Free Real Estate Purchase Agreement

Free Real Estate Purchase Agreement

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Real Estate Purchase Agreement

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Real Estate Purchase Agreement

Create your Real Estate Purchase Agreement

Create your Real Estate Purchase Agreement

ONBuilt for Ontario
Different provinces have different rules and regulations. Your Real Estate Purchase Agreement will be customized for Ontario.


Frequently Asked Questions
When should one use the Real Estate Purchase Agreement?Real Estate Purchase Agreement (completed construction) is used where:
  1. the Buyer is purchasing a new home that has been completed before the the purchase price is paid and the Buyer takes possession; or

  2. the Buyer is purchasing a previously occupied home.


Your Real Estate Purchase Agreement

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Real Estate Purchase Agreement for Ontario

THIS SALES AGREEMENT (the "Agreement") dated this _______ day of ______________, _______ (the "Execution Date")

BETWEEN :

_______________
(the "Seller")

-AND-

_______________
(the "Buyer")

BACKGROUND
The Seller wishes to sell a certain completed home and the Buyer wishes to purchase this completed home.

IN CONSIDERATION OF and as a condition of the Seller selling the Property and the Buyer purchasing the Property and other valuable consideration, the receipt and sufficiency of which consideration is acknowledged here, the parties to this Agreement (individually the "Party" and collectively the "Parties") agree as follows:

  1. Property
  2. The Property is situated at _________________________________ and the legal description of the Property is as follows: _________________________________, which includes fixtures and improvements located on the Property and all rights, privileges and appurtenances associated with it, including but not limited to permits, easements, and cooperative and association memberships (the "Property").
  3. The Seller agrees to sell and convey to the Buyer and the Buyer agrees to purchase from the Seller the Property.
  4. Sales Price
  5. The sales price for the Property (the "Sales Price") will be paid as follows:
    1. earnest money payable after the Effective Date of this Agreement is: $____________;
    2. excluding any loan funding fee or mortgage insurance premium, the sum of all financing is: $0.00; and
    3. the total Sales Price payable is: $0.00.
  6. Harmonized Sales Tax
  7. If the sale of the Property is subject to Harmonized Sales Tax (HST), then such tax shall be included in the Sales Price. If the sale of the Property is not subject to HST, the Seller agrees to certify on or before the Closing Date that the sale of the Property is not subject to HST.
  8. Financing Terms
  9. The portion of the Sales Price not payable in cash by the Buyer amounts to $0.00 and it will be paid by one or more third party mortgage loans.
  10. This Agreement is subject to the Buyer being approved for financing within thirty days from the Effective Date of this Agreement (the "Financing Period"). Either party may cancel this Agreement if the Buyer cannot obtain adequate financing within the Financing Period despite due diligence and good faith on the part of the Buyer or if the Buyer cannot satisfy the terms of the financing commitment by the Closing Date.
  11. Earnest Money
  12. The Buyer will deposit $____________ as earnest money at __________ with __________ acting as escrow agent, within none business days after the Effective Date of this Agreement. Failure to deposit the earnest money as provided in this clause will result in the Buyer being in default under this Agreement.
  13. Title Search
  14. The Buyer, at the Buyer's own expense, shall be allowed until 6:00 p.m. on the 24th day of September, 2017 (the "Requisition Date") to examine the title to the Property. The Buyer will have until thirty days from the Requisition Date or the date on which the conditions in this Agreements are fulfilled or otherwise waived; or five days prior to the Closing Date, whichever date is earlier, to satisfy the Buyer that there are no outstanding work orders or deficiency notices affecting the property, and that its present use as a residential home may be lawfully continued and that the principal building may be insured against risk of fire.
  15. The Seller hereby consents to the disclosure by municipality or other governmental agencies of details of all outstanding work orders and deficiency notices affecting the Property to the Buyer. The Seller agrees to execute and deliver such further authorizations in this regard as the Buyer may reasonably require.
  16. Title
  17. The Buyer is entitled to title to the Property that is good and free from all registered restrictions, liens, and encumbrances except as otherwise provided in this Agreement and save and except for the following exceptions ("Title Exceptions"):
    1. any registered restrictions or covenants that run with the land providing that such are complied with;
    2. any registered municipal agreements and registered agreements with publicly regulated utilities providing such have been complied with, or security has been posted to ensure compliance and completion, as evidenced by a letter from the relevant municipality or regulated utility;
    3. any minor easements for the supply of domestic utility or telephone services to the property or adjacent properties; and
    4. any easements for drainage, storm or sanitary sewers, public utility lines, telephone lines, cable television lines or other services which do not materially affect the use of the property.
  18. If within thirty days of the Requisition Date or the date on which the conditions in this Agreements are fulfilled or otherwise waived; or five days prior to the Closing Date, whichever date is earlier, the Seller is notified in writing of one or more of the following:
    1. there is a valid objection to title or to any outstanding work order or deficiency notice; or
    2. the present use of the Property may not lawfully be continued; or
    3. the principal building may not be insured against risk of fire,

