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[BUYING AND SELLING REAL ESTATE IN CANADA - ONTARIO]
other forms of agreements and sales may be drafted. The standard forms may also be easily amended by adding a schedule with further clauses that are tailored to the particular transaction. The type of property being purchased also needs consideration such as freehold, leasehold or condominium. Great care must be undertaken when drafting the purchase agreement to accommodate local requirements in addition to the needs of the party the lawyer
reports. The buyer should ensure these are met prior to any waiver of conditions. Closing documents that will be required and if the seller or buyer are responsible for drafting, same is also listed in the purchase agreement. Since commercial properties come in a variety of forms such as vacant land, commercial, retail, industrial, mineral, agricultural property, tailoring the transaction to satisfy the buyer and seller, based on the type of business that was being conducted on the property or the buyer's intended use of the property, is an integral part of the purchase agreement. II. BROKERS AND AGENTS The Trust in Real Estate Services Act (TRESA), 2023 replaced the Real Estate and Business Brokers Act , 2002 which is consumer protection legislation governing the conduct of real estate agents and brokerages trading in real estate in the province of Ontario. It allows a seller, via their brokerage, to share the contents of competing offers if the seller directs it. A brokerage can now appoint a specific salesperson or broker to act solely for each client, instead of the entire brokerage representing everyone involved in the deal. Each designated representative owes full fiduciary duties to their own client, while the brokerage itself stays neutral. Whenever a registrant deals with a consumer who has no agent, they must give that person RECO’s mandatory “Self- Represented Party” information form before providing any assistance beyond basic facts. This single, province-wide form replaces the patchwork of previous brokerage-specific disclosures. In Ontario, a real estate agent will have obtained the minimum mandated education, have passed a set of tests required by OREA,
represents. Commercial
Many similar principles apply to a commercial real estate transaction as to a residential real estate transaction, although the dollar figures are usually larger. Additional considerations are required by the nature of the property, such as tenants and their leases, service contracts and employment contracts of salaried workers, future revenues from the property and future development plans for the property. The commercial buyer normally requests in the purchase agreement that pertinent due diligence materials be provided by the seller such as realty tax records and appeals, environmental reports, surveys, building engineering reports, copies of all tenant files including leases, maintenance contracts, development files, etc. so that it can evaluate the property, its financial feasibility and intended use. The commercial buyer may need to evaluate cost sharing arrangements, easements, zoning and environmental issues. The due diligence conditions and other conditions, if any, and timing of same are negotiated with the seller and must be detailed in the purchase agreement. The buyer's lender may also have due diligence requirements, such as an appraisal and satisfactory environment
ILN Real Estate Group – Buying and Selling Real Estate Series
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