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AREA Agency Disclosure Forms

Jan 22, 2004 Customer Status Disclosure

Jan 22, 2004 Informed Dual Agency Leasing

Jan 22, 2004 Informed Dual Agency Sale

Jan 22, 2004 Referral Disclosure (Jan 2004)

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Jan 22, 2004 Buyer Brokerage Amendment

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AREA Commercial Contracts

Jan 21, 2004 Additional Rent Schedule (Commercial)

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Jan 21, 2004 Condominium Appendix (Commercial)

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Jan 21, 2004 Lease Agreement Addendum (Commercial)

Jan 21, 2004 Lease Agreement (Commercial)

Jan 21, 2004 Leasing Contract (Commercial)

Jan 21, 2004 Leasing Contract Appendix (Commercial)

Jan 21, 2004 Leasing Notice (Commercial)

Jan 21, 2004 Listing Contract Termination Agreement (Commercial)

Jan 21, 2004 Listing To Lease (Commercial)

Jan 21, 2004 Listing To Lease Appendix (Commercial)

Jan 21, 2004 Notice (Commercial)

Jan 21, 2004 Purchase Contract (Commercial)

Jan 21, 2004 Purchase Contract Addendum (Commercial)

Jan 21, 2004 Purchase Contract Ammendment (Commercial)

Jan 21, 2004 Rural Commission Agreement (Commercial)

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Articles

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The Calgary Real Estate Board : Commercial

Sep 25, 2003 Alberta “Business for Sale” Meets the World Market

Oct 21, 2003 Albertafirst.com Statistics June to Oct 2003

Jan 1, 2003 Apartement Financing - What are the options?

Jan 1, 2003 Beware of Asbestos

Jan 1, 2003 Calgary plant leaked creosote for over 40 years - Stan Leece

Jan 1, 2003 Claiming capital cost allowance

Dec 8, 2003 cls.ca Website Statistics

Jan 1, 2003 Don't let the taxman take a bigger slice

Jan 1, 2003 Entertainment, promotion - tax deductible?

Jan 1, 2003 Environmental Site Assessments

Jan 1, 2003 Formeldehyde wall filling causing health problems years later

Jan 1, 2003 Lead in Gas

Jan 1, 2003 Lead in Paint

Jan 1, 2003 Learning more about taxation pays

Jan 1, 2003 Legal, Illegal, and Non-Conforming Suites

Jan 1, 2003 PCB's Airborne Until Permanently Burnt - Stan Leece

Jan 1, 2003 Planning finances encompasses many aspects

Jan 1, 2003 Radon Gas

Dec 16, 2003 Rental Information Brochure

Sep 5, 2003 Residential Vacancy Rates

Jan 1, 2003 The Gross Rent Multiplier

Jan 1, 2003 Underground Petroleum Storage Tank Site Remediation Program

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The Calgary Real Estate Board : Commercial

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Clauses & Phrases

Feb 1, 2001 AREA Standard Clauses and Phrases


To assist in the writing of commercial and aggricultural purchase contracts and commercial
leasing contracts

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Commercial

Sep 4, 2003 City of Calgary Traffic Counts (JPEG)

Commercial / Rural Websites of Interest

Sep 4, 2003 Downtown Beltline Traffic Counts (JPEG)

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Courses

Jan 12, 2004 Commercial MLXchange Schedule Update

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Division News

Feb 12, 2003 2003 / 2004 Commercial Division Strategic Plan

Jan 17, 2003 About the Commercial Listing Service (CLS)

Dec 10, 2003 Benefits of Commercial Membership

Jan 20, 2003 Commercial Article 19 Information

May 16, 2002 Commercial Code of Ethics

Nov 12, 2001 Commercial Compulsory Fields

Jan 8, 2004 Commercial Division Goals - 2004

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The Calgary Real Estate Board : Commercial

Jan 31, 2003 Commercial Newsletter - December 2002

Dec 16, 2003 Commercial Newsletter - December 2003

Mar 11, 2003 Commercial Newsletter - March 2003

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Apr 30, 2003 Agribusiness Input Form

Nov 7, 2002 Appendix to Commercial Real Estate Listing Contract

Jun 24, 2003 Business Only / Business with Property Input Form

Jun 24, 2003 Business Only / Business with Property Listing Contract

Jul 5, 2001 Client Confidentiality Agreement & Dual Agency Disclosure

Nov 12, 2001 Commercial Compulsory Fields

Nov 13, 2003 Commercial District Codes

Nov 13, 2003 Commercial Input Form for Industrial / Commercial / Investment

Jan 8, 2004 Commercial Membership Application Form - 2004

Nov 13, 2002 Commercial Property Disclosure Statement

Nov 7, 2002 Commission Agreement

Dec 13, 1999 Credential Form - Commercial

Sep 26, 2003 CREN Ad Form

Apr 30, 2002 Lease Listing Input Form

Dec 17, 2001 Non Disclosure of Buyer/Seller's Name

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Forms Help (AREA)

Feb 11, 2003 Commercial Real Estate Agreement to Lease Help


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The Calgary Real Estate Board : Commercial

Feb 11, 2003 Commercial Real Estate Listing Contract Help

Feb 11, 2003 Commercial Real Estate Listing to Lease Agreement Help

Feb 11, 2003 Commercial Real Estate Purchase Contract Help

Feb 11, 2003 Tenant Brokerage Contract Help

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Technology

Jul 30, 2003 How to Search Informational Listings - Status "I"

Dec 2, 2001 Investit


Investit is a Real Estate Investment Analysis toolbox for Real Estate professionals.

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January 24, 2004

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Customer Status Disclosure Acknowledgment
(To be used when there is no agency relationship)

Members of the Canadian Real Estate Association are required to abide by a strict Code of Ethics and Standards of Business Practice,
which serves to protect the buying and selling public alike. One of the ethical obligations embodied in the Code requires that
REALTORS disclose who they are representing (or not representing) in a real estate transaction:

A REALTOR shall fully disclose in writing to, and is advised to seek written acknowledgment of disclosure from, all parties
to a transaction regarding the role and the nature of service the REALTOR will be providing to the client versus the
customer or other party to the transaction.

Agency/Client Relationship
A REALTOR representing a client in a real estate transaction works within a legal relationship called agency. As an agent, the
REALTOR owes the client a number of duties including loyalty, obedience of lawful instructions of the client, confidentiality, reasonable
care and skill in performing the tasks required, accounting of all money received, full disclosure of all relevant facts, and nondelegation
of responsibilities. The client, on the other hand, owes the agent a duty of reasonable compensation for the services rendered.

Customer
A party may choose to represent him/herself in a real estate transaction. A party representing him/herself (either as a buyer or a seller)
is referred to as a third party to the client, and a customer to the REALTOR representing the client. Unless otherwise expressly agreed
to in writing, the customer is not expected to pay the REALTOR any compensation. On the other hand, the customer does not have
the protection of the duties which a client in an agency relationship receives from his/her agent. Notwithstanding the foregoing, a
REALTOR assisting a customer has to be honest and ensure that all information provided to the customer is factually correct.

Acknowledgment
Having read and understood this form, I/we acknowledge that:

______________________________________________________________________ (name of broker, associate broker or agent)


being registered with ______________________________________________________________________ (name of brokerage)
disclosed that he/she is representing ______________________________________________________________ (name of client) in
the purchase/sale of _________________________________________________________________________________________
__________________________________________________________________ (property address) and is not acting on my behalf.

I further acknowledge that my status in the above transaction is that of a customer.

Dated this _________________ day of ___________________________________________________________, _____________.

_____________________________________________________________ _______________________________________________________________________
Customer Witness

_____________________________________________________________ _______________________________________________________________________
Customer Witness
© January 2004 The Alberta Real Estate Association
Informed Dual Agency Consent
(To be completed by the Tenant and attached to the Agreement to Lease #_________________)

As required by the Real Estate Council of Alberta's Code of Conduct, a real estate brokerage (including its broker, associate brokers, and
agents) must only act for one party in a transaction, unless there is full disclosure to all parties, and the dual agency is agreed to in
writing. The client must fully understand the implications of dual agency and give an informed consent in writing prior to entering into a
real estate transaction.

The Agency Relationship


You, the Tenant, have entered into an agency relationship under common law with the Brokerage, including its broker, all its associate
brokers and agents (collectively referred to as the Tenant's Agent).
A brokerage, its broker, associate brokers and agents representing a landlord are referred to as the Landlord's Agent.
The Tenant's Agent is obligated to protect and promote your interests. Specifically, the Tenant's Agent owes you the fiduciary duties
of loyalty, obedience, confidentiality, reasonable care and skill, full disclosure, and full accounting.
You, as the Tenant, and potential landlords may be represented by different brokerages (the Tenant’s Agent and the Landlord's Agent).
Each of these Agents owes its client the full fiduciary duties listed above. Other brokerages representing landlords will not have a
fiduciary relationship with you.
The landlord may be acting on its own behalf. In this situation, the Tenant understands that the Brokerage will represent only the
Tenant as Tenant’s Agent and will not owe fiduciary duties to the landlord.

Dual Agency
Dual Agency occurs when one brokerage (the Dual Agent) trading in real estate from one or more locations, represents both you and
the landlord, or more than one tenant, with respect to the potential leasing of the Property. In such circumstances, the described
fiduciary duties are limited as follows:
The Dual Agent:
(a) will not, without prior written authority, disclose:
(i) to the landlord that you will pay a price higher than the asking rate (or countered lease rate),
(ii) to you that the landlord will accept a price lower than the asking rate,
(iii) to the landlord the reason that you are seeking to lease,
(iv) to you the reason that the landlord is leasing, and
(v) to you or other tenants the terms and conditions of competing offers;
(b) except as set out in (a), will owe no duty of confidentiality and will disclose to you and the landlord all facts known that materially
affect or may materially affect the marketability or value of the Property.

The Tenant authorizes the Tenant's Agent (_____________________________________________________________________)


(the Brokerage)
to act as a Dual Agent in accordance with the above disclosure.

__________________________________________ ___________________________________________ ______________________________________________


Tenant Witness Date

__________________________________________ ___________________________________________ ______________________________________________


Tenant Witness Date

_________________________________________ ___________________________________________ ______________________________________________


Landlord Witness Date

__________________________________________ ___________________________________________ ______________________________________________


Landlord Witness Date
© January 2004 The Alberta Real Estate Association
Informed Dual Agency Consent
(To be completed by the Buyer and attached to the Purchase Contract #_________________)

As required by the Real Estate Council of Alberta's Code of Conduct, a real estate brokerage (including its broker, associate brokers, and
agents) must only act for one party in a transaction, unless there is full disclosure to all parties, and the dual agency is agreed to in
writing. The client must fully understand the implications of dual agency and give an informed consent in writing prior to entering into a
real estate transaction.

The Agency Relationship


You, the Buyer, have entered into an agency relationship under common law with the Brokerage, including its broker, all its associate
brokers and agents (collectively referred to as the Buyer's Agent).
A brokerage, its broker, associate brokers and agents representing a seller are referred to as the Seller's Agent.
The Buyer's Agent is obligated to protect and promote your interests. Specifically, the Buyer's Agent owes you the fiduciary duties of
loyalty, obedience, confidentiality, reasonable care and skill, full disclosure, and full accounting.
You, as the Buyer, and potential sellers may be represented by different brokerages (the Buyer's Agent and the Seller's Agent). Each
of these Agents owes its client the full fiduciary duties listed above. Other brokerages representing sellers will not have a fiduciary
relationship with you.
The seller may be acting on its own behalf. In this situation, the Buyer understands that the Brokerage will represent only the Buyer
as Buyer’s Agent and will not owe fiduciary duties to the seller.

Dual Agency
Dual Agency occurs when one brokerage (the Dual Agent) trading in real estate from one or more locations, represents both you and
the seller, or more than one buyer, with respect to the potential purchase of the Property. In such circumstances, the described
fiduciary duties are limited as follows:
The Dual Agent:
(a) will not, without prior written authority, disclose:
(i) to the seller that you will pay a price higher than the offered price (or countered price),
(ii) to you that the seller will accept a price lower than the listed price,
(iii) to the seller the reason that you are buying,
(iv) to you the reason that the seller is selling, and
(v) to you or other buyers the terms and conditions of competing offers;
(b) except as set out in (a), will owe no duty of confidentiality and will disclose to you and the seller all facts known that materially
affect or may materially affect the marketability or value of the Property.

The Buyer authorizes the Buyer's Agent (______________________________________________________________________)


(the Brokerage)
to act as a Dual Agent in accordance with the above disclosure.

__________________________________________ ___________________________________________ ______________________________________________


Buyer Witness Date

__________________________________________ ___________________________________________ ______________________________________________


Buyer Witness Date

_________________________________________ ___________________________________________ ______________________________________________


Seller Witness Date

__________________________________________ ___________________________________________ ______________________________________________


Seller Witness Date
© January 2004 The Alberta Real Estate Association
REFERRAL FEE DISCLOSURE FORM

Acknowledgment
I/We acknowledge and agree that:
______________________________________________________________________________________________________________
(Broker, associate broker, agent)
representing ____________________________________________________________________________________________________
(Brokerage)
will be receiving a referral fee of ____________________________________________________________________________________
as a result of

q sale of property q lease of property


q purchase of property q approved mortgage
q other __________________________________________________________

Client Referred From: Client Referred To:


__________________________________________________ __________________________________________________
Broker, associate broker, agent
__________________________________________________ __________________________________________________
Brokerage
__________________________________________________ __________________________________________________
Address Address
__________________________________________________ __________________________________________________
(postal code) (postal code)
__________________________________________________ __________________________________________________
Phone Fax Phone Fax
__________________________________________________ __________________________________________________
Email Email

Client Information
Client's Name ___________________________________________________________________________________________________
Address _______________________________________________________________________________________________________
______________________________________________________________________________________________________________
(postal code)
______________________________________________________________________________________________________________
Phone Fax Email

Additional Client Information


______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________
______________________________________________________________________________________________________________

SIGNED at _____________________________________, this ________ day of _________________________________, ___________.

________________________________________________ _____________________________________________________
Signature of Referred Client Witness

________________________________________________ _____________________________________________________
Signature of Referred Client Witness
January 2004
AMENDMENT TO THE
BUYER BROKERAGE CONTRACT
Contract # ______________________

Further to the Buyer Brokerage Contract dated the __________ day of ___________________________________________, ______________.

Between
and
THE BUYER THE BUYER’S BROKERAGE (the “Brokerage”)
Name ____________________________________________________ Brokerage Name _____________________________________________

Name ____________________________________________________ ___________________________________________________________


Broker, associate broker or agent authorized to represent the Brokerage

The following changes shall be made to the above Contract and except for such changes noted below, all other terms and conditions in the Contract
shall remain as stated therein.

DELETE: ________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

INSERT: ________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

Dated at ____________________________, Alberta, this ______________day of ______________________________, __________ at __________ a.m./p.m.

______________________________________________________________ __________________________________________________________
Buyer Witness

______________________________________________________________ __________________________________________________________
Buyer Witness

________________________________________________________
Signature of broker, associate broker or agent authorized to sign on behalf of the
Brokerage
September 2002/January 2004
CONTRACT # _________________________

BUYER BROKERAGE CONTRACT


This form was developed by the Alberta Real Estate Association for the use of its members and
may not be altered electronically by any person. Others who use this document do so at their own risk.

This Contract is between


THE BUYER and THE BUYER’S BROKERAGE (the “Brokerage”)

Name _____________________________________________________________ Brokerage Name ____________________________________________________

Name _____________________________________________________________ ___________________________________ Email _________________________

Address ___________________________________________________________ Address ___________________________________________________________


(postal code)
__________________________________________________________________ Phone _____________________________ Fax __________________________
(postal code)
__________________________________________________________________
Phone _______________________________ Fax ________________________ Broker, associate broker or agent authorized to represent the Brokerage

Email ______________________________________________________________ Member of the ____________________________ Real Estate Board (the “Board”)

1. OTHER BUYER BROKERAGE CONTRACTS (c) advise prospective sellers or their brokerages with whom the Brokerage
1.1 Have you entered into any other buyer brokerage is negotiating that they represent the Buyer;
contract with a brokerage in Alberta during the
(d) cooperate with brokerages which represent sellers of real estate;
last twelve months? q Yes q No
(e) not disclose the Buyer's identity if instructed not to do so.
1.2 Are you currently in a buyer brokerage contract
with another real estate brokerage? q Yes q No 5. ENDING THIS CONTRACT

2. TERM OF THIS CONTRACT 5.1 This Contract will automatically end if the Brokerage:
(a) has had its licence to trade in real estate suspended or cancelled under
2.1 The Buyer agrees to retain only the Brokerage:
the Real Estate Act (Alberta);
(a) to find real estate suitable for the Buyer to Purchase and,
(b) ceases to be a member in good standing of a real estate board; or
(b) to assist the Buyer in negotiating the terms of the Purchase.
(c) is bankrupt, insolvent, or in receivership.
2.2 The following properties are excluded from this Contract:
5.2 Where a party to this Contract has breached the Contract, the other party may
_____________________________________________________________ end the Contract by notice in writing to the party in breach.
_____________________________________________________________ 5.3 The Brokerage may enforce clause 6.4(b) even if the Contract has ended or
_____________________________________________________________ expired.

_____________________________________________________________ 6. THE BROKERAGE’S COMPENSATION

2.3 The Term of the Contract is effective today until 11:59 p.m. on ___________ 6.1 The Brokerage’s fee (the “Fee”) shall be:
(a) the portion of the real estate commission, if any, paid to the Brokerage by
______________________________________________ (the “Expiry Date”) the seller's brokerage respecting a transaction involving the Buyer (the
unless renewed/extended in writing. “Collected Commission”), or

3. DUTIES OF THE BUYER (b) _______________________________________________________


plus GST,
3.1 The Buyer agrees to:
whichever is greater.
(a) advise the Brokerage of real estate in which the Buyer is interested;
(b) provide the Brokerage with sufficient personal and financial information 6.2 (a) As security for payment of the Fee when this Contract is signed, the
to enable the Brokerage to determine the Buyer's ability to Purchase real Buyer will deposit with the Brokerage, to be held in trust, the sum of
estate; $________________________________________ (the “Fee Deposit”).
(c) negotiate in good faith the Purchase of any specific property in which the (b) The Brokerage is authorized to apply the Fee Deposit toward the Fee and
Buyer is interested. applicable GST.
4. DUTIES OF THE BROKERAGE (c) The Fee Deposit shall be refunded to the Buyer not later than 90 days
after the Expiry Date if the Fee is not earned according to clause 6.4. If
4.1 The Brokerage will: the Buyer has signed a contract with a new brokerage as per clause 6.5,
(a) provide the Buyer with information about real estate listed on the Board's the Fee Deposit shall be refunded forthwith to the Buyer.
Multiple Listing Service® or such other real estate as the Brokerage is or
6.3 If any Collected Commission plus the Fee Deposit:
becomes aware of and which may meet the Buyer's requirements;
(b) assist the Buyer at the Buyer's written request and expense to obtain (a) exceeds the Fee and GST, then the excess will immediately be paid by
inspections, real property reports, certificates of title and any other the Brokerage to the Buyer, or
searches and additional information which the Buyer may require in order (b) is less than the Fee and GST, then the shortfall will immediately be paid
to decide whether to Purchase any specific property; by the Buyer to the Brokerage.
______________ ______________
Buyer’s Initials Buyer’s Initials
 January 2004 The Alberta Real Estate Association Page 1 of 2
CONTRACT # _________________________
6.4 The Brokerage will be entitled to receive the Fee and the Buyer will be obligated 9. DEFINITIONS
to pay it, if: 9.1 In this Contract:
(a)(i) during the term of this Contract, the Buyer enters into a contract for the
(a) “Buyer” is understood to include a tenant.
Purchase of any specific property;
(ii) the obligations of the parties are (have become) unconditional; and (b) “Buyer's Agent” means the licensed brokerage (including its broker, all
associate brokers and agents) who represents the Buyer or tenant.
(iii) at the closing date the seller is willing and able to complete the
transaction; or (c) “Lease” is a contract between an owner and a tenant that transfers to
(b) within 90 days after this Contract has ended, the Buyer enters into a the tenant the right to use a piece of property for a specified length of time
contract for the Purchase of any specific property and during the term of under specific conditions.
this Contract the specific property was introduced to the Buyer by the (d) “Purchase” includes any sale, agreement for sale, exchange or trade of
Brokerage or through the efforts of the Brokerage. property and a Lease, Offer to Lease, or a Lease with an option to
purchase.
6.5 Clause 6.4 will not apply if after this Contract has ended the Buyer has signed
an agreement with a new brokerage and the Buyer is obligated to pay a fee to (e) “Purchase Price” means the total consideration to be paid by the Buyer
the new brokerage as a result of the Purchase of any specific property. either at the closing date or at some future described time.
6.6 The Fee plus GST earned by the Brokerage shall be payable upon completion (f) “Seller” is understood to include a landlord.
of the transaction. If there is an additional amount payable to the Brokerage, (g) “Seller's Agent” means the licensed brokerage (including its broker, all
the Buyer will pay it upon completion of the transaction. In the event the Buyer associate brokers and agents) who represents the seller or landlord.
refuses to complete the transaction, the Fee is due and payable within seven
(7) days of demand by the Brokerage. 10. ACKNOWLEDGMENT
10.1 The Buyer acknowledges that the Brokerage is being retained as a real
7. AGENCY DISCLOSURE/ACKNOWLEDGMENT
estate broker, not as a lawyer, tax advisor, lender, appraiser, surveyor,
7.1 You, the Buyer, have entered into an agency relationship under common law structural engineer, property inspector, or other professional service
with the Brokerage, including its broker, all its associate brokers and agents provider.
(collectively referred to as the Buyer's Agent). A brokerage, its broker, 10.2 This Contract creates binding legal obligations. The Buyer acknowledges
associate brokers and agents representing a seller are referred to as the that he/she has been advised to seek professional advice concerning the
Seller's Agent. condition of any specific property that the Buyer might be introduced to
7.2 The Buyer's Agent is obligated to protect and promote your interests. and with respect to any legal and tax matters regarding the entering into
Specifically, the Buyer's Agent owes you the fiduciary duties of loyalty, of this Contract.
obedience, confidentiality, reasonable care and skill, full disclosure and full 10.3 The Buyer consents to have the Brokerage collect, use and disclose
accounting. personal information provided for purposes relating to the real estate
7.3 You, as the Buyer, and potential sellers may be represented by different services provided by the Brokerage to the Buyer including, but not
brokerages (the Buyer's Agent and the Seller's Agent). Each of these Agents limited to:
owes its client the full fiduciary duties listed above. Other brokerages (a) locating, assessing and qualifying property for the Buyer;
representing sellers will not have a fiduciary relationship with you. (b) advertising on behalf of the Buyer;
7.4 Dual Agency occurs when one brokerage (the Dual Agent), trading in real (c) providing information as needed to third parties retained by the
estate from one or more locations, represents both you and the seller, or more Buyer to assist in a transaction (e.g., financial institutions, building
than one buyer, with respect to the potential purchase of a property. In such inspectors, etc.); and
circumstances, the described fiduciary duties are limited as follows:
(d) such other use of the Buyer’s information as is consistent with the
The Dual Agent: services provided by the Brokerage in connection with the
(a) will not, without prior written authority, disclose: purchase or prospective purchase of the property.
(i) to the seller that you will pay a price higher than the offered price (or The Buyer agrees that the sale and other related information regarding
countered price), any property purchased by the Buyer through the Brokerage may be
retained and disclosed by the Brokerage and/or the Board(s) as required
(ii) to you that the seller will accept a price lower than the listed price, for closing and for reporting, appraisal and statistical purposes.
(iii) to the seller the reason that you are buying,
(iv) to you the reason the seller is selling, and THIS CONTRACT IS MADE AS OF
(v) to you or other buyers the terms and conditions of competing offers;
(b) except as set out in (a), will owe no duty of confidentiality and will disclose __________________________________________________________________
to you and the seller all facts known that materially affect or may Date
materially affect the marketability or value of the specific property.
_______________________________ _______________________________
7.5 The Buyer authorizes the Buyer's Agent to act as a Dual Agent according Buyer Witness
to the terms of this section.
_______________________________ _______________________________
8. ADDITIONAL TERMS Print Name of Buyer Print Name of Witness

8.1 All changes of number will be made where required. _______________________________ _______________________________
8.2 This Contract will be governed by the laws of the Province of Alberta. The Buyer Witness
parties submit to the jurisdiction of the Courts in the Province of Alberta in any
dispute that may arise out of this transaction. _______________________________ _______________________________
Print Name of Buyer Print Name of Witness
8.3 This Contract may be signed by the parties and transmitted by fax. This
procedure will be as effective as if the parties had signed and delivered an
__________________________________________________________________
original copy.
Signature of broker, associate broker, or agent authorized to sign on behalf of the
8.4 The Buyer warrants that, prior to completion, he/she is NOT an “ineligible Brokerage
person” or a “foreign controlled corporation” and is eligible to purchase
“controlled land” as those terms are defined in the Foreign Ownership of Land Buyers' initials to acknowledge they
Regulations. have received a copy of this Contract. ___________________________
Page 2 of 2
BUYER BROKERAGE
TERMINATION AGREEMENT

Contract # _________________________

Between
and
THE BUYER THE BUYER’S BROKERAGE (the “Brokerage”)

Name _________________________________________________ Brokerage Name _________________________________________

Name _________________________________________________ _______________________________________________________


Broker, associate broker or agent authorized to represent the Brokerage

The parties wish to terminate the Buyer Brokerage Contract dated ______________________________________________, ______________.

q Conditional Termination
Fee entitlement will continue as per the provisions of clauses 6.4 and 6.5 of the Buyer Brokerage Contract.

q Unconditional Termination
To be used where the parties want to sever their relationship with no ongoing obligations.