    which the Seller is unable or unwilling to remove, remedy or satisfy or obtain insurance save and except against risk of fire in favour of the Buyer and any mortgagee, (with all related costs at the expense of the Seller), and which the Buyer will not waive, this Agreement notwithstanding any intermediate acts or negotiations in respect of such objections, shall be at an end and all monies paid shall be returned without interest or deduction and the Seller shall not be liable for any costs or damages. Save as to any valid objection so made by such day and except for any objection going to the root of the title, the Buyer shall be conclusively deemed to have accepted the Seller’s title to the property.

  19. Future Use
  20. The Parties agree that there is no representation or warranty of any kind that the future use of the Property by the Buyer is or will be lawful.
  21. Property Access and Inspection
  22. The Buyer may, at its sole cost, select inspectors and pest controllers licensed to practice within The Province of Ontario or any lawful agent authorized to make inspections to inspect the Property. The Buyer will deliver to the Seller a written notice of any defects in addition to a copy of the inspection report within ten days after the inspection. At all reasonable times, the Seller is to permit the Buyer or its agents access to the Property for the purpose of inspection and will pay for turning on existing utilities.
  23. Property Condition
  24. The Buyer accepts the Property in its current state and condition without any further work, repairs, treatments or improvements.
  25. Warranties
  26. The Seller makes no express warranties aside from those expressly described in this Agreement or the attached addenda. Upon closing, the Seller agrees to assign all manufacturer warranties that are assignable to the Buyer.
  27. Closing Arrangements
  28. Where each of the Seller and the Buyer retain a lawyer to complete the Agreement and sale of the Property, and where the transaction will be completed by electronic registration pursuant to Part III of the Land Registration Reform Act, R.S.O. 1990, Chapter L4 and the Electronic Registration Act, S.O. 1991, Chapter 44, and any amendments thereto, the Seller and the Buyer acknowledge and agree that the exchange of closing funds, non-registrable documents and other items (the “Requisite Deliveries”) and the release thereof to the Seller and the Buyer will:
    1. not occur at the same time as the registration of the transfer/deed (and any other documents intended to be registered in connection with the completion of this transaction); and
    2. be subject to conditions whereby the lawyer(s) receiving any of the Requisite Deliveries will be required to hold same in trust and not release same except in accordance with the terms of a document registration agreement between the said lawyers..

    The Seller and the Buyer irrevocably instruct the said lawyers to be bound by the document registration agreement which is recommended from time to time by the Law Society of Upper Canada. Unless otherwise agreed to by the lawyers, such exchange of the Requisite Deliveries will occur in the applicable Land Titles Office or such other location agreeable to both lawyers.

