Buying a home in Calgary is an exciting milestone, but it’s also one of the biggest legal transactions most people will ever make. Whether you’re a first-time buyer or a seasoned investor, understanding the real estate contract you’re signing is crucial. In Alberta, real estate contracts are binding legal agreements — and once you sign, you’re committed. Here’s what you need to know to protect yourself and make smart, confident decisions.
What Is a Real Estate Contract?
A real estate contract (often called a Purchase Contract or Purchase Agreement) is a legally binding document that outlines the terms and conditions of a property sale between a buyer and a seller. In Alberta, most real estate transactions use standard contracts prepared by the Alberta Real Estate Association (AREA), but they are still complex and should never be treated as “standard paperwork.”
Key Elements of a Real Estate Contract
When reviewing your contract, pay special attention to these sections:
-
Purchase Price
The total price you’re agreeing to pay, and how the payment will be structured (deposit, financing, final payment). -
Deposit Amount
The upfront good faith money you pay — it shows you’re serious. Make sure the deposit terms are clear: where it’s held and what happens if the deal collapses. -
Conditions (or “Subject To” Clauses)
These protect you by making the purchase conditional on certain events, like:-
Financing approval
-
Satisfactory home inspection
-
Sale of your current home
-
Review and approval of condo documents (if buying a condo)
-
-
Possession Date
The day you officially take ownership. You’ll want to ensure this aligns with your moving plans. -
Inclusions and Exclusions
Items that stay or leave with the property (appliances, blinds, fixtures). Confirm these are clearly listed to avoid surprises. -
Representation and Warranties
Statements from the seller about the condition of the home. These can protect you if problems arise after the sale.
Why Conditions Matter
Conditions give you an “out” if something isn’t right. For example, if your home inspection reveals major foundation issues, a home inspection condition lets you cancel the deal or renegotiate.
Without proper conditions, you could be forced to buy a property with expensive problems — or face serious legal consequences if you try to back out.
Firm Offers vs. Conditional Offers
In a hot Calgary market, some buyers feel pressure to make a “firm offer” (no conditions) to compete.
Warning: A firm offer carries major risks. Once accepted, you are legally bound to complete the purchase — even if you later find issues with financing, inspections, or the property itself.
Always talk to a real estate lawyer before submitting or accepting a firm offer.
Legal Review Before You Sign
Real estate agents are helpful, but they are not legal advisors. Before signing any binding agreement:
-
Have a Calgary real estate lawyer review the contract
-
Clarify any terms you don’t understand
-
Discuss potential risks unique to the property (such as zoning issues, easements, or title concerns)
It’s much easier (and cheaper) to fix problems before you sign than to deal with costly litigation later.
What Happens After Signing?
Once conditions are satisfied (or waived), the contract becomes unconditional, and both parties are legally obligated to close.
At this point, your lawyer will:
-
Confirm title to the property is clean
-
Handle the transfer of funds
-
Register the property under your name
-
Arrange title insurance if necessary
-
Ensure the final closing runs smoothly
Final Thoughts
Buying a home in Calgary is exciting, but it’s also a major financial and legal commitment. By understanding your real estate contract — and working with a skilled real estate lawyer — you can protect your interests, avoid costly mistakes, and move into your new home with confidence.
Need help reviewing a real estate contract or closing a deal?
Contact our office today for personalized legal advice you can trust.
Leave a Reply