The For Sale By Owner Real Estate Purchase Agreement is specifically designed for Canadian property transactions where owners choose to sell their property directly to buyers without real estate agent representation. This approach has become increasingly popular as sellers seek to reduce transaction costs while maintaining legal compliance. The document incorporates all necessary elements required by Canadian federal and provincial property laws, including property description, purchase price, payment terms, conditions, warranties, and closing requirements. It serves as a comprehensive contract that protects both parties' interests while ensuring the transaction meets all legal requirements for property transfer in Canada. This agreement is particularly useful for straightforward property sales where the parties are comfortable handling the transaction directly, with appropriate legal counsel as needed.
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1. Parties: Identifies and provides full legal names and addresses of the seller(s) and buyer(s)
2. Background: Establishes the context of the agreement, including the parties' intention to enter into a real estate transaction
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, legal lot description, and property identification number
5. Purchase Price: States the total purchase price and currency, breaking down the deposit, adjustments, and balance due
6. Payment Terms: Specifies how and when payments will be made, including deposit, financing conditions, and closing payment
7. Closing Date: Specifies the date when the transaction will be completed and ownership will transfer
8. Title and Ownership: Confirms the seller's right to sell and promises to transfer clear title to the buyer
9. Seller's Representations: Seller's warranties about the property's condition, legal status, and any known issues
10. Property Inspection: Terms regarding the buyer's right to inspect the property and the process for addressing any issues found
11. Inclusions and Exclusions: Lists items included in or excluded from the sale
12. Closing Conditions: Conditions that must be met before the sale can close
13. Risk and Insurance: Addresses responsibility for the property until closing and insurance requirements
14. Default and Remedies: Outlines what constitutes default and the remedies available to each party
15. Notices: How formal communications between parties should be made and delivered
16. Governing Law: Specifies that the agreement is governed by Canadian law and the applicable province
17. Execution: Signature block and execution requirements for all parties
1. Financing Conditions: Used when the buyer needs to secure mortgage financing to complete the purchase
2. Tenant Rights: Required when the property is currently tenanted, addressing existing lease agreements
3. Property Management: Needed for properties with ongoing management requirements or shared facilities
4. Environmental Matters: Important for properties with potential environmental concerns or previous industrial use
5. Home Warranty: Applicable for newer properties with existing builder warranties
6. Condominium/Strata Provisions: Required for condominium or strata properties, addressing specific governance requirements
7. Farm/Agricultural Provisions: Needed for agricultural properties with specific land use considerations
8. Heritage Property Provisions: Required for properties with heritage designation or restrictions
9. Mineral Rights: Important when mineral rights are being retained or transferred separately
10. Water Rights: Necessary for properties with water access or riparian rights
1. Schedule A - Property Details: Detailed property description, including lot size, boundaries, and improvements
2. Schedule B - Permitted Encumbrances: List of accepted liens, easements, or encumbrances that will remain on title
3. Schedule C - Included Chattels: Detailed list of movable items included in the sale
4. Schedule D - Excluded Items: Specific items that are excluded from the sale
5. Schedule E - Property Disclosure Statement: Seller's declarations about the property's condition and known issues
6. Schedule F - Title Search Results: Current title search showing existing registrations and encumbrances
7. Schedule G - Property Survey: Current survey or real property report showing property boundaries and structures
8. Schedule H - Environmental Reports: Any environmental assessments or reports relevant to the property
9. Schedule I - Inspection Reports: Results of any property inspections or condition assessments
10. Appendix 1 - Required Repairs: List of agreed repairs to be completed before closing
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