REAL ESTATE FORMS AND THEIR USES
Forms are created with a view to identify and satisfy general needs. The pre-set portion of any Form is complex and can be difficult to understand. It is important and mandatory to understand that the use of a Form does not apply to every circumstance and extreme care should be exercised in that respect.
Everyone is encouraged and it is recommended that everyone seek and obtain professional advice to ensure a complete and accurate understanding of any Form and not rely on the explanations contained herein.
TAKE NOTE THAT EVERY REAL ESTATE TRANSACTION IS UNIQUE AND NUDIGS.com DOES NOT WARRANT AND IS NOT LIABLE OR RESPONSIBLE IN ANY WAY FOR THE ADEQUACY, SUFFICIENCY, APPLICABILITY, ACCURACY OR SUITABILITY OF ANY OF THE EXPLANATIONS OR PROVISIONS HEREINAFTER SET OUT.
Agreement of Purchase and Sale
The Agreement of Purchase and Sale is the document that is used to state the Buyer’s desire to purchase the property, and to negotiate the terms of the sale. It is commonly referred to as an “Offer”. This document also allows the Buyer a chance to outline in detail all of the conditions they wish to be placed in their Offer to buy the Seller’s property. Some common examples of a Buyer’s conditions include arranging financing (a mortgage) for the property to be purchased, completing a home inspection, or ensuring that the sale of their current home is completed before purchasing a new one. After the Offer is prepared and signed by the Buyer, it is presented to the Seller for acceptance. The Seller, in turn, may want to make changes to the Offer for the Buyer to consider. This process can continue back and forth several times in an effort to reach an agreement.
This form allows for subsequent changes to be made to the original Agreement of Purchase and Sale such as closing date changes, inclusions or exclusions, changes in names of Purchasers or anything else that both parties need to agree to in order to have the transaction completed.
This document waives (or essentially “deletes”) any original condition(s) that was placed in the agreement and therefore, making the offer firm and binding. In other words, all conditions have been fulfilled and the transaction can proceed to closing.
This Form is a contract between a Seller and a real estate company that gives the real estate company permission to act on the Seller’s behalf when they offer their home for sale in the open market. A written agreement is necessary in order to secure commission and to ensure compliance with the REBBA Code of Ethics.
This document sets out the asking price for the property, description of the property offered for sale, the length of the contract and any extension provisions.
Seller Customer Service Agreement
This Form is used when a Buyer is a Client of a Salesperson but the Seller agrees to offer their property for sale and pay a commission but have no representation and is therefore a Customer. It sets out the terms of the agreement between the parties.
Buyer Representation Agreement
This Form is a contract between a Buyer and a real estate company that gives the real estate company permission to act on the Buyer’s behalf in the purchase of a property. Assuming the Buyer is a Client of the real estate company, the Real Estate Council of Ontario (Ontario’s governing body) REBBA Code of Ethics requires that Salespeople have a written Buyer Representation Agreement presented for signature prior to an offer being presented on behalf of the Buyer.
Buyer Customer Service Agreement
This Form is similar to the Seller Customer Service Agreement and is used when a Buyer is not represented by a Brokerage and is therefore not a Client but rather a Customer.
Confirmation of Co-operation and Representation
This Form is used to indicate to all parties involved the specific types of relationships that exist in their particular real estate transaction. This document is used in part to reassure all parties that they will be treated fairly in the transaction. The Form is used to set up an arrangement between companies and is acknowledged by the parties.