Buying or selling a home in Alberta involves a legal closing process that most people only encounter a handful of times in their lives. Understanding what actually happens between accepting an offer and getting the keys — and what your real estate lawyer is doing during that period — makes the process significantly less stressful. Here’s how it works.
Step 1: The Purchase Contract Is Signed
The process begins when a buyer and seller sign a Purchase Contract (also called a Real Estate Purchase Agreement). This document sets out the purchase price, possession date, conditions, and any included items. In Alberta, most residential purchase contracts use the standard AREA (Alberta Real Estate Association) form.
The purchase contract is not the closing — it’s the agreement to close. The legal work starts here.
Step 2: Conditions Are Fulfilled
Most purchase contracts in Alberta include conditions — most commonly a financing condition (the buyer has a set number of days to secure mortgage approval) and a home inspection condition. Until these conditions are removed in writing, the deal is not firm. Once both parties sign the condition removal, the transaction becomes unconditional and the closing process moves forward.
Step 3: Your Lawyer Receives the File
Once the deal is firm, your real estate agent sends the purchase contract to your lawyer. This is when Berjak Law gets involved. We receive the file, open the matter, and begin the legal work required to complete your transaction.
Step 4: Title Search
Your lawyer orders a title search on the property through the Alberta Land Titles Office. The title search reveals:
- Who legally owns the property
- Any mortgages or liens registered against the property
- Easements and right-of-ways affecting the land
- Caveats or other encumbrances registered on title
This is one of the most critical steps in the closing process. Issues discovered during the title search — an undischarged mortgage from a previous sale, a caveat from a contractor who wasn’t paid, an easement that affects your planned use of the property — need to be resolved before closing, not discovered after possession.
Step 5: Mortgage Instructions Arrive
If you’re financing the purchase with a mortgage, your lender sends mortgage instructions directly to your lawyer. These instructions tell your lawyer the exact conditions your lender requires before releasing funds — documents to be signed, title insurance to be arranged, and confirmation that title is clear of encumbrances your lender won’t accept.
Your lawyer reviews the mortgage instructions, prepares the required documents, and ensures everything your lender needs is in place before the closing date.
Step 6: Title Insurance
In Alberta, title insurance is standard practice on residential real estate transactions. Title insurance protects both the buyer and the lender against certain title defects — issues that a title search might not surface, including survey errors, fraud, and certain undisclosed encumbrances. Your lawyer arranges title insurance as part of the closing process.
Step 7: Statement of Adjustments
Your lawyer prepares a Statement of Adjustments — a document that calculates the financial settlement between buyer and seller as of the possession date. This includes adjustments for:
- Property taxes (if the seller has prepaid taxes beyond the possession date, the buyer reimburses that amount)
- Condo fees if applicable
- Any other prepaid expenses that transfer to the buyer
The Statement of Adjustments determines the exact amount of money that needs to change hands at closing, beyond the purchase price itself.
Step 8: Signing Appointment
Before the possession date, your lawyer schedules a signing appointment. At this meeting you review and sign:
- The mortgage documents from your lender
- The transfer of land document (which transfers title from seller to buyer)
- Title insurance documents
- Any other documents required to complete the transaction
This is also when your lawyer explains what you’re signing. Nothing should be executed without being understood.
Step 9: Funds Are Transferred
On or before the possession date, your lawyer receives the mortgage funds from your lender and any additional funds you’re contributing (your down payment minus any deposit already paid). Your lawyer holds these funds in trust and transfers them to the seller’s lawyer on possession day.
Step 10: Title Transfers and Keys Are Released
Once funds are confirmed received by the seller’s lawyer, title is transferred into your name at the Alberta Land Titles Office. Your real estate agent is notified and releases the keys. You now own the property.
The full title transfer is registered within a few days of possession — the Land Titles Office processes the registration after the fact, but your ownership is effective as of possession day.
How Long Does the Closing Process Take?
In Alberta, the period between a firm deal and possession is typically 30 to 60 days, though shorter and longer timelines are common. Your lawyer needs a minimum of 5 to 7 business days before possession to complete the legal work — receiving mortgage instructions, conducting the title search, preparing documents, and arranging signing. Leaving less time than that creates unnecessary pressure and risk.
What Does a Real Estate Lawyer Cost in Alberta?
Berjak Law handles real estate closings in Edmonton on a flat-fee basis starting at $699 + disbursements. Disbursements are the third-party costs your lawyer pays on your behalf — Land Titles registration fees, title insurance premiums, and similar expenses. These are passed through at cost with no markup.
The legal fee doesn’t change based on the purchase price of the property.
If you’re buying or selling real estate in Edmonton or the surrounding area, Berjak Law is located at 10080 Jasper Ave, Suite 301. Contact us to get started.
