How the Real Estate Market Works (Alberta Edition): From Offer to Keys

Introduction: Understanding Alberta's Real Estate Process

Buying or selling a home in Alberta follows a specific legal framework governed by the Real Estate Act and enforced by the Real Estate Council of Alberta (RECA). Understanding this process—from making an Offer to Purchase through receiving your keys—helps you navigate confidently and avoid costly mistakes.

This comprehensive guide walks you through the entire Alberta real estate transaction process using information from RECA, the Alberta Real Estate Association (AREA), and CREB® (Calgary Real Estate Board), the primary resources for Alberta's real estate market.

Phase 1: Pre-Offer Preparation

Get Mortgage Pre-Approval

Before submitting an Offer to Purchase, secure mortgage pre-approval. This establishes how much you can borrow based on your income, credit score, and financial situation. Pre-approval demonstrates to sellers you're a serious buyer with financing arranged, significantly strengthening your position.

Determine Your Budget

Based on pre-approval, establish your maximum purchase price including down payment (minimum 5%) and closing costs of approximately 1.5-4% of the purchase price. Remember that new homes or substantially renovated properties may be subject to GST, which affects your total cost.

Work With a RECA-Licensed REALTOR®

In Alberta, all real estate professionals must be licensed by RECA (Real Estate Council of Alberta) and registered with a brokerage to trade in real estate. A qualified REALTOR® provides market insights, helps identify properties matching your criteria, guides offer strategy, and coordinates the entire transaction.

You can verify that your REALTOR® holds valid RECA licensing through the RECA ProCheck tool, which allows you to search for professionals licensed in Alberta to represent you in real estate transactions.

Phase 2: Making an Offer to Purchase

Understanding the Alberta Residential Purchase Contract

The Alberta Residential Purchase Contract is a legally binding agreement used when buying or selling noncondo residential properties such as detached homes, townhouses, or duplexes. It outlines everything you and the seller need to agree on, including offer amount, possession date, conditions, terms, and responsibilities of both parties.

Key Components of Your Offer

Offer Amount: Your proposed purchase price, which is negotiable. GST generally applies to new homes or substantially renovated properties, while resale homes are usually exempt—always confirm with your agent to avoid surprises.

Deposit: A good-faith payment (typically 5-10% of purchase price) held in trust by your brokerage. This deposit is credited toward your down payment at closing. If your offer is rejected, you receive your deposit back.

Possession Date: The date you officially take ownership. This is one of the most critical parts of your purchase contract, as it sets timeline expectations for both you and the seller.

Conditions: Protections for your interests, such as:

• Financing approval (securing your mortgage)
• Home inspection (discovering property defects)
• Appraisal approval (property value meets purchase price)
• Lawyer review (ensuring legal compliance)
• Real Property Report (RPR) review (Alberta-specific legal survey requirement)

Property Details: Legal description, address, and what's included in the sale (appliances, fixtures, etc.).

Submitting Your Offer

Your REALTOR® submits your Offer to Purchase to the listing agent. The seller can outright accept or reject your offer, make a counter offer, or ignore your offer completely.

Phase 3: Offer Negotiation Under Alberta Law

Understanding Counter-Offers

If the sellers provide a counter offer, carefully review all terms and conditions. A counter offer may contain a different selling price, but sellers may also counter on possession date, inclusions/exclusions, or conditions. If you want to accept their counter offer, make sure you review everything. If you want to change anything, you're essentially providing a counter offer rather than accepting.

"Time Is of the Essence" - Alberta's Strict Deadline Requirement

"Time is of the essence" is a critical principle in Alberta contracts, meaning every date and time specified in the contract is strictly enforced. Missing a deadline for a condition, like financing approval, could void the contract.

Business days exclude Saturdays, Sundays, and statutory holidays to ensure clarity for deadlines.

This principle protects both parties by ensuring predictable timelines and consequences for non-performance.

