Clauses & Phrases 2015 For use with Contracts of Purchase & Sale
ASSOCIATION OF SASKATCHEWAN REALTORS CLAUSES AND PHRASES FOR CONTRACTS OF PURCHASE AND SALE 2015 EDITION
INTRODUCTION The Association of Saskatchewan REALTORS (Association) can best fulfill its responsibility and role in organized real estate by ensuring that all registrants engaged in real estate have an opportunity to be properly trained and well informed, and thereby better serve the public in a professional manner. To this end, this series of clauses and phrases is provided to complement the growing list of educational programs, reference materials, and standard forms available to the general membership. Poorly drafted Offers to Purchase are a significant problem in real estate practice. As with any contract, the purpose of each item included must be clear and so specific that there is no misunderstanding possible with regard to who will do what, by what date, etc. When in doubt on any issue, registrants are advised to seek the advice of their broker, or branch manager, and if necessary, a lawyer. Taking extra care when drafting clauses and phrases in offers may help to prepare an enforceable contract. Registrants must be familiar with the form of contract they are using and be knowledgeable as to how to use the necessary clauses and phrases. No clause or phrase should be used without due consideration as to its meaning and effect and must be tailored to suit the needs of the parties. While the sample clauses and phrases provided in this booklet are useful in many circumstances, they should be used only as a guide. It is important that the applicable clause or phrase be reviewed and considered carefully prior to inserting it into a contract, to ensure that the clause or phrase is suitable for the circumstances of the particular situation. Any clause or phrase used must clearly and accurately reflect the intention of the buyer or seller. The sample clauses and phrases may need to be altered accordingly. Registrants must recognize their limitations and refrain from negotiating contracts beyond the scope of their knowledge and experience. ii
GENERAL DISCLAIMER AND CAUTION TO USER The Association of Saskatchewan REALTORS (Association) has developed these clauses and phrases for its members to consider in the preparation of contracts of purchase and sale. The clauses and phrases, which are contained herein, are provided solely for the purpose of guidance and do not in any way constitute required wording or legal advice. Every real estate transaction is unique and the Association of Saskatchewan REALTORS does not warrant and is not responsible in any way for the adequacy, sufficiency, applicability, accuracy, or suitability or any of the clauses or provisions hereinafter set out. Further, the Association of Saskatchewan REALTORS assumes no liability for the utilization of any of the clauses or provisions hereinafter set out. The registrant is encouraged to seek expert advice as warranted in the drafting of agreements. Revised August, 2015 COPYRIGHT Association of Saskatchewan REALTORS Saskatoon, SK S7J 2V8 Phone: 306.373.3350 Toll-free: 1.877.306.7732 Email: info@saskatchewanrealestate.com Website: www.saskatchewanrealestate.com iii
IMPORTANT INSTRUCTIONS TO USERS a) Typed Supersedes Printed: Any clauses or phrases added to the body of the offer will supersede any information in the pre-printed form. Care must, therefore, be taken with any inclusions to ensure that both parties are clear about the intent of any such inclusions. b) Conditions Versus Warranties/Representations: The decision to utilize a condition, warranty, or other representation will depend largely on circumstances. The vast majority of clauses are presented in condition format; however, various warranty examples have been included. The reader should note that most warranties are made to the best knowledge and belief and do not extend beyond the current transaction. Many variations exist in the marketplace and caution is advised when using warranties and representations. c) Subject to Clauses: It is always important to be clear on whether a condition you are putting into an offer to purchase is a condition precedent (i.e., a subject to clause) or not. A condition precedent refers to a condition that must be fulfilled prior to closing for the offer to purchase to be complete. In general, these clauses are used to deal with preliminary matters, such as financing, inspections, or the sale of the Buyer s home. Usually, these subject to conditions are so important that if they are not satisfied or waived in writing, the deposit is returned to the Buyer and the contract is void. When all subject to conditions in the offer have been satisfied, or waived in writing with the agreement of both parties, then a binding contract exists between the Buyer and Seller. If the Buyer subsequently defaults or fails to complete the transaction, the Buyer is in breach of contract and the Seller may be entitled to take whatever remedies exist in law, including retaining the deposit. iv
When utilizing subject to clauses, be as specific as possible. Ensure that a date is inserted for satisfaction or removal of the conditions. d) Terms of the Contract: Terms are important inclusions to the offer, e.g., possession date, what chattels remain, etc. While these terms are enforceable as part of the contract for which the parties can sue and be sued, the sale does not automatically cancel if not adhered to. Subject to clauses are usually not used for such terms of the contract you would not want the sale to be automatically cancelled if the Seller, on closing, failed to leave the fridge and stove that had been included in the contract. e) Alternative Wordings: The clauses and phrases provided are examples and have been provided for information purposes only. Users should carefully read the particular clause or phrase and revise as required to meet individual circumstances. f) Capitalized Words: The first letter of selected words has been capitalized for emphasis only and should not be viewed as a required format. g) Use of Pronouns: This material should be read with all changes of gender and number as the reader may feel is required. v
