Conditions to Include in an Offer to Purchase a Home in Alberta

A condition in an offer to purchase is a way to make your promise to buy depend on something you still need to check, such as the home's condition, your mortgage or the condo's finances. Without conditions, an accepted offer can leave you committed before you have the information you need.

This article covers the conditions Alberta buyers commonly consider, how the timing works and how to approach the wording. Exact clause wording is a contract question, so have a lawyer review yours before you sign.

This article covers the law of Alberta.

Why conditions matter

Alberta government guidance says it is not unusual for a residential home purchase contract to include a home inspection as a condition. A standard contract is used, and it sets out the buyer, seller, property details and the financing terms, including the deposit amount.

A condition works only if it is clear. A good one says what must happen, by what date and what follows if it does or does not. Vague wording is where disputes start.

Common conditions and what they do

Financing terms are part of the standard contract. How a financing condition is satisfied, waived or ended depends on the wording in your signed contract, so do not assume anything about it and ask a lawyer to confirm.

Inspection and title conditions

After an inspection, a buyer may withdraw the offer, adjust the price to cover repairs needed, or move forward. Your condition should line up with those choices, so you know in advance which of them the contract lets you use.

For title, the usual goal is to review the title and any registered interests before you are fully committed. What counts as acceptable is a matter for your contract and your lawyer. If you are buying a new home from a builder and paid a deposit to the builder, you may register a caveat on the land title to protect it.

Condo and insurance conditions

If you are buying a condo, the corporation must, on written request from an owner, purchaser or mortgagee, provide an estoppel certificate within 10 days. It covers contributions payable, payment frequency, arrears and interest owing, plus anything else required by regulation. The certificate is conclusive proof of the matters certified in it, in favour of the person who requested it, as of the certificate date.

Because the corporation has 10 days to deliver, your condo-document condition period should be long enough for the request to fit inside it. The corporation must also give the requester the prescribed information and documents within 10 days of a request.

For condo insurance, ask for the current certificate. When the deductible, replacement value, permitted exclusions or another prescribed matter changes, the corporation must give each owner written notice and a copy of the insurance certificate within 30 days of receiving it.

If you are buying a new condominium unit from a developer, different rules apply: the developer must hold your money in trust until title is issued and keep it on deposit in Alberta. If the developer has not met the conditions for releasing it, the corporation or an interested party may apply to the Court for an order for payment out.

What to do next

• List what you still need to know about the home before you can commit.
• Turn each item into a condition with a clear deadline.
• Request condo documents and the estoppel certificate as soon as the offer is accepted, since the 10-day delivery time can use up much of a short condition period.
• Confirm in writing how each condition is satisfied or ended.
• Have a lawyer review the agreement before you sign.

Keep in mind that your deposit stays in trust and can be paid out only under the written terms agreed by the parties. What happens to it if a condition fails depends on your contract wording.

Frequently asked questions