Legal & Financial FAQs

A real estate lawyer handles the legal side of your transaction. For buyers, they review the purchase contract, complete a title search, register the title in your name, and ensure funds are transferred securely. For sellers, they prepare the transfer of land, pay out your mortgage, and make sure you receive your proceeds.

In Calgary, most lawyers charge between $1,000 and $2,500 depending on whether you’re buying or selling, the complexity of the deal, purchase/sale price of the property and whether you have a mortgage. It’s a one-time fee paid at closing.

An RPR is a legal document showing your property’s boundaries, structures, and improvements. In Calgary, sellers are required to provide a current RPR with compliance from the City. Without it, the buyer can delay or refuse closing.

Title insurance protects buyers and lenders against issues with title, such as fraud, survey errors, or unpaid liens. Most lenders in Calgary require it, and even if they don’t, it’s an inexpensive ($250-$500) peace of mind for buyers, especially with infills, laneway homes, or rezoned properties.

Higher rates mean you qualify for a smaller mortgage, which reduces your purchasing power. Lower rates expand affordability. For example, in inner-city Calgary, a one-point increase in rates could shift you from affording a detached infill in Altadore to a semi-detached home in Killarney.

A fixed-rate mortgage locks in your interest rate for the term, giving you predictable payments. A variable-rate mortgage fluctuates with the lender’s prime rate, which can save you money if rates drop but cost more if rates rise. Calgary buyers often choose based on their risk tolerance and budget stability.

The mortgage stress test requires buyers to qualify at the higher of either the Bank of Canada’s benchmark rate or their contract rate plus 2%. This ensures you can handle potential rate increases. It often reduces the amount buyers qualify for, especially in higher-priced inner-city neighborhoods.

If your offer was conditional on financing, you can walk away and get your deposit back. If you waived conditions, you risk losing your deposit and potential legal action from the seller. This is why pre-approvals and solid financing plans are so important.

Yes. Private lenders can help if you don’t qualify with a bank, but interest rates and fees are usually higher. They can be useful for buyers purchasing unique properties or those with non-traditional income, which is common in the entrepreneurial crowd of inner-city Calgary.

Conditions are requirements that must be met before the sale is final, such as financing approval, home inspection, or review of condo documents. They protect both buyers and sellers by ensuring important steps are completed.

A financing condition means the buyer must secure mortgage approval before the deal is final. An inspection condition means the buyer must be satisfied with the results of a home inspection. Both are common in Calgary real estate contracts.

If conditions aren’t waived, the contract usually ends and the buyer’s deposit is returned. Extensions can be negotiated if both parties agree.

A deposit shows the buyer’s commitment and is applied to the purchase price at closing. In Calgary, deposits are typically 5% of the purchase price but can vary depending on negotiations.

Deposits are usually held in trust by the buyer’s brokerage until closing. This protects both the buyer and seller.

If a buyer backs out after conditions are removed, the seller may keep the deposit and could pursue legal action for damages. This is why removing conditions is a serious step.

Alberta does not charge a land transfer tax, which saves buyers thousands compared to provinces like Ontario or British Columbia. Instead, buyers pay smaller fees for title registration, usually a few hundred dollars.

Property taxes are based on your property’s assessed value, determined annually by the City of Calgary. The total tax rate combines both municipal and provincial portions. Inner-city homes often have higher taxes due to higher land values.

Freehold title means you own the property and the land outright. Condo title means you own your individual unit plus a share of common areas. In Inner-City Calgary, both types are common—condos in Beltline and freehold infills in Altadore, for example.

It’s a contractual right that gives someone the option to purchase a property before the seller accepts another offer. In condos, this often gives the condo board the first opportunity to buy a unit.

Bridge financing is a short-term loan that allows you to buy a new property before selling your current one. It’s common when closing dates don’t line up. For example, if you buy in Inglewood before selling in West Hillhurst, bridge financing can cover the gap.

GST applies to new construction homes, such as brand-new infills or condos. Buyers may qualify for partial GST rebates depending on the price. Resale homes are not subject to GST.

Yes. The Home Buyer’s Plan lets first-time buyers withdraw up to $35,000 from RRSPs tax-free to use toward a down payment, as long as the funds are repaid within 15 years.

When rates rise, affordability drops, which can cool demand. When rates fall, more buyers enter the market, driving up competition. In the inner city, desirable locations keep demand stronger than in suburban areas, even during rate hikes.

If the market is rising, a long possession could mean your buying power drops by the time you move in, especially if interest rates or prices climb further. You may also face more competition if you need to re-qualify for financing.

In a declining market, rushing into a short possession could mean you pay more than the property is worth within a few months. Taking time to close in a slower market may actually give you more leverage to negotiate.