This is what the Ontario Real Estate Association (“OREA”) Form 100 (Agreement of Purchase and Sale – Residential) might have added if it was written by home buyers for home buyers and not an association representing the interests of its member realtors.
- Buyer Acknowledgment – Realtor
Buyer acknowledges being provided the following from the realtor:
- How much did seller pay and why is he/she selling?
- Copy of realtor’s discipline history or any current investigations if not shown at http://www.reco.on.ca/buyer/BuyerOrSeller.html
- Any commission promises in writing
- Whether a survey is available from seller or from land survey records website
- The conflict of interest in using a lawyer referred by that realtor and (if applicable) by the realtor acting as a dual agent.
- A listing history of the property
- Any due diligence that the realtor recommends and who will be responsible for obtaining it – SPIS, status certificate, mortgage appraisal, tax bill/MPAC, survey, well/septic approvals, furnace/water heater leases etc.
- Copies of any work permit applications made by Seller. If Seller performed work without permits, a list of such work. Seller agrees to discharge any work orders and close (obtain final inspections) of any open permits before closing. [Otherwise, you may be forced to accept a return of your deposit, or worse].
- Buyer may postpone the closing up to 2 business days at a cost of $______ (or no cost). [Greedy sellers or their lawyers can charge over $800 to a buyer who “breaches” the contract when his/her bank is delayed. Two or three hundred dollars is reasonable unless the Seller has to close on time – find out early].
- The deal can close up to 5PM on day of closing. [It is impossible to close after 5PM so the 6PM in the standard OREA contract should be changed].
- Seller will promptly provide consent for any inquiries or record searches of third parties or government agencies (excluding property inspections) that are requested by Buyer. [Unsure why this is not a standard clause, particularly for rural or mixed use properties].
- Buyer shall have until 6PM on the 15th calendar day before (and excluding) the completion date to make any objections to title. [Agents (out of self interest) and parties often (out of ignorance) put impossible or unfair time deadlines on the lawyer’s ability to complete searches and possibly cancel a problem deal].
- Buyer may terminate the deal without further liability if buyer’s institutional lender will not advance funds due to a title or non title defect that cannot be insured over or repaired (at Seller’s expense) prior to closing.
- Appliances, plumbing fixtures, furnace/AC, and electrical outlets to be in working order as at closing.
- Buyer will be permitted two inspections prior to closing on 24 hours notice.
- Seller’s address for any future service of documents is …
- “This offer is submitted on the understanding that seller has multiple offers. If that is not the case, seller will notify buyer by ____PM and buyer will have one hour to revise or revoke this offer. If this offer is accepted, seller will provide the names and phone numbers of the agent/broker that submitted the next best competing offer”. [Thanks to Mark Weisleder for this!].
