Ontario Agreement of Purchase and Sale: A Guide for Homebuyers

If you`re in the market for a new home in Ontario, Canada, one of the first documents you`ll encounter is the Agreement of Purchase and Sale. This legal contract outlines the terms and conditions of the purchase and sale of a property, protecting both the buyer and the seller.

In this article, we`ll take a closer look at the Ontario Agreement of Purchase and Sale (APS) and what homebuyers need to know before signing on the dotted line.

What is an Ontario Agreement of Purchase and Sale?

An APS is a binding legal contract between a buyer and seller of a property. It outlines the details of the transaction, including the purchase price, deposit amount, closing date, and other important terms and conditions.

The APS is typically prepared by the seller`s agent or lawyer, but it`s important to remember that it`s a negotiated document. This means that everything in the agreement is up for negotiation between the buyer and the seller before it`s signed.

What should homebuyers look for in an APS?

As a homebuyer, you should review the APS carefully and ensure that it includes everything you and the seller have agreed upon. Here are a few items to pay particular attention to:

1. Purchase price

The purchase price is the amount of money that the buyer will pay for the property. It`s important to ensure that the purchase price in the APS is the same as what you and the seller agreed upon.

2. Deposit amount

The deposit amount is the money that the buyer will put down to secure the purchase of the property. It`s important to understand how much the deposit is and when it`s due.

3. Closing date

The closing date is the date when the buyer will take possession of the property and the seller will receive the purchase price. It`s important to ensure that the closing date in the APS is realistic and that you`ll be able to move in on that date.

4. Conditions

Conditions are items that need to be satisfied before the sale can close. Common conditions include financing, home inspection, and the sale of an existing property. It`s important to ensure that any conditions in the APS are ones you`re able to satisfy.

5. Inclusions and exclusions

Inclusions are items that are included in the sale of the property, such as appliances or fixtures. Exclusions are items that the seller is taking with them. It`s important to ensure that the APS includes the correct inclusions and exclusions.

What happens after the APS is signed?

Once the APS is signed by both the buyer and the seller, it becomes a binding legal contract. The deposit is usually held in trust by the seller`s brokerage or lawyer until the closing date.

Between signing the APS and closing the sale, the buyer will need to arrange financing, complete a home inspection, and satisfy any other conditions in the APS.

On the closing date, the buyer will pay the remaining purchase price and take possession of the property. The seller will receive the purchase price and vacate the property.

Conclusion

An Ontario Agreement of Purchase and Sale is an important legal document that protects both the buyer and the seller in a real estate transaction. If you`re a homebuyer in Ontario, it`s important to review the APS carefully and understand all of the terms and conditions before signing. With the right preparation and attention to detail, the APS can help you purchase your dream home with confidence.