Phase 4: Offer Acceptance & Conditions Period

Congratulations! Your Offer Is Accepted

Once the seller accepts your offer, the conditions period begins and you must satisfy all conditions by their specified deadlines.

Remove Your Conditions

Home Inspection: Schedule an inspection within days of offer acceptance. A typical inspection takes 2-4 hours and reveals property defects. If significant issues are discovered, you can request the seller make repairs, negotiate a price reduction, or withdraw your offer.

Financing Approval: Provide mortgage documents to your lender immediately and complete all required paperwork promptly. Delays in submission can jeopardize your condition deadline.

Real Property Report (RPR): The RPR is an essential legal document prepared by an Alberta Land Surveyor that outlines the boundaries of the property and identifies buildings and structures. In Alberta, this document is required for most residential transactions and helps identify encroachments or boundary issues.

Material Defect Disclosure: The seller is obligated to disclose any hidden issues with the property that they are aware of and which could affect its value or use, such as mold behind walls or a structural defect.

Radon Testing: If radon testing shows high levels (higher than 200 Becquerel), that's considered a material latent defect that MUST be disclosed to prospective buyers unless a radon mitigation device is installed prior to listing. However, reliable radon tests take 90 days to complete—much longer than a typical offer timeline and condition removal period.

Your Responsibility for Deadline Compliance

In Alberta, you're responsible for ensuring conditions are satisfied or removed by their deadlines. If your lender approves financing but you don't communicate this to your lawyer in time, your condition can expire and the deal becomes unconditional.

Phase 5: Legal Coordination & Title Work

Mandatory Lawyer Engagement in Alberta

The Real Estate Council of Alberta (RECA) is the independent governing authority that sets, regulates and enforces standards for real estate brokerage, mortgage brokerage, property management and real estate appraisal professionals in Alberta.

Your real estate lawyer is mandatory in Alberta and handles critical legal work including title searches, document preparation, mortgage coordination, and title insurance arrangements.

The Real Estate Council of Alberta's Role

RECA is the regulator appointed by the Real Estate Act to regulate and enforce standards for real estate, mortgage, and condominium management licensing in Alberta. RECA works to protect consumers by investigating and prosecuting fraud and malfeasance in the real estate industry.

Your lawyer ensures all transactions comply with RECA standards and Alberta's Real Estate Act requirements.

Timeline

Your lawyer typically needs 30+ days to complete title searches, prepare documents, and coordinate with all parties. This is why closing dates are typically 30-60 days after offer acceptance.

Phase 6: Final Preparations (1-2 Weeks Before Closing)

Final Walk-Through

Conduct a final walk-through 24-48 hours before possession to verify property condition and confirm included items remain in the property.

Confirm Closing Costs

Your lawyer provides a statement of adjustments detailing your exact cash required at closing, including remaining down payment, mortgage amount, property tax adjustments, utility adjustments, lawyer fees, and title insurance.

Gather Required Documentation

Bring two pieces of identification (one with photo) and certified cheque or bank draft for your required funds payable to your lawyer's firm.

Homeowner's Insurance

If you have a mortgage, your lender requires proof of homeowner's insurance before closing.

Phase 7: Closing Day (Completion)

What Happens on Closing Day

On your agreed-upon closing date:

1. Funds Transfer: You provide your lawyer with certified funds
2. Mortgage Funding: Your mortgage lender provides funds to your lawyer
3. Lawyer Coordination: Your lawyer sends funds to the seller's lawyer
4. Payoff Handling: Seller's lawyer pays off existing mortgages and liens
5. Document Registration: Your lawyer registers the Transfer of Land with Alberta's Land Titles Office
6. Mortgage Registration: Your mortgage is registered against the property

Possession and Key Release

Possession typically occurs at 12:00 noon on the possession date (usually the day after closing, though negotiable). All timelines and deadlines follow Alberta Standard Time, and both parties must act reasonably and in good faith throughout the process.

