Bourne, Jenkins & Mulligan

July 15, 2003
Standard form wording in agreements of purchase and sale

by Amy MacMillan

The majority of residential real estate transactions in Ontario are governed by an Agreement of Purchase and Sale that is prepared on the standard Ontario Real Estate Association form. Whether working with a real estate agent or acting for yourself in a private deal, it is important to be aware of the dangers of simply filling in the blanks on a standard printed form.

As a purchaser, you are in control of the deal when preparing an Agreement (the “offer”). It is in no way necessary to be confined by the standard, pre-printed form if it is inconsistent with your wishes. You should read the pre-printed portions very carefully and ask your agent or lawyer to explain anything you don’t understand. Anything not matching your intentions should be deleted. As a seller, you should go through the same process and make any changes that you may require, prior to submitting the Agreement back to the purchaser for review. Remember, nothing that is discussed during the negotiations is binding unless it is specifically included in the signed Agreement.

If there is a conflict between anything that is added to the form and the standard pre-set portion of the form, the pre-set portion of the OREA form states that the added words will govern. This ensures that the Agreement truly reflects the parties’ understanding of their bargain.

If you are planning to purchase or sell any real property, be assured that a party to an Agreement has every right to request that the wording of the standard form of Agreement be changed prior to signing. Whether purchasing or selling, with an agent or privately, it is always prudent to review your Agreement with a lawyer prior to signing in order to ensure that you are not committing yourself to an unfair or inaccurate Agreement.

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