CALGARY | BUYING LAND IN ALBERTA GUIDE


BUYING LAND IN ALBERTA
It is a multi-step process that requires careful consideration, from choosing the right property to finalising the sale. Here's a breakdown of the general process:
1. Determine Your Budget and Financing
- Set a budget: Establish how much you are willing to spend, considering the cost of land and additional expenses (e.g., closing costs, property taxes).
- Get pre-approved for financing: If you require a mortgage, speak to a bank or lender to determine your budget and obtain pre-approval for a loan.
2. Research and Find the Right Property
- Location: Consider factors such as proximity to amenities, accessibility, zoning, and land use.
- Land size and topography: Ensure the land suits your purpose (e.g., farming, residential, recreational, etc.).
- Zoning and land use regulations: Verify zoning regulations with the municipality to ensure the land can be used for your intended purpose.
3. Engage Professionals
- Real Estate Agent: A real estate agent with experience in land transactions can guide you through the process, show available properties, and help negotiate the purchase.
- Lawyer: It’s highly recommended to hire a lawyer to review contracts and handle the legal aspects of the sale.
- Land Surveyor: A surveyor can confirm property boundaries, topography, and potential issues with the land.
4. Make an Offer
- Once you’ve found the property you’re interested in, your agent or lawyer will assist in making an offer to the seller. The offer typically includes the purchase price and any terms and conditions.
- Negotiation: The seller may accept, reject, or counter your offer. It’s common for there to be some back-and-forth.
MAKE SURE YOU CONSULT PROFESSIONALS
5. Conduct Due Diligence
- Land inspection: Assess the land’s condition. This may involve a professional inspection for soil quality, environmental issues, or existing structures.
- Title search: Ensure the seller legally owns the land, with no liens, encumbrances, or disputes related to the title.
- Check land history: Verify past use, possible contamination, zoning, and easements (right of access to someone else's land).
6. Finalise the Sale Agreement
- If everything checks out, the next step is to finalize the sale agreement. This document outlines the terms of the sale, including the price, payment terms, and contingencies.
- Down payment: You’ll typically need to provide a deposit at this stage (usually 5-10% of the purchase price).
7. Close the Deal
- Closing: This is the final step where ownership is transferred. At this point, you’ll pay the remainder of the purchase price, and the lawyer will register the land transfer with the Alberta Land Titles Office.
- Land transfer registration: The land title will be officially transferred to your name, and you will receive the title deed.
8. Post-Purchase Considerations
- Property taxes: Ensure that you are aware of the land’s property tax responsibilities. Taxes will typically be based on the value of the land.
- Land use: Begin developing the land as per zoning laws and any plans you have for the property.
MAKE SURE YOU COVER EVERYTHING
Additional Things to Consider
- Rural vs. Urban Land: If buying rural land, be mindful of the availability of utilities, roads, and access to services.
- Environmental Concerns: For agricultural or recreational land, check if there are any environmental restrictions or considerations that might affect development.
- Land Use Permits: Depending on the land's zoning, you may need special permits for building or operating a business.
- GST: There can be a GST (Goods and Services Tax) implication on land purchases in Alberta, but it depends on several factors. You are advised to seek advice from your accountant
Legal: This information is meant to only be a guide - we strongly recommend you seek advice and work with professionals (lawyers, agents, surveyors) throughout this process to avoid mistakes and ensure everything is legal and in order.
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*** We have buyers looking to buy land privately both Residential and Rural, if you have a piece of land you would consider selling and wish to discuss, please contact us.