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 of 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.
NOTE: If you plan to purchase a home, a key step is understanding the due diligence needed for security in your purchase. This includes understanding the registrations on the land title to your home, before you enter into a contract. Alternatively, ensure the contract contains a condition allowing you the option to better understand the registrations on title, before you contractually have to buy. Always get the help you need to prevent expensive problems down the road!
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 involved in a purchase or sale and how the real estate purchase goes through. These are true for arm’s length transactions, ones between family and even foreclosures (know your risks on those). For example, here are some of the more common ones.
Residential Real Estate Purchase Contract
Almost all the time, 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 agreement. The contract was developed, and continues to be improved on, by the Alberta Real Estate Association. But 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 contracts available online.
Most importantly, the majority of these contracts lack addressing the specific manner that real estate purchasing and selling occurs in Alberta. Residential real estate has a number of very specific issues that need addressing 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 Agreements
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 specific needs which require addressing in these contracts.
Commercial Real Estate Purchase Contract
Most commercial real estate purchase contracts deal with real estate used for commercial purposes. Some residential rental units fall under commercial real estate. Commercial real estate purchasecontracts 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 regularly act for clients involved in a wide variety of commercial real estate transactions. While many common aspects exist, each commercial real estate purchase and sale has its own unique elements. The addressing of these is imperative.
Industrial Real Estate Agreements
All, industrial real estate contracts deal with similar issues as commercial but include must more highly specialized terms. 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. Buyers should always ensure the complete investigation of them as part of a buyers due diligence. Other common concerns involve land use rules, tenants, included tenant improvements and/or chattels included in the sale, permitted future developments, etc..
An industrial real estate purchase contract lawyer steps her or his client through the issues. They also determine what matters require addressing in the contract. The more specific the contract is, the less chance of a misunderstanding occurring or problem existing down the road as the flagging of potential issues occurs quickly and then specifically dealt with in the industrial real estate contract.
Agreement For Sale Contracts / Rent To Own Contracts
In addition, 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. The buyer then expects to be able to complete the purchase in a year or two (or more). Failure of the buyer to purchase the property often leads to the suing of the buyer for non-performance of the contract.
These contracts include very highly specialized terms in respect of individual, specific situations. Agreement for sale contracts can be very one sided for the buyer or the seller. Anyone offered or presented with one of these agreements must completed due diligence by ensuring a lawyer reviews it 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 predetermined or otherwise easily ascertainable. That certainty is essential. Lastly, 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
We know real estate law. The firm was founded on it. Call us today for help. Our real estate lawyers draft your real estate purchase contract to meet your individual needs. we protect you. 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.