Frequently Asked Questions

In order to get started on your sale or purchase we’ll need the following information: the full legal names of the seller(s) or buyer(s), the best phone number and email to contact you, the address of the property you are selling or buying, the Completion Day (when you move in or move out), any condition dates, your mortgage account number and bank/lender information (if you have one), your real estate agent (if you have one), marital status (if you are single, married, or legally divorced), a copy of your purchase or sale contract, a copy of your Real Property Report (RPR) with Municipal Compliance, and you’ll need to provide photo ID (driver’s license or passport). The best way to get us this information is through our on-line intake form.

Once the buyer and the seller have reviewed all documents to their satisfaction and they have waived all the conditions of the real estate contract, the buyer and seller have a firm deal. This means that neither party can back out of the deal without legal repercussions.

Now, it is time to contact Fee Simple Law with the details of the real estate contract. You can do this by calling our office or by visiting our website and completing our on-line intake form.

The buyer and seller should instruct their real estate agents to send the conveyancing instructions to Fee Simple Law. And, the buyer should instruct their lender or mortgage broker to send mortgage instructions to Fee Simple Law.

Yes, we can act for both the buyer and the seller on a real estate transaction. In fact, we prefer to act for both sides because it reduces any communication issues that may delay the purchase or sale. It also makes for a transparent transaction because any information received cannot be treated as confidential so far as the other party is concerned. There are exceptions when the mortgage lender requires the buyer to have a different lawyer from the seller. If this is the case, we will let you know well in advance and advise each party of their options. Similarly, if a major dispute were to arise, then we would advise each party of their options and the opportunity to seek independent legal counsel.

Once we have all your information gathered and we have prepared all of your documents, we will arrange an appointment for you to sign documents. We want to make your appointment with us as convenient for you as possible and we will do our best to accommodate you. Please let us know immediately if you are planning to be out of town for an extended period of time prior to the possession date.

You’re busy – we understand. We want to make your appointment as simple as possible. The Land Titles Act of Alberta requires Fee Simple Law to get a “wet ink” signature from all clients. This means we must physically see you sign your land transfer documents (including your mortgage). Some of your documents can be signed electronically and we’ll do our best to make that happen when we can. However, please note that we will need to see you in person to sign documents.

If you are not able to sign with Fee Simple Law, you will need to sign the land transfer documents at a Notary Public in another province or another country. Please be aware that this may take some time to facilitate so please let Fee Simple Law know well in advance that you will need to sign out-of-province. Also, please be aware that additional fees may apply in order to facilitate this process.

Please let us know if you will not be able to attend our office in person. We can arrange to see you sign documents over Zoom or FaceTime. How this works is we send you documents via email, you print the documents, a lawyer witnesses you sign the documents over two-way conference, and then you courier the documents to our office. This process can take a little longer, so please let us know as soon as possible if you require two-way video conference.

No, please do not change your photo ID until your transaction is complete. We are required to verify your photo ID and the address does not matter. Please make sure it is not expired. You will need to bring at least 1 and sometimes 2 pieces of identification with you to your appointment, one of which must be government issued photo identification such as a driver’s license or passport. Every lender has different requirements, so once we have your mortgage instructions, we can let you know what second piece of identification you will need to bring with you.

Once we receive the funds for your sale, we will pay out your mortgage company, any other financial obligations registered on title, realtor commissions, outstanding property taxes, and our account for this transaction. If you would like us to deposit the remaining sale proceeds to your bank account, please provide our office with either a void cheque or your bank account information and we will do our best to accommodate your request. Most transactions close on or before 12pm (noon) on the Completion Date according to your real estate contract and the sale funds are deposited into your account around 4pm on the Completion Day (unless there are delays). We will require a VOID cheque or your Direct Deposit information in order to deposit the sale proceeds into your account.

