A Contract of Purchase and Sale is the legally binding agreement that sets out all the terms of transferring legal title of real estate from the seller to the buyer. In BC, there are generally standard forms that are used (not that we suggest doing that on your own), but there are some geographical differences depending on where you are buying and selling.
Some of the most important terms you need to decide are:
- Purchase Price – how much are you going to pay for this property? Is there GST included or excluded?
- Closing Date – the date that the legal title is transferred from the seller to the buyer (this must be on a business day that is not a statutory holiday or the Land Title Office is closed)
- Subject Conditions – the “homework” that the Buyer needs to do before committing legally to buying the property. These typically include inspections, mortgage qualification, reviewing title and strata documents or other information related to the property, getting a survey, or anything else to ensure that the buyer can do all their due diligence.
Contracts of purchase and sale are legal agreements designed to protect the buyer and the seller in any real estate transaction. They are usually drafted by your real estate agent (that only represents you) and often reviewed by a lawyer either before signing it or, definitely before removing the subject conditions.