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The Calgary Real Estate Board : Commercial

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Commercial Shortcuts to sections on this page: AREA Agency Disclosure Forms | AREA Brokerage Forms | AREA Commercial Contracts | Articles | Clauses & Phrases | Commercial | Courses | Division News | Forms | Forms Help (AREA) | Technology

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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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AREA Brokerage Forms Jan 22, 2004

Buyer Brokerage Amendment

Jan 22, 2004

Buyer Brokerage Contract

Jan 22, 2004

Buyer Brokerage Termination

Jan 22, 2004

Tenant Brokerage Amendment

Jan 22, 2004

Tenant Brokerage Contract

Jan 22, 2004

Tenant Brokerage Termination

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in the Whole Site

The Calgary Real Estate Board : Commercial

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AREA Commercial Contracts Jan 21, 2004

Additional Rent Schedule (Commercial)

Jan 21, 2004

Amendment Agreement Extension

Jan 21, 2004

Condo Schedule (Commercial)

Jan 21, 2004

Condominium Appendix (Commercial)

Jan 21, 2004

Financing Schedule (Commercial)

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 AREA Standard Clauses and Phrases To assist in the writing of commercial and aggricultural purchase contracts and commercial leasing contracts

Feb 1, 2001

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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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Forms Apr 30, 2003 Nov 7, 2002

Agribusiness Input Form 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 Nov 13, 2002 Nov 7, 2002

Commercial Membership Application Form - 2004 Commercial Property Disclosure Statement 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.

Shortcuts to sections on this page: AREA Agency Disclosure Forms | AREA Brokerage Forms | AREA Commercial Contracts | Articles | Clauses & Phrases | Commercial | Courses | Division News | Forms | Forms Help (AREA) | Technology

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

(the Brokerage)

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

(the Brokerage)

__________________________________________ 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 __________________________________________________ (postal code) __________________________________________________ Phone Fax

__________________________________________________ Address __________________________________________________ (postal code) __________________________________________________ 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 Signature of Referred Client

Witness Witness

January 2004

AMENDMENT TO THE BUYER BROKERAGE CONTRACT Contract # ______________________ Further to the Buyer Brokerage Contract dated the __________ day of ___________________________________________, ______________. Between THE BUYER

and

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

THE BUYER’S BROKERAGE (the “Brokerage”)

and

Name _____________________________________________________________

Brokerage Name ____________________________________________________

Name _____________________________________________________________

___________________________________ Email _________________________

Address ___________________________________________________________

Address ___________________________________________________________

__________________________________________________________________

Phone _____________________________ Fax __________________________

(postal code) (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

1.1

Have you entered into any other buyer brokerage contract with a brokerage in Alberta during the last twelve months?

1.2

Are you currently in a buyer brokerage contract with another real estate brokerage?

2.

TERM OF THIS CONTRACT

2.1

The Buyer agrees to retain only the Brokerage:

2.2

q Yes

q No

q Yes

q No

advise prospective sellers or their brokerages with whom the Brokerage is negotiating that they represent the Buyer;

(d)

cooperate with brokerages which represent sellers of real estate;

(e)

not disclose the Buyer's identity if instructed not to do so.

ENDING THIS CONTRACT

5.1 This Contract will automatically end if the Brokerage:

(a)

to find real estate suitable for the Buyer to Purchase and,

(b)

to assist the Buyer in negotiating the terms of the Purchase.

The following properties are excluded from this Contract: _____________________________________________________________ _____________________________________________________________

2.3

5.

(c)

(a)

has had its licence to trade in real estate suspended or cancelled under the Real Estate Act (Alberta);

(b)

ceases to be a member in good standing of a real estate board; or

(c)

is bankrupt, insolvent, or in receivership.

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 Term of the Contract is effective today until 11:59 p.m. on ___________

6.1 The Brokerage’s fee (the “Fee”) shall be:

______________________________________________ (the “Expiry Date”)

THE BROKERAGE’S COMPENSATION

(a)

the portion of the real estate commission, if any, paid to the Brokerage by the seller's brokerage respecting a transaction involving the Buyer (the “Collected Commission”), or

(b)

_______________________________________________________ plus GST,

unless renewed/extended in writing. 3.

DUTIES OF THE BUYER

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 to enable the Brokerage to determine the Buyer's ability to Purchase real estate;

6.2 (a)

As security for payment of the Fee when this Contract is signed, the Buyer will deposit with the Brokerage, to be held in trust, the sum of $________________________________________ (the “Fee Deposit”).

(c)

negotiate in good faith the Purchase of any specific property in which the Buyer is interested.

(b)

The Brokerage is authorized to apply the Fee Deposit toward the Fee and applicable GST.

(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 the Buyer has signed a contract with a new brokerage as per clause 6.5, the Fee Deposit shall be refunded forthwith to the Buyer.

4.

DUTIES OF THE BROKERAGE

4.1

The Brokerage will: (a)

(b)

provide the Buyer with information about real estate listed on the Board's Multiple Listing Service® or such other real estate as the Brokerage is or becomes aware of and which may meet the Buyer's requirements; assist the Buyer at the Buyer's written request and expense to obtain inspections, real property reports, certificates of title and any other searches and additional information which the Buyer may require in order to decide whether to Purchase any specific property;

 January 2004 The Alberta Real Estate Association

______________ Buyer’s Initials

6.3 If any Collected Commission plus the Fee Deposit: (a)

exceeds the Fee and GST, then the excess will immediately be paid by the Brokerage to the Buyer, or

(b)

is less than the Fee and GST, then the shortfall will immediately be paid by the Buyer to the Brokerage.

______________ Buyer’s Initials

Page 1 of 2

CONTRACT # _________________________

6.4 The Brokerage will be entitled to receive the Fee and the Buyer will be obligated to pay it, if: (a)(i) during the term of this Contract, the Buyer enters into a contract for the Purchase of any specific property; (ii) the obligations of the parties are (have become) unconditional; and (iii) at the closing date the seller is willing and able to complete the transaction; or (b) within 90 days after this Contract has ended, the Buyer enters into a contract for the Purchase of any specific property and during the term of this Contract the specific property was introduced to the Buyer by the Brokerage or through the efforts of the Brokerage.

9.

DEFINITIONS

9.1

In this Contract:

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 the new brokerage as a result of the Purchase of any specific property. 6.6 The Fee plus GST earned by the Brokerage shall be payable upon completion of the transaction. If there is an additional amount payable to the Brokerage, the Buyer will pay it upon completion of the transaction. In the event the Buyer refuses to complete the transaction, the Fee is due and payable within seven (7) days of demand by the Brokerage. 7.

AGENCY DISCLOSURE/ACKNOWLEDGMENT

7.1 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. 7.2 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. 7.3 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. 7.4 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 a 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,

10.

(a)

“Buyer” is understood to include a tenant.

(b)

“Buyer's Agent” means the licensed brokerage (including its broker, all associate brokers and agents) who represents the Buyer or tenant.

(c)

“Lease” is a contract between an owner and a tenant that transfers to the tenant the right to use a piece of property for a specified length of time under specific conditions.

(d)

“Purchase” includes any sale, agreement for sale, exchange or trade of property and a Lease, Offer to Lease, or a Lease with an option to purchase.

(e)

“Purchase Price” means the total consideration to be paid by the Buyer either at the closing date or at some future described time.

(f)

“Seller” is understood to include a landlord.

(g)

“Seller's Agent” means the licensed brokerage (including its broker, all associate brokers and agents) who represents the seller or landlord.

ACKNOWLEDGMENT

10.1 The Buyer acknowledges that the Brokerage is being retained as a real estate broker, not as a lawyer, tax advisor, lender, appraiser, surveyor, structural engineer, property inspector, or other professional service provider. 10.2 This Contract creates binding legal obligations. The Buyer acknowledges that he/she has been advised to seek professional advice concerning the condition of any specific property that the Buyer might be introduced to and with respect to any legal and tax matters regarding the entering into of this Contract. 10.3 The Buyer consents to have the Brokerage collect, use and disclose personal information provided for purposes relating to the real estate services provided by the Brokerage to the Buyer including, but not limited to: (a) locating, assessing and qualifying property for the Buyer; (b) advertising on behalf of the Buyer; (c) providing information as needed to third parties retained by the Buyer to assist in a transaction (e.g., financial institutions, building inspectors, etc.); and (d) such other use of the Buyer’s information as is consistent with the services provided by the Brokerage in connection with the purchase or prospective purchase of the property. The Buyer agrees that the sale and other related information regarding any property purchased by the Buyer through the Brokerage may be retained and disclosed by the Brokerage and/or the Board(s) as required for closing and for reporting, appraisal and statistical purposes.

(iv) to you the reason the seller is selling, and (b)

(v) to you or other buyers the terms and conditions of competing offers; 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 specific property.

THIS CONTRACT IS MADE AS OF __________________________________________________________________ Date

_______________________________

_______________________________

Buyer

Witness

_______________________________

_______________________________

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 parties submit to the jurisdiction of the Courts in the Province of Alberta in any dispute that may arise out of this transaction.

_______________________________

_______________________________

Buyer

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.

Print Name of Buyer

Print Name of Witness

7.5

8.

The Buyer authorizes the Buyer's Agent to act as a Dual Agent according to the terms of this section. ADDITIONAL TERMS

8.4 The Buyer warrants that, prior to completion, he/she is NOT an “ineligible person” or a “foreign controlled corporation” and is eligible to purchase “controlled land” as those terms are defined in the Foreign Ownership of Land Regulations.

__________________________________________________________________ Signature of broker, associate broker, or agent authorized to sign on behalf of the Brokerage

Buyers' initials to acknowledge they have received a copy of this Contract.

___________________________ Page 2 of 2

BUYER BROKERAGE TERMINATION AGREEMENT Contract # _________________________ Between THE BUYER

and

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 THE TENANT

and

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 THE TENANT

and

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

THE TENANT

and

Name ________________________________________________________

Name ________________________________________________________

Name _______________________________________________________

Name ________________________________________________________

Expense Item

A Landlord Pays

B Tenant Pays

C Tenant Pays Proportionate Share (“Common Expenses”)

Notes

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 details of any structural deficiencies in the condominium complex l copy of registered condominium plan l the amount of the reserve fund l copy of the Condominium Corporation's current bylaws l copy of any reserve fund study l copy of the Condominium Corporation's current financial 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.

If the Buyer is to assume a mortgage(s), then the Seller warrants the following to the Buyer: l

Name of lender __________________________________ _______

l

l

Address of lender ________________________________________ _______________________________________________________ Approximate principal balance $ ____________________________

l

Maturity date ____________________________________________

l

Interest rate ____________________________________________

l

Payments of $ __________________________________________

l

Payments include taxes?

q Yes

q No

l

Approval to assume required?

q Yes

q No

l

SELLER FINANCING If the Seller is to provide financing to the Buyer, then the details are as follows: l

Principal sum of $ ________________________________________

l

Subject to adjustments?

l

Interest rate at ____________ percent, calculated ___________ not in advance.

l

Payments of $ ___________________________________________

l

Payments to include taxes?

l

Amortization of ________________________ years.

l

Term of ________________________ year(s)/months commencing from the Completion Day.

Other terms ____________________________________________

l

Interest adjustment day ____________________________________

______________________________________________________

l

Security (mortgage, general security agreement, assignment of rents, etc.) ___________________________________________________

______________________________________________________ l

_______________________________________________________ l

_______________________________________________________

2.

OTHER VALUE

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).

q No

_______________________________________________________

_______________________________________________________ _______________________________________________________

q Yes

q No

_______________________________________________________

Assumed second or other mortgage details ___________________ _______________________________________________________

q Yes

_______________________________________________________ _______________________________________________________ l

Assumable?

q Yes

q No

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 regarding the Other Value.

l

Where there is Seller Financing, the Seller must approve any 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

THE TENANT

and

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.

years and _______________________ months commencing on the

4.2 The Tenant's proportionate share of Common Expenses (not including the Tenant's direct costs) is currently estimated at $_____________________ per square foot per annum or $__________________________ per month.

____________ day of _____________________________________,

4.3 Additional Rent Schedule attached?

____________ 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.

ANNUAL BASIC RENT

6.