Additional terms: ______________________________________________________________________________________________________

____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________

DATED at ________________________, Alberta this ___________day of ___________________________________________, __________.

______________________________________________________________ __________________________________________________________
Buyer Witness

______________________________________________________________ __________________________________________________________
Buyer Witness

_____________________________________________________________ _____________________________________________________
Approved and accepted by the Buyer’s Broker/Manager Signature of broker, associate broker or agent authorized to sign on behalf of the
Brokerage

Buyer acknowledges receiving a copy of this Agreement. ___________________________________________________________

January 2004
AMENDMENT TO THE
TENANT BROKERAGE CONTRACT
Contract # ______________________

Further to the Tenant Brokerage Contract dated the __________ day of ___________________________________________, ______________.

Between
and
THE TENANT THE TENANT’S BROKERAGE (the “Brokerage”)
Name ____________________________________________________ Brokerage Name _____________________________________________

Name ____________________________________________________ ___________________________________________________________


Broker, associate broker or agent authorized to represent the Brokerage

The following changes shall be made to the above Contract and except for such changes noted below, all other terms and conditions in the Contract
shall remain as stated therein.

DELETE: ________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

INSERT: ________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

Dated at ____________________________, Alberta, this ______________day of ______________________________, __________ at __________ a.m./p.m.

______________________________________________________________ __________________________________________________________
Tenant Witness

______________________________________________________________ __________________________________________________________
Tenant Witness

________________________________________________________
Signature of broker, associate broker or agent authorized to sign on behalf of the
Brokerage
September 2002/January 2004
TENANT BROKERAGE
TERMINATION AGREEMENT

Contract # _________________________

Between
and
THE TENANT THE TENANT’S BROKERAGE (the “Brokerage”)

Name _________________________________________________ Brokerage Name _________________________________________

Name _________________________________________________ _______________________________________________________


Broker, associate broker or agent authorized to represent the Brokerage

The parties wish to terminate the Tenant Brokerage Contract dated ______________________________________________, ______________.

q Conditional Termination
Fee entitlement will continue as per the provisions of clauses 6.4 and 6.5 of the Tenant Brokerage Contract.

q Unconditional Termination
To be used where the parties want to sever their relationship with no ongoing obligations.

Additional terms: ______________________________________________________________________________________________________

____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________

DATED at ________________________, Alberta this ___________day of ___________________________________________, __________.

______________________________________________________________ __________________________________________________________
Tenant Witness

______________________________________________________________ __________________________________________________________
Tenant Witness

_____________________________________________________________ _____________________________________________________
Approved and accepted by the Tenant’s Broker/Manager Signature of broker, associate broker or agent authorized to sign on behalf of the
Brokerage

Tenant acknowledges receiving a copy of this Agreement. ___________________________________________________________

January 2004
ADDITIONAL RENT SCHEDULE
This Schedule is attached to and forms part of the Commercial Real Estate Agreement to Lease # ______________________________

This Agreement is between


THE LANDLORD and THE TENANT
Name ________________________________________________________ Name ________________________________________________________

Name _______________________________________________________ Name ________________________________________________________

A B C
Expense Item Landlord Pays Tenant Pays Tenant Pays Proportionate Notes
Share (“Common Expenses”)
Taxes:
Business Taxes
Property Taxes
Insurance:
Landlord's Property & Liability
Tenant's Property & Liability
Glass Doors/Windows & Frames
Utilities & Services:
Electricity
Water & Sewer
Natural Gas
Telephone & Cable TV
Waste Removal/Garbage
Janitorial Services & Supplies
Landscape & Groundskeeping
Property Management Fees
Maintenance & Repair:
Structural
Roof Covering (non-structural)
HVAC, Plumbing & Mechanical
Lighting & Electrical Systems
Interior Décor
Other Non-Structural Components
Pavement & Hard Surfacing

Replacement or Depreciation:

Other Expenses:

_____________________________ _________________________________________________ ___________________________________________________


Date Landlord’s Signature Tenant’s Signature
January 2004
REAL ESTATE LISTING CONTRACT
EXTENSION/AMENDMENT AGREEMENT
MLS# _______________________________________ Real Estate Listing Contract # ________________________________

TO: _____________________________________________________________________________________________________________________________
Brokerage Name (the “Brokerage”)
My/Our Property known as:
________________________________________________________________________________________________________________________________.
Municipal Address
Plan _________________________________________________ Block ______________________ Lot ________________ Subdivision ________________
_
OR
W. of Range Township Section Part Acres

OR
Condo. Unit No. _________________________________ Plan No. _________________________________ Project Name ____________________________

Current Price $ ________________________________________________ Current Expiry Date __________________________________________________

I/We hereby agree to the following changes with reference to the above listing:
1. Listing Extension:
The expiry date of the said Real Estate Listing Contract is extended until 11:59 p.m. on
________________________________________________________________________________________________________, _________________
2. Price Change:
The asking price for the Property will be changed to $ __________________________________________________________________________
effective as of ____________________________________________________________________________________________, ________________.
3. Other Amendments (if any): _______________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________________

Dated this ___________________________day of ____________________________________________________________________, ___________________

_________________________________________________________ ______________________________________________________________________
Seller Witness
_________________________________________________________ ______________________________________________________________________
Seller Witness
________________________________________________________________________ __________________________________________________________________________________________
Address Seller acknowledges receiving a copy of this Agreement
_________________________________________________________________________________________
Signature of broker, associate broker or agent authorized to sign on behalf of the Brokerage
January 2004
COMMERCIAL CONDOMINIUM PROPERTY SCHEDULE
This Schedule is attached to and forms part of the Commercial Real Estate Purchase Contract # _____________________________

Name of project _______________________________________________________________________________________________________


Municipal address (including suite #) ______________________________________________________________________________________
Condominium plan(s) _____________________________ Condominium plan(s) of redivision, if applicable ______________________________
Legal unit no.(s) _________________________________ Legal parking unit(s) ___________________________ Stall #(s) ________________
Parking condominium plan(s) _______________________ Parking stall(s) owned __________ leased ___________ assigned ______________
Legal storage unit(s) ______________________________ Locker #(s) ___________________________________________________________
Storage unit(s) owned __________ leased ___________ assigned ______________
Condominium type: Conventional ___________________ Bare Land (creating a lot) _________________________

The Buyer's Condition applies only to condominium units for resale [that is, they are not covered by sections 12 and 13 of the Condominium
Property Act (Alberta) (the "Act")]. All terms have the same meaning as in the Act.

Buyer's Condition
- The Contract is subject to the Buyer’s satisfaction with the condominium documents (the "Documents") listed below.
- The Seller will deliver original or true copies of the Documents to the Buyer at least five (5) Business Days before the Condition Day. The
Documents are:
l copy of registered condominium plan l details of any structural deficiencies in the condominium complex

l copy of the Condominium Corporation's current bylaws l the amount of the reserve fund

l copy of the Condominium Corporation's current financial l copy of any reserve fund study

statement, most recent annual financial statement and annual l copy of any reserve fund report
report l copy of any reserve fund plan

l copy of current annual budget and condominium fee schedule


l the particulars of any post tension cables that are located anywhere

l copy of the minutes of the most recent general meeting of the on or within the Property that is included in the condominium plan
Condominium Corporation l percentage of owner occupancy in the complex

l condominium board of directors minutes for the past 12


l details of any additional fees or monies payable by a unit owner
months
l details of any contributions already levied but which will only
l copy of any special resolution being circulated
become effective after the Completion Day
l copy of the insurance certificate
l details of any actions commenced against the Corporation

l copy of any lease agreement or exclusive use agreement with


l details of any unsatisfied judgment or outstanding court order
respect to the possession of a portion of the Common against the Corporation
Property, including a parking stall or storage unit
l details of any written demand upon the Corporation for payment of
l copy of any management agreement an amount in excess of $5,000
l copy of any recreational agreement l any other relevant details

________________________________________ ___________________________________________

________________________________________ ___________________________________________
________________________________________ ___________________________________________
- If the Seller fails or refuses to deliver the Documents by the agreed time, the Buyer may obtain the Documents through other sources. All
reasonable costs incurred by the Buyer to obtain the Documents will be paid by the Seller including solicitor/client legal fees and
disbursements. The Buyer may set off these costs against the Purchase Price at the Completion Day. The Buyer will have no other remedy
against the Seller for failing or refusing to deliver the Documents.

_____________________________ _________________________________________________ ___________________________________________________


Date Seller’s Signature Buyer’s Signature
January 2004
COMMERCIAL CONDOMINIUM PROPERTY APPENDIX
This Appendix forms part of the Commercial Real Estate Listing Contract # _________________________

Name of project ___________________________________________________________________________________________________________________

Municipal address (including suite #) __________________________________________________________________________________________________

Condominium plan(s) _____________________________________Condominium plan(s) of redivision, if applicable ___________________________________

Legal unit no.(s) _________________________________________Legal parking unit(s) ____________________________ Stall #(s) ____________________

Parking condominium plan(s) ______________________________ Parking stall(s) owned _____________ leased ______________ assigned _____________

Legal storage unit(s) _____________________________________ Locker #(s) ________________________________________________________________

Storage unit(s) owned _____________ leased _____________ assigned ______________

Condominium type: Conventional __________________________ Bare Land (creating a lot) _____________________________

Important Information (as per clause 9.1 of the Commercial Listing Contract):

q copy of registered condominium plan


q copy of the Condominium Corporation's current bylaws
q copy of the Condominium Corporation's current financial statement, most recent annual financial statement and annual report
q copy of current annual budget and condominium fee schedule
q copy of the minutes of the most recent general meeting of the Condominium Corporation
q condominium board of directors minutes for the past 12 months
q copy of any special resolution being circulated
q copy of the insurance certificate
q copy of any lease agreement or exclusive use agreement with respect to the possession of a portion of the Common Property, including a parking stall
or storage unit
q copy of any management agreement
q copy of any recreational agreement
q details of any structural deficiencies in the condominium complex
q the amount of the reserve fund
q copy of any reserve fund study
q copy of any reserve fund report
q copy of any reserve fund plan
q the particulars of any post tension cables that are located anywhere on or within the Property that is included in the condominium plan
q percentage of owner occupancy in the complex
q details of any additional fees or monies payable by a unit owner
q details of any contributions already levied but which will only become effective after the Completion Day
q details of any actions commenced against the Corporation
q details of any unsatisfied judgment or outstanding court order against the Corporation
q details of any written demand upon the Corporation for payment of an amount in excess of $5,000
q any other relevant details

This Important Information (referred to in the Purchase Contract as the “Documents”) will be required by the buyer as a condition of sale.

January 2004
FINANCING SCHEDULE
This Schedule is attached to and forms part of the Real Estate Purchase Contract # ______________________

1. ASSUMPTION OF MORTGAGE(S) 3. SELLER FINANCING


If the Buyer is to assume a mortgage(s), then the Seller warrants the
If the Seller is to provide financing to the Buyer, then the details are as
following to the Buyer:
follows:
l Name of lender __________________________________ _______
l Principal sum of $ ________________________________________
l Address of lender ________________________________________
l Subject to adjustments? q Yes q No
_______________________________________________________
l Approximate principal balance $ ____________________________ l Interest rate at ____________ percent, calculated ___________ not
in advance.
l Maturity date ____________________________________________
l Payments of $ ___________________________________________
l Interest rate ____________________________________________
l Payments to include taxes? q Yes q No
l Payments of $ __________________________________________
l Amortization of ________________________ years.
l Payments include taxes? q Yes q No
l Term of ________________________ year(s)/months commencing
l Approval to assume required? q Yes q No from the Completion Day.

l Other terms ____________________________________________ l Interest adjustment day ____________________________________


l Security (mortgage, general security agreement, assignment of rents,
______________________________________________________
etc.) ___________________________________________________
______________________________________________________
_______________________________________________________
l Assumed second or other mortgage details ___________________
_______________________________________________________
_______________________________________________________ _______________________________________________________
_______________________________________________________
l Prepayment? q Closed q Open
_______________________________________________________
_______________________________________________________ If open, what prepayment privileges? _________________________
_______________________________________________________
Where the covenant for payment in the mortgage(s) being assumed is
enforceable against the Seller, the Seller must approve any assignment of _______________________________________________________
this Contract by the Buyer.
_______________________________________________________
The Buyer will pay the costs to process and document any approvals to
assume a mortgage(s). l Assumable? q Yes q No

2. OTHER VALUE l Special conditions _______________________________________


The Buyer will provide the following to the Seller as part of the Purchase _______________________________________________________
Price: (Describe the value by detailed description, serial number, etc. - if
the Other Value is a mortgage, then use the same information/details as _______________________________________________________
under New Financing) _______________________________________________________
__________________________________________________________ _______________________________________________________
__________________________________________________________ _______________________________________________________
__________________________________________________________
_______________________________________________________
__________________________________________________________
__________________________________________________________
l The Buyer will pay for the reasonable costs to prepare the Seller
__________________________________________________________ Financing security.
__________________________________________________________
__________________________________________________________ l The Buyer will pay for registering the Seller Financing security.

The Buyer will pay for preparing and registering any security documents l Where there is Seller Financing, the Seller must approve any
regarding the Other Value. assignment of this Contract by the Buyer

_____________________________ __________________________________________________ ___________________________________________________


Date Seller’s Signature Buyer’s Signature
September 2002/January 2004
ADDENDUM ________ TO THE
COMMERCIAL REAL ESTATE AGREEMENT TO LEASE
This Addendum is attached to and forms part of the Commercial Real Estate Agreement to Lease # _____________________________
Between
and
THE LANDLORD THE TENANT

Name ________________________________________________________ Name _________________________________________________________

Name ________________________________________________________ Name _________________________________________________________

Municipal Address ________________________________________________________________________________________________________________


_________________________________________________________________________________________________________________________________
Legal Address: Plan ________________________________________________ Block ____________________ Lot/Unit ________________
Plan _____________________________________________________________ Block ____________________ Lot/Unit _________________
W. of (Meridian) Range Township Section Part Acres

________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

Note: This form must be signed by all parties to the Commercial Real Estate Agreement to Lease.

Signed at ___________________________________________ this ______________ day of ________________________________________, ____________.

_____________________________________________________________ _________________________________________________________________
Landlord Tenant

Per: _________________________________________________________ Per: _____________________________________________________________


Authorized Signing Officer(s) Authorized Signing Officer(s)

_____________________________________________________________ _________________________________________________________________
Landlord Tenant

Per: _________________________________________________________ Per: _____________________________________________________________


Authorized Signing Officer(s) Authorized Signing Officer(s)
January 2004
Agreement # _______________________

COMMERCIAL REAL ESTATE


AGREEMENT TO LEASE
This form was developed by the Alberta Real Estate Association for the use of its members and may not be altered electronically by any person.

PART A - OFFER TO LEASE


This Agreement is between

THE LANDLORD and THE TENANT


Name _________________________________________________________ Name _________________________________________________________

Name _________________________________________________________ Name _________________________________________________________

The Tenant offers to lease the space on the following terms and conditions:
1. THE LEASED SPACE
1.1 Municipal Address: ______________________________________________________________________________________________________

1.2 Legal Description: Plan ______________________________________________ Block ___________________ Lot/Unit _____________________


Plan _____________________________________________________________ Block ___________________ Lot/Unit _____________________

______________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________

W. of (Meridian) Range Township Section Part Acres

1.3 The Leased Space shall comprise an area of _________________________ square feet, more or less, such area is to be measured and determined
in accordance with the Landlord's standard form of lease (the “Lease") on the plan as outlined on the attached Schedule ________, being all or a
portion of the lands described in clauses 1.1 and 1.2.

2. TERM 4.2 The Tenant's proportionate share of Common Expenses (not including
the Tenant's direct costs) is currently estimated at
2.1 The Lease shall be for a term of __________________________ $_____________________ per square foot per annum or
years and _______________________ months commencing on the $__________________________ per month.

____________ day of _____________________________________, 4.3 Additional Rent Schedule attached? q Yes q No


____________ and terminating on the ________________ day of 5. GOODS AND SERVICES TAX (GST)
_________________________________________, ____________. 5.1 The Tenant shall pay GST on all Annual Basic Rent and Additional
Rent where applicable.
3. ANNUAL BASIC RENT 6. DEPOSITS
3.1 Annual Basic Rent shall be payable monthly, in advance, as follows: 6.1 The sum of $_____________________________________________,
(a) $ __________________________ per square foot of the area of including GST, is delivered in trust to _________________________
the Leased Space upon which Annual Basic Rent is payable in _______________________________________________________
accordance with the Lease, or as a Deposit to be applied, if the Tenant is not in default, toward the
first _________________ month(s) and last ________________
(b) $ __________________________ per annum, or month(s) rental or to be returned forthwith if this Offer is not accepted.
(c) according to Schedule _________ attached. 6.2 The Deposit will be deposited no later than the second Business Day
following the day that final signing occurred (as per clause 25.1).
4. ADDITIONAL RENT 6.3 The Deposits shall be held in trust for both the Landlord and the Tenant
4.1 Common Expenses shall be estimated by the Landlord from time to and shall be:
time and the Tenant shall pay its proportionate share of such Common (a) refunded forthwith to the Tenant if the Offer is not accepted, a
condition is not satisfied or waived (as per clause 12.5) or the
Expenses as Additional Rent monthly, in advance, on the first day of
Landlord fails to perform this Agreement, or
each month. Such proportionate share is to be determined in
(b) forfeited to the Landlord if the Offer is accepted and all conditions
accordance with the Lease. Common Expenses shall be adjusted by are satisfied or waived and the Tenant fails to perform this
the Landlord in accordance with the Lease. Agreement.
______________ Landlord’s Initials ______________ Tenant’s Initials
 January 2004 The Alberta Real Estate Association Page 1 of 4
Agreement # _______________________

6.4 If there is a dispute between the Landlord and the Tenant as to 10. SIGNAGE
entitlement to the Deposit, then:
10.1 The Tenant shall be permitted to install at its expense an identification
(a) the brokerage holding the Deposit shall review the
sign for the Leased Space subject to the Landlord's written approval as
circumstances, determine entitlement and pay the money to the
to design and location and in compliance with all municipal bylaws,
party who is entitled to the Deposit; regulations and codes.
(b) if no reasonable conclusion can be made in regard to (a) above,
the brokerage shall notify the parties to the Contract in writing and 11. USE OF LEASED SPACE
shall pay the money into a lawyer’s trust account;
(c) the parties agree to allow the lawyer and/or the brokerage to 11.1 The Leased Space shall only be used for ______________________
deduct from the Deposit a reasonable fee and costs incurred for _______________________________________________________
dealing with the Deposit;
_______________________________________________________
(d) a brokerage and/or lawyer acting in good faith under this clause
shall not be liable to either party for any damages associated with _______________________________________________________
the handling of the Deposit except arising from the negligence of _______________________________________________________
the brokerage or lawyer.
12. CONDITIONS
6.5 If the Tenant fails to execute the Lease presented by the Landlord or
fails to take possession of the Leased Space, the Deposits received
12.1 The Tenant's Conditions are ________________________________
shall be forfeited to the Landlord by way of partial payment of
liquidated damages and not as a penalty without prejudice to any other _______________________________________________________
rights of the Landlord, including the balance of damages payable to the _______________________________________________________
Landlord.
_______________________________________________________
6.6 If the Landlord fails to give possession as set out herein, the Tenant _______________________________________________________
shall cancel this Agreement, withdraw its Deposits and take such
remedies as the Tenant has at law. _______________________________________________________
_______________________________________________________
7. POSSESSION
_______________________________________________________
7.1 The Landlord agrees to give the Tenant access to and vacant
_______________________________________________________
possession of the Leased Space not later than 12 noon on the
______________ day of ___________________________________, _______________________________________________________
______________ subject to execution of the Lease, the Tenant's _______________________________________________________
placement of the insurance required by the Lease and the Tenant
transferring all applicable metered utilities for the Leased Space to the _______________________________________________________
Tenant's name. _______________________________________________________
8. CONDITION OF LEASED SPACE _______________________________________________________
8.1 The Tenant has inspected the Leased Space and agrees to accept the
Before 5 p.m. on _________________________________________
Leased Space in "as is" condition except for that work specifically set
(the "Condition Day").
forth in Schedule _________ which is the Landlord's responsibility.
8.2 The Tenant shall carry out all the work necessary to complete the 12.2 The Landlord's Conditions are: ______________________________
Leased Space, as set out in Schedule _________ attached.
8.3 The Tenant agrees to surrender the Leased Space at the end of the _______________________________________________________
Term in generally the same condition as the Leased Space was in at
the commencement of the Term, with the exception of reasonable wear _______________________________________________________
and tear, or as set out in Schedule __________ attached.
_______________________________________________________
8.4 Removal of tenant fixtures and leasehold improvements shall be
governed by the Lease. _______________________________________________________
8. PARKING
_______________________________________________________
9.1 The Landlord shall provide ____________ parking stall(s) for the use
of the Tenant for the Term. _______________________________________________________
9.2 The monthly charge for the parking stall(s) shall be: _______________________________________________________
(a) $ ________________ per stall per month, or
(b) $ ________________ per month at the commencement of the _______________________________________________________
Term subject to periodic adjustment at the Landlord's request
upon 30 days written notice to the Tenant, or Before 5 p.m. on _________________________________________
(c) included in the Annual Basic Rent. (the "Condition Day").
______________ Landlord’s Initials ______________ Tenant’s Initials
Page 2 of 4
Agreement # _______________________

