Purchase Of House Agreement for Canada

Purchase Of House Agreement Template for Canada

A Purchase of House Agreement is a legally binding contract used in Canadian real estate transactions that documents the terms and conditions of a residential property sale. This comprehensive agreement, governed by Canadian federal and provincial laws, outlines the purchase price, payment terms, closing conditions, and obligations of both the buyer and seller. It includes crucial elements such as property description, warranties, conditions precedent, closing requirements, and various schedules detailing specific aspects of the transaction. The agreement ensures compliance with Canadian real estate regulations while protecting the interests of all parties involved in the property transfer.

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What is a Purchase Of House Agreement?

The Purchase of House Agreement serves as the primary legal document in Canadian residential real estate transactions, establishing the contractual relationship between buyer and seller. This agreement is essential when transferring ownership of residential property in Canada, whether it's a single-family home, townhouse, or condominium unit. The document incorporates requirements from various Canadian federal and provincial legislations, including the Real Estate and Business Brokers Act, Land Registration Reform Act, and relevant property laws. It details critical aspects such as purchase price, payment terms, property description, conditions of sale, warranties, and closing requirements. The agreement should be customized based on provincial requirements, as real estate laws can vary across Canadian jurisdictions. This document is typically prepared with input from real estate professionals and legal counsel to ensure all necessary provisions are included and properly structured.

What sections should be included in a Purchase Of House Agreement?

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

2. Background: Context of the transaction including property identification and purpose of agreement

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

4. Purchase Price and Payment Terms: Detailed breakdown of purchase price, deposit requirements, and payment schedule

5. Property Description: Legal description of the property, including lot number, plan, and municipal address

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

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

8. Conditions Precedent: Conditions that must be satisfied before closing, including financing and inspection conditions

9. Title and Ownership: Provisions regarding clear title transfer and resolution of any title issues

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

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

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 legal provisions including governing law, entire agreement, and amendments

What sections are optional to include in a Purchase Of House Agreement?

1. Tenant Rights and Obligations: Required when property is currently tenanted, addressing existing lease agreements and tenant rights

2. Mortgage Assumption: Include when buyer is assuming seller's existing mortgage

3. Property Management Transition: Needed for properties with ongoing management services or contracts

4. Home Warranty: Include for new construction or recently built homes with active warranty coverage

5. Chattels and Fixtures: Detailed list of items included/excluded in sale when specific items need to be addressed

6. Environmental Matters: Required when there are known environmental issues or concerns

7. Construction Completion: Include for new construction or properties under renovation

8. Condominium Provisions: Required for condominium properties, addressing specific condo requirements and regulations

What schedules should be included in a Purchase Of House Agreement?

1. Schedule A - Legal Property Description: Detailed legal description of the property from land registry

2. Schedule B - Included Chattels and Fixtures: Itemized list of all movable items included in the sale

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

4. Schedule D - Existing Encumbrances: List of current liens, easements, or other encumbrances on the property

5. Schedule E - Property Condition Disclosure: Seller's disclosure of known property conditions and defects

6. Schedule F - Title Exceptions: Specific exceptions to title warranty

7. Appendix 1 - Property Inspection Report: Results of professional property inspection

8. Appendix 2 - Property Survey: Current survey showing property boundaries and structures

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
Relevant Industries

Real Estate

Legal Services

Banking & Finance

Insurance

Construction

Property Development

Property Management

Professional Services

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Transactions

Document Processing

Risk Management

Client Services

Relevant Roles

Real Estate Agent

Real Estate Broker

Property Lawyer

Conveyancing Lawyer

Mortgage Specialist

Real Estate Partner

Property Manager

Legal Assistant

Paralegal

Title Examiner

Closing Coordinator

Real Estate Transaction Manager

Compliance Officer

Legal Document Specialist

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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