Affidavit Of Consideration For Use By Buyer Template for Canada

When purchasing real estate in Canada, you'll likely need to complete an Affidavit of Consideration for Use by Buyer as part of your property transaction. This sworn legal document serves as a formal declaration of the actual purchase price and consideration paid for the property, ensuring transparency and compliance with federal and provincial legislation governing real estate transfers.

When do you need this document?

You must prepare this affidavit whenever you're purchasing real property in Canada that requires registration with a provincial land registry office. The document is mandatory for most residential and commercial property purchases, including condominiums, houses, and vacant land. You'll typically need to complete this affidavit before closing, as it's required for calculating land transfer taxes and registering the property transfer. Financial institutions may also require this document if you're obtaining mortgage financing, as it verifies the legitimate source of your down payment and purchase funds.

Key legal considerations

Your affidavit must include a complete and accurate declaration of all consideration paid for the property, including the purchase price, deposits, and any additional payments or benefits provided to the seller. Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, you must declare the legitimate source of your funds and confirm they don't originate from illegal activities. The document requires your identification details, the property's legal description, and transaction specifics from your purchase agreement. You must swear or affirm the affidavit's truthfulness before a Commissioner of Oaths, notary public, or lawyer. Providing false information in this sworn statement constitutes perjury and can result in serious legal consequences, including criminal charges and transaction cancellation.

Legal requirements in Canada

The Canada Evidence Act provides the federal framework for taking affidavits, while provincial Land Registration Acts establish specific requirements for property transfer documentation. Each province has designated Commissioners for Taking Affidavits who are authorized to administer the oath required for your affidavit. The document must comply with your province's Statute of Frauds, which requires certain property-related declarations to be in writing and properly witnessed. Provincial Property Law Acts govern the transfer process and may specify additional disclosure requirements depending on your jurisdiction. Your affidavit becomes part of the permanent land registry records and may be reviewed by tax authorities, law enforcement, and other government agencies. Ensure your legal counsel reviews the document before signing, as amendments after swearing require a new affidavit and can delay your property closing.