Buying a home involves more than finding a place you like. You will need to work with professionals, make a legal offer, and complete steps in a homebuying process before you can move in. This page explains who can help you, how the buying process works, what to expect when making an offer, and how to prepare for possession day. Understanding these steps can help you avoid surprises and feel more confident as you buy a home.
Need to know
- Buying a home is a legal process with several steps and deadlines.
- Working with experienced professionals can help protect your interests.
- Making an offer creates a legally binding agreement once accepted.
- ConditionsConditions These are things that need to happen before a property purchase is complete. like home inspections are important for buyers.
- Problems can come up, but you can resolve them with professional help.
- Planning ahead can make possession day less stressful.
Your homebuying team
Buying a home is not something you should do alone. Most buyers work with a real estate practitioner, a home inspector, and a real estate lawyer. Together, these professionals help guide you through the process and protect your interests.
Real estate practitioners
Real estate practitioners help you find homes, arrange viewings, and prepare offers. In Alberta, the Real Estate Council of Alberta licenses them. To get a licence, these individuals must take courses, pass a Provincial Qualifying Exam, and stay up-to-date on industry issues.
There are three types of real estate professionals: brokers, associate brokers, and associates:
- Brokers are real estate professionals licensed and authorized to operate a brokerage that trades in real estate. There is only one broker per office, and that person has full responsibility for everything that takes place there.
- AssociateAssociate A person licensed as an associate but is not qualified to run their own brokerage. They are always employed by, or associated with, a licensed broker and brokerage. brokers are real estate professionals who have completed all the requirements to become a broker but have decided to work as an associate in someone else’s brokerage.
- Associates are real estate professionals who are licensed as an associate but are not qualified to run their own brokerage. They are always employed by, or associated with, a licensed broker and brokerage.
Some real estate practitioners are also REALTORS®. All REALTORS® are real estate practitioners, but not all practitioners are REALTORS®. REALTORS® must follow a national Code of Ethics and have access to the MLS® system, which lists homes that may not appear on public websites.
Tip
If you found real estate practitioners that might be a good fit, you should do some research on them. Since all real estate practitioners in Alberta need a license, you can find information on them at the Real Estate Council of Alberta website by clicking on ‘Search for an Industry Professional’ and entering their name. Using this tool, you should check to make sure that:
- They are licensed
- There hasn’t been disciplinary action against them. You find out by clicking on ‘Complaints and Disciplines’ on the Consumer side of the site to view the past 2 years of disciplinary history.
Home inspectors
A home inspector checks the condition of a property before you buy it. Buyers usually pay for home inspections. A good inspection can uncover major or hidden problems and help you decide whether to move forward or negotiate repairs or price. For example, a good home inspector will check the structure of the home, as well as the heating, water, and electrical systems. Most inspectors work off a lengthy checklist, which allows them to give you a detailed picture of the property and any potential areas of concern. Once they complete the inspection, they will review their findings with you, and provide a copy of their report, including any suggested repairs.
Tip
If you need help finding a home inspector, your REALTOR® or Real Estate PractitionerReal Estate Practitioner A real state professional who can help you through the property buying process. In Alberta, there are many kinds of brokers and associates, but they all must have a license through the Real Estate Council of Alberta. should be able to recommend some options. You can also visit the Alberta chapter of the Canadian Association of Home and Property Inspectors (CAHPI) website or the Canada Mortgage and Housing Corporation website for more information.
Real estate lawyers
A real estate lawyer handles the legal side of the purchase. They check land titles, review claims on the property, prepare documents, and help transfer ownership. Since there is lots of paperwork to sign and file, finding a good real estate lawyer is an important part of buying a home. They will take care of the legal aspects of the transaction, as well as give legal advice, if needed. There are different things a real estate lawyer can do, but their most important jobs are:
- Making sure you have a valid Land TitleLand Title Legal document showing who owns, or has a claim, to the property. (proof of ownership)
- Investigating any claims against the property
- Checking to see if there are any taxes owed on the home
- Calculating Land TitleLand Title Legal document showing who owns, or has a claim, to the property. transfer costs
- Drawing up mortgage documents (if required)
Having someone to take care of these things requires the skills of a professional lawyer. Typically, most lawyers charge a flat fee for residential real estate purchases, and as a buyer you are responsible for paying this expense.
