Ontario Real Estate Agreement of Purchase and Sale

[@CallumMoorekw]

▶ Exam Master Mini Course. Ontario Real Estate Exams 🇨🇦 ✅ Use The Discount Link Below For 25% OFF Course 1 - bit.ly/3NrGJ8q Course 2 - bit.ly/44qOTEK Course 3 - bit.ly/3r7uLJB Course 4 - bit.ly/3PCoe3H SIMS 1 - bit.ly/3Xv7rl0 SIMS 2 - bit.ly/3CUWEqS Value Link Above For All KZbin Supporters. 🙏

[@codcaptainswag]

Isn't the buyer liable for the taxes in Clause 17 if the Seller skips town? You mentioned the seller would be liable but when I'm reading the course material is specifically states the buyer is the one who is responsible and the buyer's lawyer may hold some of the funds for this purpose?

[@CallumMoorekw]

@@codcaptainswag I misspoke. Everything else is right. If the sellers are not a permanent resident or Canadian citizen they will have to pay capital gains tax even if it is their primary residence. The lawyers will make sure this is paid by the sellers as the buyers could be liable if not. I think I misspoke and said 'sellers' instead of buyers. Thanks

[@codcaptainswag]

@@CallumMoorekw Thank you for clarifying Callum!

[@realtorbinwant2350]

This guy is very helpful for all the realtors who want to work diligently and ethically across Ontario. Huge respect for you Callum. Keep going and growing.

[@CallumMoorekw]

Hey Binwant! Appreciate that! 🙏You as well!

[@anapires6691]

Thanks for providing a very simple yet thorough explanation for each one.

[@CallumMoorekw]

Glad it helped Ana!

[@Mrstigification]

DAMN.!! You just broke down a 11 hour module into an EXCELLENT 11 min long video.!! Thank you.

[@CallumMoorekw]

😄😄 YES! That's the goal! No problem glad it helped!

[@Mrstigification]

@@CallumMoorekw Quick Question/Request, i am currently finishing up course 2 and just bought a MacBook(currently studying from my iPad) for my future real estate career needs, can you make a short video based on the start up Tools, devices, cameras( if necessary or a phone camera is sufficient), gadgets etc a new realtor may need. So we don’t overspend based on the actual need for a realtor to run a business (based on your day to day experience). Love your video, they are very helpful and thank you again.!!

[@CallumMoorekw]

@@Mrstigification Hey Yash it's a good idea for sure! I'll put it on the list. 👍

[@ZahidNeem]

Amazing video! I’m a soon to be agent in Toronto and I’ve watched this video probably 25x just to hear it from somebody else. Love how you put it in such simple and clear terms 🙌

[@CallumMoorekw]

So good to hear!! Thank you Zahid and glad it helps!!

[@surahamdan2290]

If you can't explain it simply. you don't understand it well enough. Simplicity is the Key!! Thank you for the informative video.

[@CallumMoorekw]

👍👍👍 Glad it helped Sura!

[@auguststudios]

Few corrections. 1- For HST, it would be the buyer (not seller) who could become liable for taxes, that were owed by a non-resident seller, if not addressed properly. 2- Tender clause, is to show readiness and willingness of a party in case there is a dispute. So a seller or buyer can not say they had documents or funds ready and blame the other party. This provision is there to make sure their readiness can be documented thus should be done through the respective lawyers.

[@atulshukla2947]

I would love to see more of these types of technical content. Very simplified and straightforward

[@manugabbleRE]

Super informative! Your voice is also very easy on the ears

[@danielheppenstiel3623]

Great video! I would love to see more of these types of technical content. Thank you Callum

[@CallumMoorekw]

Awesome man glad they help! I had another 2 on the OREA forms and more coming. 👍

[@thepigeonfamily5805]

Hey Callum, I hope you can answer my question today since I have an exam tomorrow morning. When selling a high rise unit where would the agreement of purchase go? I have no idea about this and need to get info about it, does it go where the seller says? Or the condo manager determines that? Or what please let me know. Thank you so much !

