OREA Standard Forms: Summary of Changes for 2011

FORM 100 Agreement of Purchase and Sale

N.B. Changes this form were made on all applicable Agreements of Purchase and Sale. All references to GST were removed from the Agreements.

SECTION
Clause 4 Chattels Included

REVISION
New statement added, as follows: Unless otherwise stated in this Agreement or any Schedule hereto, Seller agrees to convey all fixtures and chattels included in the Purchase Price free from all liens, encumbrances or claims affecting the said fixtures and chattels.

EXPLANATION
Describes what is expected to remain in or on the property when the transaction is finalized.

Sellers acceptance of the Offer (follows Clause 28)

New wording added, as follows: I hereby irrevocably instruct my lawyer to pay directly to the brokerage(s) with whom I have agreed to pay commission, the unpaid balance of the commission together with applicable Harmonized Sales Tax (and any other taxes as may hereafter be applicable), from the proceeds of the sale prior to any payment to the undersigned on completion, as advised by the brokerage(s) to my lawyer.

Commission may be payable to a brokerage other than a listing brokerage.

200 Listing Agreement Authority to Offer For Sale

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

Clause 4 Representation

New wording added, as follows: Unless otherwise agreed in writing between Seller and Listing Brokerage, any commission payable to any other brokerage shall be paid out of the commission the Seller pays the Listing Brokerage, said commission to be disbursed in accordance with the Commission Trust Agreement.

Confirms that the seller and the listing brokerage can agree that the co-operating brokerage can be paid directly by the seller.

FORM

SECTION
Clause 5 Referral of Enquiries

REVISION
New wording added, as follows: If any enquiry during the Listing Period results in the Seller accepting a valid offer to purchase during the Listing Period or within the Holdover Period after the expiration of the Listing Period, the Seller agrees to pay the Listing Brokerage the amount of commission set out above, payable within five (5) days following the Listing Brokerages written demand therefor.

EXPLANATION
Clarifies that a commission is payable when any enquiry results in a sale.

Clause 8 Indemnification and Insurance

Insurance added to clause name. New wording added, as follows: The Seller warrants the Property is insured, including personal liability insurance against any claims or lawsuits resulting from bodily injury or property damage to others caused in any way on or at the Property and the Seller indemnifies the Brokerage and all of its employees, representatives, salespersons and brokers (Listing Brokerage) and any co-operating brokerage and all of its employees, representatives, salespersons and brokers (co-operating brokerage) for and against any claims against the Listing Brokerage or co-operating brokerage made by anyone who attends or visits the Property.

The seller warrants that the property is insured, including liability insurance for the visitors to the property.

FORM 201 Seller Customer Service Agreement

SECTION
Clause 4 Deposit

REVISION
Deposit holder removed. New wording added, as follows: The Seller and Brokerage agree that the deposit for a transaction shall be held in trust by the Brokerage.

EXPLANATION
The deposit indicates the buyers intent to purchase the property. It is considered part of the purchase price and is deducted from the proceeds on closing. The seller warrants that the property is insured, including liability insurance for the visitors to the property.

Clause 6 Insurance

New wording added, as follows: The Seller warrants the Property is insured, including personal liability insurance against any claims or lawsuits resulting from bodily injury or property damage to others caused in any way on or at the Property and the Seller indemnifies the Brokerage and all of its employees, representatives, salespersons and brokers for and against any claims against the Brokerage made by anyone who attends or visits the Property.

220 Seller Property Information Statement

General Question 3

New question, reads as follows: Is the property a condominium or a freehold property that includes an interest in a common elements condominium? (If yes, Schedule 221 to be completed).

Explains when a condominium schedule should be used, including the requirement for use of the Schedule with a Common Elements Condominium.

Improvements and Structural Question 14

This question, pertaining to home inspections, was removed.

FORM

SECTION
Other

REVISION
Information was re-arranged, and more blank space was added for Additional Comments under the Improvements section. Reference to GST was removed. Question revised, as follows: (a) Are there any restrictions on pets? (b) Are there any restrictions on renting the property? (c) Are there any other restrictions on the use of the property?

EXPLANATION

221 SPIS Schedule for Condominium

Condominium Corporation Question 6

Relates to restrictions for condominiums.

Other

Oval added to the bottom of the form for the buyers to initial and indicate their receipt of a copy of the Schedule. New question, reads as follows: (a) Is hydro available to the property? (b) Is the owner responsible for the installation, replacement/maintenance of any utility poles/ equipment?

