Pre Sale Purchase Agreement Template for Canada

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Key Requirements PROMPT example:

Pre Sale Purchase Agreement

"I need a Pre Sale Purchase Agreement for a luxury 45-unit condominium development in Vancouver, with completion expected in March 2025, including specific clauses for high-end amenities such as concierge service and private rooftop access, and provisions for foreign buyers."

What is a Pre Sale Purchase Agreement?

The Pre Sale Purchase Agreement is a fundamental document in Canadian real estate development, used specifically when selling properties that have not yet been constructed or are still under construction. This agreement is essential in markets where pre-construction sales are common, particularly in urban development areas across Canadian provinces. It serves multiple purposes: securing the developer's funding requirements, establishing legally binding commitments from purchasers, and protecting both parties' interests throughout the construction and eventual property transfer process. The document must comply with provincial real estate development marketing laws, consumer protection regulations, and construction standards. It typically includes comprehensive details about the property specifications, payment terms, construction timelines, warranty provisions, and closing requirements. The agreement is particularly important in Canadian jurisdictions where specific legislative requirements exist for pre-sale marketing and buyer protection in real estate developments.

What sections should be included in a Pre Sale Purchase Agreement?

1. Parties: Identification of the Developer/Seller and Purchaser with full legal names and addresses

2. Background: Context of the development project, property details, and purpose of the agreement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the property including legal description, unit number, and approximate size

5. Purchase Price: Total purchase price, deposit structure, and payment schedule

6. Construction and Completion: Expected completion date, construction milestones, and developer's obligations

7. Developer's Covenants: Developer's promises regarding construction, warranties, and delivery

8. Purchaser's Covenants: Purchaser's obligations including payment terms and cooperation requirements

9. Adjustments and Closing Costs: Details of closing cost allocations and adjustments to the purchase price

10. Title and Possession: Terms regarding transfer of title and possession of the property

11. Representations and Warranties: Statements of fact and promises by both parties

12. Default and Remedies: Consequences of breach and available remedies for both parties

13. Risk and Insurance: Allocation of risk and insurance requirements during construction

14. Notice: Methods and requirements for official communications between parties

15. General Provisions: Standard contract clauses including governing law, amendment procedures, and severability

What sections are optional to include in a Pre Sale Purchase Agreement?

1. Assignment: Terms for allowing or restricting the purchaser's right to assign the contract, used when assignment rights need to be specifically addressed

2. GST/HST Rebate: Details regarding GST/HST rebates for new housing, included when applicable to the transaction

3. Financing Conditions: Conditions related to purchaser's financing requirements, included when purchaser needs to secure mortgage financing

4. Parking and Storage: Details of parking stalls and storage lockers, included for developments with these amenities

5. Strata Provisions: Special provisions for strata properties, included only for strata developments

6. View and Layout Protection: Provisions regarding protection of views or layout, included when specifically negotiated

7. Rental Restrictions: Terms regarding rental restrictions or permissions, included when relevant to the development

8. Environmental Provisions: Special environmental requirements or certifications, included for green buildings or developments with specific environmental features

What schedules should be included in a Pre Sale Purchase Agreement?

1. Schedule A - Property Plans: Detailed floor plans, site plans, and unit layouts

2. Schedule B - Features and Finishes: Detailed list of included features, materials, and finishing specifications

3. Schedule C - Disclosure Statement: Required disclosure statement under provincial legislation

4. Schedule D - Construction Standards: Detailed construction specifications and building standards

5. Schedule E - Payment Schedule: Detailed breakdown of deposit and payment milestones

6. Schedule F - Permitted Encumbrances: List of permitted liens, encumbrances, and easements

7. Schedule G - Common Area Specifications: Details of common areas and shared facilities

8. Appendix 1 - Warranty Information: New home warranty program details and coverage

9. Appendix 2 - Strata Bylaws: Proposed or existing strata bylaws and regulations

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Property Development

Legal Services

Banking and Finance

Property Management

Real Estate Investment

Urban Planning

Relevant Teams

Legal

Real Estate Development

Sales

Compliance

Construction Management

Property Management

Finance

Marketing

Project Management

Contract Administration

Relevant Roles

Real Estate Developer

Property Development Manager

Real Estate Lawyer

Construction Manager

Sales Director

Real Estate Agent

Property Manager

Compliance Officer

Legal Counsel

Project Manager

Development Executive

Contract Administrator

Real Estate Broker

Financial Controller

Marketing 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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