If you`re looking to buy or sell a property in Ontario, Canada, you may come across the term “OREA Agreement of Purchase and Sale.” But what exactly is this document and why is it important?

OREA stands for the Ontario Real Estate Association, a professional organization for real estate agents and brokers in Ontario. The OREA Agreement of Purchase and Sale is a standard form contract that outlines the terms and conditions of a real estate transaction between a buyer and a seller.

This agreement is legally binding and covers important aspects of the sale, such as the purchase price, deposit amount, closing date, and any conditions that must be met before the transaction can be completed (such as a satisfactory home inspection or financing approval).

While the OREA Agreement of Purchase and Sale is a standard form contract, there is still room to negotiate some terms with the other party. For example, the buyer may ask for a longer closing period or for certain items to be included in the sale (like appliances or furniture).

It`s important to note that the OREA Agreement of Purchase and Sale is not a do-it-yourself document. Both parties should have their own real estate lawyer review the agreement before signing, to ensure that their interests are protected and that they fully understand the terms of the contract.

In addition, if you`re a buyer, you may want to include a condition in the agreement that makes the sale conditional on a satisfactory home inspection. This will allow you to back out of the sale if any major issues are discovered during the inspection.

Overall, the OREA Agreement of Purchase and Sale is a critical document in any real estate transaction in Ontario. Whether you`re a buyer or a seller, it`s important to understand the terms of the agreement and to have a lawyer review the document before signing to ensure that everything is in order.