The Real Estate Contract For Sale By Owner (FSBO) is a crucial legal document used in Canadian property transactions where owners choose to sell their property directly to buyers without real estate agent representation. This document type is particularly relevant in today's market where many property owners seek to manage their own sales process while ensuring legal compliance. It encompasses all essential elements required by Canadian federal and provincial laws, including property description, purchase terms, conditions of sale, and necessary disclosures. The contract is designed to protect both parties' interests while facilitating a direct sale transaction, incorporating specific provisions for property transfer, payment terms, and closing conditions. It's particularly important in Canadian jurisdictions where specific provincial real estate regulations must be addressed, and it includes all mandatory disclosures and warranties required by local property laws.
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1. Parties: Identifies and provides full legal names and addresses of the seller and purchaser
2. Background: Establishes that the seller owns the property and wishes to sell, and the buyer wishes to purchase under the terms set out
3. Definitions: Defines key terms used throughout the agreement including Property, Closing Date, Purchase Price, Deposit, etc.
4. Property Description: Detailed legal description of the property including municipal address, legal lot description, and property identification number
5. Purchase Price and Payment: Specifies the total purchase price, deposit amount, payment schedule, and method of payment
6. Deposit Terms: Details regarding the amount, payment timing, and handling of the deposit, including trust account details
7. Closing Date and Possession: Specifies the closing date, time of possession, and any conditions related to transfer of possession
8. Title and Ownership: Warranties regarding clear title, existing encumbrances, and process for title transfer
9. Seller's Representations and Warranties: Seller's declarations regarding property condition, outstanding liens, zoning compliance, etc.
10. Buyer's Representations and Warranties: Buyer's declarations regarding financial capability and understanding of property condition
11. Property Condition and Inspection: Details about property condition, inspection rights, and process for addressing deficiencies
12. Included and Excluded Items: Lists of fixtures and chattels included or excluded from the sale
13. Closing Adjustments: Process for adjusting taxes, utilities, rent, and other expenses as of closing date
14. Default and Remedies: Consequences and available remedies if either party defaults on their obligations
15. Notices: How and where formal notices between parties should be delivered
16. General Provisions: Standard clauses including entire agreement, governing law, amendment process, and severability
1. Financing Condition: To be included when buyer requires mortgage financing to complete the purchase
2. Sale of Buyer's Property Condition: Used when purchase is conditional on buyer selling their existing property
3. Rental Property Provisions: Required when property has existing tenants with terms for handling leases and deposits
4. Construction Warranties: For new or recently constructed properties, detailing remaining warranties
5. Condominium Provisions: Specific terms for condominium properties including status certificate review
6. Home Warranty Program: Details of any applicable home warranty coverage
7. Environmental Matters: Specific provisions regarding known environmental issues or requirements
8. Swimming Pool/Hot Tub Compliance: Special provisions for properties with pools or hot tubs regarding safety and compliance
9. Heritage Property Requirements: Special conditions for heritage-designated properties
10. Well and Septic Provisions: For rural properties with private water and sewage systems
1. Schedule A - Property Legal Description: Detailed legal description of the property including surveys and boundaries
2. Schedule B - Included Fixtures and Chattels: Comprehensive list of items included in the sale
3. Schedule C - Excluded Items: List of items specifically excluded from the sale
4. Schedule D - Existing Encumbrances: List of registered encumbrances that will continue after closing
5. Schedule E - Property Condition Disclosure: Seller's disclosure of known property conditions and defects
6. Schedule F - Environmental Disclosure: Disclosure of known environmental issues or hazards
7. Schedule G - Renovation History: List of major renovations and improvements with dates and permits
8. Schedule H - Current Leases: Copies of existing lease agreements if property is tenanted
9. Appendix 1 - Property Survey: Current survey of the property if available
10. Appendix 2 - Floor Plans: Detailed floor plans of the property
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