Timing in Real Estate: The Key to Avoiding Extra Legal Fees

Purchasing a New Home:
What Could Go Wrong?

Timing! I keep blogging about timing because it is one of the biggest problems for real estate transactions. Issues with timing are hugely stressful; they are the most common reason for an increased legal account. And, no one likes to pay more in legal fees than they thought they were going to have to pay!

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Get to Know the Real Estate Purchase Contract in Alberta

Podcast Episode 118: “Big Changes To The Standard AREA Contract.”

September 2016 (with mild tweaks in July of 2017) brought numerous and meaningful changes to the existing 2014 residential purchase documentation approved by the Alberta Real Estate Association (AREA). These changes affected both the Residential Purchase Contract used for all homes and houses and the Residential Resale Condominium Property Purchase Contract, used for condominiums. Existing wording has been modified and new wording added. As we go through our commentary, we will refer to the contracts as the 2014 contract and the 2017 contract. This podcast and the accompanying text explain the changes and what they mean for buyers, sellers, realtors, and lawyers dealing with real estate in Alberta.

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Walk Away From a Real Estate Deal at Your Own Peril!

Podcast Episode 116:

“Failure To Close? More Than Your Deposit Is At Risk!”

A real estate purchase contract is a legally binding agreement. If the buyer doesn’t meet their obligations by closing the purchase, there can be financial repercussions. At a minimum, the buyer will lose their deposit. But it can be far, far worse. In this Tale, a BC real estate buyer didn’t close and ended up paying for it after the courts ruled in favour of the seller.

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Flipping Properties is Risky. Here’s Why!

Podcast Episode 113:

“So, You Want To Be A ‘Flipper.’”

There is a whole section of the real estate investment world known as ‘flipping.’ Basically, flipping is when an investor gets control of a property by signing a purchase contract, but rapidly sells it to someone else for a profit. Don R. Campbell of Real Estate Investment Network (REIN) fame has long cautioned against the most common form of flipping, which is to invest in condominium pre-sales. This is a Tale about a client of mine who got caught trying to flip a bunch of properties

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Permits in Real Estate Contracts

Why Are Permits Important in Purchase Contracts and How Do They Affect the Buyer?

Barry and Keith continue their discussion about Alberta real estate, delving into how to deal with permits in purchase contracts. In this video, you’ll hear why just having a permit isn’t enough!

 

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Real Property Reports in Alberta

What’s a Land Survey and Why Do You Need One to Sell your Property?

Barry continues his conversation with Century 21 realtor Keith Faria. This time they’re talking about Real Property Reports (RPR), which are two-dimensional drawings created by professional surveyors.

In Alberta, the standard real estate purchase contract requires sellers to provide a current RPR and proof of municipal compliance. Watch the video to get an explanation of what these terms mean and why they’re important.

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Holdbacks in Real Estate Purchase Contracts

Holding Money Back to Get a Seller to Fix Problems with a Property

Barry recently had a chat with Century 21 realtor Keith Faria about holdback clauses for buying and selling real estate in Alberta. They recorded this video to share their thoughts and advice with you.

In a real estate purchase contract, there are ways of getting a seller to do things to the property before the sale. A ‘holdback’ is a clause that reserves part of the purchase money to fix problems—just in case the seller doesn’t do things when or how they were supposed to…

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How to Lose a Deposit: Unmet Conditions Can Sink a Real Estate Deal

Podcast Episode 107:

“Conditions, Lost Deposits,
and Collapsed Deals.”

In other Tales from the Trenches I’ve talked about the importance of accomplishing sufficient diligence on any property purchase to say that you have done ‘Due Diligence.’ It’s worth repeating here because it’s so important. The notion of doing or accomplishing your own Due Diligence is what allows you to make a buying decision. Will you buy or not buy? In this Tale, a deal falls through because of a lack of diligence regarding financing conditions.

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Due Diligence Fails

Podcast Episode 95:
“A Couple on Due Diligence

I talk a lot about due diligence because it is one of the most important aspects of achieving success with real estate. This is a two-part Tale, showing a couple different examples of problems to look out for when doing one’s due diligence. The first example is about what happened when someone bought a property that was scheduled for renovation, but didn’t look into the plans. The buyer thought everything was taken care of—until things went wrong with the contractor. The second example is about someone who bought a bunch of condo units. The buyer got hit with a special assessment shortly after closing, which was a surprise because there was no deferred reserve study available. In this podcast, I draw important lessons from these examples and make suggestions about how to avoid similar problems.


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For an experienced and reliable Alberta real estate lawyer in Edmonton, contact Barry now!

House/Home Inspection” image by Mark Moz used under CC Attribution 2.0 Generic.