[@azammohabbat8905]

Callum , l like the way u explained the Agreement of Purchase and Sale , appreciated 🙏🙏

[@CallumMoorekw]

No problem glad it helped!

[@EyesonEnforcement911]

Starting my sims 1 tomorrow! Your videos have been really helpful. Thanks, Callum!

[@CallumMoorekw]

Ok cool! Awesome glad they've helped! 😀

[@KaranSharma-he2ky]

Thank you Callum😊😊

[@CallumMoorekw]

Glad it helped Karan!

[@kimbeckles7070]

Callum u should teach real estate classes, u did a wonderful job explaining thank you

[@CallumMoorekw]

Hey thanks! 😄

[@a.j.20]

I subscribed to your channel because of this playlist. Thanks so much, Callum! I legit passed C2 with your help.

[@CallumMoorekw]

Hey awesome to hear A.J! 😃 Thx for the sub as well!

[@joshshenker]

I'm 21 years old about to do the first simulation and your videos are so helpful! Thanks man!

[@CallumMoorekw]

Awesome man so glad they help! Reach out any time! 👉 @callummoorekw

[@puneetsharma5200]

Very simplified and straightforward. Thanks

[@CallumMoorekw]

Great glad it helped! 😀

[@lanastevens2345]

Thanks so much Callum! After watching your videos I feel that things are finally sinking in! Writing my Beast Test in 6 days! lol!

[@CallumMoorekw]

Hey awesome Lana that's the goal! So glad, and good luck on the Beast! haha

[@getarsh]

Great video. Just to let you know you wrote Fixtures Included at 3:29

[@CallumMoorekw]

Jammit!! lol thx 👍

[@barbaranicholls2796]

Excellent video....you voice is very soothing. I start Sim 1 on Monday and I'm kind of freaking out. Thank you so much, Im glad I found your videos.

[@CallumMoorekw]

Hey thanks Barbara haha. NP glad they help! You've check out my vid on SIMS 1 yea?

[@barbaranicholls2796]

@@CallumMoorekw I am so there! Watched it twice...thanks again.

[@CallumMoorekw]

@@barbaranicholls2796 Ok awesome. Yea I know people that loved the week. Once my expectations were lower haha I also had a good time. 👍I enjoyed SIMS 2 as well.

[@leilashahsavani8822]

thanks alot my dear you are very kind ,you help me alot

[@usmansiddiqui4195]

super excellent each and all points covered brilliantly.

[@CallumMoorekw]

Thanks for that Usman and glad it helped! 👍

[@nikokovac7423]

I used this for exam prep 👍Should be fixtures excluded.

[@pandeyGCooking]

Very helpful and explained very well. Thanks!

[@CallumMoorekw]

Glad it helped!

[@leahdj1]

Great video Callum, thank you so much! I am preparing for my C2 exam is this is VERY helpful. May I suggest you make a video like this for the representation agreements too!?

[@CallumMoorekw]

Hey awesome glad they help! Yes I plan on doing another very soon! 👍

[@goddessqueen2170]

Thank you

[@asandhuk]

Love the video Callum! I am preparing for my C 2 Exam and this has been VERY helpful

[@CallumMoorekw]

Good luck on C2!. and glad it helped Aman!

[@mytablet6115]

Appreciate the review I'm looking at purchasing my first house through private deal

[@CallumMoorekw]

Glad it helped!

[@Sophocles14]

I love your videos lad. Thank you very much for sharing your wisdom and experience with us. I have watched several of your videos lad and they were definitely a contributing factor to my success in passing my first exam. (I am so grateful!) So, thank you for all your advice lad. I am just starting course two and have already watched one of your videos on it, which brought me here. Awesome! Time to learn some more wisdom from our friend Callum. Thank you again lad.

[@CallumMoorekw]

Super glad they help! Very nice, reach out anytime as you progress through the program! 👍👉@callummoorekw, [e-mail]

[@francescaquercia7381]

Amazing video! Thank you so much for this 🙏

[@CallumMoorekw]

No problem Francesca, glad it helped!

