What Do Real Estate Lawyers Do? Step-by-Step for Buyers & Sellers in Alberta

Introduction: Why Real Estate Lawyers Are Mandatory in Alberta

Buying or selling a home in Alberta is one of the largest financial transactions most people undertake in their lifetime. Unlike some Canadian provinces where notaries or other professionals can oversee property transfers, Alberta has strict requirements: it is mandatory to work with a lawyer when buying a home to ensure the transfer of land from seller to buyer is legally enforceable and binding.

This isn't bureaucratic red tape—it's essential protection. Real estate lawyers navigate Alberta's specific property laws, protect your interests, manage complex financial arrangements, and ensure closing happens smoothly. Understanding what Alberta real estate lawyers do helps you appreciate their value and know what to expect during your transaction.

This step-by-step guide explains the specific role of real estate lawyers in Alberta, their responsibilities for buyers and sellers, and how they guide you through each phase of a transaction.

Who Are Real Estate Lawyers in Alberta?

Alberta real estate lawyers are licensed legal professionals specializing in property transactions under Alberta law. They handle the legal aspects of buying, selling, leasing, and renting residential and commercial properties within the province.

Real estate law differs significantly by province, which is why hiring an Alberta-based lawyer is critical. Alberta's specific regulations, title registration system, and property laws require expertise in provincial-specific requirements. An Alberta lawyer understands the nuances of the province's Real Property Act, land titles registration, and transaction requirements that lawyers from other provinces may not.

Why You Absolutely Need a Real Estate Lawyer in Alberta

In Alberta, having a real estate lawyer isn't optional—it's mandatory when financing a home purchase. Here's why:

A real estate lawyer ensures the transfer of ownership is legally valid and that you receive clear title to the property. This foundational responsibility encompasses numerous critical tasks: they conduct thorough title searches to identify liens, judgments, or unpaid property taxes; they coordinate with lenders and handle funds; they prepare and review all legal documents; and they manage the closing process to ensure all obligations are met.

Essentially, a real estate lawyer is your advocate and protector, ensuring all legal requirements are satisfied, all documents are accurate, and your interests are safeguarded throughout the transaction.

The Cost of Real Estate Legal Services in Alberta

Understanding legal fees helps you budget appropriately and avoid surprises.

In Alberta, a real estate lawyer's fee typically ranges from $600 to $1,200 plus GST, while disbursements (costs such as courier fees, office administration fees, and land title and mortgage registration) might total $400 to

$500. Overall, you should budget between $1,500 to $2,500 for legal services and title insurance combined. Your lawyer will review title insurance options and handle those arrangements for you as part of the purchase process, ensuring you have proper coverage protection.

Many Alberta lawyers now offer transparent, all-inclusive pricing so you know exactly what you'll pay upfront with no hidden fees or surprises. Always ask about pricing and what services are included before hiring.

What Alberta Real Estate Lawyers Do for Buyers: Step-by-Step

Step 1: Offer to Purchase Review & Negotiation (Before Signing)

In Alberta, lawyers can help draft or review purchase contracts before they're finalized. Many buyers work with their lawyer before making an offer, which provides significant advantages.

Your lawyer will review the entire purchase agreement to ensure:

• All property details are accurate and complete
• Terms and conditions align with negotiated expectations
• All conditions are properly included (inspection, financing, appraisal, etc.)
• Timelines are realistic and achievable
• Your interests are fully protected

A real estate lawyer can also negotiate on your behalf regarding the property price, conditions of sale, or even terms of your mortgage in certain circumstances.

Step 2: Title Search & Review

Once you've made an unconditional offer, your lawyer conducts a comprehensive title search through Alberta's land titles office. This search identifies:

• Outstanding liens or mortgages from previous owners
• Judgments against the property
• Unpaid property taxes or condo fees
• Encroachments or easements affecting the property
• Any restrictions on property use

Your lawyer reviews this information and resolves any issues before closing, protecting you from inheriting hidden legal problems.

Step 3: Real Property Report (RPR) Review

In Alberta, real estate transactions typically require a current Real Property Report (RPR). This is a legal document an Alberta Land Surveyor prepares and is basically a high-level drawing of the property, boundaries, and the buildings and structures on it. It is a lawyer's job to review the RPR.

Your lawyer examines the RPR to ensure buildings comply with property boundaries and any encroachments are addressed.

Step 4: Mortgage Documentation & Lender Coordination

After the contract is finalized, the buyer or their realtor informs the mortgage lending representative about the lawyer representing them. The lender then sends mortgage instructions detailing the buyer's mortgage to the lawyer. The lawyer prepares mortgage documents, receives loan proceeds, and, on the closing date, transfers funds to the seller's law firm.

Your lawyer reviews all mortgage documents to ensure you understand the terms and your obligations, including what recourse the lender has if you fail to make payments.

Step 5: Insurance Arrangements

Your lawyer arranges title insurance to protect you from unforeseen title defects. One of the lawyer's responsibilities is to make sure you, as the buyer, have interim title insurance to protect you from unexpected complications during the two-week title transfer process.

Your lawyer will review title insurance options available and handle all the arrangements for you, ensuring you receive the appropriate coverage at the time of purchase. This protection is critical and your lawyer coordinates this as part of the closing process.

Additionally, if you have a mortgage, your lender requires proof of homeowner's insurance before closing. Your lawyer coordinates this requirement and ensures proper coverage.

Step 6: Property Tax & Adjustment Calculations

Your real estate lawyer will advise you on how frequently the seller was paying taxes on the property and inform you of the options available to you. Occasionally, a tax adjustment means additional funds, in the hundreds or even thousands, are required to close.

Your lawyer ensures property taxes are properly apportioned between buyer and seller, so neither party pays for time they don't own the property.