Keys are typically released in the afternoon after all legal work is complete by your real estate agent.

Phase 8: Post-Closing

Report to Your Lender

Your lawyer provides a final report to your mortgage lender confirming the transaction is complete and you own the property.

Reporting Package

Your lawyer sends a reporting package containing copies of all documents you signed. Keep this in a safe place for your records.

Title Clearance

After possession, your lawyer continues work clearing any remaining mortgages from the title. This process can take weeks or months.

Update Records

Update your address with Canada Revenue Agency, provincial health coverage, insurance companies, banks, employer, and government benefit programs.

Understanding AREA Standards

The Alberta Real Estate Association (AREA) is the provincial, professional organization that represents the interests of more than 10,000 REALTORS® across the province. AREA provides standardized forms and facilitates the development of provincial rules for all organized real estate professionals.

Your REALTOR® must adhere to AREA standards and ethical guidelines protecting your interests throughout the transaction.

CREB® Resources for Calgary & Region

CREB® is the primary resource for buyers and sellers in the Calgary, Alberta real estate market, providing MLS® resources, REALTOR® information, and comprehensive market data.

If you're buying or selling in Calgary or the surrounding region, CREB® offers extensive resources and market statistics to guide your decisions.

Timeline Overview: From Offer to Keys

Day 1: Offer accepted; conditions period begins

Days 1-7: Deposit submitted; home inspection scheduled; mortgage application submitted; RPR ordered

Days 7-14: Inspections completed; any renegotiations conducted; conditions satisfied

Days 14-30: Lawyer conducts title searches; documents prepared; mortgage approved; final inspections

Days 30-45: Final walk-through; closing costs calculated; funds arranged

Day 45 (Closing Date): Funds transferred; documents registered; title transferred

Day 46 (Possession Date): Keys released; you take possession

Total Timeline: Approximately 30-60 days from offer to keys

Critical Alberta Regulations to Remember

Consumer Relationships Guide

All real estate professionals in Alberta must provide and explain the Consumer Relationships Guide, detailing their obligations to you and how they represent your interests in the transaction.

Errors and Omissions Insurance

The Real Estate Insurance Exchange (REIX) provides financial protection to all real Estate Licensees in Alberta and Saskatchewan by administering a mandatory but cost effective program of Errors and Omissions Insurance.

This insurance protects you if your agent makes an error that causes financial loss.

Broker Supervision

A brokerage is the licensed business, and the broker is the head of that business. The broker is responsible for all activities of the brokerage, associate brokers, and all associates who are licensed with that brokerage.

If you have complaints about your REALTOR®, you can escalate to their broker and ultimately to RECA.

Key Takeaways for Alberta Buyers & Sellers

For Buyers

• Get pre-approved before making offers
• Verify your REALTOR® is RECA-licensed through ProCheck
• Include appropriate conditions protecting your interests
• Understand "time is of the essence"—meet all deadlines strictly
• Ensure financing is finalized well before closing
• Confirm title insurance is arranged

For Sellers

• Work with a RECA-licensed REALTOR®
• Disclose all known material defects upfront
• Understand your obligations under Alberta law
• Coordinate with your lawyer on document preparation
• Ensure mortgage discharge is arranged
• Vacate by noon on possession date as required

Conclusion: Navigate Alberta's Real Estate Process With Confidence

The Alberta real estate transaction process is governed by the Real Estate Act and regulated by RECA to protect consumers. Whether you're a real estate rookie or a move-up master, CREA provides a Homebuyers' Road Map covering everything you need to consider when searching for your dream home.

By working with RECA-licensed professionals—a trusted REALTOR® and an experienced Alberta real estate lawyer—you ensure your transaction proceeds smoothly from offer through possession day. The key is meeting all deadlines, maintaining clear communication, and addressing issues promptly.

From the excitement of making an offer through the joy of receiving your keys, each step brings you closer to homeownership in Alberta. Understanding how the process works gives you the confidence needed to succeed.