OREA Form 120 Amendment to Agreement of Purchase and Sale
What is an amendment to an agreement?
Real estate transaction is a large investment and has a complicated process. The whole process takes 2~3 months on average in Ontario, starting from the offer acceptance to the completion date. A number of third-party professionals may also get involved in the process. Therefore, it is not uncommon to see the changes after the home seller accepts the offer.
When the situation changes, it requires a change or correction of the original Agreement of Purchase and Sale. The OREA Form 120 is used for this purpose.
What is the common example that requires an amendment to an agreement?
- Closing day needs a change.
- Miss spelling or typo in the agreement. For example, a name change.
- Buyers need a few more days to fulfill the conditions, which normally require a third-party professional.
- Buyers find out some minor issues and want a price reduction, etc
- A real estate agent may occasionally use this form to eliminate the condition terms in the offer.
How does the amendment to an agreement work?
- The amendment is only valid after it is mutually signed by both the home buyer and seller. The other party has the right to accept or refuse the change.
- If the other party decides not to accept the change, the original contract is intact.
- If the other party agrees to the change and signs on the form, the amendment becomes valid. It supersedes the relevant part in the agreement, with the rest of the agreement remaining intact.
For all the rest forms typically in use during the house purchase, please refer to the OREA Forms.