TABLE OF CONTENTS INTRODUCTION... ii GENERAL DISCLAIMER AND CAUTION TO USER... iii IMPORTANT INSTRUCTIONS TO USERS... iv A. CLAUSES AND PHRASES... 1 PART 1: RESIDENTIAL CLAUSES... 1 AGENCY... 1 AGENCY-1 Seller to Only Pay Seller s Brokerage... 1 AGENCY-2 Buyer Pays Buyer s Brokerage... 1 AGENCY-3 Buyer s Agent Paid by Both the Seller s and Buyer s Brokerages... 1 AGENCY-4 Limited Dual Agency/Disclosure of Payment... 1 AGENCY-5 Not in Limited Dual Agency... 1 AGENCY-6 Single Agency/Buyer as Customer and Seller as Client... 1 AGENCY-7 Single Agency/Seller as Customer and Buyer as Client... 2 AGENCY-8 Registrant Disclosure... 2 ALARM SYSTEMS... 2 ALARM-1 Alarm System to be Removed... 2 ALARM-2 Alarm System to be Kept but Not Monitored... 2 ALARM-3 Buyer to Assume Monitoring Charges to Alarm System... 2 BUILDINGS/CONSTRUCTION... 2 BUILD/CONST-1 Condition Obtaining Building Permit... 2 BUILD/CONST-2 Walk-Through Inspection Deficiency List Clause... 3 BUILD/CONST-3 Seller to Complete/Repair Deficiencies... 3 BUILD/CONST-4 Confirmation New Home Warranty... 3 BUILD/CONST-5 Seller Warranty Against Structural Defects... 3 BUILD/CONST-6 Seller Warranty Work/Materials... 3 CHATTELS, FIXTURES, AND EQUIPMENT... 4 CHATT-1 Fixtures/Chattels No Warranty... 4 CHATT-2 Equipment Good Working Order... 4 CHATT-3 Chattels Transfer to Buyer in Good Working Order... 4 CONDOMINIUMS... 4 CONDO-1 Alterations/Changes to Unit During Interim Occupancy... 4 CONDO-2 Compliance by Buyer, Guests, and Family Members... 4 i
CONDO-3 Tenant to Occupy Property... 5 CONDO-4 Condominium Plan Not Registered/Contract Signed... 5 CRIMINAL ACTIVITY... 5 CRIM-1 No Criminal Activity - Warranty... 5 CRIM-2 Criminal Activity - Acknowledgement... 5 CRIM-3 No Growth or Manufacture of Illegal Substances - Warranty... 5 CRIM-4 Growth or Manufacture of Illegal Substances - Acknowledgement... 6 CRIM-5 The Safer Communities and Neighbourhoods Act Warranty.. 6 CRIM-6 The Safer Communities and Neighbourhoods Act Condition.. 6 CRIM-7 The Criminal Property Forfeiture Act... 6 DEPOSITS/PAYMENTS... 6 DEP/PAY-1 Deposit Trust Account... 6 DEP/PAY-2 Amount of Deposit... 6 DEP/PAY-3 Conditional on Deposit... 6 DEP/PAY-4 No Deposit Provided... 7 DEP/PAY-5 Deposit Increase On Removal of Condition(s)... 7 DEP/PAY-6 Deposit Increase Additional Payment... 7 DEP/PAY-7 Deposit Interest Bearing... 7 DEP/PAY-8 Conditional on Lawyer Approval/Holding of Deposit... 7 DOCKS AND BOATHOUSES... 7 DOCKS-1 Condition... 7 DOCKS-2 Seller Warranty... 7 ENVIRONMENTAL... 8 ENV-1 Agricultural Activities Acknowledgement... 8 ENV-2 Buyer Accepts Building/Property in Present Condition... 8 ENV-3 Seller s Remedy of Condition... 8 ENV-4 Non-existence of Condition... 8 ENV-5 Condition Acceptable Level... 9 ENV-6 Conditional on Site Inspection/Report... 9 ENV-7 Condition Oil Tank Aboveground or Underground... 9 ENV-8 Underground Tank Seller has Removed... 9 ENV-9 Underground Tank Seller to Remove... 9 ENV-10 Satisfactory Soil Test... 10 ESTATE SALE... 10 EST-SAL-1 Conditional on Letters Probate/Consent... 10 GOODS AND SERVICES TAX CLAUSES (GST)... 10 GST-1 Conditional on Buyer/Seller Receiving and Approving GST Information... 10 GST-2 Buyer to Pay GST... 10 GST-3 Seller to Pay GST/Buyer to Assign Rebate... 10 ii
GST-4 Eligibility for GST Rebate... 10 GST-5 GST Not Included... 11 GST-6 GST in Addition To... 11 GST-7 Not Subject to GST... 11 GST-8 Buyer to Remit GST... 11 INSPECTION OF PROPERTY... 11 INSP-1 Condition Inspection of Property by a Home Inspector... 11 INSP-2 Condition Inspection of Property by a Home Inspector Condominium... 11 INSP-3 Buyer Right of Re-Inspection... 11 INSP-4 Inspection for Termites, Bedbugs, etc.... 12 INSP-5 Right of Re-Inspection... 12 INSULATION... 12 INSUL-1 Seller Warrants No UFFI, Asbestos, Zonolite, or Vermiculite.. 12 INSUL-2 Present in Property... 12 INSUL-3 Seller has no Knowledge... 12 INSURANCE... 12 INS-1 Buyer Obtaining Insurance... 12 INS-2 Warranty re Cancellation or Refusal to Issue Insurance Policy 13 INS-3 Approval of Fire/Property Insurance... 13 INS-4 Buyer Acknowledgement of Woodstove/Fireplace... 13 INS-5 Conditional on Confirmation of Valid Insurance for Woodstove/Fireplace... 13 LAND RESTRICTIONS... 13 LAND-1 Crown Land Restrictions/Reservations... 13 LAND-2 Hazard Land, Flood Plain, Environmentally Protected Area... 13 LAND-3 Heritage Property... 13 LAND-4 Land Lease Buyer to Assume... 14 LAWYER/SOLICITOR APPROVAL... 14 LAW-1 Lawyer/Solicitor Approval... 14 LAW-2 Expert Advice to be Obtained... 14 MORTGAGES... 14 MORT-1 Arranging of New Mortgage... 14 MORT-2 Conditional on New Mortgage with Existing Mortgagee... 14 MORT-3 Discharge of Existing Mortgage Seller to Pay... 15 MORT-4 Conditional on Assumption of Existing Mortgage (Mortgagee Approval)... 15 MORT-5 Assumption of Existing Mortgage (No Approval)... 15 MORT-6 Conditional on Seller Take Back Mortgage... 15 MORT-7 Conditional on Legal Advice Agreement for Sale... 15 MORT-8 Conditional on Legal Advice Lease with Option to Purchase 15 iii
MORT-9 Buyer to Bear Costs Agreement for Sale or Seller to Take Back Mortgage... 15 MORT-10 Buyer Credit Report... 15 MORT-11 Payment in Advance... 16 MORT-12 Conditional on the Appraisal Equal Greater Purchase Price 16 MORT-13 Buyer Acknowledges Finder Fee... 16 MORT-14 Conditional on Seller Taking Buyer s Property In Trade... 16 MORT 15 Right to Demolish... 16 NEW HOME WARRANTY PROGRAM... 16 NHWP-1 Saskatchewan New Home Warranty Program... 16 NON-RESIDENT SELLER... 16 NONRES-1 Holdback for Non-resident Sellers... 16 POSSESSION DATE... 17 POSS-1 Change of Possession Date by Buyer... 17 POSS-2 Change of Possession Date by Seller... 17 PROPERTY CONDITION DISCLOSURE STATEMENT... 17 PCDS-1 Seller to Provide a Property Condition Disclosure Statement.. 17 PCDS-2 Property Condition Disclosure Statement to form Part of Offer 17 REAL PROPERTY REPORT... 17 RPR-1 Seller to Provide Existing Real Property Report... 17 RPR-2 Conditional on Seller to Provide New Real Property Report... 17 RPR-3 Buyer to Obtain Real Property Report... 18 RELATIVE/ADVISOR/FINANCIAL APPROVAL... 18 APP-1 Conditional on Contract Approval... 18 APP-2 Conditional on Viewing by Third Party... 18 APP-3 Conditional on Financial Advice... 18 RENT/SALE OF PROPERTY... 18 RENT-1 Confidentiality of Disclosed Rental Information... 18 RENT-2 Seller Warranty Tenancy Information... 18 RENT-3 Seller Warranty Tenancy Information... 19 RENT-4 No Rent Increases Pending Completion of Sale... 19 RENT-5 Notices to Tenants of New Owner... 19 RENT-6 Buyer Assumption of Existing Tenancy... 19 RENT-7 Conditional on Seller as Tenant... 19 RENT-8 Seller Notice to Tenant(s)... 19 RENT-9 Conditional on Documentation/Legality of Suite... 19 RENT-10 Unauthorized Accommodation... 20 RENT-11 Lease Agreement for Mobile Home in Mobile Home Park... 20 RENT-12 Presence of Pets on Property... 20 iv
