Terms that come up in your real estate home purchase or sale closing. Condition Date/Day – The date by which the conditions for the buyer and seller must be met for the deal to proceed. In real estate, conditions may include obtaining financing and a property inspection approval. If these conditions are not waived or met by the respective condition date, then the contract effectively ends, and there is no transaction. Closing Date – When the ownership of land is transferred to the new owner. The Transfer of Land is registered at the Land Titles Office. By this date, the payment of the purchase price needs to be fulfilled. At the closing date, the real estate transaction is considered complete. This is also, typically, the same date as the possession date. The Closing Date is not the day the conditions are removed which is called the Condition Date. Completion Date – same as the Closing Date.   Possession Date/Day – When the physical possession of the property (through the transfer is keys) is transferred from the seller to the buyer. Keys are usually received between 12pm [...]

Can you sue the seller if you discover problems with your house after moving in? This article addresses problems at the time of possession and problems discovered after possession. Problems arising after Possession You’ve bought your first home and surprise your first spring there is flooding in the basement causing thousands of dollars of water damage. After speaking with the neighbours, you learn that there had been instances of flooding in the basement with the previous owner as well. You are upset! The house seemed to be in great condition without any apparent damage or structural issues when you first viewed it. You had a home inspection conducted by a professional, who stated that there are no notable plumbing or electrical defects or evidence of previous water damage. Neither the seller nor the realtor disclosed that there were any issues. Now what? Can you sue the seller?It depends. (Typical lawyer answer, right?) Suing the Seller for Breach of ContractAccording to the current standard residential purchase contract in Alberta, the seller provides a warranty to the buyer that they must disclose any known Material Latent Defects to [...]

How are property taxes adjusted when you buy a home? When buying or selling a property, a portion of the annual property tax will be factored into the amount that you are paying or receiving, called the property tax adjustment. Property tax adjustments are for the purpose of ensuring that the buyer and seller are only paying for the property taxes for the time that they own the property. Real estate purchase contracts include clauses that note that property taxes will be adjusted to credit the buyer or seller, to ensure that the parties are aware. Property taxes are calculated according to the Adjustment Date, which may or may not be the same as the possession date. The Adjustment Date is when the buyer begins to assume responsibility for the property taxes. The City does not adjust taxes between the seller and buyer.  This is done by the lawyers on the closing of the real estate transaction. When calculating the adjustment, the first thing to understand is that taxes are assessed for the period of Jan 1 to Dec 31 of each year. This means that, [...]

What is a Holdback? An agreed upon dollar amount that is not released to the seller on the closing of a real estate transaction until a certain item is completed/provided.  For example, the seller may agree to complete the landscaping, and agrees to hold back $5,000.00 until the landscaping is complete.  The terms of the agreement to hold back these funds are usually agreed to in writing by the buyer and the seller, or agreed on between their respective real estate lawyers. When is a holdback negotiated? Sometimes a holdback is addressed at the time of negotiating the purchase and sale contract.  Other times, issues arise after the completion of the purchase contract and a holdback needs to be dealt with by either a written addendum to the purchase and sale contract, or between the lawyers. Outstanding items and holdbacks are often not anticipated during the negotiation stage and not addressed in the offer to purchase. This leaves the realtor or lawyer to negotiate a holdback once the purchase contract has already been signed.  At this point, there is generally no obligation on the part of [...]

What is Dower? Dower rights are meant to protect the property interests of a spouse who is not legally registered on title. Originally, dower rights were created to ensure that widows could continue to use the family home after their husband’s death, even if they were not the registered property owners.  When does the Dower Act apply? In Alberta, if you are married and own property (that is registered in your name alone), you are required to obtain your spouse’s consent if you choose to mortgage, sell or lease the property for longer than 3 years. Dower rights protect the interests of a spouse of a property owner, ensuring that the property is not sold or burdened without their consent. Why do you need to sign a Dower Consent? To avoid legal sanctions that come from neglecting dower rights, signing a dower consent during a sale transaction or signing a dower release, are potential solutions. Signing a dower consent is also necessary in some circumstances, to obtain a mortgage, because the mortgagers try to avoid circumstances where the absence of consent bars them from enforcing their [...]

