Real Estate Purchase Agreement
REAL ESTATE PURCHASE AGREEMENT
This Real Estate Purchase Agreement is between ____(Name(s)_____ of ____(address, city, state/prov.)____, hereinafter referred to as “buyer,” and _____(Name(s)_____, of ____(address, city, state/prov.)____, hereinafter referred to as “seller.”
In consideration of the mutual agreements and covenants contained in this Agreement, the parties agree as follows:
SECTION 1: THE PROPERTY
- The Property is the Land, Buildings, Unattached and Attached Goods. Buyer agrees to purchase the property located at municipal address: __(address, city, state/prov.)__. The Legal Description of the property is: __(enter legal description - i.e. Lot #, Block#, Plan#). The Property is sold subject to applicable restrictions, ordinances and easements of record.
- The Property includes the following unattached goods:
- __ (list unattached property – i.e. refrigerator) __
- __ (list unattached property – i.e. stove) __
- __ (list unattached property – i.e. washer & dryer) __
- __ (list unattached property – i.e. dishwasher) __
- __ (list unattached property – i.e. all window coverings)__
- __ (list unattached property – i.e. garden shed)__
- All Attached Goods (fixtures) included except for: __ (list attached property excluded)__
- The Property includes the following Unattached Goods: __ (list property included – i.e. mineral rights, oil and gas/etc)___
- Unless otherwise agreed in writing, title to The Property at the Closing Day will be subject to any reservations and exceptions stated on the Certificate of title; will be free and clear of all encumbrances, registrations and obligations except those implied by law, may be subject to non-financial registrations which do not adversely affect the Property’s value and which cannot be discharged upon request or by the payment of a reasonable sum of money; may be subject to homeowners association caveats, encumbrances and similar registrations; and will be subject to those items with the Buyer and agreed to assume in the Agreement.
SECTION 2: THE TRANSACTION
- Agreement: The Buyer and Seller agree to act cooperatively, reasonably, diligently and in good faith.
- Purchase Price: The Purchase Price for the Property is $___ (amount)___ payable in certified funds. Unless otherwise agreed in writing, in addition to the Purchase Price, the Buyer will pay any applicable ____(list type of tax applicable: i.e. Goods and Services Tax, State Tax/etc.)____ on the purchase price.
- Deposit: The Buyer agrees to pay the Seller a Deposit of $___ (amount)___, payable in certified funds, which will be applied against the Purchase Price at the closing on the property. If the sale does not close on the date specified in Section 2.4 due to Buyer’s default in accordance to the terms and conditions of this Agreement, and unless otherwise agreed to in writing by the Seller, Buyer will forfeit the deposit, and the deposit will become the Seller’s to keep.
- Closing Day: Unless otherwise agreed in writing, this Agreement will be completed, the Purchase Price will be fully paid and possession of the property will be available to the Buyer at ____(time)____ on ____(date)____, which is the Closing Day.
- Prorated Adjustments: Items which are normally adjusted for, such as real estate taxes, amortized local improvement levies, utilities, rents, security deposits, statutory interest on security deposits, mortgage interest and homeowner association fees will be assumed by the Buyer and will be prorated and adjusted as of the Closing Day. All adjustable items are the Seller’s responsibility for the entire Closing Day.
- No Commission: Buyer and Seller acknowledge that no Broker or Agent has been retained by either of them and that no commission or fee is or will be owed to any third party in connection with the sale and purchase of the Property.
- Closing Day – if not Business Day: Unless otherwise agreed in writing, if the Closing Day is not a Business Day, then conveyance matters and payment of the Purchase Price will be completed at 12:00 o’clock noon on the preceding Business Day. Possession will be available on and adjustments will be made as of the Closing Day. Business Day means when both the Land Titles Office and the Schedule “A” chartered banking are open for business.
- Closing Documents: The Seller and Seller’s lawyer will deliver normal closing documents to the Buyer upon reasonable conditions with the terms of this Agreement. The Buyer must have a reasonable period of time before the Closing Day to confirm registration of documents at the Land Titles Office and to obtain the advance proceeds for any New Financing.
