The Purchase Price & Completion Day

2.1 Purchase Price

REALTOR® Role

REALTORS® are responsible for accurately documenting the parties’ instructions — not determining tax or legal outcomes.

What REALTORS® Must Do

• Clearly state the total purchase price

• Ask the seller how they intend GST to be treated (included or excluded)

• Ensure the contract wording reflects the seller’s stated intention

• Recommend that both buyer and seller obtain legal and accounting advice regarding GST

REALTORS® do not determine whether GST applies.

GST Considerations

Where the purchase price states that it includes any applicable GST, REALTORS® must ensure the wording reflects the seller’s intention — not make a tax determination.

REALTORS® should:

• ask the seller how they expect GST to be treated

• document that expectation clearly in the contract

• recommend confirmation with the parties’ lawyer and accountant
  
  

If the seller expects GST to be charged in addition to the stated purchase price, the contract must be amended before acceptance.

If GST is excluded:

• cross out “includes GST”

• clearly indicate “GST is excluded”

• ensure all parties initial the change
  
  

Why This Matters

GST issues are one of the most common causes of:

• last-minute disputes

• lawyer intervention

• delayed release of funds at closing

GST expectations must be clarified before acceptance, not at completion.

2.2 GST Inclusion or Exclusion

What REALTORS® Must Do

• Ensure the contract clearly states whether GST is included or excluded

• Avoid ambiguous or inconsistent GST wording

• Recommend professional advice where GST may apply

REALTORS® document instructions — they do not provide tax advice.

Why It Matters

If GST is incorrectly or ambiguously addressed:

• buyers may face unexpected costs

• sellers may receive less net proceeds than expected

• lawyers may require amendments or refuse to release funds

Clear drafting reduces closing risk.

2.3 Completion Day & Possession

Completion Day

Completion Day is when:

• the full purchase price is paid

• ownership transfers through the lawyers

• transfer documents are submitted for registration

Land Titles registration may occur days or weeks later, but registration delays do not change contractual completion or possession dates.

Possession

Possession is when the buyer receives physical access to the property, typically at 12:00 noon on the possession date.

Completion and possession are not the same thing.

A buyer may legally own the property before they can physically occupy it.

Vacant vs Tenanted Possession

• If the property is to be vacant, “vacant possession” remains

• If the property will be tenanted, cross out “vacant” and replace with “tenanted”

• All tenancies must comply with Alberta tenancy legislation

REALTORS® must confirm the seller’s intent before acceptance, not assume vacancy.

Seller Delay in Delivering Possession

What Can Go Wrong

If the seller fails to deliver vacant possession:

• the buyer may be unable to move in

• temporary accommodation or storage costs may arise

• disputes often occur after completion

• legal remedies may be required

Ownership may already have transferred, leaving the buyer owning a property they cannot occupy.

What REALTORS® Must Understand

• Vacant possession is a contractual obligation

• Failure to vacate is not automatically resolved

• Remedies are often post-completion and limited

• REALTORS® cannot guarantee outcomes once funds are released

This risk must be discussed before acceptance, especially when:

• the seller is still occupying the property

• the seller is purchasing another home

• possession is same-day or next-day after completion
  
  

Buyer Late Payment / Failure to Pay

If the buyer fails to pay the full purchase price by completion, the buyer is in default of the contract.

Late Payment Interest

Most Alberta contracts provide for:

• interest on the outstanding balance

• typically Alberta Prime Rate + 3% per annum

• calculated daily

• accruing from completion until funds are received

REALTORS® do not calculate or collect interest — this is handled by the lawyers.

Seller’s Options

The seller may:

• allow completion with interest

• refuse to complete

• terminate the contract

• retain the deposit (subject to legal advice)

• pursue damages or relist

The seller is not required to accept late funds.

REALTOR® Responsibilities

• ensure buyers understand funds must be available on completion

• avoid promising flexibility the seller may not grant

• communicate immediately if delays arise

• escalate early to the brokerage and lawyers

Late payment is not an administrative delay — it is a contractual default.

Delayed Completion or Registration

Delays in registration or document processing may affect:

• possession timing

• moving arrangements

• utility transfers
  
  

REALTOR® Role

• ensure documents are submitted on time

• maintain communication with lawyers

• manage client expectations

REALTORS® facilitate communication — they do not control registration timelines.

2.4 Property Condition at Completion

Contract Requirement

The property must be in substantially the same condition as at acceptance, with:

• all attached goods included

• all unattached goods included

• goods in normal working order

“Substantially the same condition” is subjective and a common source of dispute.

Final Walkthrough (Best Practice)

• Schedule a walkthrough shortly before completion

• Confirm:

  • property condition

  • operation of systems and appliances

  • inclusion of agreed goods
    
    

If issues arise:

• notify the buyer’s lawyer immediately

• funds should not be released until addressed

• remedies may include repairs, credits, holdbacks, or negotiated compensation
  
  

Key Takeaways for REALTORS®

• Clarify GST treatment before acceptance

• Do not confuse completion with possession

• Confirm vacant vs tenanted possession explicitly

• Ensure buyer funding readiness

• Always schedule a final walkthrough

• Address issues before funds are released
  
  

Important Cross-Reference

Post-condition damage, repairs, and liability are addressed further in Property Due Diligence & Risk and Post-Condition Repairs & Buyer Liability.