Template; Real Estate Purchase Contract 2

REAL ESTATE PURCHASE CONTRACT

TO: ____________________________________________________

(hereinafter called "the Vendor")

RE: ____________________________________________________

(hereinafter called "the Property")

I/WE ____________________________________________________________,

both of the ________________ of __________________________, in the Province of Alberta, (hereinafter called "the Purchaser") having inspected the above-described Property, HEREBY OFFER TO PURCHASE the Property as it stands subject to the reservations and exceptions appearing in the existing Certificate of Title, for the sum of ____________________________________________________________

($ _________________ ) DOLLARS:

To be paid as follows:

(a) $ ___________ Deposit by cheque in trust to, ________________________ lawyers for the Vendor as at the date of the making of this Offer as an indication of good faith.

(b) $ ___________ (further deposit)

(c) $ ___________ (more or less) paid only by solicitor's trust cheque or bank draft delivered to the Vendor's lawyer on or before possession date.

(d) $ ___________ (more or less) by the assumption of the existing (first mortgage) (agreement for sale) payable to ______________________________ which term ends on _____________________ and which has monthly payments (not) including taxes of $ ___________. Interest on the mortgage is _______% per annum calculated half-yearly, not in advance.

(e) $ ___________ by a new mortgage to be arranged by the Purchaser at the Purchaser's expense (called "New Mortgage").

TOTAL: $ ___________

The New Mortgage will have monthly payments of $____________ (not) including taxes, interest not greater than the rate of ______% per annum calculated half-yearly, not in advance, for a term of ____________ years, amortized over not more than ________ years. The Purchaser shall promptly apply for the New Mortgage and use his/her best efforts to obtain from a mortgage lender the written approval for the New Mortgage on these terms prior to the ________ day after this Offer is accepted. Prior to this date, the Purchaser shall deliver to the Vendor written notice that the New Mortgage has or has not been approved. The New Mortgage approval is a condition precedent solely for the benefit of the Purchaser and may be unilaterally waived by the Purchaser.

1. This Offer is made subject to the following additional conditions, all of which may, unless otherwise indicated, be unilaterally waived by the Purchaser by written notice to the Vendor on or before the expiry date for the satisfaction of the condition.

_______________________________________________________________

2. ADDITIONAL TERMS OF SALE:

1. The Vendor shall deliver the Property to the Purchaser on Possession Date in the same state of the Property's repair and condition on the date of this Offer, reasonable wear and tear only excepted.

2. _________________________________________________________

_________________________________________________________

3. _________________________________________________________

_________________________________________________________

3. All money owing to the Vendor shall be paid to the Vendor's lawyer on or before possession date. If the Vendor agrees to accept monies after the possession date, the Purchaser shall pay interest at the rate of three percent (3%) per annum above the Bank of Canada prime rate on any money owing to the Vendor at possession date, from possession date until that money has been paid.

4. This offer shall be open for acceptance by the Vendor in writing until _________ o'clock ___.m. on _____________, 19_____.

5. All normal adjustments for the property including but not limited to taxes, rents and damage deposits, and interest shall be adjusted as at noon on ____________, 19____ ("Adjustment Date").

6. Subject to the terms hereof being complied with, possession of the Property shall be available for the Purchaser at noon on _______________________, 19________ ("Possession Date"). The Property on Possession Date shall be vacant and free of all tenancies except:

_____________________________________________________________________

7. The purchase price shall include all permanent fixtures and the Specific Chattels presently located on the Property. The fixtures and the Specific Chattels shall be free and clear of any encumbrance and shall be in working order on Possession Date. The Specific Chattels are:

_______________________________________________________________

8. On Possession Date, the Property and the Specific Chattels shall be free and clear of any financial encumbrance except any financial encumbrances specifically permitted in this contract. The Property may be subject to non-financial encumbrances (if any) now on title such as easements, utility right of ways, covenants and conditions that are normally found registered against property of this nature and which do not affect the marketability of the property.

9. THE PURCHASER HAS INSPECTED THE PROPERTY AND AGREES THAT NEITHER THE VENDOR NOR ANY AGENT ACTING ON ITS BEHALF HAS MADE ANY REPRESENTATION, WARRANTY, COLLATERAL AGREEMENT OR CONDITION REGARDING THE PROPERTY OR ANY ADJACENT LANDS OR LANDS IN CLOSE PROXIMITY TO THE PROPERTY OR OTHERWISE WHICH MAY IN ANY WAY DIRECTLY OR INDIRECTLY AFFECT THE PROPERTY OR REGARDING THIS CONTRACT OTHER THAN WHAT IS WRITTEN IN THIS CONTRACT.

