Attachments & Additional Terms

Terms vs. Conditions — Why This Distinction Matters

A common misunderstanding for clients (and newer REALTORS®) is assuming all contract clauses operate the same way. They do not.

Conditions

• Must be satisfied or waived by the agreed Condition Day

• If not satisfied or waived, the contract ends automatically
  
  

Terms

• Are contractual obligations

• If not performed, the contract does not automatically end

• The affected party must decide how to respond (enforce, negotiate, or pursue remedies)
  
  

If a clause is meant to protect a party’s ability to proceed or walk away, it likely belongs in Section 8 (Conditions) — not buried as a term in Section 9.

Financing Schedule

(Seller Financing · Mortgage Assumption · Other Value)

The Financing Schedule is used whenever the purchase involves anything other than a standard new mortgage and cash. This schedule must align with what lenders and lawyers will see.

Seller Financing

Seller financing means the seller is lending funds to the buyer as part of the purchase.

Why this matters:

• Primary lenders may refuse or restrict financing

• Priority of charges must be clear

• Seller financing must be fully disclosed to all lenders
  
  

Seller financing can help buyers — but only when properly structured and disclosed.

Mortgage Assumption

Mortgage assumption allows the buyer to take over the seller’s existing mortgage.

Important realities:

• Assumptions require lender approval

• Buyers must qualify under current lender rules

• Fees may apply

• Not all mortgages are assumable
  
  

Never assume an assumption will work — it is lender-controlled, not contract-controlled.

Other Value (Financing Schedule)

“Other Value” captures any non-standard contribution of value being used toward the purchase price that is not a traditional mortgage or straight cash.

This can include assets and borrowed or private funds.

Assets of Value

• another house, condo, cabin, or parcel of land

• recreational properties

• vehicles (cars, RVs, boats)

• other tangible assets agreed to by the parties
  
  

Borrowed or Financial Sources

• personal loans

• family loans or gifts

• lines of credit

• second mortgages
  
  

If an asset is used, the contract must clearly explain:

• what the asset is

• how it is being valued

• whether it is transferred, sold, or credited

• when and how the value is applied
  
  

Why this matters

• lenders require full visibility into sources of value

• undisclosed value can void financing approval

• lenders may require registration on title

• legal, tax, and priority issues may arise

• inconsistencies between contract, lender, and lawyer can delay or derail closing
  
  

“Other Value” is not filler language — it is a risk-alignment tool.

Tenancy Schedule

The Tenancy Schedule confirms who occupies the property and under what terms. It directly affects:

• possession

• income

• buyer expectations

• compliance with Alberta tenancy legislation
  
  

Key reminders:

• Fixed-term leases survive the sale

• Periodic tenancies require statutory notice

• Buyers inherit tenants — not intentions
  
  

Never assume vacancy without written verification.

Manufactured Home Schedule

Used when a manufactured or mobile home is included in the sale.

Critical distinction:

• Owned land → treat like traditional real property

• Leased land → buyer must qualify with the park or landlord
  
  

If the land is leased:

• include a condition requiring lease approval

• confirm lease fees

• verify transfer requirements
  
  

Failure here often surfaces late — and can collapse an otherwise firm deal.

Sale of Buyer’s Property Schedule

This schedule supports the Sale of Buyer’s Property condition in Section 8 and creates real pressure on buyers.

It allows:

• continued marketing by the seller

• seller notice if another offer is accepted

• forced removal of all buyer conditions within a defined time
  
  

This schedule carries high buyer risk, especially in competitive markets.

REALTORS® must:

• explain notice mechanics clearly

• ensure buyers understand removal pressure

• diarize timelines meticulously
  
  

Addendum

An addendum is used only when additional space is required.

It may include:

• renovation details

• additional names

• expanded terms

• clarifications
  
  

Important:

• an addendum is not an amendment

• it forms part of the original contract
  
  

Other Schedules (Schedule “A”, “B”, etc.)

Additional schedules may include:

• photos

• work specifications

• disclosures

• special terms
  
  

Anything attached becomes part of the contract.
If it matters, it must be attached.

Section 9.2 – Other Terms

How Additional Terms Affect Your Client

“Other Terms” are custom clauses added to address matters not fully covered by the standard form. Once accepted, they become binding obligations.

Unlike conditions:

• failure to comply does not automatically end the contract

• disputes often arise after completion, not before

• remedies depend on timing, wording, and legal interpretation
  
  

Poor drafting here creates post-closing conflict.

Interaction With Pre-Printed Clauses

Section 9.2 works with Section 3(j):

Written changes override pre-printed clauses.

Best practice:

• strike conflicting printed clauses

• ensure clarity

• initial all changes
  
  

Courts often favour the party who did not draft ambiguous wording.

Common REALTOR® Risks in Section 9

• using a term when a condition is required

• attaching schedules without explaining consequences

• assuming lenders will accept complex financing

• overlooking tenancy implications

• underestimating buyer pressure in Sale of Buyer’s Property schedules
  
  

Key Client Takeaway

Section 9 doesn’t look dramatic — but it carries long-tail risk.

Attachments and terms:

• shape possession

• affect financing

• define obligations

• survive acceptance
  
  

Handled well, they clarify expectations.
Handled poorly, they create disputes long after conditions are removed.