As Is Offer To Purchase (Real Estate) Template for Canada
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What is a As Is Offer To Purchase (Real Estate)?
The As Is Offer To Purchase (Real Estate) is a specialized contract used in Canadian real estate transactions when a property is being sold without warranties or representations about its condition. This document is particularly relevant in situations involving distressed properties, estate sales, foreclosures, or when sellers wish to limit their post-sale liability. The agreement explicitly states that the buyer accepts the property's current condition, including any visible or hidden defects. It's governed by Canadian federal and provincial real estate laws and requires careful attention to local jurisdiction requirements. The document typically includes comprehensive property details, purchase terms, buyer acknowledgments of property condition, and specific provisions protecting the seller from future claims related to property condition. This type of agreement is increasingly common in competitive real estate markets where buyers are willing to accept properties "as is" to secure the purchase.
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Frequently Asked Questions
Is an As Is Offer to Purchase legally binding in Canada?
Yes, an As Is Offer to Purchase is legally binding in Canada once both parties sign and all conditions are met. The contract is governed by the Real Estate and Business Brokers Act (REBBA) and provincial real estate laws. Once accepted, both buyer and seller are legally obligated to complete the transaction according to the terms specified in the agreement.
How does an As Is offer differ from a standard purchase agreement in Canada?
An As Is offer removes the seller's warranty obligations and the buyer's right to demand repairs or credits for defects. Unlike standard agreements, buyers cannot request property condition disclosures or negotiate based on inspection findings. The buyer accepts all visible and hidden defects, while standard agreements typically include condition and warranty clauses.
Can I back out of an As Is real estate deal in Canada?
You can only withdraw from an As Is purchase if specific conditions in the contract aren't met, such as financing or title issues. Unlike standard purchases, you cannot use property condition or inspection results as grounds for withdrawal. Breaking the contract without valid legal grounds can result in forfeiting your deposit and potential legal action for damages.
Are sellers required to disclose known defects in As Is sales in Canada?
Yes, sellers must still disclose known material defects and latent defects even in As Is sales under Canadian law and REBBA regulations. While buyers waive their right to demand repairs, sellers cannot deliberately conceal major issues like structural problems, environmental hazards, or legal encumbrances. Fraudulent concealment can void the As Is protection.
How long does it take to prepare an As Is Offer to Purchase in Canada?
An As Is Offer to Purchase can typically be prepared within 1-2 hours using a proper template. However, you should allow additional time for legal review and negotiation of specific terms. Most real estate agents can draft the initial offer same-day, but having a lawyer review the document may add 1-2 business days to ensure compliance with provincial requirements.
Should I get a home inspection before making an As Is offer in Canada?
Yes, getting a pre-offer inspection is crucial for As Is purchases since you cannot negotiate repairs or withdraw based on condition after signing. While you'll pay inspection costs upfront ($400-$800), this protects you from discovering major issues after becoming legally bound. The inspection helps you make an informed offer price accounting for needed repairs.
Can financing conditions be included in an As Is Offer to Purchase?
Yes, financing conditions can and should be included in As Is offers in Canada. These conditions protect buyers if they cannot secure mortgage approval, which is separate from property condition warranties. Standard financing conditions give buyers 5-10 business days to arrange financing, and failure to secure approved financing allows contract withdrawal without penalty.
About the As Is Offer To Purchase (Real Estate)
An As Is Offer To Purchase (Real Estate) is a binding legal contract that allows you to buy or sell property in Canada without any warranties or guarantees about the property's condition. Unlike standard purchase agreements, this document explicitly states that you accept the property with all existing defects, whether visible or hidden, and the seller provides no assurances about repairs, functionality, or compliance with building codes.
When do you need this document?
You'll need this agreement when purchasing distressed properties, foreclosures, or estate sales where extensive repairs may be required. It's also common in competitive real estate markets where buyers waive inspection conditions to make stronger offers. Property investors frequently use these agreements when acquiring rental properties or fixer-uppers where they plan to renovate extensively. Additionally, sellers facing financial difficulties or inheriting unwanted properties often prefer "as is" sales to avoid costly pre-sale repairs and reduce their legal exposure to future claims about property conditions.
Key legal considerations
The most critical aspect is understanding that you waive your right to claim compensation for any property defects discovered after closing. This includes structural issues, mechanical problems, environmental hazards, or code violations that weren't disclosed. You must still receive proper legal descriptions and clear title, but condition-related protections are eliminated. The agreement should specify exactly what inspections, if any, are permitted before closing. Consider including clauses about access for professional inspections, even in "as is" sales, to understand potential repair costs. Environmental liability provisions are particularly important, as you may inherit responsibility for contamination or hazardous materials on the property.
Legal requirements in Canada
Under the Real Estate and Business Brokers Act (REBBA), all material facts about the property must still be disclosed, even in "as is" sales. The agreement must comply with the Statute of Frauds, requiring written documentation with proper signatures from all parties. Provincial Land Registration Reform Act requirements govern title transfer procedures and legal property descriptions. The Planning Act may affect your transaction if zoning violations exist, as "as is" doesn't exempt you from municipal compliance obligations. Your agreement must include mandatory disclosure periods and cooling-off rights where required by provincial law. Real estate professionals involved must still meet their fiduciary duties and disclosure obligations, despite the "as is" nature of the sale. Consider engaging a real estate lawyer to ensure compliance with local requirements and protect your interests in this higher-risk transaction type.
GOVERNING LAW
Applicable law
This As Is Offer To Purchase (Real Estate) is drafted to comply with Canada law. Key legislation includes:
Land Registration Reform Act: Governs the registration and transfer of real property interests in Canada, including requirements for legal property descriptions and title transfer
Statute of Frauds: Requires certain contracts, including real estate transactions, to be in writing and properly executed to be legally enforceable
Planning Act: Controls land use and division, affecting property transfers and ensuring compliance with local zoning and development regulations
Environmental Protection Act: Relevant for 'As Is' sales as it pertains to environmental liabilities and disclosure requirements regarding environmental conditions
Provincial Property Law Acts: Various provincial laws governing property rights, transfers, and obligations specific to each province
Consumer Protection Act: While less applicable in 'As Is' sales, still relevant for basic consumer rights and protection in real estate transactions
Personal Information Protection and Electronic Documents Act (PIPEDA): Governs the collection, use, and disclosure of personal information in real estate transactions
Proceeds of Crime (Money Laundering) and Terrorist Financing Act: Requires real estate professionals to verify identity and report suspicious transactions in property purchases
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