What Should First-Time Homebuyers Know About the Legal Aspects of Purchasing a Home?

What Is the Real Estate Market Like in Calgary?

Calgary continues to be a sought-after destination for homebuyers in Canada, with the real estate market showing notable activity in 2025. According to the WOWA Calgary Housing Market Report, as of April 2025, the average home price in Calgary has reached $646,743, marking a 6.3% increase compared to the same period last year . Detached homes are averaging $839,250, reflecting a 5.4% annual growth .(WOWA)

On the financing front, mortgage rates have seen a slight decrease, offering some relief to prospective buyers. As of May 13, 2025, the lowest available five-year fixed mortgage rate in Calgary stands at 3.84% .(WOWA)

Despite these developments, the market remains competitive due to limited housing supply. Inventory levels have risen to 5,867 units, yet the months of supply is at 2.62, indicating a seller’s market . This scenario underscores the importance for first-time homebuyers to be well-informed about the legal aspects of purchasing a home, ensuring they are prepared to navigate the complexities of Calgary’s dynamic real estate landscape.(CREB)

Do You Need a Real Estate Lawyer If You Are a First-Time Homebuyer?

It is a good idea to consult with an experienced real estate lawyer without delay. Purchasing a home can be a complicated legal process. Your attorney can guide you through it, ensuring your interests are protected at every turn. Having skilled legal representation from the start can give you peace of mind and help prevent any pitfalls.

What Are the Legal Aspects of Purchasing a Home in Calgary?

If you are buying a home in Calgary, our seasoned real estate lawyer can assist you with the legal aspects of the transaction, including the following:

Purchase Contract

A purchase contract is a legally binding agreement between the seller and the buyer, outlining the terms and conditions of the sale. Conditions commonly found in real estate purchase contracts include:

• Financing: This condition allows the buyer to get approval from a lender for a mortgage on the property. Many lenders require an appraisal to ensure the property’s value is equal to the price the buyer intends to pay.
• Inspection: A home inspection is a common condition in a purchase contract in favor of the buyer. The process requires an inspection report to be completed. If deficiencies are found with the home, the buyer has the option to accept the home as-is, renegotiate to address the deficiencies, or terminate the agreement and walk away.

Real Property Report

A Real Property Report (RPR) is required in most real estate transactions in Alberta. It is a legal document illustrating significant improvements to the property relative to the boundaries and identifying any encroachment from adjacent properties. Lenders for residential mortgages require an RPR for the transaction to be completed.

Municipalities typically sign off on these reports as either compliant, nonconforming, or noncompliant. “Compliant” means the property complies with municipal law. “Nonconforming” means the property was compliant at one time, but some aspects do not comply with current bylaws. In this case, the structure is allowed to remain as it is, but issues could develop in the future. “Noncompliant” means an issue with the property violates current municipal law. A seller should order an RPR early in the game to reveal any potential problems with the sale.

Due Diligence and Property Defects

Homebuyers in Alberta have an obligation to conduct a reasonable inspection of the property to uncover any issues or defects before completing the transaction. The common law doctrine that places the burden on the buyer is known as “caveat emptor,” which is Latin for “let the buyer beware.” However, as stated by the Cornell Law School Legal Information Institute (LII), a seller who withholds material information he or she has a duty to disclose is not protected by caveat emptor.

In real estate transactions, there are two possible types of property defects:

• Patent defects: These are visible defects that should be revealed in a reasonable inspection conducted by a prudent inspector. Examples include a broken window, a hole in the wall, or a crack in the home. Sellers generally have no obligation to disclose patent defects.
• Latent defects: These are defects a property inspection may not reveal. Examples of latent defects include mold, water damage, leaks, termites, insect infestations, structural problems, and major plumbing, heating, or electrical issues. Sellers have a legal obligation to disclose any material latent defects they know of when selling a property. Otherwise, the buyer may have a cause of action against the seller for resulting damages.

Title and Property Tax Search

Ordering a land title search is a crucial step for anyone purchasing property in Alberta. This is an official request for all information concerning the rights and interests of a particular piece of real estate. A title search includes deeds, mortgages, liens, encumbrances, probate records, marriage records, tax records, and any other relevant documents to the title of the property. The two types of title searches are:

• Current title: This search identifies the current owner of the property and includes mortgages, caveats, liens, easements, encumbrances, and any interests attached to the property.
• Historical title: This type of search provides information about the previous owners of the property, in addition to the documents included in a current title search.

Buyers and mortgage lenders order title searches to establish ownership of a property and prove the seller has the capacity to sell it. Our experienced real estate attorneys can review the land title of the home you are purchasing to ensure you are protected against legal obstacles. We can also review property tax records to ensure all taxes are paid before closing.

Why Choose Us If You Are Buying a Home for the First Time?

If you are a first-time homebuyer in Calgary, you need a skilled real estate legal team to serve as your advocate with lenders, the seller, and other parties involved in the property purchase transaction. Our real estate lawyers at JK Law have extensive experience in both residential and commercial property matters. We are highly professional and will be well prepared to assist you with a wide range of legal services. Contact us at (403) 454-9864.