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Home Purchase Agreement for Canada

Home Purchase Agreement Template for Canada

A legally binding document used in Canadian real estate transactions that outlines the terms and conditions for the purchase and sale of residential property. This agreement, governed by Canadian federal and provincial laws, details crucial elements including property description, purchase price, closing date, conditions precedent, and the rights and obligations of both buyer and seller. It incorporates specific Canadian legal requirements, including compliance with provincial real estate regulations, land transfer tax considerations, and foreign buyer restrictions where applicable. The agreement serves as the primary contract document protecting all parties' interests in the transaction.

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What is a Home Purchase Agreement?

The Home Purchase Agreement is a fundamental legal document used in Canadian residential real estate transactions to formalize the purchase and sale of property. It is required whenever residential real estate is bought or sold in Canada, whether the property is a single-family home, condominium, townhouse, or other residential dwelling. The agreement must comply with federal laws such as the Foreign Buyer Ban Act and provincial real estate regulations. It includes essential information such as property details, purchase price, payment terms, conditions of sale, closing requirements, and both parties' obligations. The document serves multiple purposes: it protects both buyer and seller interests, ensures clear communication of terms, meets legal requirements for property transfer, and provides a framework for completing the transaction. Real estate professionals, lawyers, and financial institutions rely on this agreement as the authoritative document governing the property transfer.

What sections should be included in a Home Purchase Agreement?

1. Parties: Identifies and provides full legal names and addresses of the buyer(s) and seller(s)

2. Background: Establishes the context of the transaction and confirms the seller's ownership of the property

3. Definitions: Defines key terms used throughout the agreement

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

5. Purchase Price: States the total purchase price and breaks down the deposit and payment structure

6. Deposit: Specifies deposit amount, payment timing, and how it will be held in trust

7. Closing Date: Specifies the date of closing and conditions for any extensions

8. Conditions Precedent: Lists all conditions that must be met before the agreement becomes firm

9. Representations and Warranties: Statements of fact by both parties about the property and their capacity to enter into the agreement

10. Property Inspection: Terms regarding the buyer's right to inspect the property and consequences of inspection findings

11. Title: Requirements for clear title and process for addressing title issues

12. Included and Excluded Items: Lists fixtures and chattels included or excluded from the sale

13. Adjustments: Details how property taxes, utilities, and other expenses will be prorated

14. Risk: Specifies who bears risk of damage to the property before closing

15. Default: Consequences of default by either party

16. Notices: How formal communications between parties should be made

17. Closing Procedures: Details the process and requirements for closing

18. General Provisions: Standard legal provisions including governing law, assignment, and entire agreement

What sections are optional to include in a Home Purchase Agreement?

1. Financing Condition: Used when buyer requires mortgage financing to complete the purchase

2. Sale of Buyer's Property: Include when purchase is conditional on buyer selling their existing property

3. Rental Property Provisions: Required when property is currently tenanted or will be tenant-occupied

4. Swimming Pool/Hot Tub Compliance: Include when property includes these features to ensure compliance with safety regulations

5. Home Warranty: Used for new construction or recently built homes

6. Environmental Provisions: Include when there are known or potential environmental issues

7. Heritage Property Requirements: Required for properties designated as heritage buildings

8. Condominium Provisions: Include specific provisions for condominium purchases

9. Foreign Buyer Provisions: Required when buyer is not a Canadian resident

10. GST/HST Provisions: Include for new construction or substantially renovated properties

What schedules should be included in a Home Purchase Agreement?

1. Schedule A - Legal Description: Detailed legal description of the property from land registry

2. Schedule B - Included Items: Comprehensive list of fixtures and chattels included in the sale

3. Schedule C - Excluded Items: List of items specifically excluded from the sale

4. Schedule D - Property Condition Disclosure: Seller's disclosure of known property conditions and defects

5. Schedule E - Title Searches: Results of title searches and any identified encumbrances

6. Schedule F - Environmental Reports: Any environmental assessments or reports

7. Schedule G - Property Survey: Current survey of the property showing boundaries and structures

8. Schedule H - Condominium Documents: Required documents for condominium purchases

9. Appendix 1 - Property Photographs: Current dated photographs of the property

10. Appendix 2 - Floor Plans: Current floor plans of the property

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




































Clauses








































Relevant Industries

Real Estate

Legal Services

Financial Services

Insurance

Banking

Property Management

Construction

Property Development

Property Investment

Mortgage Lending

Relevant Teams

Legal

Real Estate

Compliance

Risk Management

Property Management

Sales

Documentation

Transaction Processing

Client Services

Contract Administration

Relevant Roles

Real Estate Agent

Real Estate Broker

Real Estate Lawyer

Property Lawyer

Mortgage Broker

Property Manager

Real Estate Paralegal

Title Officer

Escrow Officer

Property Appraiser

Real Estate Investment Manager

Compliance Officer

Legal Counsel

Contract Administrator

Real Estate Documentation Specialist

Property Sales Manager

Real Estate Transaction Coordinator

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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