TERM

2.1 The Lease shall be for a term of __________________________

3.

3.1 Annual Basic Rent shall be payable monthly, in advance, as follows: (a) $ __________________________ per square foot of the area of the Leased Space upon which Annual Basic Rent is payable in accordance with the Lease, or (b) $ __________________________ per annum, or (c) according to Schedule _________ attached. 4.

ADDITIONAL RENT

4.1 Common Expenses shall be estimated by the Landlord from time to time and the Tenant shall pay its proportionate share of such Common Expenses as Additional Rent monthly, in advance, on the first day of each month. Such proportionate share is to be determined in accordance with the Lease. Common Expenses shall be adjusted by the Landlord in accordance with the Lease.  January 2004 The Alberta Real Estate Association

______________ Landlord’s Initials

q Yes

q No

DEPOSITS

6.1 The sum of $_____________________________________________, including GST, is delivered in trust to _________________________ _______________________________________________________ as a Deposit to be applied, if the Tenant is not in default, toward the first _________________ month(s) and last ________________ month(s) rental or to be returned forthwith if this Offer is not accepted. 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). 6.3 The Deposits shall be held in trust for both the Landlord and the Tenant and shall be: (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 Landlord fails to perform this Agreement, or (b) forfeited to the Landlord if the Offer is accepted and all conditions are satisfied or waived and the Tenant fails to perform this Agreement. ______________ Tenant’s Initials Page 1 of 4

Agreement # _______________________

6.4 If there is a dispute between the Landlord and the Tenant as to entitlement to the Deposit, then: (a) the brokerage holding the Deposit shall review the circumstances, determine entitlement and pay the money to the party who is entitled to the Deposit; (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 shall pay the money into a lawyer’s trust account; (c) the parties agree to allow the lawyer and/or the brokerage to 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. 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 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

10.1 The Tenant shall be permitted to install at its expense an identification sign for the Leased Space subject to the Landlord's written approval as to design and location and in compliance with all municipal bylaws, regulations and codes. 11. USE OF LEASED SPACE 11.1 The Leased Space shall only be used for ______________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ 12. CONDITIONS 12.1 The Tenant's Conditions are ________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________

8.1 The Tenant has inspected the Leased Space and agrees to accept the Leased Space in "as is" condition except for that work specifically set forth in Schedule _________ which is the Landlord's responsibility. 8.2 The Tenant shall carry out all the work necessary to complete the 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.

10. SIGNAGE

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 (c) included in the Annual Basic Rent. ______________ Landlord’s Initials

Before 5 p.m. on _________________________________________ (the "Condition Day"). 12.2 The Landlord's Conditions are: ______________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ Before 5 p.m. on _________________________________________ (the "Condition Day"). ______________ Tenant’s Initials Page 2 of 4

Agreement # _______________________

12.3 The Landlord is given permission by the Tenant to obtain a credit report 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. 13. THE LEASE 13.1 The Landlord will prepare a copy of the Lease to conform to the provisions in this Agreement all within ten (10) days of unconditional acceptance of this Agreement. 13.2 The Tenant shall execute the Lease within ten (10) days of being presented with the document. The provisions of this Agreement shall survive the execution of the Lease. 13.3 The Landlord and the Tenant acknowledge and agree that in the event of any conflict between the terms of this Agreement and the Lease, the terms of this Agreement shall govern. 14. ASSIGNMENT AND SUBLEASE 14.1 The Tenant shall have the right to assign the Lease and sublet and/or change the use of the Leased Space with the written consent of the Landlord, such consent not to be unreasonably withheld. 14.2 Any assignment or subletting by the Tenant will not relieve the Tenant of liability under the Lease. 15. RENEWAL 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 the Landlord not later than six (6) months prior to the end of the Term, to renew the Lease for a further _______________ ( ) year term on the same terms and conditions save and except for: (a) this option to renew; (b) Landlord's work responsibilities; (c) free rent; (d) Tenant inducements; (e) Annual Basic Rent, which will be determined by agreement between the Landlord and Tenant or, in default of agreement, by arbitration according to the Arbitration Act (Alberta). 16. ADDITIONAL TERMS 16.1 All time periods, deadlines and dates in this Agreement will be strictly followed and enforced. All times will be Alberta time unless otherwise stated. 16.2 This Agreement is for the benefit of and will be binding upon the heirs, executors, administrators and assigns of the individual parties and the successors and assigns of corporate parties. 16.3 All changes of number and gender shall be implied. 16.4 Capitalized words used in the headings, where applicable, shall define the terms used in this Agreement. 16.5 This Agreement will be governed by the laws of the Province of Alberta. The parties submit to the jurisdiction of the Courts in the Province of Alberta in any dispute that may arise out of this transaction. ______________ Landlord’s Initials

16.6 Other: _________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ 17. BINDING AGREEMENT 17.1 This Offer, when accepted, shall constitute a binding Offer to Lease. 17.2 The Landlord and the Tenant each acknowledge that, except as otherwise described in this Agreement, there are no other warranties, representations or collateral agreements made by or with the other party, the Landlord's brokerage and the Tenant’s brokerage about the property, any neighbouring lands, and this transaction, including any warranty, representation or collateral agreement relating to the size/measurements of the land and buildings or the existence or nonexistence of any environmental condition or problem. 18. ENVIRONMENTAL HAZARDS 18.1 The Landlord is responsible for pre-existing environmental hazards on the Leased Space, if any, at the time the Tenant takes possession. 18.2 The Tenant is responsible for environmental hazards that result from its subsequent use and occupancy of the Leased Space and indemnifies the Landlord with respect thereto. 19. SECURITY FOR THE LANDLORD’S BROKERAGE’S FEES 19.1 The Landlord does hereby irrevocably assign to the Landlord's brokerage enough of the Deposits to pay all sums due and owing to the Landlord's brokerage, and agrees to pay any unpaid balance of the Commission to the Landlord's brokerage. 20. ADVICE 20.1 This Agreement is intended to create binding legal obligations. The Landlord and the Tenant should read this Agreement carefully and are encouraged to obtain legal advice before signing. 20.2 This Agreement may be signed and sent by fax and this procedure will be as effective as signing and delivering an original copy. 20.3 Unless there is a dual agency or another written agreement, the Landlord's brokerage represents the Landlord as Landlord's Agent and does not have a fiduciary relationship with the Tenant, and the Tenant's brokerage represents the Tenant as Tenant's Agent and does not have a fiduciary relationship with the Landlord. 20.4 The Landlord and Tenant agree that the Lease and other related information regarding this transaction may be retained and disclosed by the brokerage and/or the real estate board(s) as required for closing and for reporting, appraisal and statistical purposes. 21. DEFINITIONS 21.1 In this Agreement: (a) Business Day means a day when both the Land Titles Office and the Schedule I chartered banks are open for business. (b) Landlord's Agent means the licensed brokerage (including its broker, all associate brokers and agents) who represents the Landlord. (c) Tenant's Agent means the licensed brokerage (including its broker, all associate brokers and agents) who represents the Tenant. ______________ Tenant’s Initials Page 3 of 4

Agreement # _______________________

PART B - ACCEPTANCE

22. REPRESENTATIVES/NOTICE Note: This section must be completed at the Offer stage prior to the Contract being signed. 22.1 The Representatives identified in clause 22.2 represent the Landlord and the Tenant. 22.2 For the purposes of giving and receiving any notice referred to in this Agreement, and for acceptance of an offer to lease, communication must be in writing and must be delivered to the address or faxed to the number described below. A notice sent or received by a Representative is proper notice for the purposes of this Agreement. Landlord's Representative: ______________________________________________________________ Broker, associate broker or agent registered to the brokerage

Brokerage Name ________________________________________________ Brokerage Address ______________________________________________ ______________________________________________________________

(postal code)

Phone___________________________ Fax __________________________

24. ACCEPTANCE 24.1 The Landlord accepts the Tenant’s offer and agrees to lease the Space according to the terms of the Agreement. SIGNED AND DATED at _____________________, Alberta at _______.m. on the _________ day of ______________________________, ________. LANDLORD (CORPORATE NAME) __________________________________________________________________ Per: _____________________________________

_______________________

Authorized Signing Officer(s)

Witness

_________________________________________

_______________________

Print Name of Authorized Signing Officer(s)

Print Name of Witness

Per: ______________________________________ _______________________ Authorized Signing Officer(s)

Witness

_________________________________________

_______________________

Print Name of Authorized Signing Officer(s)

Print Name of Witness

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 ________________________________________________ Brokerage Address ______________________________________________ ______________________________________________________________

(postal code)

Phone ___________________________ Fax _________________________

23. OFFER 23.1 The Tenant offers to lease the space according to the terms of this Agreement. 23.2 This Offer / counter offer shall be open for acceptance in writing until _____.m. on ____________________________________, ________. SIGNED AND DATED at _________________, Alberta at _______ .m. on ________________________________________________, __________. TENANT (CORPORATE NAME) __________________________________________________________________ _________________________________________

_______________________

Authorized Signing Officer(s)

Witness

_________________________________________

_______________________

Print Name of Authorized Signing Officer(s)

Print Name of Witness

_________________________________________

_______________________

Authorized Signing Officer(s)

Witness

_________________________________________

_______________________

Print Name of Authorized Signing Officer(s)

Print Name of Witness

Tenant’s GST # _______________________________________________________

Initials of the person(s) who signed last ____________________ COMMISSION AGREEMENT

(to be completed if there is no listing agreement)

This Agreement is between the Tenant’s Brokerage (the "Brokerage") and the Landlord. In consideration of the Brokerage being the effective cause of sale, the Landlord 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 Landlord hereby agrees to pay a commission to the Brokerage in consideration of 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, whichever event first occurs. The commission shall 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. The Landlord authorizes 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. 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. ______________________________________________________________________ Signature of broker, associate broker, or agent authorized to sign on behalf of the Brokerage ______________________________________________________________________ Landlord (Corporate Name) _____________________________________ Authorized Signing Officer(s)

______________________________ Witness

_____________________________________ Authorized Signing Officer(s)

______________________________ Witness 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 ___________________________________________________________

__________________________________________________________________

Phone _________________________________ Fax _______________________

Phone _____________________________

___________________________________________________________________ Broker, associate broker or agent authorized to represent the Brokerage

(postal code)

(postal code)

Fax _________________________

Email _____________________________________________________________

1.

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

THE PROPERTY

1.1 The Property is the Land, Buildings, Attached Goods (unless excluded) and included Unattached Goods located at (municipal street address): __________ ____________________________________________________________________________________________________________________________ (postal code) 1.2 The legal description of the Property is: 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.

2.1 Have you entered into any other listing contract for the Property during the last twelve months? 2.2 Is the Property currently listed for sale with another real estate brokerage? 3. TERM OF CONTRACT

q Yes

q No

q Yes

q No

3.1 You list the Property for sale with only the Brokerage(s) effective today until 11:59 p.m. on _______________________________________________ ____________________________________________ (the Expiry Date). 4.

ASKING PRICE

4.1 The Asking Price for the Property, not including GST, is $ ___________ __________________________________________________________ __________________________________________________________ 4.2 Where applicable, GST shall be the responsibility of the buyer. 5. POSSESSION DATE 5.1 The proposed Possession Date is _______________________________ __________________________________________________________  January 2004 The Alberta Real Estate Association

______________ Seller’s Initials

REAL ESTATE COMMISSION

6.1 The Real Estate Commission (the “Commission”) is ________________ __________________________________________________________ __________________________________________________ plus GST. 6.2 The Brokerage will offer ______________________________________ __________________________________________________, plus GST, as compensation to other brokerages for finding a buyer. 7. DEPOSITS 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 Real Estate Act (Alberta). 7.2 You direct the Brokerage, the buyer’s brokerage or the lawyer who holds 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 Deposits. 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 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.

