What exactly is an Agreement of Purchase and Sale in Ontario?
An Agreement of Purchase and Sale (APS) is the legally binding contract between a buyer and seller that governs a real estate transaction in Ontario. Once both parties sign and all conditions are satisfied or waived, it becomes an enforceable obligation — the seller must sell, and the buyer must buy on the agreed terms.
The APS sets out the purchase price, closing date, deposit amount, included chattels and fixtures, and any conditions the buyer has negotiated (such as financing or inspection). Most residential transactions in Ontario use a standardized form produced by the Ontario Real Estate Association, though the parties can add schedules to customize terms.
Because the APS is a binding legal document, you should have a real estate lawyer review it — ideally before you sign, or at least immediately after, while you still have time to raise concerns or negotiate changes through your agent.
Key takeaways
- The APS becomes binding once both parties sign and conditions are met or waived.
- It sets price, closing date, deposit, inclusions, and conditions.
- Use an Ontario real estate lawyer to review before or immediately after signing.
- Standard OREA forms are common but schedules can add custom terms.