[@shakithyanpuvithasan4173]

Simply an amazing video. Keep up the great work.👍

[@CallumMoorekw]

Glad it helped, thank you and will do!

[@enroute2life]

Thanks for explaining it so clearly. Keep up the good work!

[@CallumMoorekw]

No problem! Happy you found it helpful and will do!

[@andrewcowe105]

Thank you Callum!

[@CallumMoorekw]

Hey no problem! Glad it helped Andrew!

[@aahan3]

great content and easy to understand the agreement

[@CallumMoorekw]

Awesome great to hear!

[@amandairving3496]

Super informative, thank you!

[@CallumMoorekw]

Awesome to hear glad it helped!

[@damansinghrealtor]

Hey Callum I don’t know if you remember me from my last comment on other videos. Anyways just wanted to let you know that I had exam 2 just now and in my list of preparation I literally have put your video at very last to watch right before starting exam to get all 27 clauses straight in my head 😄 and it helped. Great video man. I would literally suggest my cousins who are already Realtor in Brampon. Keep it up. 👍🤟

[@CallumMoorekw]

Hey Damanpreet, so glad it helped!! Yes I saw your other comment, appreciate that! 😀

[@jamieurierealestate7318]

Well done, thanks!

[@CallumMoorekw]

No problem glad it helped!

[@dwights1024]

Another great and informative vid as usual!

[@CallumMoorekw]

Appreciate that man! Really glad you liked it. 🙏

[@efeogbonmwan5525]

GOOD JOB! THANKS.

[@CallumMoorekw]

No problem! 👍

[@RamiSobhani]

Great video! Question: Do you refer your clients to this video for them to understand APS beforehand prior to making offers?

[@CallumMoorekw]

Hey glad it helped Rami! If they asked for something like this I would send it right away, that's for sure. Often if they have a question regarding the APS it's usually 1 or 2 that I just answer.

[@theinneryogaspace8389]

Thanks! This is very helpful

[@Zuha6]

Can you please make a video about schedules A,B, etc

[@CallumMoorekw]

It's not a bad idea. It might be a shorter video but could still be helpful.

[@austinye9954]

Very clear

[@a.j.20]

Hi, can you please make a video on the commercial forms as well? Would be much appreciated

[@CallumMoorekw]

Hey it's not a bad idea. I'll probably never do a commercial deal in my life so that might hold me back. But if there's enough demand for it I'd put the effort in.

[@a.j.20]

@@CallumMoorekw I see, but if you're worried about views I'm sure everyone going through course 4 will want to watch it, even if the general public isn't looking it up online. And for what it's worth, I don't think you have to do a deal to understand and explain the forms really well (most of it super similar anyways).

[@CallumMoorekw]

@@a.j.20 Yes you're right and I think the APS commercial is actually quite similar. From what I've heard the details are in the Sch A, Sch B etc. and they go very deep. For this one I'd love to have someone on the channel. Even an interview with an expert to go over roughly what to expect and maybe get a couple samples that he is willing to share. Then go deep into a possible example of a "normal" Sch A Sch B when it comes to commercial. Its a great idea though A.J 👍

[@maureenhumeniuk7868]

Would you mind adding on to this video the signing parts at the end? I think my course notes are wrong as they say the salesperson signs where I think it is where the buyer and seller sign!!! Thanks in advance!

[@CallumMoorekw]

Hey I don't think I'll be able to add that to this specific video but maybe I can help explain the areas. So both parties will initial at the bottom of every page. Both parties will sign the Successors And Assigns area. Both parties will sign the Acknowledgement. The last party to sign will sign the Confirmation of Acceptance. And we as the real estate agent/broker will sign the Commission Trust Agreement. I hope that helps Maureen!

[@cristianfelipegilgarcia8371]

Great Video but according to the course HST is not included in resale transactions of purchasing and selling homes and only will be charged for new homes!

[@CallumMoorekw]

Hey glad it helped! Yes so it will be "in addition to" on some new builds, not all. And "included in" on almost all re sale transactions. Meaning if the home is listed for $350,000. It's not plus HST. It will be $350,000.