ROAD ACCESS... 20 ACCESS-1 Conditional upon Road Access by Open Public Road... 20 ACCESS-2 Road Access Alternatives... 20 SALE OF BUYER S PROPERTY... 20 SBP-1 Conditional on Sale of Buyer s Property... 20 SBP-2 Conditional on Sale of Buyer s Property Option Clause... 21 SBP-3 Conditional on Sale of Buyer s Property/to be Listed Option Clause... 21 SBP-4 Conditional on Completion of Sale of Buyer s Property... 21 SBP-5 Conditional on Seller s Release From Previous Offer to Purchase... 21 SBP-6 Conditional on Seller Purchase... 21 SEWAGE SYSTEM/SEPTIC SYSTEM... 21 SEW/SEP-1 Warranty Good Working Order... 21 SEW/SEP-2 Condition Approvals and Good Working Order... 22 SWIMMING POOLS... 22 SWIM-1 Seller Warrants Condition of Pool... 22 SWIM-2 Seller Warrants Legislative Compliance... 22 SWIM-3 Seller Responsible for Winterizing Pool... 22 TITLE... 22 TITLE-1 Buyer Acceptance of Information on Title... 22 WATER SUPPLY... 23 WATER-1 Water Supply Potability... 23 WATER-2 Water Supply Buyer s Condition... 23 WATER-3 Water Supply Seller s Warranty... 23 WATER-4 Water Supply Well Certificate... 23 ZONING... 23 ZON-1 Conditional on Buyer Confirmation of Zoning... 23 ZON-2 Conditional on Buyer Acquiring Zoning Changes... 23 ZON-3 Zoning Warranty by the Seller... 24 v
PART 2: COMMERCIAL CLAUSES AND PHRASES... 25 APPROVAL... 25 COMM-1 Solicitor s Approval... 25 BUILDING LOCATION CERTIFICATE... 25 COMM-2 Building Location Certificate, Building Plans & Mechanical Drawings... 25 FINANCIAL STATEMENTS... 25 COMM-3 Approval of Financial Statements by Buyer s Accountant... 25 COMM-4 Financial Statements Available but not Delivered to Buyer... 26 ENVIRONMENTAL... 26 COMM-5 Satisfactory Environmental Site Analysis... 26 INSPECTION OF PROPERTY... 26 COMM-6 Satisfactory Inspection... 26 COMM-7 Right of Access to Property... 27 COMM-8 Inspection of Real Property... 27 MISCELLANEOUS PROPERTY CLAUSES... 27 COMM-9 Sale of Buyer s Property... 27 COMM-10 Seller Permitted to Remain on Property... 28 COMM-11 Easement... 28 COMM-12 Right of Way... 28 COMM-13 Encroachment... 28 COMM-14 Party Wall Agreements... 28 COMM-15 Floors... 28 COMM-16 Cleaning... 28 COMM-17 Parking Area... 28 COMM-18 Assessment Appeals... 29 COMM-19 Local Improvement Levies... 29 COMM-20 Non Merger... 29 MORTGAGES... 29 COMM-21 Prepayment... 29 COMM-22 Renewal of Mortgage... 29 COMM-23 Mortgagee Consent to Subdivide... 29 COMM-24 Mortgagee Consent for Rezoning... 29 COMM-25 Mortgagee Consent to Dedication of Road... 30 COMM-26 Mortgagee Consent to Granting of Easements... 30 COMM-27 Mortgagee Consent for Registration in Land Titles... 30 COMM-28 Partial Mortgage Sale of Lots... 30 vi
RENTAL PROPERTY... 30 COMM-29 Supply Copy of Leases... 30 SERVICES AND EQUIPMENT... 31 COMM-30 All Equipment in Good Working Order... 31 COMM-31 No Representations or Warranties on Chattels... 31 COMM-32 Machinery and Equipment... 31 COMM-33 Seller to Repair... 31 COMM-34 Absence of Work Orders... 31 COMM-35 Service Maintenance Contracts... 31 COMM-36 Additional Equipment... 31 SOLICITOR... 32 COMM-37 Solicitor Clause... 32 ZONING/SUBDIVISION... 32 COMM-38 Zoning... 32 COMM-39 Zoning Satisfaction... 32 COMM-40 Conditional upon Rezoning with Seller s Consent... 33 COMM-41 Zoning... 33 COMM-42 No Site Plan Development Agreement... 33 COMM-43 Conditional on Buyer Approval/Franchise Agreement... 33 COMM-44 Conditional on Franchisor s Approval/Assignment of Franchise... 33 B. COMPLETION GUIDELINES FOR THE SEVEN MANDATORY FORMS... 35 1. RESIDENTIAL CONTRACT OF PURCHASE AND SALE... 35 2. COUNTER OFFER TO RESIDENTIAL CONTRACT OF PURCHASE AND SALE... 42 3. NOTICE TO REMOVE CONDITION(S) ON RESIDENTIAL CONTRACT OF PURCHASE AND SALE... 44 4. SCHEDULE C (SPECIFIED TERMS AND CONDITIONS FOR CONTRACT OF PURCHASE AND SALE OF A RESALE CONDOMINIUM UNIT)... 47 5. DISCLOSURE OF INTEREST IN TRADE... 50 vii
6. ANCILLARY SERVICES IN THE PURCHASE OF RESIDENTIAL REAL ESTATE... 56 7. AMENDMENT TO RESIDENTIAL CONTRACT OF PURCHASE AND SALE... 58 viii
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A. CLAUSES AND PHRASES PART 1. RESIDENTIAL CLAUSES AND PHRASES AGENCY AGENCY-1 Seller to Only Pay Seller s Brokerage The Seller s Brokerage agrees to reduce the commission payable by the Seller to % of the sale price. AGENCY-2 Buyer Pays Buyer s Brokerage Seller, Seller s Brokerage, Buyer and Buyer s Brokerage acknowledge that provided this sale closes, the total commission payable to the Buyer s Brokerage is being paid exclusively by the Buyer. AGENCY-3 Buyer s Agent Paid by Both the Seller s and Buyer s Brokerages Seller and Buyer acknowledge that the Buyer s agent is being paid commission by both the Seller s Brokerage and the Buyer s Brokerage. AGENCY-4 Limited Dual Agency/Disclosure of Payment The Seller and Buyer acknowledge that the Seller s and Buyer s Brokerage is being paid commission in the amount of $ by the Seller and commission in the amount of $ by the Buyer. AGENCY-5 Not in Limited Dual Agency Buyer and Seller acknowledge that although the Buyer s Brokerage and the Seller s Brokerage operate within the same corporate franchise, they are separate Brokerages, and therefore are not in a Limited Dual Agency relationship with the Buyer or Seller. AGENCY-6 Single Agency/Buyer as Customer and Seller as Client The Buyer hereby acknowledges that the Brokerage is the Agent of the Seller, representing the interest of the Seller, and the Buyer consents to proceed with this transaction, as an unrepresented party. 1
