Here is an annotated summary of each section of the OREA Agreement of Purchase and Sale (Form 100) used in Ontario real estate transactions, based on the document prepared by an experienced OREA instructor and real estate lawyer1:
1. Chattels Included
Items not permanently affixed (e.g., appliances) that are included in the sale must be listed. If unsure, include the item to avoid disputes.
2. Fixtures Excluded
Fixtures (items affixed to the property) that are not included in the sale must be listed (e.g., chandeliers).
3. Rental Items
Items like hot water tanks or furnaces that are rented and will be assumed by the buyer must be listed.
4. Irrevocability
Specifies the time period during which the offer cannot be withdrawn.
5. Completion Date
The closing date. Avoid busy days (start/end of month). Most closings happen mid-afternoon.
6. Notices
Outlines how notices are to be given (e.g., fax), and who is authorized to receive them.
7. GST
Clarifies whether GST is included in or added to the purchase price. Usually not applicable to resale homes.
8. Title Search
Buyer’s lawyer has a set period to search title. If issues arise, the buyer may terminate the agreement.
9. Future Use
Seller makes no guarantees about future use of the property beyond what’s stated in the agreement.
10. Title
Buyer must accept certain legal encumbrances (e.g., easements) if they don’t substantially affect the property. Non-compliance with zoning or work orders may allow termination.
11. Closing Arrangements
Outlines how documents, funds, and keys are exchanged during electronic registration.
12. Documents and Discharge
Seller must provide title documents they possess. Institutional mortgages may be discharged via solicitor’s undertaking; private ones must be discharged before closing.
13. Inspection
Buyer confirms they’ve inspected the property and accepts its condition.
14. Insurance
Seller bears risk until closing. If damage occurs, buyer may accept insurance proceeds or terminate.
15. Planning Act
Seller must comply with the Planning Act, especially regarding land severance.
16. Document Preparation
Seller prepares the deed; buyer pays for mortgage registration and related costs.
17. Residency
Seller confirms Canadian residency. If not, buyer may be liable for tax under the Income Tax Act.
18. Adjustments
Adjustments for utilities, taxes, and other costs are made as of the closing date.
19. Time Limits
Closing must occur on the agreed date. Failure may result in breach of contract.
20. Tender
If one party is ready to close and the other isn’t, they may “tender” documents and funds to prove readiness.
21. Family Law Act
Seller must comply with the Family Law Act, which may require spousal consent.
22. UFFI
Seller warrants that Urea Formaldehyde Foam Insulation (UFFI) was not used and is not present.
23. Consumer Reports
If seller is providing financing, they may obtain a credit report on the buyer.
24. Agency
Clarifies which brokers represent which parties, as per the Confirmation of Representation.
25. Agreement in Writing
Any additions override standard terms. The written agreement is the entire contract.
26. Successors and Assigns
Agreement binds heirs and legal successors of both buyer and seller.
Disclaimer:
The content on this website is provided for general informational purposes only and does not constitute legal or professional advice. Visitors are encouraged to seek specific legal guidance by contacting the lawyers at Carson Law or their own legal counsel regarding any particular matter. Carson Law does not guarantee the accuracy, completeness, or currency of any information on this website. The materials published here are current as of their original publication date and should not be relied upon as accurate, complete, or applicable to any specific situation.
If you have further questions or concerns, please contact Carson Law and one of our lawyers would be happy to help.
905.336.8940 x 1000
info@carsonlaw.ca