Tip
Any lawyer you hire should have a background in Alberta’s Real Estate Act, plus all local regulations and restrictions. Don’t be afraid to ask them how much experience they have in real estate law and transactions. You can use the Law Society of Alberta’s online Lawyer Directory to find a lawyer by location and practice areas. If you have time, meet with a few or talk with them on the phone to see if they are someone you would like to work with.
The homebuying process
Needs vs wants
With the homebuying process, looking at homes can be fun. There are so many different styles, and they all have their own unique features. It’s easy to get distracted and end up buying something that doesn’t fit your needs, or costs more than you wanted to spend. One way to make sure you don’t end up caught in that trap is to take some time to think about your “needs” and your “wants”.
A need is something that your new home absolutely must have. For example, you might need a certain number of bedrooms, or you might need to live in a certain area of town. Basically, needs are things that you cannot compromise on. The right home will be one that fits most – if not all – of your needs.
On the other hand, a want is something that you would like, but which isn’t a deal breaker. For example, you might want to have hardwood floors, or you might want to have a deck. In other words, a want is a feature what would be nice, but that you could live without. The right home for you will be one that has enough of your wants.
Of course, everyone’s needs and wants are different. Every situation is different, which is why you should take some time to think about your own needs and wants before you start the home buying process.
One of the best ways to keep track of your needs and wants is to make a checklist that you can take with you to each home that you view. Your checklist is also something you can share with your real estate practitioner, as it will help them find homes that are right for you. They may also be able to suggest other features that you didn’t think about, which you can then add to your checklist. On the other hand, they may give you some expert information that changes your mind on a need or want.
Making an offer
An offer is the first legal step toward buying a home. Once you decide on a home you would like to buy, you will need to make an offer of purchase to the seller. This is the first step, and what happens
Did you know?
Once you find a home that you would like to purchase, you will want to make an offer as soon as possible. However, before you rush into things, there are a few questions you should ask yourself, and your real estate practitioner, before doing so:
- Has your real estate practitioners pulled the land title to make sure the sellers own the property?
- Is there a Real Property ReportReal Property Report A legal document showing physical improvements to a property. It also has the surveyors’ comments or concerns about the land itself. showing all the improvements done to the property, and when? Does it have a municipal stamp of compliance? section.
- Have you googled the address/property name/condo name to see what comes up?
- Has your real estate practitioner done a historical listing search for the property to see if anything happened there in the past that you might want to know about? (For example: flooding or natural disasters, criminal activities, etc.)
- If the home is relatively new, have you checked to see if it has a warranty?
next depends on many different factors. The process can move quickly. Your real estate practitioner helps prepare and submit an offer to purchase. The seller can accept, reject, or make a counter-offer. The flowchart below shows how negotiations may move back and forth until you reach a deal—or not. If the seller accepts your offer and all conditions are met, the sale moves toward closing.
The key components of an offer include the offer price, deposit, terms, and conditions.
Offer price
The offer price is how much you are willing to pay for the property. When submitting an offer price, the real estate practitioner you are working with should guide you through the process. In most cases they will talk with you and then take care of the formal work themselves. If there are any counter-offers or negotiations with the offer price, they will also contact you to find out what you want to do next.
Deposit
A deposit is a lump sum of money that will is by a real estate practitioner or lawyer. It is a way to show a seller that you are a serious buyer and have the money to close the deal. The deposit becomes part of the down payment, so it isn’t an extra expense. If the sale falls through after you have paid a deposit, there should be conditions about when it’s returned to you.