AGENCY-7 Single Agency/Seller as Customer and Buyer as Client The Seller hereby acknowledges that the Brokerage is the Agent of the Buyer, representing the interest of the Buyer, and the Seller consents to proceed with this transaction, as an unrepresented party. AGENCY-8 Registrant Disclosure Use of Disclosure of Interest in Trade form. ALARM SYSTEMS ALARM-1 Alarm System to be Removed The Seller agrees, at the Seller s expense, to buy out the monitoring and/or sales agreement for the alarm system with the result being the removal of the system completely by Possession Date. The Seller will take steps to repair any holes in the walls or other damages caused by the removal of the alarm system in a good workmanship manner to a paint-ready state. ALARM-2 Alarm System to be Kept but Not Monitored The Seller agrees, at the Seller s expense, to buy out or terminate the monitoring and/or sales agreement for the alarm system with the result that the alarm system is fully paid for, will become the property of the Buyer, and will remain intact and operational on Possession Date, but will not be monitored. ALARM-3 Buyer to Assume Monitoring Charges to Alarm System The Buyer agrees to assume monitoring charges on the existing alarm system contract in an amount not exceeding $ per month for a term of years terminating on. BUILDINGS/CONSTRUCTION BUILD/CONST-1 Condition Obtaining Building Permit This Offer is subject to the Buyer determining, at the Buyer s expense, that a building permit for the structure indicated on Schedule attached, is available with respect to the Property by, 20. 2
BUILD/CONST-2 Walk-Through Inspection Deficiency List Clause The Buyer and the Seller (or technical representative of the Seller) together will conduct a walk-through inspection of the Property no later than (number of days) before the Completion Date. Immediately after completion of the walk-through inspection, a deficiency list of mutually agreed upon items to be remedied by the Seller will be completed. The list will include a mutually agreed upon value of the deficiencies to be remedied. Both the Buyer and the Seller will sign, date, and retain a copy of the deficiency list. BUILD/CONST-3 Seller to Complete/Repair Deficiencies The Seller at his expense will complete and/or repair the items specified on the attached deficiencies list and valued at $. The list forms a part of this contract. The quality of workmanship and materials used will be equal to or better than that of the surrounding construction. The Buyer will hold back from the sale proceeds the amount specified in the deficiency list until all the deficiencies specified in the deficiency list are completed, and will place this holdback in the conveyancer s trust account. BUILD/CONST-4 Confirmation New Home Warranty The Seller confirms being registered with the Saskatchewan New Home Warranty Program, and that the building (or the building to be built) on the Property is (or will be) covered by the Warranty offered by that program. BUILD/CONST-5 Seller Warranty Against Structural Defects The Seller warrants the building against major structural defects (as defined herein) to a maximum of $(amount) for (number of years) year(s) from date of occupancy by the Buyer. Major structural defects means defects which adversely affect the load-bearing portion of the improvements. BUILD/CONST-6 Seller Warranty Work/Materials The Seller warrants the building against defects in quality of work and materials (as defined herein) to a maximum of $(amount) for (number of years) year(s) from the date of occupancy by the Buyers. Quality of work and materials means those incorporated into the construction by the Seller, its employees, and those trades and others contracted directly by the Seller. 3
CHATTELS, FIXTURES, AND EQUIPMENT CHATT-1 Fixtures/Chattels No Warranty The Seller and Buyer acknowledge that there is no express or implied warranty on the chattels included in this Offer to Purchase. CHATT-2 Equipment Good Working Order The Seller warrants that all mechanical, electrical, heating, ventilation, air conditioning systems, sprinkler systems, and all other equipment on the Property shall be in good working order on Possession Day. CHATT-3 Chattels Transfer to Buyer in Good Working Order The following chattels, as viewed by the Buyer on, are owned by the Seller and presently located on the Property. The Seller agrees to transfer to the Buyer, at closing, any warranties, which are transferable, relating to the chattels. Such chattels shall remain on the Property, be included in the purchase price, and shall be conveyed to the Buyer in good working order, free and clear of all encumbrances on Possession Date: NB List make, model, and serial number of each chattel. CONDOMINIUMS CONDO-1 Alterations/Changes to Unit During Interim Occupancy The Buyer covenants and agrees that no alterations will be made to the unit during the term of interim occupancy. Upon completion of the transaction, the Buyer agrees to abide by the Bylaws and Rules relating to alterations and changes within the unit. CONDO-2 Compliance by Buyer, Guests, and Family Members The Buyer hereby covenants with the Seller and with the Condominium Corporation that the Buyer, members of the household, and guests, will comply with The Condominium Property Act, 1993, the Bylaws, and all Rules and Regulations, in using the unit and the common elements, and will be subject to the same duties imposed by the above as those applicable to other individual unit owners. 4
CONDO-3 Tenant to Occupy Property The Buyer agrees to abide by the Bylaws, Rules and Regulations of the Condominium Corporation and, if the Property is to be rented, the Buyer agrees to inform all tenants of the Rules and Regulations and receive written acknowledgement of the tenants regarding their willingness to abide by same within the rental document. It is clearly understood that all rental agreements shall conform to the Rules and Regulations as passed from time to time by the Board of Directors of the Condominium Corporation. CONDO-4 Condominium Plan Not Registered/Contract Signed It is a fundamental term of this contract that a condominium plan for the Property, in the form shown to the Buyer at the time of the signing of this contract, be fully registered in the appropriate Land Title Registry by Completion Date, whereby the Condominium Corporation is created when the titles are issued for the units. CRIMINAL ACTIVITY CRIM-1 No Criminal Activity Warranty The Seller represents and warrants that during the time the Seller has owned the Property, the Property has not been used for any criminal use or activity, and that, to the best of the Seller s knowledge, the Property has never been used for any criminal use or activity. CRIM-2 Criminal Activity Acknowledgement The Buyer acknowledges that the Property has been used for criminal use or activity, and acknowledges that the Seller makes no representations and/or warranties with respect to the state of repair of the premises, and the Buyer accepts the Property in its present state, and in an as is condition. CRIM-3 No Growth or Manufacture of Illegal Substances Warranty The Seller represents and warrants that, during the time the Seller has owned the Property, the Property has not been used for growth or manufacture of any illegal substances, and that, to the best of the Seller s knowledge and belief, the Property has never been used for the growth or manufacture of illegal substances. This warranty shall survive and not merge on the completion of this transaction. 5