  29. Closing
  30. The date that the sale of the Property becomes final and the Buyer takes possession (the "Closing Date") shall be no later than September 24th, 2017. In the absence of legal excuse, the failure to close the sale on the Closing Date by either Party will enable the non-defaulting party to pursue any remedies on default provided in this Agreement.
  31. Upon closing, the Seller will execute and deliver to the Buyer a general warranty deed which has title to the Property and shows no further exceptions to title of the Property except the Title Exceptions, and furnish a current tax statement which shows no delinquent taxes on the Property.
  32. The Buyer will pay the Sales Price in good funds acceptable to the escrow agent.
  33. Any notices, statements, certificates, affidavits, releases, loan documents and other documents required by this Agreement, by law which is necessary for the closing of the sale must be promptly executed and delivered by the Seller and the Buyer.
  34. All covenants, representations and warranties in this Agreement will survive closing and may be enforced.
  35. Possession
  36. Possession of the Property in its current or required state, ordinary wear and tear excepted, will be delivered by the Seller to the Buyer upon proper funding at closing. A tenancy at sufferance relationship will be created between the Parties where there is no authorized written lease agreement and either the Buyer has possession prior to closing or the Seller has possession after closing. The Parties should consult their respective insurance agent and are responsible to ensure adequate coverage exists upon the transfer of ownership and possession.
  37. Settlement and Other Expenses
  38. Unless both Parties otherwise agree in writing, the following expenses payable by the Seller (the "Seller's Expenses") must be paid at or prior to closing:
    1. All existing liens; prepayment penalties; recording fees; lender, tax statements or certificates; preparation of deed; half of escrow fee; and all expenses payable by the Seller under this Agreement must be released or discharged accordingly.
  39. The following expenses payable by the Buyer (the "Buyer's Expenses") must be paid at or prior to closing:
    1. Loan origination, discount, and buy-down.
    2. All expenses related or incident to any loan, including but not limited to, appraisal fees; application fees; credit reports; loan documents preparation fees; recording fees on notes and mortgages; recording fees on the deed and financing statements; inspection fees; half of escrow fees; all prepaid items including flood and hazard insurance premiums; documentary stamp tax; and all other expenses payable by the Buyer, necessary to perform the Buyer's obligation under this Agreement must be released or discharged accordingly.
  40. If any expense to be paid by either Party exceeds the amount expressly stated in this Agreement, the Party responsible for the said exceeding amount may terminate this Agreement unless the other Party agrees to pay the excess amount.
  41. Consumer Reports
  42. The Buyer is hereby notified that a consumer report containing credit and/or personal information may be referred to in connection with this transaction.
  43. Prorations
  44. The following items will be prorated and adjusted as property as of the Closing Date: any rents, mortgage interest, realty taxes including local improvement rates and unmetered public or private utility charges and unmetered cost of fuel. If the tax rate for the current year is unknown, the Parties will use the rate from the previous year plus five percent at closing. If the tax rate for the previous year is also unknown, the escrow agent will estimate an amount to prorate, holdback sufficient funds and adjust the prorated amount when the new tax statements become available. The Buyer will be obligated to pay the share of the prorated taxes for the current year if the taxes are not paid at or prior to the closing.
  45. Planning Act
  46. This Agreement shall be effective to create an in interest in the Property only if the Seller complies with the subdivision control provisions of the Planning Act, R.S.O. 1990 by the Closing Date and the Seller covenants to proceed diligently at the Seller's expense to obtain any necessary consent by the Closing Date.
  47. Document Preparation
  48. The Transfer/Deed shall, save for the Land Transfer Tax Affidavit, be prepared in registrable form at the expense of the Seller. Any Charge/Mortgage shall be given back by the Buyer to the Seller at the expense of the Buyer. If requested by the Buyer, the Seller covenants that the Transfer/Deed will be delivered by the Closing Date shall contain the statements contemplated by Section 50(22) of the Planning Act, R.S.O. 1990.
  49. Property Assessment
  50. The Parties hereby acknowledge that The Province of Ontario has implemented current value assessment and properties may be assessed on an annual basis. The Parties agree that no claim will be made against either Party for any changes in property tax as a result of a re-assessment of the Property, save and except any property taxes that accrued prior to the Closing Date.
  51. Residency
  52. The Seller represents and warrants that the Seller is not and on the Closing Date will not be a non-resident under the non-residency provisions of the Income Tax Act, R.S.C. 1985 which representation and warranty shall survive and not merge upon the completion of this transaction. The Seller shall deliver to the Buyer a statutory declaration that Seller is not then a non-resident of Canada.
  53. Risk of Loss
  54. The Seller will bear all risk of loss to the Property or its improvements, which includes, but is not limited to, physical damage or destruction to the Property, or loss caused by eminent domain, until the Closing Date. If at any point after the Effective Date but prior to closing, any part of the Property is damaged or destroyed, the Seller will restore the Property to its previous condition as soon as possible before the Closing Date, reasonable delays excepted. If the Seller fails to restore the Property due to unforeseeable factors beyond the control of the Seller, the Buyer may elect one of the following:
    1. the Agreement will terminate and the earnest money will be refunded to the Buyer within ten days;
    2. the Closing Date will be extended as necessary to accommodate the performance of restoration; or
    3. at closing, the Property in its damaged state will be accepted and all insurance proceeds will be assigned from the Seller to the Buyer and the Buyer will receive an amount equal to the deductible under the Seller's insurance policy.