Different types of co-owned property, such as real estate, can be held as either joint tenancy or tenancy in common. Whether the ownership structure is of joint tenancy or tenancy in common signifies whether the parties are essentially treated as the same party, or as distinct co-owners. Conceptually, in a joint tenancy, the parties are united in their possession, interests, title, time and intention. In comparison, for a tenancy in common, the only unity required between the parties is the unity of possession. The Unities Broken-down The unity of possession means that all co-owners have an identical right to possess and use the property. Through both joint tenancy and tenancy in common, neither party can disallow the other from using or possessing the property. The unity of interest means that all co-owners have the same rights and obligations in respect to the property. This is present for joint tenancies, but for a tenancy in common, the parties may own unequal shares of the property. The unity of time refers to the fact that the joint tenancy started and ended at the same time for both parties. [...]

As Real Estate Lawyer, my # 1 piece of advice if you are considering buying or selling a home: Choose experienced professionals that you are comfortable working with - this includes your realtor, mortgage representative and real estate lawyer.  They will help guide you through the process. Most stress and issues in the home ownership process comes from not having the right people working with you from the beginning. And my #2 piece of advice: If you have a question or are concerned about anything, ASK.  Lawyers offer a professional service.  We are here to serve you.  Our job is to make sure you that understand and are comfortable with your transaction. Our lawyer looks forward to answering your questions. Real Estate Law is all we do and we love talking about it! Watch this video to hear top real estate professionals offer their tips about the home buying process. https://youtu.be/PC22KLLIOLg

Your lawyer will anticipate most of your questions and provide you with most of the information you need when you first start working with them. There are at least 3 questions you should ask: Fee - You should ask your lawyer: What their legal fee is, How the fee will be calculated, When and what type of payment is accepted. GIARDINO LAW charges FLAT FEES - this means we provide you the total cost at the beginning of your transaction. No hidden or surprise legal fees. Communication - You should ask your lawyer who to contact if you have any questions and what the best way is to contact them. Some prefer phone calls, some prefer emails, some will even text messages or have a client portal – your lawyer should tell you what they prefer. You may not always deal with directly with the lawyer. Your point of contact may be their legal assistant. Your lawyer should be able to answer your questions – don’t be afraid to ask. Your lawyer may not be able to respond to you immediately – a lawyer usually deals [...]

Your lawyer represents you and will advocate for your interests above the interests of others, and even above their own.If there is an issue with your closing transaction, you can be assured that your lawyer will provide you with an evaluation of the issue, including any risks, so that you can make an informed decision that is best for you.Your lawyer is usually competent in all aspects of the home ownership process, so you can usually turn to them to answer any questions you might have. With Giardino Law, you can expect us to... Be responsive and communicate with you effectivelyGive you clear information about:Fees: we will explain to you how you will be charged and when and how payment is expected.Services: Your lawyer will explain the service that they offer, what is included and not included.The steps involved in the process. Be accessible. Your lawyer is open to answer any questions that you have throughout the process. Be competent. If you choose a lawyer experienced in real estate conveyancing, they will be knowledgeable about all aspects of your transaction and they will be able to [...]

A Real Estate Lawyer handles the closing of your home sale or purchase. The seller's and buyer's real estate lawyers lawyers will work with the real estate agent and mortgage lender to handle the transfer of the property ownership from the seller to the buyer, and the payment of the purchase price to the seller according to the terms of your purchase and sale contract.  This usually includes making sure that: The property title is transferred to you free of any financial encumbrances, Municipal property taxes are current, Condominium fees and home association fees are current. The lawyer will prepare all of the documentation required to complete the closing process, meet with you in person to sign the paperwork, and explain the process to you as well as answer your questions. Your lawyer will explain their role to you including what services they provide and don’t provide.  It is important to understand what services your lawyer will provide to you.  You may expect your lawyer to, for example, do a complete search of municipal permits related to your property but this may not be included in [...]

IMPORTANT:  This is not tax advice. Talk to an accountant. Do not delay addressing this issue with an accountant as it will delay receipt of the proceeds of your sale.  This information is provided by me for information only so you can understand why there may be a hold back from the sale proceeds.   Canadians who purchase Taxable Canadian Property (TCP) from non-residents of Canada could be liable for taxes of up to 50% of the purchase price if the Purchaser and the Seller fail to comply with the reporting and withholding requirements governed by section 116 of the Income Tax Act (Act). This applies where the Seller of a property is Non-Resident of Canada.  Eg the seller lives in the USA and is selling their vacation home in Canmore.  The Seller is to pay the tax but the Purchaser is liable to the CRA if the Seller does not pay them. TCP defined TCP includes: Real property that is situated in Canada. The Canadian government has the right to tax a non-resident's sale of TCP. The tax is calculated on either capital gain or [...]