A waiver agreement of purchase and sale is a legal document that is commonly used in Ontario real estate transactions. This document is a binding contract between the buyer and the seller, which outlines the terms and conditions of the sale. In this article, we will explore what a waiver agreement of purchase and sale is, its importance, and how it can be properly drafted.
What is a Waiver Agreement of Purchase and Sale?
A waiver agreement of purchase and sale is a legal document that signifies that the buyer has waived certain conditions in the agreement of purchase and sale. Typically, most real estate purchases are conditional, and the buyer must fulfill certain conditions before the sale can go through. Examples of these conditions include financing, home inspection, and a satisfactory review of the condominium documents, among others.
When a buyer chooses to waive these conditions, they are accepting the property in its current state and assume any risks associated with it. The waiver agreement is a tool used to protect the seller from any future liability or legal action by the buyer.
Why is a Waiver Agreement of Purchase and Sale Important?
The waiver agreement of purchase and sale serves as an important legal document in a real estate transaction. Its primary purpose is to protect the interests of both the buyer and the seller. For the buyer, it ensures that they have a clear understanding of the conditions that they are waiving and the risks that come with it. It also provides them with proof that they have waived these conditions, which can be important in case of any future disputes.
For the seller, the waiver agreement ensures that they are protected from any legal action that could arise from the buyer`s failure to fulfill the conditions outlined in the agreement of purchase and sale. It also confirms that the buyer has accepted the property in its current state.
How to Draft a Waiver Agreement of Purchase and Sale?
Drafting a waiver agreement of purchase and sale requires precision and attention to detail. The document must clearly outline the conditions being waived, the date of the waiver, and the signatures of both the buyer and the seller. It is important to note that the buyer should have legal counsel review the document before signing.
It is also essential to ensure that the document complies with all provincial and municipal laws. In Ontario, the Real Estate and Business Brokers Act (REBBA) governs real estate transactions and the use of waiver agreements. Therefore, it is crucial to ensure that the waiver agreement complies with the provisions of this act.
In conclusion, a waiver agreement of purchase and sale is an important legal document that protects the interests of both the buyer and the seller in a real estate transaction. It is essential that the document is drafted with precision, complies with all provincial and municipal laws, and is reviewed by legal counsel before signing. A well-drafted waiver agreement can prevent future disputes and legal action, ultimately ensuring a smoother real estate transaction.