CRIM-4 Growth or Manufacture of Illegal Substances Acknowledgement The Buyer acknowledges that the Property may have been used for the growth or manufacture of illegal substances and acknowledges that the Seller makes no representations and/or warranties with respect to the state of repair of the premises and the Buyer accepts the Property in its present state and in an as is condition. CRIM-5 The Safer Communities and Neighbourhoods Act Warranty The Seller represents and warrants that no activities are being conducted in or about the Property which have resulted in, or which would, could, or might result in, a Community Safety Order being made under The Safer Communities and Neighbourhoods Act with respect to the Property. CRIM-6 The Safer Communities and Neighbourhoods Act Condition This Offer is conditional upon the Buyer determining within calendar days from the acceptance date of this Offer that there is no order under The Safer Communities and Neighbourhoods Act pertaining to the Property or any portion or portions thereof. Unless the Buyer gives notice in writing delivered to the Seller within calendar days from the acceptance date of this Offer that this condition is fulfilled, this Offer shall become null and void. CRIM-7 The Seizure of Criminal Property Act, 2009 The Seller represents and warrants that no activities are being conducted in or about the Property which have resulted in, or which would, could, or might result in, a Forfeiture Order being made under The Seizure of Criminal Property Act, 2009. DEPOSITS/PAYMENTS DEP/PAY-1 Deposit Trust Account Deposit to be placed in trust account within hours of acceptance of this Offer. DEP/PAY-2 Amount of Deposit Buyer to provide a deposit in the amount of $, by, 20. DEP/PAY-3 Conditional on Deposit This Offer is subject to the Buyer providing a deposit in the amount of $, by, 20. 6
DEP/PAY-4 No Deposit Provided If the Buyer fails to pay the deposit money as required by this contract, the Seller may, at the Seller s option, terminate this contract. DEP/PAY-5 Deposit Increase On Removal of Condition(s) The Buyer will increase the deposit to $ upon removal of financing condition(s). DEP/PAY-6 Deposit Increase Additional Payment The Buyer agrees to pay a further sum of ($ ) to the Listing Broker, by cheque, on or before the day of, 20, as a supplementary deposit to be held in trust pending completion or termination of this Offer to Purchase in the same manner and under the same terms and conditions as the original deposit. This amount is to be credited towards the purchase price on completion of this transaction. DEP/PAY-7 Deposit Interest Bearing This deposit is to be placed in an interest bearing account with the interest accruing to the benefit of the (Buyer/Seller). DEP/PAY-8 Conditional on Lawyer Approval/Holding of Deposit This Offer is subject to the (Buyer s/seller s) lawyer approving, by, 20, the arrangements for holding the deposit money in this transaction. DOCKS AND BOATHOUSES DOCKS-1 Condition This Offer is conditional upon the Buyer determining, at the Buyer s own expense, that the [boathouse, dock, pier, etc.] used in conjunction with the Property, and passing to the Buyer on completion, [has/have] received all necessary approvals and permits from all appropriate authorities having jurisdiction, to enable the Buyer to continue its use. Unless the Buyer gives notice in writing delivered to the Seller within calendar days from the acceptance date of this Offer that this condition has been fulfilled, this Offer shall become null and void. DOCKS-2 Seller Warranty The Seller represents and warrants to the best of his knowledge and belief that the [boathouse, dock, pier, etc.] used in conjunction with the Property, and passing to the Buyer on completion, [has/have] received all necessary approvals and permits from all appropriate authorities having jurisdiction. 7
ENVIRONMENTAL ENV-1 Agricultural Activities Acknowledgement The Buyer acknowledges that the Property lies within, partially within, adjacent to or within kilometres of an area zoned, used or identified for agricultural and food production activities and that such activities occur in the area. These activities may include intrusive operations that cause discomfort and inconveniences that involve, but are not limited to dust, noise, flies, light, odour, smoke, traffic, vibration, operating of machinery during any 24 hour period, storage and utilization of manure and the application by spraying or otherwise or chemical fertilizers, soil amendments, herbicides and pesticides. ENV-2 Buyer Accepts Building/Property in Present Condition The Seller discloses and the Buyer acknowledges, that the Building/Property contains (describe condition) and the Buyer accepts the Building/Property in this condition. ENV-3 Seller s Remedy of Condition The Seller discloses that although (describe condition) was known to have been in/on the Building/Property, such (condition) to the best of his/her knowledge was removed/remedied on, 20. As proof of the removal/remedy, the Seller attaches the following documents: ENV-4 Non-existence of Condition The Seller discloses that the Building/Property was tested for (describe condition) on, 20, by (name of testing contractor/government authority). The results of the test indicated that no (describe condition) was present in/on the Building/Property. As proof of such testing, the Seller attaches the following documents: 8