Once we receive the funds for your sale, we will pay out your mortgage company, any other financial obligations registered on title, realtor commissions, outstanding property taxes, and our account for this transaction. If you would like us to deposit the remaining sale proceeds to your bank account, please provide our office with either a void cheque or your bank account information and we will do our best to accommodate your request.

The Dower Act of Alberta requires Fee Simple Law to make sure that any person with a legal right of ownership to a property is aware that the property is being purchased, sold, or re-financed.

Yes, one thing that you need to do right away is arrange to have home insurance put on your new property. This has to be in place before your lender will send us your mortgage funds. The property will need to be insured for its full replacement value and your lender will have to be named as first loss payable. Your insurance provider will provide a BINDER LETTER binding the insurance to the property. Please give your insurance company my contact information so we can confirm insurance.

Although you can let your insurance company know about the sale of your home, please do not cancel your home insurance until the sale is complete and our office has received the funds from the purchaser’s lawyer. At this time, we do not anticipate any delays, however, unexpected delays can happen and you will want to keep your property fully insured until the sale is complete.

Banks will not release your mortgage funds to Fee Simple Law until we confirm that you have property/fire insurance in place. It is important that you list your bank as first loss payable on your insurance policy as your bank has an interest in your property. If you are purchasing with cash, you do not need to provide insurance, but we strongly encourage you, as the buyer, to make sure you have insurance coverage on your new home prior to the completion day.

Yes, it is your responsibility to call your utilities providers to let them know that you have sold your property. They will then come out to read your utilities as close as possible to the date of possession and they will also take the utilities out of your name(s) and put them in the purchaser’s name.

In order to provide you with legal ownership of your home, we will register your legal name(s) and address on title to the property. This is done at the Alberta Land Titles Office (ALTO).

Yes, once everything is complete, we will then provide you with a complete reporting package detailing the purchase. We can mail this to you at a new forwarding address or we can email you a digital copy if you prefer. Please let us know which you prefer.

You can use an Enduring Power of Attorney (EPA) to sign on behalf of someone else. Please advise Fee Simple Law in advance that you plan to use an EPA as not all EPAs provide that the attorney can sign land transfer documents. Also, please note that Land Titles Office requires the original EPA or an original “wet ink” notarized copy in order to transfer land, and the Land Titles Office keeps the EPA provided for their records. Depending on the EPA you will also be required to provide original or notarial copies of the doctor’s notes.

A Real Property Report or RPR is an overhead drawing of your property, prepared by a land surveyor, which shows the property lines and the location of all current improvements on the property, such as the house, garage, shed, deck, fences, etc. This document is important because it shows that these improvements are included with the property and are within the property lines. It also enables the municipality to review the improvements to ensure that they comply with the municipal by-laws, and that the proper permits were pulled when everything was built. This is important because, for example, should the deck not meet the building code, it may need to be removed. Typically, the Seller provides the RPR and the Realtors should have access to a copy. If there is no RPR or the RPR is not current and complete, then the purchase or sale of the property may be delayed or even terminated.

A Real Property Reports (RPR) must be accompanied by a Letter of Municipal Compliance or a Stamp of Municipal Compliance from the town or city where the property is located. This confirms the property complies with the municipal by-laws. If there is no Municipal Compliance with the RPR, then the RPR is not complete, and the purchase or sale of the property may be delayed or even terminated.

A Real Property Report (RPR) must be accompanied by a Letter or a Stamp that states that the RPR was prepared by a certified Alberta Land Surveyor. This confirms that the RPR was prepared to the standards of the Alberta Land Surveyors’ Association. If there is no Land Surveyor Certificate with the RPR, then the RPR is not complete, and the purchase or sale of the property may be delayed or even terminated.

Most Residential Purchase Contracts dictate that the seller must provide the RPR. If you are selling your property, we highly recommend that you have an RPR prepared before you list your property for sale. This will give you plenty of time to resolve any matters that may delay the sale of your property.

