Standard Forms for Buying a Home
Buying a home involves several legal documents. Understanding these forms will help you feel confident throughout the process.
Important Note
Real estate forms are standardized by the Ontario Real Estate Association (OREA). Your agent will prepare these documents for you, explain each one in detail, and ensure they're completed correctly. Never sign anything you don't fully understand.
This agreement establishes your relationship with your real estate agent. It outlines the agent's duties, commission structure, and the terms of representation.
Key Points:
- Defines the agent's obligations to you
- Specifies the geographical area and property types
- Outlines commission terms
- Sets the duration of the agreement
When It's Used:
Before you start actively searching for properties
The most important document in a real estate transaction. This legally binding contract outlines all terms of the purchase including price, conditions, and closing date.
Key Points:
- Purchase price and deposit amount
- Conditions (financing, inspection, etc.)
- Included and excluded items
- Closing date and possession details
When It's Used:
When you're ready to make an offer on a property
Attached to the APS, this schedule contains additional terms specific to your offer that aren't covered in the standard form.
Key Points:
- Chattels included (appliances, fixtures)
- Special conditions or requests
- Timing requirements
- Additional seller obligations
When It's Used:
Part of your offer package
Allows the buyer to withdraw from the purchase if they cannot secure adequate financing within the specified timeframe.
Key Points:
- Amount of financing required
- Interest rate and terms acceptable
- Number of days to obtain approval
- Process for waiving or failing condition
When It's Used:
When your offer is conditional on mortgage approval
Gives the buyer time to have the property professionally inspected and the right to negotiate or withdraw based on findings.
Key Points:
- Number of days to complete inspection
- Buyer's rights based on inspection results
- Process for requesting repairs
- How to waive or fail condition
When It's Used:
Recommended for most purchases, especially resale homes
Makes your purchase conditional on the sale of your current home. Less common in competitive markets.
Key Points:
- Timeframe for selling current property
- Seller's right to continue marketing
- Escape clause provisions
- Requirements to remove condition
When It's Used:
When you need to sell your current home to buy
Used to formally notify the seller that a condition has been met (waived). Once all conditions are waived, the deal becomes firm.
Key Points:
- Identifies which condition is being waived
- Must be delivered within the condition period
- Makes that portion of the contract binding
- Requires signature and delivery
When It's Used:
When you're satisfied a condition has been met
Used to change any terms of the original Agreement of Purchase and Sale that both parties agree to modify.
Key Points:
- Can change closing date, price, or other terms
- Requires agreement from both parties
- Becomes part of the original contract
- Must be in writing
When It's Used:
When circumstances require changes after the offer is accepted
Required by law for anti-money laundering purposes. Your agent must verify your identity and complete this form.
Key Points:
- Government-issued ID required
- Personal information and employment
- Source of funds for purchase
- Kept confidential by the brokerage
When It's Used:
When you start working with a real estate agent
Tips for Reviewing Documents
Before Signing
- • Read every page carefully
- • Ask your agent to explain any unfamiliar terms
- • Verify all names, dates, and addresses
- • Confirm the purchase price and deposit
- • Review all conditions and their deadlines
After Signing
- • Keep copies of all signed documents
- • Note important dates in your calendar
- • Provide copies to your lawyer promptly
- • Track condition deadlines carefully
- • Ask questions anytime you're unsure