ENV-5 Condition Acceptable Level The Seller discloses that the Building/Property was tested for (describe condition) on, 20, by (name of testing contractor/government authority). The results of such testing indicated that is acceptable and accordingly, no further action has been taken. As proof of such testing, the Seller attaches the following documents: ENV-6 Conditional on Site Inspection/Report This Offer is subject to the Buyer receiving and being satisfied with a site inspection and report from (inspecting body/expert tester/government authority), concerning (describe condition) by, 20. ENV-7 Condition Oil Tank Aboveground or Underground This Offer is subject to the Buyer obtaining a report stating that the tank system in, on or about the Property is in a safe operating condition and complies with the regulatory requirements of The Hazardous Substances and Waste Dangerous Goods Regulations under The Environmental Management and Protection Act, 2010, and any other applicable regulations by, 20. ENV-8 Underground Tank Seller Has Removed The Buyer acknowledges that there was an underground fuel tank on the Property that has been removed and the Seller agrees to provide to the Buyer at the Seller s expense by no later than, 20, evidence that the fuel oil tank has been removed, the soil surrounding the underground fuel oil tank has been assessed for contamination, cleaned and any contamination removed according to applicable regulatory regulations. ENV-9 Underground Tank Seller to Remove The Seller agrees, at the Seller s expense, to have the underground fuel oil tank on the Property removed from the Property by, 20, and thereafter to have the soil surrounding the underground fuel oil tank assessed for contamination and any contamination cleaned and removed according to applicable regulatory regulations, and to provide evidence of such. The grading and the landscaping on the Property to be restored to its original condition or comparable condition prior to the removal of the said fuel oil tank. 9
ENV-10 Satisfactory Soil Test This Offer is conditional upon the Buyer obtaining at the Buyer s own expense, soil tests verifying the Property is satisfactory to the Buyer for the construction of a on the Property. Unless the Buyer gives notice in writing delivered to the Seller within calendar days from the acceptance date of this Offer that this condition is fulfilled, this Offer shall be null and void. The Seller agrees to cooperate in providing access to the Property for the purpose of the soil tests. If the Buyer fails to provide a notice of fulfilment of the condition as provided above, the Buyer agrees to reasonably restore any alterations to the condition of the Property caused by the soil tests. ESTATE SALE EST-SAL-1 Conditional on Letters Probate/Consent This Offer is subject to the Seller receiving Letters Probate and either a consent to the sale by all beneficiaries or a court order approving the sale by, 20. GOODS AND SERVICES TAX CLAUSES (GST) GST-1 Conditional on Buyer/Seller Receiving and Approving GST Information This Offer is subject to the Buyer/Seller receiving and approving information or professional advice concerning his/her GST liability, GST exemptions, or GST rebates by, 20. GST-2 Buyer to Pay GST The Buyer confirms having received independent GST advice concerning the obligation to pay GST and will be responsible to pay any GST and apply for any new home rebate in connection with this transaction. GST-3 Seller to Pay GST/Buyer to Assign Rebate The Seller will pay any GST in connection with this transaction, and the Buyer will assign any new home rebate to the Seller. GST-4 Eligibility for GST Rebate The Buyer confirms that he or she is purchasing the Property for use as a principle residence and hereby is entitled to the GST New Housing Rebate. The Seller and Buyer agree that the purchase price includes GST based on the Buyer assigning the Rebate to the Seller, and that the price reflects the credit given by the Seller to the Buyer for this assignment. The Buyer agrees to sign the Rebate application and any other documents necessary to have the Rebate paid or credited to the Seller. 10
GST-5 GST Not Included The purchase price does not include GST. In the event that GST is payable and the Buyer is not a GST registrant, then the Buyer shall remit the applicable GST to the Seller s lawyer on or before completion date. GST-6 GST in Addition To If this transaction is subject to GST, then such GST shall be in addition to and not included in the purchase price, and GST shall be collected and remitted in accordance with applicable legislation. GST-7 Not Subject to GST The Seller warrants that this transaction is not subject to GST and agrees to provide on or before closing to the Buyer or Buyer s solicitor a certificate satisfactory to the Buyer or Buyer s solicitor certifying that the transaction is not subject to GST. GST-8 Buyer to Remit GST No GST shall be paid by the Buyer to the Seller on closing provided the Buyer shall provide a GST enrolment and undertake to self-assess and remit as required by the applicable legislation. INSPECTION OF PROPERTY INSP-1 Condition Inspection of Property by a Home Inspector This Offer is subject to the inspection of the subject Property by a home inspector at the Buyer s own expense, and the obtaining of a report satisfactory to the Buyer by, 20. INSP-2 Condition Inspection of Property by a Home Inspector - Condominium This Offer is subject to the inspection of the unit and common elements by a home inspector at the Buyer s expense, and the obtaining of a report satisfactory to the Buyer by, 20. INSP-3 Buyer Right of Re-Inspection The Buyer shall have the right to inspect the Property (specify number) further time(s) prior to completion, at a mutually agreed upon time, provided that prior notice is given to the Seller. The Seller agrees to provide access to the Property for the purpose of this inspection(s). 11
INSP-4 Inspection for Termites, Bedbugs, etc. This Offer is conditional upon the Buyer or his appointed representative inspecting the subject Property for termites or bedbugs and the obtaining of a report satisfactory to the Buyer at his own expense. Unless the Buyer gives notice in writing delivered to the Seller within calendar days from the acceptance date of this Offer that this condition is fulfilled, this Offer shall become null and void. The Seller agrees to cooperate in providing access to the Property for the purpose of this inspection. INSP-5 Right of Re-Inspection The Buyer shall have the right to inspect the Property one further time prior to possession, upon written notice given to the Seller. The inspection is to be at a mutually agreed-upon time. INSULATION INSUL-1 Seller Warrants No UFFI, Asbestos, Zonolite, or Vermiculite The Seller represents and warrants that the Property does not contain urea formaldehyde foam insulation, asbestos, Zonolite, or vermiculite