When you’re buying or selling property in Ontario, one document stands at the centre of it all: the purchase of sale agreement.
This written contract outlines everything from the purchase price to important conditions, timelines, and payment terms. Whether you’re dealing with residential or commercial property, this agreement shapes the entire transaction—and sets the stage for a smooth or stressful experience.
Here’s what you need to know before you sign.
What Is a Purchase of Sale Agreement?
A purchase of sale agreement (sometimes called an Agreement of Purchase and Sale or APS) is the legally binding contract that sets out the terms of a property transaction between a buyer and a seller. It becomes effective once both parties have signed it and is enforceable under Ontario law.
This document includes:
- The purchase price
- The legal description of the property
- Conditions of the sale (e.g., financing, home inspection)
- Closing date
- Amount of the deposit
- List of any included items (like appliances)
- Obligations for both parties before closing
Even though real estate agents often use standard forms, these documents still require careful legal review—because once it’s signed, it becomes the roadmap for your entire deal.
Why Legal Review Is Important
It’s easy to assume that an offer is “standard,” but real estate contracts are full of details that can impact your rights and responsibilities. At Boardwalk Law, we review the purchase of sale agreement before our clients sign or submit it. If you’re the buyer, we ensure the language:
✔ Protects your deposit
✔ Allows you to walk away if conditions aren’t met
✔ Gives you time to secure financing or complete an inspection
If you’re the seller, we help you:
✔ Set realistic timelines
✔ Avoid legal exposure if the buyer backs out
✔ Ensure terms align with your sale goals
We can also make amendments to strengthen your position—before it becomes legally binding.
Common Conditions to Watch For
Here are some of the most common conditions we recommend including in a purchase of sale agreement (when applicable):
- Financing condition: Gives the buyer time to secure mortgage approval
- Home inspection condition: Allows for an inspection before the sale is final
- Sale of buyer’s property condition: Lets the buyer sell their own home first
- Zoning or use review: Especially important for commercial properties
- Lawyer’s review condition: Gives either party time for legal input
Without conditions like these, you may be locked into a deal that no longer makes financial or legal sense.
Timing and Closing Dates
Many deals fall apart or become complicated due to unclear timelines. Your purchase of sale agreement should set:
- A firm closing date when ownership officially transfers
- Deadlines for waiving conditions
- Dates for the deposit and document exchanges
We help ensure all timing makes sense for your situation—and includes enough flexibility to avoid unnecessary stress.
Bottom Line: Don’t Sign Without Legal Advice
Whether you’re buying a home, leasing a commercial space with intent to purchase, or investing in income property, the purchase of sale agreement is one of the most important documents you’ll sign.
At Boardwalk Law, we help clients across Ontario protect their interests, avoid common pitfalls, and move forward with confidence.
Have questions about your agreement?
Contact Samantha Machado, Associate Lawyer at Boardwalk Law.
📍 Offices in Brampton & Georgetown
📞 905-798-5770
📧 [email protected]
