It is customary to add certain conditions to the SPG form in an “A” schedule to the agreement. A condition simply means that a particular event must occur, otherwise the agreement is not valid. As soon as the condition is met, the party sends a notification document to the other party. A party may also waive a condition if it is unable to meet the condition within the specified time line, but still wishes to continue the transaction. As soon as all the conditions are met or have been abandoned, the agreement is considered “firm”. If the conditional period expires and it is not fulfilled or not, the contract is no longer in effect. Like any binding agreement, it is best to seek legal advice to ensure that you fully understand your rights and obligations before signing a GSP. If you do not meet your GSP obligations, this can lead to litigation and serious financial consequences. The majority of real estate transactions use the standard Ontario Real Estate Association (“OREA”) APS form.
A custom GSP can be designed, but for most residential transactions, the OREA is sufficient. It is customary, especially in a market of hot sellers, very competitive for buyers, for individuals, to buy a house before they sell the house in which they currently live. This condition allows the buyer to have a certain number of days to sell his existing home, otherwise he may withdraw from the contract. This is important because without the funds from the sale of their existing home, the buyer may not have other means to complete the agreement. It is important to know in detail which and fixtures are included in the purchase. As a general rule, all attachments attached to the property by screws, nails, sanitary facilities or wiring are included. This may include window coverings, shelves, fixtures, appliances, etc. However, to avoid surprises after closing, it is best to describe precisely which and fixtures are contained and excluded. The seller may want to exclude certain devices with sentimental value to them. Buyers have the option of including a condition that the offer is conditional on receiving a satisfactory domestic inspection report. If the home inspector identifies an expensive repair, for example.
B Water identification, faulty electrical wiring or form, the buyer has the option to detach himself from the agreement if he does not want to bear the repair costs. Sometimes the seller will agree to pay the cost of repairing the defect, in order to prevent the buyer from terminating the transaction. The purchase price is adjusted to distribute certain taxes between the seller and the buyer, such as property taxes, supply services or fuel costs. The deadline is usually divided between the buyer. A financing condition subordinates the offer to the ability of buyers to obtain financing. Typically, this gives buyers 5-7 days to secure financing, but it can indicate buyers for any number of days. This condition is important because many buyers depend on a mortgage to buy the property.