How to Fill Out the OREA Form 100

Real estate transactions are riddled with complex processes and legal obligations. One of the most important documents in Ontario real estate transactions is the OREA Form 100. This document serves as a standard agreement for the purchase and sale of real estate. It's crucial to fill out this form correctly to ensure a smooth transaction and prevent potential legal issues. Let’s go through the process of filling out the OREA Form 100 and how a real estate lawyer in Ottawa can help you avoid some of the worst pitfalls of this critical process.

The OREA Form 100

The Ontario Real Estate Association (OREA) Form 100, also known as the Agreement of Purchase and Sale, is a legal document used in the province of Ontario, Canada, to finalize a real estate transaction. The form outlines the terms and conditions agreed upon by the buyer and seller, including the purchase price, closing date, and any contingencies or conditions.

Why is OREA Form 100 Important?

The OREA Form 100 is important to the real estate transaction process as it legally binds the buyer and seller to the agreed terms and conditions. It ensures the interests of both parties are protected, and provides a clear pathway for the transaction to proceed.

Key Components of the Form

The OREA Form 100 comprises several key sections that need to be accurately filled out:

Parties to the Agreement

This section identifies the buyer(s) and seller(s). Full legal names should be used.

Property Description

This section outlines details of the property being sold, such as the legal description, address, and any included or excluded items.

Purchase Price

Here, the agreed purchase price is stated.

Deposit

This section stipulates the deposit amount provided by the buyer.

Closing Date

The agreed-upon date when the transaction will be finalized and ownership transferred is indicated here.

Conditions

Any conditions that must be fulfilled before the sale can proceed are outlined in this section.

Signatures

The final section of the form where the buyer and seller, or their authorized representatives, sign to indicate their agreement to the terms.

Step-by-Step Guide for How to Fill Out the OREA Form 100

Identifying Parties to the Agreement

The first step is to correctly identify the parties involved in the transaction. This includes the legal names of the buyer(s) and seller(s). Ensure you use full legal names, not nicknames or abbreviations, to prevent confusion or disputes later.

Describing the Property

The next step is to describe the property. This includes the property's legal description, which can usually be found on the property's deed or in the property tax records. The property's address should also be included, along with any items that are included or excluded in the sale, such as appliances or fixtures.

Stating the Purchase Price

In this section, write down the agreed purchase price in clear, legible numbers. Make sure this matches what was agreed upon during negotiations.

Specifying the Deposit

Specify the deposit amount provided by the buyer. This money is typically held in trust by the real estate brokerage until the sale is finalized. The deposit amount is usually a percentage of the purchase price, and it will be applied to the purchase price at closing.

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Determining the Closing Date

The closing date is the date when the buyer takes legal possession of the property. This is typically several weeks or months after the agreement is signed. The closing date needs to be mutually agreed upon by both the buyer and seller. The text should specify the period of validity of the buyer’s offer, as well as closing date.

Detailing Fixtures, Chattels, and Rental Items

It is important to list excluded fixtures, including chattels, rental items, and Harmonized Sales Tax (HST) if applicable to the property in question. This helps to avoid any disputes about what is included in the sale later on.

Reading and Signing the Agreement

Once all the details have been filled out, the next step is to carefully read the pre-printed terms and conditions. If both parties agree to these terms, they need to sign each sheet. Witnesses (there should be two of them) and the brokerage companies’ representatives should also enter their names and sign. If the seller’s spouse is involved in the transaction, they should also be indicated.

Understanding the Schedules

Two Schedules may be attached to the final agreement according to the OREA Form 100 instructions. Schedule A is used by the broker representing the buyer and may list additional terms, such as home inspection, not included in the main text. Schedule B is filled in by the seller’s representative and contains pre-printed information regarding the liability of the brokerage company and the terms of the deposit.

Common Mistakes to Avoid

Not Reviewing the Form Carefully

One of the most common mistakes people make when filling out the OREA Form 100 is not reviewing the form carefully. It's crucial to thoroughly read through every section of the form to understand the terms and conditions of the agreement. Any misunderstandings or mistakes can lead to disputes later on.

Not Adhering to Time Limits

The agreement has specific time limits and periods during which parties can submit counter-proposals. Failure to adhere to these time limits can result in the offer becoming invalid. It's important to note that the time zone in which the property is located is implied for all dates and times mentioned in the contract.

Not Checking for Errors

Always double-check the completed fields for any errors; this is where the help of a real estate lawyer in Ottawa comes in. You don’t want to leave things to chance, and the only way to guarantee you won’t have any issues with your OREA Form 100 is to have it completed and reviewed by a real estate lawyer.

Get Help with Your OREA Form 100 and Real Estate Transaction in Ontario from TDJ Law

Navigating the intricacies of a real estate transaction can be a daunting task, especially when it comes to understanding and filling out crucial documents such as the OREA Form 100. At TDJ Law, we are committed to making your real estate transaction as seamless as possible. Get in touch with us and speak with a real estate lawyer in Ottawa for help with OREA Form 100 and any other real estate questions you might have.