Humber Real Estate - Course 4, Module 9: Completing Agreements of Purchase and Sale for Office and Retail Properties questions and answers graded A+

If after reviewing a commercial agreement of purchase and sale, your client still has areas they don't understand, what should you do? - Answer-If you are unable to address these areas satisfactorily, you may need to conduct a further review with a lawyer or other third-party experts. Note: You may be asked to provide the lawyer (or third-party experts) with a verbal or written summary of the issue to address separately with the client. For irrevocability periods on Agreements of Purchase and Sale for commercial properties, you would typically adhere to what timeframe? - Answer-Standard business hours rather than setting the time period over weekends or evenings. How are deposits in commercial deals handled differently than residential? - Answer-Due to the high value of the deposit, there may be multiple deposits or stages of deposits. Further deposits can be required after conditions have been satisfied (inspections, etc.) or following another specified schedule. A buyer may require these stages in order to arrange appropriate funding. If the deposit will be handled in stages, how would you document the deposit on the agreement of purchase and sale? - Answer-By using the wording "as otherwise described", and provide the details of multiple deposits and related timing/conditions in Schedule A. In commercial transactions, how are deposits usually paid? - Answer-Via certified cheque or e-transfer in trust to the listing brokerage or to the seller's lawyer. The buyer may request the deposit be placed into an _____________________. This requirement would also be specified in the agreement. - Answer-Interest-bearing trust accountWhat are some chattels unique to commercial deals? - Answer-- Cleaning equipment - Product displays or showcases - Garment racks - Shelving units - Flower planters - Workstations and chairs - Filing cabinets What are some fixtures unique to commercial deals? - Answer-- Trade fixtures - Built-in cabinets and shelving - Industry-specific equipment, e.g. bartending taps, specialty ovens, etc. Rental items also need to be identified in the Agreement of Purchase and Sale. Any contracts or leases for rental items that will be ______________________ need to be included in the agreement, with the terms explained clearly. - Answer-Assumed by the buyer In most situations, the seller of a commercial property is responsible for remitting ______. However, in special circumstances, the seller is not required to collect it provided certain __________________ are met. - Answer-HST, conditions