Real Estate Price Change Addendum Template for Canada

When you need to change the purchase price in an existing real estate agreement in Canada, a Real Estate Price Change Addendum provides the legal framework to modify your Agreement of Purchase and Sale. This document ensures that price adjustments are properly documented and legally binding while maintaining all other terms of your original contract.

When do you need this document?

You'll need a Real Estate Price Change Addendum when circumstances require adjusting the agreed purchase price after signing your original Agreement of Purchase and Sale. Common situations include when a professional appraisal comes in significantly lower than your agreed price, requiring a reduction to satisfy mortgage lender requirements. You might also need this addendum if a home inspection reveals major issues that warrant a price reduction, or if market conditions have shifted dramatically between contract signing and closing. Additionally, if you've agreed to credit repairs or improvements into the purchase price, or if there are changes to included fixtures or chattels, this addendum formalizes the new financial terms.

Key legal considerations

Your Price Change Addendum must clearly identify all parties from the original agreement and reference the specific Agreement of Purchase and Sale being modified, including its execution date and property description. The document should state both the original and new purchase prices explicitly, along with the effective date of the change. All parties who signed the original agreement must sign the addendum to ensure legal validity. Consider how price changes affect other contract terms, such as deposit amounts, which may need proportional adjustments. Include provisions addressing how the price change impacts closing costs, property taxes, and any conditional clauses tied to the purchase price. Ensure the addendum states that all other terms and conditions of the original agreement remain in full force and effect.

Legal requirements in Canada

Under Canadian law, your Real Estate Price Change Addendum must comply with provincial Property Law Acts and the Real Estate and Business Brokers Act (REBBA) where applicable. The Statute of Frauds requires that modifications to real estate contracts be in writing and properly executed by all parties. Provincial regulations may mandate specific disclosure requirements, particularly if the price change results from inspection findings or appraisal results. Your addendum must be prepared in compliance with provincial real estate forms standards and may require witnessing or notarization depending on your jurisdiction. Electronic signatures may be acceptable under provincial Electronic Commerce Acts, but verify local requirements. Real estate professionals involved must ensure the addendum meets their regulatory obligations for documenting material changes to purchase agreements.