Clauses

The following clauses are intended to be used for information purposes only. You are advised to seek legal advice prior using any clause. 

Royal LePage Coast Capital Realty does not warrant or advise using these clauses. 

They are for the sole consideration of Royal LePage Coast Capital Realtors as educational reference only. 

• Locking in a Seller when you're the backup offer: The Seller hereby agrees to not renegotiate or amend the previously accepted Contract of Purchase and Sale in any manner whatsoever, including but not limited to: amending subject conditions, terms, dates, and/or price.

• Getting rid of junk: The Seller warrants that they will remove all refuse and chattels from the Property (other than included items set forth in clause 7) before the Possession Date and they will leave the Property in clean condition and the Seller will indemnify the Buyer for any costs that result from breach of the foregoing provision.

• Buyer’s approval of title search to be incorporated in to contract: (if easements will stay on title): Subject to the Buyer on or before date obtaining and approving a copy of the title search results against the presence of any change or other feature, whether registered or pending, that reasonably may adversely affect the property’s use or value. This condition is for the sole benefit the Buyer. .. If this condition is waived or declared fulfilled, the copy of the title search result will be incorporated into and form part of this contract and the Buyer acknowledges and accepts, despite any other provision in this contract, that upon completion the Buyer will receive title containing any non-financial charge set out in the copy of the title search results that is attached to and forms part of this contract. - RECBC Legal Update 2019

• Grow Ops: The Seller represents and warrants that, during the time the Seller has owned the property, the property and the buildings and structures thereon have not been used for the illegal growth of any substances or growth or manufacture of any illegal substances. This warranty shall survive and not merge on the completion of this transaction. Further, the Seller represents that, to the best of the Seller’s knowledge and belief, the property and the buildings and structures thereon have never been used for the illegal growth of any substance, or growth or manufacture of illegal substances. - compliments: Mullin DeMeo

• Avoid opening a contract up: The Proposed Amendment is not intended to be a counter-offer or a repudiation of the Contract. Unilateral execution of this Amendment by either the Sellers or the Buyers hereto shall not constitute a counter-offer and shall not, until executed by the Sellers and the Buyers, have any effect on the underlying Contract. The Proposed Amendment will be effective if and when this Amendment is executed by the Sellers and Buyers. Upon such execution, the Sellers and the Buyers thereby ratify and confirm that all other covenants, terms and conditions of the Contract remain the same, save as amended by the Proposed Amendment and that time shall be of the essence. The Sellers and Buyers specifically confirm that this Amendment is executed under Seal.

• TAXES:   Property Purchase Tax clause now incorporated into section  11A in the CPS

• GST: With regard to the applicability of GST to this purchase and sale of the Property: (select applicable provision below) (a) the Seller represents and warrants that this sale of the Property is exempt from GST _____________________________(initials of Buyer and Seller); or (b) the Seller represents and warrants that this sale of the Property is subject to GST and the parties agree that the Purchase Price includes any applicable GST and the Seller is responsible to remit the GST to CRA ________________________(initials of Buyer and Seller); or (c) the Seller represents and warrants that this sale of the Property is subject to GST and the parties agree that the Purchase Price does not include any applicable GST which will be payable by the Buyer______________________(initials of Buyer and Seller); or d) the Seller represents and warrants that this sale of the Property is subject to GST and the parties agree that the Purchase Price includes net GST only and the Buyer confirms that they are eligible for the New Housing Rebate, and the Buyer will assign such Rebate, if applicable, to the Seller, and in the event they are not eligible for such Rebate, then the Purchase Price will be increased by an amount equal to such Rebate______________________(initials of Buyer and Seller). The Seller agrees that he/she will execute a GST Certificate certifying the foregoing as may be required by the Buyer’s lawyer and acknowledges that the Buyer is relying on such Certificate in connection with this purchase and sale of the Property.”

                  See Section 11B on the Contract of Purchase and Sale to see if the above clause is necessary. 

