CBM Associate, Janice Papp, talks about having a lawyer review a purchase or sales agreement.   

I'm often asked by clients if it's a requirement that their lawyer review a contract to purchase and sale prior to them signing the actual contract. Certainly, there's no requirement for it. But in my opinion, it's highly advisable.   

The contract of purchase and sale is actually what binds the parties to a transaction, and while most of the contracts are fairly uniform in nature, they remain very complex nonetheless. And it's critical that a purchaser and a seller understand exactly what they're agreeing to under the terms. When I review a contract, I will look at several items. For instance, deposit, how much is it? Who is payable to? And most importantly, what will happen to that deposit should any of the parties fail to complete the transaction?   

I also like to look at conditions and the condition dates or the timelines set aside for those condition dates sufficient for the purchaser to gather all the information they need. Is the seller are aware that the property will be off the market during those condition timelines. When I out for a purchaser and reviewing a contract, I'd like to know if they understand what instruments might be registered against the title. Is there a leasehold interest that perhaps the seller hasn't disclosed in the contract, or is there a caveat registered against the property that could possibly restrict the building height or have strict architectural controls, thereby preventing the purchaser from possibly building their dream home?.   

If the property that's being purchased is classified as strata, does the purchaser understand all the strato documents that have been provided to them?.   

If I'm acting for a seller, are they aware that they could potentially be responsible in its entirety for any special assessment that might be levied even after the completion date? Having this type of legal advice before you actually sign on the dotted line is invaluable and that he could save the client from potential litigation issues and of course, substantial legal fees.   

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