Step 7: Document Review & Final Checks

Before closing, your lawyer reviews all final documents from the seller's lawyer, including:

• Transfer of Land document
• Discharge of existing mortgages
• Any declarations or representations from the seller
• Adjustment calculations confirming the final purchase price

Step 8: Closing Coordination & Fund Transfer

If all necessary documents are signed and delivered, and the lawyer has the funds ("cash-to-close") in their trust account, the closing occurs. The buyer's lawyer sends the funds to the seller's lawyer and the Transfer of Land to the Land Titles Office to be registered. Once completed, the transaction is closed, and the purchase is finalized.

The seller's lawyer notifies the realtors that the keys are "releasable", allowing the buyer to take possession.

Your lawyer ensures funds are held securely, only released once all conditions are satisfied and documents are properly registered.

What Alberta Real Estate Lawyers Do for Sellers: Step-by-Step

Step 1: Sales Agreement Review & Negotiation

Before you sign any sales agreement, your lawyer reviews it to ensure terms protect your interests. They can assist with negotiating terms and conditions and advising on the implications of any conditions the buyer requires.

Step 2: Title Preparation & Discharge of Existing Mortgages

Your lawyer obtains parcel information and ensures your title is clean and transferable. If you have an outstanding mortgage, your lawyer coordinates with your lender to discharge it upon closing.

Step 3: Real Property Report (RPR) Provision

Your lawyer ensures any required Real Property Report is obtained and provided to the buyer's lawyer, demonstrating that buildings comply with property boundaries.

Step 4: Document Preparation & Requisition Responses

Your lawyer prepares the Transfer of Land document and responds to requisitions (questions) from the buyer's lawyer regarding title, property condition, and any liens or encumbrances.

Step 5: Mortgage Payoff Coordination

Your lawyer coordinates with your existing lender to ensure the mortgage is paid off from the sale proceeds. If you have multiple mortgages or liens, your lawyer prioritizes payment ensuring all are satisfied.

Step 6: Fund Receipt & Distribution

Your lawyer receives funds from the buyer's lawyer and distributes them according to the closing statement:

• Payment to existing mortgage lender(s)
• Payment of any outstanding property taxes or condo fees
• Payment of real estate agent commissions (if applicable)
• Payment of lawyer's fees and disbursements
• Remaining proceeds to you

Step 7: Registration of Transfer

Your lawyer registers the Transfer of Land with Alberta Land Titles, formally transferring ownership to the buyer.

Step 8: Final Accounting & Keys Release

Once all funds are distributed and the transfer is registered, your lawyer notifies the real estate agents that keys are releasable, allowing the buyer to take possession.

Real Estate Lawyers vs. Real Estate Agents: Understanding The Difference

Real estate agents in Alberta guide clients through the home-buying process by listing properties, preparing homes for viewing, hosting open houses, taking prospective buyers to properties, advising on pricing, promoting properties, overseeing deal closure, and assessing mortgage options. Real estate lawyers handle legal aspects of transactions and help clients navigate home buying legally.

Both professionals are essential but serve different functions. Your real estate agent markets the property, negotiates purchase terms, and facilitates the transaction. Your real estate lawyer ensures all legal aspects are properly handled and your interests are protected. Many Alberta real estate transactions benefit from seamless coordination between your agent and your lawyer working together.

Special Situations: When Lawyer Involvement Is Especially Critical

A real estate lawyer becomes even more valuable when dealing with:

• New home construction: Contracts for new construction typically heavily favor the builder and contain extensive terms that may expose you to significant risks. These agreements often include clauses about construction delays, cost overruns, warranty limitations, and completion timelines. A thorough contract review by your lawyer is absolutely vital to ensure you understand all details, including what happens if the project is delayed, items aren't completed as promised, or costs exceed expectations. Your lawyer can negotiate terms and ensure your interests are protected if the timeline slips or promised features don't materialize.
• Complicated titles: Properties with encroachments, boundary disputes, or title defects require expert legal navigation
• Mortgages with unique terms: Vendor take-back mortgages, assumable mortgages, or non-standard terms require careful legal review
• Commercial properties: Business real estate transactions involve additional legal complexity
• Estate or inheritance transactions: Properties transferred through estates or with multiple ownership interests require specialized legal handling

How to Choose a Real Estate Lawyer in Alberta

Research and Credentials

Before hiring, research potential lawyers online and check the Law Society of Alberta database to verify their credentials and ensure they have no actions on record against them.

Ask About Experience

Hire lawyers who specialize in residential real estate and have substantial experience with Alberta transactions.

Many firms offer free consultations where you can discuss their experience and approach.

Understand Pricing Upfront

Ask potential lawyers about their fees and what services those prices include. Understand the difference between their lawyer fee and disbursements. Many modern Alberta firms now offer transparent all-inclusive pricing.

Communication and Availability

Ensure your lawyer has time and energy to devote to your transaction. Clear communication throughout the process is essential for a smooth closing.

Conclusion: Real Estate Lawyers Are Essential in Alberta

Alberta's mandatory requirement for real estate lawyers isn't a burden—it's consumer protection. These legal professionals navigate complex provincial regulations, protect your interests, coordinate with multiple parties, and ensure your transaction closes smoothly and legally.

Whether you're buying or selling, your real estate lawyer handles the critical legal work that allows you to focus on your move. From title searches and document preparation to closing coordination and fund transfers, they ensure every legal requirement is met and every step protects your investment.

The cost of hiring an Alberta real estate lawyer—typically $1,500 to $2,500—is a small price for the protection and peace of mind they provide on one of life's largest financial transactions. When buying or selling real estate in Alberta, working with a qualified, experienced real estate lawyer isn't optional—it's essential.