OREA form 100 Agreement of Purchase and Sale used by real estate agents is a legal document used in the province of Ontario, Canada when buying or selling a residential property. It outlines the terms and conditions of the sale and serves as a binding contract between the buyer and the seller. You can view a copy of the agreement here.
Here’s a breakdown of the key points in the form in non-legal format:
- Parties involved: This section simply identifies who the buyer and seller are, as well as their contact information.
- Property details: This section describes the property being sold, including its address and legal description. It also lists any items that are included in the sale, such as appliances or fixtures.
- Purchase price: This section specifies how much the buyer has agreed to pay for the property, as well as any deposits that have been paid or are due. It also outlines the timeline for paying the balance of the purchase price.
- Closing date: This section specifies the date on which the sale will be completed, and ownership of the property will be transferred from the seller to the buyer. It also outlines any conditions that must be met before the sale can close.
- Title and taxes: This section specifies the current state of the property’s title, and whether there are any outstanding taxes or liens that must be paid before the sale can close.
- Representations and warranties: This section outlines any promises or guarantees made by the seller about the property, such as whether there are any defects or issues that the seller is aware of.
- Conditions of sale: This section outlines any conditions that must be met before the sale can close, such as the buyer obtaining financing or a home inspection being completed.
- Brokerage representation: This section only applies if a real estate agent is involved in the transaction, and outlines their role and any commissions or fees that will be paid.
- Other terms and conditions: This section covers any additional terms or conditions that the buyer and seller have agreed to, such as who will be responsible for paying closing costs.
- Amendments: This section specifies that any changes to the agreement must be in writing and signed by both the buyer and the seller.
- Entire agreement: This section states that the agreement contains the entire understanding between the buyer and the seller, and that there are no other promises, conditions, or warranties outside of what is written in the agreement.
- Governing law: This section specifies that the agreement is governed by the laws of Ontario, Canada.
- Time of essence: This section states that time is of the essence in the agreement, which means that any deadlines or timelines outlined in the agreement must be strictly adhered to.
- Assignability: This section specifies whether or not the buyer can assign their rights under the agreement to someone else.
- Notices: This section outlines how notices and communications between the buyer and seller will be made, such as by mail or email.
- Waiver: This section specifies that any failure by either party to enforce their rights under the agreement does not waive their ability to enforce those rights in the future.
- Counterparts: This section allows the agreement to be signed in multiple counterparts, which means that each party can sign a separate copy of the agreement.
- Electronic signatures: This section specifies that electronic signatures are acceptable and legally binding for the purposes of the agreement.
- Signatures: This is where both the buyer and the seller sign the document to indicate their agreement to the terms and conditions outlined in the agreement.
- Acknowledgement: This section acknowledges that the buyer and seller have read and understood the terms of the agreement, and that they have been advised to seek independent legal advice before signing.
Overall, the OREA form 100 Agreement of Purchase and Sale is a comprehensive document that outlines the terms and conditions of a residential property sale in Ontario. It is important for both the buyer and seller to carefully review and understand the agreement before signing, and to seek legal advice if necessary.
