In the world of real estate, an Agreement of Purchase and Sale (APS) is a crucial document that outlines the terms and conditions of a property transaction between a buyer and seller. In our previous article, we discussed the basics of the APS and some of the key sections it contains. In this article, we will take a deeper dive into the APS, exploring additional important details that you should be aware of.
One of the most important aspects of any APS is the closing date. This is the date on which the buyer will take possession of the property and the transaction will be completed. The closing date is typically negotiated between the buyer and seller and may be affected by a variety of factors, including the need for a mortgage or financing, any repairs or renovations that need to be completed, and the availability of the property.
Another key component of the APS is the deposit. This is the amount of money that the buyer will put down as an initial payment towards the purchase of the property. The deposit is typically due at the time the APS is signed and may be held in trust by the seller`s lawyer or a real estate brokerage until the transaction is completed. The amount of the deposit is negotiable between the buyer and seller, but is generally between 5-10% of the purchase price.
The APS may also contain a number of conditions that must be met before the transaction can be completed. These conditions may include obtaining financing, obtaining a satisfactory home inspection, or obtaining approval from a condominium board, among others. If the conditions are not met by the agreed-upon date, either party may have the right to terminate the APS and the deposit will be returned to the buyer.
Chattels and Fixtures
The APS will also outline which items will be included in the sale of the property. Chattels are movable items, such as appliances and furniture, while fixtures are attached to the property, such as light fixtures and built-in shelving. The APS will specify which items are included in the sale and which are not.
Finally, the APS will outline the closing costs associated with the transaction. These may include legal fees, land transfer taxes, and title insurance, among others. The APS will specify which party is responsible for paying each of these costs.
In conclusion, the APS is a critical document in any real estate transaction. It outlines the key terms and conditions of the sale, including the closing date, deposit, conditions, included items, and closing costs. As a buyer or seller, it is important to carefully review the APS and seek the advice of a real estate lawyer if necessary, to ensure that your interests are protected.