Yes – the buyer should review the RPR and Municipal Compliance prior to removing financing or inspection conditions. Some lenders require that the buyer have an RPR with Municipal Compliance. It is not enough to accept that the seller will provide an RPR – as it may not be current. If a seller is reluctant to provide an RPR with Municipal Compliance, it could mean there is a problem with an improvement to the property. For example, the deck may have been built without a permit.

There is no magic to understanding an RPR. If there is a house, a garage, a deck, a pergola with a hot tub, and a fence on the property – then you need to look at the RPR to ensure there is a house, a garage, a deck, a pergola with a hot tub, and a fence showing on the RPR. If something is missing, you need to ask for an update or a new RPR. If you have any questions about your RPR and the Municipal Compliance Letter, we encourage you to contact the Alberta Land Surveyor who prepared it or the municipality who issued the letter.

RPRs do not expire. So long as all the current improvements are showing on the RPR and the Municipal Compliance is current – the RPR and Municipal Compliance should be satisfactory. However, some banks do not accept RPRs that are more than 10 years old. If you are buying, you should check with your bank to see if a new RPR with Municipal Compliance will be needed.

Yes, if the buyer is agreeable to accepting an RPR and Municipal Compliance “as is” then the buyer can do that. In this situation, it is important to delete clause 10.2 from the AREA contract that states the seller will provide a current RPR and Municipal Compliance and delete clauses 6.1 (d) and (e) (i) and (ii) which address the Municipal Compliance. Then, it is important to include in 9.2 Other Terms – that the buyer will accept the current RPR and Municipal Compliance “as is” and include the date that the RPR was prepared.

If someone is buying your house to knock it down or do significant renovations to the outside property, then an RPR may not be necessary as the new owner will need to get a new RPR showing the new improvements to the property. In this situation, it is important to delete clause 10.2 from the AREA contract that states the seller will provide a current RPR and Municipal Compliance and delete clauses 6.1 (d) and (e) (i) and (ii) which address the Municipal Compliance. Then, it is important to include in 9.2 Other Terms – that the buyer will accept the current RPR and Municipal Compliance “as is” and include the date that the RPR was prepared OR the buyer agrees that no RPR will be provided.

No. Trees do not appear on RPRs. That said, be aware that some fence lines or structures may be built around trees which is why they may appear to be in a strange location on the property.

No one likes paying taxes – we get it! However, the buyer and seller are each responsible to pay property taxes for the period of time that they own the property. Taxes are calculated from January 1 to December 31 of the calendar year. So, for example, if the property is sold on May 15 then the seller is responsible for the property taxes for the period of January 1 to May 15 and the buyer is responsible for the property taxes for the period of May 16 to December 31.

At Fee Simple Law, we request a tax certificate for the property from the municipality in which the property is located. Then, we adjust the taxes owing, right down to the penny, on the Completion Day to ensure that the buyer and seller each pay the portion of the taxes for which they are responsible.

Municipalities differ on how and when they collect property taxes. Some have monthly plans and others have different dates when taxes are due in full. If the seller has already paid for the entire year’s taxes but is not responsible for the entire year’s taxes (because they are no longer the owners of the property) then the seller is credited back the portion of property taxes for which the buyer is responsible. Municipalities do not refund taxes, so the buyer must reimburse the seller for the portion of property taxes that have already been paid.

Tax Instalment Pre-payment Plan (TIPP) is available in most municipalities across Alberta. By signing up for TIPP, taxpayers can make manageable monthly payments to their property tax account. To be eligible for the TIPP program, your current year property tax account must be paid in full.

No. You can pay your yearly taxes when they are due at your municipality. Contact your municipality for more details about payment methods.

Yes, some lenders can set up a tax account and pay your taxes for you. This means your lender will collect monthly tax installments in addition to your monthly mortgage payments. Your lender will then pay your yearly property taxes on your behalf.