Terms
Terms are things that will be part of your purchase offer or when things will happen. Common terms include:
Possession date
The possession date is the date when the property becomes yours and you can move in.
ExclusionsExclusions Items (attached and non-attached) you do not want to come with a home purchase, and you list in your purchase offer.
ExclusionsExclusions Items (attached and non-attached) you do not want to come with a home purchase, and you list in your purchase offer. are items attached to the house that you don’t want to come with the home purchase and that you need to list in your offer. For example, you may not want the seller’s mounted appliances or curtain rods. If a seller wants to take some attached items, they must make that clear to you in the original listing and/or counter-offer.
InclusionsInclusions Items (attached and non-attached) you want to come with a home purchase, and you list in your purchase offer.
InclusionsInclusions Items (attached and non-attached) you want to come with a home purchase, and you list in your purchase offer. are items that you want that you want to come with the home purchase and that you need to list in your offer. For example, this may include curtains/drapes, movable appliances like microwaves or garage door remote controls. If a seller wants to include some of these items with the home, they can put them in the listing and/or counter-offer.
Expiry date
The expiry date is how long the other party must accept the offer, or submit a counter-offer
Pre-possession inspection
A pre-possession inspection is a final check of the home after the seller has finished moving out. This is to make sure there is no damage and that the seller left the home in good condition.
Conditions
ConditionsConditions These are things that need to happen before a property purchase is complete. are things that must happen before your offer becomes official. If conditions are not met, you may be able to walk away and get your deposit back depending on the terms of your offer. Common conditions that are for the benefit of the buyer include:
Financing
The buyer can specify a condition that they have financing, which means securing the funds to buy the property. They can specify a certain amount going towards as downpayment and by a certain date.
Home InspectionHome Inspection A type of property inspection by a professional to make sure that there are no major, or hidden, problems with the home before you buy it.
A home inspection (also known as a property inspection) involves having the property checked by a professional to see if there are any major, or hidden, problems with it.
Sale of buyer’s property
The buyer can specify a condition that they sell their home by a certain date.
CondominiumCondominium Legally, a condominium is a type of property ownership. Condominium ownership is unique because it is shared property ownership. When you buy a condominium, you get: Full ownership of the condominium unit (also known as freehold interest) Shared ownership of the common property (also known as tenants in common or co-ownership) Document Review
If you are buying a condominium, you should ask to see the official condominium document that explains all the rights, rules, and expectations of owners.
Did you know?
When you buy or sell a home in Alberta, it is common for lawyers to use the Western Law Societies’ Conveyancing protocol, which are standard procedures and best practices for residential property transactions. It’s a strict process for lawyers to follow, making sure that the that transaction is consistent and efficient while protecting the interests of everyone involved. The Alberta Real Estate Association’s (AREA) standard residential purchase contract allows lawyers for buyers and sellers to use the Protocol if they agree to it.
Home inspections
After you have decided on the one you want to buy, you will need to make an offer to the seller. In most cases, there will be conditions attached to your offer, which are things that need to happen before the purchase is complete.
One condition that you should always include is that you can book a home inspection, which will let you know what kind of shape the property is in. You can hire a home inspector to check that there are no major or hidden problems with the home before you buy it. In most cases, you will need to negotiate with the seller about any issues arising from the inspection, either requiring them to make proper repairs, or to lower their asking price so you can afford to fix the problem. The buyer usually pays for a home inspection.
Despite the cost, it is important to have a proper home inspection. Once you buy the home, all future repairs become your responsibility. If you decide not to hire a home inspector, there could be problems with the property that may come as a bad and expensive surprise.
Closing
If the seller accepts your purchase offer and you remove the conditions of the offer, then the sale closes. That means you are now a home owner, with a possession date to prepare for.
Moving into a new home can be stressful, especially if you need to move out of your current residence at the same time. One way to make things less chaotic is to get organized and come up with a plan so you don’t forget anything important. It might be a good idea to create a checklist or schedule of all you need to do with small, easy to do, steps each day. That way, you won’t be overwhelmed or rushed.
