The legally binding contract between a buyer and seller that outlines all the terms of a real estate transaction. It covers the price, deposit, closing date, conditions, and what's included in the sale. In Ontario, the standard form is produced by OREA (Ontario Real Estate Association) and is the backbone of every deal.
Why It Matters
This is the single most important document in your home purchase. Every detail matters -- from the closing date to whether the dishwasher stays. Once both parties sign and conditions are waived, you're legally committed to the transaction.
Real-World Example
You find a 2-bed condo in Liberty Village listed at $649,000. Your agent prepares an APS offering $660,000 with a $25,000 deposit, a closing date 60 days out, and conditions for financing and a status certificate review. The seller signs back at $670,000 with a 45-day close. You accept the counteroffer, your conditions are met within five business days, and you waive them -- the deal is now firm and legally binding.
Ontario & GTA Context
Ontario uses the standard OREA Form 100 for freehold purchases and Form 101 for condos. Under TRESA, your agent must explain every clause before you sign. The APS must include FINTRAC compliance information, and any amendments after signing require a separate Amendment to Agreement form (OREA Form 120).
How It Works in Practice
Your agent drafts the APS, but your real estate lawyer should review it before you sign, especially the schedule clauses. Pay close attention to included chattels, the completion date, and any special conditions -- these are the details that prevent disputes at closing.
Common Questions
Can I change the Agreement of Purchase and Sale after signing?▾
What happens if the seller backs out of the APS?▾
Is a verbal agreement to buy a house binding in Ontario?▾
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