Selling a home is a legal and financial process, not just a real estate transaction. Homeowners must follow legal rules, disclose certain information, and complete required paperwork before ownership can transfer. This page explains the main steps in selling a home in Alberta, common legal issues to watch for, and key questions sellers often ask.
Need to know
- Selling a home involves legal duties, contracts, and deadlines.
- Sellers must disclose certain problems to buyers.
- Real estate professionals and lawyers play different legal roles.
- The sale is not final until conditions are met and the deal closes.
- Legal issues can delay or cancel a sale if not handled properly.
- Preparing early can help avoid disputes and unexpected costs.
Getting ready to sell
Did you know?
You can sell a home if someone else is living there. However, tenants, co-owners, or other occupants may have legal rights that affect timing, access, or possession. If you are selling a rental property, refer to the CPLEA’s resources on Rental property for sale or sold.
The home selling process
Listing your home
When your home is listed, buyers rely on the information provided. Pricing, photos, and descriptions should be accurate. Some sellers may also sell privately, but legal obligations still apply. Even without a real estate practitioner, the sale must follow contract and disclosure rules.
Did you know?
Some sellers believe selling a home “as is” removes all legal responsibility. In reality, “as is” does not protect a seller from claims related to non-disclosure of known material defects or misrepresentation.
Offers and contracts
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 next depends on many different factors. The process can move quickly. The buyer’s real estate practitioner helps prepare and submit an offer to purchase. As a seller, you can accept, reject, or make a counter-offer. If you accept the buyer’s offer and all conditions are met, the sale moves toward closing.
When a buyer makes an offer, it creates a legal agreement once accepted.
Offers usually include:
- The sale price
- Deposit amount
- Possession date
- InclusionsInclusions Items (attached and non-attached) you want to come with a home purchase, and you list in your purchase offer. and exclusions
- ConditionsConditions These are things that need to happen before a property purchase is complete. (such as financing or inspection)
- Deadlines
A seller can accept, reject, or counter an offer. Once an offer is accepted, backing out can have legal consequences.
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.
Water and Soil TestWater and Soil Test A type of test when buying a rural home that can help you make sure the land and aquifer are healthy and potable.
When buying a rural home, seeing the results of a water and soil test can help make sure the land and aquifer are healthy and potable.
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.
Disclosure obligations
Sellers in Alberta have legal duties to disclose certain information about the property. This can include known defects, risks, or issues that could affect a buyer’s decision. There are two important disclosure obligations for sellers to be aware of:
- Sellers cannot conceal or mislead buyers about patent (obvious) defects they are aware of and
- Sellers must disclose material latent defects known to them that affect their property currently. Material defects are defects that a reasonable person would agree is a significant shortcoming in the circumstances of the transaction.
Failure to disclose required information can lead to disputes or legal claims after the sale. However, sellers are not required to disclose latent defects, which are defects that are not discoverable through reasonable vigilance during a property inspection.
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.
Closing and possession
Most sales include conditions that must be met before the deal becomes final. Once conditions are removed, the sale moves toward closing. On closing day:
- Legal documents are completed
- Funds are transferred
- Ownership changes hands
Possession day is when the buyer takes control of the home. Sellers must leave the property in the agreed condition and remove their belongings.
Potential issues
Problems during a home inspection
It is very common for home inspectors to find problems with a property during an inspection that may leave buyers to reassess their purchase decision. In such a situation, buyers may request repairs or price changes. However, sellers can make repairs, further renegotiate the price, refuse to make repairs, or back out of the transaction depending on the contract terms. Before backing out of a transaction, you should get legal advice from your real estate lawyer
Failure to disclose known problems
Sellers can face legal claims if they fail to disclose serious issues they knew about –this includes patent (obvious) defects and material latent defects (for example, structural problems or past flooding). Sellers must answer honestly any questions from the buyer that they are asked to answer about the property. Sellers and their agents also cannot make misrepresentations (false claims) about the property, or they may be at risk of facing legal claims from the buyer after the sale.
Land title issues delaying closing
Sellers sometimes discover late in the process that there are outstanding liens, encumbrances, or errors on the land title(for example, unpaid property taxes, old mortgages, or judgments). These must usually be resolved before the sale can close, which can delay or even cancel the deal.
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. If a seller backs out of a deal after closing, you should get legal advice from your real estate lawyer.
The seller backs out
Once a contract is in place, all conditions are met on both sides and the sale closes, sellers are legally bound to complete the sale. Backing out can lead to financial penalties or lawsuits for breach of contract. If this happens, and the sale has closed, the buyer may receive their deposit back and may have the right to extra damages as well. Before backing out of a deal, you should get legal advice from your real estate lawyer.
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.