Protecting Buyers from Misrepresentation 

In this issue, we’re exploring Section 15.1 in Alberta real estate contracts, specifically how it sets boundaries for contractual terms and protects buyers and agents by clarifying which statements about a property are legally binding. This section is essential to understanding what’s enforceable and promotes transparency and trust in real estate transactions.  

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.

The leaves might be falling, but Calgary's real estate market is still heating up! With October marking a strong month in home sales, there's much to talk about. Let’s break down the scene in each property type, explore the impact of the Bank of Canada’s recent rate cut, and get a glimpse of what might come next for Calgary’s ever-evolving market. 

A Tale of Two Markets: High-Priced vs. Low-Priced Homes

Calgary’s market has a bit of a split personality these days. Homes priced above $600,000 are seeing more listings and sales, helping balance inventory and easing some of the buying frenzy at the upper end. But if you’re looking for something on the lower end of the price scale, you might still be caught in a bidding war! For properties under $700,000, demand remains high with less than two months’ worth of inventory, creating what’s often known as a *seller’s paradise*.  

So, why are lower-priced homes still flying off the shelves? Part of the issue is a lack of supply in that segment. While Calgary’s total inventory has improved—jumping from 3,205 units last October to nearly 5,000 this year—half of these listings are priced over $600,000. Buyers with more modest budgets are left with fewer options, keeping the competition fierce. 

Bank of Canada’s Rate Cut: A Game Changer?

The Bank of Canada recently dialed down its overnight rate to 3.75%, and buyers, sellers, and economists alike are watching closely. With inflation still a major concern, any drop in interest rates can affect mortgage payments and purchasing power. While it's too early to call, a rate reduction could fuel even more demand, especially in the middle to lower-priced segments of Calgary’s market. If further cuts happen in the coming months, we might see even more buyers jumping in, hoping to take advantage of these improved rates. 

Breaking It Down: What’s Happening in Each Property Type?

Detached Homes

Detached homes made a strong showing in October with over 1,000 sales, a bump up from both last month and last year. Inventory for detached homes remains low, with just around two months of supply in this category, meaning sellers are still in control. The unadjusted benchmark price for detached homes inched down slightly to $753,900 due to seasonal shifts, yet prices are up a solid 8% compared to last year.

Semi-Detached

Semi-detached properties are doing their best to balance out, but for now, it’s still a seller’s world here. Inventory is creeping up, especially in higher price ranges, so buyers might get a bit of relief. With October’s benchmark price of $677,000, semi-detached homes are riding a steady wave, showing an 8% year-over-year increase.

Row Housing

Row housing has hit a bit of a supply snag. October sales were mostly concentrated in the higher price ranges, while the more budget-friendly options have all but disappeared. Although the unadjusted benchmark price for row housing fell slightly in October, it still remains over 8% higher than last year at $456,600, with year-to-date prices averaging a nearly 16% increase. With demand still outpacing supply, don’t expect prices to cool down too much here anytime soon. 

Apartments

Apartment condominiums saw a little dip, marking the fifth consecutive month of year-over-year sales declines. However, compared to historical averages, condo sales are holding strong, fueled by high rents and limited options in lower-priced properties. The benchmark price for apartments sits at $341,700, up 11% from last year despite a minor seasonal adjustment last month.

A Look Beyond Calgary: Regional Rundown

• Airdrie: Thanks to a slight dip in new listings, Airdrie is moving toward balanced conditions, with prices still up 5% from last year.  
• Cochrane: Cochrane is on fire! Sales are above long-term trends, and with new listings at a record high for October, it’s on track for more balanced market conditions.  
• Okotoks: Okotoks is holding steady with a hot seller’s market. Prices here remain resilient, up 6% year-over-year.

So, What’s the Forecast? 

If the Bank of Canada continues to ease rates, Calgary’s housing market could stay dynamic, with demand in the lower-to-mid range intensifying. High-end properties may continue to see a more balanced pace, giving buyers more breathing room. But with low-priced inventory still tight, first-time buyers and those looking for more affordable options might face further challenges as they search for their ideal home. 

In a nutshell, we’re in for an exciting ride. While high-priced homes are settling into more balanced conditions, demand for entry and mid-level properties keeps Calgary’s real estate market firmly in seller’s territory. Hold on tight—there might be more twists to come!