______________ Brokerage Representative’s Initials Page 1 of 3

8. THE BROKERAGE’S AUTHORITY 8.1 You authorize the Brokerage to obtain the following information: l current property tax summary and related information l search of title l condominium additional plan sheet, if condominium property l if the Property is encumbered by a mortgage or agreement for sale that is assumable, copies of the documents and a Mortgage Verification Statement 8.2 Do you authorize the Brokerage to install and use a key box? q Yes q No 8.3 Do you authorize the Brokerage to install “FOR SALE” and “SOLD” signs? q Yes q No 8.4 Unless otherwise agreed in writing, only the Brokerage may advertise the Property for sale. 9. IMPORTANT INFORMATION 9.1 You will provide the following Important Information to the Brokerage promptly and at your expense: l a real property report, if applicable, reflecting the current state of improvements on the Property, according to the Alberta Land Surveyors’ Manual of Standard Practice, with evidence of municipal compliance or non-conformance. l if the Property is a resale condominium, the Important Information as described in the Commercial Condominium Property Appendix (attached). l all other applicable property information that is reasonably required to develop particulars of sale, including but not limited to, financial information such as annual property operating data (APOD), tenant schedules and leases, service and supply contracts, engineering reports, environmental assessment reports, building plans and specifications. 9.2 You hereby authorize the Brokerage to obtain the Important Information as required by 9.1 on your behalf and at your expense. q Yes q No Seller’s Initials

____________________

9.3 Are you aware of any defects in the Property that are not visible and are either structural in nature or a possible health hazard? Seller’s Initials

q Yes

q No

___________________

10. DUTIES OF THE SELLER 10.1 You will pay the Commission to the Brokerage if, during the Term of this Contract: (a) the Property is sold, exchanged or otherwise disposed of by you or anyone else; (b) a person contacts you directly or through a brokerage or inspects the Property and the Property is then sold, exchanged or otherwise 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 have signed another listing contract after the Expiry Date and a real estate commission is payable to another brokerage according to the terms of that other listing contract as a result of the sale or disposition; (c) you have signed a Purchase Contract with a buyer who is willing and able to complete the sale but you refuse to complete the sale; or (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 Purchase Contract. 10.2 You will pay the Commission to the Brokerage no later than the second 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 forfeiture of the Deposits. ______________ Seller’s Initials

# ____________________ Listing Contract Number

10.4 If the Brokerage pays for the Important Information, you will repay the Brokerage promptly upon demand. 10.5 In addition, you will pay GST, where applicable, to the Brokerage on the Commission or on any Alternate Compensation due under this Contract. 10.6 You will make your best efforts to insure the Property and its contents against loss or damage due to perils that are normally insured against for similar properties. This insurance will be effective even when the Property is vacant. 10.7 You will make reasonable efforts to cooperate with the Brokerage and any other brokerages. 10.8 You will immediately inform the Brokerage of any relevant changes respecting the Property or its ownership that may occur after this Contract is signed. 11. DUTIES OF THE BROKERAGE 11.1 The Brokerage: l

will make reasonable efforts to find a buyer for the Property.

l

will market the Property through the listing service operated by the Board.

l

will not discourage any person who is an industry member as defined in the Real Estate Act (Alberta) and who is not a member of the Board from attempting to sell the Property, unless you otherwise instruct the Brokerage in writing.

l

will pay any Commission, Alternate Compensation and GST that are payable to another brokerage.

12. SECURITY FOR THE BROKERAGE’S FEES 12.1 You now encumber all of your interest in the Land, Buildings and Attached 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 parties agree that the Brokerage is entitled to encumber the Land in accordance with the Land Titles Act (Alberta). You now authorize the Brokerage to file and maintain a caveat to give notice of this encumbrance. 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 incurred by the Brokerage. 12.3 If you owe money under this Contract and the Brokerage does not wish to enforce this Contract against you, then upon mutual agreement between the Brokerage and the buyer’s brokerage, the Brokerage may assign this Contract to the buyer’s brokerage. If this Contract is assigned, then the buyer’s brokerage may enforce this Contract against you to collect the portion of the Commission or Alternate Compensation, plus GST, to which the buyer’s brokerage is entitled, and the buyer’s brokerage will have the same rights and security given to the Brokerage according to Section 12 of this Contract. 13. SELLER’S WARRANTIES 13.1 You warrant the following: l

You have the legal authority to sell the Property.

l

The Attached Goods and included Unattached Goods are free and clear of any financial encumbrances except as follows: ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________

l

Where applicable, you have complied with the bylaws of the Condominium Corporation.

______________ 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 truthful and accurate: l You have disclosed all information necessary to truthfully and accurately market the Property, including any environmental problems. l The current use of the Land complies with the existing municipal land use bylaw. l The Buildings and other improvements on the Land are not placed partly or wholly on any easement or utility right-of-way and are entirely on the Land and do not encroach upon neighbouring lands, except where an encroachment agreement is in place. l The location of Buildings and other improvements on the Land complies with all relevant municipal bylaws, regulations or relaxations granted by the appropriate municipality prior to Completion Day, or the Buildings and other improvements on the Land are “non-conforming buildings” as that term is defined in the Municipal Government Act (Alberta). l If the Property includes a condominium unit, then the warranties extend to and include the common property. 14. ENDING THE CONTRACT 14.1 This Contract will automatically end if the Brokerage: l has had its licence to trade in real estate suspended or cancelled under the Real Estate Act (Alberta). l ceases to be a member in good standing of a real estate board. l is bankrupt, insolvent, or in receivership. 14.2 Where a party to this Contract has breached a part of this Contract, the other party may end this Contract by notice in writing to the party in breach. 14.3 You and the Brokerage may enforce parts of this Contract even if this Contract has ended or expired. 15. ADDITIONAL TERMS 15.1 This Contract is for the benefit of and will be binding upon the heirs, administrators, executors, successors and assigns of the parties. 15.2 All changes of number and gender will be made where required. 15.3 This Contract is a Seller’s Brokerage Agreement for the purposes of the Real Estate Act (Alberta). 15.4 This Contract will be governed by the laws of the Province of Alberta. The parties submit to the jurisdiction of the Courts in the Province of Alberta in any dispute that may arise out of this transaction. 16. ADVICE 16.1 This Contract creates binding legal obligations. You are encouraged to obtain legal advice before signing. 16.2 The Seller acknowledges that the Brokerage is being retained as a real estate broker, not as a lawyer, tax advisor, lender, appraiser, surveyor, structural engineer, property inspector, or other 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: (a) listing and advertising the Property in any medium including electronic media, photographs and video; (b) disclosing Property information to prospective buyers, brokers, agents and others; (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 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 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: (a) distribute the information to any persons authorized to use such service which may include other brokers, government departments, appraisers, municipal organizations and others;

(b) market the Property, at its option, in any medium, including electronic media; (c) compile, retain and publish any statistics including historical MLS®/CLSTM data which may be used by licensed board members to conduct comparative market analysis; and (d) make such other use of the information as the Board deems appropriate in connection with the listing, marketing and selling of real estate. 17. AGENCY DISCLOSURE/ACKNOWLEDGMENT 17.1 You, the Seller, 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 Seller’s Agent). A brokerage, its broker, associate brokers and agents representing a buyer are referred to as the Buyer’s Agent. 17.2 The Seller’s Agent is obligated to protect and promote your interests. Specifically, the Seller’s Agent owes you the fiduciary duties of loyalty, obedience, confidentiality, reasonable care and skill, full disclosure and full accounting. 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 Agents owes its client the full fiduciary duties listed above. Other brokerages representing buyers will not have a fiduciary relationship with you. 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 buyers 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 a buyer that you will accept a price less than the asking price (or a countered selling price), (ii) to you that a buyer will pay a price higher than the price offered, (iii) to a buyer the reason that you are selling, (iv) to you the reason that a buyer is buying, and (v) to a buyer 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 a buyer all facts known that materially affect or may materially affect the marketability or value of the Property. 17.5 The Seller authorizes the Seller’s Agent to act as a Dual Agent according to the terms of this section. 18. SIGNATURES 18.1 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. This Contract is made effective_____________________________________ _______________________________________________, ______________. ______________________________________________________________ Name of Owner Registered on Title _______________________________________ Authorized Signing Officer(s)

_________________________________ Witness

_______________________________________ Print Name of Authorized Signing Officer(s)

_________________________________ Print Name of Witness

_______________________________________ Authorized Signing Officer(s)

_________________________________ Witness

_______________________________________ 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

Seller: Initial here to show you have 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

THE SELLER’S BROKERAGE (the “Brokerage”)

and

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. 3. 4. 5.

All other provisions in the Agreement remain in full force and effect. In this Notice, the singular shall be constituted as the plural where the context so requires. This Notice shall enure to the benefit and be binding upon my heirs, executors, administrators, successors and assigns. 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 and

THE SELLER

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”)

THE LANDLORD’S BROKERAGE (the “Brokerage”)

and

Name _____________________________________________________________

Brokerage Name ____________________________________________________

Name _____________________________________________________________

___________________________________

Address ___________________________________________________________

Address ___________________________________________________________

__________________________________________________________________

Phone _____________________________

Phone _____________________________

Fax _________________________

__________________________________________________________________ Broker, associate broker or agent authorized to represent the Brokerage

Email _____________________________________________________________

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

1.

3.

(postal code)

THE PROPERTY

1.1 The Property is the Land, Buildings and Attached Goods (unless excluded) located at (municipal street address): ________________ _______________________________________________________ _______________________________________________________ _______________________________________________________

(postal code)

1.2 The legal description of the Property is: Plan __________________________________________________ Block _____________________ Lot/Unit _____________________ Plan __________________________________________________ Block ____________________ Lot/Unit _____________________ W. of

Range

Township

Section

Part

Acres

(postal code)

TERM OF AGREEMENT

4.

ASKING PRICE

4.1 The Annual Basic Rent is $ _________________________________ _______ sq.ft./yr, or $ ____________________________/month plus 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 expenses (including GST) as set out in the attached Appendix . 4.2 Where applicable, GST shall be the responsibility of the tenant. 4.3 A Lease Term of ___________________________________ months is preferred. Options to extend or renew the Lease will be considered. q Yes q No POSSESSION DATE

5.1 The proposed Possession Date is ____________________________ ________________________________________________________ _______________________________________________________

_______________________________________________________

6.

_______________________________________________________

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.

_______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ _______________________________________________________ 2.

Fax _________________________

3.1 You list the Space for lease with only the Brokerage(s) effective today until 11:59 p.m. on _______________________________________ ________________________________________ (the “Expiry Date”).

5. 1.3 The Space available for lease (the “Leased Space”) shall comprise an area of _____________________ square feet more or less and is described below or is set out in the Appendix attached to this Agreement.

Email ________________________

OR

OTHER LISTING AGREEMENTS

2.1 Have you entered into any other listing agreement to lease the Space during the last twelve months? 2.2 Is the Space currently listed for lease with another real estate brokerage?  January 2004 The Alberta Real Estate Association

LEASING COMMISSION

Other Commission or fee arrangements as per attached Appendix. q Yes q No

6.2 The Brokerage will offer ___________________________________

q Yes q No

_______________________________________________________ plus GST, as compensation to other brokerages for finding a tenant.

______________ Landlord’s Initials

______________ Brokerage Representative’s Initials Page 1 of 3

Agreement # _______________________

7.

DEPOSITS

7.1 All Deposits will be held in accordance with the terms of the signed Lease Agreement. The Deposits must be held in trust according to the Real Estate Act (Alberta). 7.2 You direct the Brokerage, the tenant’s brokerage or the lawyer who holds the Deposits to use the Deposits to pay any money owed under this Agreement. 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 Deposits. 7.3 You assign to the Brokerage enough of the lease money or forfeited Deposits to pay all money owed under this Agreement. You agree not to revoke this assignment. 7.4 You direct your lawyer to pay all money owed under this Agreement from the lease money or the forfeited Deposits held by your lawyer. 8.

