Amendment to Agreement Orea

Amendment to Agreement OREA: What You Need to Know

If you are a real estate professional, you are likely familiar with the Agreement of Purchase and Sale (APS) used in Ontario. The Ontario Real Estate Association (OREA) has recently announced an amendment to the APS, which will come into effect on July 1, 2021.

This amendment is intended to address some of the challenges faced by buyers and sellers during the COVID-19 pandemic, as well as to simplify some of the language used in the APS.

One of the key changes in the amended APS is the introduction of a new clause, 14B. This clause allows for the extension of the closing date if either party is unable to close due to COVID-19-related issues. This could include delays in obtaining financing, difficulties with home inspections or appraisals, or other COVID-19-related challenges.

Another significant change is the introduction of a new schedule, Schedule A2. This schedule is intended to simplify the language used in the APS and make it easier for buyers and sellers to understand their obligations under the agreement. It replaces the old schedules A, B, and C.

The new APS also makes some changes to the language used around home inspections. It clarifies that the seller is not under any obligation to repair or replace items identified in the inspection report unless they have agreed to do so in writing. It also adds a provision stating that if the cost of repairs or replacements exceeds a certain amount, the buyer can choose to terminate the agreement.

In addition, the amended APS includes some changes to the language used around deposits. It clarifies that deposits must be made by certified cheque, bank draft, or electronic funds transfer, and must be received by the seller`s lawyer or broker within the time specified in the agreement. It also adds a provision stating that if the deposit is not received on time, the seller may terminate the agreement.

Overall, the amendment to the Agreement of Purchase and Sale is intended to make the agreement easier to understand and to address some of the challenges faced by buyers and sellers during the COVID-19 pandemic. If you are a real estate professional in Ontario, it is important to familiarize yourself with these changes to ensure that you are properly advising your clients.

As always, it is recommended that buyers and sellers consult with a lawyer before signing any real estate agreement, including the amended APS. A lawyer can help ensure that their interests are protected and that they understand their rights and obligations under the agreement.