222 SPIS Schedule for Water Supply, Waste Disposal, Access, Shoreline, Utilities

Access, Shoreline, Utilities Question 6

Bottom of Form

Oval added to the bottom of the form for the buyers to initial. Line added under Assignee Brokerages Broker of Record/Manager to indicate the name of the salesperson.

243 Assignment of Listing Agreement

Bottom of Form

FORM 300 Buyer Representation Agreement Authority for Purchase or Lease

SECTION
Clause 4 Referral of Properties

REVISION
New wording added, as follows: If the Buyer arranges a valid agreement to purchase or lease any property of the general description indicated above that came to the attention of the Buyer during the currency of this Agreement and the Buyer arranges said agreement during the currency of this Agreement or within the Holdover Period after expiration of this Agreement, the Buyer agrees to pay the Brokerage the amount of commission set out above in Paragraph 2 of this Agreement, payable within (5) days following the Brokerages written demand therefor.

EXPLANATION
Commission is payable if a buyer finds a property and fails to refer it to the brokerage so the brokerage can participate in the transaction.

320 Confirmation of Co-operation and Representation

Co-operating Brokerage Question 3(a), 3(b)

New section entitled Other added to Questions 3(a) and 3(b), as follows: (a) The Co-operating Brokerage represents the interests of the Buyer in this transaction. It is further understood and agreed that: 4) Other (b) The Co-operating Brokerage is NOT representing either the Buyer or the Seller in this transaction. It is further understood and agreed that: 3) Other

New section gives co-operating brokerage the ability to describe who it is representing, if anyone, and how it is to be paid.

Sub-agency

Section for the co-operating brokerage to choose a sub-agency was removed.

FORM 520 Listing Agreement Commercial Authority to Offer for Sale

N.B. Changes also made to the other Commercial Listing Agreements.

SECTION
Clause 2 Commission

REVISION
New wording added, as follows: In the event the buyer fails to complete the purchase and the deposit or any part thereof becomes forfeited, awarded, directed or released to the Seller, the Seller then authorizes the Listing Brokerage to retain as agreed compensation for services rendered, fifty (50%) per cent of the amount of the said deposit forfeited, awarded, directed or released to the Seller (but not to exceed the commission payable had a sale been consummated) and to pay the balance of the deposit to the Seller.

EXPLANATION
Commission may be payable to a brokerage other than a listing brokerage. Reflects revisions to Form 200: Listing Agreement Authority to Offer for Sale

Clause 3 Representation

New wording added, as follows: The Seller authorizes the Listing Brokerage to co-operate with any other registered real estate brokerage (co-operating brokerage), and to offer to pay the co-operating brokerage a commission of _____ % of the sale price of the Property or _____ out of the commission the Seller pays the Listing Brokerage. The Seller understands that unless the Seller is otherwise informed, the co-operating brokerage is representing the interests of the buyer in the transaction.

Confirms that the seller and the listing brokerage can agree that the co-operating brokerage can be paid directly by the seller. Reflects revisions to Form 200: Listing Agreement Authority to Offer for Sale

FORM

SECTION
Clause 4 Referral of Enquiries

REVISION
New wording added, as follows: If any enquiry during the Listing Period results in the Sellers accepting a valid offer to purchase during the Listing Period or within the Holdover Period after the expiration of the Listing Period described above, the Seller agrees to pay the Listing Brokerage the amount of commission set out above, payable within five (5) days following the Listing Brokerages written demand therefor.

EXPLANATION
Clarifies that a commission is payable when any enquiry results in a sale. Reflects revisions to Form 200: Listing Agreement Authority to Offer for Sale

Clause 7 Indemnification and Insurance

Insurance added to clause name. New wording added, as follows: The Seller warrants the Property is insured, including personal liability insurance against any claims or lawsuits resulting from bodily injury or property damage to others caused in any way on or at the Property and the Seller indemnifies the Brokerage and all of its employees, representatives, salespersons and brokers (Listing Brokerage) and any co-operating brokerage and all of its employees, representatives, salespersons and brokers (co-operating brokerage) for and against any claims against the Listing Brokerage or co-operating brokerage made by anyone who attends or visits the Property.

The seller warrants that the property is insured, including liability insurance for the visitors to the property. Reflects revisions to Form 200: Listing Agreement Authority to Offer for Sale