10. The Vendor shall pay and discharge any financial encumbrance which is not by this contract specifically assumed by the Purchaser.

11. The Vendor shall also pay and discharge any local improvement assessments or charges on the Property for services that were provided solely for the benefit of this Property. The Purchaser agrees to assume all other local improvements or charges on the Property otherwise specified in this contract.

12. The Transfer of Land in registrable form shall be prepared at the expense of the Vendor and delivered (together with Duplicate Certificate of Title if required) to the Purchaser's lawyer within a reasonable time prior to the Adjustment Date. If the Vendor does not provide the Transfer of Land to the Purchaser or the Purchaser's Solicitor in sufficient time to register prior to the Adjustment Date, then the Purchaser shall not be obliged to pay any interest to the Vendor on that portion of the cash to close attributable to the Purchaser's own funds (and not mortgages) provided those funds are paid to the Vendor's lawyer in trust until the Purchaser has a reasonable time in which to register the Transfer of Land. If a New Mortgage is a condition of this contract, the Vendor agrees to allow the Purchaser's lawyer to register the Transfer of Land to obtain the advance of mortgage funds on the New Mortgage PROVIDED THAT the Purchaser's lawyer complies with reasonable trust conditions imposed by the Vendor's lawyer until the Vendor has been paid the total purchase price. The Purchaser shall pay the expense of the New Mortgage. The Vendor's lawyer has the right to prepare (at the expense of the Purchaser) any mortgage or Agreement for Sale between the Vendor and the Purchaser. Any mortgage or any Agreement for Sale between the Vendor and the Purchaser shall be in a form acceptable to both, otherwise the matter shall be determined by arbitration under the Arbitration Act of Alberta.

13. All buildings and chattels included in the sale will remain at the risk of the Vendor until Adjustment Date, and all insurance policies and the proceeds thereof will be held in trust for the parties as their interest may appear.

14. The parties agree that the representations, warranties and covenants herein shall not merge by the acceptance of documents, the registration of documents, or the taking of possession by the Purchaser.

15. The Vendor represents and warrants to the Purchaser that:

(a) within the meaning of the Income Tax Act of Canada, the Vendor is not now a non-resident of Canada or an agent or a trustee for any person with an interest in the Property who is a non-resident of Canada;

(b) the property is not insulated with, and never has been insulated with Urea Formaldehyde Foam;

(c) the locations of buildings on the Property comply with all municipal government laws and regulations. The buildings on the Property do not encroach upon any easement or utility right of way on the Property or upon lands adjacent to the Property.

16. Time shall be of the essence in this contract.

17. The Deposit shall be forthwith refunded to the Purchaser without deduction and without interest if:

(a) this offer is not accepted; or

(b) a condition precedent is not satisfied; or

However, if this Offer is accepted and all conditions precedent are satisfied and the Purchaser then fails to perform this contract, the Deposit shall be subsequently forfeited on account of liquidated damages and the Vendor may also take such other remedies against the Purchaser as the Vendor has at law.

18. This contract shall enure to the benefit of and be binding upon the heirs, executors, administrators, successors, and assigns of the parties hereto.

SIGNED AND DATED at ____________________, Alberta, at _____o'clock ___.m. on ________________________, 19________.

__________________________ __________________________

Signature of Witness of Signature of Purchaser

Purchaser

__________________________ __________________________

Signature of Witness of Signature of Purchaser

Purchaser

ACCEPTANCE

I/WE, the undersigned Vendor of the Property, hereby accept the above Offer and agree to complete the sale on the terms and conditions in the Offer and should I/we fail to do so, the Purchaser at his/her option may cancel this contract and withdraw his/her deposit, and the Purchaser may take such other remedies as the Purchaser has at law.

SIGNED AND DATED at ____________________, Alberta, at _____o'clock ___.m. on ________________________, 19________.

__________________________ __________________________

Signature of Witness of Signature of Vendor

Vendor

__________________________ __________________________

Signature of Witness of Signature of Vendor

Vendor