OREA Form 101, also called Agreement of Purchase and Sale, is popularly used for condo buying. It documents the contract details in real estate transactions in Ontario. It is provided by OREA (Ontario Real Estate Association) for its member use.
Offer vs Agreement
When the buyer makes an offer on a condo, the Agreement of Purchase and Sale is referred to as an offer during the negotiation. After the contract is signed by both parties, it is then called an agreement.
OREA Form 101 is specifically used for condo buying, while OREA Form 100 is for the rest types of houses in the residential resale market.
This guide only highlights the difference between these two forms. For those terms not explained in Form 101, please refer to the Agreement of Sale and Purchase in Ontario (OREA Form 100)
There are more information that needs to be provided, compared to the freehold property resales. Those information include the condominium property type, legal name of the condominium corporation, condominium plan number, unit number, level number, building number, the number and level of parking space, and locker either by the ownership or exclusive use.
The parking and lockers can be sold separately if they are privately owned. If they are in exclusive use, it goes with the unit and will be transferred on the closing day.
The main difference from Form 100 is that It includes registered restrictions on title placed by Condo corporation. The buyer has to agree with those restrictions.
The condo corporation withholds the right to disapprove of the transaction. In a rare case, if it happens, the agreement is null and void.
It is worthwhile to learn those terms and clauses in advance, it helps you relieve the stress during the intensive negotiation.
This guide is not drafted by a lawyer. It is only based on an agent’s interpretation and perspective. Please check and verify with your real estate lawyer for completeness and accuracy..