The Pre Sale Agreement serves as a fundamental document in Canadian real estate development, used when selling properties that are yet to be constructed or are still under construction. This agreement is particularly crucial in major urban markets where pre-construction sales are common practice for both residential and commercial developments. It must comply with provincial legislation such as the Real Estate Development Marketing Act (REDMA) and various consumer protection laws. The document typically includes detailed construction specifications, completion timelines, deposit protection measures, and warranty provisions. It protects both the developer's interests in securing advance sales and the buyer's interests in their future property, while ensuring compliance with local real estate regulations and construction standards. The agreement becomes especially relevant in hot real estate markets where pre-sale properties are in high demand and require careful legal structuring to manage risks and expectations.
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1. Parties: Identification of the vendor/developer and purchaser with full legal names and addresses
2. Background: Context of the development project and purpose of the agreement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the property including unit number, floor plan, and approximate square footage
5. Purchase Price: Total purchase price, deposit structure, and payment schedule
6. Deposit Protection: Details of how the deposit will be held in trust and protected
7. Construction Specifications: Overview of construction standards, materials, and finishes
8. Completion and Closing: Estimated completion date, closing procedures, and occupancy conditions
9. Adjustments and Closing Costs: Details of closing cost allocations and adjustments
10. Representations and Warranties: Standard warranties and representations from both parties
11. Default and Remedies: Consequences of default by either party and available remedies
12. Assignment: Terms and conditions for assignment of the purchase agreement
13. Notice: Methods and requirements for formal communications between parties
14. Governing Law: Specification of applicable jurisdiction and governing law
15. General Provisions: Standard boilerplate clauses including severability and entire agreement
1. GST/HST Elections: Required if the property is subject to GST/HST and specific tax elections are being made
2. Rental Pool Agreement: Include if the development offers a rental management program
3. Foreign Buyer Provisions: Required if the purchaser is a non-resident of Canada
4. Strata/Condominium Provisions: Include for strata/condominium properties with specific bylaws or requirements
5. Environmental Provisions: Include if there are specific environmental considerations or certifications
6. View Protection: Include if there are specific guarantees or disclaimers regarding views
7. Parking/Storage Assignment: Required if parking stalls or storage units are being assigned
8. Financing Conditions: Include if purchase is subject to buyer obtaining financing
1. Schedule A - Property Specifications: Detailed floor plans, unit layout, and specifications
2. Schedule B - Features and Finishes: Detailed list of included features, materials, and finishes
3. Schedule C - Purchase Price and Payment Schedule: Detailed breakdown of purchase price and payment milestones
4. Schedule D - Permitted Alterations: List of allowed modifications and upgrade options
5. Schedule E - Construction Schedule: Estimated timeline for construction milestones
6. Schedule F - Warranty Information: Details of warranty coverage and procedures
7. Schedule G - Disclosure Statement: Required disclosures under REDMA
8. Schedule H - Site Plan: Overall development plan showing unit location and common areas
9. Appendix 1 - Form of Assignment: Standard form for assignment if permitted
10. Appendix 2 - Move-in Procedures: Details of occupancy and move-in requirements
Relevant legal definitions
Clauses
Relevant Industries
Real Estate Development
Residential Construction
Commercial Construction
Property Management
Real Estate Sales
Legal Services
Construction Services
Property Investment
Urban Development
Financial Services
Relevant Teams
Legal
Real Estate Development
Sales
Marketing
Construction Management
Compliance
Risk Management
Property Management
Contract Administration
Customer Relations
Relevant Roles
Real Estate Developer
Property Development Manager
Real Estate Lawyer
Sales Director
Construction Manager
Project Manager
Legal Counsel
Real Estate Agent
Property Sales Manager
Compliance Officer
Risk Manager
Development Director
Contract Administrator
Real Estate Broker
Marketing Director
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