• Non Resident clause in Foreclosure contracts: Notwithstanding anything to the contrary in this Agreement or any Addendums or Schedules thereto, including without limiting the generality of the foregoing, any Schedule “A” appended to this contract by a creditor acting pursuant to an order for conduct of sale for the Property, it is a fundamental term of this Agreement that the Seller and, if applicable, the creditor acting pursuant to an order for conduct of sale in this transaction (both hereinafter called the “Seller”) shall either: a. provide a certificate confirming upon completion that the registered owners on title of the Property are not non-residents of Canada within the meaning of the Income Tax Act (Canada); or b. the Seller’s lawyer shall hold back upon completion of the sale 25% of the gross Purchase Price in trust until the Seller’s lawyers has forwarded to the Buyer’s lawyer, and the Buyer’s lawyer has confirmed receipt of either: (1) a clearance certificate as required under section 116 of the Income Tax Act (Canada); or (2) written confirmation from Canada Revenue Agency that section 116 does not apply to this transaction. The Buyer and the Seller acknowledge and agree that when the provisions of this paragraph conflict with anything in this Agreement, or any Addendums and Schedules thereto, then the provisions of this paragraph shall apply. Non Resident clause in non-foreclosure contracts: Notwithstanding anything to the contrary in this Agreement it is a fundamental term of this Agreement that if the Seller is a resident of Canada for tax purposes within the meaning of the Income Tax Act (Canada), then Seller shall provide a certificate satisfactory to the Buyer’s lawyer confirming that upon completion the registered owner(s) on the title of the Property are not non-residents of Canada within the meaning of the Income Tax Act (Canada) - compliments: Mullin DeMeo

• Buying from an Estate Clause: Subject to the Buyer receiving the following by (date): (1) copy of a grant of probate or letters of administration allowing the property to be sold; and (2) assurance that no person has either made a claim against the property, or communicated the intention to make a claim against the property, under the Wills Variation Act. This condition is for the sole benefit of the Buyer.

• Subject to Probate: If the time for removal or waiver of the above subject to condition regarding probate expires then the buyer may extend the time for removal of such condition by additional 60 days by notice in writing on or before the original date or removal of such subject condition. In such event the completion date (possession date and adjustment date to follow one day after completion) will be extended to 10 days after the seller removes or waives such subject conditions.

• Properties without a Strata Council Clause: The Buyer acknowledges that the strata corporation for the Property may not be operating in compliance with the Strata Property Act.  Among other things, there may be no strata council, no strata meetings, no budget, no strata fees being collected, and no operating or contingency reserve funds or financial records.  The Buyer acknowledges that the Buyer has be advised to obtain legal advice regarding the non-compliance of the strata corporation before signing this contract. 

• Strata Duplex: The Buyer acknowledges that the strata corporation for the Property may not be operating in compliance with the Strata Property Act.  Among other things, there may be no strata council, no strata meetings, no budget, no strata fees being collected, and no operating or contingency reserve funds or financial records.  The Buyer acknowledges that the Buyer has be advised to obtain legal advice regarding the non-compliance of the strata corporation before signing this contract. 

• Foreshore: The Seller shall assign and the Buyer assume all right, title and interest to the License of Occupation [or Permission] #____________with the Province of British Columbia, a true copy of which is attached to this Contract, for the use of the Dock, foreshore (or other use) adjoining the property. The Seller represents and warrants that the License of Occupation [or Permission] #____________ is in good standing, and subject to the approval of the Province of British Columbia, the Seller is legally entitled to assign it to the Buyer. - compliments: Mullin DeMeo