[@Soso0408]

I thank you sooooooo much

[@vicentnsubuga3073]

it is very useful. it simple but understandable. but what goes on schedule B

[@CallumMoorekw]

Hey thanks. Schedule A will have any conditions. Example; condition on home inspection or condition on financing. Schedule B can have lots of things. For example once I had...there was insurance to be paid monthly on an area that the owner had access to but was owned by the city. Or more commonly the interest to be paid on the deposit if applicable.

[@shubhsmiles]

Error: Pl fix Fixture excluded not Fixtre included 11.52 (top right)

[@zoryr8509]

Hi all. Need a better explanation the difference between buyer representation agreement and buyer customer agreement. I understand the realtor obligation relating to clients vs customer, but how the agreement effects the “buyer” , what obligations customer agreement puts on a potential buyer”customer” What if they sign the customer agreement and go see same property with other registrant and buys it with that 2nd realtor, does it also effect commission of the selling realtor? Like what are the big differences between these agreements rather than the realtors relation towards a buyer client and buyer customer?

[@jonathanchoi652]

Hey Callum would you be providing tutoring services for specific courses? Currently stuck on one.

[@CallumMoorekw]

Hey not doing any tutoring at this time no. I’ve thought about it but the time and energy I’d put into tutoring to make sure I’m going above and beyond helping my students would consume too much of my time at this point. Maybe in the future though. 👍

[@codcaptainswag]

Isn't the buyer liable for the taxes in Clause 17 if the Seller skips town? You mentioned the seller would be liable but when I'm reading the course material is specifically states the buyer is the one who is responsible and the buyer's lawyer may hold some of the funds for this purpose?

[@codcaptainswag]

Hey @CallumMoorekw would you be able to confirm? My exam is this week haha

[@JayJay-ck9dz]

I’m a little confused about one part did you say HST is in most resales and not in new builds I thought in the readings it was the other way around and hst is not fo resales and mostly for new builds ? Or am I mistaken

[@CallumMoorekw]

So it's almost always "included in" for resale residential. So if the home is listed for $900,000. It's $900,000. And will be indicated in the APS. New builds or even commercial properties you could see the property is subject to HST. Which will be on top of the listing price.

[@JayJay-ck9dz]

@@CallumMoorekw Ok now I understand thanks for the clarification!

[@TanjiroFromStateFarm]

What part of this agreement states that the property is being sold as is where is?

[@CallumMoorekw]

Extra details as such would be indicated on the MLS Listing. Then listing agents would also want it in writing and that will most likely be included in Schedule A of the APS.

[@jagtarchatha1754]

How can real estate agent bound buyer for 6 months that one cannot switch real estate agent or go for private deal ? If buying property Is there particular document or jus clause in same agreement

[@CallumMoorekw]

Are you referring to the buyer representation agreement? Yes if you sign and work with a real estate agent for an agreed amount of time (six month would be long) and you don't indicate that you can buy a private home on your own, the buyer will have to compensate their representative in that rare instance. I will link the video I have on the BRA here 👉 kzbin.info/www/bejne/gpPQl2yLpphrfNE

[@jessierai2610]

I really like your videos as they are very helpful for preparing my exams. Just a quick question where would be best place to get some tutoring services? I live with in Kitchener area in Ontario.

[@CallumMoorekw]

Hey glad the videos help Jessie! I'm not too sure as far as the tutoring. I don't really have anyone I'd recommend. Kitchener though, great area! 😄

[@rajveerkaur6777]

Hi callum i have one question if buyer don’t want to purchase a property in a specific area how can salesperson mention this condition into a buyer representation agreement .

[@rajveerkaur6777]

She /he can write this condition in preprinted clause in the agreement or add schedule’s.

