The Real Estate Contract is a fundamental legal document used in Canadian property transactions to formalize the agreement between a buyer and seller for the transfer of real property. This document is essential for any real estate transaction in Canada, whether residential, commercial, or industrial. It must comply with federal legislation such as the Interest Act and provincial property laws, while also addressing specific regional requirements for property transfers. The contract typically includes comprehensive details about the property, purchase price, conditions of sale, warranties, and closing requirements. It serves multiple purposes: protecting the interests of all parties involved, ensuring legal compliance, documenting the agreed-upon terms, and providing a framework for completing the transaction. The document is particularly important as it forms the basis for the property's title transfer and is required by financial institutions, insurance companies, and land registry offices to process the transaction.
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1. Parties: Identification of the vendor(s) and purchaser(s) with full legal names and addresses
2. Background: Context of the transaction and acknowledgment of the parties' intention to enter into the agreement
3. Definitions: Key terms used throughout the agreement defined for clarity and consistency
4. Property Description: Detailed legal description of the property including municipal address and legal/survey details
5. Purchase Price: Statement of the purchase price, deposit requirements, and payment terms
6. Deposit: Details of deposit amount, payment schedule, and handling of funds
7. Closing Date: Specified date and time for completion of the transaction
8. Title: Warranties regarding clear title and process for title search and insurance
9. Representations and Warranties: Standard declarations by both parties regarding the property and their capacity to enter the agreement
10. Conditions Precedent: Essential conditions that must be met before closing, including financing and inspection conditions
11. Closing Deliverables: List of documents and items to be delivered by each party at closing
12. Adjustments: Process for adjusting taxes, utilities, and other expenses as of closing date
13. Default and Remedies: Consequences and available remedies if either party defaults
14. Notices: How and where formal notices under the agreement must be delivered
15. General Provisions: Standard contract clauses including entire agreement, amendments, and governing law
1. Tenant Rights and Obligations: Required when the property is sold with existing tenants, outlining their rights and impact on the sale
2. Mortgage Assumption: Included when the purchaser is assuming an existing mortgage on the property
3. Property Management: Necessary for multi-unit properties with ongoing management requirements
4. Construction Warranties: Required for new construction properties, detailing builder warranties and obligations
5. Environmental Matters: Important when there are known environmental issues or concerns
6. GST/HST Provisions: Required for new construction or commercial properties where GST/HST applies
7. Foreign Buyer Compliance: Required when purchaser is not a Canadian resident, addressing compliance with foreign buyer regulations
8. Condominium Provisions: Required for condominium properties, addressing specific condominium requirements and documentation
1. Schedule A - Legal Description: Detailed legal description of the property from land registry
2. Schedule B - Permitted Encumbrances: List of accepted liens, easements, or encumbrances that will remain on title
3. Schedule C - Included Chattels: Itemized list of moveable items included in the sale
4. Schedule D - Excluded Fixtures: List of attached items that are specifically excluded from the sale
5. Schedule E - Property Condition Disclosure: Vendor's disclosure of known property conditions and defects
6. Schedule F - Rental Units Schedule: Details of existing tenancies including lease terms and rents
7. Appendix 1 - Property Survey: Recent survey of the property showing boundaries and structures
8. Appendix 2 - Floor Plans: Detailed plans showing layout of buildings on the property
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Construction
Banking and Finance
Legal Services
Property Management
Insurance
Urban Planning
Hospitality
Retail
Commercial Property
Residential Property
Agriculture (for farm properties)
Industrial
Relevant Teams
Legal
Real Estate
Finance
Risk Management
Compliance
Property Management
Facilities
Corporate Development
Investment
Operations
Administration
Document Management
Due Diligence
Acquisitions
Relevant Roles
Real Estate Agent
Real Estate Broker
Property Lawyer
Conveyancing Lawyer
Property Manager
Real Estate Developer
Mortgage Broker
Title Insurance Officer
Real Estate Paralegal
Property Appraiser
Chief Financial Officer
Real Estate Investment Manager
Facilities Manager
Corporate Counsel
Real Estate Portfolio Manager
Acquisition Manager
Development Manager
Risk Manager
Compliance Officer
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