What Conditions to Put in an Offer to Purchase a House in Alberta

Conditions are the clauses that let a buyer confirm the important things before the deal becomes firm: that the home is sound, that the money is in place and that the paperwork is acceptable. Choosing the right ones, and giving them enough time, is one of the most practical decisions in an offer.

This article walks through the conditions Alberta buyers commonly consider, how each one protects you and what to watch for with deadlines. How long a condition period should be, and the exact wording, depends on your deal and is worth confirming with a lawyer.

This article covers the law of Alberta.

Why conditions matter

A condition makes the contract depend on something happening. If it is met, the deal moves forward. If it is not, the condition is what may allow a buyer to step away. What a buyer can do when a deal has no condition depends on the signed contract, so it is worth confirming with a lawyer before you submit an offer.

The standard contract used for residential purchases sets out the buyer, seller, property details and financing terms, including the deposit amount. Conditions are added to that framework, and each should say what must be done, by whom and by what date.

Common conditions and what they protect

Whether a financing or sale-of-home condition can be waived or ended early depends on the wording of your contract, so do not assume how it works.

The inspection condition

After an inspection, a buyer may withdraw the offer, adjust the price to cover repairs needed, or move forward. Which of these is open to you depends on how the condition is worded and on what the seller agrees to. Book the inspector early so that the report arrives with time to spare.

Condominium conditions and timing

On written request from an owner, purchaser or mortgagee, or their solicitor or authorized person, the condominium corporation must within 10 days provide an estoppel certificate covering 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. Your condo-document condition period should therefore be long enough for the request and the 10-day delivery to fit inside it.

On request, the corporation must also give the requester the prescribed information and documents within 10 days, and it may charge the prescribed fee where regulation authorizes it. Check the current fee before relying on any figure you hear.

For insurance, 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, other than rents or security deposits, in trust until title is issued, and deposit it in an Alberta trust account within three days excluding holidays and Saturdays.

Condition periods, deposits and next steps

How long a condition period should be depends on your contract, the market and the property, so it is worth confirming with a lawyer. Choose a length based on how long each task will really take, such as an inspector's availability, a lender's turnaround and the 10 days a condominium corporation has to respond.

On the deposit, money received with an offer to purchase must be deposited within 3 business days of acceptance of the offer. For a new home bought from a builder, a buyer who paid a deposit to the builder may register a caveat on the land title to protect it.

• List what you must know before you are bound: condition, money, paperwork.
• Give every condition a clear deadline and say who must act.
• Count the days needed for inspection, lender decisions and condo documents.
• Request condo documents and the insurance certificate as soon as the offer is accepted.
• Have a lawyer review the agreement before you sign.

Frequently asked questions