Real estate markets across Canada are facing headwinds – though Alberta has been spared the brunt of these issues, there are still challenges.

Sellers who get their legal and practical house in order before listing are the ones who close with fewer surprises. Here is what we tell clients who are selling in the current Alberta market.

1. Know your numbers before you list

Start with your mortgage. Ask your lender for a payout statement and find out what discharging the mortgage will cost, including any prepayment penalty. If you’re moving to another property, ask whether your mortgage is portable. In a slow market, a sale that takes longer than expected can leave you carrying two sets of costs, so it helps to know your real bottom line before you accept or counter an offer.

Also confirm what will be paid from your sale proceeds: the mortgage, real estate commissions, legal fees, outstanding property taxes, and any claims registered against your title.

2. Be realistic and stay flexible

Price is still the most powerful tool a seller has. Homes priced to the market attract offers, while overpriced listings go stale, and stale listings tend to sell for less in the end. Work with your realtor to price against recent comparable sales, not last year’s peak, and consider whether modest updates or staging would help your listing stand out.

3. Clean up your title early

Any issues on your title can stall a closing. Your Realtor should be well-versed in identifying potential concerns but in the end, your lawyer may need to be involved to clarify what is or is not needed. Common issues include unpaid builders’ liens, old caveats, and undischarged financial claims against a previous owner. Finding these at the start of a listing gives you time to fix them. Finding them a week before closing (which is too often the case because lawyers aren’t consulted early enough) puts your sale at risk.

4. Get your Real Property Report in order

In Alberta, buyers generally require or expect a current Real Property Report (RPR) that is current (shows all the existing improvements on it) with a municipal compliance stamp. If you’ve built a deck, garage, fence or addition since your last RPR, it likely does not reflect what’s on the property today. Encroachments and non-compliant structures are a frequent reason for renegotiation or delay. In a buyer’s market, buyers use these issues as leverage. If one is needed and your old one is not up to date, ordering an updated RPR before you list, and addressing any problems, takes that leverage away.

5. Condominium sellers: your building is part of the sale

Condo buyers are buying into a corporation as well as a unit, and in a slow market they look closely at the building’s finances. Expect them to ask for:

• The current budget and financial statements
• The most recent reserve fund study
• Minutes of board and general meetings
• Insurance information, including deductibles
• Notice of any special assessments, pending or approved
• The bylaws, including rental and pet restrictions

Request your documents early and read them the way a buyer would. If the building has a low reserve fund, a recent special assessment, or a significant repair on the horizon, you’re better off addressing it in your pricing and disclosure than having a buyer discover it and walk away. Under the Condominium Property Act, the condominium corporation can be asked for, and must produce all of this information.

6. Structure the contract carefully

In a challenging market, the terms of the contract matter as much as the price. Think carefully about:

• Conditions: Financing and inspection conditions are more common when buyers have the upper hand. Pay attention to the removal dates and who can waive each condition.
• Deposit: Confirm the amount, who holds it, and when it is payable. A larger deposit signals a more serious buyer.
• Possession and closing dates: Build in enough time to close your sale, and understand your options if the buyer’s financing falls through.
• Inclusions and exclusions: List appliances, fixtures and anything else that is or isn’t part of the sale.
• Default remedies: Understand what happens if the buyer fails to close, including your rights to keep the deposit or pursue other remedies.

Small wording choices can shift real risk to you.

7. Think about the tax picture

If the property has been your principal residence, the sale is generally not taxable, but it still needs to be reported correctly on your tax return. Sellers of investment properties, rental units, or homes that were partly used for business face a different analysis. If you’re a non-resident of Canada, there are additional withholding and reporting obligations. Speaking with your accountant before listing the property may create solutions prior to giving rise to problems that cost you dearly.

8. Special circumstances need extra planning

Some sales carry added complexity, and a slow market makes delays more costly:

• Separation or divorce: The sale of a family home is often tied to property division under Alberta’s Family Property Act. Timing, consent and the division of proceeds should be settled in writing.
• Estate sales: Selling a home after a death typically requires a grant of probate or administration before you can transfer title.
• Co-owners: If owners disagree about whether or when to sell, resolve that before listing.
• Tenants: If the property is tenanted, the sale has to respect the tenant’s rights and proper notice requirements.

This article provides general information only and is not legal advice. Every situation is different, so please speak with a lawyer about your circumstances.