Selling or buying real estate is an exciting and challenging task. The transaction should be accompanied by all the necessary documents for everything to be by the law. If you transact in Ontario, you should use the OREA Form 100. Since it’s a key paper, you need to pay close attention to its completion.
What Is OREA Form 100?
This form has a second name, “Agreement of Purchase and Sale,” which makes understanding the purpose of this document easier. It regulates the relationship between the parties executing real estate transactions and fixes the buyer’s intentions in writing. If the conditions described in the text suit all participants, and no counter-proposals are received from anyone, the Form 100 OREA comes into force. After that, it is impossible to cancel this agreement unilaterally. The template is standard for most real estate transactions in the Province of Ontario, but certain aspects may be modified by the participants’ agreement.
What Do You Need the OREA Form 100 For?
This document is used by buyers, sellers, and real estate agents to conduct transactions to purchase or sell residential premises. If you are a buyer, you can use the form to offer your terms for dwelling. If you are a seller, you can agree to the described conditions after receiving this document from a potential buyer or make your counteroffer.
The task of exchanging proposals is greatly simplified when using the OREA Form 100 fillable template and the PDFLiner editor. If all participants in this process are satisfied with the described conditions, the contract enters into force and cannot be terminated without a joint decision to this effect. The text should specify the period of validity of the buyer’s offer, as well as closing dates.
Filling Out Ontario Agreement of Purchase and Sale
The template’s first five pages are the document’s main body.
Step 1: Enter the date of completion of the agreement, as well as the full names of the buyer and seller.
Step 2: Type in the details of the property in question: the exact address with a detailed description of the size and location.
Step 3: Put the property price and the deposit amount the buyer is willing to pay. Be sure to read the terms and conditions of the transaction printed below.
Step 4: Then list excluded fixtures, included chattels, rental items, and HTS (if applicable to the property in question).
Step 5: The following pages describe the pre-printed terms and conditions you should read. If the parties agree, they need to put their signatures on each sheet.
Step 6: Next, each of the participants, as well as witnesses (there should be two of them) and the brokerage companies’ representatives, should enter their names and sign. If the seller’s spouse is involved in the transaction, they should also be indicated.
Check the completed fields for errors or typos; if everything is fine, download, print, or email the finished document to the recipients.
Agreement of Purchase and Sale Form 100 Schedules
According to the OREA Form 100 instructions, two Schedules for each party may be attached to the final agreement. Schedule A is used by the broker that represents the buyer. It may list additional terms (such as home inspection) not in the main text. Schedule B is filled in by the seller’s representative and contains pre-printed information regarding the liability of the brokerage company and the terms of the deposit.
Important Points About the Agreement of Purchase & Sale
Essential aspects of the agreement are the time limits, the periods during which the parties can submit counter-proposals, and the dates during which the contract is valid. It is also important that the seller receives the offer from the buyer on time; otherwise, it becomes invalid. Regarding dates and times, the time zone in which the object of the contract is located is implied. Any modifications to the text should be made only with the consent of both parties. At the same time, representatives of brokerage companies are not considered interested parties.
Final Words
The OREA Form 100 has been standardized and unified to be used in any real estate transaction. However, official recommendations leave enough freedom for customization. Given that some terms have a time limit, all participants should receive it by the due date. Therefore, it’s most convenient to fill out the template and send the finished file electronically using the online editor.