12.3 The Landlord is given permission by the Tenant to obtain a credit report 16.6 Other: _________________________________________________
on the Tenant and any guarantors within three (3) days from
_______________________________________________________
acceptance of this Offer to Lease. The Landlord shall have the right to
terminate this Offer by notice in writing if this report is not acceptable _______________________________________________________
to the Landlord. _______________________________________________________
12.4 Unless otherwise agreed in writing, the Tenant's conditions are for the
sole benefit of the Tenant and the Landlord's conditions are for the sole _______________________________________________________
benefit of the Landlord. _______________________________________________________
12.5 The Tenant and the Landlord may waive/satisfy their conditions
unilaterally by giving a Notice to the other party (the "Notice") on or _______________________________________________________
before the stated Condition Day. _______________________________________________________
12.6 Provided that the party for whose benefit the condition is inserted uses
reasonable efforts to satisfy the Conditions, if a Notice has not been _______________________________________________________
given on or before the stated Condition Day, then this Agreement is
ended. 17. BINDING AGREEMENT
17.1 This Offer, when accepted, shall constitute a binding Offer to Lease.
13. THE LEASE 17.2 The Landlord and the Tenant each acknowledge that, except as
13.1 The Landlord will prepare a copy of the Lease to conform to the otherwise described in this Agreement, there are no other warranties,
representations or collateral agreements made by or with the other
provisions in this Agreement all within ten (10) days of unconditional party, the Landlord's brokerage and the Tenant’s brokerage about the
acceptance of this Agreement. property, any neighbouring lands, and this transaction, including any
13.2 The Tenant shall execute the Lease within ten (10) days of being warranty, representation or collateral agreement relating to the
presented with the document. The provisions of this Agreement shall size/measurements of the land and buildings or the existence or non-
survive the execution of the Lease. existence of any environmental condition or problem.
13.3 The Landlord and the Tenant acknowledge and agree that in the event 18. ENVIRONMENTAL HAZARDS
of any conflict between the terms of this Agreement and the Lease, the 18.1 The Landlord is responsible for pre-existing environmental hazards on
terms of this Agreement shall govern. the Leased Space, if any, at the time the Tenant takes possession.
14. ASSIGNMENT AND SUBLEASE 18.2 The Tenant is responsible for environmental hazards that result from its
subsequent use and occupancy of the Leased Space and indemnifies
14.1 The Tenant shall have the right to assign the Lease and sublet and/or the Landlord with respect thereto.
change the use of the Leased Space with the written consent of the 19. SECURITY FOR THE LANDLORD’S BROKERAGE’S FEES
Landlord, such consent not to be unreasonably withheld.
19.1 The Landlord does hereby irrevocably assign to the Landlord's
14.2 Any assignment or subletting by the Tenant will not relieve the Tenant brokerage enough of the Deposits to pay all sums due and owing to the
of liability under the Lease. Landlord's brokerage, and agrees to pay any unpaid balance of the
Commission to the Landlord's brokerage.
15. RENEWAL
20. ADVICE
15.1 If the Tenant is not in default of any of the terms and conditions of the
Lease, the Tenant shall have the right, upon written notice delivered to 20.1 This Agreement is intended to create binding legal obligations.
the Landlord not later than six (6) months prior to the end of the Term, The Landlord and the Tenant should read this Agreement
carefully and are encouraged to obtain legal advice before
to renew the Lease for a further _______________ ( ) year term signing.
on the same terms and conditions save and except for: 20.2 This Agreement may be signed and sent by fax and this
(a) this option to renew; procedure will be as effective as signing and delivering an
(b) Landlord's work responsibilities; original copy.
20.3 Unless there is a dual agency or another written agreement, the
(c) free rent; Landlord's brokerage represents the Landlord as Landlord's
(d) Tenant inducements; Agent and does not have a fiduciary relationship with the Tenant,
(e) Annual Basic Rent, which will be determined by agreement and the Tenant's brokerage represents the Tenant as Tenant's
between the Landlord and Tenant or, in default of agreement, by Agent and does not have a fiduciary relationship with the
Landlord.
arbitration according to the Arbitration Act (Alberta).
20.4 The Landlord and Tenant agree that the Lease and other related
16. ADDITIONAL TERMS information regarding this transaction may be retained and
disclosed by the brokerage and/or the real estate board(s) as
16.1 All time periods, deadlines and dates in this Agreement will be strictly
required for closing and for reporting, appraisal and statistical
followed and enforced. All times will be Alberta time unless otherwise purposes.
stated.
16.2 This Agreement is for the benefit of and will be binding upon the heirs, 21. DEFINITIONS
executors, administrators and assigns of the individual parties and the 21.1 In this Agreement:
successors and assigns of corporate parties. (a) Business Day means a day when both the Land Titles Office and
16.3 All changes of number and gender shall be implied. the Schedule I chartered banks are open for business.
16.4 Capitalized words used in the headings, where applicable, shall define (b) Landlord's Agent means the licensed brokerage (including its
the terms used in this Agreement. broker, all associate brokers and agents) who represents the
Landlord.
16.5 This Agreement will be governed by the laws of the Province of Alberta. (c) Tenant's Agent means the licensed brokerage (including its
The parties submit to the jurisdiction of the Courts in the Province of broker, all associate brokers and agents) who represents the
Alberta in any dispute that may arise out of this transaction. Tenant.
______________ Landlord’s Initials ______________ Tenant’s Initials
Page 3 of 4
Agreement # _______________________

22. REPRESENTATIVES/NOTICE PART B - ACCEPTANCE


Note: This section must be completed at the Offer stage prior to the 24. ACCEPTANCE
Contract being signed.
24.1 The Landlord accepts the Tenant’s offer and agrees to lease the Space
22.1 The Representatives identified in clause 22.2 represent the Landlord
according to the terms of the Agreement.
and the Tenant.
22.2 For the purposes of giving and receiving any notice referred to in this SIGNED AND DATED at _____________________, Alberta at _______.m.
Agreement, and for acceptance of an offer to lease, communication on the _________ day of ______________________________, ________.
must be in writing and must be delivered to the address or faxed to the
number described below. LANDLORD (CORPORATE NAME)
A notice sent or received by a Representative is proper notice for
the purposes of this Agreement. __________________________________________________________________

Landlord's Representative: Per: _____________________________________ _______________________


Authorized Signing Officer(s) Witness
______________________________________________________________
Broker, associate broker or agent registered to the brokerage _________________________________________ _______________________
Print Name of Authorized Signing Officer(s) Print Name of Witness
Brokerage Name ________________________________________________
Per: ______________________________________ _______________________
Brokerage Address ______________________________________________ Authorized Signing Officer(s) Witness

______________________________________________________________ _________________________________________ _______________________


(postal code) Print Name of Authorized Signing Officer(s) Print Name of Witness
Phone___________________________ Fax __________________________
Landlord’s GST # _____________________________________________________

Tenant's Representative: 25. FINAL SIGNING


______________________________________________________________ 25.1 Final signing of this Agreement occurred at _____________ .m. on
Broker, associate broker or agent registered to the brokerage ___________________________________________, ___________.
Brokerage Name ________________________________________________ Initials of the person(s) who signed last ____________________
Brokerage Address ______________________________________________
COMMISSION AGREEMENT
(to be completed if there is no listing agreement)
______________________________________________________________
(postal code) This Agreement is between the Tenant’s Brokerage (the "Brokerage") and the
Phone ___________________________ Fax _________________________ Landlord.
In consideration of the Brokerage being the effective cause of sale, the Landlord
23. OFFER agrees that if there is no written Listing to Lease Agreement, this shall be regarded
as a Commission Agreement between the Landlord and the Brokerage. The
23.1 The Tenant offers to lease the space according to the terms of this Landlord hereby agrees to pay a commission to the Brokerage in consideration of
Agreement. its services, according to the Real Estate Act (Alberta) upon the Lease being signed
or the Tenant being given possession of the Leased Space by the Landlord,
23.2 This Offer / counter offer shall be open for acceptance in writing until whichever event first occurs. The commission shall be calculated as follows:
_____.m. on ____________________________________, ________. __________________________________________________________________
__________________________________________________________________
SIGNED AND DATED at _________________, Alberta at _______ .m. on ___________________________________________________ plus the applicable
GST. This earned commission shall constitute a charge on this property and gives
________________________________________________, __________. _________________________________________ (the Brokerage) the right to file
a caveat as security for the payment of the commission. The Landlord authorizes
TENANT (CORPORATE NAME) the Brokerage to deduct this commission payable from the Deposit, and agrees to
pay any unpaid balance of the leasing commission to the Brokerage.
__________________________________________________________________ In the event that the Tenant fails to complete this transaction, and forfeits any
Deposits, 50% of such Deposits shall be payable to the Brokerage as alternate
compensation. The amount of the alternate compensation shall not exceed the total
_________________________________________ _______________________
leasing commission that would have been payable on completion of this Agreement.
Authorized Signing Officer(s) Witness
In the event the Offer is accepted and the Landlord fails to complete the Lease, the
commission shall be payable as if the Lease had been completed and shall be due
_________________________________________ _______________________ on the date for Possession, as agreed to in the Offer to Lease.
Print Name of Authorized Signing Officer(s) Print Name of Witness
______________________________________________________________________
Signature of broker, associate broker, or agent authorized to sign on behalf of the
_________________________________________ _______________________ Brokerage
Authorized Signing Officer(s) Witness
______________________________________________________________________
Landlord (Corporate Name)
_________________________________________ _______________________
Print Name of Authorized Signing Officer(s) Print Name of Witness _____________________________________ ______________________________
Authorized Signing Officer(s) Witness
_____________________________________ ______________________________
Authorized Signing Officer(s) Witness
Tenant’s GST # _______________________________________________________

Page 4 of 4
# ____________________
Listing Contract Number
COMMERCIAL REAL ESTATE
LISTING CONTRACT
This form was developed by the Alberta Real Estate Association
for the use of its members and may not be altered electronically by any person.

This Contract is between


THE SELLER (“You”) and THE SELLER’S BROKERAGE (the “Brokerage”)
Name _____________________________________________________________ Brokerage Name ____________________________________________________

Name _____________________________________________________________ ______________________________________ Email ______________________

Address ___________________________________________________________ Address ___________________________________________________________


(postal code)
__________________________________________________________________ Phone _________________________________ Fax _______________________
(postal code)
___________________________________________________________________
Phone _____________________________ Fax _________________________ Broker, associate broker or agent authorized to represent the Brokerage
Email _____________________________________________________________ Member of the ____________________________ Real Estate Board (the “Board”)
1. THE PROPERTY
1.1 The Property is the Land, Buildings, Attached Goods (unless excluded) and included Unattached Goods located at (municipal street address): __________
____________________________________________________________________________________________________________________________
1.2 The legal description of the Property is: (postal code)

Plan _____________________________________________ Block ____________________ Lot/Unit ____________________ Acres _______________


Plan _____________________________________________ Block ____________________ Lot/Unit ____________________ Acres _______________
W. of (Meridian) Range Township Section Part Acres

If Condominium Property, legal description and details as per Commercial Condominium Property Appendix (attached).
1.3 The Property includes:
(a) All goods attached to the Land and Buildings ("Attached Goods"), except those goods listed here or in the Appendix attached to this Contract: _____
________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________
(b) Goods not attached to the Land and Buildings ("Unattached Goods") as listed here or in the Appendix attached to this Contract: _________________
________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________

2. OTHER LISTING CONTRACTS 6. REAL ESTATE COMMISSION


2.1 Have you entered into any other listing contract 6.1 The Real Estate Commission (the “Commission”) is ________________
for the Property during the last twelve months? q Yes q No __________________________________________________________
2.2 Is the Property currently listed for sale with __________________________________________________ plus GST.
another real estate brokerage? q Yes q No 6.2 The Brokerage will offer ______________________________________
3. TERM OF CONTRACT __________________________________________________, plus GST,
as compensation to other brokerages for finding a buyer.
3.1 You list the Property for sale with only the Brokerage(s) effective today until
7. DEPOSITS
11:59 p.m. on _______________________________________________
____________________________________________ (the Expiry Date). 7.1 All Deposits will be held in accordance with the terms of the signed
Purchase Contract. The Deposits must be held in trust according to the
4. ASKING PRICE Real Estate Act (Alberta).
7.2 You direct the Brokerage, the buyer’s brokerage or the lawyer who holds
4.1 The Asking Price for the Property, not including GST, is $ ___________
the Deposits to use the Deposits to pay any money owed under this
__________________________________________________________ Contract. Any Commission or Alternate Compensation, plus GST, that has
been earned by another brokerage and is no longer required to be held in
__________________________________________________________ trust shall be paid directly out of a trust account by the party holding the
4.2 Where applicable, GST shall be the responsibility of the buyer. Deposits.
5. POSSESSION DATE 7.3 You assign to the Brokerage enough of the purchase money or forfeited
Deposits to pay all money owed under this Contract. You agree not to
5.1 The proposed Possession Date is _______________________________ revoke this assignment.
7.4 You direct your lawyer to pay all money owed under this Contract from the
__________________________________________________________ purchase money or the forfeited Deposits held by your lawyer.
______________ Seller’s Initials ______________ Brokerage Representative’s Initials
 January 2004 The Alberta Real Estate Association Page 1 of 3
# ____________________
Listing Contract Number
8. THE BROKERAGE’S AUTHORITY
8.1 You authorize the Brokerage to obtain the following information: 10.4 If the Brokerage pays for the Important Information, you will repay the
l current property tax summary and related information Brokerage promptly upon demand.
l search of title
10.5 In addition, you will pay GST, where applicable, to the Brokerage on the
l condominium additional plan sheet, if condominium property Commission or on any Alternate Compensation due under this Contract.
l if the Property is encumbered by a mortgage or agreement for sale
that is assumable, copies of the documents and a Mortgage 10.6 You will make your best efforts to insure the Property and its contents
Verification Statement against loss or damage due to perils that are normally insured against for
8.2 Do you authorize the Brokerage to install and use similar properties. This insurance will be effective even when the Property
is vacant.
a key box? q Yes q No
8.3 Do you authorize the Brokerage to install 10.7 You will make reasonable efforts to cooperate with the Brokerage and any
“FOR SALE” and “SOLD” signs? q Yes q No other brokerages.
8.4 Unless otherwise agreed in writing, only the Brokerage may advertise the
Property for sale. 10.8 You will immediately inform the Brokerage of any relevant changes
respecting the Property or its ownership that may occur after this Contract
9. IMPORTANT INFORMATION is signed.
9.1 You will provide the following Important Information to the Brokerage
promptly and at your expense: 11. DUTIES OF THE BROKERAGE
l a real property report, if applicable, reflecting the current state of
improvements on the Property, according to the Alberta Land 11.1 The Brokerage:
Surveyors’ Manual of Standard Practice, with evidence of municipal
compliance or non-conformance. l will make reasonable efforts to find a buyer for the Property.
l if the Property is a resale condominium, the Important Information as l will market the Property through the listing service operated by the
described in the Commercial Condominium Property Appendix Board.
(attached). l will not discourage any person who is an industry member as defined
l all other applicable property information that is reasonably required to in the Real Estate Act (Alberta) and who is not a member of the
develop particulars of sale, including but not limited to, financial Board from attempting to sell the Property, unless you otherwise
information such as annual property operating data (APOD), tenant instruct the Brokerage in writing.
schedules and leases, service and supply contracts, engineering
reports, environmental assessment reports, building plans and l will pay any Commission, Alternate Compensation and GST that are
specifications. payable to another brokerage.
9.2 You hereby authorize the Brokerage to obtain the 12. SECURITY FOR THE BROKERAGE’S FEES
Important Information as required by 9.1 on your
behalf and at your expense. q Yes q No 12.1 You now encumber all of your interest in the Land, Buildings and Attached
Seller’s Initials ____________________ Goods for the benefit of the Brokerage to secure payment of all money
which may be owed by you to the Brokerage under this Contract. The
9.3 Are you aware of any defects in the Property that parties agree that the Brokerage is entitled to encumber the Land in
are not visible and are either structural in nature accordance with the Land Titles Act (Alberta). You now authorize the
or a possible health hazard? q Yes q No Brokerage to file and maintain a caveat to give notice of this
encumbrance.
Seller’s Initials ___________________
10. DUTIES OF THE SELLER 12.2 If the Brokerage successfully enforces any of its rights or remedies under
this section, you will pay reasonable lawyer and client legal fees and costs
10.1 You will pay the Commission to the Brokerage if, during the Term of this incurred by the Brokerage.
Contract:
(a) the Property is sold, exchanged or otherwise disposed of by you or 12.3 If you owe money under this Contract and the Brokerage does not wish to
anyone else; enforce this Contract against you, then upon mutual agreement between
the Brokerage and the buyer’s brokerage, the Brokerage may assign this
(b) a person contacts you directly or through a brokerage or inspects the Contract to the buyer’s brokerage. If this Contract is assigned, then the
Property and the Property is then sold, exchanged or otherwise buyer’s brokerage may enforce this Contract against you to collect the
disposed of by you or anyone else to that person within six (6)
months after the Expiry Date. This clause will not apply where you portion of the Commission or Alternate Compensation, plus GST, to which
have signed another listing contract after the Expiry Date and a real the buyer’s brokerage is entitled, and the buyer’s brokerage will have the
estate commission is payable to another brokerage according to the same rights and security given to the Brokerage according to Section 12
terms of that other listing contract as a result of the sale or of this Contract.
disposition;
(c) you have signed a Purchase Contract with a buyer who is willing and 13. SELLER’S WARRANTIES
able to complete the sale but you refuse to complete the sale; or
13.1 You warrant the following:
(d) a buyer is found who is willing and able to complete the sale upon the
conditions outlined in this Contract but you refuse to sign the l You have the legal authority to sell the Property.
Purchase Contract.
l The Attached Goods and included Unattached Goods are free and
10.2 You will pay the Commission to the Brokerage no later than the second
clear of any financial encumbrances except as follows:
business day after the sale is completed, unless you and the Brokerage
otherwise agree in writing. A sale is completed when the change in
ownership is registered at the Land Titles Office and the buyer pays the ______________________________________________________
purchase money to you or your lawyer. Any holdbacks or conditions
______________________________________________________
accepted by you or your lawyer will not delay payment to the Brokerage.
10.3 You will pay Alternate Compensation to the Brokerage if a Purchase ______________________________________________________
Contract is signed but the buyer defaults and the Deposits are forfeited.
This Alternate Compensation will be the lesser of the Commission that ______________________________________________________
would have been payable had the sale been completed or 50% of the
forfeited Deposits. Alternate Compensation shall be payable upon the l Where applicable, you have complied with the bylaws of the
forfeiture of the Deposits. Condominium Corporation.

