Whether you are buying or selling, any type of real estate transaction results in a lot of paperwork. And we mean, a lot. As agents, we love showing houses and helping our clients find their dream property or get the best results out of their home sale, but the reality is that most of our work is putting pen to paper and dealing with a mountain of real estate forms.
Ontario real estate forms are extensive, there seems to be a form or a contract for everything. This makes sense when you consider that buying or selling your house is likely the most significant transaction of your life.
In this post, we’re going to cover some of the most common real estate forms in Ontario, what they mean, and why you need them. Let’s take a closer look.
Agreement of Purchase and Sale
Known as Form 100, the Agreement of Purchase and Sale dictates the terms and conditions of a residential property sale between a buyer and a seller. This form is what the buyer will use to indicate their interest in a property and will outline the terms of their offer. Some of the terms indicated in the Form 100 Agreement of Purchase and Sale include:
- Deposit amount
- Sales offer price
- Conditions and terms (ie., conditional upon a home inspection, sale of property, etc.)
- Inclusions and exclusions (including appliances and chattels such as furniture, window coverings, etc.)
- Closing date
If you are offering to purchase a commercial property, you would need the OREA Form 500 Agreement of Purchase and Sale.
The Ontario Real Estate Association (OREA) Agreement of Purchase and Sale is negotiated between the buyer and seller. Once the Ontario real estate offer form is agreed upon by both parties, the form is notarized and becomes a binding contract.
An OREA Agreement of Purchase and Sale must also include an irrevocable period, which is the period of time that the contract can no longer be revoked.
Before preparing one of these contracts with your agent, read our guide to making an offer on a house here.
Letter of Intent
Unlike an Agreement of Purchase and Sale, a letter of intent is often used in the preliminary stages of making an offer on a property. This is a non-binding contract where the buyer can outline the terms of their offer and negotiate with the seller without being held liable if the deal falls through.
The listing agreement is a real estate contract form between the seller and their real estate agent. OREA classifies this as a Form 200 Listing Agreement. The purpose of this real estate legal contract is to essentially grant permission to the real estate agent and their respective brokerage to work on the seller’s behalf and find a buyer for the property.
Additionally, the listing agreement is where the terms and expectations of the employment contract are defined. For example, it will outline the duties and responsibilities of the agent, their commission fee once the property is sold, the listing price and all the inclusions, the contract expiry date, and more.
Buyer Representation Agreement
Although not a required real estate form in Ontario, some agents may ask you to sign a Buyer Representation Agreement before taking you on as a client when you are planning to buy a home.
This type of real estate form dictates the expectations and deliverables between the buyer and their agent. It is a way to define the relationship and ensure that there is a level of accountability between both parties. These contracts are not a requirement, but many agents choose to use them as a means to make their employment relationship official.
Thinking about buying a home in Hamilton? Learn more about Hamilton houses for sale right here.
Agreement to Lease
Also known as the Form 400, an Agreement to Lease is a standard legal real estate contract in Ontario between a landlord and a tenant. The lease outlines the terms and conditions of the rental including the monthly rental fee, inclusions such as utilities, and the rental unit rules (for example, no smoking). Rental agreements are typically valid for 12 months and can be renewed once the lease is expired.
The landlord can also stipulate the terms and conditions if a tenant wants to break the lease early, which often results in enacting a lease assignment agreement.
Standard Appraisal Report
This report is often provided to buyers to show a neutral outlook of a home’s market value based on factors such as condition, location, size, and more. An appraisal is different from a home inspection, which assesses the home’s condition and does not comment on its value.
The Standard Home Appraisal Report can be used by sellers and buyers in their negotiations and can help buyers with securing mortgage financing.
Working with a trusted Hamilton real estate brokerage is your best bet at making sure your paperwork is correct. Michael St. Jean Realty can keep you covered. Learn more here.
When a buyer enters into an agreement with a mortgage lender, they are required to sign a Mortgage Agreement. This is a binding contract that essentially creates the legal claim on your home and outlines the terms and obligations of your mortgage.
Most Mortgage Agreements stipulate that the borrower agrees to pay their fees on time, keep the property in good condition, while also paying property taxes and insurance. In return, the lender agrees to discharge the mortgage (with a Discharge of Mortgage form) when the loan is paid back in full.
Statement of Real Estate Rentals
The T776 form from the government is also known as the Statement of Real Estate Rentals. This is a real estate tax form used by landlords to report their taxable earnings and expenses from an income property.