For Sale By Owner Contract for Canada

For Sale By Owner Contract Template for Canada

A For Sale By Owner Contract is a legally binding agreement used in Canadian real estate transactions where the property owner sells their property directly to a buyer without the involvement of a real estate agent. This document, governed by Canadian federal and provincial real estate laws, outlines all essential aspects of the property sale including property details, purchase price, payment terms, conditions of sale, and closing requirements. It incorporates necessary provisions to comply with provincial property laws and consumer protection regulations while ensuring both parties' interests are protected throughout the transaction process.

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What is a For Sale By Owner Contract?

The For Sale By Owner Contract is specifically designed for use in Canadian real estate transactions where property owners choose to sell their property directly to buyers without engaging real estate agents. This approach, while potentially cost-saving, requires a comprehensive legal document that ensures all aspects of the sale are properly documented and legally binding. The contract must comply with federal and provincial real estate laws, including property transfer regulations, consumer protection requirements, and financial transaction reporting obligations. It typically includes detailed property descriptions, purchase terms, conditions, warranties, and closing requirements. This document is particularly important as it serves as the primary legal protection for both parties in the absence of professional real estate representation, and must therefore be especially thorough in addressing all potential aspects of the property transfer.

What sections should be included in a For Sale By Owner Contract?

1. Parties: Identification of the seller and buyer with full legal names and current addresses

2. Background: Brief context of the sale and confirmation that the seller owns the property and wishes to sell to the buyer

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Property Description: Detailed legal description of the property including address, lot number, and property identification number

5. Purchase Price and Payment Terms: The agreed purchase price, deposit amount, and payment schedule

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

7. Title and Ownership: Guarantees regarding clear title and process for title transfer

8. Representations and Warranties: Statements of fact by both parties regarding the property and their capacity to enter into the agreement

9. Property Condition: Current state of the property and any known defects or issues

10. Inspections and Due Diligence: Buyer's rights and timeframes for property inspections and review of documentation

11. Closing Conditions: Conditions that must be met before the sale can be completed

12. Closing Costs and Adjustments: Allocation of closing costs and adjustments for taxes, utilities, and other expenses

13. Default and Remedies: Consequences and available remedies if either party fails to fulfill their obligations

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

15. Governing Law: Specification that the agreement is governed by Canadian law and the applicable province

16. Execution: Signature blocks and date of agreement

What sections are optional to include in a For Sale By Owner Contract?

1. Financing Conditions: Include when buyer's purchase is contingent on obtaining mortgage financing

2. Sale of Buyer's Property: Include when purchase is conditional on buyer selling their current property

3. Chattels and Fixtures: Include when specific items of personal property are included or excluded from the sale

4. Rental Units: Include when property contains tenant-occupied units

5. Environmental Matters: Include when there are known environmental issues or special requirements

6. Heritage Requirements: Include when property is designated as heritage or in a heritage conservation area

7. Condominium Provisions: Include when the property is a condominium unit

8. Survey Provisions: Include when a new survey is required or existing survey needs verification

9. Well and Septic Provisions: Include for rural properties with private water and sewage systems

What schedules should be included in a For Sale By Owner Contract?

1. Schedule A - Property Description: Detailed legal description and property boundaries

2. Schedule B - Included Chattels: List of all moveable items included in the sale

3. Schedule C - Excluded Fixtures: List of attached items that are not included in the sale

4. Schedule D - Current Tenancies: Details of any existing lease agreements

5. Schedule E - Property Disclosure Statement: Seller's declarations about property condition and known issues

6. Schedule F - Title Search Results: Summary of title search showing encumbrances and restrictions

7. Appendix 1 - Property Photographs: Dated photographs documenting property condition at time of agreement

8. Appendix 2 - Floor Plans: Current floor plans and property measurements

9. Appendix 3 - Recent Property Tax Assessment: Copy of most recent property tax assessment

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

Municipal Government

Environmental Services

Property Inspection Services

Relevant Teams

Legal

Real Estate Operations

Property Management

Compliance

Risk Assessment

Document Processing

Title Insurance

Mortgage Services

Property Development

Environmental Assessment

Relevant Roles

Property Owner

Real Estate Lawyer

Title Insurance Officer

Mortgage Broker

Property Appraiser

Home Inspector

Bank Manager

Legal Document Specialist

Compliance Officer

Property Developer

Real Estate Investor

Municipal Planning Officer

Insurance Underwriter

Environmental Assessment 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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