______________ Seller’s Initials ______________ Brokerage Representative’s Initials


Page 2 of 3
# ____________________
Listing Contract Number
13.2 You warrant that, to the best of your knowledge, the following is (b) market the Property, at its option, in any medium, including
truthful and accurate: electronic media;
l You have disclosed all information necessary to truthfully and (c) compile, retain and publish any statistics including historical
accurately market the Property, including any environmental MLS®/CLSTM data which may be used by licensed board
problems. members to conduct comparative market analysis; and
l The current use of the Land complies with the existing municipal land (d) make such other use of the information as the Board deems
use bylaw. appropriate in connection with the listing, marketing and selling
l The Buildings and other improvements on the Land are not placed of real estate.
partly or wholly on any easement or utility right-of-way and are
entirely on the Land and do not encroach upon neighbouring lands, 17. AGENCY DISCLOSURE/ACKNOWLEDGMENT
except where an encroachment agreement is in place. 17.1 You, the Seller, have entered into an agency relationship under common
l The location of Buildings and other improvements on the Land law with the Brokerage, including its broker, all its associate brokers and
complies with all relevant municipal bylaws, regulations or agents (collectively referred to as the Seller’s Agent). A brokerage, its
relaxations granted by the appropriate municipality prior to broker, associate brokers and agents representing a buyer are referred to
Completion Day, or the Buildings and other improvements on the as the Buyer’s Agent.
Land are “non-conforming buildings” as that term is defined in the 17.2 The Seller’s Agent is obligated to protect and promote your interests.
Municipal Government Act (Alberta). Specifically, the Seller’s Agent owes you the fiduciary duties of loyalty,
l If the Property includes a condominium unit, then the warranties obedience, confidentiality, reasonable care and skill, full disclosure and full
extend to and include the common property. accounting.
14. ENDING THE CONTRACT 17.3 You, as the Seller, and potential buyers may be represented by different
brokerages (the Seller’s Agent and the Buyer’s Agent). Each of these
14.1 This Contract will automatically end if the Brokerage: Agents owes its client the full fiduciary duties listed above. Other
l has had its licence to trade in real estate suspended or cancelled brokerages representing buyers will not have a fiduciary relationship with
under the Real Estate Act (Alberta). you.
l ceases to be a member in good standing of a real estate board. 17.4 Dual Agency occurs when one brokerage (the Dual Agent), trading in real
estate from one or more locations, represents both you and one or more
l is bankrupt, insolvent, or in receivership.
buyers with respect to the potential purchase of the Property. In such
14.2 Where a party to this Contract has breached a part of this Contract, the circumstances, the described fiduciary duties are limited as follows:
other party may end this Contract by notice in writing to the party in breach. The Dual Agent:
14.3 You and the Brokerage may enforce parts of this Contract even if this (a) will not, without prior written authority, disclose:
Contract has ended or expired. (i) to a buyer that you will accept a price less than the asking price
15. ADDITIONAL TERMS (or a countered selling price),
(ii) to you that a buyer will pay a price higher than the price offered,
15.1 This Contract is for the benefit of and will be binding upon the heirs, (iii) to a buyer the reason that you are selling,
administrators, executors, successors and assigns of the parties.
(iv) to you the reason that a buyer is buying, and
15.2 All changes of number and gender will be made where required.
(v) to a buyer the terms and conditions of competing offers;
15.3 This Contract is a Seller’s Brokerage Agreement for the purposes of the (b) except as set out in (a), will owe no duty of confidentiality and will
Real Estate Act (Alberta). disclose to you and a buyer all facts known that materially affect or
15.4 This Contract will be governed by the laws of the Province of Alberta. The may materially affect the marketability or value of the Property.
parties submit to the jurisdiction of the Courts in the Province of Alberta in 17.5 The Seller authorizes the Seller’s Agent to act as a Dual Agent
any dispute that may arise out of this transaction. according to the terms of this section.
16. ADVICE
18. SIGNATURES
16.1 This Contract creates binding legal obligations. You are encouraged 18.1 This Contract may be signed by the parties and transmitted by fax. This
to obtain legal advice before signing. procedure will be as effective as if the parties had signed and delivered an
16.2 The Seller acknowledges that the Brokerage is being retained as a original copy.
real estate broker, not as a lawyer, tax advisor, lender, appraiser,
surveyor, structural engineer, property inspector, or other This Contract is made effective_____________________________________
professional service provider. _______________________________________________, ______________.
16.3 The Seller consents to the collection, use and disclosure of personal
information by the Brokerage for the purpose of listing and marketing ______________________________________________________________
the Property including, but not limited to: Name of Owner Registered on Title
(a) listing and advertising the Property in any medium including _______________________________________ _________________________________
electronic media, photographs and video; Authorized Signing Officer(s) Witness
(b) disclosing Property information to prospective buyers, brokers,
agents and others; _______________________________________ _________________________________
Print Name of Authorized Signing Officer(s) Print Name of Witness
(c) such other use of the Seller's personal information as is
consistent with listing and marketing of the Property. _______________________________________ _________________________________
16.4 The Seller consents to placement of the listing information and any Authorized Signing Officer(s) Witness
sale information by the Brokerage into the database(s) of the
appropriate MLS®/CLS™ system(s) and acknowledges that the _______________________________________ _________________________________
MLS®/CLS™ database is the property of the Board(s) and can, during Print Name of Authorized Signing Officer(s) Print Name of Witness
or after the termination or expiry of this listing, be licensed, resold or
otherwise dealt with by the Board(s). The Seller further acknowledges ___________________________________________________________________________
that the Board(s) may: Signature of broker, associate broker or agent authorized to sign on behalf of the Brokerage

(a) distribute the information to any persons authorized to use such


service which may include other brokers, government Seller: Initial here to show you have
departments, appraisers, municipal organizations and others; received a copy of this Contract. ________________________________

Page 3 of 3
APPENDIX TO THE
COMMERCIAL REAL ESTATE LISTING CONTRACT
This Appendix is attached to and forms part of the Commercial Real Estate Listing Contract # _________________________________

Between
THE SELLER and THE SELLER’S BROKERAGE (the “Brokerage”)

Name _____________________________________________________________ Brokerage Name _____________________________________________________

Name _____________________________________________________________ ___________________________________________________________________


Broker, associate broker or agent authorized to represent the Brokerage

With respect to the Property described as:


Municipal Address __________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________________
(postal code)
Legal Address: Plan ________________________________________________________ Block __________________________ Lot/Unit ________________________
Plan _____________________________________________________________________ Block __________________________ Lot/Unit ________________________
W. of (Meridian) Range Township Section Part Acres

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________________________________

Note: This form must be initialled by all parties to the Commercial Real Estate Listing Contract.

___________________________________________________________________
Date
___________________________________________________________________ ________________________________________________________________________
Name of Owner(s) Registered on Title Signature of broker, associate broker or agent authorized to sign on behalf of the
Brokerage

___________________________________________________________________ ________________________________________________________________________
Authorized Signing Officer(s) Witness

___________________________________________________________________ ________________________________________________________________________
Authorized Signing Officer(s) Witness
January 2004
NOTICE
As per the Commercial Real Estate Agreement to Lease
Notice to:
_________________________________________________________________________________________________________________________________
Landlord/Tenant of the Property
Municipal Address ________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

Legal Address: Plan __________________________________________________ Block ___________________ Lot/Unit ________________

1. I am the Landlord/Tenant of the Property in the Commercial Real Estate Agreement to Lease # _____________________________________
The conditions(s) in that Agreement that I now unilaterally waive or have satisfied is (are):
__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

2. All other provisions in the Agreement remain in full force and effect.
3. In this Notice, the singular shall be constituted as the plural where the context so requires.
4. This Notice shall enure to the benefit and be binding upon my heirs, executors, administrators, successors and assigns.
5. As per the Commercial Real Estate Agreement to Lease, if a Notice has not been given to the other party before 5 p.m. on or
before the stated Condition Day, then the transaction is ended.

SIGNED in the presence of a witness, and DATED at ____________________________________________________________, Alberta at ________________

a.m./p.m. this ___________________ day of ________________________________________________________________________, ___________________.

________________________________________________________
Landlord/Tenant

Per: ____________________________________________________ _____________________________________________________________________


Authorized Signing Officer(s) Witness

________________________________________________________
Landlord/Tenant

Per: ____________________________________________________ _____________________________________________________________________


Authorized Signing Officer(s) Witness
January 2004
REAL ESTATE LISTING CONTRACT
TERMINATION AGREEMENT

MLS# _______________________________________ Real Estate Listing Contract # ____________________________

Between

THE SELLER and THE BROKERAGE (the “Brokerage”)

Name _________________________________________________________ Brokerage Name ________________________________________________

Name _________________________________________________________ ______________________________________________________________


Broker, associate broker or agent authorized to represent the Brokerage

The parties wish to terminate the Listing Contract.

The Brokerage hereby agrees to terminate the Listing Contract on the Property at __________________________________________________
____________________________________________________________________________________________________________________
which was dated ______________________________________________________________________________, ______________________.

q Option A: To be used where it is not intended to relist the Property for sale.
The Seller agrees with the Brokerage that:

1. It shall not sell, exchange and/or lease, or accept an offer for the sale, exchange and/or lease of the said Property during the
term of 90 days from the date of this Termination Agreement.
2. In the event that the Seller breaches any of the terms of this Termination Agreement, the Seller shall immediately pay to the
Brokerage as liquidated damages a sum equal to the Real Estate Commission as set out in the said Listing Contract.

This clause replaces the provisions of 10.1 in the Real Estate Listing Contract.

q Option B: To be used where the Property is meant to be relisted by another brokerage.


Commission entitlement will continue as per the provisions of clause 10.1 of the Real Estate Listing Contract.

q Option C: To be used where the parties want to sever their relationship with no ongoing obligations.

Additional terms: ______________________________________________________________________________________________________

____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________

DATED this ____________________________day of ______________________________________________________________________, ______________

_______________________________________________________ ______________________________________________________________________
Seller Witness

_______________________________________________________ ______________________________________________________________________
Seller Witness

__________________________________________________ _______________________________________________________________
Seller acknowledges receiving a copy of this Agreement Approved and accepted by Seller’s Broker/Manager
January 2004
Agreement # _______________________

COMMERCIAL REAL ESTATE


LISTING TO LEASE AGREEMENT
This form was developed by the Alberta Real Estate Association
for the use of its members and may not be altered electronically by any person.

This Agreement is between

THE LANDLORD (“You”) and THE LANDLORD’S BROKERAGE (the “Brokerage”)

Name _____________________________________________________________ Brokerage Name ____________________________________________________


Name _____________________________________________________________ ___________________________________ Email ________________________

Address ___________________________________________________________ Address ___________________________________________________________


(postal code)
__________________________________________________________________ Phone _____________________________ Fax _________________________
(postal code)
__________________________________________________________________
Phone _____________________________ Fax _________________________ Broker, associate broker or agent authorized to represent the Brokerage
Email _____________________________________________________________ Member of the ____________________________ Real Estate Board (the “Board”)
1. THE PROPERTY 3. TERM OF AGREEMENT
1.1 The Property is the Land, Buildings and Attached Goods (unless 3.1 You list the Space for lease with only the Brokerage(s) effective today
excluded) located at (municipal street address): ________________ until 11:59 p.m. on _______________________________________
_______________________________________________________ ________________________________________ (the “Expiry Date”).
_______________________________________________________
4. ASKING PRICE
_______________________________________________________
(postal code) 4.1 The Annual Basic Rent is $ _________________________________
1.2 The legal description of the Property is: _______ sq.ft./yr, or $ ____________________________/month plus
Plan __________________________________________________ GST, or as set out in the attached Appendix. In addition to the Annual
Basic Rent, Additional Rent is payable according to the division of
Block _____________________ Lot/Unit _____________________
expenses (including GST) as set out in the attached Appendix .
Plan __________________________________________________
4.2 Where applicable, GST shall be the responsibility of the tenant.
Block ____________________ Lot/Unit _____________________
4.3 A Lease Term of ___________________________________ months
W. of Range Township Section Part Acres is preferred.
Options to extend or renew the Lease will be
considered. q Yes q No
5. POSSESSION DATE
1.3 The Space available for lease (the “Leased Space”) shall comprise an
5.1 The proposed Possession Date is ____________________________
area of _____________________ square feet more or less and is
described below or is set out in the Appendix attached to this ________________________________________________________
Agreement. _______________________________________________________
_______________________________________________________ 6. LEASING COMMISSION
_______________________________________________________ 6.1 The Leasing Commission (the “Commission”) is _______________%
_______________________________________________________ of the (net, gross) rental value payable by the tenant during the first
_______________________________________________________ _______________ years or any lesser term and _____________% of
the (net, gross) rental value payable for any period beyond
_______________________________________________________
____________ years. In any event, it is agreed that the minimum
_______________________________________________________ Commission shall not be less than $________________________. In
_______________________________________________________ the event any lease renewal or extension is negotiated, then an
_______________________________________________________ additional Commission is payable at a rate of ______________% of
the (net, gross) rental payable for the first ______________ years or
_______________________________________________________
any lesser term of such renewal or extension, and ____________% of
_______________________________________________________ the (net, gross) rental payable for any period beyond ____________
_______________________________________________________ years.
OR
2. OTHER LISTING AGREEMENTS
Other Commission or fee arrangements as per attached Appendix.
2.1 Have you entered into any other listing agreement
to lease the Space during the last twelve months? q Yes q No 6.2 The Brokerage will offer ___________________________________
2.2 Is the Space currently listed for lease with _______________________________________________________
another real estate brokerage? q Yes q No plus GST, as compensation to other brokerages for finding a tenant.
______________ Landlord’s Initials ______________ Brokerage Representative’s Initials
 January 2004 The Alberta Real Estate Association Page 1 of 3
Agreement # _______________________

7. DEPOSITS (c) you have signed a Lease Agreement with a tenant who is willing
and able to complete the lease but you refuse to complete the
7.1 All Deposits will be held in accordance with the terms of the signed lease or permit occupancy; or
Lease Agreement. The Deposits must be held in trust according to the (d) a tenant is found who is willing and able to complete the lease
Real Estate Act (Alberta). upon the terms outlined in this Agreement but you refuse to sign
7.2 You direct the Brokerage, the tenant’s brokerage or the lawyer who the Lease Agreement.
holds the Deposits to use the Deposits to pay any money owed under 10.2 You will pay the Commission to the Brokerage no later than the second
this Agreement. Any Commission or Alternate Compensation, plus business day after the Lease is signed, or the tenant is given
GST, that has been earned by another brokerage and is no longer possession by the Landlord, whichever event first occurs. The Deposit
required to be held in trust shall be paid directly out of a trust account money shall apply firstly to pay the Commission. The Landlord
authorizes the Brokerage to deduct the Commission (including GST)
by the party holding the Deposits. payable from the Deposit, and agrees to pay any unpaid balance.
7.3 You assign to the Brokerage enough of the lease money or forfeited Payment of Commissions on renewals shall be upon written
Deposits to pay all money owed under this Agreement. You agree not agreement being signed confirming the rental and the term of the
to revoke this assignment. renewal. In the event the tenant holds over without a former renewal or
extension agreement in place, the Commission shall be paid monthly
7.4 You direct your lawyer to pay all money owed under this Agreement as the rents are collected.
from the lease money or the forfeited Deposits held by your lawyer.
10.3 You will pay Alternate Compensation to the Brokerage if a Lease
8. THE BROKERAGE’S AUTHORITY Agreement is signed but a tenant defaults and the Deposits are
forfeited. This Alternate Compensation will be the lesser of the
8.1 You authorize the Brokerage to obtain a search of title to confirm the Commission that would have been payable had the sale been
proper legal description and your legal authority to lease, including completed or 50% of the forfeited Deposits. Alternate Compensation
restrictive covenants affecting the use and occupancy of the Leased shall be payable upon the forfeiture of the Deposits.
Space. 10.4 You will pay GST to the Brokerage on the Commission or any Alternate
8.2 Do you authorize the Brokerage to install Compensation due under this Agreement.
“FOR LEASE” and “LEASED” signs? q Yes q No 10.5 You will make reasonable efforts to cooperate with the Brokerage and
any other brokerages.
8.3 Unless otherwise agreed in writing, only the Brokerage may advertise 10.6 You will immediately inform the Brokerage of any relevant changes
the Space for lease. respecting the Leased Space or its ownership that may occur after this
9. IMPORTANT INFORMATION Agreement is signed.
9.1 You will provide the following Important Information that may 11. DUTIES OF THE BROKERAGE
reasonably be required to the Brokerage, promptly and at your
expense: 11.1 The Brokerage:
l plans and specifications as may be available to properly describe l will make reasonable efforts to find a tenant for the Leased
the Leased Space including the rentable floor area in sq. ft. or sq. Space.
meters and the standard of floor measurements used (e.g. 1990
l will market the Leased Space through the listing service operated
BOMA standards, 1996 BOMA standards).
by the Board.
l a schedule of the divisions of costs between Landlord and tenant l will not discourage any person who is an industry member as
including an estimate of the expenses that the tenant may defined in the Real Estate Act (Alberta) and who is not a member
reasonably expect as Additional Rent for the first year of the of the Board from attempting to lease the space, unless you
Term.
otherwise instruct the Brokerage in writing.
l where expenses are prorated, the percentage of costs that l will pay any Commission, Alternate Compensation and GST that
accrue to the area(s) available for lease. are payable to another brokerage.
l a draft or sample of the Landlord's Standard Lease Form (the
“Lease"). 12. SECURITY FOR THE BROKERAGE’S FEES
l a schedule of improvements that the Landlord will undertake at 12.1 You now encumber all of your interest in the Land, Buildings and
the Landlord's expense. Goods attached to the Land and Buildings for the benefit of the
l rules and regulations that may apply to the tenant's use and Brokerage to secure payment of all money which may be owed by you
occupancy of the Leased Space. to the Brokerage under this Agreement. The parties agree that the
Brokerage is entitled to encumber the Land in accordance with the
l any special or unusual lease terms or conditions that may apply Land Titles Act (Alberta). You now authorize the Brokerage to file and
to the tenancy. maintain a caveat to give notice of this encumbrance.
12.2 If the Brokerage successfully enforces any of its rights or remedies
10. DUTIES OF THE LANDLORD
under this section, you will pay reasonable lawyer and client legal fees
10.1 You will pay the Commission to the Brokerage if, during the Term of and costs incurred by the Brokerage.
this Agreement: 12.3 If you owe money under this Agreement and the Brokerage does not
(a) any portion of the Property is leased by you or anyone else; wish to enforce this Agreement against you, then upon mutual
agreement between the Brokerage and the tenant’s brokerage, the
(b) a person contacts you directly or through a brokerage or inspects Brokerage may assign this Agreement to the tenant’s brokerage. If this
the Leased Space and the Space is then leased by you or anyone Agreement is assigned, then the tenant’s brokerage may then enforce
else to that person within six (6) months after the Expiry Date. this Agreement against you to collect the portion of the Commission or
This clause will not apply where you have signed another leasing Alternate Compensation, plus GST, to which the tenant’s brokerage is
agreement after the Expiry Date and a leasing commission is entitled, and the tenant’s brokerage will have the same rights and
payable to another brokerage according to the terms of that other security given to the Brokerage according to Section 12 of this
leasing agreement as a result of the lease; Agreement.

______________ Landlord’s Initials ______________ Brokerage Representative’s Initials


Page 2 of 3
Agreement # _______________________

13. ENDING THE AGREEMENT 16. AGENCY DISCLOSURE/ACKNOWLEDGMENT


13.1 This Agreement will automatically end if the Brokerage: 16.1 You, the Landlord, have entered into an agency relationship under
l has had its licence to trade in real estate suspended or cancelled common law with the Brokerage, including its broker, all its associate
under the Real Estate Act (Alberta). brokers and agents (collectively referred to as the Landlord’s Agent).
l ceases to be a member in good standing of a real estate board. A brokerage, its broker, associate brokers and agents representing a
tenant are referred to as the Tenant’s Agent.
l is bankrupt, insolvent, or in receivership.
16.2 The Landlord’s Agent is obligated to protect and promote your
13.2 Where a party to this Agreement has breached a part of this interests. Specifically, the Landlord’s Agent owes you the fiduciary
Agreement, the other party may end the Agreement by notice in writing duties of loyalty, obedience, confidentiality, reasonable care and skill,
to the party in breach. full disclosure, and full accounting.
13.3 You and the Brokerage may enforce parts of this Agreement even if 16.3 You, as the Landlord, and potential tenants may be represented by
this Agreement has ended or expired. different brokerages (the Landlord’s Agent and the Tenant’s Agent).
Each of these Agents owes its client the full fiduciary duties listed
14. ADDITIONAL TERMS
above. Other brokerages representing tenants will not have a fiduciary
14.1 This Agreement is for the benefit of and will be binding upon the heirs, relationship with you.
successors and assigns of the individual parties and the successors
and assigns of corporate parties. 16.4 Dual Agency occurs when one brokerage (the Dual Agent), trading in
real estate from one or more locations, represents both you and one or
14.2 All changes of number and gender will be made where required.
more tenants with respect to the potential leasing of the Space. In such
14.3 Capitalized words used in the headings, where applicable, shall define circumstances, the described fiduciary duties are limited as follows:
the terms used in this Agreement.
The Dual Agent:
14.4 This Agreement is a Landlord’s Brokerage Agreement for the purposes (a) will not, without prior written authority, disclose:
of the Real Estate Act (Alberta).
(i) to a tenant that you will accept a price less than the asking
14.5 This Agreement will be governed by the laws of the Province of rate (or a countered lease rate),
Alberta. The parties submit to the jurisdiction of the Courts in the
(ii) to you that a tenant will pay a price higher than the asking
Province of Alberta in any dispute that may arise out of this transaction.
rate,
15. ADVICE (iii) to a tenant the reason that you are leasing,
(iv) to you the reason that a tenant is seeking to lease, and
15.1 This Agreement creates binding legal obligations. You are
encouraged to obtain legal advice before signing. (v) to a tenant the terms and conditions of competing offers;
15.2 The Landlord acknowledges that the Brokerage is being retained (b) except as set out in (a), will owe no duty of confidentiality and will
as a real estate broker, not as a lawyer, tax advisor, lender, disclose to you and a tenant all facts known that materially affect
appraiser, surveyor, structural engineer, property inspector, or or may materially affect the marketability or value of the Leased
other professional service provider. Space.
15.3 The Landlord consents to the collection, use and disclosure of 16.5 The Landlord authorizes the Landlord’s Agent to act as a Dual
personal information by the Brokerage for the purpose of listing Agent according to the terms of this section.
and marketing the Property including, but not limited to:
(a) listing and advertising the Leased Space in any medium 17. SIGNATURES
including electronic media, photographs and video; 17.1 This Agreement may be signed by the parties and transmitted by fax.
(b) disclosing Property information to prospective tenants, This procedure will be as effective as if the parties had signed and
brokers, agents and others; delivered an original copy.
(c) such other use of the Landlord's personal information as is This Agreement is made effective ________________________________
consistent with listing and marketing of the Leased Space.
_______________________________________________, ______________.
15.4 The Landlord consents to placement of the listing information
and any sale information by the Brokerage into the database(s) of
the appropriate MLS® /CLSTM system(s) and acknowledges that ______________________________________________________________________
Name of Owner Registered on Title
the MLS®/CLSTM database is the property of the Board(s) and
can, during or after the termination or expiry of this listing, be _____________________________________ ______________________________
licensed, resold or otherwise dealt with by the Board(s). The Authorized Signing Officer(s) Witness
Landlord further acknowledges that the Board(s) may: _____________________________________ ______________________________
(a) distribute the information to any persons authorized to use Print Name of Authorized Signing Officer(s) Print Name of Witness
such service which may include other brokers, government
_____________________________________ ______________________________
departments, appraisers, municipal organizations and Authorized Signing Officer(s) Witness
others;
(b) market the Leased Space, at its option, in any medium, _____________________________________ ______________________________
Print Name of Authorized Signing Officer(s) Print Name of Witness
including electronic media;
(c) compile, retain and publish any statistics including historical ______________________________________________________________________
MLS®/CLSTM data; Signature of broker, associate broker or agent authorized to sign on behalf of the
Brokerage
(d) make such other use of the information as the Board deems
appropriate in connection with the listing, marketing and Landlord: Initial here to show you have
leasing of real estate. received a copy of this Agreement. ___________________
Page 3 of 3
APPENDIX TO THE
COMMERCIAL REAL ESTATE LISTING TO LEASE AGREEMENT
This Appendix is attached to and forms part of the Commercial Listing to Lease Agreement # _________________________________
Between
THE LANDLORD and THE LANDLORD’S BROKERAGE (the “Brokerage”)

Name ___________________________________________________________ Brokerage Name ____________________________________________________

Name ___________________________________________________________ __________________________________________________________________


Broker, associate broker or agent authorized to represent the Brokerage

The Space available for lease (the “Leased Space”) is described as:
Municipal Address _________________________________________________________________________________________________________________________
________________________________________________________________________________________________________________________________________
(postal code)
Legal Address: Plan _________________________________________________________ Block _________________________ Lot/Unit ________________________
Plan _____________________________________________________________________ Block _________________________ Lot/Unit ________________________
W. of (Meridian) Range Township Section Part Acres

First rental payment is due on ______________________________________________________________________ Amount $ ______________________________________

Tenant Pays Tenant Pays


Landlord Tenant Proportionate Share Landlord Tenant Proportionate Share
Expense Item Pays Pays (“Common Expenses”) Expense Item Pays Pays (“Common Expenses”)

Taxes: Maintenance & Repair:


Business Taxes Structural
Property Taxes Roof Covering (non-structural)
Insurance: HVAC, Plumbing & Mechanical
Landlord's Property & Liability Lighting & Electrical Systems
Tenant's Property & Liability Interior Décor
Glass Doors/Windows & Frames Other Non-Structural Components
Utilities & Services: Pavement & Hard Surfacing
Electricity Replacement or Depreciation:
Water & Sewer
Natural Gas
Telephone & Cable TV Other Expenses:
Waste Removal/Garbage
Janitorial Services & Supplies
Landscape & Groundskeeping
Property Management Fees

_________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________

Note: This form must be initialled by all parties to the Commercial Real Estate Listing to Lease Agreement.

