AGREEMENT OF PURCHASE AND SALE
We will be more than pleased to review any agreement of purchase and sale prior to you signing it. However, if you are unable to have a solicitor review it before you sign, here are some things for you to be aware of:
- When purchasing a condominium unit or townhouse, ensure the agreement is conditional upon the Vendor providing and the Purchaser's solicitor approving the Condominium Status Certificate and Condominium documents. This will assist the Purchaser in ensuring that there are no anticipated increases in the monthly common expenses/maintenance fees or any special assessments in the near future. A clause by the Vendor confirming there are no anticipated increases in the monthly maintenance fees or special assessment may also be included in the agreement of purchase and sale.
- If you need a mortgage to purchase the property, ensure the agreement of purchase and sale is conditional upon the Purchaser obtaining satisfactory mortgage financing. Sign a Waiver or Amendment deleting the mortgage financing condition after you have obtained from your mortgage company written confirmation that you are approved for the mortgage.
- When purchasing a home that is not a condominium, enquire if the Vendor has a survey. If a survey is not provided prior to you signing the agreement of purchase and sale, ensure that the agreement of purchase and sale contains a clause whereby the Vendor agrees to deliver to the Purchaser, at the Vendor's expense, a survey of the property within a specified time period from the date of acceptance of the agreement of purchase and sale (example "within five days of acceptance of the agreement of purchase an sale").
- If you are not sure about any clause or provision in the agreement of purchase and sale, but due to time restraints you are required to sign the agreement immediately, ensure a clause is added to the agreement of purchase and sale making the transaction conditional upon your solicitor reviewing and approving the terms of the agreement of purchase and sale.
- If you are purchasing a new condominuim, be aware that the Builder is required to provide you with both the Agreement of Purchase and Sale and a Disclosure package. You have 10 days from the date of agreement to have your lawyer review the Agreement and Disclosure Statement, following which you can decide whether or not to proceed with your purchase of the condominium unit. This 10 day "cooling period" only applies to newly built condominiums.
By having your lawyer review your conditional agreement of purchase and sale, in particular when purchasing a newly built home or condominium unit, your lawyer can advise you in the event the pre-printed portion of the builder's agreement form provides for payment by you of various additional builder costs and adjustments.
The following are some of the costs that could be included: hydro and water connection fees, tree planting fees, park or education levy sur-charges, driveway paving deposits, Tarion Warranty fee, grading deposits, vendor/builder's law society levy surcharge, vendor's discharge fees re existing mortgages payable by the vendor/builder, prepayment of a deposit to be applied towards realty taxes to be assessed and payable after closing, provincial sales tax on the cost of appliances included in your purchase, etc. These costs are in excess of the purchase price payable by you to the builder.
Usually these added costs are referred to in the pre-printed portion but rarely sets out the individual amounts for such costs. Once these costs are disclosed to you, you have the opportunity to approach the builder to verify the amounts and request the builder cap the amount(s) to avoid any increased costs from the date you sign the agreement of purchase and sale to the date of your actual closing and to possibly delete costs usually payable by the builder such as discharge fees, legal fees and law society levy surcharge.
