Real Estate Lawyer vs Realtor in Alberta: Who Does What

If you are buying a home, you will likely meet a realtor first. They find listings, book showings and help you put an offer together, so it is natural to wonder whether their contract and guidance cover everything.

They do not replace legal advice. This article explains how the roles generally divide on an Alberta purchase and where a lawyer fits in.

This article covers the law of Alberta.

Two different jobs

In general terms, a realtor helps with the market side of a purchase: finding properties, understanding prices and negotiating an offer. A lawyer helps with the legal side: what you are signing, what the title says, how the money moves and how ownership is registered.

The line is set by law. With certain exceptions, only an active member of the Law Society of Alberta can practise as a barrister or solicitor, and only lawyers can give legal advice, so title review, drafting and legal advice on a purchase are reserved to Alberta lawyers, not realtors or notaries.

That is different from saying the law forces every buyer to hire a lawyer. Alberta's Land Titles page says documents can be registered at a Land Titles office and only suggests getting legal advice and help when dealing with property. Lender requirements are a separate practical matter that depends on your situation, so it is worth confirming them with your lender and a lawyer.

Who handles which task

The exceptions to the lawyer-only rule cover articling students, Court of Justice agents and university law students, and conveyancing is not listed as an exemption.

Why the legal side matters

• Ownership moves on registration. The transfer is completed by registering an Application for Transfer of Land (form LTS14766), and registration, not signing alone, transfers the interest.
• Order of registration counts. Priority is decided by the serial number assigned on registration, not the signing date.
• Title can hold surprises. A search shows mortgages, caveats, easements, builders' liens and other registered interests.
• Title is powerful but not unlimited. A certificate of title is conclusive proof of ownership, subject to exceptions such as fraud in which the owner participated and land included by wrong description of boundaries.

If you rely on a realtor's contract alone and skip a legal review, these points may go unchecked. Whether a particular clause protects you depends on its wording and your facts, which is a question for a lawyer.

Checking title also protects your legal position. A bona fide purchaser or mortgagee for value is protected where the transferor was registered through fraud or error, but only if they made all reasonable efforts to confirm the transferor is the registered owner.

If something does go wrong, the Land Titles Act lets a person who loses land through the Registrar's omission, mistake or misfeasance sue the Registrar for damages, but the claim process is limited and is not a substitute for checking title. A claim requires 3 months' written notice and must generally be brought within 6 years, with a longer period for a minor or a represented adult. Payments are capped by a formula, so compensation is not guaranteed in full.

Conflicts and who can act for you

A lawyer may act for both borrower and lender in appropriate mortgage or loan transactions if both consent, and must disclose all information material to the transaction to both. Before acting for more than one client in the same matter, a lawyer must explain the advantages and disadvantages of a joint retainer and warn that information is not confidential between the clients. Where the likelihood of a conflict is high, joint retainers should not be accepted.

Your usual family or business lawyer may not be available. A lawyer is barred from acting against a former client without that client's consent, so one who has acted for the seller or the lender could be barred from acting for you. Ask about this at the start.

What to do next

• Tell your realtor you plan to have a lawyer review the deal, and do it early.
• Ask the lawyer to explain what you are signing, what the title search shows and how the closing steps will work, and ask how timing applies to your situation.
• Confirm who will hold funds and submit the registration.
• Ask whether the lawyer also acts for your lender, and what that means.
• Ask your lender about its conditions separately, and confirm with a lawyer how they apply to your purchase.

Frequently asked questions