THE REAL ESTATE TRANSACTION: EXAMPLES OF COMMON CONDITIONS & SELLER REPRESENTATIONS

Examples of Common Conditions and Clauses  

in the Agreement of Purchase and Sale

 

Below are a few common clauses and conditions we may insert on your behalf when composing an offer. Custom clauses can be created to suit a Buyer’s needs when applicable. MyMuskoka Real Estate Team is adept at creating conditions with consideration of particular and special circumstances.

 

Balance of Purchase Price:

The Buyer agrees to pay the balance of the purchase price, subject to adjustments, to the Seller on completion of this transaction, with funds drawn on a lawyer's trust account in the form of a bank draft, certified cheque or wire transfer using the Large Value Transfer System.

 

Financing Condition:

This Offer is conditional upon the Buyer or the Buyer's agent arranging financing suitable to the Buyer not later than seven (7) days from the date of acceptance of this offer. Unless the Buyer gives notice in writing delivered to the Seller or the Seller's agent that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller as aforesaid within the time period stated herein.

 

Home Inspection Condition:

This Offer is conditional upon the inspection of the subject property and septic system by a home inspector and or contractor of the Buyer's choice at the Buyer's own expense, and the obtaining of a report satisfactory to the Buyer in the Buyer's sole and absolute discretion. Unless the Buyer gives notice in writing delivered to the Seller not later than seven (7) days from the date of acceptance of this offer that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. The Seller agrees to co-operate in providing access to the property for the purpose of this inspection. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller as aforesaid within the time period stated herein.

 

Insurance Condition:

This Offer is conditional upon the Buyer or the Buyer's agent arranging insurance for the property satisfactory to the Buyer in the Buyer's sole and absolute discretion. Unless the Buyer gives notice in writing delivered to the Seller not later than seven (7) days from the date of acceptance of this offer that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. The Seller agrees to co-operate in providing access to the property, if necessary, for any inspection of the property required for the fulfillment of this condition. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller as aforesaid within the time period stated herein.

 

Potable Water Condition and Representation:

This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that: (1) there is an adequate water supply to meet the Buyer's household needs; (2) the pump and all related equipment serving the property are in proper operating condition; and (3) the Buyer can obtain a Bacteriological Analysis of Drinking Water from the authority having jurisdiction indicating that there is no significant evidence of bacterial contamination. Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than seven (7) days from the date of acceptance of this offer, that these conditions have been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. These conditions are included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller as aforesaid within the time period stated herein. The Seller agrees to allow access to the subject property to the Buyer or the Buyer's agent for the purpose of satisfying this condition.

 

 

Sale of Purchasers Property Condition:

This Offer is conditional upon the sale of the Buyer's property known as

Bracebridge, Ontario. Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than 9:00 p.m. on August 31st, 2013, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller as aforesaid within the time period stated herein.

 

Septic Representation:

The Seller represents and warrants that the sewage system serving the property have received all required Use permits under the said Act or any other legislation; and further, all sewage systems serving the property have been maintained in good working order during the Seller's occupancy and will be in good working order on closing. Further, the Seller agrees to provide any and all documentation relating to the sewage system, within the Seller's possession, or which may be made available to the Seller by the appropriate authorities, and given to the Buyer prior to the last date set for examining title. The Parties agree that these representations and warranties shall survive and not merge on completion of this transaction, but apply only to the state of the property existing at the completion of this transaction, but apply only to the state of the property existing on the completion of this transaction.

 

Chattels and Fixtures Representation:

The Seller represents and warrants that the chattels and fixtures as included in this Agreement of Purchase and Sale will be in good working order and free from all liens and encumbrances on completion. The Parties agree that this representation and warranty shall survive and not merge on completion of this transaction, but apply only to the state of the property at completion of this transaction.

 

Mechanical and Systems Representation:

The Seller warrants that all the mechanical, electrical, heating, ventilation and all other equipment on the real property shall be in good working order on completion. The Parties agree that this warranty shall survive and not merge on completion of this transaction, but apply only to those circumstances existing at the completion of this transaction.