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    The Importance of a Properly Drafted Agreement of Purchase and Sale

    It is Spring in Ottawa (despite the weather) and that is when the market heats up. Often, desirable properties will come onto the market and Buyers will become so eager to purchase that property, that they do not protect themselves with proper conditions in the Agreement of Purchase and Sale.

    The Agreement of Purchase and Sale is the most important document in the process. It is the root for determining to what the Buyer is entitled. When an Agreement is drafted poorly, a Buyer may lose rights. The concept is called “Contra proferentem“. This legal concept basically states that in the situation where an ambiguity arises as to the meaning of words in a contract, the determination will be made against the writer of the contract. So when a Buyer’s Agent drafts an unclear Agreement, the Seller can benefit.

    There are many people who would like to purchase a house from an individual who is selling privately. The value of a real estate agent comes with their experience in drafting Agreements of Purchase and Sale. When a Buyer attempts to draft an Agreement without assistance from an Agent, that Buyer may not know what conditions are appropriate in the circumstances, how to draft conditions appropriately, and may be limiting the rights that they are entitled to. If you are going to purchase by private sale, it may be beneficial to seek legal assistance drafting the Agreement of Purchase and Sale. You will typically incur additional legal fees for the time that it takes for the lawyer to draft it on your behalf.

    Purchasing a home is a huge investment. If you are going to be buying a home, it is important to surround yourself with people who you trust to be looking out for your best interests, and who are experienced with the various facets of the home buying process.

    One of these individuals is a real estate agent. Other individuals who should be involved are your home inspector, your financial agent (broker, banker), an insurance agent, and possibly an accountant (if you are concerned that you may be stretching your budget or if you are buying from a condominium). Lastly, but importantly, hiring a quality lawyer is important to protect your investment. A quality lawyer will review title to the property thoroughly, and ensure that you receive good and marketable title. A quality lawyer will meet with you to sign documents and explain the meaning of each document prior to your signing.

    If you are planning to purchase a home and would like the writer to assist you with the process, which may include the preparation of an Agreement of Purchase and Sale for a private sale, please contact him by email at [email protected] or call 613-563-6692.

    The content on this website is for information purposes only and is not legal advice, which cannot be given without knowing the facts of a specific situation. You should never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. The use of the website does not establish a solicitor and client relationship. If you would like to discuss your specific legal needs with us, please contact our office at 613-563-7544 and one of our lawyers will be happy to assist you.

    Posted By: Noah Potechin of Merovitz Potechin LLP

    Associate

    Noah Potechin joined Merovitz Potechin LLP in 2013 as an articling student and was called to the Ontario Bar in June 2014. As an articling student, Noah was exposed to a wide range of legal issues, such as residential and commercial real estate, leasing, business law, estate litigation and construction lien work. He has now begun practicing law full time at Merovitz Potechin LLP, focusing primarily on residential real estate and mortgage enforcement.  Noah also practices in the area of private mortgage financing, title corrections, commercial real estate transactions, residential leasing, development law and the preparation and registration of Notices of Lease.

    When not spending time with his young family or exploring world cuisine with his wife, Noah can be found at the top of mountains eager to snowboard or in his dojo, teaching the martial art Aikido.

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