Date this document was created
Exactly what is on Geowarehouse. If the name on their ID (and, therefore, FITRAC) is different (may have gotten married while living in this home) best to include both maiden and married name (can use brackets).
What side of the road the house is on.
Make sure you have specified the measurement form (ie: feet, meters…etc).
Can include both the PIN and APN numbers to be extra thorough.
READ THE LEGAL DESCRIPTION! S/T = subject to something, T/W = together with. (You can buy legal documents in Geowarehouse and can also search any portion in Geowarehouse to get a better idea as to what this description is referring to (ie: search NS224515 and make sure the area is correct).
Sometimes legal descriptions are too long to fit on to this line.If that is the case, simply add the entire legal description to Schedule A and make a note on this line like “Please see Schedule A for Legal Description.
ALWAYS TRIPLE CHECK THE PRICE! In counter offer situations, sometimes NexOne does not save where you have made changed on e-signature, so always make sure that the price is correct before sending for signatures.
The buyer has to have the funds liquid so that they can pay their down payment ASAP. “Unpon Acceptance” is usually the default option. If the drop off time is too tight, falls over a holiday weekend…etc, you can create an amendment form to extend this time period.
10. (I did not number this one properly and we talk about it more in # 30!) BUT THIS IS A VERY IMPORTANT CLAUSE about Time Limits!
11. Name ALL schedules in detail. If it is not officially on or attached to the Agreement of Purchase and Sale, it does not count.
12. This means that once they have signed this document, they are unable to revoke the offer.
13. Make sure that the time is correct and if accepting an offer, MUST be within that time frame for it to be valid. In the current market (a Seller’s Market), make sure that there is enough time to show, make, and receive best offers. (Register a showing regardless when you can get in because if the seller receives an offer, they MUST inform you of offers or changes in offer dates.
14. This is the date that the sale CLOSES! They are promising that the buyer will get the keys and the home will be vacant.
a) This highlighted portion means that if an agent is representing the buyer AND the seller at the same time, they cannot accept notice, it has to go directly to the seller or their lawyer (They cannot accept upon the buyer or sellers behalf).
b) #3 is very important as it designates where the accepted copy is sent to. It is also important that the full business address of both the agents for the buyer and seller are listed in this section on page 5. This ensures that if the paperwork is being hand delivered, that it is also a valid location. THIS AND ATTACHED FORMS MUST BE SENT TO THIS LOCATION OR EMAIL TO BE VALID!
16. Be very specific in the description of Chattels (an item of property other than real estate that is included with the home). Think of it as if you were picking up the house and shaking it upside-down, whatever falls out is a Chattel or Appliance. (if you just list “stove”, the seller could switch out the stove that the buyer saw in the showing for a sub-par one because it is not specified).
17. Same as #16.
18. For rental items, this portion means that the Buyer is willing to assume the contract, lease, or rental of this product. (Important to collect all contracts from the Seller).
19. HST is either “included in” or “in addition to” the price listed on page 1. For majority of residential properties, you do not pay HST. Some situations where you might pay HST are; if it is a commercial property, “substantially renovated” (there is no specific measurement of this, FYI), or a new construction.
20. Allows for a title search of the property (looking for any issues) by Lawyer.
-any reasons why they should not close on this property.
-want this date to be far enough away from closing to give your Lawyer ample time to source the documents and examine them.
-also want the date to be far enough in advance so that if any issues are discovered, there is enough time to either come to an agreement or the Seller to fix them.
- your Lawyer will also check the legal description to ensure that there are no missed issues. They may also have to order some documents from Geowarehouse.
- they will also be able to see if there are any outstanding permits or work orders on the property.
21. This description is important because it states what the Seller is selling, not what the Buyer wants to do with the property. If they want to change it in to a Duplex, the Seller is not promising that that is possible.
22. The “Title” section is protection for the seller and lists what can and cannot be objected to.
23. This section refers to the Legal Protocol of closing a sale.
24. More Legal Protocol. If you are requesting any specific documents or documentation, make sure you list it in one of the Schedules.
25. This section verifies that the Buyer has had the chance to inspect the property and it is at their discretion if they want to do so or not.
26. Who is insuring the property until what date. (a reason this is needed is because, say there is a fire between signing this contract and the closing date, the Buyer would not be responsible because it is still being insured by the Seller).
27. Residency of Seller, specifically. If the Seller spends 183+ days/year (not sure if this is consecutive or can be apart) out of Canada, they are not a legal resident. If they are not a legal resident, they are subject to an additional tax that is quit hefty.
28. Usually related to property tax or fuel costs.
29. This is usually relating to property tax adjustments. Meaning that the property tax could rise after this is signed and it is not the Sellers issue. (usually 10% of sale price, $500,000 home = $5,000 in taxes appx.)
30. All changes must be attached to the Agreement of Purchase and Sale and are TIME SENSITIVE! If something is not signed or fulfilled in the allotted time, IT IS NOT LEGALLY BINDING!
31. If property is owned by one person but while living there legally married their partner. You must have signed consent under Family Act Law
32. This is a type of insulation called ureaformaldehyde . If this insulation is found in a home, the price will drop drastically and some companies even refuse to insure homes that have this insulation.
33. A credit check may be done by the other party on the Buyer.
34. IF IT IS NOT IN WRITING AND NOT INCLUDED IN THE AGREEMENT OF PURCHASE AND SALE IT IS NOT ENFORCEABLE! All forms need to be submitted within the time frame stipulated in the agreement as well.
-If it is a verbal, or even email agreement, it is not enforceable. It has to be in and/or attached to the Agreement and signed.
35. Everything is time and dated according to the local time of the listing. If you have a seller on vacation or a buyer out of town in a different time zone, make sure that they understand that the time and date is that of the property, not where they are.
36. If someone purchases or sells a home and dies between the signing date and the date of taking possession/moving, the estate is still responsible. This may add significant time to the transaction.
37. CONFIRMATION OF ACCEPTANCE is where the buyer or seller signs once all negotiation is done and this is the final draft of the Agreement. The date and time is when this is signed.
This section shows the final signing from both the seller and the buyer along with full contact information.
COMMISSION TRUST AGREEMENT is signed by both the selling and buying agent.