any surprises.

Section 13: Notices and Documents in Alberta Purchase Agreements

Let’s break down Section 13, which covers how notices and documents are handled under this contract. This might seem like a small detail, but trust me, it’s essential for ensuring smooth communication and compliance during your transaction.

What Counts as a Notice?

In this contract, a notice refers to any written document related to the transaction, including the contract itself after it’s been accepted. Whether it’s about waiving conditions, addressing deadlines, or making changes, everything must be documented properly.

How Notices are Delivered

Section 13 outlines how notices are considered effective:

• Delivery methods: A notice is valid the moment it’s delivered in person, by fax, or through email.
• Timing matters: If you’re emailing or faxing, make sure the document is sent and received within the specified deadlines. Timing is everything in real estate contracts!

What About Signatures?

In today’s world, ink signatures aren’t always practical, which is why Alberta’s Electronic Transactions Act allows for:

• Electronic signatures: These have the same legal weight as a handwritten signature.
• Digitized signatures: Scanned or digital representations of your signature are also valid.

This means you can complete many parts of the transaction remotely, saving time and keeping the process efficient.

Why This Matters

Clear communication is the backbone of any real estate transaction, and Section 13 ensures that both buyers and sellers know how notices should be sent and received. Whether it’s approving a condition or finalizing an agreement, having a clear process for handling documents avoids misunderstandings and ensures compliance with legal standards.

Conclusion: Navigate Your Home Purchase with Confidence

Understanding the Alberta Residential Purchase Contract is the key to making confident, informed decisions during your home-buying journey. From mastering deadlines to protecting yourself with the right conditions, this document is designed to safeguard your interests and ensure a smooth transaction. Whether you’re a first-time buyer or seasoned homeowner, knowledge is your greatest asset when making one of life’s biggest investments.

Let’s make your next move your best one. With the Marnie Campbell Real Estate Team by your side, you’ll have expert guidance every step of the way. Our goal is to help you avoid costly mistakes, stay ahead of potential challenges, and feel empowered throughout the process.

Schedule your no-obligation call today and take the first step toward finding your dream home!

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Disclaimer: The information provided by the Marnie Campbell Real Estate Team is for general informational purposes only and is not intended as legal, financial, or professional advice. Real estate transactions involve many variables, and the advice and guidance of licensed professionals—such as your real estate agent, real estate lawyer or mortgage specialist—should always be sought to address your specific situation. The Marnie Campbell Real Estate Team assumes no responsibility for any errors, omissions, or outcomes resulting from the use of the information provided. All real estate transactions should comply with the applicable laws and regulations in Alberta, and parties are responsible for fulfilling their respective obligations under the terms of any agreements.

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