In an Alberta residential transaction, what is the 'possession day' and how does it differ from 'completion day'?
Correct Answer
B) Completion is when title transfers and funds are disbursed; possession is when the buyer takes keys and occupancy, possibly another day
In Alberta, completion day is the legal closing when title transfers to the buyer and the seller receives the proceeds. Possession day is when the buyer receives the keys and can physically move in. In the standard AREA contract, these are often the same day, but they can be different dates depending on the agreement between the parties.
Why This Is the Correct Answer
Alberta's AREA standard purchase contract distinguishes between completion day (legal closing with title transfer and funds disbursement) and possession day (physical occupancy). While they are often the same date, the contract permits different dates. The Land Titles Act governs the title transfer mechanics on completion day, while possession terms are contractual.
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