Understanding the Agreement of Purchase and Sale
Introduction to the Agreement of Purchase and Sale and OREA Form 100
In Ontario's real estate market, the Agreement of Purchase and Sale (APS) plays a crucial role in the property buying process. Typically, the realtor will supply you with the standard Ontario Real Estate Association (OREA) Form 100, which you will need to complete and submit to the seller. Once signed by all parties, the offer to purchase turns into the Agreement of Purchase and Sale.
The APS should be crafted with precision, and any special terms or conditions between the buyer and seller must be documented in writing. Verbal agreements can be challenging to prove and enforce in court. When the seller accepts the offer, and all conditions are met or waived, the APS becomes a legally binding contract. Both parties are then legally obligated to fulfill their commitments and complete the transaction.
Before signing, it’s important that all parties understand the contents of the APS, as it leaves no room for interpretation. If you have any doubts, it's always safer to explicitly state the terms or conditions you want to include in the standard form agreement in your OREA Form 100.
Key Components of the Agreement of Purchase and Sale
Inclusions and Exclusions
Any items you want to be included in the home purchase, such as appliances or personal property, should be explicitly stated in the APS. A written agreement can help avoid complications down the road. If you intend to hold back a certain amount of money to confirm the property's condition after move-in, you must negotiate and include a holdback provision in the APS. For valuable items, consider recording model numbers and taking photographs in case of damage or replacement after the transaction.
Identifying Parties and Property Description
The APS will list the names of the parties involved and provide a detailed description of the property. This description should include the legal description, municipal address, and the lot and plan number. Your realtor and lawyer must ensure the property description is specific and accurate.
Purchase Price and Deposit
The APS should also document the purchase price and the amount of deposit you will be providing. It's essential to have a clear understanding of the financial terms of the transaction.
Conditions and Terms
The APS should outline any applicable conditions and terms as a schedule to the offer. In addition to the conditions specified in the Standard Form Agreement, you may also refer to a list of other Agreement of Purchase and Sale Conditions for further guidance.
Is OREA Form 100 an Agreement of Purchase and Sale?
OREA Form 100, also known as the standard Ontario Real Estate Association form, is an offer to purchase documents used in real estate transactions in Ontario, Canada. While it is not an Agreement of Purchase and Sale (APS) in itself, it serves as the foundation for creating one. Once the OREA Form 100 is filled out and signed by all parties involved, it transforms into an APS, which is a legally binding contract between the buyer and the seller. This contract outlines the terms and conditions of the property transaction and holds both parties accountable for fulfilling their respective obligations.
Please be aware that the information provided on this webpage is for general informational purposes only and should not be considered legal advice from a lawyer. The information is provided without any guarantees or warranties regarding the accuracy or completeness of the content. For specific legal advice about OREA Form 100, Agreements of Purchase and Sale, or other questions, consult with TDJ Law and get a quote