What is Section 15.1?

Section 15.1 clarifies that only written terms in a signed real estate contract are legally binding. Here are the key points:

1. Entire Agreement*– The signed contract represents the entire agreement between buyer and seller, including all rights, obligations, and terms.

2. Exclusion of Verbal Agreements – Any verbal promises, unless written into the contract, are not enforceable.

By enforcing these terms, Section 15.1 aims to prevent misunderstandings and disputes based on verbal claims or "puffery" (exaggerated selling statements) that could mislead buyers.

Why Realtors Need to Be Precise

For realtors, accurately representing a property’s features and condition is not only a matter of ethics—it’s a legal obligation. Misrepresentation, whether intentional or accidental, can harm buyers and lead to penalties under Alberta’s consumer protection laws. To prevent issues:

• Avoid "Puffery" – Claims like "new roof" or "upgraded windows" can be misleading if they aren’t recent. Section 15.1 doesn’t protect such statements unless written in the contract, but misrepresentation remains a legal risk.

• Document Everything – If features like a "new roof" or "recently updated windows" are mentioned, it’s crucial to clarify details in writing, such as “roof replaced in 2012.” This minimizes buyer confusion and mitigates liability.

Key Takeaways for Buyers

For buyers, understanding Section 15.1 is just as crucial. Only written statements within the contract hold legal weight. Before signing:

1. Ensure Specifics Are Documented – If certain features are important (e.g., roof age), confirm that these details are recorded in the contract.

2. Request Clarification*– When descriptions like “newly renovated” appear, ask for timelines to avoid assumptions.

3. Trust, But Verify – Rely on formal inspections to confirm the property condition aligns with representations.

Case Example: Misleading Property Claims

Imagine buying a home advertised as having "new windows" and a "recently updated roof," only to find out post-sale that these updates are over a decade old. Under Section 15.1, verbal descriptions alone won’t be legally binding unless written into the contract. However, realtors are still responsible for accurately portraying property conditions, so descriptions like “new” must reflect current conditions.

Ethical Standards in Real Estate

While Section 15.1 offers some protection by excluding unwritten promises, realtors must uphold high standards of honesty and transparency. Misleading listings damage trust and can lead to ethical complaints with RECA or AREA. Ethical professionalism includes ensuring all MLS listings and marketing materials are precise and reflective of actual property conditions. 

Final Tips for Realtors and Buyers

• Realtors – Document specifics in writing, provide accurate dates, and avoid "puffery." Maintaining clear property descriptions upholds your reputation and prevents disputes.

Buyers – Always verify and request written details for important property features. It’s best to confirm that all terms crucial to your purchase decision are included in the contract.