Have you figured out the Contract of Purchase and Sale of Property when buying a home in Canada?

By: Century 21
Have you figured out the Contract of Purchase and Sale of Property when buying a home in Canada?

For most people, a house is one of the most expensive commodities you will buy in almost a lifetime. But, do you really know how to buy a house in Canada? There are countless misconceptions about buying a house these days, and how many people have carefully studied what is written on the contract in the process? How does it protect our interests? Today I will talk to you about the Contract of Purchase and Sale of Property, and I hope it will help you in your home buying and property purchase.

The Contract of Purchase and Sale of Real Estate in Toronto is a special contract developed by the OREA Ontario Real Estate Association in conjunction with TREB Toronto Real Estate Board, and requires the use of the most recent version. The document is divided into three main parts: the main contract, the sub form, and the amendment/deletion clause document. Until the contract is signed and agreed to by both parties, it is referred to as an Offer.

There are several clauses listed in the main contract. These clauses have several specific dates: the date the buyer makes the offer; the contract expiration date; the delivery date; the title search date; the offer acceptance date; and the closing date of the conditions in the offer.

Offer expiration date: It is stated that the other party needs to give a reply within a specified period of time. After the expiration date, the offer expires. After receiving the offer, the seller's broker will communicate with the client to see if any adjustments are needed. If the seller requests an adjustment to the Offer sent by the buyer, the seller's broker will make changes to the contract sent by the buyer and send it back to the buyer, called Counter offer.

Delivery date: The buyer will get the keys on the delivery date. There will be no renovations or staging until this date. The Buyer shall have one or more opportunities to view the property prior to delivery. (This should be stated in the appendix). The last viewing is usually 1-3 days before the delivery date to check that the property is cleaned/constructed as required by the contract and that all items left by the seller as mentioned in the contract are present. A specific record of the items left behind should also be stated in the contract. Be careful when signing the contract. Some items that you want the seller to leave behind when viewing the house need to be asked and written into the contract before it can be valid.

Date of title search: Generally the lawyer will represent the buyer for the relevant title search, no need to worry.

The closing date of the conditions in the offer: Before this date, if the buyer has removed the conditions, the contract is officially formed. If the buyer has cancelled the condition before this date, the contract will be formalized. The parties may add additional conditions to the contract as they see fit.

Price, details and delivery date are negotiable. In the negotiation between the buyer and seller, there must be written proof to be protected by law.

When the buyer and seller receive the cancellation letter Waiver or the amendment letter Amending the conditions, the whole deal is really agreed and the deal is really The deal is really formed.

In the case of a condominium property, the seller is generally required to issue a status certificate to the buyer and have the property inspected by an attorney, and if there are any problems, an amendment is added or the property is reconsidered.

Therefore, if the buyer does not agree to cancel the conditions, the contract is not valid and the buyer usually has the right to withdraw from the property and return the deposit.

Of course, it is up to the buyer to make the final decision as to whether or not there are conditions and how many conditions.

The appendix is divided into two parts, A and B. Appendix A contains special notes on the chattels in the house, such as that they must be in good working order. The buyer is required to pay the balance and the conditions attached to the sale. Appendix B deals with the amount of interest to be returned to the buyer for the deposit.

It is important to note that the buyer's broker's commission is paid by the seller in the case of a sale of a property. This means that when the seller lists the property with a real estate agent, the agent negotiates a commission and a percentage of the commission with the seller. The buyer does not pay his/her realtor's commission directly.

A complete home buying process comes down to not only the master contract, the authorization paperwork, but also the amendment paperwork. Each step needs to be done in accordance with standard legal procedures.

Published: 2022-06-30