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The Deed of Absolute Sale With Assumption of Mortgage is a specialized legal document used in Canadian real estate transactions where the buyer wishes to assume the seller's existing mortgage instead of obtaining new financing. This arrangement can be advantageous when the existing mortgage has favorable terms or when interest rates have increased since the original mortgage was secured. The document must comply with federal banking regulations and provincial property laws, requiring careful attention to both property transfer and mortgage assumption requirements. It includes detailed information about the property, purchase price, existing mortgage terms, and the specific conditions under which the mortgage is being assumed. This document type is particularly relevant in markets where mortgage portability and assumption are common practices, and requires coordination between real estate professionals, banking institutions, and legal representatives to ensure proper execution.

1. Parties: Identifies and provides full details of the Seller, Buyer, and Current Mortgagee

2. Background: Outlines the current ownership status, existing mortgage details, and intention to transfer both property and mortgage obligations

3. Definitions: Defines key terms used throughout the document including Property, Purchase Price, Assumed Mortgage, Closing Date

4. Property Description: Detailed legal description of the property being sold, including lot number, plan, street address, and boundaries

5. Purchase Price and Payment Terms: Specifies the total purchase price, deposit amount, and payment structure, including the portion covered by the assumed mortgage

6. Mortgage Assumption Details: Outlines the terms of the existing mortgage being assumed, including outstanding balance, interest rate, and payment schedule

7. Seller's Representations and Warranties: Seller's guarantees regarding property title, condition, and existing mortgage status

8. Buyer's Covenants: Buyer's commitments regarding mortgage assumption, future payments, and compliance with mortgage terms

9. Closing Procedures: Details the process for completing the sale and mortgage assumption, including required documentation and timing

10. Transfer of Title: Specifics about the transfer of legal title and registration requirements

11. Property Condition: Statement about the condition in which the property will be transferred

12. Adjustments: Details about prorating of taxes, utilities, and other expenses

13. Default and Remedies: Consequences and available remedies if either party fails to meet obligations

14. Execution: Formal signing requirements and witness provisions