What are DOWER Rights and how are they triggered in your Real Estate Sale?

In 1917 Alberta introduced the Dower Act, often referred to as Homestead Rights in other provinces in Canada.  These rights are designed to protect the rights of a spouse that is not on the title of their property. 

Dower Rights come into effect on any property being sold, that only has one spouse on the title, typically purchased by only one spouse (traditionally before the marriage takes place).   However, as soon as the marriage takes place and either spouse lives in the home the Dower Rights apply.

Some of the very first questions you should encounter from your Real Estate Professional is around Dower rights.  There are 3 questions that will establish if Dower Rights apply. 

1 – Is there Just one owner on title of the home.

2 – Is the owner Married?

3 – Has either the owner or their spouse resided in the property for one night or more?

If there is a Yes answer to all 3 of these questions Dower Rights apply. 

What to do if Dower Rights apply

Your Real Estate Professional should provide you with a Dower Rights Consent and Acknowledgment form, and go over the form with you.  The non-owner spouse must go to a lawyer or Commissioner of Oaths (we recommend Robertson LLP for all your Real Estate Legal Needs) to have the signing of the form witnessed.  There will be 3 separate Dower Right Acknowledgement forms

1 – When listing your home for sale.

2 – When accepting an offer to purchase on your home.

3 – When transferring Title of the home.

Forms 1 and 2 will come from your Real Estate Professional, while the 3^rd form will come from the Lawyer upon signing the final papers. 

Please note: These Rights apply to Married, as well as separated spouses who are not yet divorced. 

Consequences of Ignoring Dower Rights

There have been cases in the past where spouses have tried to sidestep Dower rights.  Doing so can have very harsh penalties.  In a case from 2017 in Alberta, the seller of a property claimed the couple had not lived in the home (which they did prior to buying a new home) upon selling the Calgary property.  The seller of the home received net proceeds of $121,019 from the sale and pad $33,320 in Capital Gains.  In this Court of Queens Bench a settlement of $102,000 was awarded to the sellers spouse.  It’s important to note The courts do not look at equity when awarding a judgement, but rather the sale price of the home. 

By understanding and addressing Dower Rights proactively, you can ensure a smoother real estate transaction and avoid potential legal complications. Whether you're a homeowner, buyer, or real estate professional, being aware of these rights is critical to protecting all parties involved.

If you're unsure about how Dower Rights might apply to your situation or need expert guidance, visit The Shane Meahan Realty Team's Coaching & Legal Resources for trusted advice and support. Taking the right steps now can save you significant stress and financial burden later!