Contract To Sell Land for Canada

Contract To Sell Land Template for Canada

A Contract to Sell Land in Canada is a legally binding agreement that facilitates the transfer of real property from a vendor to a purchaser. This document, governed by Canadian federal and provincial laws, outlines the terms and conditions of the land sale, including the purchase price, property description, closing conditions, and obligations of both parties. It incorporates specific Canadian legal requirements such as compliance with the Land Titles Act, provincial property laws, and where applicable, considerations for GST/HST, foreign buyer restrictions, and environmental regulations. The agreement serves as the primary document in the land transfer process and must be in writing to satisfy the Statute of Frauds requirements.

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What is a Contract To Sell Land?

The Contract to Sell Land is a fundamental legal document used in Canadian real estate transactions when transferring ownership of land from one party to another. This agreement is essential for both commercial and residential property transactions and must comply with both federal and provincial legislation. The document typically includes detailed property descriptions, purchase price, payment terms, closing conditions, and various warranties and representations. It's particularly important in the Canadian context due to specific requirements around land registry systems, tax implications, and potential restrictions on foreign ownership. The agreement must be in writing and should address all material aspects of the transaction, including environmental considerations, zoning compliance, and title requirements. This contract type serves as the foundation for the eventual transfer of title and is typically preceded by a more informal Agreement of Purchase and Sale.

What sections should be included in a Contract To Sell Land?

1. Parties: Identification of the Vendor and Purchaser with full legal names and addresses

2. Background: Context of the transaction and brief description of the property being sold

3. Definitions: Key terms used throughout the agreement including Property, Closing Date, Purchase Price, Deposit

4. Property Description: Detailed legal description of the land and any improvements, including municipal address and legal title details

5. Purchase Price and Payment: Total purchase price, deposit amount, payment schedule, and method of payment

6. Closing Date and Possession: Specified date for completion of the transaction and transfer of possession

7. Title and Ownership: Warranties of clear title and conditions of ownership transfer

8. Representations and Warranties: Standard declarations by both parties regarding authority, capacity, and property condition

9. Conditions Precedent: Essential conditions that must be met before closing, including financing and inspections

10. Closing Deliverables: Documents and items to be delivered by each party at closing

11. Adjustments: How property taxes, utilities, and other expenses will be prorated between parties

12. Default and Remedies: Consequences and available remedies if either party fails to perform

13. Notices: How and where formal communications between parties should be delivered

14. General Provisions: Standard contract clauses including governing law, entire agreement, and amendment procedures

What sections are optional to include in a Contract To Sell Land?

1. Tenant Rights and Obligations: Required if the property is currently tenanted, describing existing lease agreements and transition of tenant relationships

2. Environmental Matters: Required for properties with known environmental issues or when environmental assessment is a condition

3. Heritage Requirements: Required for heritage-designated properties or properties in heritage conservation districts

4. Condominium Provisions: Required for condominium properties, including specific obligations and rules

5. Agricultural Land Provisions: Required for farmland or properties under agricultural zoning

6. First Nations Considerations: Required for properties on or adjacent to First Nations lands or subject to land claims

7. Development Conditions: Required when the sale is conditional on specific development approvals or zoning changes

8. Mineral Rights: Required when mineral rights are included or specifically excluded from the sale

9. Water Rights: Required for properties with significant water features or water access rights

What schedules should be included in a Contract To Sell Land?

1. Schedule A - Property Description: Detailed legal description of the land, including surveys and plans

2. Schedule B - Permitted Encumbrances: List of accepted liens, easements, or other encumbrances that will continue after closing

3. Schedule C - Purchase Price Allocation: Breakdown of purchase price between land, buildings, and other improvements

4. Schedule D - Included Chattels: List of personal property included in the sale

5. Schedule E - Excluded Fixtures: List of items typically considered fixtures that are excluded from the sale

6. Schedule F - Current Leases: Copies or summaries of existing lease agreements affecting the property

7. Schedule G - Environmental Reports: Summary or copies of environmental assessments or reports

8. Schedule H - Development Permits: Copies of current development permits or approvals affecting the property

9. Appendix 1 - Property Photographs: Recent photographs documenting the current condition of the property

10. Appendix 2 - Site Plan: Detailed plan showing property boundaries, structures, and significant features

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

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Agriculture

Commercial Development

Residential Development

Industrial

Retail

Hospitality

Energy

Natural Resources

Infrastructure

Education

Healthcare

Government

Relevant Teams

Legal

Real Estate

Property Management

Corporate Development

Acquisitions

Compliance

Finance

Operations

Risk Management

Business Development

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Land Developer

Corporate Counsel

Property Acquisitions Manager

Real Estate Investment Manager

Development Director

Legal Counsel

Compliance Officer

Real Estate Portfolio Manager

Land Use Planner

Transaction Manager

Real Estate Analyst

Title Examiner

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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