[@CallumMoorekw]

Hey Rajveer. Yes you will indicate this in the geographic location section of the Buyer Representation Agreement. It's right below the property type. I will link to the BRA video if you haven't watched that one yet. 👍kzbin.info/www/bejne/gpPQl2yLpphrfNE

[@user-do4yk4jx1d]

Hi, your videos are so helpful. Thank you! I want to ask some questions… Who keeps the original copy of the agreements? The one actually signed by both parties. (like an agreement of purchase and sale) or are they signing for the number of copies they need?? And let's say the remuneration is $5000 as a flat fee for the $50,000 value house which is 10% of the sale price. Is it legal? Is there any limit to the percentage? I got these questions on my C2 test, and looking for the correct answers.. thanks in advance!

[@CallumMoorekw]

Hey, glad the channel helps! Ok, so I'm not quite sure what you mean by signing for the number of copies...That's nothing you will have to do. But once an agreement of purchase and sale has been signed by both parties you must get a copy of the signed document to your clients as soon as possible. You might even see an exam answer that says; immediately. And that is also correct. Yes. It can be a flat fee, a percentage of the sale or a combination of both. What you may see on the exam as well is a brokerage charging a certain percentage for the first X amount and a lower percentage for any amount over X. For example: A brokerage can charge 5% on the first $400,000 and 4% on any amount over $400,000. Note that the percentage CANNOT increase. It must decrease. I haven't read anywhere of an indicated limit to a flat fee. If you see anything like that anywhere let me know. 👍 Hope that helped a bit!

[@user-do4yk4jx1d]

@@CallumMoorekw Hi! Thank you for your reply!! For the first question, they were asking who keep the actual signed agreement by the seller and buyer. For examples one of the choice was “the signed agreement by seller and buyer goes to seller and buyer.” Something like that. I was not sure the brokerage keep that.. or we give the actual agreement to buyer and seller and we keep the copy? I’m still not sure. And the second question.. i’m not 100% sure about the question, but one of the choice was “The total remuneration can be 10% of the sales price” something like that So you mean it is possible?? Thank you!!!!

[@CallumMoorekw]

@@user-do4yk4jx1d No problem. The buyer and seller will each get a copy and the brokerage will also retain a copy of a completed agreement of purchase and sale for at least 6 years. The listing brokerage (sell side) must also keep any unsuccessful offer for a period of 1 year. Yes. A percentage of the sale price even as high as 10% is ok if agreed upon. 👍 Older agents will tell stories of when it once was that high. 😄

[@user-do4yk4jx1d]

@@CallumMoorekw thanks! You mean if the buyer and seller sign in person, they will get the agreement that they signed? And we copied it and keep it?

[@CallumMoorekw]

@@user-do4yk4jx1d Yes if it were to be in such a unique circumstance everyone involved would still need a copy.

[@varindersingh7181]

Hi Callum is there any form 540 explained here?

[@CallumMoorekw]

Hey. I don't think I'll do any commercial. I like to do forms that I work with or have worked with. No plan on commercial anytime soon.

[@varindersingh7181]

Ok. Anyway. Thanks for your electric response.

[@CallumMoorekw]

@@varindersingh7181 No problem 👍

[@sarasmith5307]

Great Video, I have my exam 2 soon Do you have any notes that I can buy

[@CallumMoorekw]

Hey thx. I didn’t take that many notes actually. If I did I would send them to you free no money

[@goddessqueen2170]

Can you do one for Commercial Real estate?

[@CallumMoorekw]

Hey. So generally commercial clients we get, we do refer them. With the depth of the Schedules on commercial deals, I wouldn't' want to speak on something I don't personally specialize in. But it's a great idea!

[@goddessqueen2170]

Thank you@@CallumMoorekw

[@jayb8934]

As a first time buyer, should I have a lawyer review this forms before I sign them? Seller's agent seems to want me to sign immediately!

[@CallumMoorekw]

Hey Jay I got to your other question but reach out if you want more information on representation. You should have your own buying representation and it’s at no cost to you. 👉 callummoorekw 519-573-9996

[@2gs902]

So is this wholesaling

[@rimonshalash8066]

Can a seller back out of a purchase deal before closing date?

