People Involved in a Real Property Transaction

Realtors

Realtors (or real estate agents) are in the business of bringing buyers and sellers together. People are free to sell their property without the aid of realtors, but most sellers choose to list their homes with a real estate agency. The realtor advertises houses listed for sale and brings prospective buyers to see them.

Normally, a realtor is paid by the seller (or vendor) of the property-not the buyer. Realtors are usually paid by commission-often 5 to 7 percent of the selling price. Today, some real estate agents do work for buyers rather than sellers. These agents don't list houses for sale; rather, they find out from their clients precisely what sort of place they're looking for and the price range they want to stay within; then they arrange with other realtors to show their listed houses to their clients. When a sale is made this way, the listing agent, working for the vendor, splits the commission with the buyer's agent.

Not just anyone can set him or herself up as a real estate agent. The term realtor can be used only by people belonging to the Canadian or Alberta Real Estate Association. To qualify for one of these associations, the realtor must pass a series of exams and be licensed.

Lawyers

In Alberta, people aren't required to use a lawyer to buy or sell real property, but it's usually advisable to do so. Each party-buyer and seller-should have a separate lawyer watching out for his or her interests. A lawyer will

• Explain the legal technicalities in the transaction

• Protect the interests of his or her client

• Search the legal title of a property to ensure that the current owner has a fee simple estate in it and that any easements or restrictive covenants are brought to light

• Ensure that legal title is properly transferred

Lawyers involved in property transactions should check all the papers involved, review any agreements before they're signed, and make sure that any provisions important to their clients are included in such agreements.

Appraisers

Most people who buy a home have to borrow money from a lending institution (such as a bank) by taking out a mortgage-something that will be discussed shortly. If the buyer is unable to pay back the money owed, the lending institution's security is the property being bought. In other words, the lender can seize the property, sell it, and take back the amount it's owed from the money thus raised.

For this reason, it's important for the lender to make sure that the property can be sold for enough money to compensate it. That's where appraiser come in. They're people lending institutions use to prepare reports estimating the value of the properties being mortgaged. Though it's the lender who insists on an appraisal being done, it's usually the purchaser who pays the appraiser.

Surveyors

Lending institutions normally insist that any property being mortgaged be professionally surveyed to make sure that all the buildings are, in fact, within the property boundaries and in compliance with zoning bylaws. Professional surveyors are hired to do this job and to write their findings in what's called a real property report ; and again it's the purchaser-the person taking out the mortgage-who normally pays for the service.