THE BROKERAGE’S AUTHORITY

8.1 You authorize the Brokerage to obtain a search of title to confirm the proper legal description and your legal authority to lease, including restrictive covenants affecting the use and occupancy of the Leased Space. 8.2 Do you authorize the Brokerage to install “FOR LEASE” and “LEASED” signs? q Yes q No 8.3 Unless otherwise agreed in writing, only the Brokerage may advertise the Space for lease. 9. IMPORTANT INFORMATION 9.1 You will provide the following Important Information that may reasonably be required to the Brokerage, promptly and at your expense: l plans and specifications as may be available to properly describe the Leased Space including the rentable floor area in sq. ft. or sq. meters and the standard of floor measurements used (e.g. 1990 BOMA standards, 1996 BOMA standards). l a schedule of the divisions of costs between Landlord and tenant including an estimate of the expenses that the tenant may reasonably expect as Additional Rent for the first year of the Term. l where expenses are prorated, the percentage of costs that accrue to the area(s) available for lease. l a draft or sample of the Landlord's Standard Lease Form (the “Lease"). l a schedule of improvements that the Landlord will undertake at the Landlord's expense. l rules and regulations that may apply to the tenant's use and occupancy of the Leased Space. l any special or unusual lease terms or conditions that may apply to the tenancy. 10. DUTIES OF THE LANDLORD 10.1 You will pay the Commission to the Brokerage if, during the Term of this Agreement: (a) any portion of the Property is leased by you or anyone else; (b) a person contacts you directly or through a brokerage or inspects the Leased Space and the Space is then leased by you or anyone else to that person within six (6) months after the Expiry Date. This clause will not apply where you have signed another leasing agreement after the Expiry Date and a leasing commission is payable to another brokerage according to the terms of that other leasing agreement as a result of the lease; ______________ Landlord’s Initials

(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 lease or permit occupancy; or (d) a tenant is found who is willing and able to complete the lease upon the terms outlined in this Agreement but you refuse to sign the Lease Agreement. 10.2 You will pay the Commission to the Brokerage no later than the second business day after the Lease is signed, or the tenant is given possession by the Landlord, whichever event first occurs. The Deposit money shall apply firstly to pay the Commission. The Landlord authorizes the Brokerage to deduct the Commission (including GST) payable from the Deposit, and agrees to pay any unpaid balance. Payment of Commissions on renewals shall be upon written agreement being signed confirming the rental and the term of the renewal. In the event the tenant holds over without a former renewal or extension agreement in place, the Commission shall be paid monthly as the rents are collected. 10.3 You will pay Alternate Compensation to the Brokerage if a Lease Agreement is signed but a tenant 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 forfeiture of the Deposits. 10.4 You will pay GST to the Brokerage on the Commission or any Alternate Compensation due under this Agreement. 10.5 You will make reasonable efforts to cooperate with the Brokerage and any other brokerages. 10.6 You will immediately inform the Brokerage of any relevant changes respecting the Leased Space or its ownership that may occur after this Agreement is signed. 11. DUTIES OF THE BROKERAGE 11.1 The Brokerage: l l l

l

will make reasonable efforts to find a tenant for the Leased Space. will market the Leased Space through the listing service operated by the Board. will not discourage any person who is an industry member as defined in the Real Estate Act (Alberta) and who is not a member of the Board from attempting to lease the space, unless you otherwise instruct the Brokerage in writing. will pay any Commission, Alternate Compensation and GST that are payable to another brokerage.

12. SECURITY FOR THE BROKERAGE’S FEES 12.1 You now encumber all of your interest in the Land, Buildings and Goods attached to the Land and Buildings for the benefit of the Brokerage to secure payment of all money which may be owed by you to the Brokerage under this Agreement. The parties agree that the Brokerage is entitled to encumber the Land in accordance with the Land Titles Act (Alberta). You now authorize the Brokerage to file and maintain a caveat to give notice of this encumbrance. 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 incurred by the Brokerage. 12.3 If you owe money under this Agreement and the Brokerage does not wish to enforce this Agreement against you, then upon mutual agreement between the Brokerage and the tenant’s brokerage, the Brokerage may assign this Agreement to the tenant’s brokerage. If this Agreement is assigned, then the tenant’s brokerage may then enforce this Agreement against you to collect the portion of the Commission or Alternate Compensation, plus GST, to which the tenant’s brokerage is entitled, and the tenant’s brokerage will have the same rights and security given to the Brokerage according to Section 12 of this Agreement.

______________ 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: l has had its licence to trade in real estate suspended or cancelled under the Real Estate Act (Alberta). l ceases to be a member in good standing of a real estate board. l is bankrupt, insolvent, or in receivership.

16.1 You, the Landlord, 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 Landlord’s Agent). A brokerage, its broker, associate brokers and agents representing a tenant are referred to as the Tenant’s Agent. 16.2 The Landlord’s Agent is obligated to protect and promote your interests. Specifically, the Landlord’s Agent owes you the fiduciary duties of loyalty, obedience, confidentiality, reasonable care and skill, full disclosure, and full accounting. 16.3 You, as the Landlord, and potential tenants may be represented by different brokerages (the Landlord’s Agent and the Tenant’s Agent). Each of these Agents owes its client the full fiduciary duties listed above. Other brokerages representing tenants will not have a fiduciary relationship with you.

13.2 Where a party to this Agreement has breached a part of this Agreement, the other party may end the Agreement by notice in writing to the party in breach. 13.3 You and the Brokerage may enforce parts of this Agreement even if this Agreement has ended or expired. 14. ADDITIONAL TERMS 14.1 This Agreement is for the benefit of and will be binding upon the heirs, successors and assigns of the individual parties and the successors and assigns of corporate parties. 14.2 All changes of number and gender will be made where required. 14.3 Capitalized words used in the headings, where applicable, shall define the terms used in this Agreement. 14.4 This Agreement is a Landlord’s Brokerage Agreement for the purposes of the Real Estate Act (Alberta). 14.5 This Agreement will be governed by the laws of the Province of Alberta. The parties submit to the jurisdiction of the Courts in the Province of Alberta in any dispute that may arise out of this transaction. 15. ADVICE 15.1 This Agreement creates binding legal obligations. You are encouraged to obtain legal advice before signing. 15.2 The Landlord acknowledges that the Brokerage is being retained as a real estate broker, not as a lawyer, tax advisor, lender, appraiser, surveyor, structural engineer, property inspector, or other professional service provider. 15.3 The Landlord 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: (a) listing and advertising the Leased Space in any medium including electronic media, photographs and video; (b) disclosing Property information to prospective tenants, brokers, agents and others; (c) such other use of the Landlord's personal information as is 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 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 Landlord further acknowledges that the Board(s) may: (a) distribute the information to any persons authorized to use such service which may include other brokers, government departments, appraisers, municipal organizations and others; (b) market the Leased Space, at its option, in any medium, including electronic media; (c) compile, retain and publish any statistics including historical MLS®/CLSTM data; (d) make such other use of the information as the Board deems appropriate in connection with the listing, marketing and leasing of real estate.

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 more tenants with respect to the potential leasing of the Space. In such circumstances, the described fiduciary duties are limited as follows: The Dual Agent: (a) will not, without prior written authority, disclose: (i) to a tenant that you will accept a price less than the asking rate (or a countered lease rate), (ii) to you that a tenant will pay a price higher than the asking rate, (iii) to a tenant the reason that you are leasing, (iv) to you the reason that a tenant is seeking to lease, and (v) to a tenant 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 a tenant all facts known that materially affect or may materially affect the marketability or value of the Leased Space. 16.5 The Landlord authorizes the Landlord’s Agent to act as a Dual Agent according to the terms of this section. 17. SIGNATURES 17.1 This Agreement 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. This Agreement is made effective ________________________________ _______________________________________________, ______________. ______________________________________________________________________ Name of Owner Registered on Title

_____________________________________

______________________________

_____________________________________

______________________________

_____________________________________

______________________________

_____________________________________

______________________________

Authorized Signing Officer(s)

Print Name of Authorized Signing Officer(s) Authorized Signing Officer(s)

Print Name of Authorized Signing Officer(s)

Witness

Print Name of Witness Witness

Print Name of Witness

______________________________________________________________________ Signature of broker, associate broker or agent authorized to sign on behalf of the Brokerage

Landlord: Initial here to show you have 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

THE LANDLORD’S BROKERAGE (the “Brokerage”)

and

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

First rental payment is due on ______________________________________________________________________

Expense Item

Landlord Pays

Tenant Pays

Acres

Amount $ ______________________________________

Tenant Pays Proportionate Share Expense Item

(“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

Landlord Pays

Tenant Pays

Tenant Pays Proportionate Share (“Common Expenses”)

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:

_________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________________________

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. 3. 4. 5.

All other provisions in the Contract remain in full force and effect. In this Notice, the singular shall be constituted as the plural where the context so requires. This Notice shall enure to the benefit and be binding upon my heirs, executors, administrators, successors and assigns. 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

THE BUYER

and

Name _________________________________________________________________

Name _________________________________________________________________

Name _________________________________________________________________

Name _________________________________________________________________

1.

2. THE TRANSACTION 2.1 The Buyer hereby offers to purchase the Property for $ _____________ __________________________________________________________

THE PROPERTY

1.1 The Property is the Land, Buildings, Attached Goods (unless excluded) and included Unattached Goods located at: 1.2 Municipal Address: __________________________________________ __________________________________________________________ __________________________________________________________ 1.3 Legal Description: Plan _______________________________________ Block ____________________________ Lot/Unit _________________ __________________________________________________________ __________________________________________________________

____________________________________________________ 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 follows: $ __________________________________

Initial Deposit

$ __________________________________

Additional Deposit

$ __________________________________

Assumption of Mortgage /Agreement for Sale

__________________________________________________________ If Condominium Property, details as described in Commercial Condominium Property Schedule (attached). 1.4 All Attached Goods (fixtures) except for: __________________________ __________________________________________________________ __________________________________________________________

(approximate principal balance)

$ __________________________________ $ __________________________________

New Financing

$ __________________________________

Seller Financing

$ __________________________________

Other Value

$ __________________________________

Balance Owing

$ __________________________________

Purchase Price (excluding GST)

__________________________________________________________ __________________________________________________________

(as per attached Financing Schedule)

1.5 No Unattached Goods (specific chattels) except for: ________________ __________________________________________________________ __________________________________________________________ __________________________________________________________ __________________________________________________________ __________________________________________________________ __________________________________________________________ __________________________________________________________

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 as easements, utility rights-of-way, covenants and conditions that are normally found registered against property of this nature, and non-financial encumbrances which have been accepted by the Buyer (the "Permitted Encumbrances"). Unless otherwise agreed in writing, the Title shall be free and clear of all other liens, encumbrances, registrations and obligations except those implied by law. The Buyer agrees to accept the following Permitted Encumbrances: ____ __________________________________________________________ __________________________________________________________ __________________________________________________________  January 2004 The Alberta Real Estate Association

______________ Seller’s Initials

Unless otherwise agreed in writing, the Initial Deposit shall accompany the offer. _____________________________________________________ 3.2 The Initial Deposit shall be deposited no later than the second Business Day following the day that final signing occurred (as per clause 16.1). Additional Deposits shall be deposited no later than the second Business Day following the day the Additional Deposit is received by the brokerage. 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. __________________________________ ___________________________________________________________ ______________ Buyer’s Initials Page 1 of 4

3.5 The Deposits shall be held in trust for both the Seller and the Buyer and shall be: (a) applied against the Commission (as defined in the Commercial Real Estate Listing Contract or any other commission agreement signed by the Seller) and paid directly out of trust to the brokerage(s) when the Commission is earned in accordance with the terms of the Listing Contract or other commission agreement signed by the Seller; (b) refunded forthwith to the Buyer if this offer is not accepted; (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 per clause 8.8) or the Seller fails to perform this Contract; and (d) forfeited to the Seller if this offer is accepted and all conditions are satisfied or waived and the Buyer fails to perform on this Contract. 3.6 The brokerage holding the Deposits is further directed and authorized to pay that portion of the Deposits exceeding the Commission in trust to the Seller's lawyer no later than two (2) Business Days prior to the Completion Day. 3.7 If there is a dispute between the Seller and the Buyer as to entitlement to the Deposits then: (a) the brokerage holding the Deposits shall review the circumstances, determine entitlement and pay the money to the party who is entitled to the Deposit; (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 shall pay the money into a lawyer’s trust account; (c) the parties agree to allow the lawyer and/or the brokerage to 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. 4.