    The Seller's obligations under this provision are independent of any obligations of the Seller found under the heading Property Condition.

  55. Remedies on Default
  56. The Buyer will be in default if the Buyer fails to comply with the provisions of this Agreement, upon which, the Seller may:
    1. seek specific performance; or
    2. seek other relief as may be provided by law; or
    3. seek a combination of any or all of the above remedies; or
    4. treat all earnest money as forfeited and the said money be deemed as liquidated damages and the sole remedy for the Seller.
  57. The Seller will be in default if the Seller fails to comply with the provisions of this Agreement, upon which, the Buyer may:
    1. seek specific performance; or
    2. seek such other relief as may be provided by law; or
    3. a combination of any or all of the above remedies; or
    4. treat this Agreement as terminated and receive the earnest money within ten days of cancellation.
  58. Escrow
  59. The Seller and the Buyer agree that the escrow agent is not:
    1. a party to this Agreement and will not assume any liabilities incurred as a result of the performance or nonperformance of either the Buyer or the Seller, and that no liability will be incurred unless the escrow agent is grossly negligent or willfully breaches the terms of this Agreement;
    2. liable for the loss of earnest money as a result of the failure of any financial institution in which the earnest money has been deposited unless the said institution is acting as an escrow agent; and; and
    3. liable for interest on the earnest money.
  60. Upon closing, the earnest money will be applied in the following order with the excess refunded back to the Buyer:
    1. any cash down payment; and
    2. Buyer's Expenses.
  61. At all relevant times during the course of this Agreement, the escrow agent is required to notify the other Party prior to the releasing of any funds to the Party who is requesting the funds.
  62. The notice of the escrow agent to either Party will be deemed effective upon its deposit to any Canada Post offices or mailboxes with receipt requested, provided that the notice contains adequate postage and the correct mailing address of the Party contained in this Agreement is inscribed on the notice. The notice of objection to the demand of earnest money will be deemed effective upon receipt by the escrow agent.
  63. Seller Representations
  64. The Seller represents and warrants that there will be no liens, assessments, or security interests from third parties against the Property which will not be satisfied out of the sales proceeds. The Seller makes no representation aside from those expressly provided in this Agreement. If the representations of the Seller are untrue upon the Closing Date, the Buyer may terminate this Agreement and the earnest money will be refunded within ten days.
  65. Notices
  66. All notices pursuant to this Agreement must be written and signed by the respective Party or its agent and all such correspondence will be effective upon it being mailed with return receipt requested, hand-delivered, or transmitted by facsimile as follows:

    To the Buyer at:

    To the Seller at:

    Name: _______________
    Address: ______________________________
    Telephone: _______________
    Facsimile: _______________

    Name: _______________
    Address: ______________________________
    Telephone: _______________
    Facsimile: _______________

