The For Sale By Owner Purchase Contract is designed for use in Canadian real estate transactions where property owners choose to sell their property directly to buyers without real estate agent representation. This approach, while potentially cost-saving, requires a robust legal framework to ensure all parties' interests are protected. The document is typically used when sellers are comfortable managing their own property sale and buyers are willing to engage directly with property owners. It must comply with both federal and provincial legislation governing real estate transactions in Canada, including property law, consumer protection regulations, and title transfer requirements. The contract includes comprehensive sections covering property description, purchase price, conditions, warranties, closing procedures, and other essential terms, while allowing for customization based on specific provincial requirements and unique transaction details.
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1. Parties: Identifies and provides full legal names and addresses of the buyer(s) and seller(s)
2. Background: Brief context of the transaction and acknowledgment that the seller owns the property and wishes to sell to the buyer
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Property Description: Detailed legal description of the property including address, lot number, and property identification number
5. Purchase Price: States the total purchase price and currency, broken down into deposit and balance amounts
6. Payment Terms: Specifies how and when payments will be made, including deposit, financing, and final payment details
7. Closing Date: Specifies the date when the transaction will be completed and ownership transferred
8. Property Inspection: Details the buyer's right to inspect the property and the process for addressing any issues found
9. Seller's Representations and Warranties: Seller's declarations about the property's condition, title, and any known issues
10. Buyer's Representations and Warranties: Buyer's declarations regarding their ability to complete the purchase
11. Conditions Precedent: Conditions that must be met before the agreement becomes binding
12. Title and Ownership: Details about the transfer of clear title and ownership
13. Closing Procedures: Step-by-step process for completing the transaction
14. Risk and Insurance: Specifies when risk transfers and insurance requirements
15. Default and Remedies: Consequences and remedies if either party fails to fulfill their obligations
16. Notices: How formal communications between parties should be made
17. Governing Law: Specifies that Canadian law governs the agreement and which province's laws apply
18. Execution: Signature blocks and witnessing requirements
1. Chattels and Fixtures: Lists any moveable items included or excluded from the sale
2. Tenant Rights: Required if the property is currently tenanted, describing existing lease agreements and obligations
3. Home Warranty: Details of any home warranty being transferred or included
4. Environmental Matters: Required if there are environmental concerns or certifications relevant to the property
5. Spouse's Consent: Required if the property is a matrimonial home under provincial law
6. Property Management: Required for properties with ongoing management requirements or shared facilities
7. GST/HST Declaration: Required for new properties or commercial properties where GST/HST applies
8. First Nations Lands: Required if the property is on First Nations land with special requirements
9. Survey Matters: Optional section detailing any survey requirements or existing survey information
1. Schedule A - Property Details: Detailed description of the property including lot size, boundaries, and improvements
2. Schedule B - Included Chattels: Itemized list of all moveable items included in the sale
3. Schedule C - Excluded Chattels: Itemized list of all moveable items explicitly excluded from the sale
4. Schedule D - Property Disclosure Statement: Seller's detailed disclosure of property condition and known issues
5. Schedule E - Title Exceptions: List of permitted encumbrances, easements, and restrictions on title
6. Schedule F - Special Conditions: Any additional terms, conditions, or requirements specific to this transaction
7. Appendix 1 - Property Photographs: Dated photographs documenting the property's condition at time of agreement
8. Appendix 2 - Site Plan: Property survey or site plan showing boundaries and major features
9. Appendix 3 - Inspection Reports: Any existing inspection reports or property condition assessments
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Legal Services
Financial Services
Insurance
Construction
Property Management
Urban Planning
Banking
Mortgage Lending
Relevant Teams
Legal
Real Estate
Property Management
Mortgage Services
Risk Assessment
Compliance
Document Processing
Title Services
Property Assessment
Customer Relations
Relevant Roles
Property Owner
Real Estate Lawyer
Property Lawyer
Title Examiner
Mortgage Broker
Bank Manager
Property Appraiser
Home Inspector
Insurance Underwriter
Legal Counsel
Paralegal
Notary Public
Municipal Planning Officer
Property Tax Assessor
Compliance Officer
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