Date ______________________________________________________________ Name of Owner Registered on Title ___________________________________________

___________________________________________________________________ _______________________________________________________________________
Authorized Signing Officer(s) Witness

___________________________________________________________________ _______________________________________________________________________
Authorized Signing Officer(s) Witness

Signature of broker, associate broker or agent authorized to sign on behalf of the Brokerage ___________________________________________________________________
January 2004
NOTICE
As per the Real Estate Purchase Contract
Notice to:
_________________________________________________________________________________________________________________________________
Seller/Buyer of the Property
Municipal Address ________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

Legal Address: Plan __________________________________________________ Block ___________________ Lot/Unit ________________

1. I am the Seller/Buyer of the Property in the Real Estate Purchase Contract # ______________________________________________________
The conditions(s) in that Contract that I now unilaterally waive or have satisfied is (are):
__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

__________________________________________________________________________________________________________________________

2. All other provisions in the Contract remain in full force and effect.
3. In this Notice, the singular shall be constituted as the plural where the context so requires.
4. This Notice shall enure to the benefit and be binding upon my heirs, executors, administrators, successors and assigns.
5. As per the Real Estate Purchase Contract, if a Notice has not been given to the other party before 9 p.m. on or before the stated
Condition Day, then the transaction is ended.

SIGNED in the presence of a witness, and DATED at ____________________________________________________________, Alberta at ________________


a.m./p.m. this ___________________ day of ________________________________________________________________________, ___________________.

_____________________________________________________ _____________________________________________________________________
Seller/Buyer Witness
_____________________________________________________ _____________________________________________________________________
Seller/Buyer Witness

If needed for commercial transactions:

Per: _____________________________________________________ _____________________________________________________________________


Authorized Signing Officer(s) Witness

_____________________________________________________ _____________________________________________________________________
Authorized Signing Officer(s) Witness
January 2004
# ______________________
Purchase Contract Number
COMMERCIAL REAL ESTATE PURCHASE CONTRACT
This form was developed by the Alberta Real Estate Association
for the use of its members and may not be altered electronically by any person.

PART A - OFFER TO PURCHASE


This Contract is between
THE SELLER and THE BUYER
Name _________________________________________________________________ Name _________________________________________________________________

Name _________________________________________________________________ Name _________________________________________________________________


1. THE PROPERTY 2. THE TRANSACTION
1.1 The Property is the Land, Buildings, Attached Goods (unless excluded) 2.1 The Buyer hereby offers to purchase the Property for $ _____________
and included Unattached Goods located at: __________________________________________________________
1.2 Municipal Address: __________________________________________ ____________________________________________________ Dollars
__________________________________________________________ (the “Purchase Price”).
__________________________________________________________ 2.2 Other than the Deposits, the Buyer shall pay the Purchase Price by
certified cheque, lawyer's trust cheque, bank draft or other agreed value as
1.3 Legal Description: Plan _______________________________________ follows:
Block ____________________________ Lot/Unit _________________ $ __________________________________ Initial Deposit
__________________________________________________________
__________________________________________________________ $ __________________________________ Additional Deposit
__________________________________________________________
If Condominium Property, details as described in Commercial $ __________________________________ Assumption of Mortgage
Condominium Property Schedule (attached). /Agreement for Sale
(approximate principal balance)
1.4 All Attached Goods (fixtures) except for: __________________________
$ __________________________________
__________________________________________________________
__________________________________________________________ $ __________________________________ New Financing
__________________________________________________________
__________________________________________________________ $ __________________________________ Seller Financing
(as per attached Financing Schedule)
1.5 No Unattached Goods (specific chattels) except for: ________________
__________________________________________________________ $ __________________________________ Other Value
__________________________________________________________
__________________________________________________________ $ __________________________________ Balance Owing
__________________________________________________________
__________________________________________________________ $ __________________________________ Purchase Price
(excluding GST)
__________________________________________________________
2.3 The Purchase Price does not include GST. In the event that GST is
__________________________________________________________ payable and the Buyer is not a GST registrant, then the Buyer shall remit
__________________________________________________________ the applicable GST to the Seller’s lawyer on or before the Completion Day.

__________________________________________________________ 3. DEPOSITS
__________________________________________________________ 3.1 All Deposits shall be delivered in trust to __________________________
1.6 Title to the Property shall be subject to any reservations and exceptions __________________________________________________________.
stated on the Certificate of Title, non-financial obligations now on Title such
Unless otherwise agreed in writing, the Initial Deposit shall accompany the
as easements, utility rights-of-way, covenants and conditions that are
normally found registered against property of this nature, and non-financial offer. _____________________________________________________
encumbrances which have been accepted by the Buyer (the "Permitted 3.2 The Initial Deposit shall be deposited no later than the second Business Day
Encumbrances"). Unless otherwise agreed in writing, the Title shall be free following the day that final signing occurred (as per clause 16.1). Additional
and clear of all other liens, encumbrances, registrations and obligations Deposits shall be deposited no later than the second Business Day
except those implied by law.
following the day the Additional Deposit is received by the brokerage.
The Buyer agrees to accept the following Permitted Encumbrances: ____
3.3 Any Additional Deposits shall be delivered as follows: _______________
__________________________________________________________ __________________________________________________________
__________________________________________________________ 3.4 Unless otherwise agreed in writing, no interest on the Deposits shall be
paid to the Seller or the Buyer. __________________________________
__________________________________________________________ ___________________________________________________________
______________ Seller’s Initials ______________ Buyer’s Initials
 January 2004 The Alberta Real Estate Association Page 1 of 4
# ______________________
Purchase Contract Number
3.5 The Deposits shall be held in trust for both the Seller and the Buyer and 4.7 If a new mortgage is a condition of this Contract, the Seller agrees to trust
shall be: conditions that allow the Buyer's lawyer to register the Transfer so as to
(a) applied against the Commission (as defined in the Commercial Real obtain the advance of mortgage funds on the new mortgage; provided
Estate Listing Contract or any other commission agreement signed by however that the Buyer's lawyer undertakes, accepts, and complies with
the Seller) and paid directly out of trust to the brokerage(s) when the reasonable trust conditions imposed by the Seller's lawyer until the Seller
Commission is earned in accordance with the terms of the Listing has been paid the total Purchase Price.
Contract or other commission agreement signed by the Seller;
4.8 The Seller's lawyer has a right to prepare (at the expense of the Buyer) any
(b) refunded forthwith to the Buyer if this offer is not accepted; mortgage or agreement for sale between the Seller and the Buyer.
(c) refunded forthwith to the Buyer upon the Buyer’s cheque clearing the
brokerage’s trust account if a condition is not satisfied or waived (as 5. INSURANCE
per clause 8.8) or the Seller fails to perform this Contract; and
5.1 The risk of loss or damage to the Property shall lie with the Seller until the
(d) forfeited to the Seller if this offer is accepted and all conditions are Purchase Price is paid according to the terms of this Contract. If loss or
satisfied or waived and the Buyer fails to perform on this Contract.
damage to the Property occurs before the Seller is paid the Purchase
3.6 The brokerage holding the Deposits is further directed and authorized to Price, then any insurance proceeds shall be held in trust for the Buyer and
pay that portion of the Deposits exceeding the Commission in trust to the the Seller according to their interests in the Property.
Seller's lawyer no later than two (2) Business Days prior to the Completion
Day. 6. WARRANTIES AND REPRESENTATIONS
3.7 If there is a dispute between the Seller and the Buyer as to entitlement to 6.1 The Seller represents and warrants to the Buyer that:
the Deposits then:
(a) the brokerage holding the Deposits shall review the circumstances, (a) the current use of the Land complies with the existing municipal land
determine entitlement and pay the money to the party who is entitled use bylaw;
to the Deposit; (b) the Buildings and other improvements on the Land are not placed
(b) if no reasonable conclusion can be made in regard to (a) above, the partly or wholly on any easement or utility right-of-way and are entirely
brokerage shall notify the parties to the Contract in writing and shall on the Land and do not encroach upon neighbouring lands, except
pay the money into a lawyer’s trust account; where an encroachment agreement is in place;
(c) the parties agree to allow the lawyer and/or the brokerage to deduct (c) the location of Buildings and other improvements on the Land
from the Deposit a reasonable fee and costs incurred for dealing with complies with all relevant municipal bylaws, regulations or relaxations
the Deposit; granted by the appropriate municipality prior to the Possession Date,
(d) a brokerage and/or lawyer acting in good faith under this clause shall or the Buildings and other improvements on the Land are "non-
not be liable to either party for any damages associated with the conforming buildings" as that term is defined in the Municipal
handling of the Deposit except arising from the negligence of the Government Act (Alberta);
brokerage or lawyer.
(d) to the best of the Seller’s knowledge, there is no legal action
4. CLOSING outstanding with respect to the Property;
4.1 Subject to compliance with the terms hereof, posssession of the Property (e) the Seller is not in breach of any contract with respect to the Property;
shall be available and given to the Buyer on or before 12 noon of the (f) the Seller is not in breach of any obligation to any third party with
___________ day of _________________________________________, respect to the Property;
___________, (the "Completion Day"), subject to the rights of the existing (g) within the meaning of the Income Tax Act (Canada), the Seller is not
tenants, if any. now nor will be on the Completion Day a non-resident of Canada nor
an agent or a trustee for any person with an interest in the Property
When the Buyer obtains possession, the Property will be in substantially
the same condition as it was in when this Contract was accepted. who is a non-resident of Canada; and
4.2 All normal adjustments for the Property including but not limited to taxes, (h) $__________ is the current monthly condominium contribution
local improvement levy and assessments, municipal charges, rents, payable (fee for administrative and other expenses).
utilities, tenant deposits including interest, prepaid rent, mortgage principal 6.2 All of the warranties contained in this Contract and any attached
and interest that are applicable with respect to the Property shall be Schedules are made as of and will be true at the Completion Day, unless
adjusted as of 24:00 hours on the Completion Day. The Buyer shall otherwise agreed in writing.
assume all local improvements, assessments and charges against the
Property as of that time. 6.3 The Seller and the Buyer each acknowledge that, except as otherwise
described in this Contract, there are no other warranties,
4.3 Closing documents shall:
representations or collateral agreements made by or with the other
(a) consist of the transfer of land (the "Transfer") in registerable form party, the Seller's brokerage and the Buyer's brokerage about the Property,
together with all applicable conveyancing documents normally
expected in a commercial transaction of this nature; any neighbouring lands, and this transaction, including any warranty,
representation or collateral agreement relating to the size/measurements
(b) be prepared at the expense of the Seller and delivered to the Buyer's
lawyer within a reasonable time to confirm registration prior to the of the Land and Buildings or the existence or non-existence of any
Completion Day. environmental condition or problem.
4.4 In the event the Seller fails to deliver the Transfer to the Buyer's lawyer 6.4 The representations and warranties in this Contract may be enforced after
within such reasonable time, then the Buyer shall not be obliged to pay the Completion Day, provided that any legal action is commenced within
interest on that portion of the cash to close attributable to the Buyer's own the time limits prescribed by the Limitations Act (Alberta).
funds, excluding mortgages, provided that those funds are paid to Seller's
lawyer in trust, until the Buyer has a reasonable time in which to register 6.5 The Buyer shall have the right to register a caveat against the Title to the
the Transfer. Property upon the acceptance of this Offer by the Seller. Should the Buyer
4.5 The Seller's lawyer may use the Purchase Price to pay out all mortgages, fail to perform this Contract, it agrees to forthwith discharge that caveat.
condominium contributions, registrations and other financial obligations
that are the Seller's obligation to pay or discharge. Within a reasonable 7. ADDITIONAL TERMS
period of time after the Completion Day, the Seller's lawyer will provide the 7.1 All time periods, deadlines and dates in this Contract shall be strictly
Buyer's lawyer with evidence of all discharges including, where required, a followed and enforced. All times will be Alberta time unless otherwise
certified copy of the certificate of title and an Estoppel Certificate stated.
evidencing the payment of all condominium contributions that are the
Seller’s obligation to pay. 7.2 This Contract is for the benefit of and shall be binding upon the heirs,
4.6 All money due and owing to the Seller including GST, if applicable, shall be executors, administrators and assigns of the individual parties and the
paid to the Seller's lawyer on or before the Completion Day. If the Seller successors and assigns of corporate parties.
agrees to accept payment after the Completion Day, the Buyer shall pay 7.3 All changes of number and gender shall be made where required.
interest at a rate of 3% per annum above the prime rate set by the Alberta
Treasury Branch on all monies owing to the Seller, from the Completion 7.4 This Contract will be governed by the laws of the Province of Alberta. The
Day to and including the date that the monies owing have been parties submit to the jurisdiction of the Courts in the Province of Alberta in
unconditionally paid. any dispute that may arise out of this transaction.
______________ Seller’s Initials ______________ Buyer’s Initials
Page 2 of 4
# ______________________
Purchase Contract Number
7.5 The following terms are a part of this Contract: _____________________ 8.4 The Seller shall allow the Buyer's authorized representatives reasonable
access to the Property from time to time during normal business hours at
__________________________________________________________ any time following execution of this Contract by the Seller and hereby
__________________________________________________________ authorizes the Buyer to carry out, at its sole cost and risk, such reasonable
tests, inspections and reviews as the Buyer's authorized representatives
__________________________________________________________ may deem necessary, subject to the rights of any tenants.
__________________________________________________________ 8.5 Additional Buyer's Conditions: ________________________________
__________________________________________________________ ___________________________________________________________
__________________________________________________________ ___________________________________________________________
__________________________________________________________ ___________________________________________________________
__________________________________________________________ ___________________________________________________________
___________________________________________________________
8. CONDITIONS ___________________________________________________________
8.1 Buyer's Financing Condition: It is a condition precedent to this offer that
___________________________________________________________
the Buyer is able to place a new mortgage(s) and/or assume the existing
mortgage(s) upon terms acceptable to the Buyer in order to fund the Before 9 p.m. on _____________________________________________
purchase of the Property. The Buyer shall have an opportunity to obtain (the "Condition Day").
such financing before 9 p.m. on the __________________day of 8.6 The Seller's Conditions are: __________________________________
__________________________________________________, ________. __________________________________________________________
8.2 Buyer's Due Diligence Condition: It is a condition precedent of this offer __________________________________________________________
that the Buyer shall have until before 9 p.m. on the ________________ day
of ___________________________________________, ___________ to __________________________________________________________
inspect and accept the Property, the Permitted Encumbrances and all __________________________________________________________
relevant information and records relating thereto. The Seller agrees to Before 9 p.m. on ____________________________________________
provide at its cost the following documents within _________ ( ) (the "Condition Day").
Business Days after the date of final signing of this offer: 8.7 Unless otherwise agreed in writing, the Buyer's Conditions are for the sole
(a) such financial information respecting the Property as the Buyer may benefit of the Buyer and the Seller's Conditions are for the sole benefit of
reasonably request; the Seller.
(b) copies of all other contracts currently pertaining to the Property; 8.8 The Buyer and the Seller may unilaterally waive or satisfy their Conditions
(c) copies of any engineering reports presently held by the Seller, by giving a Notice to the other party (the "Notice") on or before the stated
together with reports and particulars of maintenance work done by the Condition Day.
Seller on the heating and air conditioning equipment and roof repairs; 8.9 Provided that the Buyer or the Seller, as the case may be, uses reasonable
(d) copies of any other pertinent documents, correspondence, work efforts to satisfy the Condition(s), if the Notice has not been given on or
orders and deficiency notices from the municipality, if any, in the before the stated Condition Day, then this Contract is ended.
possession of the Seller;
9. ATTACHED SCHEDULES
(e) copies of any environmental assessment reports in the possession
of the Seller relating to environmental contamination of any kind at or 9.1 The following Schedules form part of this Contract and are attached:
on the Property; whether or not such reports exist, the Buyer, at its q Schedule A (copy of Title) q Financing Schedule
own expense, may engage consultants to inspect and make such tests q Schedule B (other documents) q Assumption of Mortgage
and observations as the Buyer may deem necessary. Copies of all q Comm. Condominium Property Schedule /Agreement for Sale
such reports shall be provided to the Seller without cost, whether or q Addendum q Other Value
not the sale of the Property is completed; q Seller Financing
(f) a Real Property Report reflecting the current state of improvements q Other Schedules:____________________________________________
on the Property, according to the Alberta Land Surveyors’ Manual of
Standard Practice, with evidence of municipal compliance or non- 10. SECURITY FOR THE SELLER’S BROKERAGE’S FEES
conformance. This obligation will not apply to condominium units that
do not create a lot or will not apply to any transaction where there are 10.1 The Seller does hereby irrevocably assign to the Seller's brokerage
no improvements on the land; enough of the Purchase Price to pay all sums due and owing to the Seller's
brokerage, and agrees to pay any unpaid balance of the Commission to
(g) any plans and specifications relating to the original construction and the Seller's brokerage.
improvements to the Property, including, without limiting the generality
of the foregoing, "as-built" drawings and plans for leasehold or tenants' 11. ADVICE
improvements which are in the possession or control of the Seller; 11.1 This Contract is intended to create binding legal obligations. The
(h) estoppel certificates from each of the tenants; Seller and the Buyer should read this Contract carefully and are
(i) a copy of the existing Title(s) # _______________________________ encouraged to obtain legal advice before signing.
attached hereto as Schedule “A”; and 11.2 This Contract may be signed and sent by fax and this procedure will
(j) other documents as listed below or as listed on Schedule "B" be as effective as signing and delivering an original copy.
attached hereto and forming part of this Contract. 11.3 Unless there is a dual agency or another written agreement, the
______________________________________________________ Seller's brokerage represents the Seller as Seller's Agent and does
not have a fiduciary relationship with the Buyer, and the Buyer's
______________________________________________________ brokerage represents the Buyer as Buyer's Agent and does not have
8.3 The Buyer shall keep all information obtained in strict confidence and shall a fiduciary relationship with the Seller.
only make the information available to the Buyer's employees, agents and 11.4 The Buyer and Seller agree that the sale and other related information
professional advisors in strict confidence and shall return all of the above regarding this transaction may be retained and disclosed by the
materials including all copies to the Seller before any Deposits are released brokerage and/or its real estate board(s) as required for closing and
to the Buyer pursuant to this Contract. for reporting, appraisal and statistical purposes.
______________ Seller’s Initials ______________ Buyer’s Initials
Page 3 of 4
# ______________________
Purchase Contract Number
12. DEFINITIONS PART B - ACCEPTANCE
12.1 In this Contract: 15. ACCEPTANCE
(a) Business Day means a day when both the Land Titles Office and the 15.1 The Seller accepts the Buyer's offer and agrees to sell the Property for the
Schedule I chartered banks are open for business. Purchase Price according to the terms of the Contract.
(b) Buyer's Agent means the licensed brokerage (including its broker, all
associate brokers and agents) who represents the Buyer. SIGNED AND DATED at _______________________, Alberta at ________.m.
(c) Seller's Agent means the licensed brokerage (including its broker, all on the _________ day of _________________________________, ________.
associate brokers and agents) who represents the Seller.
______________________________________________________________________
13. REPRESENTATIVES/NOTICE Name of Seller (Print)
Note: This section must be completed at the offer stage prior to the Per: _________________________________ _______________________________
Contract being signed. Authorized Signing Officer(s) Witness
13.1 The Representatives identified in clause 13.2 represent the Seller and the _____________________________________ _______________________________
Buyer. Print Name of Authorized Signing Officer(s) Print Name of Witness
13.2 For the purposes of giving and receiving any notice referred to in this Per: _________________________________ _______________________________
Contract, and for acceptance of an offer to purchase, communication must Authorized Signing Officer(s) Witness
be in writing and must be delivered to the address or faxed to the number
described below. _____________________________________ _______________________________
Print Name of Authorized Signing Officer(s) Print Name of Witness
A notice sent or received by a Representative is proper notice for the
purposes of this Contract. 16. FINAL SIGNING
Seller's Information: 16.1 Final signing of this Contract occurred at ______________ .m. on
Seller's Address _____________________________________________ ______________________________________________, ___________.
___________________________________________________________ Initials of the person(s) who signed last _______________________
(postal code)
Phone ____________________________ Fax ____________________
CONVEYANCING
Seller's Representative:
__________________________________________________________ Seller's Lawyer _________________________________________________________
Broker, associate broker or agent registered to the brokerage
Brokerage Name ____________________________________________ Lawyer's Address ________________________________________________________
(postal code)
Brokerage Address __________________________________________ Lawyer's Phone _____________________________ Fax ________________________
__________________________________________________________ Buyer's Lawyer __________________________________________________________
(postal code)
Phone ____________________________ Fax ____________________ Lawyer's Address ________________________________________________________
(postal code)
Buyer's Information: Lawyer's Phone ____________________________ Fax _________________________
Buyer's Address ____________________________________________
COMMISSION AGREEMENT
__________________________________________________________ (to be completed if there is no listing agreement)
(postal code)
Phone ____________________________ Fax ____________________ This Agreement is between the Buyer's Brokerage (the "Brokerage") and the Seller.
In consideration of the Brokerage being the effective cause of sale, the Seller
Buyer's Representative:
agrees that if there is no written Listing Contract, this shall be regarded as a
__________________________________________________________ Commission Agreement between the Seller and the Brokerage. The Seller hereby
Broker, associate broker or agent registered to the brokerage agrees to pay a commission to the Brokerage in consideration of its services,
Brokerage Name ____________________________________________ according to the Real Estate Act (Alberta) upon completion of this transaction, to be
calculated as follows: _______________________________________________
Brokerage Address __________________________________________
_________________________________________________________________
__________________________________________________________ ___________________________________________________ plus the applicable
(postal code) GST. This earned commission shall constitute a charge on this Property and gives
Phone ____________________________ Fax ____________________
_________________________________________ (the Brokerage) the right to file
14. OFFER a caveat as security for the payment of the commission.
14.1 The Buyer offers to buy the Property for the Purchase Price according to The Seller authorizes the Brokerage to deduct this commission payable from the
the terms of this Contract. Deposits. If the Buyer fails to complete this transaction through no fault of the Seller,
14.2 This offer / counter offer shall be open for acceptance in writing until the lesser of 50% of such Deposits or the real estate commission that would have
_______.m. on ____________________________________, _________. been payable on completion of this transaction shall be payable to the Brokerage as
alternate compensation.
SIGNED AND DATED at __________________________, Alberta at _____.m. In the event the Seller fails to complete this transaction, the commission shall be
on the ________ day of ________________________________, _________. payable as if the transaction had been completed and shall be due on the
Completion Day.
______________________________________________________________________
Name of Buyer (Print) ______________________________________________________________________
Signature of broker, associate broker, or agent authorized to sign on behalf of the
Per: __________________________________ _______________________________ Brokerage
Authorized Signing Officer(s) Witness ______________________________________ ______________________________
Seller’s Signature Witness
______________________________________ _______________________________
Print Name of Authorized Signing Officer(s) Print Name of Witness ______________________________________ ______________________________
Print Name of Seller Print Name of Witness
Per: __________________________________ _______________________________ ______________________________________ ______________________________
Authorized Signing Officer(s) Witness Seller’s Signature Witness
______________________________________ _______________________________ ______________________________________ ______________________________
Print Name of Authorized Signing Officer(s) Print Name of Witness Print Name of Seller Print Name of Witness
Page 4 of 4
ADDENDUM ________ TO THE
REAL ESTATE PURCHASE CONTRACT
This Addendum is attached to and forms part of the Real Estate Purchase Contract # _____________________________
Between
and
THE SELLER THE BUYER

Name ________________________________________________________ Name _________________________________________________________

Name ________________________________________________________ Name _________________________________________________________

With respect to the Property described as:


Municipal Address ________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________
Legal Address: Plan ________________________________________________ Block ____________________ Lot/Unit _________________
Legal Legal
Condo. Plan _______________________________________________________ Unit No. __________________ Parking Unit _____________
Other ___________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

Note: This form must be signed by all parties to the Real Estate Purchase Contract.

