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Closing Agreement (Real Estate) for Canada

Closing Agreement (Real Estate) Template for Canada

A Real Estate Closing Agreement is a crucial legal document used in Canadian property transactions that finalizes the transfer of real estate ownership from seller to buyer. This agreement, governed by Canadian federal and provincial laws, outlines the final terms and conditions of the property sale, including purchase price adjustments, closing deliverables, and specific obligations of both parties. It serves as the definitive document that ensures all conditions of the original purchase agreement have been met and details the exact procedures for completing the property transfer, incorporating relevant provincial requirements for property registration and transfer tax obligations.

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What is a Closing Agreement (Real Estate)?

The Closing Agreement (Real Estate) is a essential document used in Canadian real estate transactions to formalize and execute the final stage of property transfers. It is typically prepared after the initial Purchase and Sale Agreement when all conditions have been satisfied and the parties are ready to complete the transaction. This document is crucial as it contains the detailed mechanisms for closing, including final price adjustments, utility readings, property tax adjustments, and specific closing procedures required by Canadian federal and provincial regulations. The agreement ensures compliance with local real estate laws, confirms that all conditions precedent have been met, and provides a clear framework for the transfer of title and possession. Used in both residential and commercial transactions, the Closing Agreement (Real Estate) serves as the final binding document that facilitates the successful completion of the property transfer.

What sections should be included in a Closing Agreement (Real Estate)?

1. Parties: Identification of the Vendor and Purchaser, including full legal names and addresses

2. Background: Context of the transaction, including reference to the original Purchase Agreement

3. Definitions: Key terms used throughout the agreement, including Closing Date, Property, Purchase Price, etc.

4. Property Description: Detailed legal description of the property being transferred

5. Purchase Price and Payment: Final purchase price, adjustments, and payment details including deposit allocation

6. Closing Deliverables: List of documents and items to be delivered by each party at closing

7. Vendor's Representations and Warranties: Confirmations regarding property title, authority to sell, and property condition

8. Purchaser's Representations and Warranties: Confirmations regarding authority to purchase and financial capability

9. Closing Procedures: Step-by-step process for the closing, including timing and location

10. Keys and Property Access: Arrangements for transfer of keys and property access

11. Notices: How and where formal notices between parties should be delivered

12. General Provisions: Standard legal provisions including governing law, entire agreement, and amendments

13. Execution: Signature blocks and execution requirements

What sections are optional to include in a Closing Agreement (Real Estate)?

1. Tenant Provisions: Required when the property is currently tenanted, addressing lease assignments and tenant notifications

2. Mortgage Assumptions: Included when the purchaser is assuming existing mortgages

3. Property Management Transition: Needed for commercial properties with ongoing management contracts

4. Condominium Provisions: Required for condominium unit transfers, including status certificate acknowledgments

5. Environmental Matters: Important for properties with known environmental issues or recent assessments

6. Post-Closing Obligations: Used when certain obligations continue after closing

7. Vendor Rent-Back: Included when the vendor will temporarily lease back the property after closing

What schedules should be included in a Closing Agreement (Real Estate)?

1. Schedule A - Legal Description: Detailed legal description of the property from title documents

2. Schedule B - Permitted Encumbrances: List of accepted liens, easements, and encumbrances

3. Schedule C - Closing Adjustments: Detailed calculations of tax, utility, and other closing adjustments

4. Schedule D - Included Chattels: Itemized list of personal property included in the sale

5. Schedule E - Excluded Fixtures: List of fixtures that are not included in the sale

6. Schedule F - Required Repairs: List of any repairs agreed to be completed before closing

7. Appendix 1 - Property Documents: List of property documents to be transferred to purchaser

8. Appendix 2 - Service Contracts: Copies of relevant service contracts being assigned

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions




































Clauses






























Relevant Industries

Real Estate

Legal Services

Banking and Finance

Property Development

Construction

Property Management

Insurance

Professional Services

Commercial Property

Residential Property

Relevant Teams

Legal

Real Estate

Property Management

Acquisitions

Commercial Development

Residential Sales

Compliance

Finance

Operations

Document Management

Risk Management

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Real Estate Broker

Title Officer

Mortgage Officer

Legal Counsel

Conveyancer

Real Estate Paralegal

Closing Coordinator

Transaction Manager

Property Administrator

Real Estate Director

Compliance Officer

Real Estate Partner

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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