Humber Real Estate - Course 2, Module 16, Welcome to Completing a Residential Agreement of Purchase and Sale Including Terms for a Buyer of Seller Rated A

Humber Real Estate - Course 2, Module 16, Welcome to Completing a Residential Agreement of Purchase and Sale Including Terms for a Buyer of Seller Rated A What 4 steps should you use to prepare an Offer Plan? Step 1. Summarize the offer mathematics (use the SAD formula to calculate the balance due on closing) Step 2. Identify the required dates (offer date, irrevocable date, requisition date, closing date) Step 3. List the required information to be included on a schedule (Schedule A is part of every offer) Step 4. Identify any additional information required for the offer (Chattels included, fixtures excluded, easements, rental items, HST included or in addition to) What information is included in Schedule A (a part of every offer)? - The balance due on completion - Terms and conditions such as financing or a property inspection What does the Insurance clause warranty in an agreement of purchase and sale (written by OREA)? That the seller will maintain the property and keep fire insurance on the property until closing. Note: If you don't use OREA forms which has this warranty pre-printed, this isn't *necessarily* warranted / required by the seller. Where is the details 'Buyer agrees to pay balance' clause written by the salesperson? Schedule A Also included here is all payment information including any additional deposit instalments and the terms. If spousal consent is required, would the spouse sign anywhere on the Acknowledgement clause? No, it's not required. There is a spot, however, under 'Successors and Assigns' clause where spousal consent is required. If only one buyer is available to sign the acknowledgement, is it possible for them to sign without the other buyer? No. Both must sign. The initial _________ received from the buyer is identified on the first page of an agreement of purchase and sale. An subsequent ________ __________ are identified in Schedule A. Deposit, deposit provisions When are supplemental deposits common? In transactions where the buyer has investments that are not readily convertible to cash on the signing date. A supplemental deposit may also be paid upon notification or removal of a condition inserted in the offer. To do this, you will need to add a clause to the schedule detailing what information? - The amount of the deposit - How it will be paid - The condition Where is it written in an agreement of purchase and sale that a deposit will be held in an interest-generating account? In an attached schedule. Interest on a deposit is separate from the transaction and does not affect the ___________ _______ _____ _________. Balance due on closing If the deposit is placed in an interest-bearing security, what type of interest-bearing security can the deposit holder use? An interest bearing investment, such as a GIC Who is responsible for the property on the day of closing? The buyer(s) Warrant also means what? Guarantee If there is a situation where the seller may not be comfortable making absolute assurance of a fact, the wording of the clause could include the phrase "__________________________________". To the best of the seller's knowledge. What is a 'Direction / Consent Clause'? A clause giving authority or instruction for a party to take action. A covenant is a promise by one party to another and in real estate terms can either be ___________ or ____________. Permissive, restrictive What 2 types of conditions are used in agreements of purchase and sale? - Condition precedents are most commonly used and can be waived - Conditions subsequent are self-fulfilling and tend to be used in commercial real estate For any contract assumed by a buyer, what should a seller provide? - Proof that the agreement is in good standing - That the seller has made all payments owing under the agreement to the date of closing - That the agreement itself can be assumed by the buyer after closing at no additional cost or penalty How many days are typically between the title search and closing dates? 14-30 days