| Perhaps the most important process of buying or | | | | " First-Name Last-Name grants a power of |
| selling your home is the "contract of purchase and | | | | attorney to her friend First-Name Last-Name to |
| sale". This one contract must be the strongest link | | | | enter into contracts for the sale of his/her |
| in the chain that holds your purchase or sale | | | | property." This friend could then sign both the |
| together. The intent of each item included in this | | | | listing contract and any other contracts including |
| contract must be clear with no misunderstandings. | | | | the contract of purchase and sale. This |
| In other words, everyone understand what to do | | | | agreement should be witnessed by another |
| and when to do it. | | | | person. This should be done on the correct form |
| The "contract of purchase and sale" has been | | | | provided by your lawyer of choice. Legal Counsel |
| developed by the B.C. Real Estate Association and | | | | is recommended that all parties to a transaction |
| the Canadian Bar Association within British | | | | be advised to have legal advice from separate |
| Columbia. This contract is mostly suitable for | | | | lawyers. |
| residential real estate and should not be used for | | | | "Subject to" Clauses in the purchase of your new |
| commercial transactions. One major issue in the | | | | home, condo, apartment or mobile home is a |
| contract of purchase and sale that is often over | | | | very important binding element of your |
| looked is the numbering of pages. The approved | | | | agreement. If one or both parties are not clear, |
| contract and all ammendum pages should be | | | | this can weaken your agreement and could alter |
| cross referenced. The appropriate page number | | | | the original intentions of the purchase and sale. |
| should be written at the top of each page (i.e., | | | | The ideal subject clause is one whose criteria are |
| Page 1 of 3, or Page 2 of 3 and so forth). | | | | so clear that it is completely obvious whether the |
| An amendment to an original contract of purchase | | | | criteria for satisfying that clause are met. When |
| and sale is essentially known as a change in the | | | | your looking at your clauses consider this. Is your |
| agreement. This new agreement that has been | | | | clause subjective or objective? Here's the |
| made should be put in writing in what as known | | | | difference: |
| as an "addendum form" and signed by all the | | | | A subjective - Is one that depends on the |
| parties to the contract. Each of these parties | | | | personal view of the individual who decides it. |
| much receive a copy and this copy must be | | | | An Objective - (in contrast) Is an objective clause |
| dated appropriately. The amendment done on the | | | | that depends on the external event. |
| addendum form must clearly refer to the original | | | | The more subjective the wording of a subject |
| contract and "all other terms and conditions | | | | clause, the higher the chases the court system in |
| remain the same" should be in writing after the | | | | British Columbia will find the clause to be uncertain. |
| change. | | | | So how do you make your clause more |
| Are you out of the country or out of the | | | | objective? Make it clear so that everyone may |
| province? The seller or buyer may appoint | | | | easily know whether the clause is fulfilled or not. |
| someone (realtor or another person) to act on his | | | | The more objective it is, the more you can prove |
| or her behalf with regards to any real estate | | | | whether the subject clause is completed or not. |
| transaction. This authorization should explain the | | | | Your local realtor is required to take a course on |
| exact terms and conditions under what authority | | | | proper contractual writing and should have an |
| the person has to sign on an agreement. For | | | | innate knowledge of the law. If you have |
| example: A telegram, letter or fax may be | | | | questions, don't only present your questions or |
| perfectly fine for this person to sign for. | | | | concerts to your realtor, but your lawyer as well. |
| However, the signing of legal binding agreement | | | | For the most part the experience of your realtor |
| may need the signature of "power of attorney". | | | | and the requirements put forth by the BCREA |
| When a person is granting the power of attorney | | | | (British Columbia Real Estate Association) should |
| to another individual, the proper way to complete | | | | be sufficient. In conclusion the be sure that all |
| this is as shown. However, should not be taken as | | | | pages are numbered, the addendum is clear with |
| legal advice and should not be used without first | | | | signatures and that your "subject to" clauses are |
| consulting your lawyer. | | | | clear and objective. |