When purchasing or selling a property, the most essential document to the transaction is the Agreement of Purchase and Sale. This document is a contract between the purchaser and seller which outlines the important details such as the purchase price, completion date and any applicable terms and conditions that are associated with the sale and purchase of the property.
The process begins when a prospective buyer of a property makes an offer to the seller. The seller will then either reject or accept the offer, and if accepted the terms and conditions are then negotiated and written down in the form of the Agreement of Purchase and Sale. Once the terms and conditions are finalized, satisfied, and/or waived, the Agreement becomes binding on both parties, and cannot be withdrawn unless both the purchaser and the seller agree.
The Agreement of Purchase and Sale is a required document for all real estate purchase and sale transactions, regardless of whether the assistance of a real estate agent was utilized or not. Although the Agreement of Purchase and Sale does not have to be drafted by a lawyer, it is advisable that the assistance of legal counsel is obtained by both the purchaser and the seller. The Agreement of Purchase and Sale is a legal document and thus consists of legal, technical and complex elements that if not drafted correctly or not fully understood, you run the risk of encountering legal and financial consequences.
Typical terms and conditions that are found in the Agreement of Purchase and Sale include, but are not limited to:
- The legal description of the property
- The purchase price and the deposit
- Items that are specifically included and excluded from the property
- If the price includes HST or if HST is in addition to the purchase price
- Title searches
- The closing date; and
- Any conditions such as buyer securing financing, successful home inspection, the sale of the buyer’s property by a certain date, verification with the municipality if a garage can be built on the property,
- And more!
There are a number of nuanced elements within the Agreement of Purchase and Sale and that is why it is important that you acquire the assistance of a lawyer. Not only can they help with the drafting and/or reviewing of the Agreement of Purchase and Sale, but they can also assist with title searchers and help protect against potential fraud and title issues.
Connect With Suzanne Desrosiers Professional Corporation
Understanding the details of the Agreement of Purchase and Sale is essential for both purchaser’s and sellers in Ontario. The legal professionals at Suzanne Desrosiers Professional Corporation have nearly 40 years of experience with real estate transactions and would be more than happy to help in drafting or reviewing your Agreement of Purchase and Sale. Please feel free to reach out to our office by calling us at (705) 268-6492 or emailing us at info@sdlawtimmins.com.