standard forms-summary-table-2012

2012 Standard Forms - Summary of Changes

FORM SECTION REVISION EXPLANATION

100 Agreement of Purchase and Sale N.B. – Notices change will also be made to all forms that include the Notices clause including all applicable Agreements of Purchase and Sale.

Notices Clause

Notices clause revised to allow documents (e.g., Notices) to be sent to email addresses.

To provide for delivery of documents and notices by email. Eliminates the need to include an email clause in Schedule A of the agreements. Note: Care must be taken to ensure that the email has been sent to the correct email address. If the delivery of a document must be made within a definite time period, registrants should verify that the document has in fact been received and verify the status of a transaction and related documentation based on the required time periods and other provision(s) set out in the Agreement.

Other Form was expanded to 6 pages and more space was provided for chattels, fixtures, rental items.

Clause 21: Tender The wording was revised to include the latest wording of the balance on completion clause used in Schedule A. (See clause Dep/Pay 1 below)



140 Assignment Agreement

Acknowledgement

New statement added, as follows: The Assignee acknowledges that the Purchase Price noted above is the price being paid by the Assignee to the Assignor to purchase the Agreement of Purchase and Sale attached hereto as Schedule B and does not include the purchase price (but does include the deposit) noted on the Agreement of Purchase and Sale attached hereto as Schedule B.

Assists members in understanding the assignment process and in completing the form correctly.

141 Assignment Agreement – Condominium

New form

Similar to Form 140, but includes condominium description.

200 Listing Agreement N.B. – Changes also made on all other OREA Listing Agreements.

Use and Distribution clause Revised to list a number of possible attachments included with the listing data (e.g. floor plans, brochures etc.) and to include an indemnification by the seller.

Strengthens real estate boards’ authority or permission to retain and distribute material that is included with listings such as brochures, etc. that may have been created by other parties.

260 Residential Market Comparison Guide

Bottom of form A privacy disclaimer was added. To comply with ongoing privacy requirements.



320 Confirmation of Co-operation and Representation

Commission clause Revised the wording of sections 3. a), 1) and 3. b), 1). A prompt was added to the blank section of the form where the amount of commission is inserted, indicating that the amount must be the amount indicated in the MLS® information.

Helps to avoid disputes between listing brokerage and co-operating brokerage regarding the amount of commission payable to the co-operating brokerage.

Dep/Pay-1 A Further Sum New wording added as follows: The Buyer agrees to pay a further sum of ($_____), subject to adjustments, to the Seller on completion of this transaction, with funds drawn on a lawyer’s trust account in the form of a bank draft, certified cheque or wire transfer using the Large Value Transfer System.

Limits the method of payment for completion of the transaction to help resolve the problem of fraud.

Dep/Pay-2

Balance of Purchase Price New wording added as follows: The Buyer agrees to pay the balance of the purchase price, subject to adjustments, to the Seller on completion of this transaction, with funds drawn on a lawyer’s trust account in the form of a bank draft, certified cheque or wire transfer using the Large Value Transfer System.

Limits the method of payment for completion of the transaction to help resolve the problem of fraud.



Green Energy Clauses GREEN-1 Condition – MicroFIT Contract

New clause wording as follows: This offer is conditional upon the Buyer reviewing all requisite documentation relating to the Seller’s MicroFIT contract with the Ontario Power Authority and determining the terms of the contract are satisfactory to the Buyer in the Buyer’s sole and absolute discretion. Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than ____ p.m. on the ________ day of ____________, 20_____, that this condition is fulfilled, this offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer’s sole option by notice in writing to the Seller as aforesaid within the time period stated herein. The Seller agrees to provide the Buyer with a copy of the requisite documentation within ______ days of the acceptance of this offer.

Provides the buyer with the opportunity to review the terms of an existing MicroFIT contract on the property. Note: The topic of Green Energy and Renewable Energy can be very complicated and members must be prepared to create specific clauses to deal with unique circumstances, as required. Members should also be aware that Renewable Energy installations can affect the insurability of a property and clauses may be required to verify the insurability of a property and the costs of insurance.



Green Energy Clauses GREEN-2 Acknowledgement – MicroFIT Contract

New clause wording as follows: The Buyer acknowledges the buyer has reviewed all requisite documents relating to the Seller’s MicroFIT contract with the Ontario Power Authority and understands the Buyer must take the necessary steps to obtain the assignment of the contract to the Buyer, and understands that failure to obtain the required assignment will result in termination of the MicroFIT contract.

Confirms the buyer has reviewed the MicroFIT contract.

GREEN-3 Decommissioning Renewable Energy Facility

New clause wording as follows: The Buyer acknowledges that any decommissioning of the renewable energy facility will require that all governmental, legislative and contractual requirements must be complied with at the expense of the property owner, and may include, without limitation, the requirements that the facility must be dismantled and removed, the site and any lands and water negatively affected by the facility must be restored to and left in a safe and clean condition.

Confirms the buyer understands the buyer may be responsible for decommissioning the renewable energy installation at expense of the property owner.



Green Energy Clauses GREEN-4 Renewable Energy Projects

New clause wording as follows: The Buyer acknowledges and accepts that the subject property is located in an area where renewable energy producing equipment is proposed or already in operation, including, but not limited to Wind Turbines and Solar Energy Collectors.

Confirms the buyer is aware of proposed or existing renewable energy projects in the area.

GREEN-5 Wind Turbines – Warranty New clause wording as follows: The Seller represents and warrants to the Buyer that to the best of the Seller’s knowledge and belief there are no wind turbine(s) installed or proposed to be installed within ______________________ of the boundaries of the subject property. The parties agree that this representation and warranty shall survive and not merge on completion of this transaction.

Warrants that the seller is not aware of any renewable energy projects for the immediate area. Note: Clause can be altered to make reference to solar energy collectors.

standard forms-summary-table-2012

Real Estate