Selling a home is a big decision, and you may be weighing whether to sell your house to a home buying company in Edmonton. This article explains, in plain language, how that kind of sale works from first contact to closing, so you know what to expect and what to ask. It is general education only, not legal, tax or financial advice. For advice about your own situation, please speak with a licensed professional.

What does it mean to sell your house to a home buying company in Edmonton?

A home buying company purchases homes directly from owners, rather than helping you find another buyer. That is why people often describe it as a way to sell a house without listing it: there is no sign on the lawn, no open houses, and no agent between you and the buyer.

Listing with a real estate agent works differently. Your agent markets the home to the public, and each buyer who makes an offer has their own agent, lender and conditions. Neither route is right for everyone. They are simply different, with different trade-offs in effort, privacy and flexibility.

A note on Alberta rules. The Real Estate Council of Alberta (RECA), the provincial regulator, says that people who help others buy or sell a home must be licensed, while someone buying or selling a property for themselves does not need a license. So it is reasonable to ask any company how it operates, and if a licensed professional is involved, you can check their license with RECA's ProCheck tool.

How does selling to a home buyer work, step by step?

The details differ from company to company and from one situation to the next, but the general path looks like this.

1. First contact. You reach out by phone or through a form (our Contact page is one place to start). You will usually be asked basic questions: the address, the type of home, its general condition, and whether there is a mortgage on it. Reaching out does not commit you to anything.

2. A look at the home. The company may ask for photos or arrange a visit so it can understand the property. Be open about anything you know about the home, including repairs that are needed.

3. A written offer. If the company wants to proceed, it presents an offer. Read it carefully, and take the time you need to think, ask questions and compare it with other options.

4. The purchase agreement. If you decide to go ahead, you and the buyer sign a purchase agreement. This is the legal contract that sets out what is being sold, the price, the closing date and any conditions. Please have a lawyer review it before you sign (more on that below).

5. Lawyers and title work. Lawyers on each side handle the legal steps. These typically include searching the property's title, arranging for any existing mortgage to be paid out and removed, and registering the Transfer of Land with the Land Titles Office, the provincial office that records who owns property in Alberta.

6. Closing. Closing is the day ownership passes to the buyer. Money moves through the lawyers, you receive your funds as set out in the agreement, and you hand over the keys.

You can read more about our process on the How It Works page.

What to have ready before you reach out

You do not need everything on this list to start a conversation, but gathering it can make the process smoother and help you ask better questions.

• The property address, and who is named on the title. If the home has more than one owner, co-owners will generally need to be part of the decision.

• Details about your mortgage, if you have one, such as the lender's name. Your lender can tell you what is needed to pay it out.

• A list of known issues or repairs, and anything you plan to leave or take with you.

• Any documents you already have, such as a Real Property Report or a recent property tax notice.

• The name of a lawyer you would like to work with, or a plan for finding one.

Common terms, explained in plain language

Paperwork can come with unfamiliar words. These are the ones you are most likely to see.

• As-is. The buyer agrees to purchase the home in its current condition, and you are not agreeing to make repairs. It does not necessarily remove all of a seller's responsibilities, so ask your lawyer what the as-is wording means in your specific agreement.

• Purchase agreement. The signed contract between you and the buyer. In Alberta, many residential sales use a standard contract form produced by the Alberta Real Estate Association (AREA), though a company may use its own. Either way, read every page.

• Conditions. Requirements that must be met, or waived by the person they protect, before the contract is firm. Ask whether the agreement has any, and what happens if one is not met.

• Title. The official record of who owns the property, along with any mortgages or other claims registered against it.

• Mortgage discharge. Paying out your existing mortgage so it is removed from the title. Your lawyer usually arranges this at closing.

• Real Property Report (RPR). A land surveyor's drawing showing where the buildings sit on the lot. Ask whether one is needed for your sale and who arranges it.

• Closing (or completion) date. The day ownership transfers to the buyer. It is written into the purchase agreement.

What can you ask before agreeing to anything?

You are allowed to ask questions at every stage, and to ask for answers in writing. Here are some to consider.

• Is the company buying the home itself, or could the contract be passed to someone else?

• Who, if anyone, is acting as a licensed real estate professional in this deal, and who do they represent?

• Are there any fees, costs or deductions that would come out of what I receive? Can I see them in writing?

• Who pays for the lawyers, title work and other closing costs?

• What exactly does the as-is wording say?

• Does the agreement have conditions? What happens if they are not met?

• Is a deposit involved, and who holds it?

• Can I cancel after signing? If so, how, and are there consequences?

• Who chooses the closing date, and can it change?

• What should be left in the home, and what should I take?

• How and when will I receive my funds?

If an answer is unclear, ask again or bring the question to your lawyer. Feeling unsure is a good reason to slow down, not a reason to sign.

Why have a lawyer review the paperwork?

We suggest having a real estate lawyer review the purchase agreement before you sign it, whoever the buyer is. Once signed, it is a binding contract, and a lawyer can explain in plain terms what you would be agreeing to.

Lawyers also handle much of the behind-the-scenes work. According to LawNow, a public legal education magazine from the Centre for Public Legal Education Alberta, a Transfer of Land must be registered with the Land Titles Office when a property changes hands, and lawyers help with title searches and review of documents such as the purchase agreement and Real Property Report. Many lenders also require a lawyer to handle a transaction when a mortgage is involved.

Three practical tips:

• Choose your own lawyer, one who works for you, and ask whether they are acting only for you.

• Ask for the review before you sign, not after.

• Bring your questions list from the section above.

The Law Society of Alberta, which regulates lawyers in the province, is a good place to start if you need help finding one. For questions about taxes, speak with an accountant or tax professional. For questions about your mortgage or wider finances, speak with your lender or a licensed financial professional.

Is this the right option for you?

Only you can decide that. Selling to a home buying company, listing with an agent, or selling privately can each suit different circumstances, and it is fine to compare them before choosing. Give yourself room to think, ask questions, and get independent advice.

If you would like to talk through how the process works for your home, you are welcome to contact We Buy Edmonton Houses. We serve the Edmonton area, and a conversation does not obligate you to anything.

This article is general information only. It is not legal, tax or financial advice, and laws and practices can change. Please consult a licensed professional about your own situation.

Sources

• Real Estate 101: What You Need to Know as a Consumer, Real Estate Council of Alberta

• Selling a Home, Real Estate Council of Alberta (ProCheck licence lookup)

• Can You Buy a Home Without a Lawyer in Alberta?, LawNow Magazine, Centre for Public Legal Education Alberta