_____________________________________________________________
Date

_____________________________________________________________ _________________________________________________________________
Seller Witness

_____________________________________________________________ _________________________________________________________________
Seller Witness

_____________________________________________________________ _________________________________________________________________
Buyer Witness

_____________________________________________________________ _________________________________________________________________
Buyer Witness
January 2004
AMENDMENT TO THE
REAL ESTATE PURCHASE CONTRACT
Real Estate Purchase Contract # __________________________
Further to the Real Estate Purchase Contract dated the ____________ day of _________________________________________, __________.

Between
and
THE SELLER THE BUYER

Name ________________________________________________________ Name _________________________________________________________

Name ________________________________________________________ Name _________________________________________________________

With respect to the Property described as:


Municipal Address ________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

W. of Range Township Section Part Acres

Legal Address: Plan __________________________________________________ Block ___________________ Lot/Unit ________________


Legal Legal
Condo. Plan _______________________________________________________ Unit No. __________________ Parking Unit _____________
Other ___________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

The following changes shall be made to the above Purchase Contract and except for such changes noted below, all other terms and conditions in
the Purchase Contract shall remain as stated therein.
DELETE: ________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

INSERT: ________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________________________

Dated at _______________________________, Alberta, this ________ day of ________________________, _______ at __________ a.m./p.m.

_____________________________________________________________ _________________________________________________________________
Seller Witness

_____________________________________________________________ _________________________________________________________________
Seller Witness

Dated at ________________________________, Alberta, this ________ day of ______________________, _________ at _________ a.m./p.m.

_____________________________________________________________ _________________________________________________________________
Buyer Witness
_____________________________________________________________ _________________________________________________________________
Buyer Witness
January 2004
COMMISSION AGREEMENT
(For use when there is no listing agreement in commercial/agricultural transactions)

This Agreement is between


and
THE SELLER (“You”) THE BUYER’S BROKERAGE (the “Brokerage”)

Name _____________________________________________________________ Brokerage Name ____________________________________________________

Name _____________________________________________________________ ____________________________________ Email ________________________

Address ___________________________________________________________ Address ___________________________________________________________


(postal code)
__________________________________________________________________ Phone _______________________________ Fax _________________________
(postal code)

Phone _______________________________ Fax _________________________ __________________________________________________________________


Broker, associate broker or agent authorized to represent the Brokerage
Email _____________________________________________________________ Member of the _______________________________________ Real Estate Board

1. AGENCY DISCLOSURE

You acknowledge that ____________________________________________________________________________________________________ is acting


(Brokerage Name)
only on behalf of the buyer in this transaction and owes you no fiduciary duties.
2. THE PROPERTY
Municipal Address ____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________

Legal Description _____________________________________________________________________________________________________________________


____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
You warrant that you have legal authority to sell the Property and all the information that you have provided to the Brokerage is correct and accurate to the
best of your knowledge.
3. COMMISSION
In consideration of the Brokerage being the effective cause of sale, you agree that if there is no written Listing Contract, this shall be regarded as a Commission
Agreement between you and the Brokerage. You hereby agree to pay a commission to the Brokerage in consideration of its services, according to the Real
Estate Act (Alberta) upon completion of this transaction, to be calculated as follows:
____________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________
_______________________________________________________________________________________________________________ plus the applicable GST.

This earned commission shall constitute a charge on this Property and gives _______________________________________________________________
(the Brokerage) the right to file a caveat as security for the payment of the commission.

You authorize the Brokerage to deduct this commission payable from the Deposits. If the buyer fails to complete this transaction through no fault of yours, the
lesser of 50% of such Deposits or the real estate commission that would have been payable on completion of this transaction shall be payable to the Brokerage
as alternate compensation.

In the event you fail to complete this transaction, the commission shall be payable as if the transaction had been completed and shall be due on the Completion
Day, as defined in the Real Estate Purchase Contract.

The Seller consents to the collection, use and disclosure of personal information by the Brokerage for the purpose of listing and marketing the Property.

Dated at _________________________________________ this ____________day of ____________________________________________, _____________.

__________________________________________________________ ___________________________________________________________________
Signature of broker, associate broker or agent authorized to sign on behalf Print Name
of the Brokerage
__________________________________________________________ ____________________________________________________________
Seller’s Signature Witness

__________________________________________________________ ____________________________________________________________
Seller’s Signature Witness
January 2004
Beware Asbestos, the action hero killer

Asbestos is a naturally occurring silica mineral. It has been found to be in use as far back
as the ancient Egyptians in their clothing. The first Asbestos mine was opened in Quebec
in the early 1870s and concentrated on military applications until the end of World War
II.

As early as the 1920s Asbestos was used in many building components and over 3000
other products because of its many qualities. It was light, durable, waterproof,
fireproof, resistant to corrosion and an excellent insulation.

In homes built prior to 1972, you can find Asbestos in the gyproc walls, the textured
ceiling and ceiling tiles, the linoleum tiles, the shingles, the siding, the window putty,
carpet underlay, around the floors and walls near fireplaces, in the fusebox and around
the ducting from the furnace.

It is estimated that more than half of the multi-storey buildings constructed between 1950
and 1970 contained asbestos fireproofing.

Asbestos in an undisturbed state is not a problem. It only becomes dangerous when it’s
disturbed and broken down, which releases fibres into the air.

If you are planning renovations that require disturbing Asbestos, you should have them
done by a professional. The Asbestos fibre is very small (almost like a powder).

When it is manufactured into a product like furnace duct insulation, it is combined with
glue to form that product. The problem occurs when the glue breaks down after years of
use. The powdery asbestos fibres are released and may become airborne and inhaled.

Once inhaled, the asbestos fibres become embedded into the body cells, altering those
cells into malignant cells that grow and consume the normal cells. This is a variety of a
cancer-related disease called Asbestosis (Black Lung disease). The inhalation of asbestos
fibres also contributes to other diseases, including mesothelioma, benign pleural disease,
bronchial carcinoma, asbestos warts, and gastrointestinal cancers. If you smoke, the risk
becomes greater. The symptoms of these diseases may not become apparent for 20-30
years. Asbestos is rated as the number one cause of occupational disease fatalities.

Of all the deaths caused by exposure to hazardous substances in the 1990s, approximately
73% were related to Asbestos.

Steve McQueen, the famous actor who starred in Bullitt and many other movies, died in
1980 at the age of 50 years old. He was a 2-pack-a-day smoker, but it was determined
that cigarette smoking did not contribute greatly to the disease that killed him. Just three
short months before his death, McQueen discovered he had Mesothelioma, a high grade
malignancy caused by exposure to Asbestos.
It is not known whether anyone has been cured from this cancer. McQueen was
surrounded by Asbestos all of his life. In his early years, he worked in construction and
was around asbestos materials. Later, he joined the marines and recalled an incident
where he was sentenced to six weeks in the brig.

McQueen spent that time in the hold of the ship cleaning the engine room. The pipes
were covered with asbestos linings, which the men ripped out and replaced. The air was
so thick with Asbestos particles, the men could hardly breath. Asbestos was used in the
insulation of every modern day ship built before 1976. Steve McQueen was also an avid
race car driver and was exposed to protective helmets and suits and the brake linings of
race cars, all made with Asbestos.

What should you do if you think your home has Asbestos in it?

Remember if it is undisturbed, it’s not a problem. If it’s flaking off or otherwise


deteriorating, you should have it tested.

You can’t tell if it’s Asbestos without a test. Asbestos comes in many different colours,
shapes and textures. The cost for an Asbestos test is approximately $65 and can be done
at many laboratories in Calgary.

There are three main methods of remediation which I refer to as the three E’s. The most
expensive is elimination. Asbestos contractors will seal off the property and use specially
designed suits and breathing apparatus to remove and dispose of the contaminant.

Encapsulation involves covering the Asbestos so that it will not be exposed. Sprayed
coatings or furnace tape can be used to encapsulate and isolate the Asbestos, but it should
still be done by a professional.

The third method is enclosure and is mostly only used in commercial applications. This is
most often used in a boiler room or furnace room and involves building a well-sealed air
tight wall around the contaminant.
Stan Leece is an instructor for the Alberta Real Estate Association
for Environmental courses and a real estate agent with Sutton Group Canwest.
He can be reached at 208-7788.
Calgary plant leaked Creosote for over 40 years
I
was in the local building supply wood product by as much as 10 times. was trenching a sanitary sewer and
A2 store the other day and my wife
wanted to buy some landscaping E nvironmental
Treatment was either by dipping the
wood in the creosote solution or by
water line on the north side of the river
in the 1800 and 1900 block of
ties to build a new garden area.
Of course, she wanted treated wood
ties because they would last longer. I
T H
ips in the ome
pressure-treating the wood.
How does creosote enter the
environment? Creosote can migrate
Broadview Road and discovered a pool
of creosote at a depth of 20 feet. The
health department determined that this
knew that carcinogenic (or suspected from treated products through the soil. would not affect the health of any of the
carcinogenic) substances had been used Stan Leece They will not travel far and will residents because at that depth
in preserving wood in the past, but I remain tar-like, but breakdown exposure to humans was unlikely.
wasn’t aware if they were still being
used in present day preservatives. I
The Remediation Triangle will take many years. In the past,
wastewater from wood treatment
Between $5 and $6 million dollars
was spent studying the creosote
asked the clerk if they could be used plants was often discharged into problem on both sides of the river and
safely near a vegetable garden and he Cheap waterways, released into the millions more went towards removing
replied, “No problem, we sell them to municipal water treatment the creosote.
people for gardens all the time.” system or simply disposed of on I heard that the original estimates to
I grabbed a can of wood preservative the ground where it found its remediate the site were very high, but
and asked if it was the same type used way into the water table. alternative methods were used to
to preserve the landscaping ties. He Such was the case in Calgary reduce the cost substantially. A coffer
replied that it was. I couldn’t find the just west of the 14th Street bridge dam was constructed in the Bow River
list of ingredients on the label, but I Effective Quick on the south side of the river to contain the seepage, wash the
showed him a warning on the can (in where the present day contaminated gravel and allow the
very small print) that it was dangerous Greyhound Bus depot and two recovery of much of the creosote still on
J to use near fruit or vegetable gardens. car lots are located. From the the site.
u Creosote is one of the most popular of opening of the Canada This method took much more time to
l the wood preservatives. Depending on Creosoting plant in 1920 to its be effective but was also much less
who you listen to, you’ll get different mixture of many chemicals. It is a closure in 1962, the facility was most expensive than the alternatives. The
y answers on how safe the chemicals in heavy, oily, brownish liquid with a likely leaking creosote into the soil, diagram shows the remediation
creosote are. The producers and smoky odour. The types of chemicals in groundwater and directly into the Bow triangle.
• promoters insist that they are safe, but creosote can vary from 300 to as many River. If you choose two corners of the
the various departments of health will as 10,000, including trichlorophenyl, Historical air photos of the site show triangle you will always sacrifice the
27 tell you that they are carcinogenic or pentachlorophenyl, cresols and it to be approximately 40 acres in size. third. For example, if you want it cheap
• probable carcinogenic. polycyclic aromatic hydrocarbons. In 1988, during a search of provincial and quick, it won’t be effective. If you
Skin contact can cause severe rapid There are many different types of archives, the site was identified by the want it quick and effective, it won’t be
2 damage to kidneys, liver and brain – creosote, including wood creosote, coal HELP project (Help End Land cheap. The remediators of the Canada
death can result. Creosote can also be tar pitch creosote and coal tarcreosotes, Pollution) and it was determined that Creosote site seem to have opted for the
0 dangerous when inhaled or ingested. which is the most commonly used. creosote was seeping into the Bow third selection. It was cheaper and
0 So what is creosote? It’s the name Creosote has been used for decades as River. HELP identified 682 “orphan” effective, but it wasn’t quick.
1 used for a variety of products that are a a very effective method of preserving sites across Alberta. — Stan Leece is an instructor for the
wood telephone poles, railway ties, The term orphan describes a site for Alberta Real Estate Association for
fence posts, retaining walls, which there is no individual or Environmental courses and a real estate
landscaping ties and other timber company responsible for remediating agent with Sutton Group Canwest. He can
products. It can increase the life of a any contamination. In 1991, the city be reached at 208-7788.
Calgary plant leaked Creosote for over 40 years
I
was in the local building supply wood product by as much as 10 times. was trenching a sanitary sewer and
A2 store the other day and my wife
wanted to buy some landscaping E nvironmental
Treatment was either by dipping the
wood in the creosote solution or by
water line on the north side of the river
in the 1800 and 1900 block of
ties to build a new garden area.
Of course, she wanted treated wood
ties because they would last longer. I
T H
ips in the ome
pressure-treating the wood.
How does creosote enter the
environment? Creosote can migrate
Broadview Road and discovered a pool
of creosote at a depth of 20 feet. The
health department determined that this
knew that carcinogenic (or suspected from treated products through the soil. would not affect the health of any of the
carcinogenic) substances had been used Stan Leece They will not travel far and will residents because at that depth
in preserving wood in the past, but I remain tar-like, but breakdown exposure to humans was unlikely.
wasn’t aware if they were still being
used in present day preservatives. I
The Remediation Triangle will take many years. In the past,
wastewater from wood treatment
Between $5 and $6 million dollars
was spent studying the creosote
asked the clerk if they could be used plants was often discharged into problem on both sides of the river and
safely near a vegetable garden and he Cheap waterways, released into the millions more went towards removing
replied, “No problem, we sell them to municipal water treatment the creosote.
people for gardens all the time.” system or simply disposed of on I heard that the original estimates to
I grabbed a can of wood preservative the ground where it found its remediate the site were very high, but
and asked if it was the same type used way into the water table. alternative methods were used to
to preserve the landscaping ties. He Such was the case in Calgary reduce the cost substantially. A coffer
replied that it was. I couldn’t find the just west of the 14th Street bridge dam was constructed in the Bow River
list of ingredients on the label, but I Effective Quick on the south side of the river to contain the seepage, wash the
showed him a warning on the can (in where the present day contaminated gravel and allow the
very small print) that it was dangerous Greyhound Bus depot and two recovery of much of the creosote still on
J to use near fruit or vegetable gardens. car lots are located. From the the site.
u Creosote is one of the most popular of opening of the Canada This method took much more time to
l the wood preservatives. Depending on Creosoting plant in 1920 to its be effective but was also much less
who you listen to, you’ll get different mixture of many chemicals. It is a closure in 1962, the facility was most expensive than the alternatives. The
y answers on how safe the chemicals in heavy, oily, brownish liquid with a likely leaking creosote into the soil, diagram shows the remediation
creosote are. The producers and smoky odour. The types of chemicals in groundwater and directly into the Bow triangle.
• promoters insist that they are safe, but creosote can vary from 300 to as many River. If you choose two corners of the
the various departments of health will as 10,000, including trichlorophenyl, Historical air photos of the site show triangle you will always sacrifice the
27 tell you that they are carcinogenic or pentachlorophenyl, cresols and it to be approximately 40 acres in size. third. For example, if you want it cheap
• probable carcinogenic. polycyclic aromatic hydrocarbons. In 1988, during a search of provincial and quick, it won’t be effective. If you
Skin contact can cause severe rapid There are many different types of archives, the site was identified by the want it quick and effective, it won’t be
2 damage to kidneys, liver and brain – creosote, including wood creosote, coal HELP project (Help End Land cheap. The remediators of the Canada
death can result. Creosote can also be tar pitch creosote and coal tarcreosotes, Pollution) and it was determined that Creosote site seem to have opted for the
0 dangerous when inhaled or ingested. which is the most commonly used. creosote was seeping into the Bow third selection. It was cheaper and
0 So what is creosote? It’s the name Creosote has been used for decades as River. HELP identified 682 “orphan” effective, but it wasn’t quick.
1 used for a variety of products that are a a very effective method of preserving sites across Alberta. — Stan Leece is an instructor for the
wood telephone poles, railway ties, The term orphan describes a site for Alberta Real Estate Association for
fence posts, retaining walls, which there is no individual or Environmental courses and a real estate
landscaping ties and other timber company responsible for remediating agent with Sutton Group Canwest. He can
products. It can increase the life of a any contamination. In 1991, the city be reached at 208-7788.
Claiming capital cost allowance
In the excitement of reducing income
You may be Family Financial
for tax purposes, taxpayers often claim
CCA where they should not be claiming

denied CCA if Planning


as it may be counter-productive.
Provisions of subsection 45(2) permit a
taxpayer to deem his present principal
you don’t Esmail Bharwani
residence to be a continuing principal
residence upon change in its use. This

qualify Let me explain the one-half rule. In the


first year of an addition, the CCA may
elective provision is used by a taxpayer
when he rents out his former principal
residence and moves into another house.

I
t is a wrong to assume that by simply only be claimed up to one-half of the Because he expects his former residence
acquiring an asset you have earned "net" addition. However, there are excep- to appreciate in value faster in the short-
yourself a right to claim a capital cost tions to the one-half rule. Many may not run, he uses this election to maximize his
allowance (CCA) or an equivalent of be aware and this fact is complicated by capital gains exemption on the disposi-
depreciation for financial accounting. some of the tax computer programs that tion of his former principal residence. If
There are many tricky provisions in the the one-half rule does not apply to some the taxpayer elects to use that provision,
Income Tax Act that you need to be of the classes and to some specific items the property is then deemed not used for
aware of. CCA is not an automatic right, within those classes. For example, Class the purpose of producing income,
you need to earn it. I will explain what I 12 includes a number of items. Of these although rental income may be received
mean. items the following are not subject to by way of incidental income.
First, let's understand the concept of one-half rule: By claiming the CCA you will invali-
the CCA further. According to the provi- A certified production (film), a date the effect of your election and lose
sions 20(1) of the act and regulation book that is a part of a lending library, the opportunity of maximizing your
1102(1)(c) and as explained in the trial of linen, a tool costing less than $200, a uni- exemption. You will be advised to use
Hickman Motors Ltd (plaintiff) v. Her form, rental apparel or costume includ- some professional help, if you have used
Majesty the Queen (defendant) ing accessories, chinaware, cutlery or the 45(2) election. For those who are not
[93DTC5040), deductions from business other tableware and a kitchen utensil familiar with this provision, let me put it
or property income are allowed "as are costing less than $200 and a medical or in simple words. Once you have lived in
wholly applicable to that source or such dental instrument costing less than $200. a residence, you can elect that it remains
part.....as may reasonably be regarded as In addition, a Class 14 asset such as a as your principal residence for tax pur-
applicable thereto." In other words the patent, franchise, concession or license poses although you may not live there
expense must have a direct relation to for a limited period are not also subject after you have acquired another house to
the business or property income in order to the one-half rule. move into. The maximum time period
to be deductible. allowed for this election is 4 years and
The next rule to remember is that the Quite often errors are made in terms of could be longer if you have moved out of
CCA may not be claimed on assets "not claiming CCA up to the maximum the municipality because of employ-
acquired by the taxpayer for the purpose amount. If you are using a computer ment.
of gaining or producing income." For program to complete personal or corpo- So, you see the CCA is not just an arith-
example, a sales person's car, when not rate tax returns, the chances are that the metical exercise. You need to understand
used 100% in the business of earning program will compute the maximum the complex rules and must develop
commission income, may not be claimed permissible amount. If it is to your strategies that best fit your situation.
as 100% business use for tax purposes. advantage to claim less than the maxi- This article was previously published
Or, if you have acquired a computer for mum, you can do so by manually, over- in "The area update", published by the
your children to play games with it, you riding the amount or pencilling in the Alberta Real Estate Association
may not claim CCA on that computer if amount and changing your totals. You
you cannot justify having used it for must consider carefully your strategy —The author assumes no responsibility
business. with respect to maximizing your CCA. whatsoever for any information given above
That raises another interesting point. First of all, it may not be allowed if it cre- because the purpose of this column is not
Beginning from l990, you may not start ates a loss from a rental property. Or, if intended to provide professional advice
claiming CCA until the property has you are able to claim under certain pro- including, without limitations, investment,
become "available for use" by the taxpay- visions, you need to be sure if that is to financial, legal, accounting or tax advice.
er. To consider the asset to have been your advantage. For specific advice, direction, help applicable
available for use, you need to establish The other confusing issue is whether to your own situation please always consult
that the asset has been delivered and is you really need to have the property title your professional advisor specializing in the
capable of performing the function for in your name in order for (CCA) claim. area of your needs. Esmail Bharwani is a
which it was acquired. There is an excep- The ownership is not necessary. Certified General Accountant and Senior
tion for buildings; to put it simply, a However, you must have all the inci- Business & Income Tax Consultant operat-
building is available for use when all or dents to title, such as possession of the ing as Esmail Bharwani Professional Corp.
substantially all of it is first used for its asset, use of the asset and onus of the He can be reached at 288-3234, or by e-mail
intended purpose. The rules with respect risk. In other words you have the bene- at ebharwan@ucalgary.ca. His Web site
to buildings are quite complex and need fits and liabilities of the asset. You may address www.ucalgary.ca/~ebharwan.
to be reviewed before deciding on the want to refer to CCRA publication # IT- Esmail’s column appears weekly in the
eligibility for CCA. 50R (available free). Calgary Real Estate News.
Don’t let the taxman take a bigger slice
Avoid paying corporation,” he would have qualified originally paid for, it is critical that you

from beyond Family Financial for capital gains exemption for an


amount up to half of that gain.
consult your preferred tax consultant to
design a plan for you.

