Purchase Contract

1. Purchase Contract Barbara Grodaes Paint by blanks!

2. Successful Completion = Binding • AREA has 3 pre-printed purchase contract forms: Residential, Commercial or Rural Real Estate Purchase Contracts. Make sure you use the correct form • Purchase contract is between the seller(s) and the buyer(s) • Real estate agent is the vehicle to create, present and close the deal using the Purchase contract form Paint by blanks!

3. Key Concerns Regarding Contract • All registered owner(s) of property must be included as seller(s) and full legal names of buyer(s) – good idea to have title/listing with you • If either a Dower Affidavit or Consent and Acknowledgement of Consent be required, the Dower Schedule must be completed and attached to the Purchase Contract and indicated in clause 7.6 on page 3 for the seller Paint by blanks!

4. Section 1 The Property • Municipal address including town/city and full short legal description (remember if condo check parking) • Clause 1.3 is for unattached goods that will remain – must be specific • Clause 1.4 is for attached goods except for attached goods that will be removed – also be specific • Clause 1.5 buyer must understand obligations seller(s) will discharge and which to be assumed Paint by blanks!

5. Section 2 – The Transaction • Details contain relevant and specific information about financial terms of purchase, including purchase price, handling of initial and/or additional deposits, how purchase price broken down for financing and balance owing • If a mortgage is assumed, or if seller(s) provide financing, or if other value is involved, FinancingSchedule to be completed and attached to this Purchase Contract Paint by blanks!

6. Section 3 - Deposits • Indicates where the deposit will be held and how it will be handled • Buyer may make an initial deposit to indicate a serious interest in the property and then make additional deposits perhaps after offer accepted or some condition is removed • Also indicates the deposit application depending on the success or failure of the contract Paint by blanks!

7. Section 4 - Closing • Sets out the “Completion Day” and provides for standard actions common to the closing such as provisions for week-end possessions, payments, interests, adjustments, condition of the property, documentations, etc. • This section also clarifies what costs the buyer will pay and what costs the seller(s) will pay with respect to title encumbrances Paint by blanks!

8. Sections 5 & 6, Insurance, Warranties and Representations • Section 5 requires the seller(s) to maintain insurance on the property until the buyer pays the seller the full purchase price • Section 6 details all of the promises or guarantees that the seller is making to the buyer concerning everything to do with the property – measures should be taken to make this true Paint by blanks!

9. Section 7 – Additional Terms • Any schedules accompanying the contract must be noted in the body of the contract and initialled by both parties • This section enforces the times and dates, the agreed upon statements such as gender, etc. and the attached schedules, if any • Additional terms may be filled in the blanks area or attached (usually attached) Paint by blanks!

10. Section 8 - Conditions • A condition precedent allows contract to exist only if outcome of specified event satisfactory • A condition subsequent make contract binding if the conditions are not removed • Real Estate Purchase Contract contains onlyconditions precedent • A date (Condition Day) must be set to either satisfy OR waive the condition and both must be done in writing Paint by blanks!

11. Conditions Continued • 8.1 deals with buyer’s conditions (benefit buyer) • Include the Property Inspection Schedule as it is fair to both buyer and seller(s) • 8.2 deals with seller’s conditions (benefit seller) – if not enough room attach addendum • Party who places condition precedent must give notice that either waived or satisfied in writing before 9:00pm on stated Condition Day Paint by blanks!

12. Section 9 – Remedies / Disputes • This section indicates how a party my pursue all available remedies such as access to arbitration, mediation, or small claims court because some condition is not met or a house inspection does not meet the buyer’s expectations • If a buyer defaults, the seller can keep the deposits and can claim for additional damages and the buyer is required to pay the costs the seller incurs Paint by blanks!

13. Section 10 – Advice / Disclosure • This section contains information that both buyer and seller must know • Contract is intended to create binding legal obligations and both are advised to read the entire contract carefully • Clients should be encouraged to obtain legal advice before signing the contract (never discourage a client from seeking it!) Paint by blanks!

14. Section 10 Continued • All buyers should consider obtaining an independent property inspection to learn the condition and measurement of the property • Special care must be made if acting as dual agency • Clause 10.4 is the only means by which the agents involved can ensure that the commissions are paid • Fax delivery is effective delivery Paint by blanks!

15. Section 11 - Definitions • These are terms that both the buyer and the seller(s) need to understand as their signature on the contract implies that they do • It is important for the real estate agent to make sure that the client is clear on these terms as it will make the transaction smoother and the clients calmer Paint by blanks!

16. 12 Representatives / Notices • Representatives identified represent the buyer and the seller(s) • Specifies that all notices must be in writing and must be delivered to the address or faxed to the number described. If faxed, fax confirmation and original kept on file • All information should be very accurate and full Paint by blanks!

17. Sections 13, 14 and 15 • Offer (13) indicates the offer and the time it is open for acceptance and is dated, signed and witnessed • Acceptance (14) indicates that the offer is accepted and the sale is agreed upon according to the terms of the contract • Final Acceptance (15) party last to sign the contract fills in the time and initials to indicate so Paint by blanks!

18. Schedules • Provides details of terms or conditions indicated in the contract when there is not enough space for such details in the form contract itself • Must have the corresponding purchase contract number recorded on the upper right hand corner • Must be initialled at the bottom of the schedule by both parties to ensure the schedule forms part of the contract Paint by blanks!

19. Schedules Continued • Financing Schedule – only used assumption of existing mortgage, other value or seller financing • Property Schedule – transactions that involve resale condominiums, manufactured/mobile homes, country residential acreages and rental agreements • Property Inspection Schedule, Notice, Sale of Buyer’s Home Schedule, Seller’s Notice / Buyer’s Notice, Amendments, Addendums, Dower Paint by blanks!