As you plan to move, try to also think about the things you’ll need in your new home. For example, will you need someone to come and hook up the internet, cable/satellite, or a phone? You need to book those appointments in advance and they may have a week or more wait time. You may also want to consider scheduling them for a day or two after you move in to your new home, as possession day can be very busy and hectic.
Also, don’t be afraid to ask other people for help and advice, especially if they have done this before. They may have suggestions that can make things easier for you, or they might even be willing to come and lend a hand themselves.
Finally, if you are planning to use movers you should start contacting different companies at least a month before your possession date, if not sooner. Giving yourself time to shop around can end up saving you money, especially if you are moving a long distance. While the costs will change depending on the size of your current home and how many items you have, you should budget for it. Some movers may offer discounts for mid-month moves, or if you are moving between September to April, be sure to ask them about any special rates.
Taking possession
Possession day is when the home officially becomes yours. Before moving in, do a walk-through to make sure:
- The home is in the agreed condition
- All inclusions are there
- There are no unexpected damage or surprises
If there are problems, contact your real estate practitioner right away. Once everything looks good, collect all keys and start settling in.
Potential issues
Bank won’t pay all the purchase price
When you apply for a mortgage, the lender will usually get a home appraisal before they approve your request. They do this to make sure the property is worth more than the mortgage, to protect themselves. If their appraisal says the property is worth less than the mortgage amount, the bank may only give you that lower amount, leaving you to put together the rest of the purchase price on your own. This can be a problem for a buyer, but you do have some options like asking for a second opinion from a qualified appraiser.
Land titles
Before a purchase can close, any homebuyer must complete a title search and get title insurance. Your lawyer can do this, and in most cases, there are no issues. Sometimes, there may be problems with the Land TitleLand Title Legal document showing who owns, or has a claim, to the property. which can prevent a sale from closing. A few examples of problems might be a claim on the property by a co-owner or relative (meaning the owner doesn’t have the power to sell the property), or a lien on the property by a contractor or the government (meaning they owe a lot of money to these parties and may lose ownership of the property they are trying to sell). Your real estate lawyer should be able to advise you on how to deal with the issues.
Home Inspections
One of the conditions you should put on every offer to buy is that you have the right to do a home inspection before the sale closes. If the inspector finds some big problems with the home, you should have the power to walk away from the transaction (depending on whether the inspection was a condition in your offer to buy) or require the seller to make repairs at their own expense. If you are unsure about whether you can back out of a transaction, you should get legal advice from your real estate lawyer.
Insurance
When you buy a home, you will need to get home insurance before your lender will release the mortgage funds to you. If the home you are trying to buy has had lots of large claims, an insurance company may decide not to insure the home. This usually only happens to homes that are in bad locations (low-lying, near a collapsing riverbank, etc.) or are in very poor shape.
The buyer backs out
Once a contract is in place, all conditions are met on both sides and the sale closes, buyers are legally bound to complete the transaction. Backing out can lead to financial penalties or lawsuits for breach of contract. If this happens, and the sale has closed, the buyer may not receive their deposit back and the seller may have the right to sue them for extra damages as well. Before backing out of a deal after closing, you should get legal advice from your real estate lawyer.
The seller backs out
Occasionally, a seller will decide to back out of a deal. This can happen because they think they can get a better offer, they don’t want to make the required repairs, or they just don’t want to move. If this happens, and the sale has closed, you should receive your deposit back and may have the right to extra damages as well. Your real estate lawyer should be able to advise you on your rights and what to do next.
Possession date disputes
Sellers must have the home in the same condition or better as lawsy viewed by the buyers. Legal issues can arise if a seller does not fully vacate the property on time, leaves behind damage, or fails to remove personal property. Buyers may have legal remedies for breach of contract. Possession day problems are legally enforceable.