CLOSING

4.1 Subject to compliance with the terms hereof, posssession of the Property shall be available and given to the Buyer on or before 12 noon of the ___________ day of _________________________________________, ___________, (the "Completion Day"), subject to the rights of the existing tenants, if any. When the Buyer obtains possession, the Property will be in substantially the same condition as it was in when this Contract was accepted. 4.2 All normal adjustments for the Property including but not limited to taxes, local improvement levy and assessments, municipal charges, rents, utilities, tenant deposits including interest, prepaid rent, mortgage principal and interest that are applicable with respect to the Property shall be adjusted as of 24:00 hours on the Completion Day. The Buyer shall assume all local improvements, assessments and charges against the Property as of that time. 4.3 Closing documents shall: (a) consist of the transfer of land (the "Transfer") in registerable form together with all applicable conveyancing documents normally expected in a commercial transaction of this nature; (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 Completion Day. 4.4 In the event the Seller fails to deliver the Transfer to the Buyer's lawyer within such reasonable time, then the Buyer shall not be obliged to pay interest on that portion of the cash to close attributable to the Buyer's own 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 the Transfer. 4.5 The Seller's lawyer may use the Purchase Price to pay out all mortgages, condominium contributions, registrations and other financial obligations that are the Seller's obligation to pay or discharge. Within a reasonable period of time after the Completion Day, the Seller's lawyer will provide the Buyer's lawyer with evidence of all discharges including, where required, a certified copy of the certificate of title and an Estoppel Certificate evidencing the payment of all condominium contributions that are the Seller’s obligation to pay. 4.6 All money due and owing to the Seller including GST, if applicable, shall be paid to the Seller's lawyer on or before the Completion Day. If the Seller agrees to accept payment after the Completion Day, the Buyer shall pay 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 Day to and including the date that the monies owing have been unconditionally paid. ______________ Seller’s Initials

# ______________________ Purchase Contract Number

4.7 If a new mortgage is a condition of this Contract, the Seller agrees to trust conditions that allow the Buyer's lawyer to register the Transfer so as to obtain the advance of mortgage funds on the new mortgage; provided however that the Buyer's lawyer undertakes, accepts, and complies with reasonable trust conditions imposed by the Seller's lawyer until the Seller has been paid the total Purchase Price. 4.8 The Seller's lawyer has a right to prepare (at the expense of the Buyer) any mortgage or agreement for sale between the Seller and the Buyer. 5.

INSURANCE

5.1 The risk of loss or damage to the Property shall lie with the Seller until the Purchase Price is paid according to the terms of this Contract. If loss or damage to the Property occurs before the Seller is paid the Purchase Price, then any insurance proceeds shall be held in trust for the Buyer and the Seller according to their interests in the Property. 6. WARRANTIES AND REPRESENTATIONS 6.1 The Seller represents and warrants to the Buyer that: (a) the current use of the Land complies with the existing municipal land use bylaw; (b) the Buildings and other improvements on the Land are not placed partly or wholly on any easement or utility right-of-way and are entirely on the Land and do not encroach upon neighbouring lands, except where an encroachment agreement is in place; (c) the location of Buildings and other improvements on the Land complies with all relevant municipal bylaws, regulations or relaxations granted by the appropriate municipality prior to the Possession Date, or the Buildings and other improvements on the Land are "nonconforming buildings" as that term is defined in the Municipal Government Act (Alberta); (d) to the best of the Seller’s knowledge, there is no legal action outstanding with respect to the Property; (e) the Seller is not in breach of any contract with respect to the Property; (f) the Seller is not in breach of any obligation to any third party with respect to the Property; (g) within the meaning of the Income Tax Act (Canada), the Seller is not 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 who is a non-resident of Canada; and (h) $__________ is the current monthly condominium contribution payable (fee for administrative and other expenses). 6.2 All of the warranties contained in this Contract and any attached Schedules are made as of and will be true at the Completion Day, unless otherwise agreed in writing. 6.3 The Seller and the Buyer each acknowledge that, except as otherwise described in this Contract, there are no other warranties, representations or collateral agreements made by or with the other party, the Seller's brokerage and the Buyer's brokerage about the Property, any neighbouring lands, and this transaction, including any warranty, representation or collateral agreement relating to the size/measurements of the Land and Buildings or the existence or non-existence of any environmental condition or problem. 6.4 The representations and warranties in this Contract may be enforced after the Completion Day, provided that any legal action is commenced within the time limits prescribed by the Limitations Act (Alberta). 6.5 The Buyer shall have the right to register a caveat against the Title to the Property upon the acceptance of this Offer by the Seller. Should the Buyer fail to perform this Contract, it agrees to forthwith discharge that caveat. 7. ADDITIONAL TERMS 7.1 All time periods, deadlines and dates in this Contract shall be strictly followed and enforced. All times will be Alberta time unless otherwise stated. 7.2 This Contract is for the benefit of and shall be binding upon the heirs, executors, administrators and assigns of the individual parties and the successors and assigns of corporate parties. 7.3 All changes of number and gender shall be made where required. 7.4 This Contract will be governed by the laws of the Province of Alberta. The parties submit to the jurisdiction of the Courts in the Province of Alberta in any dispute that may arise out of this transaction. ______________ 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 purchase of the Property. The Buyer shall have an opportunity to obtain such financing before 9 p.m. on the __________________day of __________________________________________________, ________. 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 provide at its cost the following documents within _________ ( ) Business Days after the date of final signing of this offer: (a) such financial information respecting the Property as the Buyer may reasonably request; (b) copies of all other contracts currently pertaining to the Property; (c) copies of any engineering reports presently held by the Seller, together with reports and particulars of maintenance work done by the Seller on the heating and air conditioning equipment and roof repairs; (d) copies of any other pertinent documents, correspondence, work orders and deficiency notices from the municipality, if any, in the possession of the Seller; (e) copies of any environmental assessment reports in the possession of the Seller relating to environmental contamination of any kind at or on the Property; whether or not such reports exist, the Buyer, at its own expense, may engage consultants to inspect and make such tests and observations as the Buyer may deem necessary. Copies of all such reports shall be provided to the Seller without cost, whether or not the sale of the Property is completed; (f) a Real Property Report reflecting the current state of improvements on the Property, according to the Alberta Land Surveyors’ Manual of Standard Practice, with evidence of municipal compliance or nonconformance. This obligation will not apply to condominium units that do not create a lot or will not apply to any transaction where there are no improvements on the land; (g) any plans and specifications relating to the original construction and improvements to the Property, including, without limiting the generality of the foregoing, "as-built" drawings and plans for leasehold or tenants' improvements which are in the possession or control of the Seller; (h) estoppel certificates from each of the tenants; (i) a copy of the existing Title(s) # _______________________________ attached hereto as Schedule “A”; and (j) other documents as listed below or as listed on Schedule "B" attached hereto and forming part of this Contract. ______________________________________________________ ______________________________________________________ 8.3 The Buyer shall keep all information obtained in strict confidence and shall only make the information available to the Buyer's employees, agents and professional advisors in strict confidence and shall return all of the above materials including all copies to the Seller before any Deposits are released to the Buyer pursuant to this Contract. ______________ Seller’s Initials

___________________________________________________________ ___________________________________________________________ Before 9 p.m. on _____________________________________________ (the "Condition Day"). 8.6 The Seller's Conditions are: __________________________________ __________________________________________________________ __________________________________________________________ __________________________________________________________ __________________________________________________________ Before 9 p.m. on ____________________________________________ (the "Condition Day"). 8.7 Unless otherwise agreed in writing, the Buyer's Conditions are for the sole benefit of the Buyer and the Seller's Conditions are for the sole benefit of the Seller. 8.8 The Buyer and the Seller may unilaterally waive or satisfy their Conditions by giving a Notice to the other party (the "Notice") on or before the stated Condition Day. 8.9 Provided that the Buyer or the Seller, as the case may be, uses reasonable efforts to satisfy the Condition(s), if the Notice has not been given on or before the stated Condition Day, then this Contract is ended. 9.

ATTACHED SCHEDULES

9.1 The following Schedules form part of this Contract and are attached: q Schedule A (copy of Title) q Financing Schedule q Schedule B (other documents) q Assumption of Mortgage q Comm. Condominium Property Schedule /Agreement for Sale q Addendum q Other Value q Seller Financing q Other Schedules:____________________________________________

10. SECURITY FOR THE SELLER’S BROKERAGE’S FEES 10.1 The Seller does hereby irrevocably assign to the Seller's brokerage 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 the Seller's brokerage. 11. ADVICE 11.1 This Contract is intended to create binding legal obligations. The Seller and the Buyer should read this Contract carefully and are encouraged to obtain legal advice before signing. 11.2 This Contract may be signed and sent by fax and this procedure will be as effective as signing and delivering an original copy. 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 a fiduciary relationship with the Seller. 11.4 The Buyer and Seller agree that the sale and other related information regarding this transaction may be retained and disclosed by the brokerage and/or its real estate board(s) as required for closing and for reporting, appraisal and statistical purposes. ______________ Buyer’s Initials Page 3 of 4

12. DEFINITIONS 12.1 In this Contract: (a) Business Day means a day when both the Land Titles Office and the Schedule I chartered banks are open for business. (b) Buyer's Agent means the licensed brokerage (including its broker, all associate brokers and agents) who represents the Buyer. (c) Seller's Agent means the licensed brokerage (including its broker, all associate brokers and agents) who represents the Seller. 13. REPRESENTATIVES/NOTICE

# ______________________ Purchase Contract Number

PART B - ACCEPTANCE

15. ACCEPTANCE 15.1 The Seller accepts the Buyer's offer and agrees to sell the Property for the Purchase Price according to the terms of the Contract. SIGNED AND DATED at _______________________, Alberta at ________.m. on the _________ day of _________________________________, ________. ______________________________________________________________________ Name of Seller (Print)

Note: This section must be completed at the offer stage prior to the Contract being signed. 13.1 The Representatives identified in clause 13.2 represent the Seller and the Buyer. 13.2 For the purposes of giving and receiving any notice referred to in this Contract, and for acceptance of an offer to purchase, communication must be in writing and must be delivered to the address or faxed to the number described below. A notice sent or received by a Representative is proper notice for the purposes of this Contract. Seller's Information: Seller's Address _____________________________________________ ___________________________________________________________

(postal code)

Phone ____________________________ Fax ____________________

Per: _________________________________

_______________________________

Authorized Signing Officer(s)

Witness

_____________________________________

_______________________________

Print Name of Authorized Signing Officer(s)

Print Name of Witness

Per: _________________________________

_______________________________

Authorized Signing Officer(s)

Witness

_____________________________________

_______________________________

Print Name of Authorized Signing Officer(s)

Print Name of Witness

16. FINAL SIGNING 16.1 Final signing of this Contract occurred at ______________ .m. on ______________________________________________, ___________. Initials of the person(s) who signed last _______________________ CONVEYANCING

Seller's Representative: __________________________________________________________

Seller's Lawyer _________________________________________________________

Brokerage Name ____________________________________________

Lawyer's Address ________________________________________________________

Brokerage Address __________________________________________

Lawyer's Phone _____________________________ Fax ________________________

__________________________________________________________

Buyer's Lawyer __________________________________________________________

Broker, associate broker or agent registered to the brokerage

(postal code)

(postal code)

Phone ____________________________ Fax ____________________

Lawyer's Address ________________________________________________________

Buyer's Information: Buyer's Address ____________________________________________

Lawyer's Phone ____________________________ Fax _________________________

__________________________________________________________ (postal code)

Phone ____________________________ Fax ____________________

Buyer's Representative: __________________________________________________________ Broker, associate broker or agent registered to the brokerage

Brokerage Name ____________________________________________ Brokerage Address __________________________________________ __________________________________________________________ (postal code)

Phone ____________________________ Fax ____________________

14. OFFER 14.1 The Buyer offers to buy the Property for the Purchase Price according to the terms of this Contract. 14.2 This offer / counter offer shall be open for acceptance in writing until _______.m. on ____________________________________, _________. SIGNED AND DATED at __________________________, Alberta at _____.m. on the ________ day of ________________________________, _________.

(postal code)

COMMISSION AGREEMENT (to be completed if there is no listing agreement)

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 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 agrees 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. The Seller authorizes the Brokerage to deduct this commission payable from the Deposits. If the Buyer fails to complete this transaction through no fault of the Seller, 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 the Seller fails to complete this transaction, the commission shall be payable as if the transaction had been completed and shall be due on the Completion Day.

