What is an Agreement of Purchase and Sale in Ontario?

The Agreement of Purchase and Sale (APS) is the binding contract between buyer and seller in an Ontario real estate transaction. Once both parties have signed it and all conditions have been either met or waived, the deal becomes firm — neither side can walk away without legal consequences.

The APS sets out the purchase price, the closing date, the deposit amount and due date, and any conditions (such as financing or home inspection). It also lists what fixtures and chattels are included or excluded. Standard residential forms are provided by the Ontario Real Estate Association, but the agreement can be amended by the parties.

Your lawyer should review the APS as early as possible — ideally before you sign. Once all conditions are satisfied or waived, the contract is binding, so it is important to understand your obligations before that point. Failing to close after the deal goes firm can expose you to a lawsuit for damages.