Memorandum of Understanding

THIS MEMORANDUM OF UNDERSTANDING (the "Document") made as of this ________ day of ________________, ________ (the "Execution Date"),

BETWEEN:

____________________ of _________________________

(the "Purchaser")

- AND -

____________________ of _________________________

(the "Seller")

BACKGROUND:

1. The Seller is the owner of residential property that is available for sale.
   
2. The Purchaser wishes to purchase residential property from the Seller.
   

This Document will establish the basic terms to be used in a future real estate contract for sale (the "Contract") between the Seller and the Purchaser. The terms contained in this Document are not comprehensive and it is expected that additional terms may be added, and existing terms may be changed or deleted. The basic terms are as follows:

1. Non-Binding
   
1. This Document does not create a binding agreement between the Purchaser and the Seller and will not be enforceable. Only the Contract, duly executed by the Purchaser and the Seller, will be enforceable. The terms and conditions of the Contract will supersede any terms and conditions contained in this Document. The Purchaser and the Seller are not prevented from entering into negotiations with third parties with regard to the subject matter of this Document.
   
2. Transaction Description
   
2. The property (the "Property") that is the subject of this Document is located at:
   
   • ___________________________________________________________
     ___________________________________________________________
     ___________________________________________________________
     ___________________________________________________________
     .
     
3. Purchase Price
   
3. The Purchaser will pay to the Seller the amount of $___________ CAD on or before the 7th day of June, 2023 (the "Closing Date") as final payment in full for the Property.
   
4. The Purchaser will take possession of the Property on the 7th day of June, 2023.
   
5. Real Property Disclosure
   
5. The Seller does not know of any material facts that would affect the value of the Property, except those observable by the Purchaser or known to the Seller and stated in this Document.
   
6. Representations
   
6. The Seller represents and warrants that the Property is free and clear of any liens, charges, encumbrances or rights of third parties which will not be satisfied out of the sales proceeds. If the representations of the Seller are untrue upon the Closing Date, the Purchaser may terminate any future agreement without penalty and any deposits must be refunded.
   
7. Terms and Conditions
   
7. The Contract will be subject to the Purchaser being approved for all financing by the Closing Date. Either the Seller or the Purchaser may cancel the Contract if the Purchaser cannot obtain adequate financing by the Closing Date despite due diligence and good faith on the part of the Purchaser.
   
8. The Purchaser will accept the Property in its current state and condition without any further work, repairs, treatments or improvements.
   
9. The parties expressly state that the English language will be the exclusive language of choice for the drafting and interpretation of this Document and any related documents. Les parties déclarent expressément que l’anglais est la langue exclusive choisie pour la rédaction et l’interprétation de cette convention et tous les documents connexes.
   

This Document accurately reflects the understanding between the Seller and the Purchaser, signed on this ________ day of ________________, ________.