The Builders Agreement of Purchase and Sale is a crucial document in Canadian real estate development and new home construction transactions. It is specifically designed for situations where a builder or developer is selling a yet-to-be-built or under-construction property to a purchaser. This agreement combines elements of both a traditional real estate purchase agreement and a construction contract, incorporating provincial statutory requirements, building codes, and warranty obligations. It's particularly important in protecting both parties' interests during the extended period between agreement signing and property completion. The document is essential for compliance with provincial new home warranty programs (such as Tarion in Ontario), municipal building requirements, and consumer protection legislation. It typically includes detailed construction specifications, completion timelines, payment schedules, and warranty terms, making it more complex than standard resale property agreements.
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1. Parties: Identification of the Builder/Vendor and Purchaser(s) with full legal names and addresses
2. Background: Context of the agreement, including property description and intention to construct and sell
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Purchase Price and Payment Terms: Total purchase price, deposit structure, and payment schedule
5. Property Description: Legal description of the lot and proposed building specifications
6. Construction Specifications: Overview of construction standards, materials, and finishing details
7. Construction Timeline: Expected commencement and completion dates, including permitted delays
8. Closing Conditions: Requirements for closing, including documentation and inspections
9. Warranties and Representations: Statutory and additional warranties provided by the builder
10. Title and Ownership: Provisions regarding clear title transfer and permitted encumbrances
11. Adjustments: Items to be adjusted on closing, including taxes and development charges
12. Default and Remedies: Consequences of default by either party and available remedies
13. Assignment: Terms regarding the purchaser's right to assign the agreement
14. Notices: Communication requirements and contact information for formal notices
15. General Provisions: Standard clauses including governing law, severability, and entire agreement
1. Financing Conditions: Used when purchaser requires mortgage financing, including conditions and deadlines
2. Upgrade Selections: Include when offering customization options and upgrade packages
3. Sale of Existing Home: Required when purchase is conditional on buyer selling their current property
4. HST Rebate: Include for new residential properties eligible for HST new housing rebate
5. Rental Units: Required when the property includes secondary rental units or basement apartments
6. Development Conditions: Used when construction is subject to municipal approvals or rezoning
7. Phase Development: Include for properties part of a larger development project
8. Common Elements: Required for properties within planned communities or shared facilities
1. Schedule A - Legal Description: Detailed legal description of the property and lot specifications
2. Schedule B - Site Plan: Layout of the property, building location, and site features
3. Schedule C - Floor Plans: Detailed plans of all floors and room layouts
4. Schedule D - Standard Features: List of included features, materials, and finishes
5. Schedule E - Upgrade Options: Available upgrades and their associated costs
6. Schedule F - Payment Schedule: Detailed breakdown of deposit and payment milestones
7. Schedule G - Construction Specifications: Detailed construction methods, materials, and standards
8. Schedule H - Warranty Information: Details of builder warranty coverage and procedures
9. Appendix 1 - Tarion Warranty Information: Mandatory Tarion warranty documentation
10. Appendix 2 - Development Conditions: Municipal approvals and development requirements
Relevant legal definitions
Agreement
Adjustments
Approved Plans
Builder
Building
Building Code
Closing Date
Commencement Date
Common Elements
Completion
Construction Lien
Construction Schedule
Deposit
Development
Development Charges
Fixtures
Force Majeure
HST
HST Rebate
Improvements
Interim Occupancy
Land
Material Change
Municipality
Occupancy Certificate
Occupancy Date
Permitted Encumbrances
Plans and Specifications
Property
Purchase Price
Purchaser
Required Permits
Security Interest
Site Plan
Substantial Completion
Standard Features
Statement of Critical Dates
Tarion Warranty Corporation
Title
Unavoidable Delay
Upgrades
Vendor
Warranty
Work Order
Adjustments
Approved Plans
Builder
Building
Building Code
Closing Date
Commencement Date
Common Elements
Completion
Construction Lien
Construction Schedule
Deposit
Development
Development Charges
Fixtures
Force Majeure
HST
HST Rebate
Improvements
Interim Occupancy
Land
Material Change
Municipality
Occupancy Certificate
Occupancy Date
Permitted Encumbrances
Plans and Specifications
Property
Purchase Price
Purchaser
Required Permits
Security Interest
Site Plan
Substantial Completion
Standard Features
Statement of Critical Dates
Tarion Warranty Corporation
Title
Unavoidable Delay
Upgrades
Vendor
Warranty
Work Order
Clauses
Purchase and Sale
Payment Terms
Construction Specifications
Warranties and Representations
Title and Ownership
Closing Conditions
Property Description
Construction Timeline
Permits and Approvals
Default and Remedies
Force Majeure
Insurance Requirements
Assignment Rights
Deposit Protection
Construction Standards
Inspection Rights
Environmental Compliance
Property Access
Material Changes
Occupancy Conditions
Tax Provisions
Warranty Program Compliance
Development Requirements
Municipal Compliance
Notice Requirements
Dispute Resolution
Registration Rights
Termination Rights
Survival
Indemnification
Amendment Procedures
Entire Agreement
Severability
Governing Law
Time of Essence
Payment Terms
Construction Specifications
Warranties and Representations
Title and Ownership
Closing Conditions
Property Description
Construction Timeline
Permits and Approvals
Default and Remedies
Force Majeure
Insurance Requirements
Assignment Rights
Deposit Protection
Construction Standards
Inspection Rights
Environmental Compliance
Property Access
Material Changes
Occupancy Conditions
Tax Provisions
Warranty Program Compliance
Development Requirements
Municipal Compliance
Notice Requirements
Dispute Resolution
Registration Rights
Termination Rights
Survival
Indemnification
Amendment Procedures
Entire Agreement
Severability
Governing Law
Time of Essence
Relevant Industries
Real Estate
Construction
Legal Services
Banking and Finance
Insurance
Urban Development
Architecture and Design
Property Development
Municipal Government
Consumer Services
Relevant Teams
Legal
Real Estate Sales
Construction Management
Property Development
Compliance and Regulatory
Customer Service
Design and Architecture
Contract Administration
Quality Assurance
Finance
Relevant Roles
Construction Project Manager
Real Estate Lawyer
Property Developer
Real Estate Agent
Construction Manager
Architectural Designer
Building Code Inspector
Warranty Administrator
Sales Manager
Contract Administrator
Development Director
Legal Counsel
Construction Supervisor
Compliance Officer
Real Estate Broker
Title Examiner
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