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Pre Sale Agreement Property for Canada

Pre Sale Agreement Property Template for Canada

A Pre-Sale Agreement Property is a legally binding contract used in Canadian real estate transactions for the purchase and sale of property before construction is completed. This document, governed by provincial legislation including the Real Estate Development Marketing Act (REDMA), outlines the terms and conditions for the future transfer of property ownership, including purchase price, completion timelines, specifications of the property, and both parties' obligations. It incorporates mandatory consumer protection provisions, deposit protection mechanisms, and detailed disclosure requirements specific to Canadian pre-construction property sales.

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What is a Pre Sale Agreement Property?

The Pre-Sale Agreement Property is a crucial document in Canadian real estate development that facilitates the sale of properties before their construction is completed. It serves as the primary contract between developers and purchasers, typically used in new construction projects ranging from residential condominiums to commercial developments. This agreement must comply with strict provincial regulations, particularly regarding disclosure requirements, deposit protection, and consumer rights. The document includes comprehensive details about the property specifications, payment terms, construction timelines, and completion obligations. It is designed to protect both the developer's interests in securing advance sales and the purchaser's interests in ensuring the delivery of the promised property. The agreement must incorporate all mandatory provisions required by provincial real estate development marketing laws and consumer protection legislation.

What sections should be included in a Pre Sale Agreement Property?

1. Parties: Identification of the Developer/Seller and Purchaser with full legal names and addresses

2. Background: Context of the development project, property details, and purpose of the agreement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the property including unit number, floor plan, parking, storage and anticipated square footage

5. Purchase Price: Total purchase price, deposit structure, and payment schedule

6. Deposit Protection: Details of how the deposit will be held in trust and protected

7. Construction and Completion: Expected completion date, construction milestones, and outside date for completion

8. Purchaser's Obligations: All obligations of the purchaser including payment terms and cooperation requirements

9. Seller's Obligations: All obligations of the seller including construction and completion requirements

10. Closing Procedures: Detailed procedures for closing, including documentation and timing requirements

11. Adjustments and Closing Costs: Details of adjustments to be made at closing and allocation of closing costs

12. Warranties: New home warranty details and any additional warranties provided

13. Default and Remedies: Consequences of default by either party and available remedies

14. Assignment: Terms and conditions for assignment of the purchase agreement

15. Notices: How and where notices must be delivered between parties

16. General Provisions: Standard contract clauses including entire agreement, severability, and governing law

What sections are optional to include in a Pre Sale Agreement Property?

1. Financing Arrangements: Include when developer is offering or arranging financing options

2. Rental Pool Agreement: Include when the development offers a rental pool program

3. Foreign Buyer Provisions: Include when purchaser is a foreign buyer subject to additional requirements

4. GST/HST Elections: Include when there are specific GST/HST elections or arrangements

5. Pre-Authorized Payment Plan: Include when offering installment payment options

6. Property Management: Include when development includes mandatory property management services

7. View and Use Restrictions: Include when there are specific view guarantees or use restrictions

What schedules should be included in a Pre Sale Agreement Property?

1. Schedule A - Property Specifications: Detailed specifications of the unit including floor plan, finishes, and included features

2. Schedule B - Site Plan: Plan showing location of unit within development and common areas

3. Schedule C - Disclosure Statement: Mandatory disclosure statement as required by provincial legislation

4. Schedule D - Construction Standards: Detailed construction specifications and quality standards

5. Schedule E - Permitted Encumbrances: List of permitted encumbrances that will remain on title

6. Schedule F - Unit Layout: Detailed unit floor plan with measurements

7. Schedule G - Common Area Specifications: Details of common areas and facilities

8. Schedule H - Warranties: Detailed warranty terms and conditions

9. Appendix 1 - Payment Schedule: Detailed schedule of all required payments and due dates

10. Appendix 2 - Statutory Declarations: Required statutory declarations and notices

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 Development

Residential Construction

Commercial Construction

Property Management

Real Estate Sales

Legal Services

Banking and Finance

Construction Management

Urban Development

Property Investment

Relevant Teams

Legal

Real Estate Development

Sales

Compliance

Construction Management

Finance

Risk Management

Customer Relations

Property Management

Contract Administration

Relevant Roles

Real Estate Developer

Property Development Manager

Real Estate Lawyer

Real Estate Agent

Sales Director

Construction Project Manager

Legal Counsel

Compliance Officer

Contract Administrator

Property Sales Manager

Development Director

Real Estate Broker

Financial Controller

Risk Manager

Customer Service Manager

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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