When it comes to real estate transactions in Ontario, the agreement of purchase and sale is a crucial document. It outlines the terms and conditions of the sale, and serves as a binding contract between the buyer and seller. A long form agreement of purchase and sale is a more detailed version of the standard agreement, providing additional clarity and specificity for both parties.
Typically, a long form agreement of purchase and sale will include provisions for:
1. Purchase price: This section outlines the agreed-upon purchase price for the property, as well as any associated adjustments or deposits.
2. Closing date: The closing date is the date on which the sale will be finalized and the property will be transferred to the buyer. The agreement will specify the exact date and time for this event.
3. Possession date: The possession date is the date on which the buyer will take possession of the property. This may be different from the closing date, depending on the terms of the agreement.
4. Conditions: The long form agreement may include specific conditions that must be met in order for the sale to go through. This could include things like satisfactory inspection reports, mortgage financing, or the resolution of any legal disputes.
5. Representations and warranties: The agreement may include statements from the seller about the condition of the property, any known defects or issues, and any warranties that will be provided to the buyer.
6. Closing costs: There are a variety of closing costs associated with real estate transactions, including legal fees, land transfer taxes, and other expenses. The agreement will specify who is responsible for paying these costs and how they will be calculated.
7. Dispute resolution: In the event of a dispute between the buyer and seller, the long form agreement should include provisions for how the dispute will be resolved (e.g. through a mediator, arbitration, or the court system).
Overall, a long form agreement of purchase and sale provides additional clarity and specificity for both parties involved in a real estate transaction. It clarifies the terms of the sale and ensures that both the buyer and seller are on the same page. If you are buying or selling a property in Ontario, it is important to consult with a qualified real estate lawyer to ensure that your interests are protected throughout the process.