Are there blanks in the purchase contract that can stay blank?

Blanks are a necessary evil when producing standard forms. Blanks are a prompt for pieces of information that are used in customizing the document to the client's specific needs.

?In the case of Alberta real estate forms, the forms are used across the province by members of all ten real estate boards. AREA standard forms are designed and copyrighted for the exclusive use of REALTORS? only and require the experience of those Realtors? to complete them properly.

?Although every blank was placed into the contract for a purpose, let’s look at some of the spots on the purchase contract that regularly represents confusion and perhaps should stay blank under certain circumstances.

?Legal Description – Other

In the AREA Residential Purchase Contract, the legal description line has a plan block and lot spaces, but there is an additional blank labeled other. This blank space is simply a space for any additional information you would like to include related to the formal identification with the land itself. You could include the following:

• The LINC number in this space if you felt additional clarity was required
• A land use zoning code if it is significant to the transaction.

?Apart from these custom options, it is fine for this blank to remain blank without affecting the contract.

?Additional Deposits

Many contracts only have one deposit payment from the buyer as earnest money for the trade. This is often because of the cost or inconvenience of additional deposit production and delivery.

In contracts where there is no additional deposit, the additional deposit clause can be left as it is since the contract anticipates the enforcement of deposit clauses as homogenous regardless of whether they are given in one or two lumps. It should be noted that the seller void option relating to deposits does relate to both deposits where two (2) deposits are anticipated.

?Dower

In Alberta, the Dower Act protects the non-owner spouse from the disposal of property without their consent. Dower rights are triggered when:

• The land title has one name on the title;
• AND that person on title is married;
• AND that person or their spouse ever resided on the property during the marriage.

?In Alberta, dower rights do not apply in most transactions, so the purchase contract is written in the default mode where the seller makes a warranty that dower does not apply.

In situations where the buyer’s REALTOR? has determined that dower does not apply to the transaction. For example, by obtaining a copy of the current title and finding two (2) or more names on the title, then the remainder of the dower section does not apply and the date for the seller to provide dower consent documentation can be left blank since it is not applicable. In all other situations a date should be inserted in an offer to protect the buyer in the case dower may apply.?

?Standard Conditions

In the Alberta residential purchase contract, AREA has chosen to include three of the most common conditions as follows:

1. Fillable template clauses
2. ??Namely Financing
3. Inspection, and the sale of a buyer's home.

?If one or several of these template clauses do not apply, they can be left blank without harm to the contract.

An additional option, where the buyer decides to forego the template conditions, which demonstrates transparency of the contract and that the conversation was had with the buyer about the option for applying these conditions, would be to strike the blank template clauses out, write “DECLINED” in block letters and have the buyer initial beside it before sending the offer to the seller. This helps the seller recognize the strength of the buyer’s resolve to purchase in that they clearly declined the use of the standard template conditions.

?Seller Authorization

In situations where one of the parties to the transaction is not authorizing a brokerage to represent them in the transaction, they can name an authorized party with whom the other party or the other party’s representative is authorized to communicate with for sending and receiving documents. This individual could be a lawyer or other advisor they choose but this situation is not overly common. For this reason, the alternate authorization clause should be left blank where both parties have brokerage representation.

?Witness signatures

In Alberta, witness signatures are not a requirement of a legally binding contract. Although they do lend legal weight to the validity of the signature if it needed to be defended in court, they are considered a best practice, the advent and now popular use of electronic signing platforms have changed the game.

?Under the law, a witness is someone who personally sees the party sign the document. If you did not witness this event personally you should never sign as a witness, and the witness lines should be left blank. The electronic signing platform will stand in as a pseudo-witness, but no one should ever sign as a witness when they did not personally witness the signing by the party.

?The AREA provincial standard forms have undergone significant legal scrutiny both in practice and defense, proving them to be reliable when properly used. Every blank is there for a reason, and it is important to know what that reason is and how to complete it properly with the advice and expertise of an experience REALTOR?. If in doubt talk to a broker. They can clarify the proper use of the documents and when leaving a section empty is preferable.?

Bryan Statt

Provincial Practice Advisor

Bryan has many years of experience in the real estate industry, including over ten years as a former broker in the Edmonton Region.

Email:?[email protected]