______________________________________________________________________ Name of Buyer (Print)

Per: __________________________________ _______________________________ Authorized Signing Officer(s)

Witness

______________________________________ _______________________________ Print Name of Authorized Signing Officer(s)

Print Name of Witness

Per: __________________________________ _______________________________ Authorized Signing Officer(s)

Witness

______________________________________ _______________________________ 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 ______________________________________ ______________________________ Seller’s Signature Witness ______________________________________ ______________________________ Print Name of Seller Print Name of Witness ______________________________________ ______________________________ Seller’s Signature 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 THE SELLER

and

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)

THE SELLER (“You”)

This Agreement is between and

THE BUYER’S BROKERAGE (the “Brokerage”)

Name _____________________________________________________________

Brokerage Name ____________________________________________________

Name _____________________________________________________________

____________________________________ Email ________________________

Address ___________________________________________________________

Address ___________________________________________________________

__________________________________________________________________

Phone _______________________________ Fax _________________________

Phone _______________________________ Fax _________________________

__________________________________________________________________ Broker, associate broker or agent authorized to represent the Brokerage

Email _____________________________________________________________

Member of the _______________________________________ Real Estate Board

(postal code)

1.

(postal code)

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 of the Brokerage

Print Name

__________________________________________________________

____________________________________________________________

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 A2

J u l y • 27 • 2 0 0 1

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was in the local building supply store the other day and my wife wanted to buy some landscaping ties to build a new garden area. Of course, she wanted treated wood ties because they would last longer. I knew that carcinogenic (or suspected carcinogenic) substances had been used in preserving wood in the past, but I wasn’t aware if they were still being used in present day preservatives. I asked the clerk if they could be used safely near a vegetable garden and he replied, “No problem, we sell them to people for gardens all the time.” I grabbed a can of wood preservative and asked if it was the same type used to preserve the landscaping ties. He replied that it was. I couldn’t find the list of ingredients on the label, but I showed him a warning on the can (in very small print) that it was dangerous to use near fruit or vegetable gardens. Creosote is one of the most popular of the wood preservatives. Depending on who you listen to, you’ll get different answers on how safe the chemicals in creosote are. The producers and promoters insist that they are safe, but the various departments of health will tell you that they are carcinogenic or probable carcinogenic. Skin contact can cause severe rapid damage to kidneys, liver and brain – death can result. Creosote can also be dangerous when inhaled or ingested. So what is creosote? It’s the name used for a variety of products that are a

wood product by as much as 10 times. Treatment was either by dipping the nvironmental wood in the creosote solution or by pressure-treating the wood. How does creosote enter the ips in the ome environment? Creosote can migrate from treated products through the soil. Stan Leece They will not travel far and will remain tar-like, but breakdown take many years. In the past, The Remediation Triangle will wastewater from wood treatment plants was often discharged into Cheap waterways, released into the municipal water treatment system or simply disposed of on the ground where it found its way into the water table. Such was the case in Calgary just west of the 14th Street bridge Quick Effective on the south side of the river where the present day Greyhound Bus depot and two car lots are located. From the opening of the Canada Creosoting plant in 1920 to its mixture of many chemicals. It is a closure in 1962, the facility was most heavy, oily, brownish liquid with a likely leaking creosote into the soil, smoky odour. The types of chemicals in groundwater and directly into the Bow creosote can vary from 300 to as many River. as 10,000, including trichlorophenyl, Historical air photos of the site show pentachlorophenyl, cresols and it to be approximately 40 acres in size. polycyclic aromatic hydrocarbons. In 1988, during a search of provincial There are many different types of archives, the site was identified by the creosote, including wood creosote, coal HELP project (Help End Land tar pitch creosote and coal tarcreosotes, Pollution) and it was determined that which is the most commonly used. creosote was seeping into the Bow Creosote has been used for decades as River. HELP identified 682 “orphan” a very effective method of preserving sites across Alberta. wood telephone poles, railway ties, The term orphan describes a site for fence posts, retaining walls, which there is no individual or landscaping ties and other timber company responsible for remediating products. It can increase the life of a any contamination. In 1991, the city

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was trenching a sanitary sewer and water line on the north side of the river in the 1800 and 1900 block of Broadview Road and discovered a pool of creosote at a depth of 20 feet. The health department determined that this would not affect the health of any of the residents because at that depth exposure to humans was unlikely. Between $5 and $6 million dollars was spent studying the creosote problem on both sides of the river and millions more went towards removing the creosote. I heard that the original estimates to remediate the site were very high, but alternative methods were used to reduce the cost substantially. A coffer dam was constructed in the Bow River to contain the seepage, wash the contaminated gravel and allow the recovery of much of the creosote still on the site. This method took much more time to be effective but was also much less expensive than the alternatives. The diagram shows the remediation triangle. If you choose two corners of the triangle you will always sacrifice the third. For example, if you want it cheap and quick, it won’t be effective. If you want it quick and effective, it won’t be cheap. The remediators of the Canada Creosote site seem to have opted for the third selection. It was cheaper and effective, but it wasn’t quick. — 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 A2

J u l y • 27 • 2 0 0 1

I

was in the local building supply store the other day and my wife wanted to buy some landscaping ties to build a new garden area. Of course, she wanted treated wood ties because they would last longer. I knew that carcinogenic (or suspected carcinogenic) substances had been used in preserving wood in the past, but I wasn’t aware if they were still being used in present day preservatives. I asked the clerk if they could be used safely near a vegetable garden and he replied, “No problem, we sell them to people for gardens all the time.” I grabbed a can of wood preservative and asked if it was the same type used to preserve the landscaping ties. He replied that it was. I couldn’t find the list of ingredients on the label, but I showed him a warning on the can (in very small print) that it was dangerous to use near fruit or vegetable gardens. Creosote is one of the most popular of the wood preservatives. Depending on who you listen to, you’ll get different answers on how safe the chemicals in creosote are. The producers and promoters insist that they are safe, but the various departments of health will tell you that they are carcinogenic or probable carcinogenic. Skin contact can cause severe rapid damage to kidneys, liver and brain – death can result. Creosote can also be dangerous when inhaled or ingested. So what is creosote? It’s the name used for a variety of products that are a

wood product by as much as 10 times. Treatment was either by dipping the nvironmental wood in the creosote solution or by pressure-treating the wood. How does creosote enter the ips in the ome environment? Creosote can migrate from treated products through the soil. Stan Leece They will not travel far and will remain tar-like, but breakdown take many years. In the past, The Remediation Triangle will wastewater from wood treatment plants was often discharged into Cheap waterways, released into the municipal water treatment system or simply disposed of on the ground where it found its way into the water table. Such was the case in Calgary just west of the 14th Street bridge Quick Effective on the south side of the river where the present day Greyhound Bus depot and two car lots are located. From the opening of the Canada Creosoting plant in 1920 to its mixture of many chemicals. It is a closure in 1962, the facility was most heavy, oily, brownish liquid with a likely leaking creosote into the soil, smoky odour. The types of chemicals in groundwater and directly into the Bow creosote can vary from 300 to as many River. as 10,000, including trichlorophenyl, Historical air photos of the site show pentachlorophenyl, cresols and it to be approximately 40 acres in size. polycyclic aromatic hydrocarbons. In 1988, during a search of provincial There are many different types of archives, the site was identified by the creosote, including wood creosote, coal HELP project (Help End Land tar pitch creosote and coal tarcreosotes, Pollution) and it was determined that which is the most commonly used. creosote was seeping into the Bow Creosote has been used for decades as River. HELP identified 682 “orphan” a very effective method of preserving sites across Alberta. wood telephone poles, railway ties, The term orphan describes a site for fence posts, retaining walls, which there is no individual or landscaping ties and other timber company responsible for remediating products. It can increase the life of a any contamination. In 1991, the city

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H

was trenching a sanitary sewer and water line on the north side of the river in the 1800 and 1900 block of Broadview Road and discovered a pool of creosote at a depth of 20 feet. The health department determined that this would not affect the health of any of the residents because at that depth exposure to humans was unlikely. Between $5 and $6 million dollars was spent studying the creosote problem on both sides of the river and millions more went towards removing the creosote. I heard that the original estimates to remediate the site were very high, but alternative methods were used to reduce the cost substantially. A coffer dam was constructed in the Bow River to contain the seepage, wash the contaminated gravel and allow the recovery of much of the creosote still on the site. This method took much more time to be effective but was also much less expensive than the alternatives. The diagram shows the remediation triangle. If you choose two corners of the triangle you will always sacrifice the third. For example, if you want it cheap and quick, it won’t be effective. If you want it quick and effective, it won’t be cheap. The remediators of the Canada Creosote site seem to have opted for the third selection. It was cheaper and effective, but it wasn’t quick. — 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.

Claiming capital cost allowance You may be denied CCA if you don’t qualify

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t is a wrong to assume that by simply acquiring an asset you have earned yourself a right to claim a capital cost allowance (CCA) or an equivalent of depreciation for financial accounting. There are many tricky provisions in the Income Tax Act that you need to be aware of. CCA is not an automatic right, you need to earn it. I will explain what I mean. First, let's understand the concept of the CCA further. According to the provisions 20(1) of the act and regulation 1102(1)(c) and as explained in the trial of Hickman Motors Ltd (plaintiff) v. Her Majesty the Queen (defendant) [93DTC5040), deductions from business or property income are allowed "as are wholly applicable to that source or such part.....as may reasonably be regarded as applicable thereto." In other words the expense must have a direct relation to the business or property income in order to be deductible. The next rule to remember is that the CCA may not be claimed on assets "not acquired by the taxpayer for the purpose of gaining or producing income." For example, a sales person's car, when not used 100% in the business of earning commission income, may not be claimed as 100% business use for tax purposes. Or, if you have acquired a computer for your children to play games with it, you may not claim CCA on that computer if you cannot justify having used it for business. That raises another interesting point. Beginning from l990, you may not start claiming CCA until the property has become "available for use" by the taxpayer. To consider the asset to have been available for use, you need to establish that the asset has been delivered and is capable of performing the function for which it was acquired. There is an exception for buildings; to put it simply, a building is available for use when all or substantially all of it is first used for its intended purpose. The rules with respect to buildings are quite complex and need to be reviewed before deciding on the eligibility for CCA.

Family Financial Planning Esmail Bharwani Let me explain the one-half rule. In the first year of an addition, the CCA may only be claimed up to one-half of the "net" addition. However, there are exceptions to the one-half rule. Many may not be aware and this fact is complicated by some of the tax computer programs that the one-half rule does not apply to some of the classes and to some specific items within those classes. For example, Class 12 includes a number of items. Of these items the following are not subject to one-half rule: A certified production (film), a book that is a part of a lending library, linen, a tool costing less than $200, a uniform, rental apparel or costume including accessories, chinaware, cutlery or other tableware and a kitchen utensil costing less than $200 and a medical or dental instrument costing less than $200. In addition, a Class 14 asset such as a patent, franchise, concession or license for a limited period are not also subject to the one-half rule. Quite often errors are made in terms of claiming CCA up to the maximum amount. If you are using a computer program to complete personal or corporate tax returns, the chances are that the program will compute the maximum permissible amount. If it is to your advantage to claim less than the maximum, you can do so by manually, overriding the amount or pencilling in the amount and changing your totals. You must consider carefully your strategy with respect to maximizing your CCA. First of all, it may not be allowed if it creates a loss from a rental property. Or, if you are able to claim under certain provisions, you need to be sure if that is to your advantage. The other confusing issue is whether you really need to have the property title in your name in order for (CCA) claim. The ownership is not necessary. However, you must have all the incidents to title, such as possession of the asset, use of the asset and onus of the risk. In other words you have the benefits and liabilities of the asset. You may want to refer to CCRA publication # IT50R (available free).

