What is an Agreement of Purchase and Sale?


Most folks looking for a real estate lawyer near them will often ask, what is an agreement of purchase and sale? I blogged about this in my previous post entitled, what is an agreement of purchase and sale and I focused on page one of the agreement.

In this post we will talk about page 2.


A chattel is movable personal property. For example, a chair.


A fixture is something that is attached, affixed “stuck on”. For example, the island in the kitchen.

Now, over the years courts have had to step in to determine the difference between the two. However, that’s not a discussion I will be having here.

When drafting the Agreement of Purchase and Sale parties, should clearly identify what will be included and what will be excluded. It is commonly held, that chattels that are movable property will be taken by the seller. However, also keep in mind that when the purchaser came to view the property, perhaps they noticed nice new kitchen appliances. Perhaps, the buyer just assumes they will come with the home. Unbeknownst, to the buyer that the seller recently purchased the kitchen appliances with the intention to take them.

Parties should be cautious, especially the buyer when dealing with the hustle and bustle of open houses, quick in and outs from various homes over weeks and sometimes months.

RENTAL ITEMS: This stipulates there is equipment that is rented and that the buyer will assume the rental contract. For example, a water heater.

HST Is the Harmonized Sales Tax payable. Generally, on the resale of a home it will not. It will be payable on the purchase of a new home. However, a claim can be made for a rebate. One should also keep in mind that

If tax is payable its important to clarify the purchase price.


The buyer’s real estate lawyer will perform a Title Search to ensure that the property does not have any title defects, existing liens, existing work orders and that there will not be any issue obtaining insurance. You can click here to learn more about what is a title search?

Generally, the buyers lawyer should be provided with enough time to ensure that title is free and or to report any title defects. This time period is referred to as the Requisition Date. It’s important to ensure that if the Agreement of Purchase and Sale has conditions such, as conditional on financing that there is sufficient time.

In the event there is no Requisition Date, then according to Ontario law, there will be a 30 day period from the date of the contract.


In the event the buyer is thinking about doing something different with the property. For example, turning it into an office. This clause protects the seller, basically that they have no issue with whatever it is the buyer is planning on doing with the property. However, it is important that the buyers lawyer look into whether or not the property can be used for that purpose. For example, if the buyer is thinking of turning the home into an office do local zoning laws permit it? In that situation, there should be conditional clauses in the agreement of purchase and sale.


The seller has the obligation to provide the property to the buyer with good title. In other free from any types of liens, claims or mortgages on the property. For example, often people looking to sell their home, get a sudden call from their real estate lawyer advising them that there is a something on title. At times, this could have been a court order from a lawsuit they may have been involved in. The seller’s then must move quickly to remove this from title.

However, certain exemptions exist such as municipality zoning and or by-laws. Also, for the purposes of utility companies.


This is a clause pertaining to the lawyers use of electronic document transferring. Lawyers are bound to hold all items from one another in trust until the electronic document transference has been adequately satisfied. In other words, the sellers lawyer on receiving funds from the buyers lawyer will hold the funds in trust. Until, such time as the electronic transference has been completed.


This provision states, that the seller does not have to provide anything else they don’t have. Also, that the sellers lawyer will undertake (promise) to discharge (pay off) any existing mortgages on the property and provide proof of same. Thus, permitting the buyers lawyer to register the new mortgage after the closing within a reasonable period of time.


If you are buying a home or selling contact our office to speak with a real estate lawyer in Burlington.
I provide legal services in Burlington, Milton, Hamilton and Oakville.

My address is 901 Guelph Line, Burlington.
You can also call or text at 416-505-4901 OR call Toll Free: 1 (800) 939-9211

Rehan Khalil
call or sms me (416) 505-4901
anytime for a free consultation