The Loi Commercial (Real Estate) contract is a specialized legal document used in Canadian commercial real estate transactions. It serves as the primary agreement for buying, selling, or leasing commercial properties, incorporating both federal and provincial legal requirements. This document is essential when dealing with commercial property transactions in Canada, particularly where significant financial interests and complex property rights are involved. It includes comprehensive provisions for property transfer, environmental compliance, zoning regulations, and commercial tenancy arrangements. The contract is designed to address the unique aspects of Canadian commercial real estate law, including GST/HST considerations, land transfer tax requirements, and provincial-specific regulations. It's particularly relevant for transactions involving office buildings, retail spaces, industrial properties, and mixed-use developments within Canadian jurisdiction.
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1. Parties: Identification of all parties to the agreement, including legal names and addresses
2. Background: Context of the transaction and brief description of the property
3. Definitions: Defined terms used throughout the agreement
4. Property Description: Detailed legal description of the property and included fixtures/chattels
5. Purchase Price and Payment Terms: Transaction value, payment structure, and deposit requirements
6. Conditions Precedent: Conditions that must be satisfied before closing
7. Due Diligence: Buyer's investigation rights and process
8. Representations and Warranties: Statements of fact and guarantees by both parties
9. Closing Procedures: Process and requirements for completing the transaction
10. Title and Ownership: Title requirements and transfer provisions
11. Property Condition: State of the property and any associated warranties
12. Environmental Matters: Environmental conditions and responsibilities
13. Default and Remedies: Consequences of breach and available remedies
14. Notices: Communication requirements and contact details
15. Governing Law: Applicable law and jurisdiction
1. Tenant Rights and Obligations: Required if property is sold with existing tenants
2. Property Management: Include if transfer includes ongoing management agreements
3. Development Rights: Required if property has development potential or pending applications
4. Financing Conditions: Include if purchase is subject to financing
5. Assignment Rights: Include if assignment of contract rights is contemplated
6. Tax Structuring: Required for complex tax arrangements or cross-border transactions
7. Construction Obligations: Include if property involves ongoing or planned construction
8. Property Access Pre-Closing: Include if buyer needs special access arrangements before closing
1. Schedule A - Legal Description: Detailed legal description of the property
2. Schedule B - Permitted Encumbrances: List of accepted liens, easements, and encumbrances
3. Schedule C - Purchase Price Allocation: Breakdown of purchase price for tax purposes
4. Schedule D - Existing Tenancies: Details of current lease agreements and tenants
5. Schedule E - Environmental Reports: List of environmental studies and findings
6. Schedule F - Service Contracts: List of transferring service and maintenance contracts
7. Schedule G - Property Documents: List of property documents to be transferred
8. Schedule H - Form of Transfer/Deed: Form of transfer documentation
9. Appendix 1 - Site Plan: Property layout and boundaries
10. Appendix 2 - Building Plans: Architectural and structural plans
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