insulation. This representation and warrant shall apply only to the state of the Property existing on completion of this transaction. INSUL-2 Present in Property The Seller discloses that the Property does contain urea formaldehyde foam insulation, asbestos, Zonolite, or vermiculite insulation and the Buyer acknowledges that the Seller has made this disclosure. The Buyer accepts the Property in that state and further acknowledges that the Seller does not represent or warrant the quality or quantity of the insulation or the quality of its installation. INSUL-3 Seller Has No Knowledge The Seller has no knowledge as to whether the Property has been insulated with urea formaldehyde foam insulation, asbestos, Zonolite, or vermiculite insulation and specifically makes no representation or warranty in that regard. INSURANCE INS-1 Buyer Obtaining Insurance This Offer is conditional on the Buyer obtaining approval for insurance, satisfactory to the Buyer, for the Property within calendar days from the acceptance date of this Offer. The Seller agrees to cooperate in providing access to the Property, if necessary, for any inspection of the Property required for the fulfilment of this condition. 12
INS-2 Warranty re Cancellation or Refusal to Issue Insurance Policy The Seller states that to the best of his/her knowledge that during his/her ownership of the Property, no insurer has cancelled fire insurance on the Property; and no insurer has refused to issue or renew an insurance policy on the Property. INS-3 Approval of Fire/Property Insurance This Offer is subject to the Buyer obtaining approval for fire/property insurance on the Property located at, satisfactory to the Buyer, by, 20. INS-4 Buyer Acknowledgement of Woodstove/Fireplace The Buyer acknowledges that the (woodstove/fireplace) installed on the Property may not be approved for legal use and may render any fire insurance void. INS-5 Conditional on Confirmation of Valid Insurance for Woodstove/Fireplace This Offer is subject to the Buyer obtaining confirmation from their insurance agent by, 20, that the installed on the Property will not void their fire insurance coverage. LAND RESTRICTIONS LAND-1 Crown Land Restrictions/Reservations The Seller hereby declares to the Buyer, and the Buyer acknowledges, understands, and accepts that this Property is subject to certain reservations of the Crown, specifically but not limited to the fact that the have been reserved. LAND-2 Hazard Land, Flood Plain, Environmentally Protected Area This Offer is conditional upon the Buyer determining, at his own expense, that no portion of the Property has been designated as an environmental hazard, flood plain, or an environmentally protected area. Unless the Buyer gives notice in writing delivered to the Seller within calendar days from the acceptance date of this Offer that this condition has been fulfilled, this Offer shall become null and void. LAND-3 Heritage Property The Parties hereto acknowledge that the Property is/may be designated as a heritage site and is subject to the provisions of The Heritage Property Act. The Buyer acknowledges that the Seller has made this disclosure. The Buyer accepts the Property with this designation and agrees to continue with this transaction. 13
LAND-4 Land Lease Buyer to Assume The Seller agrees to assign, and the Buyer agrees to assume, the existing land lease on the Property, with [insert name of Lessee], a copy of which is attached as Schedule. LAWYER/SOLICITOR APPROVAL LAW-1 Lawyer/Solicitor Approval This Offer is subject to the approval of the terms and conditions stated herein by the Buyer s (or Seller s) lawyer within calendar days from the acceptance of this Offer. Unless the Buyer (or Seller) gives notice in writing delivered to the Seller (or Buyer) within calendar days from the acceptance date of this Offer that this condition is fulfilled, this Offer shall become null and void. LAW-2 Expert Advice to be Obtained The Parties to this Offer to Purchase acknowledge that the real estate brokerage and its representatives so named in this Offer have recommended that they obtain advice from their legal counsel prior to signing this document. The parties further acknowledge that no information provided by the real estate brokerage or its representatives is to be construed as expert legal, tax, or environmental advice. MORTGAGES MORT-1 Arranging of New Mortgage This Offer is conditional upon the Buyer arranging, at his own expense, a new mortgage for (not less than) ($ ), bearing interest at a rate of not more than % per annum, calculated semi-annually not in advance, repayable in blended monthly payments of about ($ ), including both principal and interest, and to run for a term of not less than years. Unless the Buyer gives notice in writing delivered to the Seller within calendar days from the acceptance date of this Offer that this condition is fulfilled, this Offer shall become null and void. MORT-2 Conditional on New Mortgage with Existing Mortgagee This Offer is subject to the Buyer being able to refinance with the present Mortgagee, namely: and arrange by, 20, a first mortgage in the amount of $, year amortization, year term at %, principal and interest payments of approximately per month. 14
MORT-3 Discharge of Existing Mortgage Seller to Pay The Seller acknowledges that there may be a penalty to discharge the existing mortgage and agrees to pay any costs, expenses or penalties incurred in discharging the existing mortgage. MORT-4 Conditional on Assumption of Existing Mortgage (Mortgagee Approval) This Offer is subject to the Buyer being approved to assume the existing mortgage held by, by, 20, in the amount of $, year amortization, year term, ending, 20, at %, principal and interest payments of approximately $ per month. MORT-5 Assumption of Existing Mortgage (No Approval) The Buyer agrees to assume an existing mortgage held by, in the amount of $, year amortization, year term, ending, 20, at %, principal and interest payments of approximately $ per month. MORT-6 Conditional on Seller Take Back Mortgage This Offer is subject to the Seller taking back a mortgage by, 20, in the amount of, interest rate of % per annum, monthly payments of including principle and interest, and to run for a term of years from the date of completion of this transaction. MORT-7 Conditional on Legal Advice Agreement for Sale The Seller agrees to carry the remaining balance of $ by way of an Agreement for Sale at an interest rate of %, year amortization, year term, principle and interest payments of approximately $ per month. The parties agree to sign a formal Agreement for Sale. This Offer is subject to the Buyer and Seller receiving satisfactory legal advice with respect to the Agreement for Sale by, 20. MORT-8 Conditional on Legal Advice-Lease with Option to Purchase This Offer is subject to the parties negotiating and executing a formal agreement with the benefit of legal advice by, 20. MORT-9 Buyer to Bear Costs Agreement for Sale or Seller Take Back Mortgage The Buyer will bear the costs of drawing up the (Agreement for Sale or Seller s Take Back Mortgage), including legal costs. MORT-10 Buyer Credit Report This Offer is subject to the Seller being satisfied concerning the personal and/or credit worthiness of the Buyer by, 20. 15
