Possession Date vs Completion Date in an Alberta Home Purchase

Buyers and sellers often use completion date, possession date and adjustment date as if they mean the same thing. They can be different days, and mixing them up can leave you without a place to live, or without your money.

This article explains what each term generally means, why timing matters, and what to check if you think a date may be missed. The exact meaning in your deal comes from your contract, so read it closely.

This article covers the law of Alberta.

What the three dates generally mean

In plain words, the completion date is usually the day the sale is finalized: the buyer's money is paid and ownership is transferred. The possession date is the day the buyer gets the keys and the right to move in. The adjustment date is the day from which costs of the property, such as property taxes and utilities, are divided between the buyer and seller.

These can all fall on the same day, or they can be set apart. The definitions that count are the ones in your signed contract, not the ones in this article. The standard residential contract sets out the buyer, seller, property details and financing terms, including the deposit amount.

Why the difference matters

• Moving: if possession is later than completion, or the other way round, you may need temporary housing or storage.
• Money: your lender and your lawyer need to know when funds are needed.
• Costs: the adjustment date affects who pays bills for the property over the days around closing.
• Deposit: a brokerage holding a deposit may pay it out only under the written terms of the trust agreed to by all parties, so the contract and any written direction control release.

Talk to your lawyer about how your dates fit together before you book movers or end a lease.

Timing traps in condo and new-home purchases

For a resale condominium, you may need documents from the condominium corporation. On written request from an owner, purchaser or mortgagee, the corporation must within 10 days provide an estoppel certificate covering contributions payable, payment frequency, arrears and interest owing. The certificate is conclusive proof of the matters certified in it, as of the certificate date, in favour of the person who requested it. A condo-document condition should therefore be timed so the certificate request fits inside the condition period.

The corporation must also, on request, give the prescribed information and documents within 10 days. For insurance, the corporation must give each owner written notice and a copy of the certificate within 30 days of receiving it when certain matters change, so a buyer should ask for the current certificate.

For a new condominium unit bought from a developer, the developer must hold the purchaser's money (other than rents or security deposits) in trust until title is issued. If the developer has not met the conditions for releasing that money, the corporation or an interested party may apply to the Court for an order for payment out.

What happens if a date is missed?

The Real Estate Act and regulation do not set a general rule for what happens when a closing date is missed, or who keeps a deposit on default. That depends on the wording of the signed contract and on court decisions. Whether a missed date is a serious breach, whether time is strict, and what remedies are available are questions for a lawyer to answer after reading your contract.

If a dispute does arise, the general rule is that a claim must be brought within 2 years after the claimant first knew, or ought to have known, of it, or 10 years after the claim arose, whichever expires first. Other provisions can affect a contract claim, so confirm the details.

What to do next

• Find the completion, possession and adjustment dates in your contract and write them on one page.
• Check each date against your lender's timeline and your move plans.
• For a condo, request the estoppel certificate and documents early, remembering the 10-day response time.
• If a date looks hard to meet, tell your lawyer right away, before it passes.
• Do not agree to change a date by text or phone alone. Get any change in writing.
• Keep copies of all amendments and communications.

Frequently asked questions