[@CallumMoorekw]

Hey so a couple things could happen here. If this were to come up this would be handled by the lawyers. But the buyers could lose their deposit and they could also be on the hook for the difference in price, marketing costs and legal fees related to re-selling the property.

[@iitiit9504]

😎😎😎

[@uzmasajjad8883]

Can you please make it clear what comes in preprinted clauses? Thank you

[@CallumMoorekw]

I’m not too sure what you mean Uzma?

[@gurjeetkaur7882]

Thanks, Callum I watched your every video. My sims 1 is on 12 Feb do I need to go through all syllabus. I am confused that what to read

[@CallumMoorekw]

Hey so you've watched my SIMS 1 video have you? Yes everything you will need to pass the assessment at the end you will learn that week. You don't need to do any preparation like a normal exam just yet. Watching my videos does give you a great idea of what to expect so you'll be ahead of it!

[@gurjeetkaur7882]

@@CallumMoorekw Do I need to learn clauses, …. Yes I have watched every video related to the SIMS 1 really helped…..thank you so much

[@CallumMoorekw]

@@gurjeetkaur7882 They might come up a little in SIMS but again you'll learn everything that week or weekend depending which one you chose. 👍

[@harpalkaurbajwa8054]

Hi Callium I am studying for course 2 and was wondering how many math questions are on the test. If there are math questions, are we allowed to calculator ?

[@CallumMoorekw]

Hey Harpal. Very little amount. The consensus is 0-4.

[@CallumMoorekw]

They provide you a pop up calculator. I'm not sure if you are allowed your own until SIMS 2.

[@KrishhnaMohan]

If I am submitting offer for my buyer client. On the irrevocability by? Is is seller or buyer?

[@CallumMoorekw]

In your case it will be irrevocable by the buyer.

[@CallumMoorekw]

Meaning basically what the word means. Once that offer is presented you CANNOT revoke it until the time written in the contract has passed. At which point the offer will become null and void

[@KrishhnaMohan]

Thanks This case if seller counters the offer then irrevocable by seller?

[@KrishhnaMohan]

So who ever making offer irrevocable by them?

[@CallumMoorekw]

@@KrishhnaMohan Yes you got it. 👍

[@king_wadey_productions]

Do you offer training?

[@CallumMoorekw]

I have a course that goes into the details of the logistics and actions of working with buyers and sellers once licenced but I don't do 1 on 1 training really no. My course is in the description.

[@Do-not-be-sheep]

The Buyers Representation Agreement is very one-sided it protects the Agent only and puts the Buyer at risk. 1. It allows the Agent to represent multiple clients on the purchase of the same house - this is a clear conflict of interest. 2. The only termination clause is a time commitment - this is complete nonsense there needs to be a non-performance clause as well 3. It commits the buyer to guarantee the buyer commission even if you terminated that agent for non-performance 4. When i buy a house from a developer I can modify their standard agreement if agreed between both parties. But agents tell me their not allowed to modify the agreement - this ridiculous As far as ethics go - given the choice between trusting a lawyer, used car saleperson or real state agent then I would pick the used car salesperson. This contract needs to change. Real Estate agents always act in their own best interest - with or without agreements - if you've sold more than one house you'll have figured this out already. But this agreement is insane - all the clauses protect the buyer's agent and not the buyer.

[@cameronhryciw2426]

I think you have point 7 incorrect. You state, "HST will almost always be included in a resale transaction". I believe it is the opposite, "HST will almost always NOT be included in a resale transaction".

[@CallumMoorekw]

When you buy a re-sale home for $350,000. It's not plus tax...

[@planesandpalmtrees747]

That point doesn’t sound correct to me either, sorry. What you’re saying is either incorrect or said in a way that makes it sound incorrect to certain listeners.

[@CallumMoorekw]

@@planesandpalmtrees747 So what if you chose the other option. 'in addition to'. So it would read - then such tax will be 'in addition to' the purchase price. That would mean when the seller put the home on the market for $350,000, you would have to pay HST in addition to the $350,000. So something like $395,000. 'Included in' means the price you pay is $350,000.