the grave Planning However, the other half would have


become taxable. He questioned why he
The plan should take into account all
your concerns and objectives. There is
couldn’t report the other half under his always a way to come up with a plan
Esmail Bharwani

P
eople always grumble when they spouse’s name who had been involved that will provide a reasonable response
have to pay tax on money they in the business as an employee and had to a majority of the founder’s concerns.
make. or dumb-founded. helped the company grow. I remember a case I worked on two
Survivors of deceased taxpayers show They assume the life will go on for The gain can only be reported by the decades ago. If that person had not
disgust for the taxman when the estate ever. When they retire they will have person whose investment it is, and the undertaken to freeze the value of his
pays huge taxes. But very few reflect on lots of time to plan and organize their reporting cannot be changed at will. shares, or go through the corporate
the real reason why taxes are so high. death. So they sit back and I have come across many cases where reorganization, the tax costs on the
The estate of a deceased person pays procrastinate. the men determinedly maintain death of one of the shareholders would
tax on capital gains arising on his death. For some I’ve known it was too late to ownership of businesses in their sole have been five times more than what
All assets passing on from the death of save taxes in certain situation. It is my names. her estate ended up paying on her
an individual to beneficiaries other than gut feeling that in a buoyant economy, They retain family members as death.
those to one’s spouse are generally not many would find time to focus and employees to help them in the business. So let’s not blame the taxman all the
deemed disposed of at fair market reflect on estate planning matters. Had he considered making the family time. Rather, we need to spend time on
value. For many of these individuals it may members shareholders early on when our own personal affairs.
Any resulting accrued gain thus prove to be a shocker when they try to the company’s fair market value was A close scrutiny of our own affairs will
becomes crystallized and the estate is assess their situation at the later stage of lower, they could have all participated suggest that the deficiencies left in any
required to pay tax on the taxable their life. in the growth of the value of the planning are the result of our
portion of the gain. Let me explain why I express my common shares. carelessness or negligence because we
Incidentally there are exceptions: Tax- concern so categorically. In fact, it’s a Each of them may have then qualified have all been too busy to take into our
deferred rollovers, tax-free transfers of concern I have expressed to many over for lifetime capital gains exemptions of own hands our personal financial and
principal residence and others. years of my consulting life. up to $500,000 each. In other words, estate planning project, and that
The question many have asked me is I am not suggesting that you can’t there would have been no taxes to pay includes me too.
could their father, mother or plan later in life. There are other and the family could have retained a
grandparents done anything different to avenues about which I plan to write in significant portion of taxes as additional
leave them with most of the estate. future columns. proceeds. —The author assumes no responsibility
I remember one person telling me However, there are certain situations Such planning should only be done whatsoever for any information given
“why do these tax guys want so much in which your planning possibilities with the help of qualified people. But it above because the purpose of this column is
money — our parents paid taxes all may be limited. Let me give you an is all achievable. not intended to provide professional advice
their lives.” example. The concept of making family including, without limitations, investment,
The answer is simple. There are as It is a case of an elderly person in his members part owners/shareholders or financial, legal, accounting or tax advice.
many tax plans around as there are tax late 60s, who owned a very successful directors or officers is a scary thought For specific advice, direction, help
practitioners. Taxpayers are able business for over 40 years. The business for the founder, especially for fear of applicable to your own situation please
therefore to defer taxes until retirement had grown and so had its market value, losing control of the corporate-owned always consult your professional advisor
or death. and because of that it could fetch the business built over many years. specializing in the area of your needs.
While taxes are deferred to be paid for owner up to $1 million if sold. The founder of the business wants to Esmail Bharwani is a Certified General
later, the tax dollars are earning income The estimated capital gains tax would make sure that he retains absolute Accountant and Senior Business & Income
for the taxpayers. It is like an interest have been, say, approximately $300,000. control of the company. He is even more Tax Consultant operating as Esmail
free loan from the tax department. He wondered if there was anything that concerned if it involves inclusion of Bharwani Professional Corp. He can be
So it is no surprise if there are huge could be done to save him taxes if he minor children in the ownership of the reached at 288-3234, or by e-mail at
taxes to pay at the end of one’s life. sold it. company, which is being done more and ebharwan@ucalgary.ca. His Web site
In writing this column I am more As his common shares holding were more. address www.ucalgary.ca/~ebharwan.
concerned about those who remain qualifying shares and the corporation If you have a business that has become Esmail’s column appears weekly in the
intentionally or otherwise blind-folded was then a “small business worth a lot more than what you Calgary Real Estate News.
Entertainment, promotion – tax deductible?
I
am often asked questions by real shows organized as a regular activity of business convention, business meetings
estate persons and other taxpayers
about the deductibility of
entertainment and promotion
Family Financial a registered charity.
However, the cost of entertaining this
client at the charity’s annual fund-
and or other kinds of professional and
business development seminars.
If you are a manufacturer or a
expenses.
What might seem as just a normal
Planning raising dinner was fully deductible.
However, there are many self-
supplier of a product, offering some
samples as a promotion will not limit
business or commission-related Esmail Bharwani employed individuals who incur meal you to the 50% deductibility.
expense may either be totally expenses while on business away from One client says, “I simply order pen
disallowed or only partially allowed by home. sets and offer them for a promotion
Canada Customs & Revenue Agency for the purpose of producing, gaining If they are able to bill this amount to instead of theatre tickets. Then I can
(CCRA). or maintaining business income, they their clients, of course the restriction to write them off as office supplies.”
This issue is important because if you have to be reasonable as well. Also, the billing party does not apply. I don’t It is a question of legitimacy. Some
are able to deduct an expense, your net only in certain exceptions they are fully imagine it would take long for someone people can be quite crafty about how
cost is less. deductible. More often, only 50% is to think of including these meal they categorize their expenses under
Assume, for example, if you spend allowed as a deduction. expenses in their fees. unconventional headings, thereby
$100 on entertainment and you are Furthermore, expenses include the Those of you who advance meal avoiding the CCRA’s auditor.
paying a 50% marginal income tax rate, actual cost of purchase (including taxes) allowance to employees will be CCRA bulletin IT518R emphasizes the
your net cost of that entertainment is and tips. Your GST input tax credit will restricted to 50%, that is, if this need for records with names and
$50 if you can deduct it fully. be restricted to 50% (where applicable). allowance is not deemed a taxable business addresses of the customers or
Whereas, if you are able to deduct The toughest part is being able to benefit. other persons being entertained,
only 50% of that expense, your net cost keep track of what is subject to the 50% However, there are no deductibility together with relevant places, dates,
is $75. The worst scenario is that your limitation. worries when you throw a party for times and amounts supported by such
net cost will be $100 if you are denied Because the cost of food, beverages or your employees. As long as you are vouchers as are reasonably obtainable.
deduction in its entirety. entertainment may be part of a package providing food, beverages or It is best to understand the rules and
So, you need to understand some price, you must be able to allocate entertainment to all employees to work within the legal framework.
very technical rules that apply to expenses between those that are fully generally without any segregation, all
expenses incurred after Feb. 21, 1994, deductible and those that only expenses will qualify. This article was previously
involving the consumption of food, deductible up to 50%. I find businesses Those who regularly attend published in the “Area Update” of the
beverages or entertainment. have real rough time with this process. conferences, conventions and seminars Alberta Real Estate Association
The term “entertainment” covers a Consequently, accountants are may find some cumbersome
broad variety of events. It includes all obliged to treat the total expenses as interpretations. —The author assumes no responsibility
amusement and recreational expenses. 50% deductible. Where organizers fail to provide you whatsoever for any information given above
A few examples might include: The cost There are some exceptions, though. with a breakdown of costs, CCRA will because the purpose of this column is not
of tickets for a play, concert, athletic You are not required to reduce your deem that for each day of the meeting, intended to provide professional advice
event or other performance. claim by 50% if the food and beverage a total of $50 (subject to change from including, without limitations, investment,
Private box facilities at a sports event, are part of moving, child care, or time to time) has been incurred towards financial, legal, accounting or tax advice.
a hospitality suite to provide medical expenses. food, beverage and entertainment. And For specific advice, direction, help
entertainment, the cost of a cruise, Here’s another point that might this amount will be subject to the 50% applicable to your own situation please
admission to a fashion show, and surprise you. If your capitalized cost of limitation. always consult your professional advisor
expenses encurred entertaining guests any asset, such as the cost of The overall effect of all this is that specializing in the area of your needs.
at night clubs and athletic, social and equipment, inventory for resale, where everything was fully deductible Esmail Bharwani is a Certified General
sporting clubs are just further examples experimental development or before, now you must determine what Accountant and Senior Business & Income
of the activities that might fall under exploration expenses include food, does qualify. Tax Consultant operating as Esmail
this term. beverage or entertainment costs, then, You also have to figure the actual Bharwani Professional Corp. He can be
The cost of a hunting/fishing trip or 50% will be disallowed. after-tax cost. These changes call for a reached at 288-3234, or by e-mail at
even other kinds of vacation may be One of my clients found another revised strategy. You could try to select ebharwan@ucalgary.ca. His Web site
deemed as entertainment. interesting exception. He could not the type of entertainment that is fully address is www.ucalgary.ca/~ebharwan.
Remember, though, that these fully claim the cost of admission for a deductible. Esmail’s column appears weekly in the
expenses not only have to be incurred client to a series of amateur theatre Maybe your vacation could include a Calgary Real Estate News.
Environmental Site Assessments
As communities expand, industrial and commercial land is being re-developed, forcing us
to investigate current and past land use and business activities. New technology is
available for both prevention and clean-up. Due care is required in real estate investment
for realtors, buyers, sellers, bankers, insurance companies and other stakeholders.
Environmental Site Assessment can be carried out to evaluate the environmental
conditions of any property. A phased approach is usually adopted to assess properties.

Phase I Environmental Site Assessment


A phase I environmental site assessment (ESA) is a first step for detecting contamination
or potential environmental concern. It is carried out primarily to identify evidence of
actual or potential contamination on a property. This is a useful information collection
process that involved historical data review, site inspection, interviews and a written
report.

Phase I ESAs may assist in reducing uncertainty about potential environmental liabilities
and may be a basis for further investigation of the property. This first step may be
thought of as a preliminary risk survey providing valuable information about the
likelihood of potential environmental concern. Phase I ESAs may be used to make
informed decisions about property transactions, identify certain baseline environmental
conditions, assist in meeting regulatory requirements, and as an initial step in site
remediation.

The limitations of Phase I ESAs are that they do not involve test boreholes, soil tests, air
monitoring, material testing or other intrusive types of sampling or testing. Any
enhancement to Phase I ESAs should be stated by the assessor. All findings, including nil
findings, pertaining to the enhancement should be included in the report. Several Phase I
ESA Standards are used by consultants, including the CSA, ASTM etc.

Phase II Environmental Site Assessment


A phase II ESA should follow, to confirm the presence of contaminants if it is suspected
in the phase I ESA. The assessments make use of various sampling, analytical and
measuring techniques. Some are intrusive techniques such as soil and groundwater
sampling, and material testing, while others are non-intrusive such as ambient air
monitoring.

They are more expensive than phase I and required specialized capabilities. It is
important to point out that delineation of the full extent of any contamination encountered
is not the focus of phase II ESAs. In some cases, a Phase II ESA may be undertaken to
establish a quantitative baseline for environmental conditions at a site.

According to the CSA Phase I ESA Standard, it is not essential that a Phase I ESA be
completed prior to a Phase II ESA. In some cases, sufficient information exists regarding
contamination to proceed directly to a Phase II ESA. Unlike Phase I ESA, the scope,
duration, and cost of a Phase II investigation are highly dependent upon factors such as
methods used, the size of the site, the number, type, and identity of suspected
contaminants, the level of confidence desired in analytical results, and the environmental
matrices to be sampled. Phase II ESAs usually require contributions from specialized
environmental professionals. A CSA guideline for phase II ESA was released in 2000.

Phase III Envrionmental Site Assessment


Phase I and II ESAs are important step for remedial efforts that may follow. Phase III is
an investigation of feasible follow-up approaches to be carries out if phase II suggests
unacceptable levels of contamination. Clean-up itself is not considered to be part of the
assessment. Timing and costs of this phase vary widely.

Phase III ESAs should be performed whenever a Phase II ESA reveals contamination that
is either in contravention of local guidelines, Standards, and regulations, or considered
dangerous to human health, immediately or in the long term, or deemed unacceptable by
the Client for any other reason. The purpose of Phase III ESAs is to further delineate the
full extent of the contamination. Depending on the types of contaminants identified,
Phase III ESAs also vary in cost, duration, and scope.

Remedial Investigation
Where contamination exceeding the guidelines, Standards, or regulation was delineated,
Remedial Investigations studies are undertaken to develop remedies for unacceptable
levels or contamination. The investigation will identify the feasible approaches to remedy
the contamination, including in-situ monitoring, or risk management.

It will critically compare these approaches by considering factors such as risks to worker,
and the surrounding population, and economic and technical feasibility. It will also
determine the extent of remedial measures required and allow remediation costs to be
estimated. Remedial Investigations involve more interpretive procedures, and usually
have a limited field component. Cost of Remedial Investigation varies depending on the
location, type, and extent of the contamination.

Environmental Audit
Many financial institutions would approve loans to businesses and/or on properties,
conditional to environmental performance. An environmental audit can be performed at
any time to establish the current condition of the operation.

Environmental Audit is a systematic, documented verification process of objectively


obtaining and evaluating evidence to determine whether specific environmental activities,
events, conditions, management systems, or information about these matters conform
with environmental audit criteria, and communicating the results of this process to the
stakeholders. Auditing standards include CEAA, Western Canadian Facility Auditing
Round Table, etc.
Others
There are also others terms commonly used by professional environmental assessors
which are not mentioned here, such as phase IV, V, Environmental Screening, Review,
Environmental Impact Assessments etc. Please contact your environmental consultant to
assist you in the transaction.

Thomas Ha, MAEG., P.Geol.(AB), P.Geo.(B.C.), CESA, is a real estate practitioner and
an Accredited Environmental Consultant with Troy Real Estate Ltd./Troy Environmental.
He can be reached at (403)282-2178 or hat@cadvision.com
Formeldehyde wall filling causing
health problems years later
W
hen homes were first built in other chemicals, building materials, pre-
Alberta, there was a variety of
insulations used in the outside Environmental servative, permanent press fabrics,
paper product coatings and especially
walls, varying from nothing more than
an empty air space to a cavity filled with
sawdust, shredded newspaper, vermicu-
Tips in the Home glues.
These products include particle boards
of all types, including sub-flooring, pan-
lite, etc. eling, kitchen cabinets, moldings, and
Many of these products settled over the Stan Leece wood finishes.
years leaving little insulation in these It is also used in cosmetics, deodorants,
walls. Exposure to formaldehyde has been shampoos, fabric dyes, inks and disinfec-
During the “energy crisis” of the late shown to cause cancer in animals and tants. Mobile homes, motor homes and
’70s the government promoted the use of may cause cancer in humans. travel trailers are known for high
UFFI (Urea foam formaldehyde insula- UFFI was banned in Canada in 1980 amounts of formaldehyde because so
tion) as an insulating product for these because of the perceived health hazards many of the components are made from
types of poorly insulated homes. associated with it. Almost all of the particle board or pressed wood products
It could be easily pumped into the cav- homes in Alberta that were insulated containing formaldehyde.
ities of walls by cutting holes 16 inches with UFFI have had it removed. Did you ever notice when you’re in a
apart in the outside or inside wall and Has the problem gone away? new home that it has a distinct “new
would expand to solidify inside. No. Formaldehyde is found virtually home” smell? Guess what it is.
Then it was discovered that formalde- everywhere, indoors and out, naturally
hyde could cause health problems, occurring and man-made.
including burning sensations in the eyes, It is a combustion product found in cig- — Stan Leece is an instructor for the
nose and throat, nausea, coughing, chest arette and wood smoke, natural gas, Alberta Real Estate Association for
pain, wheezing, skin rashes, dermatitis, kerosene, automobile exhaust and incin- Environmental courses and a real estate
sleeping difficulties, bronchitis, fatigue erators. agent with Sutton Group Canwest. He can
and decreased lung capacity. It is widely used in the manufacture of be reached at 208-7788.
Leaded fuel problems persist

Gassing up used to mean getting gassed

For about 57 years, tetra-ethyl lead was used as an additive in gasoline to prevent
“pinging” or engine knock in high compression vehicles. Although lead was eliminated
as an additive in 1986 (with the exception of specialty racing fuels), the emissions from
automobile exhaust dumped four to five million metric tons of lead particles into the soil.

The experts argue whether lead from gasoline is more or less harmful to children than
lead from paint. The reality is that lead from paint and gasoline are both harmful
especially when exposure to both occurs. A study in the United States found that in areas
like Manhattan (mostly concrete with very little of the soil exposed and almost all of the
buildings painted with lead-based paint), between 5% to 7% of the children had blood-
lead levels higher than 10 micrograms per decilitre.

Across the river in Brooklyn, where yards are more commonly soil and grass, the
percentage of children with levels higher than 10 micrograms per decilitre was
30%. Levels over 10 micrograms per decilitre are considered by the government to be too
high. In playgrounds next to high traffic areas such as freeways, it was found that the
levels of lead in the soil were much greater than in low traffic areas. It was also
discovered that by covering playground areas with rubber matting, the level of lead
exposure was significantly reduced.

Lead can also contaminate the soil through underground leakage, as is alleged in the
Lynnwood Ridge situation. When the refinery was located at that site, lead was an
additive to gasoline. For information and results of testing on the Lynnwood Ridge as it
becomes available, go to www.gov.calgary.ab.ca and click on Lynnwood Ridge.

Lead poisoning is more dangerous to children than adults because they play in the lead-
laden soil, they put things in their mouths, their growing bodies absorb more lead
and their brains and nervous systems are more sensitive. Lead poisoning can cause
damage to the brain and nervous system, behavior and learning problems, slowed growth,
hearing problems and headaches.

If you suspect high blood-lead levels in your children you should talk to your doctor or
health centre.

Stan Leece is an instructor for the Alberta Real Estate Association for Environmental courses
and a real estate agent with Sutton Group Canwest.
He can be reached at 208-7788.
House paint dangerous if disturbed

Planning a renovation? If your home was built prior to 1980 there’s a good chance the
paint could contain lead. Lead was used as a pigment in the mid-40s in many paints.
The lead content in these paints could be as high as 50% by weight. In 1976, the
Canadian Government limited the amount of lead in paint to .5% by weight.

If you sand or scrape paint that contains lead, the dust particles created can be ingested or
inhaled and enter and poison the blood stream. Lead is especially harmful to children, and
exposure can harm babies even before they are born. It’s estimated that one in 11 children
have dangerous levels of lead in the bloodstream.

Lead is more dangerous to children than adults because children often put things in their
mouths that may have lead dust on them, and their growing bodies absorb more lead and
their brains and nervous systems are more sensitive.

Lead can cause damage to the brain and nervous system, cause behavior and learning
problems, slow growth and create hearing problems and headaches. In adults, lead can
cause difficulties during pregnancy, damage other reproductive functions, cause high
blood pressure, digestive problems, nerve disorders, memory and concentration problems
and muscle and joint pain.

There was a case in Medicine Hat years ago where the owners were renovating and
sanding lead-based paint off the walls of their 1914 home when their children became
ill. The young children had been inhaling the lead paint dust and flakes. After reading an
article about lead poisoning in a U.S. magazine, the parents took the children to the
hospital emergency ward and learned that the lead in their blood was over double the safe
limit.

So what should you do if you suspect lead paint is in your home?


Lead paint in good condition is not a hazard. It becomes dangerous only if disturbed by
scraping or sanding. If the paint is peeling or falling off, have it removed by a
professional. You should consider moving the family out of the home during
renovations, especially if there are young children or pregnant women.

If the paint is in good condition you can encapsulate it with a newer non-leaded
paint. You could also have the paint tested to find the lead content. There are many
Calgary laboratories that will test for lead in paint, and the cost is approximately $55.
If you want to have your children tested, your doctor can determine the level of lead in a
blood sample.

