Let have a look at the documents that will be required when buying a Fort McMurray home:

Working with a real estate agent

This is a brochure that is provided to both sellers and buyers at their first meeting with a realtor. Regulations have made it mandatory for real estate agents to explain their relationship with clients.

Following a discussion with the realtor, you will sign a statement on the brochure to acknowledge that the discussion took place. The signed statement doesn’t give you any obligation to the realtor.

Property Disclosure Statement (PDS)

The seller is legally bound to provide accurate information concerning the property put on sale. The information will include knowledge about the property, any upcoming expenses, defects that the owner is aware of and other assessments in strata-titles properties.

All this information is filled out by the seller on the Property Disclosure Statement form. All answers should be complete and correct to avoid liability on the seller. The buyer must make other inquiries to ensure that every aspect of the property is covered. The realtor is prohibited from filling out the PDS on behalf of the seller.

Exclusive Buyer’s Agency Contract

An exclusive buyer agency contract is signed by the buyer with their realtor. In the contract, the services that you will receive from the realtor will be outlined as well as the obligations of the buyer and realtor in the transaction.

Most listing contracts on the MLS provide compensation for the agent who obtains a buyer for the property. The realtor will demand that you have a written agreement regarding compensation.

The remuneration of the agent will be derived from the transaction and will be financed as part of the mortgage. The commitment between the client and realtor ensure better service and a wider selection of property to choose from.

Limited Dual Agency Agreement

The limited dual agency agreement is completed where the agent represents both the buyer and the seller in a single transaction. The agreement will provide authorization to the agent to present the two parties in a limited capacity while maintaining the confidences of the parties with regard to negotiating positions and personal information. The form is particularly used where two salespersons from the same company are handling a transaction.

Contract of Purchase and Sale

It is the standard contract that is signed by the sellers and the buyers. The contract of purchase and sale outlines all aspects of the transaction such as price, handling of existing tenants, terms and conditions, dates, the deposit and increases, inclusions and exclusions, and other legal matters such as matters added to the preprinted contract and added clauses.

Addendum

A special preprinted addendum is added to the basic sales contract if there is financing to be cleared from the title before the seller is able to provide clear title or where financing is required after the title is registered in the buyer’s name.

Addendum (without printed clause)

The basic blank addendum is used to include additional clauses to the contract where there is insufficient space on the contract. The buyer signs the form to indicate removal of the clause.

Amendment to Contract of Purchase and Sale

The document serves to remove conditions (subject removal) when they have been satisfied such as where the buyer must find financing by a specific date.

Leases

The lease is commonly used in commercial transactions as opposed to residential transactions. Some tenants and landlords will prefer to use the lease to guarantee the stability of tenure.

The commercial lease is a complex document that must be drawn by experts in the field and should be reviewed by lawyers of each party.

The residential lease is not entirely complex since it is simply an outline of rules and regulations in the building, the expectations of the owner and the tenant not captured in the Residential Tenancy Act.

Consult Fort McMurray Realtor or lawyer if you encounter challenges in drawing up and in the interpretation of specific clauses.

Mortgages

Mortgages come in different formats depending on the lending institution. A simplified form is used whereas the larger form is used where deviations occur. Buyers are advised to check if document reflects the contents or terms agreed to when signing the commitment letter. Check and confirm the interest rate, the amortization period, the assumably of the mortgage if the property is sold, the prepayment privilege, the options (if any) for increasing the number of payments or making lump sum payments, and the portability of the mortgage if the seller wishes to use it on another property.

If you are a seller who is carrying financing for a buyer of your property, ensure that your lawyer reviews the documents before signing them. If you are a buyer who is asking a seller to carry financing, ensure that your own lawyer reviews the documents as well. It will help to avoid serious issues that may arise where the parties are unfamiliar with mortgage financing laws.