The Agreement of Purchase and Sale (APS) is a crucial legal document governing Ontario’s real estate transactions. It is used by the Ontario Real Estate Association (OREA) and sets out the terms and conditions of the sale between the buyer and seller. This document is legally binding and outlines the obligations of both parties throughout the sale process. Here is a closer look at the OREA APS and what it entails:
Agreement of Purchase and Sale Basics
The OREA APS is a standardized legal document used by real estate agents and their clients in Ontario. The document contains all the terms and conditions of the sale, including the purchase price, closing date, conditions, and any other agreements between the buyer and seller. Both parties typically sign the document once an agreement has been reached. This agreement can also include amendments, addendums, schedules, and confirmation of cooperation and representation.
The OREA APS contains several clauses that are critical to the sale process. Some of the most important clauses include:
a) Chattels and Fixtures: This clause identifies which items are included in the sale, such as appliances, window coverings, and light fixtures.
b) Conditions: This clause outlines any conditions that must be met before the sale can proceed, such as financing or inspection contingencies.
c) Closing Date: This clause specifies the date on which the sale will close and ownership will be transferred. This is also referred to as the “completion date”.
d) Purchase Price: This clause sets the monetary value to be paid from the buyer to the seller for the sale of the property on the closing date.
e)Deposit: This clause sets out the amount of the deposit that the buyer must pay, which is typically held in trust until the sale is completed.
OREA APS vs. Custom Agreements
While the OREA APS is a standardized document that is widely used in Ontario, buyers and sellers can also choose to use a custom agreement instead. Custom agreements can be tailored to meet the parties’ specific needs, but they are typically more complex and might require assistance from a lawyer to draft and negotiate.
The OREA APS is a legally binding document, and it is essential that buyers and sellers understand its terms and conditions before signing it. A real estate lawyer can review the agreement to ensure that it is fair and reasonable and that the client’s interests are protected. They can also advise clients on any legal considerations that may arise throughout the sale process.
In conclusion, the OREA Agreement of Purchase and Sale is a critical legal document governing Ontario’s real estate transactions. Buyers and sellers should ensure that they understand its terms and conditions before signing it and seek legal advice to protect their interests throughout the sale process.
The information provided above is of a general nature and should not be considered legal advice. Every transaction or circumstance is unique, and obtaining specific legal advice is necessary to address your particular requirements. Therefore, if you have any legal questions, it is recommended that you consult with a lawyer.