If your mortgage company is paying your taxes, they will start collecting them in July. If you are buying in a month other than July, then the holdback is the amount that the mortgage company needs to collect to bring your mortgage payments up to speed as if you were paying them since July. If for example your tax payments are $200.00 and you buy your house in October, then there would be a tax holdback for July, August, and September (3 months x $200.00 = $600.00).

If the Seller of a property was on the TIPP program they may have pre-paid their taxes and have a tax credit with the municipality. Municipalities do not refund taxes. Therefore, the Buyer must purchase the tax credit and the tax credit remains with the property. This credit will then be applied towards the property taxes when they become due.

If there are unpaid taxes in arrears, then the Seller will be responsible to pay for those taxes owing on the property before it can be transferred.

Yes, we inform the municipality that you have sold the property but we strongly encourage you to contact the municipality directly to cancel any pre-paid tax plans and inform them that you have sold the property.

Most Residential Purchase Contracts provide that the transaction becomes official at 12pm (noon) on the Completion Day. However, you legally own the property once we have released your purchase funds and the real estate agents have released the keys to the new buyer. Sometimes this transaction occurs before 12pm (noon) according to the instructions from our clients. Once the Buyer instructs us to release the money – the property is sold – and keys are releasable immediately.

Prior to your appointment we will let you know the total amount of funds that we require from you to complete your purchase. Your funds must be made payable to Fee Simple Law LLP, in trust and must be in the form of a bank draft or certified cheque.

As a courtesy, the seller often allows the buyer to “walk-through” the property on the Completion Day to ensure that the property is in the same condition as at the time the buyer viewed the property. This is facilitated by the real estate agents. Please note this is only a courtesy and most Residential Purchase Contracts do not provide that a “walk-through” will be allowed. If it is very important for you to view the property on the Completion Day, be sure to make this a term of your Residential Purchase Contract.

Your real estate agent should be there right up to the Completion Day and helping with any last-minute questions or issues. Fee Simple Law does not visit the property and we cannot answer any specific questions about problems that may arise on the Completion Day, such as cleanliness issues or broken items. If, for example, there are any issues such as a broken dishwasher, then the real estate agents should help negotiate the terms to which that will be repaired or replaced and instruct Fee Simple Law accordingly.

A holdback is NOT provided for in most Residential Purchase Contracts. That said, if the Buyer and Seller are agreeable to a holdback, one may be used in circumstances where something is wrong with the property on the Completion Day. For example, a storm damages the roof of a property. In this case, a holdback may be negotiated for $5,000 to be held back (not released) to the Seller of the property until the insurance company looks at the damage. The holdback provides incentive to remedy the situation and the money may be used to fix the roof or pay for the insurance deductible if need be. If, for example, the insurance deductible is needed and it costs $1,000 then that amount goes towards the roof repairs and the remaining $4,000 is released to the Seller.

Please let you mortgage broker or bank know that you are using Fee Simple Law, and ask them to send documents to us as soon as they can. Also, please go online and complete our intake form.

Fee Simple Law ensures that your existing mortgage is paid in full and removed from title. In order to do this, we need to know the name of your lender, your mortgage number, and the approximate balance owing so that we can request a mortgage payout statement.

A mortgage is a loan that gets registered on the land title certificate of a property. At Fee Simple Law, we register or discharge your mortgage according to the instructions we receive from your lender and/or your mortgage broker. Our job is to ensure that your mortgage is registered according to the agreement you signed with your mortgage lender. There are many different mortgage products available and we cannot answer specific questions about those products. Therefore, we strongly encourage you to speak with your bank or mortgage broker should you have any questions.

A mortgage payout statement is a statement from your bank that provides the amount that needs to be paid in order to fully pay off your mortgage so that it can be removed from the title of the property you are selling. This will include the balance remaining on your mortgage, any applicable payout penalties and any accrued interest. You should check with your lender to see if there is a penalty for paying off the mortgage before your term is complete. It is important that you contact your bank or mortgage lender to fully understand what is expected of you to have your mortgage discharged from the land title. Again, we can only complete the transaction according to the instructions we receive from your bank or mortgage lender. If you have questions about any of the terms or conditions of your mortgage, you should ask your bank or mortgage broker these questions directly. They are aware of your financial situation and the best people to answer questions related to your mortgage.

