An agreement of purchase and sale is one of the most important documents you’ll deal with when selling a home in Ontario. Once it’s accepted, it sets out what the buyer and seller have agreed to, from the purchase price to the closing date. When any conditions are satisfied or waived, the deal is firm.
For a homeowner who needs to sell because of debt, an inherited property, major repairs, or a sudden life change, the paperwork can add to an already stressful situation. Understanding what you’re signing can help you spot questions that need to be answered before the sale moves ahead.
What is an Agreement of Purchase and Sale?
So, what is an agreement of purchase and sale?
It’s a written contract between a property buyer and seller. It records the terms of the proposed transaction and, once accepted, creates legal obligations for both sides, subject to any conditions written into the agreement.
The document identifies the property, states the price the buyer is offering, and sets out details such as the deposit and closing date. It can also contain conditions that must be satisfied or waived before the deal becomes firm. Most Ontario resale transactions use the standard form published by the Ontario Real Estate Association (OREA), Form 100 for freehold homes and Form 101 for condos, with extra terms added in a schedule. Every offer also includes an irrevocable date and time, which is your deadline to accept, decline, or counter before the offer expires.
Those details matter. A homeowner dealing with financial pressure may care more about a reliable closing date than spending months preparing a house for the traditional market.
If you have a property that needs significant work, see we buy houses in any condition to learn how Lewis Brothers Properties works with Ontario homeowners who would rather sell as-is.
What Does an Agreement of Sale and Purchase Cover?
An agreement of sale and purchase records the terms the buyer and seller have agreed to. The exact details will depend on the property and the transaction.
The purchase price and deposit are central parts of the agreement. The deposit is usually delivered within 24 hours of acceptance and held in trust, typically by the listing brokerage or, in a private sale, a lawyer. It’s then credited toward the price when the sale closes. It should also identify the buyer and seller, describe the property, and state when ownership is expected to transfer.
Conditions can be another important part of the contract. For example, an offer may be conditional on the buyer arranging financing, completing a home inspection, or reviewing certain documents. The agreement should state the deadline for dealing with those conditions.
The contract may also address items that are included or excluded from the sale. In Ontario, fixtures such as built-in appliances, hard-wired light fixtures, and the furnace generally stay with the house. Chattels, the things you can pick up and move like a fridge or washer, need to be listed if they’re part of the deal. Rental equipment is another common surprise. Plenty of Ontario homes have a rented hot water tank or furnace, and the agreement should say whether the buyer is taking over that contract. Fixtures, appliances, or other property can become a source of disagreement when expectations aren’t written down clearly.
Before signing, read the entire agreement and ask for legal advice if you don’t understand a clause or its consequences. There’s no cooling-off period for resale homes in Ontario. The 10-day cancellation window some people have heard about applies to new condos bought from a builder, so once you accept an offer on your house, you’re bound by it.
Components of an Agreement of Purchase and Sale in Ontario
An agreement of purchase and sale that Ontario homeowners receive can contain a lot of information, but several sections deserve close attention.
Start with the purchase price, deposit, and closing date. Check that the names of the parties and property details are accurate. If the house is a matrimonial home, your spouse may need to consent to the sale even if they aren’t on title. If you’re selling an inherited property, the estate trustee signs, and the buyer’s lawyer may ask for a Certificate of Appointment (probate) before closing. Then review the conditions, included items, excluded items, and any additional clauses added to the offer.
Pay close attention to deadlines. A financing or inspection condition may only apply for a set period, and other obligations can have their own dates.
Standard Ontario agreements state that time is of the essence, so those dates are strict. If a buyer’s condition isn’t fulfilled or waived in writing by its deadline, the agreement usually becomes void and the deposit goes back to the buyer. The requisition date is another one to watch. It gives the buyer’s lawyer a window to search title and raise problems, such as an old lien or unpaid property taxes, that need to be cleared before closing.
The closing date also needs to work for your circumstances. If you’re carrying mortgage payments, property taxes, insurance, or other costs, an unnecessarily long closing period may put more pressure on your finances.
Homeowners who need a shorter route to a sale can read more about how to sell my house fast. Don and Rick Lewis deal directly with sellers, without the need to prepare the property for repeated showings.
How Long Does a Purchase Sale Agreement in Ontario Take to Finalize?
There’s no single timeline for finalizing a purchase sale agreement in Ontario.
The buyer may give the seller a specific amount of time to accept, reject, or respond to an offer. If the seller changes the terms, the parties may go back and forth until they agree or decide not to proceed.
Conditional offers can take longer to become firm because the buyer or seller may need time to satisfy the conditions. Financing, inspections, and document reviews can all affect timing.
Closing happens later, on the date stated in the agreement. That gives the parties and their lawyers time to complete the legal and financial work required to transfer ownership. On closing day, the buyer’s lawyer releases the funds, the transfer is registered electronically, and the keys change hands.
A sale to a cash buyer usually moves faster. There’s no financing condition to wait on, and the closing date can be set around what you need.
For someone already overwhelmed by repairs, bills, or an unwanted property, a complicated sale may be the last thing they want. Lewis Brothers Properties gives homeowners another way to sell, with Don and Rick personally handling the conversation and properties purchased as-is.
An agreement of purchase and sale carries real legal and financial consequences, so make sure you understand the price, conditions, dates, and obligations before signing. If your priority is a straightforward sale without repairs, cleaning, or showings, talk with Don or Rick about your property and the timing you need.
