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Installment Sales Contract (Real Estate) Template for Canada

This Canadian legal document establishes a contractual arrangement for the sale of real estate property through installment payments, rather than a traditional mortgage structure. It complies with both federal and provincial requirements for real estate transactions in Canada, including necessary provisions for security interests, title transfer conditions, and consumer protection measures. The contract details the payment schedule, property maintenance responsibilities, default remedies, and the conditions for eventual transfer of title, while ensuring compliance with provincial real estate regulations and the federal Interest Act.

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What is a Installment Sales Contract (Real Estate)?

The Installment Sales Contract (Real Estate) is utilized in Canadian real estate transactions where traditional mortgage financing is not the preferred or available option. This agreement structure is particularly relevant for seller-financed transactions, allowing purchasers to buy property through scheduled installment payments while the seller retains title until full payment is received. The document must comply with provincial real estate laws, federal interest rate regulations, and local property registration requirements. It includes comprehensive terms covering payment schedules, property maintenance, insurance requirements, default remedies, and eventual title transfer conditions. This type of contract is common in private sales, rural properties, and situations where buyers may not qualify for traditional mortgage financing. The agreement must be carefully structured to protect both parties' interests while ensuring compliance with applicable Canadian federal and provincial legislation.

What sections should be included in a Installment Sales Contract (Real Estate)?

1. Parties: Identification of the seller and purchaser with complete legal names and addresses

2. Background: Context of the transaction and acknowledgment of seller's ownership and buyer's desire to purchase

3. Definitions: Key terms used throughout the agreement including Property, Purchase Price, Installment Payments, etc.

4. Property Description: Detailed legal description of the real estate being sold

5. Purchase Price and Payment Terms: Total purchase price, down payment, installment amount, payment frequency, and interest rate

6. Title and Possession: Terms regarding when title transfers, interim possession rights, and registration of security interests

7. Seller's Representations and Warranties: Statements about property ownership, condition, and authority to sell

8. Purchaser's Representations and Warranties: Statements about financial capacity and intended use of property

9. Property Insurance and Maintenance: Requirements for insurance coverage and property maintenance during the installment period

10. Property Taxes and Expenses: Allocation of responsibility for property taxes, utilities, and other expenses

11. Default and Remedies: Consequences of payment default or other breaches, including acceleration and forfeiture provisions

12. Registration and Security: Requirements for registering the agreement and seller's security interest

13. General Terms: Standard contract provisions including notices, amendments, governing law, etc.

What sections are optional to include in a Installment Sales Contract (Real Estate)?

1. Environmental Matters: Required when property has known environmental issues or industrial/commercial use history

2. Property Management: Used when property is income-producing or requires specific management during installment period

3. Early Payment Provisions: Details of any early payment options or penalties, if applicable

4. Co-signer Provisions: Required when a guarantor or co-signer is involved in the transaction

5. Rent-to-Own Provisions: Used when contract includes rent-to-own option or interim rental arrangement

6. Construction/Renovation Terms: Required when property requires or allows for specific improvements during installment period

7. Foreign Buyer Compliance: Required when purchaser is not a Canadian citizen or permanent resident

What schedules should be included in a Installment Sales Contract (Real Estate)?

1. Schedule A - Legal Description: Detailed legal description of the property including lot numbers, plan numbers, and boundaries

2. Schedule B - Payment Schedule: Detailed amortization schedule showing all installment payments, interest portions, and balance reduction

3. Schedule C - Permitted Encumbrances: List of allowed liens, easements, or other encumbrances that will remain on title

4. Schedule D - Property Condition Report: Detailed description of property condition at time of agreement

5. Schedule E - Insurance Requirements: Specific insurance coverage requirements and minimum coverage amounts

6. Appendix 1 - Property Photos: Photographic documentation of property condition at time of agreement

7. Appendix 2 - Required Repairs: List of any repairs or improvements required as condition of sale

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Canada

Cost

Free to use

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