If you are getting a mortgage for your purchase, we need to receive mortgage instructions from your lender. These instructions tell us how to prepare your mortgage as well as all of the things we need to do before your lender will actually send us the money that you are borrowing. It is important to note that we cannot complete the documents for your purchase until your mortgage instructions are received. As such, we will not be able to book you an appointment time until your instructions are received.

Once the title for money is transferred on the Completion Day, Fee Simple Law sends a request to the Seller’s bank to remove the mortgage registration from the Land Titles Office. Depending on the bank and the demand at Land Titles, this may take up to 6 weeks or longer.

Condo-docs or Condominium Documents are documents that you should review prior to removing your inspection and financing conditions if you are purchasing a condominium unit. These documents may include the recent minutes of condo board meetings, the by-laws of the condo association, and the reserve fund or money held by the condo board to repair the condo units. It is important to review these documents with a qualified professional so that you understand any special rules (such as no pets allowed) or any financial concerns (such as the condo needs a new roof but there is no money in the reserve fund to repair the roof). Fee Simple Law does not review condominium documents. However, a quick on-line search reveals the many options available.

On Completion Day, the Condominium Board or Condominium Management Company must provide an Estoppel Certificate which certifies the current financial and governance situation of the Condominium Corporation, the Condominium Common Property and information on the Specific Unit. It identifies that the Condominium Property is insured and if any special resolutions have been passed that require the owner of the Condominium to contribute specific funds to the repair of that property.

A listing contract is what you sign with your real estate agent that outlines the terms of what you will pay your real estate agent to sell your property.

A Residential Purchase Contract outlines the details as to when you will buy or sell a property. Fee Simple Law can only complete the purchase or sale of property in accordance with the real estate contract entered into between the Buyer and the Seller. Therefore, it is extremely important that you understand your real estate contract before you sign it. Please watch our video.

If you have already found a buyer or seller for your property (for example, a landlord is selling her property to a tenant) then Fee Simple Law can help put the contract together to facilitate this purchase and sale. One thing we cannot do is offer advice on the condition or the value of the property. However, if a buyer and seller can agree on a purchase price and the details of when the transaction will close (such as the condition date and Completion Day) then you can instruct Fee Simple Law to put that contract together according to the terms and conditions agreed upon. All we need to know is the names, the address, the price, and the date that the deal happens. Once we receive that information, we can put a contract together for you to sign and move the process forward.

Title insurance is an insurance policy that is designed to protect the new buyer, the home owner, against challenges to the ownership of the property or from problems related to the owner’s title to the property. A title insurance policy provides coverage against losses due to title defects, even if the defects existed before you purchased the property. We strongly encourage you to completely understand title insurance before you purchase it, and Fee Simple Law LLP is not responsible for any title insurance policy you may buy. Please read our FAQ: What’s the difference between Title Insurance and an RPR?

An RPR and Municipal Compliance creates more certainty about the structures on the property, and any possible defects with the current improvements on the property or Municipal Compliance. There is nothing wrong with title insurance, per se, however, it is just that – insurance. It only covers the new owner if a non-known defect is found with the property after the transaction has been completed. For example, a developer goes to build a new house beside you and it is determined that your garage is built on the neighbouring lands, title insurance would, theoretically, cover the costs of moving that garage or finding a solution to remedy the issue. However, like all insurance programs, there would be an investigation to see if anyone knew the garage was built outside the property lines, and title insurance may/ may not cover the cost to remedy any damages. Whereas, an RPR with Municipal Compliance will provide more certainty, in that, you will know/ not know that the garage or other structures are within the property lines before you commit to buying the property. We advise reviewing an RPR and Municipal Compliance as part of your property inspection.