Contract To Sell (Real Estate) for Canada

Contract To Sell (Real Estate) Template for Canada

A legally binding agreement used in Canadian real estate transactions that outlines the terms and conditions for the sale and purchase of real property. This document complies with Canadian federal and provincial real estate laws and regulations, detailing the rights and obligations of both the seller and buyer. It includes essential elements such as property description, purchase price, payment terms, closing conditions, and warranties, while incorporating jurisdiction-specific requirements for property transfer in Canada. The agreement serves as the primary document for establishing the legal framework of the property sale transaction and ensuring all parties' interests are protected under Canadian law.

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What is a Contract To Sell (Real Estate)?

The Contract to Sell (Real Estate) is a fundamental legal document used in Canadian property transactions to formalize the sale and purchase of real estate. This agreement is essential when any party wishes to sell or purchase property in Canada, whether residential, commercial, or industrial. It must comply with both federal and provincial legal requirements and typically includes detailed information about the property, parties involved, purchase price, payment terms, conditions of sale, and closing requirements. The document serves as the primary evidence of the transaction terms and protects both parties' interests throughout the sale process. It is particularly important in Canadian jurisdictions where real estate transactions must follow specific provincial regulations and requirements for property transfer, and where certain elements must be in writing to be legally enforceable under the Statute of Frauds.

What sections should be included in a Contract To Sell (Real Estate)?

1. Parties: Identifies and provides full legal names and addresses of the seller(s) and buyer(s)

2. Background: Establishes the context of the agreement and confirms the seller's ownership and right to sell the property

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Property Description: Detailed legal description of the property including address, boundaries, and registration details

5. Purchase Price: Specifies the agreed purchase price and payment terms, including deposit requirements

6. Deposit: Details of the deposit amount, payment schedule, and how it will be held in trust

7. Closing: Specifies the closing date, time, and location for completing the transaction

8. Title and Ownership: Warranties regarding clear title and process for title transfer

9. Property Condition: Describes the condition in which the property will be delivered and any included/excluded items

10. Representations and Warranties: Standard declarations by both parties regarding their capacity to enter the agreement and state of the property

11. Conditions Precedent: Conditions that must be satisfied before the agreement becomes binding

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. Governing Law: Confirms that the agreement is governed by Canadian law and specifies the applicable province

15. Execution: Signature blocks and witnessing requirements

What sections are optional to include in a Contract To Sell (Real Estate)?

1. Financing Conditions: Used when the purchase is contingent on the buyer obtaining mortgage financing

2. Property Inspection: Include when the sale is conditional on satisfactory property inspection

3. Existing Tenancies: Required when the property has current tenants and details their rights and arrangements

4. HST/GST Provisions: Necessary for new construction or commercial properties subject to HST/GST

5. Environmental Conditions: Include for properties where environmental assessments are relevant

6. Assignment: Used when allowing/restricting the buyer's right to assign the agreement

7. Foreign Buyer Provisions: Required when the buyer is a non-resident of Canada

8. Chattels and Fixtures: Detailed list of movable items included/excluded in the sale

9. Condominium Provisions: Specific terms required for condominium property sales

What schedules should be included in a Contract To Sell (Real Estate)?

1. Schedule A - Property Description: Detailed legal description of the property and land survey details

2. Schedule B - Included Items: Comprehensive list of fixtures and chattels included in the sale

3. Schedule C - Excluded Items: List of items specifically excluded from the sale

4. Schedule D - Title Exceptions: List of permitted encumbrances and title restrictions

5. Schedule E - Special Conditions: Any additional terms, conditions, or requirements specific to the transaction

6. Appendix 1 - Property Disclosure Statement: Seller's declarations about the property's condition and known issues

7. Appendix 2 - Floor Plans and Surveys: Current plans and surveys of the property

8. Appendix 3 - Environmental Reports: Any environmental assessments or reports if applicable

9. Appendix 4 - Title Search Results: Current title search showing ownership and encumbrances

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 legal definitions
Clauses
Relevant Industries

Real Estate

Legal Services

Banking and Finance

Insurance

Property Development

Construction

Property Management

Professional Services

Property Investment

Residential Housing

Commercial Property

Relevant Teams

Legal

Real Estate

Sales

Compliance

Property Management

Business Development

Risk Management

Operations

Finance

Documentation

Administration

Relevant Roles

Real Estate Agent

Real Estate Broker

Property Lawyer

Legal Counsel

Property Manager

Real Estate Developer

Title Examiner

Mortgage Broker

Real Estate Paralegal

Property Appraiser

Transaction Coordinator

Real Estate Investment Manager

Compliance Officer

Real Estate Administrator

Business Development Manager

Sales Director

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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