A Comprehensive Resource for Buyers and Sellers
Welcome to the ultimate guide for comprehending real estate documentation in Ontario – this thread is a goldmine of information!
Let’s delve into the vital documents presented to a buyer:
Agreement of Purchase and Sale (Form 100 for residential properties or Form 101 for condos)
This document is an absolute game-changer. It outlines the exact offer and all of its associated terms presented to the seller. It’s essential to keep an eye out for the following key elements:
- Price (obviously)
- Legal description (it’s highly recommended to consult your realtor for a comprehensive ‘geowarehouse’ report to avoid any unwelcome surprises such as utility easements)
- Deposit (typically 5% of the price)
- Irrevocability (the timeframe during which your offer remains valid)
- Completion date (official closing date – avoid Fridays and statutory holidays)
- Chattels included (usually including items like kitchen appliances, washer/dryer, window coverings, light fixtures, etc. and may even include furniture depending on negotiations)
- Rental items (if items like furnaces or hot water tanks are rentals, the terms should be explicitly stated)
- Schedule A (This is where things get interesting – it includes additional terms, clauses, and conditions that go beyond the basics and standard form copy. Conditions such as financing, inspection, and home inspection are written here. Every realtor has their preferred version of this schedule, but it’s important to consider every aspect. Details such as how many times a buyer can visit and other critical items not mentioned in the agreement must be noted here.)
Home Buying an Selling FAQ
- What documents do I need to buy or sell a property in Ontario? You will need to complete an Agreement of Purchase and Sale, which is Form 100 for residential properties or Form 101 for condos. You may also need to complete other forms such as the Buyer Representation Agreement, the Seller Property Information Statement, and the Condominium Status Certificate.
- What should I look for in an Agreement of Purchase and Sale? Make sure to carefully review the price, legal description, deposit amount, irrevocability period, completion date, chattels included, rental items, and Schedule A. Schedule A is especially important as it includes additional terms and conditions beyond the standard form copy.
- Do I need to hire a real estate agent to buy or sell a property in Ontario? While it is not required by law, it is highly recommended to work with a licensed real estate agent. They can provide valuable guidance throughout the buying or selling process and help you navigate the complex legal and financial aspects of real estate transactions.
- What is a home inspection condition? A home inspection condition is a clause that can be included in the Schedule A of an Agreement of Purchase and Sale. It allows the buyer to hire a professional home inspector to examine the property and identify any issues that may need to be addressed before the sale is finalized.
- What is a financing condition? A financing condition is another clause that can be included in the Schedule A. It allows the buyer to secure financing for the purchase before the sale is finalized. If financing is not obtained within the specified timeframe, the sale may be terminated without penalty.
