The Agreement of Purchase and Sale - Part I: Here are the key provisions of the agreement

Published in the Globe and Mail May 4, 2001.

The agreement of purchase and sale is the foundation for every real estate transaction, whether it’s residential or commercial. It never ceases to amaze me how what is usually the most important legal agreement that most people will ever enter into gets the least amount of attention from most home buyers.

What is even more startling is that more often than not, most purchasers sign their agreements without ever having consulted a  lawyer.

Stop and think about this. If you were going to buy a business for $250,000, arrange financing and perhaps negotiate franchise agreements, you would certainly engage a lawyer to review the agreements and assist you in the negotiation of them.

Yet, the same person who purchases a $250,000 house usually doesn’t think twice about putting his signature on such an agreement, one that will bind him to a commitment that may last more than a year and involve every last dollar of savings – in addition to burdening his family with significant debt.

The lawyer often gets to look at the agreement only once it’s signed and binding – too late to negotiate changes.

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