Curtis Leibel 780-438-2500

Whether you are selling or purchasing a property in the Province of Alberta, you will be required to sign a form called the Consumer Relationships Guide.  This is not part of the purchase contract, rather a form that will be held on record by the Real Estate company representing you in the transaction.  The purpose of the form is to explain the relationship and responsibilities of both the Realtor/and or client so that everyone involved is aware and well informed about the role both parties play throughout the transaction.

Although fairly self-explanatory, these are the major issues it brings to awareness:

1. Agency relationship – explaining that when you enter to this relationship, you are represented by an agent as well as the agents brokerage that is acting in your best interest.
2. Agents responsibilities – undivided loyalty, confidentiality, full disclosure, obedience, reasonable care and skill and full accountability are the responsibilities that every agent must exhibit.
3. Customer relationship – if you choose not to be represented by a Realtor in a transaction, the Realtor is not able to provide you the same services as if they were to act on your behalf.
4. Conflicts of interest – if you choose to have the same Realtor represent both the seller and buyer in a transaction, you are entering into what we call a transaction brokerage.  You must be made aware of this, and are required to sign another form which explains this situation fully.

You will come across these, among other items when completing the form to agree to be represented by a Realtor.  If you have any questions at all regarding this subject matter, do not hesitate to ask your Realtor and/or their brokerage for further explanation.

In the final blog regarding the purchase contract Ill touch on possession date.  Again, this is a point of negotiation between seller and buyer.  Quite often when a seller lists their home, the listing will include the sellers preferred date of possession (ie. 30 days, June.1, negotiable, etc….).  When a buyer writes their offer, they may take this into consideration, but ultimately will want to put a date that is ideal for them.  Once a date has been agreed upon by both parties, this will be the actual date that you take possession of the property.  As per the terms of the contract, vacant possession will be made available at 12 noon on that day; meaning that both parties will have met and signed papers with the lawyer before this date, financing will have been arranged, and the property has been emptied, cleaned and vacated.

Now there are circumstances where possession is delayed.  The most common I see is a a delay in the bank sending over the money to the lawyers.  In this case, most often your lawyer will have the seller sign a form ahead of time, stating that you are still able to take possession of the property at that time, but only as a tenant.  You will not in fact own the property and will be paying interest on it until the funds are actually received by the lawyer, at which point only then you become the new owner of the property.  It is important to discuss with your lawyer the options ahead of time, should there be an unforseen delay in the possession of the property.  I always recommend avoiding Friday possession dates (although these tend to be most common), as a delay on Friday would mean nothing will be resolved until Monday at the earliest – meaning you could be on the hook for interest for 2 extra days, or even worse be without a home for the weekend.