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The Owner Financed Real Estate Purchase Agreement is utilized in Canadian real estate transactions where traditional bank financing is either not preferred or not available, and the property seller agrees to finance the purchase directly. This document serves as both a purchase agreement and a financing agreement, incorporating elements of both traditional real estate contracts and mortgage agreements. It must comply with Canadian federal legislation such as the Interest Act, as well as provincial real estate and consumer protection laws. The agreement typically includes detailed terms about the property transfer, purchase price, down payment, financing terms, interest rates, payment schedule, security arrangements, and default remedies. This type of agreement is particularly relevant in situations involving unique properties, quick closings, or buyers who may not qualify for traditional mortgage financing.

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

2. Background: Establishes the context of the agreement, including the seller's ownership of the property and intention to sell with owner financing

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Property Description: Detailed legal description of the real estate property being sold

5. Purchase Price and Deposit: Specifies the total purchase price, deposit amount, and payment terms

6. Financing Terms: Details of the owner financing arrangement, including principal amount, interest rate, payment schedule, and amortization period

7. Security and Registration: Specifies the security interests being granted to the seller, including mortgage or charge on the property

8. Representations and Warranties: Statements of fact and promises made by both parties regarding the property and their capacity to enter the agreement

9. Conditions Precedent: Conditions that must be satisfied before closing the transaction

10. Closing Procedures: Details of the closing process, including documentation requirements and timing

11. Default and Remedies: Consequences of default and available remedies for both parties

12. Insurance and Property Maintenance: Requirements for property insurance and maintenance during the financing period

13. Assignment and Transfer: Rules regarding the ability to assign or transfer rights under the agreement

14. Notices: How formal communications between parties should be made and delivered

15. General Provisions: Standard legal provisions including governing law, severability, and entire agreement clauses