MORT-11 Payment In Advance The principle balance may be paid at any time, in whole or in part, without notice, bonus or penalty. MORT-12 Conditional on the Appraisal Equal Greater Purchase Price This Offer is subject to the Property at appraising at a value equal to, or greater than, the purchase price by, 20. MORT-13 Buyer Acknowledges Finder Fee Buyer acknowledges that the Buyer s Brokerage may receive a Finder s Fee in the amount of $ in connection with the arranging of financing for the Buyer. MORT-14 Conditional on Seller Taking Buyer s Property In Trade This Offer is subject to the Seller entering into an unconditional Contract of Purchase and Sale with the Buyer for the purchase of the Buyer s Property described as (describe Property) by, 20. MORT-15 Right to Demolish This Mortgage shall contain a clause providing that the Mortgagor shall have the right to alter or demolish any or all of the existing buildings now on the Property without such activity constituting waste under the terms of this Mortgage, provided that such alteration or demolition shall comply with all applicable bylaws, building codes, or other applicable laws or regulations. NEW HOME WARRANTY PROGRAM NHWP-1 Saskatchewan New Home Warranty Program The Seller represents and warrants, to the best of the Seller s knowledge and belief, that the said home and its builder are both registered under the Saskatchewan New Home Warranty Program. Applicable documents are attached as Schedule and form part of this Offer to Purchase. NON-RESIDENT SELLER NONRES-1 Holdback for Non-resident Sellers The Seller confirms that the Seller is a non-resident of Canada within the meaning of the Income Tax Act (Canada) and that a portion of the sale proceeds as stipulated under the provisions of the Income Tax Act (Canada) shall be held back at closing until the Seller supplies the appropriate clearance certificate from the Canada Revenue Agency. 16
POSSESSION DATE POSS-1 Change of Possession Date by Buyer Notwithstanding the Possession Date set out in this Offer, the Buyer may advance (postpone) the Possession Date of this transaction by not more than days, by giving written notice of the amended Possession Date to the Seller or his solicitor at least days in advance of the earlier of the Possession Date set out herein and the amended Possession Date. POSS-2 Change of Possession Date by Seller Notwithstanding the Possession Date set out in this Offer, the Seller may advance (postpone) the Possession Date of this transaction by not more than days, by giving written notice of the amended Possession Date to the Buyer or his solicitor at least days in advance of the earlier of the Possession Date set out herein and the amended Possession Date. PROPERTY CONDITION DISCLOSURE STATEMENT PCDS-1 Seller to Provide a Property Condition Disclosure Statement This Offer is conditional upon the Seller completing a Property Condition Disclosure Statement in the prescribed form which is to be delivered to the Buyer within calendar days of the acceptance of this Offer and, upon delivery, the Buyer shall be permitted calendar days to consider any concerns that may arise from the disclosure. If the results are not satisfactory to the Buyer, the Buyer may terminate this Agreement and the deposit shall be returned to the Buyer in full without deduction or interest. PCDS-2 Property Condition Disclosure Statement to form Part of Offer The attached Property Condition Disclosure Statement completed by the Seller in the prescribed form and dated, 20, is incorporated into and forms part of this Offer to Purchase contract. REAL PROPERTY REPORT RPR-1 Seller to Provide Existing Real Property Report Seller to provide existing Real Property Report to the Buyer by, 20. RPR-2 Conditional on Seller to Provide New Real Property Report This Offer is subject to the Seller providing a new Real Property Report of the said Property by, 20 at the Seller s expense. 17
RPR-3 Buyer to Obtain Real Property Report The Buyer acknowledges that a new Real Property Report may be required for purposes of financing and agrees to obtain said report at the Buyer s expense. RELATIVE/ADVISOR/FINANCIAL APPROVAL APP-1 Conditional on Contract Approval This Offer is subject to approval of the contract by by, 20. APP-2 Conditional on Viewing by Third Party This Offer is subject to the viewing of the Property being satisfactory to, by, 20. APP-3 Conditional on Financial Advice This Offer is subject to receiving financial advice satisfactory to the Buyer/Seller by, 20. RENT/SALE OF PROPERTY NOTE: The following rental clauses have been developed for the sale of small rental properties (e.g., duplexes, 4-plexes, etc.). For large multi-unit complexes, special conditions apply and expert assistance should be sought. RENT-1 Confidentiality of Disclosed Rental Information The Buyer will hold in strict confidence any knowledge about the rent of the Property, financial documents, leases, and such other records of the Property which the Buyer obtains from this Agreement or any other source, subject only to the use of such information in order to obtain professional advice. RENT-2 Seller Warranty Tenancy Information The Seller warrants the Tenant is (tenant s name) who occupies (whole house, basement etc.); the monthly rent is $ (amount) including (e.g., utilities included); payable on (day of the month rent is due); a security deposit of $ was taken on, 20 and the last rental increase was on, 20. The Seller warrants that the tenancy is (month to month/a fixed term lease) ending, 20. 18