Must reading for anyone considering the purchase or sale of a property, home, condo or land
Home | Buying | True or False?
See how much you know about the law in the province of Alberta governing the purchase of a property by determining whether the following statements are True or False. Click on each statement to get the answer.
Title Insurance
Title insurance can protect your investment in important ways that go beyond getting a real property report and addressing compliance issues.
Answer: True
Purchase contract
The standard real estate purchase contract allows you to do a walkthrough the property before possession.
Answer: False. The standard real estate purchase contract does not allow you to do a walkthrough the property before possession.
Condominium purchase
Buying a new condominium requires less time to complete from a registration stand point and getting your financing completed is less urgent than when you are purchasing a house or resale condominium.
False. Buying a new condominium requires more time to complete from a registration stand point and you need to get your financing completed much earlier than when you are purchasing a house or resale condominium.
Side-by-side condominiums
Side-by-side two unit condominiums are not a duplex. You are buying a condominium and you will be bound by the condominium property act (Alberta).
True.
Property defects
There are two types of defects, latent and patent. Patent defects can be discovered by inspection and ordinary due diligence by the buyer. The ordinary rule on these defects is "buyer beware" caveat emptor. Latent defects are those which would not be revealed by any inquiry the buyer is in a position to make before entering into a contract. The seller is not obligated to disclose patent defects. If a seller fails to disclose a latent defect, the buyer may have a legal right to recover against the seller.
True.
Real estate contract
The standard real estate contract has a clause that the property is in the same condition as when you purchased such. When you take possession and the house has been damaged, you are entitled to damages against the seller, but you may have to sue the seller in court if the seller does not agree to repair the damages.
True.
Seller obligations
The seller is not obligated under a standard real estate contract to ensure a basement development is legal with permits.
True. The seller is not obligated under a standard real estate contract to ensure a basement development is legal with permits.
Bare land condominium
In a bare land condominium, you buy the actual land and anything built on it. The exterior repairs and maintenance obligations are the responsibility of the owner. However, such repairs may be transferred to the condominium corporation through the registration of properly worded bylaws.
True.
Sales sheet
Representations on a highlight sales sheet do not need to be included in the final purchase contract to be binding.
False. Representations on a highlight sales sheet must be included in the final purchase contract to be enforceable.
Purchase contract
The standard real estate purchase contract ensures that your final grading on a resale home has passed final inspection at the municipality.
False. The standard real estate purchase contract does not ensure that your final grading on a resale home has passed final inspection at the municipality. You should get proof from the seller that such has passed as a condition of your purchase.
Landscaping deposit
Not all landscaping deposits are assignable. When buying a used home that has not completed the landscaping be aware that such may not be assignable before agreeing to pay such to the seller in the contract.
True.
Title
When there is more than one person on title, how you hold title together has no impact on the distribution of your estate.
False. When there is more than one person on title, how you hold title together may have an impact on the distribution of your estate.
Builder's contract
If you are buying a new house, the builder's contract favors the buyer.
False. The average builder's contract for a new house is heavily weighted in favor of the builder.
Condo liabilities
If you are buying a condominium, you are not only buying your unit, but also agreeing to absorb liabilities in the form of a special assessment to cover repairs and maintenance. It is vital to review condominium documents carefully to ensure that sufficient reserve funds are available for maintenance and repair.
True.
Occupancy permit
For a new build house or condominium, the builder/developer does not have to provide an occupancy permit.
False. An occupancy permit is required.
Condominium plan
You should identify the unit you are buying from the condominium plan to ensure you are purchasing the right unit.
True.
Condo documents
Condo documents should be reviewed carefully to note any restrictions in the bylaw, such as a pet restriction.
True.
Deposit
If you are buying privately, the deposit should be paid to the seller directly.
False. The deposit should be paid in trust to the seller's lawyer.
Registrations on title
You should review all registrations on title since some have restrictive covenants that may prevent you from certain usage of the lands.
True.
Private sale
The legal help of a lawyer is less important in a private sale.
False. You need the help of a lawyer in any sale.
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