In the excitement of reducing income for tax purposes, taxpayers often claim CCA where they should not be claiming as it may be counter-productive. Provisions of subsection 45(2) permit a taxpayer to deem his present principal residence to be a continuing principal residence upon change in its use. This elective provision is used by a taxpayer when he rents out his former principal residence and moves into another house. Because he expects his former residence to appreciate in value faster in the shortrun, he uses this election to maximize his capital gains exemption on the disposition of his former principal residence. If the taxpayer elects to use that provision, the property is then deemed not used for the purpose of producing income, although rental income may be received by way of incidental income. By claiming the CCA you will invalidate the effect of your election and lose the opportunity of maximizing your exemption. You will be advised to use some professional help, if you have used the 45(2) election. For those who are not familiar with this provision, let me put it in simple words. Once you have lived in a residence, you can elect that it remains as your principal residence for tax purposes although you may not live there after you have acquired another house to move into. The maximum time period allowed for this election is 4 years and could be longer if you have moved out of the municipality because of employment. So, you see the CCA is not just an arithmetical exercise. You need to understand the complex rules and must develop strategies that best fit your situation. This article was previously published in "The area update", published by the Alberta Real Estate Association —The author assumes no responsibility whatsoever for any information given above because the purpose of this column is not intended to provide professional advice including, without limitations, investment, financial, legal, accounting or tax advice. For specific advice, direction, help applicable to your own situation please always consult your professional advisor specializing in the area of your needs. Esmail Bharwani is a Certified General Accountant and Senior Business & Income Tax Consultant operating as Esmail Bharwani Professional Corp. He can be reached at 288-3234, or by e-mail at [email protected]. His Web site address www.ucalgary.ca/~ebharwan. Esmail’s column appears weekly in the Calgary Real Estate News.

Don’t let the taxman take a bigger slice Avoid paying from beyond the grave

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eople always grumble when they have to pay tax on money they make. Survivors of deceased taxpayers show disgust for the taxman when the estate pays huge taxes. But very few reflect on the real reason why taxes are so high. The estate of a deceased person pays tax on capital gains arising on his death. All assets passing on from the death of an individual to beneficiaries other than those to one’s spouse are generally deemed disposed of at fair market value. Any resulting accrued gain thus becomes crystallized and the estate is required to pay tax on the taxable portion of the gain. Incidentally there are exceptions: Taxdeferred rollovers, tax-free transfers of principal residence and others. The question many have asked me is could their father, mother or grandparents done anything different to leave them with most of the estate. I remember one person telling me “why do these tax guys want so much money — our parents paid taxes all their lives.” The answer is simple. There are as many tax plans around as there are tax practitioners. Taxpayers are able therefore to defer taxes until retirement or death. While taxes are deferred to be paid for later, the tax dollars are earning income for the taxpayers. It is like an interest free loan from the tax department. So it is no surprise if there are huge taxes to pay at the end of one’s life. In writing this column I am more concerned about those who remain intentionally or otherwise blind-folded

Family Financial Planning Esmail Bharwani or dumb-founded. They assume the life will go on for ever. When they retire they will have lots of time to plan and organize their death. So they sit back and procrastinate. For some I’ve known it was too late to save taxes in certain situation. It is my gut feeling that in a buoyant economy, not many would find time to focus and reflect on estate planning matters. For many of these individuals it may prove to be a shocker when they try to assess their situation at the later stage of their life. Let me explain why I express my concern so categorically. In fact, it’s a concern I have expressed to many over years of my consulting life. I am not suggesting that you can’t plan later in life. There are other avenues about which I plan to write in future columns. However, there are certain situations in which your planning possibilities may be limited. Let me give you an example. It is a case of an elderly person in his late 60s, who owned a very successful business for over 40 years. The business had grown and so had its market value, and because of that it could fetch the owner up to $1 million if sold. The estimated capital gains tax would have been, say, approximately $300,000. He wondered if there was anything that could be done to save him taxes if he sold it. As his common shares holding were qualifying shares and the corporation was then a “small business

corporation,” he would have qualified for capital gains exemption for an amount up to half of that gain. However, the other half would have become taxable. He questioned why he couldn’t report the other half under his spouse’s name who had been involved in the business as an employee and had helped the company grow. The gain can only be reported by the person whose investment it is, and the reporting cannot be changed at will. I have come across many cases where the men determinedly maintain ownership of businesses in their sole names. They retain family members as employees to help them in the business. Had he considered making the family members shareholders early on when the company’s fair market value was lower, they could have all participated in the growth of the value of the common shares. Each of them may have then qualified for lifetime capital gains exemptions of up to $500,000 each. In other words, there would have been no taxes to pay and the family could have retained a significant portion of taxes as additional proceeds. Such planning should only be done with the help of qualified people. But it is all achievable. The concept of making family members part owners/shareholders or directors or officers is a scary thought for the founder, especially for fear of losing control of the corporate-owned business built over many years. The founder of the business wants to make sure that he retains absolute control of the company. He is even more concerned if it involves inclusion of minor children in the ownership of the company, which is being done more and more. If you have a business that has become worth a lot more than what you

originally paid for, it is critical that you consult your preferred tax consultant to design a plan for you. The plan should take into account all your concerns and objectives. There is always a way to come up with a plan that will provide a reasonable response to a majority of the founder’s concerns. I remember a case I worked on two decades ago. If that person had not undertaken to freeze the value of his shares, or go through the corporate reorganization, the tax costs on the death of one of the shareholders would have been five times more than what her estate ended up paying on her death. So let’s not blame the taxman all the time. Rather, we need to spend time on our own personal affairs. A close scrutiny of our own affairs will suggest that the deficiencies left in any planning are the result of our carelessness or negligence because we have all been too busy to take into our own hands our personal financial and estate planning project, and that includes me too. —The author assumes no responsibility whatsoever for any information given above because the purpose of this column is not intended to provide professional advice including, without limitations, investment, financial, legal, accounting or tax advice. For specific advice, direction, help applicable to your own situation please always consult your professional advisor specializing in the area of your needs. Esmail Bharwani is a Certified General Accountant and Senior Business & Income Tax Consultant operating as Esmail Bharwani Professional Corp. He can be reached at 288-3234, or by e-mail at [email protected]. His Web site address www.ucalgary.ca/~ebharwan. Esmail’s column appears weekly in the Calgary Real Estate News.

Entertainment, promotion – tax deductible?

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am often asked questions by real estate persons and other taxpayers about the deductibility of entertainment and promotion expenses. What might seem as just a normal business or commission-related expense may either be totally disallowed or only partially allowed by Canada Customs & Revenue Agency (CCRA). This issue is important because if you are able to deduct an expense, your net cost is less. Assume, for example, if you spend $100 on entertainment and you are paying a 50% marginal income tax rate, your net cost of that entertainment is $50 if you can deduct it fully. Whereas, if you are able to deduct only 50% of that expense, your net cost is $75. The worst scenario is that your net cost will be $100 if you are denied deduction in its entirety. So, you need to understand some very technical rules that apply to expenses incurred after Feb. 21, 1994, involving the consumption of food, beverages or entertainment. The term “entertainment” covers a broad variety of events. It includes all amusement and recreational expenses. A few examples might include: The cost of tickets for a play, concert, athletic event or other performance. Private box facilities at a sports event, a hospitality suite to provide entertainment, the cost of a cruise, admission to a fashion show, and expenses encurred entertaining guests at night clubs and athletic, social and sporting clubs are just further examples of the activities that might fall under this term. The cost of a hunting/fishing trip or even other kinds of vacation may be deemed as entertainment. Remember, though, that these expenses not only have to be incurred

Family Financial Planning Esmail Bharwani

for the purpose of producing, gaining or maintaining business income, they have to be reasonable as well. Also, only in certain exceptions they are fully deductible. More often, only 50% is allowed as a deduction. Furthermore, expenses include the actual cost of purchase (including taxes) and tips. Your GST input tax credit will be restricted to 50% (where applicable). The toughest part is being able to keep track of what is subject to the 50% limitation. Because the cost of food, beverages or entertainment may be part of a package price, you must be able to allocate expenses between those that are fully deductible and those that only deductible up to 50%. I find businesses have real rough time with this process. Consequently, accountants are obliged to treat the total expenses as 50% deductible. There are some exceptions, though. You are not required to reduce your claim by 50% if the food and beverage are part of moving, child care, or medical expenses. Here’s another point that might surprise you. If your capitalized cost of any asset, such as the cost of equipment, inventory for resale, experimental development or exploration expenses include food, beverage or entertainment costs, then, 50% will be disallowed. One of my clients found another interesting exception. He could not fully claim the cost of admission for a client to a series of amateur theatre

shows organized as a regular activity of a registered charity. However, the cost of entertaining this client at the charity’s annual fundraising dinner was fully deductible. However, there are many selfemployed individuals who incur meal expenses while on business away from home. If they are able to bill this amount to their clients, of course the restriction to the billing party does not apply. I don’t imagine it would take long for someone to think of including these meal expenses in their fees. Those of you who advance meal allowance to employees will be restricted to 50%, that is, if this allowance is not deemed a taxable benefit. However, there are no deductibility worries when you throw a party for your employees. As long as you are providing food, beverages or entertainment to all employees generally without any segregation, all expenses will qualify. Those who regularly attend conferences, conventions and seminars may find some cumbersome interpretations. Where organizers fail to provide you with a breakdown of costs, CCRA will deem that for each day of the meeting, a total of $50 (subject to change from time to time) has been incurred towards food, beverage and entertainment. And this amount will be subject to the 50% limitation. The overall effect of all this is that where everything was fully deductible before, now you must determine what does qualify. You also have to figure the actual after-tax cost. These changes call for a revised strategy. You could try to select the type of entertainment that is fully deductible. Maybe your vacation could include a

business convention, business meetings and or other kinds of professional and business development seminars. If you are a manufacturer or a supplier of a product, offering some samples as a promotion will not limit you to the 50% deductibility. One client says, “I simply order pen sets and offer them for a promotion instead of theatre tickets. Then I can write them off as office supplies.” It is a question of legitimacy. Some people can be quite crafty about how they categorize their expenses under unconventional headings, thereby avoiding the CCRA’s auditor. CCRA bulletin IT518R emphasizes the need for records with names and business addresses of the customers or other persons being entertained, together with relevant places, dates, times and amounts supported by such vouchers as are reasonably obtainable. It is best to understand the rules and to work within the legal framework. This article was previously published in the “Area Update” of the Alberta Real Estate Association —The author assumes no responsibility whatsoever for any information given above because the purpose of this column is not intended to provide professional advice including, without limitations, investment, financial, legal, accounting or tax advice. For specific advice, direction, help applicable to your own situation please always consult your professional advisor specializing in the area of your needs. Esmail Bharwani is a Certified General Accountant and Senior Business & Income Tax Consultant operating as Esmail Bharwani Professional Corp. He can be reached at 288-3234, or by e-mail at [email protected]. His Web site address is www.ucalgary.ca/~ebharwan. Esmail’s column appears weekly in the 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 [email protected]

Formeldehyde wall filling causing health problems years later

W

hen homes were first built in Alberta, there was a variety of insulations used in the outside walls, varying from nothing more than an empty air space to a cavity filled with sawdust, shredded newspaper, vermiculite, etc. Many of these products settled over the years leaving little insulation in these walls. During the “energy crisis” of the late ’70s the government promoted the use of UFFI (Urea foam formaldehyde insulation) as an insulating product for these types of poorly insulated homes. It could be easily pumped into the cavities of walls by cutting holes 16 inches apart in the outside or inside wall and would expand to solidify inside. Then it was discovered that formaldehyde could cause health problems, including burning sensations in the eyes, nose and throat, nausea, coughing, chest pain, wheezing, skin rashes, dermatitis, sleeping difficulties, bronchitis, fatigue and decreased lung capacity.

Environmental Tips in the Home Stan Leece Exposure to formaldehyde has been shown to cause cancer in animals and may cause cancer in humans. UFFI was banned in Canada in 1980 because of the perceived health hazards associated with it. Almost all of the homes in Alberta that were insulated with UFFI have had it removed. Has the problem gone away? No. Formaldehyde is found virtually everywhere, indoors and out, naturally occurring and man-made. It is a combustion product found in cigarette and wood smoke, natural gas, kerosene, automobile exhaust and incinerators. It is widely used in the manufacture of

other chemicals, building materials, preservative, permanent press fabrics, paper product coatings and especially glues. These products include particle boards of all types, including sub-flooring, paneling, kitchen cabinets, moldings, and wood finishes. It is also used in cosmetics, deodorants, shampoos, fabric dyes, inks and disinfectants. Mobile homes, motor homes and travel trailers are known for high amounts of formaldehyde because so many of the components are made from particle board or pressed wood products containing formaldehyde. Did you ever notice when you’re in a new home that it has a distinct “new home” smell? Guess what it is. — 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.