Stan Leece is an instructor for the Alberta Real Estate Association for Environmental courses
and a real estate agent with Sutton Group Canwest.
He can be reached at 208-7788.
Learning more about taxation pays
F
or many, family financial planning tion of the funds. The will may also be
efforts are incomplete because most
people do not put in enough
thought or time to the concept. Let me
Family Financial deficient because it does not meet the
requirements of foreign jurisdictions.
Please remember: Any professional
highlight a few of the aspects for your
consideration:
Planning executor will ultimately report anything
and everything he or she may find legal-
• Consider owning a life insurance pol- ly necessary before making distribution.
icy, term plan, if only to cover unexpect-
Esmail Bharwani • Do not tie up all your money in a
ed tax liabilities and security of the long-term investment with no rights for
family.
If you are looking for more than that,
such as a savings vehicle and a tax
Planning your an early redemption or with no ability
to liquidate when funds are needed.
Many are now stuck with huge
break on investment income, there are
other plans like universal life. But do
look into it carefully, they’re not suit-
family finances amounts of cash in the stock market. If
they needed funds now, or their estate
became involved, certain decisions
able for everyone. would have to be made whether finan-
• Purchase a proper disability insur-
ance that provides a good income in
encompasses cially sound or not.
Purchase staggered maturities, so liq-
the event of disability arising from uidity is guaranteed. Diversify your
sickness or injury.
When buying the policy, it is impor-
tant to understand the definition
many aspects portfolio so the marketability, without a
substantial loss or perhaps, with some
gain, may become feasible.
(wording) of the word “disability.” Does can act on behalf of the other spouse. • Think of your needs now and in the
it require you to obtain any gainful • Consider making a “living will,” future. Think of your family and adult
employment or to work just in your spe- which provides closer relatives the abili- childrens’ needs now and for the future.
cific profession, vocation or trade? ty to make a decision on your behalf in Conduct asset allocation and share
I have seen cases where, despite the the event of a life-threatening illness or your funds with the children now. Don’t
policy, the insured party has remained injury or a lack of mental competency for wait until you die. Your children can use
without compensation because they are whatever reason. funds better now when they need them
able to do some other type of work. • Select your accountant, lawyer, the most.
• If you personally pay the premium, executor, broker, and any other special- To give them money when they are
there should be no tax implication, but if ists that you consider your family may self-sufficient and have enough of their
you allow your employer to pay your need to consult during your illness or own may not be as well appreciated.
premiums, expect to pay taxes on the after death. The above provides food for thought.
benefits when received. Establish relations and introduce fami- Seek proper professional consultation
• If you have an incorporated business ly members to them so that they are with experts in each of the areas.
with a large amount of retained earnings, familiar with these individuals.
do not wind up the company once you • Work on estate equalization plan to This article was previously published
have sold out the assets. Use the corpo- make sure that on you and your spouse’s in the Calgary Herald
ration to pay dividends to shareholders death that your children will not feel
over time. cheated. —The author assumes no responsibility
Income splitting can come very handy You may select specific bequest for whatsoever for any information given above
at that time with a lot of savings in taxes. some but do ensure that it is equalized in because the purpose of this column is not
A good consultation is necessary. other ways. intended to provide professional advice
• If you have personal guarantees with • The will does not address every including, without limitations, investment,
banks or suppliers, make sure you obtain detail. Write a letter of instruction that financial, legal, accounting or tax advice.
your original guarantee documents back explains your ultimate wishes in more For specific advice, direction, help applicable
and eliminate any evidence of guarantee details. Although not legally binding, it to your own situation please always consult
anywhere. helps clarify issues. your professional advisor specializing in the
• Ensure your house mortgage is paid • Work on saving probate fees. Consult area of your needs. Esmail Bharwani is a
out first. Your shelter should not remain someone that can help you with the plan. Certified General Accountant and Senior
encumbered in your retirement. Promise • For those who have money outside Business & Income Tax Consultant operat-
yourself never to borrow against the the country, hidden away from authori- ing as Esmail Bharwani Professional Corp.
house closer to retirement. ties, think hard about what might hap- He can be reached at 288-3234, or by e-mail
• It would be worth your while consid- pen to it if no one knows about it. at ebharwan@ucalgary.ca. His Web site
ering one spouse to grant a power of There are people who leave the estate address www.ucalgary.ca/~ebharwan.
attorney to the other and vice versa. behind in foreign countries without the Esmail’s column appears weekly in the
In the event of necessity, one spouse family knowing anything about the loca- Calgary Real Estate News.
Legal, Illegal and Non-Conforming Suites
The following information is supplied to assist the real estate industry and is intended as
general information only. It is based on the City of Calgary Land Use Bylaw (2P80) and
The Municipal Government Act, which are to be consulted for specific rules and
definitions.

This information has been simplified and should not be interpreted as conclusive or
comprehensive.
Each property and situation is unique. The following gives a description of the three
different categories of suites:

Legal
These suites were constructed with proper permits and met all the rules at the time they
were constructed and these suites still meet the present day rules. They may also have
been approved on a development permit allowing relaxation of the rules.

Illegal
These suites were built illegally without all the required permits or did not meet the rules.
We often hear of these suites referred to as “mother in law” suites.

Non-Conforming
These suites were built legally at the time of construction however; they do not meet the
present day rules. These are usually the result of the land use (zoning) being changed or
the rules being changed. This term is often referred to as “legal” non-conforming
because they are considered to be legal. This status may be lost if a building is destroyed
or damaged to more then 75% of its value or if the use is discontinued for more than 6
months.

The bylaws controlling private property have changed over the years. These changes
have also included changes to the rules and definitions.

Without getting into a long involved legal discussion it is best to simplify the changes
that have occurred and the way the City of Calgary enforces the rules:

Prior to 1970:
The courts have determined that anything constructed or in use prior to 1970 is
considered to be non-conforming.

1970-1983
The bylaws in effect at that time said the cooking facilities such as a stove, 220 volt
wiring, hot plate, microwave oven or toaster oven) were not allowed in a basement suite.

…/2
Page 2

1983 to present:
The current bylaws (Calgary Land Use Bylaw 2P80) say that a kitchen (cooking facilities
as above, and also sinks, lower cabinets and counter tops) is not allowed in a basement
suite.

There are many ways you can determine the age of a suite such as contacting previous
owners; interviewing neighbors; judging the age of fixtures, moldings, cabinets, wiring,
etc.

The City of Calgary responds to complaints about illegal suites and inspects these
properties to see if there is a violation of the Land Use Bylaw. Our Development Field
Technicians, through their investigations, determine the date of construction and apply
the rules as listed above. If a violation is found, the property owners are required to
remove either the full kitchen or just the cooking facilities. If the owners fail to comply,
legal action is taken against them.

The City of Calgary will not inspect properties for the benefit of lawyers, realtors, or
perspective buyers to determine the legal status of a suite, nor will the City give a “letter
of comfort” for this purpose.

A common misunderstanding occurs with R-2 properties. In order for two suites to exist,
the rule states that the property must have a minimum 15-metre frontage AND 466 Sq
Metres of lot area.

Should you require any further information concerning this subject or other information
from the Land Use Bylaw you may phone 268-5351

Based on the City of Calgary Land Use Bylaw (2P80)


and provided by CREB Member Stan Leece of Sutton Group Canwest
PCB’s airborne permanently until burnt It is important to remember that during a burn.
C40
Even Environmental everyone is likely to have detectable
amounts of PCB’s in their blood, fat and
Partially incinerated PCB’s were
released into the environment, and

without Tips in the Home breast milk. The blood test can
determine if you have a dangerous
level. Exposures are measured in
that’s when PCB’s are most dangerous.
Although most of the wildlife in its
path was killed, no humans were

being made Stan Leece


milligrams of PCB per kilogram of
body weight per day.
harmed because of the remote location
of the plant. You may also remember
the sale of the old Firestone plant where
for over 20 been exposed only to PCB’s showed
effects of liver damage, cancer,
reproductive and developmental
How are PCB’s destroyed?
PCB’s do not decompose under
many barrels of PCB’s were discovered
on site. The litigation went on for
many years.
years, toxic problems. normal circumstances and can be
destroyed only by incineration at
If you have any questions on this or
any other environmental topic, I can be

leakant still Can I be tested for PCB’s


There are blood tests that can
extremely high temperatures (over 2000
degrees). Swan Hills is the location of
one such facility. You may have read
e-mailed at stan@creb.com

— Stan Leece is an instructor for the

lingers determine how much PCB’s are in a


person’s body.
several years ago of an incident at Swan
Hills when the furnace malfunctioned
Alberta Real Estate Association for
Environmental courses and a real estate
agent with Sutton Group Canwest. He can
A be reached at 208-7788.
U What are PCB’s?
G
PCB is the abbreviation for
U polychlorinated biphenyls, a
S family of man-made chemicals
that contain 209 different
T compounds of varying toxicity.
PCB’s were used as coolants
• and insulators in transformers,
capacitors and other electrical
3 and hydraulic equipment. In
• older fluorescent fixtures, the
ballasts contained PCB’s, which
often leaked.
2 The United States discontinued
0 manufacturing of PCB’s in 1977
because evidence showed they
0 may cause health hazards to
1 humans.
However, much of the older
equipment is still out there being
used. PCB’s can travel in various
ways from being eaten by fish,
attaching itself to dust particles
and being carried by the wind or
evaporated and returned to
earth by rainfall.
They can travel great distances
once in the air and have been
found as far away as Antarctica. This everyday power transformer was packed with toxic PCB’s before manufacturer’s
Condominiums

stopped making them in 1977. The PCB’s were used as coolants and insulators in many
How can PCB’s be released electrical devices, and they can still be a danger to humans without proper care.
into the environment?
• By poorly maintained toxic waste
sites
• By illegal dumping
• By improper dumping (dumping
fluorescent fixtures in a municipal
landfill rather than a hazardous waste
landfill site)
• By leaks from transformers or other
electrical or hydraulic equipment

How can PCB’s enter my body?


PCB’s can enter your body through
contaminated food, air or skin contact.
The most common exposure is by
eating contaminated fish. Almost
everyone has some degree of PCB’s in
their body, including infants who drink
breast milk containing PCB’s.

Are PCB’s a health risk?


As with many substances, the exact
cause(s) of different cancers is difficult
to determine, especially if there has
been exposure to multiple substances. ®

However, tests on animals that have


PCB’s airborne permanently until burnt It is important to remember that during a burn.
C40
Even Environmental everyone is likely to have detectable
amounts of PCB’s in their blood, fat and
Partially incinerated PCB’s were
released into the environment, and

without Tips in the Home breast milk. The blood test can
determine if you have a dangerous
level. Exposures are measured in
that’s when PCB’s are most dangerous.
Although most of the wildlife in its
path was killed, no humans were

being made Stan Leece


milligrams of PCB per kilogram of
body weight per day.
harmed because of the remote location
of the plant. You may also remember
the sale of the old Firestone plant where
for over 20 been exposed only to PCB’s showed
effects of liver damage, cancer,
reproductive and developmental
How are PCB’s destroyed?
PCB’s do not decompose under
many barrels of PCB’s were discovered
on site. The litigation went on for
many years.
years, toxic problems. normal circumstances and can be
destroyed only by incineration at
If you have any questions on this or
any other environmental topic, I can be

leakant still Can I be tested for PCB’s


There are blood tests that can
extremely high temperatures (over 2000
degrees). Swan Hills is the location of
one such facility. You may have read
e-mailed at stan@creb.com

— Stan Leece is an instructor for the

lingers determine how much PCB’s are in a


person’s body.
several years ago of an incident at Swan
Hills when the furnace malfunctioned
Alberta Real Estate Association for
Environmental courses and a real estate
agent with Sutton Group Canwest. He can
A be reached at 208-7788.
U What are PCB’s?
G
PCB is the abbreviation for
U polychlorinated biphenyls, a
S family of man-made chemicals
that contain 209 different
T compounds of varying toxicity.
PCB’s were used as coolants
• and insulators in transformers,
capacitors and other electrical
3 and hydraulic equipment. In
• older fluorescent fixtures, the
ballasts contained PCB’s, which
often leaked.
2 The United States discontinued
0 manufacturing of PCB’s in 1977
because evidence showed they
0 may cause health hazards to
1 humans.
However, much of the older
equipment is still out there being
used. PCB’s can travel in various
ways from being eaten by fish,
attaching itself to dust particles
and being carried by the wind or
evaporated and returned to
earth by rainfall.
They can travel great distances
once in the air and have been
found as far away as Antarctica. This everyday power transformer was packed with toxic PCB’s before manufacturer’s
Condominiums

stopped making them in 1977. The PCB’s were used as coolants and insulators in many
How can PCB’s be released electrical devices, and they can still be a danger to humans without proper care.
into the environment?
• By poorly maintained toxic waste
sites
• By illegal dumping
• By improper dumping (dumping
fluorescent fixtures in a municipal
landfill rather than a hazardous waste
landfill site)
• By leaks from transformers or other
electrical or hydraulic equipment

How can PCB’s enter my body?


PCB’s can enter your body through
contaminated food, air or skin contact.
The most common exposure is by
eating contaminated fish. Almost
everyone has some degree of PCB’s in
their body, including infants who drink
breast milk containing PCB’s.

Are PCB’s a health risk?


As with many substances, the exact
cause(s) of different cancers is difficult
to determine, especially if there has
been exposure to multiple substances. ®

However, tests on animals that have


Planning finances encompasses many aspects
whatever reason. If they needed funds now or their
With a little Family Financial • Select your accountant, lawyer,
executor, broker, and any other
estate became involved, certain
decisions would have to be made
specialists that you consider your whether financially sound or not.
preparation Planning family may need to consult during your
illness or after death. Establish relation
Have staggered maturities, so
liquidity is guaranteed. Diversify
Esmail Bharwani and introduce family members to them portfolio so the marketability without a
and execution, so that they are familiar with these
individuals.
substantial loss or, perhaps, with gain
may become feasible.
without compensation because they are • Work on estate equalization plan to • Think of your needs now and in the
wealth can be able to do some other type of work.
If you personally pay the premium,
make sure that on your and your
spouse’s death children will not feel
future. Think of your family and adult
childrens’ needs now and in the future.
there should be no tax implication, but cheated. You may select specific Conduct asset allocation and share

achieved if you allow your employer to pay your


premiums, expect to pay taxes on the
benefits when received.
bequest for some but do ensure that it is
equalized in other ways.
• The will does not address every
your funds with the children now.
Don’t wait until you die. Your children
can use funds better when they need

F
or many, family financial planning • If you have a incorporated business detail. Write a letter of instruction that them the most.
efforts are incomplete, although with a large amount of retained explains your ultimate wishes in more To give them money when they are
the planning is so important to earnings, do not wind up the company details. Although not legally binding, it self-sufficient and have enough of their
them, because they do not give enough once you have sold out the assets. helps clarify issues. own may not be as well appreciated.
thought or time to the concept. Let me Use the corporation to pay dividends • Work on saving probate fees. The above provides food for thought.
highlight a few of the aspects for your to shareholders over time. Income Consult someone to help you out with Seek proper professional consultation
consideration: splitting can come very handy at that the plan. with experts in each of the areas.
• Consider owning a life insurance time with a lot of saving in taxes. A • For those who have money outside
policy or term plan, if only to cover good consultation is necessary. the country hidden away from This article was previously
unexpected tax liabilities and security • If you have personal guarantees authorities, think hard about what published in the Calgary Herald
of the family. with banks or suppliers, make sure you might happen to it if no one knows
If you are looking for more, such as a obtain your original guarantee about it. —The author assumes no responsibility
savings vehicle and a tax break on documents back and eliminate any Lots of people leave the estate behind whatsoever for any information given above
investment income, there are other evidence of guarantee anywhere. in foreign countries without the family because the purpose of this column is not
plans such as universal life. But do look • Ensure your house mortgage is paid knowing anything about the location of intended to provide professional advice
into it carefully, they are not suitable for out first. Your shelter should not remain the funds. including, without limitations, investment,
everyone. encumbered in your retirement. The will may also be deficient because financial, legal, accounting or tax advice.
• Purchase a proper disability Promise yourself never to borrow it does not meet the requirements of For specific advice, direction, help
insurance that provides a good income against the house closer to retirement. foreign jurisdictions. applicable to your own situation please
in the event of disability arising from • It would be worth your while Please remember, any professional always consult your professional advisor
sickness or injury. considering for one spouse to grant a executor will ultimately report specializing in the area of your needs.
When buying the policy, it is so power of attorney to the other and vice anything and everything he or she may Esmail Bharwani is a Certified General
important to understand the definition versa. In the event of necessity, one find legally necessary before making Accountant and Senior Business & Income
(wording) of the word “disability.” spouse can act on behalf of the other distribution. Tax Consultant operating as Esmail
Does it require you to obtain any spouse. • Do not tie up all your money in a Bharwani Professional Corp. He can be
gainful employment or to work just in • Consider making a “living will” long-term investment with no rights to reached at 288-3234, or by e-mail at
your specific profession, vocation or that provides closer relatives to take a an early redemption. ebharwan@ucalgary.ca. His Web site
trade? decision on your behalf in the event of Or, with no ability to liquidate when address www.ucalgary.ca/~ebharwan.
I have seen cases where despite the your life-threatening illness or injury or funds are needed. Many are now stuck Esmail’s column appears weekly in the
policy, insured persons have remained a lack of mental competency for with huge amounts in the stock market. Calgary Real Estate News.
It’s there, even if you can’t see or smell it

Radon Gas kills 14,000 people every year. Those are the statistics in the U.S. Almost as
many people are killed by Radon as those killed in drunk driving accidents. The Surgeon
General of the United States has issued this advisory: Indoor Radon Gas is a national
health problem. Radon causes thousands of deaths each year. Millions of homes have
elevated Radon levels. Most homes should be tested for Radon. When elevated levels are
confirmed, the problem should be corrected.

Breathing Radon Decay Products causes lung cancer and the only thing that causes more
cancer deaths than Radon is cigarette smoking. The areas shown in dark orange on the
map show the highest levels in the U.S.

Radon levels are measured in picocuries per litre (pCi/L), and these areas have over 4
pCi/L; 4 piC/L is the level that almost all states have established as a “safe” level. The
EPA recommends remediation if the level exceeds 4 pCi/L. A family whose home has
Radon levels of 4 pCi/L is exposed to approximately 35 times as much radiation as the
Nuclear Regulatory Commission allows if they were standing next to a fence of a
radioactive waste site.

Does Radon Gas occur in Alberta?


Absolutely, but relatively few tests are done because it’s not required. The U.S. map (see
chart below) shows the highest levels are along the 49th parallel. Montana has levels as
high as 7.0 and Idaho reaches 7.3.

The Radon doesn’t disappear as you cross the border, but the testing of Radon certainly
does. The only tests I’ve heard of in Calgary were done as a result of buyers relocating
from the U.S. and the relocation company demanding that a Radon Test be done. In the
U.S, Radon Gas Tests are about as common as Real Property Reports or Property
Inspections.

Thousands of tests are done every week, but in Canada, most people don’t even know
what Radon is.

What is Radon?
Radon is a naturally occurring, invisible, odourless, tasteless and radioactive gas created
from the decay of Uranium. Uranium occurs naturally in the Earth's crust. The problem
occurs when Radon Gas enters a home through cracks or holes in the basement floor or
walls. It attaches itself to dust particles in the air and can then be inhaled into the lungs.

How can I tell if Radon is present in my home?


It’s invisible, odourless and tasteless. The only way to detect it’s presence is to test for it.
How can I test for Radon?
I have managed to find only one company in Alberta that tests for Radon. If there are
others, please send me the information and I will have it published in a later issue. The
company is Stuart Hunt and Associates. They offer two different testing methods for
Radon Gas.

The Activated Charcoal method takes 24-48 hours sampling time and must be analyzed
within 24 hours for best results. The cost is $45 per canister. Similar tests are available
from the U.S. but have not been reliable because of time delays at the border. The Alpha
Tech Etch method takes longer (10 days sampling and two weeks for results) costs more
at $70 per monitor, but provides more accurate results.

You can call Stuart Hunt and Associates at 780-458-0291, Toll Free at 1-800-661-4591,
or check out their Web site at www.stuarthunt.com.

What can I do if I the tests show Radon in my home?


Most remediations are relatively cheap and easy, but should still be done by a
professional.

Sealing any cracks in the floor and foundation is a good start, but will not necessarily
solve the problem 100%.

Ventilation, pressurization, depressurization are possible solutions, but you should have
an expert perform the work. The type of remediation is determined by many factors,
including method and point of entry, soil conditions, etc. Items as simple as an electronic
air cleaner or HEPA filter will greatly decrease the amount of dust in a home and
therefore the vehicle which Radon uses to enter the lungs.

If you need more information on Radon, please email me at stan@creb.com and I’ll be
happen to give you more information or answers to specific questions.

Stan Leece is an instructor for the Alberta Real Estate Association for Environmental courses
and a real estate agent with Sutton Group Canwest.
He can be reached at 208-7788.
Copyright British Columbia Real Estate Association. Reprinted with permission.
The Gross Rent Multiplier - One of the Realtor's
Best Tools
By Steven Coull, Director of Education, Canadian National Association of Real Estate
Appraisers

As a Realtor you are often faced with the problem of trying to determine the market value
of a small income producing property. The duplex, the triplex, the quad, the small
building with a retail store below with two apartments above, etc. With minimal MLS
research and a just a dose of simple math it is actually quite easy to calculate at a basic
market value range.

You have probably heard the expression “8 times gross” or “9 times gross”, as applied to
income properties; but, what does that actually mean? 8 or 9 times gross are basic
multipliers, and are very basic. These multipliers are used by investors and appraisers
alike throughout North America for smaller, income producing properties. The Gross
Income Multiplier or GRM is an easy tool for real estate valuation.

Here are the simple steps:

1) From your local MLS data system pull down five or six sales of properties similar to
the one you want to value.
2) Ensure that they have similar number of units and are in approximately the same
condition and location.
3) Find the stated gross annual income or the gross monthly income.
4) Simply divide the sale prices by the annual gross income.
5) Congratulations - you now have five or six GRM to apply to the property you are
trying to value.
6) Using the best of the comparable GRM, apply the multiplier to the gross income of
your potential listing and you have a good idea of the value.

No matter whether you use the annual income or the monthly income, do the same for
each of the sales you have analyzed. You will then have a range of multipliers. Look for a
trend or group that is close together, or simply take an average of the five or six that you
have. Then take the multiplier you have chosen and multiply it by the gross annual
income (or gross monthly rent) of your subject property, and like magic you have the
approximate market value.

Seems like a lot of work? Actually it takes only a few minutes. You should also consider
going to have a look at each of the sales to get a good feel for their overall condition and
location. This will give you a better idea of which is most similar to your subject and
therefore allow you to hone in on the market value. The reason that a GRM is effective is
that seldom will true expenses be listed on MLS and therefore, more sophisticated means
of value, such as the derivation of capitalization rates (subject of a later article) cannot be
used, due to a lack of adequate and reliable data.

Finally, you have to be comfortable on a listing price to suggest to your client. Remember
that the closer you are to the market value, the better chance you have to sell quickly. And
most importantly, the first exposure to the market is the best one. With a little research
and math you can take best advantage of that valuable first time on the market.

Steven Coull holds the professional designations IFAS and DAC. He is the Director of
Education of the Canadian National Association of Real Estate Appraisers and an
instructor for the Real Estate Institute of Canada. Steven lives on Vancouver Island 888-
399-3366 or e mail scoull@nanaimo.ark.com
Underground Petroleum Storage Tank Site Remediation Program
In 1992, the Government of Alberta introduced a new Alberta Fire Code that requires all petroleum storage
tanks to be upgraded to minimize the risk of leakage. The requirement to remediate contaminated sites have
resulted in hardship to owners of fuel facilities. Recognizing these hardship, the Government Alberta has
developed this program to financial assistance to remediate contaminated sites related to fuel storage.

The objective of the program is to protect public health, safety and environment. The program comes into
effect in October of 2000, with the first phase ending March 31, 2002, which is limited to completion of
environmental site assessments and the required remediation work at the Municipal tax recovery tank sites
and single facility fuel retail sites. The first phase also includes limited funds for reimbursement of actual
costs incurred by those single facility owners who have remediated their sites since 1992.

Up to $10,000 per facility will be available for accredited environmental site assessments conducted on
eligible facilities. Up to $100,000 per facility will be available for remediation of all eligible facilities.
Only eligible costs will be covered. Details of this program and application forms can be obtained by
contacting:

The Petroleum Tank Remediation Program


Alberta Municipal Affairs
14th floor, Commerce Place,
10155 – 102nd Street,
Edmonton, Alberta T5J 4L4
Telephone: 1-866-833-3300

prepared for CREB by


Thomas Ha, MAEG., P.Geol.,
Troy Environmental and Real Estate Ltd.
PTMAA Accredited Environmental Consultant
282-2178