What First-Time Buyers Should Know About Purchase Agreements

Buying your first home is one of the most exciting—and significant—milestones in life. But in the middle of open houses and mortgage approvals, it’s easy to feel overwhelmed by the legal side of things. One of the most critical documents in the home buying process is the purchase agreement. It’s not just paperwork—it’s legal protection.

Before signing on the dotted line, it’s important to understand what you’re agreeing to. Here are three essential components to review closely in any Alberta real estate purchase agreement:

1. Condition Clauses: Your Safety Net

Condition clauses (also known as “subject-to” clauses) are built-in protections that allow the deal to be cancelled or adjusted if certain conditions aren’t met. Common conditions include:

• Financing – Gives you time to secure your mortgage.

• Home Inspection – Ensures there are no costly surprises in the home’s structure or systems.

• Sale of Existing Home – Allows the purchase to proceed only if your current home sells.

Without these clauses, you could be legally bound to complete the purchase—even if things don’t go as planned.

2. Deposit Terms: Know Where Your Money Goes

The deposit is usually due soon after the offer is accepted. It shows you’re serious about buying and is typically held in trust by the seller’s brokerage. But before handing over your money, check:

• When the deposit is due

• How it will be held and returned if conditions aren’t met

• What happens if the deal falls through

Clear deposit terms can help avoid disputes and financial stress later.

3. Inclusions & Exclusions: Avoid Misunderstandings

Is that stainless steel fridge included? What about the window coverings? Your purchase agreement should clearly list what’s staying with the house and what the seller plans to take.

Items to review include:

• Appliances

• Light fixtures

• Garden sheds or hot tubs

• Mounted TVs and wall brackets

When inclusions and exclusions are vague, misunderstandings are common—and sometimes costly.

Why Legal Advice Matters

A real estate lawyer can review your purchase agreement and ensure that your interests are protected. At Chahal Law, we help Alberta homebuyers understand every line of their contract before they commit. We work with your real estate agent to make sure the deal is smooth, the terms are fair, and your rights are safeguarded.

Buying your first home should feel exciting—not confusing.
Contact Chahal Law today at (780) 461-0989 to book a consultation and feel confident in your next big step.