- Late Payment: If the Seller agrees in writing to accept late payment of the Purchase Price, then the Buyer will pay interest to the Seller calculated daily from and including the Closing Day to, but excluding, the day the Seller is paid in full. Payment received after 12:00 o’clock noon on any day will be payment as of the next Business Day. Interest means the prime lending rate on Closing Day in the ____(State/Province)____ of ____(Name of State/Province)____ , plus 3%.
- Closing Documents - Late Delivery: If the Seller fails to deliver the closing documents according to the terms of this Agreement, then payment of the Purchase Price and Interest will be postponed until the Buyer has received the closing documents and has a reasonable period of time to deal with them.
- Discharges: The Seller’s lawyer may use the Purchase Price to pay out all the mortgages, registrations and other financial obligations that are the Seller’s obligation to discharge. Within a reasonable period of time after the Closing Day, the Seller’s lawyer will provide the Buyer with evidence of all discharge including, where required, a certified copy of the certificate of title.
- Seller’s Costs: The Seller will pay the costs to prepare the closing documents: to prepare, register and discharge the Sellers’ caveat based on this Agreement and to provide the documents described in Section 2.16.
- Buyer’s Costs: The Buyer will pay the costs to prepare, register and discharge any Buyer’s caveat based on this Agreement; and to register the transfer of land title.
- Tenancy: If the Property is rented and the Buyer is not assuming the tenancy, then the Seller is responsible for all costs related to ending the tenancy and to giving vacant possession to the Buyer.
- Condition of Property: When the Buyer obtains possession, the Property will be in substantially the same condition as it was in when the Buyer last inspected it.
- Municipal Compliance: Within a reasonable period of time after this Agreement is made, but at least three Business Days prior to Closing Day, the Seller will provide to the Buyer a Real Property Report and written evidence of municipal compliance regarding the matters described in Section 1.2.
SECTION 3: WARRANTEES / REPRESENTATIONS
- The Seller warrants to the Buyer that: The Seller has the legal right to sell the property and that the Attached Goods and the Unattached Goods are in normal working order.
- The Seller warrants to the Buyer that: the current use of the Land complies with the existing municipal land use by-law; the buildings and other improvements on the land are not placed partly or wholly upon any easement or utility right-of-way and are entirely on the land and do not encroach on neighboring lands; and , prior to Closing Day at the Sellers expense, the location of the buildings and other improvements on the land complies with all relevant municipal by-laws and regulations or relaxations granted by the appropriate municipality or that buildings and other improvements on the land are not “non-conforming” buildings in accordance with the Planning Act.
- All Warranties contained in the Agreement and, any attached Schedules will form part of, and will be true at the Closing Day, unless otherwise agreed in writing.
- The Seller and the Buyer each acknowledge that, except as otherwise described in this Agreement, there are no other warranties, representations or collateral agreements made by or with the other party about the property, any neighboring lands and this truncation, including any warrantee, representation or collateral agreement related to the size/measurements of the Land and buildings or the existence or non-existence of any environmental condition or problem.
Buyer’s Initials Seller’s Initials
SECTION 4: INSURANCE
- The risk of loss or damage to the Property will lie with the Seller until the Purchase Price is paid according to the terms of this Agreement. If loss or damage to the Property occurs before the Seller is paid the Purchase Price, then the insurance proceeds will be held in trust for the Buyer and the Seller according to their interest in the Property.
SECTION 5: HEIRS AND SUCCESSORS
- This Agreement will be binding upon the heirs, executors, administrators, personal representatives and assignees of the individual parties and the successors and assignees of corporate parties.
SECTION 6: REMEDIES / DISPUTES
- If the Seller or the Buyer fails or refuses to complete this Agreement according to its terms, then the other party may pursue all available remedies. The Seller’s remedies include keeping the Deposit and claiming additional damages.
- If the Seller must restore title to the Land, register a lien against the property or regain possession of the Property due to the Buyer’s default, then the Buyer will pay the Seller’s reasonable costs including solicitor and client legal fees. When delivering the closing documents, the Seller or the Seller’s lawyer may require the Buyer to provide reasonable security for the estimated costs.
