Residential Real Estate Purchase Contracts
When people are buying or selling real estate, they should have a real estate purchase contract. While real estate dealings will ultimately work on a hand shake, this is only true if both parties have complete and total agreement on all aspects of the transaction and if nothing goes wrong. It also depends on both parties operating in ultimate good faith. This situation leaves a lot o variables to cause problems and no set rule framework to deal with them. This is why it is important to have a well drafted real estate purchase contract. The real estate purchase contract lawyers at Kahane Law Office in Calgary, Alberta are here to help you draft the contract that reflects your specific real estate deal.
Different Types Of Real Estate Purchase Contracts
There are many types of real estate purchase contracts in Alberta. They generally differ by type of property being bought or sold and how the real estate will be purchased. Here are some of the more common ones.
Residential Real Estate Purchase Contract
Residential real estate refers to real estate that is either single family (a house) or condominium. Residential real estate purchase contracts are extremely important to have well written. In Alberta, most real estate agents use a common residential real estate purchase contract. The form was developed, and continues to be improved on by the Alberta Real Estate Association. Bu what happens when someone does not use a real estate agent or if there are factors that do not fit into the standard contract? While there are many real estate purchase contact available online. The majority of these contracts are not developed for the specific way real estate is bought and sold in Alberta. Residential real estate has a number of very specific issues that need to be addressed in the contract and many of them are unique to Alberta. Learn more about residential real estate purchase contracts here. We also have a video with more information on residential real estate purchase contracts.
Recreational Acreage Real Estate Purchase Contracts
Recreational acreage real estate purchase contracts deal with similar types of building as residential real estate purchase contracts. The difference is that these dwellings are on (usually) larger pieces of land and they are generally not in a city or municipality. Recreational acreages have their own unique issues. Fence lines, septic, water quality and quantity are just a few. When drafting a contract for a recreational acreage purchase or sale, it is important to have a lawyer or real estate agent who is familiar with the specifics needed to be addressed in these contracts.
Commercial Real Estate Purchase Contract
Commercial real estate purchase contracts deal with real estate that is being used for commercial purposes. Commercial real estate purchase contracts need to deal with similar issues as residential contracts but also may need to deal with legal aspects specific to commercial purposes. Commercial properties usually involve commercial businesses. Strip malls, retail centers, shopping malls, offices, service businesses, restaurants, etc.. They may be multi-business buildings or stand alone buildings. Some commercial real estate contracts will also involve the sale of a specific business as well. Common issues include specific commercial uses, zoning, environmental issues, tax issues, tenants / leases, etc. The commercial real estate lawyers at Kahane law have been involved in a wide variety of commercial real estate transactions. While there are many common aspects, each commercial real estate purchase and sale will have its own unique elements that must be addressed in the contract.
Industrial Real Estate Purchase Contract
Industrial real estate contracts deal with similar issues as commercial but are more highly specialized. Industrial real estate usually contains a business that deals with manufacturing, fabrication, factories, processing plants, mines, shipping centers, distribution centers, storage facilities, etc.. Environmental issues are much more common in industrial real estate purchase contracts and should always form part of a buyers due diligence. Other common concerns involve land use rules, tenants, included tenant improvements and/or chattels are included in the sale, permitted future developments, etc.. An industrial real estate purchase contract lawyer will step her or his client through the issues and determine what needs to be addressed in the contract. The more specific the contract is, the less chance of their being a misunderstanding or problem down the road as potential issues are flagged and then specifically dealt with in the industrial real estate contract.
Agreement for Sale Contracts / Rent to Own Contracts
Agreement for sale agreements and rent to own agreements are real estate purchase contracts that does not transfer ownership of the contract to some future date. The price is usually set and the buyer makes regular payments to the seller. This often happens when a buyer is not able to afford the property when the contract is entered into but expects to be able to in a year or two (or more). Failure of the buyer to purchase the property can lead to them being sued for non-performance. These contracts are very highly specialized in terms of specific situations. Agreement for sale contracts can be very one sided for the buyer or the seller. Anyone who is presented with one of these agreements should have them reviewed by a lawyer as there are very specific legal rights. These are a legal and normal form of contract but have been part of situations where unsuspecting people have been taken advantage of.
Real Estate Purchase Contract Options
Real estate purchase contract options can be for any type of land. An option is a contracts that lets someone buy a property at some future date. In essence it ties up a property so that a land owner cannot sell the property to anyone else. The potential buyer pays for this right. The amount paid for the purchase option is usually not refundable and usually releasable to the land owner on the finalizing of the contract. Often the purchase price is set or otherwise easily ascertainable. That certainty is essential. It is important to note that the option is just an option. Unlike an agreement for sale, the buyer has the right to walk away from the purchase aspect.
Call Now For Legal Help Drafting a Real Estate Purchase Contract
Call today. Our real estate lawyers are able to help draft your real estate purchase contract. We have the experience you need for specific types of property. You can reach us toll-free at 1-877-225-8817, or 403-225-8810 locally or email us directly here.