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 bloodlead 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 leadladen 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

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or many, family financial planning efforts are incomplete because most people do not put in enough thought or time to the concept. Let me highlight a few of the aspects for your consideration: • Consider owning a life insurance policy, term plan, if only to cover unexpected tax liabilities and security of the family. If you are looking for more than that, such as a savings vehicle and a tax break on investment income, there are other plans like universal life. But do look into it carefully, they’re not suitable for everyone. • Purchase a proper disability insurance that provides a good income in the event of disability arising from sickness or injury. When buying the policy, it is important to understand the definition (wording) of the word “disability.” Does it require you to obtain any gainful employment or to work just in your specific profession, vocation or trade? I have seen cases where, despite the policy, the insured party has remained without compensation because they are able to do some other type of work. • If you personally pay the premium, there should be no tax implication, but if you allow your employer to pay your premiums, expect to pay taxes on the benefits when received. • If you have an incorporated business with a large amount of retained earnings, do not wind up the company once you have sold out the assets. Use the corporation to pay dividends to shareholders over time. Income splitting can come very handy at that time with a lot of savings in taxes. A good consultation is necessary. • If you have personal guarantees with banks or suppliers, make sure you obtain your original guarantee documents back and eliminate any evidence of guarantee anywhere. • Ensure your house mortgage is paid out first. Your shelter should not remain encumbered in your retirement. Promise yourself never to borrow against the house closer to retirement. • It would be worth your while considering one spouse to grant a power of attorney to the other and vice versa. In the event of necessity, one spouse

Family Financial Planning Esmail Bharwani

Planning your family finances encompasses many aspects can act on behalf of the other spouse. • Consider making a “living will,” which provides closer relatives the ability to make a decision on your behalf in the event of a life-threatening illness or injury or a lack of mental competency for whatever reason. • Select your accountant, lawyer, executor, broker, and any other specialists that you consider your family may need to consult during your illness or after death. Establish relations and introduce family members to them so that they are familiar with these individuals. • Work on estate equalization plan to make sure that on you and your spouse’s death that your children will not feel cheated. You may select specific bequest for some but do ensure that it is equalized in other ways. • The will does not address every detail. Write a letter of instruction that explains your ultimate wishes in more details. Although not legally binding, it helps clarify issues. • Work on saving probate fees. Consult someone that can help you with the plan. • For those who have money outside the country, hidden away from authorities, think hard about what might happen to it if no one knows about it. There are people who leave the estate behind in foreign countries without the family knowing anything about the loca-

tion of the funds. The will may also be deficient because it does not meet the requirements of foreign jurisdictions. Please remember: Any professional executor will ultimately report anything and everything he or she may find legally necessary before making distribution. • Do not tie up all your money in a long-term investment with no rights for an early redemption or with no ability to liquidate when funds are needed. Many are now stuck with huge amounts of cash in the stock market. If they needed funds now, or their estate became involved, certain decisions would have to be made whether financially sound or not. Purchase staggered maturities, so liquidity is guaranteed. Diversify your portfolio so the marketability, without a substantial loss or perhaps, with some gain, may become feasible. • Think of your needs now and in the future. Think of your family and adult childrens’ needs now and for the future. Conduct asset allocation and share your funds with the children now. Don’t wait until you die. Your children can use funds better now when they need them the most. To give them money when they are self-sufficient and have enough of their own may not be as well appreciated. The above provides food for thought. Seek proper professional consultation with experts in each of the areas. This article was previously published in the Calgary Herald —The author assumes no responsibility whatsoever for any information given above because the purpose of this column is not intended to provide professional advice including, without limitations, investment, financial, legal, accounting or tax advice. For specific advice, direction, help applicable to your own situation please always consult your professional advisor specializing in the area of your needs. Esmail Bharwani is a Certified General Accountant and Senior Business & Income Tax Consultant operating as Esmail Bharwani Professional Corp. He can be reached at 288-3234, or by e-mail at [email protected]. His Web site address www.ucalgary.ca/~ebharwan. Esmail’s column appears weekly in the 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.

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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 C40

A U G U S T • 3 •

Condominiums

2 0 0 1

Even without being made for over 20 years, toxic leakant still lingers

Environmental Tips in the Home Stan Leece been exposed only to PCB’s showed effects of liver damage, cancer, reproductive and developmental problems.

Can I be tested for PCB’s There are blood tests that can determine how much PCB’s are in a person’s body.

It is important to remember that everyone is likely to have detectable amounts of PCB’s in their blood, fat and breast milk. The blood test can determine if you have a dangerous level. Exposures are measured in milligrams of PCB per kilogram of body weight per day.

How are PCB’s destroyed? PCB’s do not decompose under normal circumstances and can be destroyed only by incineration at extremely high temperatures (over 2000 degrees). Swan Hills is the location of one such facility. You may have read several years ago of an incident at Swan Hills when the furnace malfunctioned

What are PCB’s? PCB is the abbreviation for polychlorinated biphenyls, a family of man-made chemicals that contain 209 different compounds of varying toxicity. PCB’s were used as coolants and insulators in transformers, capacitors and other electrical and hydraulic equipment. In older fluorescent fixtures, the ballasts contained PCB’s, which often leaked. The United States discontinued manufacturing of PCB’s in 1977 because evidence showed they may cause health hazards to 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.

How can PCB’s be released into the environment?

This everyday power transformer was packed with toxic PCB’s before manufacturer’s stopped making them in 1977. The PCB’s were used as coolants and insulators in many electrical devices, and they can still be a danger to humans without proper care.

• 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

®

during a burn. Partially incinerated PCB’s were released into the environment, and that’s when PCB’s are most dangerous. Although most of the wildlife in its path was killed, no humans were harmed because of the remote location of the plant. You may also remember the sale of the old Firestone plant where many barrels of PCB’s were discovered on site. The litigation went on for many years. If you have any questions on this or any other environmental topic, I can be e-mailed at [email protected] — 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.

PCB’s airborne permanently until burnt C40

A U G U S T • 3 •

Condominiums

2 0 0 1

Even without being made for over 20 years, toxic leakant still lingers

Environmental Tips in the Home Stan Leece been exposed only to PCB’s showed effects of liver damage, cancer, reproductive and developmental problems.

Can I be tested for PCB’s There are blood tests that can determine how much PCB’s are in a person’s body.

It is important to remember that everyone is likely to have detectable amounts of PCB’s in their blood, fat and breast milk. The blood test can determine if you have a dangerous level. Exposures are measured in milligrams of PCB per kilogram of body weight per day.

How are PCB’s destroyed? PCB’s do not decompose under normal circumstances and can be destroyed only by incineration at extremely high temperatures (over 2000 degrees). Swan Hills is the location of one such facility. You may have read several years ago of an incident at Swan Hills when the furnace malfunctioned

What are PCB’s? PCB is the abbreviation for polychlorinated biphenyls, a family of man-made chemicals that contain 209 different compounds of varying toxicity. PCB’s were used as coolants and insulators in transformers, capacitors and other electrical and hydraulic equipment. In older fluorescent fixtures, the ballasts contained PCB’s, which often leaked. The United States discontinued manufacturing of PCB’s in 1977 because evidence showed they may cause health hazards to 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.

How can PCB’s be released into the environment?

This everyday power transformer was packed with toxic PCB’s before manufacturer’s stopped making them in 1977. The PCB’s were used as coolants and insulators in many electrical devices, and they can still be a danger to humans without proper care.

• 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

®

during a burn. Partially incinerated PCB’s were released into the environment, and that’s when PCB’s are most dangerous. Although most of the wildlife in its path was killed, no humans were harmed because of the remote location of the plant. You may also remember the sale of the old Firestone plant where many barrels of PCB’s were discovered on site. The litigation went on for many years. If you have any questions on this or any other environmental topic, I can be e-mailed at [email protected] — 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.

Planning finances encompasses many aspects With a little preparation and execution, wealth can be achieved

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or many, family financial planning efforts are incomplete, although the planning is so important to them, because they do not give enough thought or time to the concept. Let me highlight a few of the aspects for your consideration: • Consider owning a life insurance policy or term plan, if only to cover unexpected tax liabilities and security of the family. If you are looking for more, such as a savings vehicle and a tax break on investment income, there are other plans such as universal life. But do look into it carefully, they are not suitable for everyone. • Purchase a proper disability insurance that provides a good income in the event of disability arising from sickness or injury. When buying the policy, it is so important to understand the definition (wording) of the word “disability.” Does it require you to obtain any gainful employment or to work just in your specific profession, vocation or trade? I have seen cases where despite the policy, insured persons have remained

Family Financial Planning Esmail Bharwani without compensation because they are able to do some other type of work. If you personally pay the premium, there should be no tax implication, but if you allow your employer to pay your premiums, expect to pay taxes on the benefits when received. • If you have a incorporated business with a large amount of retained earnings, do not wind up the company once you have sold out the assets. Use the corporation to pay dividends to shareholders over time. Income splitting can come very handy at that time with a lot of saving in taxes. A good consultation is necessary. • If you have personal guarantees with banks or suppliers, make sure you obtain your original guarantee documents back and eliminate any evidence of guarantee anywhere. • Ensure your house mortgage is paid out first. Your shelter should not remain encumbered in your retirement. Promise yourself never to borrow against the house closer to retirement. • It would be worth your while considering for one spouse to grant a power of attorney to the other and vice versa. In the event of necessity, one spouse can act on behalf of the other spouse. • Consider making a “living will” that provides closer relatives to take a decision on your behalf in the event of your life-threatening illness or injury or a lack of mental competency for

whatever reason. • Select your accountant, lawyer, executor, broker, and any other specialists that you consider your family may need to consult during your illness or after death. Establish relation and introduce family members to them so that they are familiar with these individuals. • Work on estate equalization plan to make sure that on your and your spouse’s death children will not feel cheated. You may select specific bequest for some but do ensure that it is equalized in other ways. • The will does not address every detail. Write a letter of instruction that explains your ultimate wishes in more details. Although not legally binding, it helps clarify issues. • Work on saving probate fees. Consult someone to help you out with the plan. • For those who have money outside the country hidden away from authorities, think hard about what might happen to it if no one knows about it. Lots of people leave the estate behind in foreign countries without the family knowing anything about the location of the funds. The will may also be deficient because it does not meet the requirements of foreign jurisdictions. Please remember, any professional executor will ultimately report anything and everything he or she may find legally necessary before making distribution. • Do not tie up all your money in a long-term investment with no rights to an early redemption. Or, with no ability to liquidate when funds are needed. Many are now stuck with huge amounts in the stock market.

If they needed funds now or their estate became involved, certain decisions would have to be made whether financially sound or not. Have staggered maturities, so liquidity is guaranteed. Diversify portfolio so the marketability without a substantial loss or, perhaps, with gain may become feasible. • Think of your needs now and in the future. Think of your family and adult childrens’ needs now and in the future. Conduct asset allocation and share your funds with the children now. Don’t wait until you die. Your children can use funds better when they need them the most. To give them money when they are self-sufficient and have enough of their own may not be as well appreciated. The above provides food for thought. Seek proper professional consultation with experts in each of the areas. This article was previously published in the Calgary Herald —The author assumes no responsibility whatsoever for any information given above because the purpose of this column is not intended to provide professional advice including, without limitations, investment, financial, legal, accounting or tax advice. For specific advice, direction, help applicable to your own situation please always consult your professional advisor specializing in the area of your needs. Esmail Bharwani is a Certified General Accountant and Senior Business & Income Tax Consultant operating as Esmail Bharwani Professional Corp. He can be reached at 288-3234, or by e-mail at [email protected]. His Web site address www.ucalgary.ca/~ebharwan. Esmail’s column appears weekly in the 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 [email protected] 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 888399-3366 or e mail [email protected]

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