- Disputes are to be mediated or arbitrated. The mediation will be conducted in accordance with the rules and procedures of the ____(Homebuyers Dispute Resolution System/National Association of Realtors…/etc.)____. If there is no agreement to mediation, the disputes must be submitted to arbitration under the Arbitration Act of ____(Name of State/Province)____. If the Buyer and the Seller cannot agree on an Arbitrator, then the Court may appoint one. The Arbitrator will have the authority to award costs including reasonable solicitor and client legal fees. Disputes mean all disagreements between the Seller and the Buyer arising from this Agreement.
SECTION 7: ADDITIONAL TERMS
- “Unless otherwise agreed in writing” means a written agreement by Seller or otherwise between the Seller of the Seller’s lawyer and the Buyer or the Buyer’s lawyer.
- All time periods, deadlines ad dates in this Agreement will be strictly followed and enforced.
- Portions of this Agreement may be enforced even if the Agreement has ended.
- The following terms are part of this Agreement.
__(Describe other terms – i.e. Seller will have carpets professionally cleaned at Seller’s expense prior to possession Day)____
__(Describe other terms – i.e. Seller will have a Safety Inspection on furnace completed at Seller ‘s expense prior to Closing )____
__(Describe other terms – i.e. Seller will replace the Dining Room window at Seller ‘s expense prior to Closing Day )____
- The following Schedules are attached to this Agreement and form part of it.
__(List Name of Schedule – i.e. Country Residential Acreage - Property Schedule)____
__(List Name of Schedule – i.e. Rental Agreement - Property Schedule___
__(List Name of Schedule – i.e. Rental Agreement - Property Schedule)__
__(List Name of Schedule – i.e. Seller Financing - Financing Schedule)__
__(List Name of Schedule – i.e. Assumption of Mortgage - Financing Schedule)
SECTION 8: CONDITIONS PRECEDENT
- The Buyer’s Conditions are:
__ (Describe condition – i.e. Subject to Buyer applying for and being approved for new financing as follows:
loan amount $__(amount)__
Buyer will pay for all costs associated with the new financing including the costs to prepare and register any new financing security.
The Condition Day is ___(date)____
__ (Describe condition – i.e. Subject to a completion and approval of a Home Inspection Report conducted by qualified person.
Inspection arranged by Buyer and at Buyer’s expense
The Condition Day is ___(date)____
- The Seller’s Conditions are:
__ (Describe condition)__
The Condition Day is ___(date)____
__ (Describe condition)__
The Condition Day is ___(date)____
- Unless others agreed in writing, the Buyer’s Conditions are for the sole benefit of the Buyer and the Seller’s Conditions are for the sole benefit of the Seller.
- The Buyer and the Seller may waive their conditions unilaterally by giving a notice to the other party (the Waiver) on or before 8:00 o’clock p.m. on the stated Closing Day.
- A Condition Day may be extended by written agreement.
- If the Agreement is ended in accordance with the terms of this Agreement, then the deposit will be returned to the Buyer as soon as reasonably possible.
SECTION 9: NOTICES
- For the purpose of giving and receiving any notice referred to in this Agreement, all notices must be in writing and must be delivered or sent by registered mail to the address described in the Agreement.
SECTION 10: ADVICE / DISCLOUSRE
- This Agreement is intended to create binding legal obligations. The buyer and the Seller should read this Agreement carefully and are free to obtain legal advice before signing.
- The Buyer may wish to consider obtaining an independent property inspection and verifying the measurements of the property.
SECTION 11: ACCEPTANCE
- This Agreement may be signed and sent by fax and this procedure will be as effective as signing and delivering an original copy.
- This offer/counter–offer is open for acceptance until _______o’clock (a.m. / p.m.) on ___(Date)___.
- The Buyer offers to buy the Property for the Purchase Price according to the terms of this Agreement. Signed at ____(City)____, ___(State/Prov.)__ at _______o’clock (a.m. / p.m.) on ___(Date)___.
- The Seller accepts the Buyer’s offer and agrees to sell the Property for the Purchase Price according to the terms of this Agreement.
Signed at ____(City)____, ___(State/Prov.)__ at ___(time)____ on __(Date)__
- This Agreement was made (final acceptance) at: _______o’clock (a.m. / p.m.) on ___(Date)___.
Initials of the person(s) who last signed or initialed.