Almost everything written for first-time buyers covers mortgages and house hunting. Very little explains what happens between “offer accepted” and “keys in hand”—which is often the most unfamiliar part of the process. This guide explains the legal side of buying a home in Alberta, including several Alberta-specific rules that are often overlooked in national home-buying articles.
The Best News First: Alberta Has No Land Transfer Tax
If you’ve been reading national home-buying guides, you’ve probably budgeted for land transfer tax. In Alberta, there is no provincial land transfer tax.
Instead, Alberta charges Land Titles registration fees to register ownership and, if applicable, your mortgage. As of October 20, 2024, both registrations use the same fee formula:
- $50 base fee, plus
- $5 for every $5,000 (or portion of $5,000) of the value shown in the registration.
Many online calculators still use the previous fee schedule, so double-check that any calculator you’re using has been updated.
For example, on a $500,000 purchase with a $400,000 mortgage:
- Title registration: $550
- Mortgage registration: $450
Total Land Titles registration fees: $1,000
Compared to provinces that charge land transfer tax, this can represent a significant savings for Alberta homebuyers.
Deposit Is Not the Same as Your Down Payment
Many first-time buyers confuse these two terms.
A deposit is paid shortly after your offer is accepted. It is typically held in trust by the listing brokerage in accordance with the purchase contract and applicable legislation. The amount is negotiated between the parties—there is no legislated minimum deposit in Alberta.
Your down payment is your total equity contribution toward the purchase.
The deposit forms part of your down payment—it is not an additional cost.
For example, if your down payment is $50,000 and you’ve already paid a $10,000 deposit, you’ll generally bring the remaining $40,000 to closing (subject to adjustments).
The important distinction is this:
If you fail to complete a firm purchase contract without legal justification, your deposit may be at risk.
Using Your RRSP and FHSA
Two federal programs can help first-time buyers, and they may be used together.
Home Buyers’ Plan (HBP)
Eligible buyers may withdraw up to $60,000 from their RRSP without immediate tax consequences.
Eligible couples may each withdraw up to $60,000, for a combined total of $120,000.
Withdrawn funds generally must be repaid to your RRSP over 15 years, beginning in the second year after the withdrawal year.
One timing issue catches many buyers:
RRSP contributions generally must remain in the account for at least 90 days before being withdrawn under the HBP if you intend to claim the deduction.
First Home Savings Account (FHSA)
The FHSA allows eligible buyers to contribute up to:
- $8,000 annually
- $40,000 lifetime
Contributions are tax deductible, qualifying withdrawals are tax free, and—unlike the HBP—there is no repayment requirement.
Financial advisors often recommend using FHSA funds before RRSP withdrawals because FHSA withdrawals never need to be repaid, although every buyer’s circumstances differ.
Conditions: Your Main Protection
A residential purchase contract becomes legally binding once both parties have signed it.
Unlike some provinces, Alberta generally does not provide a cooling-off period for resale residential property.
One notable exception applies to purchasers of certain new condominium units, who receive a statutory rescission period under Alberta’s Condominium Property Act.
Common buyer conditions include:
- Financing
- Home inspection
- Condo document review
While conditions remain outstanding and have not been waived, buyers generally retain the ability to terminate the contract in accordance with its terms by delivering the appropriate notice before the condition deadline.
Once conditions are waived or satisfied, the contract becomes firm.
At that point, failing to complete the purchase may expose the buyer to:
- loss of the deposit; and
- additional damages if the seller later sells the property for less or suffers other recoverable losses.
Because of this, buyers should understand exactly what they are giving up before waiving conditions.
What Happens After Conditions Are Removed
Once the contract becomes firm, your real estate lawyer begins the legal closing process.
Typical steps include:
Title Search
Your lawyer obtains a current Certificate of Title and reviews registered interests such as:
- existing mortgages
- caveats
- easements
- utility rights-of-way
- writs and other registered encumbrances
Your lawyer works to ensure any interests that should not remain after closing are appropriately addressed.
Real Property Report
For most detached homes and bare land condominiums, the seller provides a current Real Property Report (RPR) together with evidence of municipal compliance if required by the purchase contract.
Your lawyer reviews these documents and advises you if issues arise.
Mortgage Instructions
Your lender sends detailed instructions directly to your lawyer outlining the requirements that must be satisfied before mortgage funds can be released.
Title Insurance
Most lenders require title insurance.
Your lawyer arranges the policy and explains its purpose.
Statement of Adjustments
Your lawyer prepares or reviews the Statement of Adjustments, which allocates items such as:
- property taxes
- condominium fees
- deposits
- other financial adjustments
This determines the exact amount you must provide before closing.
Whenever possible, provide your lawyer with your purchase contract as soon as the transaction becomes firm. Early involvement gives more time to resolve any issues before possession day.
The Signing Appointment
Before possession, you’ll meet with your lawyer to sign documents relating to:
- your mortgage;
- title insurance; and
- other closing documentation required for the transaction.
Bring valid government-issued photo identification.
Your lawyer will explain the documents before you sign them and answer any questions you have.
You’ll also arrange delivery of your remaining closing funds, usually by bank draft or certified funds, based on the final Statement of Adjustments.
Possession Day
On possession day:
- your lender advances mortgage funds to your lawyer;
- your lawyer sends closing funds to the seller’s lawyer;
- once all contractual conditions for release have been satisfied, keys are released, usually through the real estate brokerages.
Although possession commonly occurs around noon, delays in the transfer of funds can sometimes postpone key release later into the day.
For that reason, many buyers avoid scheduling movers first thing in the morning.
Following closing, the transfer documents are registered with the Alberta Land Titles Office. Registration times vary depending on Land Titles processing volumes.
What to Budget Beyond the Purchase Price
In addition to your down payment, buyers should budget for:
- legal fees;
- Land Titles registration fees;
- title insurance;
- title search and other disbursements;
- home inspection costs;
- property tax adjustments;
- condominium fee adjustments (if applicable);
- mortgage default insurance (where required); and
- moving expenses and utility connections.
Your lawyer can provide a closing cost estimate tailored to your purchase.
One Piece of Practical Advice
Engage your real estate lawyer early.
Most real estate transactions close without difficulty, but issues occasionally arise—whether it’s an unexpected title issue, questions about the Real Property Report, lender requirements, or other matters that require time to resolve.
Providing your lawyer with your purchase contract as soon as the transaction becomes firm gives everyone more time to address those issues before possession day.
Berjak Law assists first-time home buyers throughout Edmonton with residential real estate purchases. Our office is located at 10080 Jasper Avenue, Suite 301, Edmonton, Alberta.
