The last page of the Agreement of Purchase and Sale is normally where all the terms and conditions that are not included in the pre-printed portion appear.

There are two types of clauses, Conditional and Non-conditional.

Conditional clauses are those that must be satisfied before the Agreement of Purchase and Sale becomes binding on both parties.

Non-conditional clauses spell out things that a party to the agreement agrees to do, or that a party to the agreement accepts.

 

Conditional Clauses

Standard Conditions

 This Offer is conditional upon:

1] The Buyer arranging financing, at his expense, satisfactory to the Buyer in the Buyers sole and absolute discretion, and
2] The inspection of the subject property by a qualified home inspector at the Buyer's own expense, and the obtaining of a report satisfactory to the Buyer in the Buyer's sole and absolute discretion. The Seller agrees to co-operate in providing access to the property for the purpose of this inspection, and
3] The Obtaining of insurance for the subject property satisfactory to the Buyer in the Buyer's sole and absolute discretion, and
4] The Buyer receiving a Seller Property Information Statement completed by the Seller and the Buyer accepting the information on said form as satisfactory to the Buyer in the Buyers sole and absolute discretion.

Unless the Buyer gives notice in writing delivered to the Seller or his agent that these conditions have been fulfilled on or before 6:00pm on the ___th day of _________, 200_, this Offer shall become null and void and the Buyers deposit shall be returned in full without interest or deduction. These conditions are included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.

 

The date that these conditions must be fulfilled by is generally set at 4-5 business days from the date of acceptance of the offer in order to give the Buyer sufficient time to investigate.

If the Buyer is satisfied with all the conditions withing this time period, he must sign a Waiver which then makes the sale firm and binding on all parties.

If the Buyer cannot obtain the necessary financing, obtains a non-favourable home inspection, cannot obtain insurance or discovers something in the SPIS that they are not satisfied with, then the offer becomes null and void, and the deposit must be returned to the Buyer in full.

 

Condition on Sale of Buyers Property

This Offer is conditional upon the sale of the Buyer's property known as ___________. Unless the Buyer gives notice in writing delivered to the Seller not later than ___________ p.m. on the ___________, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.

 

 

Provided further that the Seller may continue to offer the property for sale and, in the event the Seller receives another Offer satisfactory to the Seller, the Seller may so notify the Buyer in writing by delivery to the Buyer or to the Buyer's address hereinafter indicated. The Buyer shall have ___________ hours from the giving of such notice to waive this condition by notice in writing delivered to the Seller, failing which this Offer shall be null and void, and the Buyer's deposit shall be returned in full without deduction.

 

This Offer is conditional upon the Seller obtaining a release from a prior Agreement of Purchase and Sale. Unless the Seller gives notice in writing delivered to the Buyer or to the Buyer's address as hereinafter indicated not later than ___________ p.m. on the ___________, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction.

 

 

Non-Conditional Clauses

 

Agreement to Pay

The Buyer agrees to pay the balance of the purchase price, subject to adjustments, by bank draft or certified cheque, to the Seller on the completion of this transaction.

This clause is normally the first to appear on the Schedule A and basically states that the Buyer agrees to pay the balance of the purchase price subject to adjustments.

 

Survey

The Seller agrees, at his expense, to deliver within 3 days of acceptance to the Buyer or the Buyer's agent, a copy of the existing survey of the subject property as drawn by an Ontario Land Surveyor.

Here the Seller is agreeing to provide to the Buyer a copy of the existing survey of the property. The survey may be required by the financial institution granting a mortgage on the property and by the Lawyer dealing with your transaction.

 

Re-visit

The Buyer shall have the right to re-visit the property two further times prior to completion, at a mutually agreed upon time, provided that a minimum of 24 hours verbal notice is given to the Seller. The Seller agrees to provide access to the property for the purpose of these visits.

It could be weeks or even months before you actually move into the home you have just purchased, so most Buyers would like the opportunity to see the property in the interim.

Whether it's to measure for drapes or show the parents, here the Seller is agreeing to let you look at the home 2 more times before you move in.

 

Property Taxes

The Buyer acknowledges that any information supplied by Royal LePage or any Co-Operating broker with respect to municipal taxes are current taxes only. The Buyer acknowledges that the taxes may change as a result of Property Assessment. The Buyer acknowledges that he is not relying on the information with respect to property taxes for 2006 and ensuing years. In the event that the Seller appeals the assessment prior to closing, any rebate involved shall be apportioned between the Seller and the Buyer based on the occupancy of property.

Due to rising property prices, the new assessed value of your new home may be significantly higher than that upon which the current taxes are based. This clause has the Buyer acknowledge that the property taxes may change, i.e. increase.

 

No Interest is Paid or Earned on the Deposit

The parties to this Agreement of Purchase and Sale hereby acknowledge that the Deposit Holder shall place the deposit in trust in its non-interest bearing real estate trust account and no interest shall be earned, received or paid on the deposit.

Due to relatively low interest rates and the small dollar value of interest that may accrue, the Deposit will be held in a non-interest bearing real estate trust account. The deposit holder will earn no interest, so no interest is paid on the deposit.