The BIG SIX: How to draft a good BC Real Estate Purchase Contract. Six Mistakes to Avoid

 "The contract of purchase and sale governs the transaction between the buyer and the seller.  As you are representing the buyer or seller, you must ensure that the agreement properly reflects the intentions of your clients and fully protects their interests.

Most real estate contracts for residential transactions use the CREA/CBA standard “Contract of Purchase and Sale.”

Note that paragraph 18 of the standard form Contract of Purchase and Sale (the “Purchase Contract”) in use in BC presently states:

18. REPRESENTATIONS AND WARRANTIES:  There are no representations, warranties, guarantees, promises or agreements other than those set out in this Contract and the representations contained in the Property Disclosure Statement if incorporated into and forming part of this Contract, all of which will survive the completion of the sale.

This means that if you fail to include the necessary clauses to protect your client’s interests, often they cannot be enforced pursuant to this clause.

NOTE that most of the following issues are NOT addressed in the Purchase Contract, so it’s up to you to make sure that they are added in to the contract (when applicable)."

 

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