Contract Of Purchase And Sale Addendum for Canada

Contract Of Purchase And Sale Addendum Template for Canada

A legal document used in Canadian jurisdictions to modify, supplement, or amend an existing Contract of Purchase and Sale for real property. This document allows parties to make specific changes to the original agreement while maintaining the validity of other unchanged terms. It addresses various modifications such as purchase price adjustments, closing date changes, additional conditions, or property specifications, ensuring compliance with both federal and provincial real estate laws. The addendum must be executed with the same formality as the original agreement and becomes an integral part of the purchase and sale documentation.

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What is a Contract Of Purchase And Sale Addendum?

The Contract of Purchase and Sale Addendum is a crucial document in Canadian real estate transactions when modifications to an original purchase agreement become necessary. It is commonly used when circumstances change between the initial agreement and closing, requiring amendments to terms such as price, closing date, conditions, or property specifications. This document type ensures that changes are properly documented and legally binding while preserving the original agreement's framework. The addendum must comply with provincial property laws and federal regulations, making it essential to involve legal professionals in its preparation. Common scenarios for using this addendum include addressing issues discovered during property inspection, accommodating financing changes, or responding to market conditions affecting the transaction terms.

What sections should be included in a Contract Of Purchase And Sale Addendum?

1. Parties: Identification of all parties to the original agreement and addendum, including full legal names and addresses

2. Background: Reference to the original purchase and sale agreement, including its date and basic terms

3. Definitions: Key terms used in the addendum, including references to defined terms from the original agreement

4. Purpose of Addendum: Clear statement of the reason for the addendum and its relationship to the original agreement

5. Modifications to Original Agreement: Specific changes, additions, or deletions to the original agreement's terms

6. Confirmation of Other Terms: Statement confirming that all other terms of the original agreement remain unchanged

7. Integration Clause: Statement that the addendum and original agreement constitute the entire agreement between the parties

8. Execution: Signature blocks for all parties and date of execution

What sections are optional to include in a Contract Of Purchase And Sale Addendum?

1. Additional Purchase Price Terms: Used when the addendum modifies the original purchase price or payment terms

2. Extended Closing Date: Used when the addendum changes the closing date of the transaction

3. Additional Conditions: Used when new conditions precedent are being added to the agreement

4. Property Modifications: Used when changes to the property description or included items are needed

5. Financing Terms: Used when modifications to financing arrangements are required

6. Inspection Provisions: Used when additional inspection requirements or timelines are being added

7. Environmental Conditions: Used when environmental issues need to be addressed

8. Construction Requirements: Used when specific construction or renovation terms need to be added

What schedules should be included in a Contract Of Purchase And Sale Addendum?

1. Schedule A - Modified Property Description: Detailed description of any changes to the property specifications or included items

2. Schedule B - Revised Payment Schedule: Updated payment terms or schedule if modified from original agreement

3. Schedule C - Additional Conditions: Detailed description of new conditions or requirements

4. Schedule D - Modified Closing Documents: List of additional or modified closing documents required

5. Appendix 1 - Property Modifications: Drawings, plans, or specifications for any property modifications

6. Appendix 2 - Inspection Reports: Any relevant inspection reports or findings referenced in the addendum

7. Appendix 3 - Environmental Reports: Environmental assessment reports or findings if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Real Estate

Commercial Property

Residential Property

Construction

Property Development

Banking and Finance

Legal Services

Insurance

Agriculture

Retail

Industrial

Hospitality

Relevant Teams

Legal

Real Estate

Property Management

Acquisitions

Compliance

Risk Management

Contract Administration

Transaction Processing

Business Development

Operations

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Real Estate Broker

Legal Counsel

Conveyancing Lawyer

Contract Administrator

Transaction Coordinator

Mortgage Specialist

Property Developer

Acquisition Manager

Real Estate Investment Manager

Commercial Property Manager

Legal Operations Manager

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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