What a Real Estate Lawyer Does When You Buy a House in Alberta

Buying a home involves a lot of paper and several deadlines, and much of the work happens where you cannot see it. Knowing the order of events makes it easier to follow what your lawyer is doing and why you are asked to sign certain things.

This article walks through a typical Alberta purchase in order. Details vary with the property, the lender and the contract, so treat it as a general picture rather than a script for your file.

This article covers the law of Alberta.

Reviewing the contract and your situation

The work usually starts with the purchase contract. Your lawyer reads the terms, explains what you have agreed to, and flags dates and conditions that need attention. Only lawyers can give legal advice on a purchase, so this review is not something a realtor or notary can do for you.

Bring the contract, your mortgage commitment if you have one, and details of anyone buying with you. The sooner your lawyer sees these, the more room there is to raise problems before a deadline passes.

Searching title

Alberta land registration is based on the Torrens system under the Land Titles Act. The government holds the original titles, documents and plans, and registering documents at Land Titles is what creates and ends legal rights in the land.

A title search shows the current owner, mortgages, caveats, easements, builders' liens and other registered interests. It is ordered through SPIN2 or a registry agent using a legal description, LINC number or title number.

This matters because a certificate of title is conclusive proof in all courts that the named person owns the land for the estate stated. There are exceptions, including fraud in which the owner participated, certain reservations, claims under a prior certificate of title, and land included by wrong description of boundaries, so a buyer can still be affected by these.

Preparing documents and signing

Your lawyer prepares the transfer and, if you are borrowing, deals with the mortgage. A mortgage is a charge on the land that secures a loan between borrower and lender. It must be executed in the prescribed form or to the like effect, must accurately state the interest mortgaged, and must describe the land sufficiently to identify it.

Lenders often use a standard form mortgage filed with the Registrar, and a mortgage that refers to the filed form's identifying number has the same effect as one setting out the full terms.

At signing, an instrument signed in Alberta must be witnessed by a person who signs as witness and makes an affidavit in the prescribed form, and a lawyer's office usually arranges this. A party to the instrument cannot witness it, nor can a spouse consenting to it under the Dower Act. If you sign outside Alberta, a different witnessing process applies.

Funds, fees and registration

Land Titles fees are required at the time of submission. For submissions received on or after October 20, 2024, a Land Titles Registration Levy applies, and for transfers of land and mortgages it is $5 per $5,000 of property value. The Registrar will not perform a duty until the prescribed fees are received, so a lawyer's trust account usually handles payment.

The purchase is completed by registering an Application for Transfer of Land (form LTS14766), and the mortgage is registered on the mortgage form. Once registered, an instrument becomes operative, and registration, not signing alone, is what transfers or charges the interest. Priority between instruments is decided by the serial number assigned on registration, so prompt registration protects the buyer and lender against competing registrations.

Keys and what happens after

Once the transfer and mortgage are registered and the money is in place, your lawyer confirms completion and you receive the keys through the arrangements set in your contract. Timing depends on the contract and on the parties, so confirm the possession date with your lawyer.

If something does go wrong, remedies are limited. A person who loses land through the Registrar's error or an error in a certificate of title may sue the Registrar, but the Act is not a substitute for checking title. A claim requires 3 months' written notice before the action, and it must generally be brought within 6 years of the deprivation or of the error, with a longer period for a person under the disability of being a minor or a represented adult.

What to do next

• Send your lawyer the signed contract and mortgage commitment as soon as you have them.
• Note every date in the contract and confirm which ones need action from you.
• Ask when you will be asked to sign and what identification to bring.
• Ask when funds must reach the lawyer's trust account.
• Confirm the possession date and how you will get the keys.

Frequently asked questions