QUOTE (BarryMcGuire @ Nov 4 2009, 07:27 PM) Hi there. I had a lengthy conversation with James Quigley yesterday. He says there isn`t an exact equivalent to the `Agreement for Sale` concept in Ontario. It gets a little confusing to discuss with your Ontario lawyers because the standard contract Ontarians use to buy a property is called an `Agreement of Purchase and Sale`. An `Agreement for Sale` on the other hand is both a concept and a document.
The concept, both in Alberta and B.C., is the notion of purchasing a property with seller financing where title remains in the seller`s name and the buyer registers a notice on the title indicating that he has an interest in the property. Buyer gets possession and is responsible for all costs that any buyer would have such as taxes, insurance, upkeep plus his payment to the seller. That is the `Agreement for Sale` concept.
The `Agreement for Sale` document is a lengthy, complex document similar to a mortgage. Its purpose is to set out the terms of the seller financing, who is responsible for what costs, what is a default and what are the remedies and how the buyer eventually gets title to the property.
What James is thinking over is how to make the Agreement for Sale concept work in Ontario... How to figure out the documentation for a deal that is really a purchase with seller financing and a deferred closing date where buyer has control of the property. BIG NOTE: James reminded me, and I said it would pass it on, that there is land transfer tax in Ontario and that any buyer would most likely have to pay that tax. That is not written in stone, but he just wanted everybody to remember about land transfer tax. You folks in BC also have land transfer tax that will have to be considered as part of any Agreement for Sale type purchase.
I now am getting requests to do my `Deal-Ready Documents` Focus Workshop in both BC and Ontario. This Workshop is all about `Quick Turn` paperwork from the legal end, as well as Lease-Options and Joint Ventures. What attendees will get out of the Workshop is a deeper understanding of the Quick Turn concepts, along with usable copies of Quick Turn documents. The valuable result is the ability to explain deals to buyers and sellers, as well as to instruct your own legal counsel and, handily enough, give them some documentation that they can adapt your purposes. We are booked up until after Christmas so this will have to be in the new year. I will work hard with James Quigley in Ontario and Mark Warkentin in BC to try and get them my ideas and copies of documents that they can help you folks with both in Ontario and BC. That`s going to take some time and, Ron may actually do his boot camp Ontario or BC or both. My Focus Workshop makes more sense to attend after youve been to Ron`s boot camp.
That`s it for me I`m now off to the Edmonton REIN meeting.
Hope this helps,
Barry
Hi Barry,
Thank you very much for your reply. It would be very helpful if you could do a `Deal Ready Documents` workshop in early January in Ontario. There were many Ontarians present at the Ron LeGrand bootcamp in Edmonton last month and many of us have been in touch with each other to try to sort out the legal side of what we`ve learned. Five of us from Ottawa chose to attend after I called the REIN office to ask if we would have usable forms for Ontario and we were told that yes, we would have the forms we needed to do business. We only discovered that we would not have usable docs once we were in Edmonton.
I really appreciate your help and I look forward to having the forms we need as soon as possible. In the meantime my lawyer is doing some research for the Ottawa group. Please keep us posted on any developments for Ontario. Many thanks in advance.
Doris of Ottawa