The OREA (Ontario Real Estate Association) Standard Form Agreement of Purchase and Sale is a legally binding document that outlines the terms and conditions of a real estate transaction in Ontario, Canada. This agreement is used when buying or selling a property, and it contains important details such as the purchase price, deposit amount, closing date, and conditions of the sale.
One of the advantages of using the OREA Standard Form Agreement is that it is widely recognized and accepted by real estate professionals in Ontario. This means that both buyers and sellers can have confidence in the fairness and accuracy of the agreement, which can help to prevent disputes and legal issues from arising later on.
Another benefit of the OREA Standard Form Agreement is that it is customizable, meaning that it can be tailored to suit the specific needs and circumstances of the parties involved in the transaction. For example, if the buyer requires a longer closing date or the seller wants to include additional conditions, such as a home inspection or financing contingency, these can be added to the agreement.
One of the key features of the OREA Standard Form Agreement is the section on conditions of sale. This section outlines any conditions that must be met before the sale can be completed, such as the buyer obtaining financing or the seller making repairs to the property. Once these conditions are met, the sale can proceed to closing.
The OREA Standard Form Agreement also includes a section on deposits, which outlines the amount of money that the buyer must provide as a deposit to show their commitment to the sale. This deposit is typically held in trust by the seller`s lawyer until closing, at which point it is applied towards the purchase price.
Overall, the OREA Standard Form Agreement of Purchase and Sale is an important document that plays a crucial role in real estate transactions in Ontario. Whether you are buying or selling a property, it is important to work with a qualified real estate professional who can help you navigate the intricacies of the agreement and ensure that your interests are protected.