• Oil Tanks: 1. It is a fundamental term of this Agreement that the Seller shall ensure that the underground oil storage tank(s) identified in the oil tank scan report dated __________ located on the Property shall be removed by a qualified tank removal contractor, the surrounding soil remediated in accordance with any provincial or local government laws, including the British Columbia Fire Code 2012, where applicable, and the Property restored to its original condition. The Seller shall be responsible for all costs associated with the compliance, including any additional costs for environmental cleanup and restoration of the Property to its original condition. The Seller shall complete the foregoing remedial work on or before _______________. 2. The Seller shall provide to the Buyer on or before _________ written confirmation from the oil tank removal contractor and relevant Provincial or local government authority that the completed remediation complied with the Provincial or local government law, as the case may be. 3. The Seller shall provide to the Buyer on or before ____________ written confirmation from a qualified environmental consultant that the soil remediation and environmental cleanup has been completed to a professional standard and in compliance with any provincial or local government laws, including the British Columbia Fire Code 2012, where applicable. 4. Subject to the Buyer’s satisfaction with the written confirmations received pursuant to paragraphs 2 and 3 above on or before ___________. This condition is for the sole benefit of the Buyer. 5. Subject to the Seller confirming that the cost of the oil tank removal and property remediation is not in excess of $____________ on or before ___________. This condition is for the sole benefit of the Seller. - compliments: Mullin DeMeo

• Strata Insurance Clause: This offer is subject to (A) the Buyer reviewing and approving the terms and rates of the strata corporation’s insurance, including the premium amounts, deductible amounts, and coverage limits thereunder and the date of expiration of such policy or policies, and (B) the Buyer confirming the Buyer’s ability to obtain personal owner’s insurance on terms satisfactory to the Buyer, including coverage for any owner’s portions of deductibles payable under the strata corporation’s insurance, on or before ________________. These conditions are for the sole benefit of the Buyer. Immediately upon execution and delivery of this Contact of Purchase and Sale by all parties, the Seller will obtain copies of the strata corporation insurance policy or policies, and the seller will immediately, upon receipt, deliver the document(s) or cause the document(s) to be delivered to the Buyer or the Buyer’s agent. - compliments: BCREA

• Strata Insurance Clause II: It is a fundamental term of this contract that, on or before the Completion Date, and at the Buyer’s request, the Seller shall cause the Strata corporation for the Property to provide to the Buyer or his/her lawyer a valid insurance binder indicating that the Strata Corporation has a valid and enforceable policy of insurance in accordance with the requirements of the Stata Property Act. In the event that the Seller is not able to cause the Strata Corporation to deliver to the Buyer or his/her lawyer such valid insurance binder on or before the Completion Date, the Buyer may terminate this contract in the Buyer’s sole and absolute discretion, and neither party shall thereafter have any further obligations to each other. - compliments: Mullin DeMeo

• Notice to End Tenancy: If the Seller has received from the Buyer a request to give a notice to end tenancy in accordance with section 49 of the Residential Tenancy Act, the Seller will promptly give a notice to end the tenancy in accordance with the provisions of the Residential Tenancy Act to any tenants of the Property.

• RENT BACK - SELLER TO REMAIN AS TENANT:  SELLER RENT BACK - The Seller will be renting back the property for a duration of up to ___ months after the completion date at $__________ /month. The Seller agrees to give the Buyer 45 days written notice prior to vacating the property. A rental agreement will be completed and signed by both parties prior to completion. During the ___ months rental period, the Seller will be responsible for all utilities as well as any maintenance related expenses to the home (internet, cable, heat, electricity, gardening, etc).

This clause can be very problematic in terms of new tenancy laws. Be very careful to fully understand the tenancy laws   before agreeing to any rent back clauses. 

• Additional Tenancy Clause: The buyer acknowledges that a tenant has the right to dispute the notice. If the tenant disputes the notice the buyer acknowledges and agrees to assume the tenancy and the sale will complete as contracted.

• When the agent is buying a property for themselves:  The Buyer, who is a real estate agent acting on their own behalf in this transaction, agrees to forgo their buyers agent commission of _______. The buyers agent commission will be retained by the seller.