Buying a property: What you need to know
At ABC Law, we understand that buying a property is a significant milestone, whether it’s your first home or a new investment. Our experienced residential real estate team is here to guide you through every step of the process. Below, we’ve outlined essential considerations and a detailed checklist to ensure a smooth and legally compliant transaction in Alberta.
Key considerations when buying a property
1. Engage a real estate lawyer early
- Your lawyer will review the purchase agreement, verify the title, and ensure the legal aspects of the transaction are handled correctly.
2. Understand the purchase agreement
- This document sets out the terms of your purchase, including conditions, possession date, and inclusions (e.g. appliances).
- Your lawyer can ensure the agreement protects your interests.
3. Title search and verification
- Ensure the property’s title is clear of encumbrances, liens, or other issues.
- Your lawyer will verify ownership details and ensure no unexpected claims against the property.
4. Mortgage and financing
- Confirm financing is secured before proceeding.
- Review all mortgage documents to understand your obligations.
5. Property insurance
- Arrange for property insurance effective from the date of possession.
- Ensure adequate coverage for the property and its contents.
6. Home inspections and condition fulfillment
- Conduct a home inspection to identify any structural or functional issues.
- Fulfill any conditions in the purchase agreement, such as securing financing or reviewing condominium documents.
7. Closing costs
- Budget for additional costs such as legal fees and adjustments for property taxes or utilities.
8. Plan for closing day
- Your lawyer will handle the transfer of funds, registration of the title, and ensure all legal documents are in order.
Legal obligations for buyers in Alberta
- Review of Condominium Documents (if applicable): Buyers of condominiums must review financial statements, bylaws, and meeting minutes.
- Property Taxes and Adjustments: Ensure you understand your share of property taxes and utility adjustments as of the closing date.
- Land Transfer Documents: Work with your lawyer to ensure the accurate registration of the property in your name.
Checklist for buying a property in Alberta
Before making an offer:
- Engage a real estate lawyer.
- Arrange for mortgage pre-approval.
- Research the property’s market value and condition.
After offer acceptance:
- Review the purchase agreement with your lawyer.
- Conduct a home inspection.
- Fulfill conditions such as financing approval or property insurance.
Before closing:
- Verify the title and resolve any issues.
- Arrange for utility hookups and insurance.
- Confirm closing costs and provide funds to your lawyer.
On closing day:
- Sign all necessary legal documents with your lawyer.
- Ensure funds are transferred to the seller.
- Receive keys to your new property.
Why work with ABC Law?
At ABC Law, we’re committed to ensuring your property purchase is smooth and worry-free. With years of experience in residential real estate law, our team provides personalized, professional guidance to help you avoid pitfalls and achieve your goals.
Contact us today to learn how we can assist you with your property purchase.
Residential real estate closing process
Buying
Preview purchase agreement
Make offer to purchase with your realtor
Conduct title search
Obtain financing with your mortgage broker
Prepare closing documents
Review background searches with your lawyer
Review and sign
Review closing documents with your lawyer