The seller is often surprised when form 100 or the agreement of purchase and sale is handed to them at the proverbial kitchen table. After all, the agreement of purchase and sale or the offer can appear suddenly and unexpectedly. The seller is often introduced to the agreement of purchase and sale when a completed and signed version - delivered by the buyer’s agent - is in front of them. Ironically, the seller can be completely unfamiliar with this crucial document even though their property is on the market. To complicate matters, the agreement of purchase and sale establishes an irrevocable period - if the buyer’s offer is not accepted by the seller within the stated timeframe, the offer is null and void and no longer binding on any of the parties. In other words, the clock is ticking – and sometimes the seller doesn’t have a lot of time to decide whether to accept, reject, or send back the offer. Nonetheless, a great deal is at stake as the property is typically the seller’s most significant investment. By accepting the offer, the seller creates a binding contract between the two parties. As a result, it is imperative that the seller fully understands the fine print before they sign the agreement of purchase and sale. The agreement of purchase and sale, an eight-page document with 28 sections, can be complex and difficult to understand. The pre-set portion and legalese within the document are often inaccessible. The layman’s version of the agreement of purchase and sale provides explanations of each provision, paragraph or section of the form and is meant only to be a general overview. The layman’s version helps to ensure that all questions and ambiguities associated with the document have been addressed before the form is signed by both parties. The layman’s version enables the seller to become familiar with the language and provisions of the agreement of purchase and sale and prepare for the day when a genuine offer is presented to them.
Toronto Real Estate Board (TREB) and the Ontario Real Estate Association (OREA)
The following is a link to a document prepared by the Toronto Real Estate Board (TREB) and the Ontario Real Estate Association (OREA). It is a copy of the standard form used by Realtors© for the agreement of purchase and sale. Key clauses have been annotated in red, providing an interpretation of the meaning of the clause in layman’s terms. You may find it helpful.
http://www.torontorealestateboard.com/buying/plain_language_forms/pdf/100_PL.pdf
The layman’s version of the agreement of purchase and sale is included within our brokerage’s listing package because achieving optimal results in the sale of your property takes preparation and planning.