  67. Addenda
  68. In addition to any aforementioned required documents, these addenda will also constitute as part of this Agreement:
    Third Party Financing Condition Addendum.
  69. Assignability
  70. The Buyer may not assign this Agreement without the Seller’s written consent. This Agreement is binding on the respective heirs, executors, administrators, successors, personal representatives and assigns, as the case may be, of the Seller and the Buyer.
  71. Effective Date
  72. The effective date of this Agreement (the "Effective Date") is the latter of the date the Buyer executed this Agreement and the date the Seller executed this Agreement.
  73. Governing Law
  74. The Parties agree this Agreement will be construed under the laws of The Province of Ontario, without regard to the jurisdiction in which any action or special proceeding may be instituted.
  75. Tender
  76. Any tender of documents or money hereunder may be made upon the Seller or Buyer or their respective lawyers on the Closing Date. Money shall be tendered with funds drawn on a lawyer's trust account in the form of a bank draft, certified cheque, or wire transfer using the Large Value Transfer System.
  77. Spousal Interests
  78. The Seller warrants that no spousal consent is required to give effect to this real estate transaction, under the provisions of the Family Law Act, R.S.O 1990, other than the spousal consent provided in this Agreement.
  79. Urea Formaldehyde Foam Insulation
  80. Seller represents and warrants to the Buyer that during the time the Seller has owned the property, the Seller has not caused any building on the Property to be insulated with insulation containing ureaformaldehyde, and that to the best of the Seller’s knowledge no building on the Property contains or has ever contained insulation that contains ureaformaldehyde. This warranty shall survive and not merge on the completion of this transaction. If the building is part of a multiple unit building, this warranty shall only apply to that part of the building which is the subject of this transaction.
  81. Severability
  82. If there is a conflict between any provision of this Agreement and the applicable legislation of The Province of Ontario (the "Act"), the Act will prevail and such provisions of the Agreement will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Agreement.
  83. If any terms or provision of this Agreement are determined to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this Agreement will not be affected and each unaffected term and provision of this Agreement will be valid and be enforceable to the fullest extent permitted by law.
  84. No Broker or Agent
  85. There are no obligations on either Party for the payment of broker fees in this Agreement. The Parties agree that no real estate brokers or agents were procured for their services in connection with this Agreement or any part of the sale agreement prior to the signing of this Agreement. If a broker or agent was retained, the Party which employed the said broker or agent will be solely liable for the costs associated with it.
  86. Agreement of Parties
  87. This document constitutes the entire agreement of the Parties and it may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreement. The provisions contained in this Agreement cannot be changed except by the signed and delivered written consent of both Parties.
  88. Consult a Lawyer
  89. The Seller and the Buyer should consult a lawyer before this Agreement is executed if any aspect of the Agreement is not understood. The Seller and the Buyer agree each will notify the other of the contact information for the respective lawyer, if any, responsible for this real estate transaction.
  90. General Provisions
  91. This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.
  92. All monetary amounts in this Agreement refer to Canadian dollars, and all payments required to be paid under this Agreement will be paid in Canadian dollars unless the Parties agree otherwise in writing.
  93. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine gender mean and include the feminine gender and vice versa. Words importing persons include firms and corporations and vice versa.
  94. Time is of the essence in this Agreement. Every calendar day except Saturday, Sunday or a statutory holiday recognized in The Province of Ontario will be deemed a business day and all relevant time periods in this Agreement will be calculated in business days. Performance will be due the next business day, if any deadline falls on a Saturday, Sunday or a national holiday. A business day ends at five p.m. local time in the time zone in which the Property is situated.
  95. Any reference to a time and date in this Agreement shall mean the time and date where the Property is located.
  96. Spousal Consent
  97. The undersigned spouse of the Seller consents to the disposition evidenced by this Agreement pursuant to the provisions of the Family Law Act, R.S.O.1990, and agrees to execute all necessary or incidental documents to give full force and effect to the sale.

    ____________________________                    ____________________________
    Witness                                                              Spouse

    SIGNED, SEALED AND DELIVERED in the presence of:

     

    IN WITNESS whereof I have hereunto set my hand and seal:

    ____________________
    Witness

    ____________________
    _______________

    ______________
    Date

    SIGNED, SEALED AND DELIVERED in the presence of:

     

    IN WITNESS whereof I have hereunto set my hand and seal:

    ____________________
    Witness

    ____________________
    _______________

    ______________
    Date


RECEIPT

The Receipt of $____________ as Earnest Money in the form of __________________ is hereby acknowledged on this ______ day of _________, 2017.

Name: __________

Address: __________

Tel: ____________

Fax: ____________

Signature: ____________

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