The main differences between real estate conveyancing in British Columbia (BC) and Alberta primarily revolve around the legal processes, required documentation, and involvement of legal professionals. Here are the key distinctions:
Legal Professionals Involved
- BC: Typically requires a notary public or a lawyer to handle the conveyancing process.
- Alberta: Only lawyers are permitted to handle real estate conveyancing.
Land Title Registration
- BC: Uses the Land Title and Survey Authority (LTSA) for land title registration.
- Alberta: Uses the Alberta Land Titles Office.
Transfer Tax
- BC: Imposes a Property Transfer Tax (PTT) on the purchase of property, with varying rates depending on the property’s value.
- Alberta: Does not have a property transfer tax but requires payment of a nominal land transfer registration fee.
Closing Process
- BC: The closing process typically includes a condition precedent period where subjects (conditions) like financing, inspection, and property disclosure statements are reviewed and removed before the sale is firm. The closing date and possession date are often the same.
- Alberta: The closing process includes condition periods similar to BC but often has a separate possession date from the closing date. Possession usually occurs at noon on the possession date.
Use of Trust Accounts
- BC: The use of trust accounts by lawyers or notaries is common to hold the purchase funds until all conditions are met.
- Alberta: Lawyers hold funds in trust accounts, and the Real Estate Council of Alberta (RECA) regulates the use of these accounts.
Title Insurance
- BC: Title insurance is not mandatory but is often recommended to protect against defects not found during the title search.
- Alberta: Similar to BC, title insurance is not mandatory but is commonly used.
Documents Required
- BC: Key documents include the Contract of Purchase and Sale, Property Disclosure Statement, and the Title Search.
- Alberta: Key documents include the Real Estate Purchase Contract, Residential Measurement Standard (RMS) reports, and the Title Search.
Closing Adjustments
- BC: Adjustments for property taxes, utility payments, and strata fees (if applicable) are common and typically done by the lawyer or notary.
- Alberta: Adjustments for property taxes and utility payments are also common and handled by the lawyer.
Seller’s Responsibilities
- BC: The seller typically provides a Property Disclosure Statement and ensures that any existing mortgage on the property is discharged upon closing.
- Alberta: The seller must also provide Real Property Reports with compliance, and any existing mortgage must be discharged upon closing.
Buyer’s Responsibilities
- BC: The buyer arranges for a property inspection, arranges financing, and obtains title insurance if desired.
- Alberta: The buyer arranges for a property inspection, secures financing, and arranges title insurance similarly to BC.
Understanding these differences is crucial for anyone involved in real estate transactions in either province, ensuring compliance with local regulations and smooth completion of the conveyancing process.
