If you`re planning to purchase a new home in Ontario, it`s important to understand the agreement of purchase and sale that you`ll need to sign. The agreement outlines the terms of your purchase and protects both you and the builder. Here`s what you need to know about the new home agreement of purchase and sale in Ontario.

What is the agreement of purchase and sale?

The agreement of purchase and sale is the contract that outlines the terms of your purchase of a new home. It`s a legally binding document that includes details such as the purchase price, closing date, and any conditions that must be met before the sale can be completed.

In Ontario, the agreement is typically provided by the builder and is based on the agreement of purchase and sale template provided by the Ontario Real Estate Association.

What are the key terms of the agreement?

The agreement of purchase and sale includes several important terms that you should be aware of, including:

1. Purchase Price. This is the amount you`ll pay for the home, including any upgrades or extras you`ve requested.

2. Closing Date. This is the date on which you take possession of the home and the transfer of ownership is completed.

3. Deposit. This is the amount of money you`ll need to pay upfront to secure the purchase of the home. The deposit is typically held in trust by the builder until the sale is completed.

4. Tarion Warranty. In Ontario, new homes are covered by a warranty provided by Tarion. The agreement of purchase and sale will outline what is covered by the warranty and how it applies to your home.

5. Conditions. The agreement may include conditions that must be met before the sale can be completed, such as financing or the sale of your existing home.

What should you look out for in the agreement?

As with any legal document, it`s important to review the agreement of purchase and sale carefully before you sign it. Here are some things to consider:

1. Fees and charges. Make sure you understand all of the fees and charges that are included in the purchase price, such as development charges, levies, or utility fees.

2. Upgrades and extras. If you`ve requested any upgrades or extras, make sure they are clearly outlined in the agreement and that you understand how they will affect the purchase price.

3. Conditions. If the agreement includes any conditions that must be met before the sale can be completed, make sure you understand what they are and how they will be satisfied.

4. Tarion Warranty. Make sure you understand what is covered by the Tarion Warranty and how it applies to your home.

5. Closing Date. Make sure the closing date works for you and that you understand the consequences of delaying or extending the closing date.

In summary, the agreement of purchase and sale is a crucial document when buying a new home in Ontario. Make sure you understand all of the terms and conditions before you sign it, and seek legal advice if you have any questions or concerns. With a little bit of understanding, you can take the leap into home ownership with confidence.