For many buyers and sellers, signing an Agreement of Purchase and Sale (APS) is the most significant legal commitment they will ever make.
Unfortunately, many people only contact a lawyer after the agreement has already been signed.
By that point, your lawyer is generally responsible for completing the transactionβnot renegotiating unfavourable terms.
Having a Toronto real estate lawyer review your offer before you sign can identify legal issues, reduce risk, and potentially save you thousands of dollars.
Once You Sign, You’re Usually Bound
An Agreement of Purchase and Sale is a legally binding contract.
Unless your offer contains a condition allowing you to walk away or renegotiate, you are generally committed to completing the purchase or sale. Failing to close could expose you to serious financial consequences, including:
β’ Lawsuits for damages
β’ Loss of your deposit
β’ Additional legal costs
β’ Responsibility for any losses suffered by the other party
A short legal review before signing can often prevent these issues from arising.
Common Issues We Flag Before Clients Sign
Every transaction is different, but we regularly identify issues such as:
Unclear Closing Costs
Many buyers underestimate the total cost of purchasing a property.
We review whether the agreement properly addresses:
β’ Adjustments
β’ HST obligations
β’ Development charges
β’ Rental items
β’ Holdbacks
β’ Additional builder fees (for new construction)
Understanding these costs before signing helps avoid unpleasant surprises on closing day.
Missing or Weak Conditions
Conditions are often your last opportunity to investigate the property before becoming legally bound.
Depending on the transaction, we may recommend conditions relating to:
β’ Financing
β’ Home inspections
β’ Status certificate review (for condominiums)
β’ Lawyer approval
β’ Sale of an existing property
Not every transaction requires conditions, but they should be carefully considered before submitting an offer.
Unusual Clauses
Many agreements include custom clauses drafted by one party.
Some clauses may:
β’ Shift unexpected costs onto the buyer
β’ Limit important rights
β’ Create additional obligations
β’ Shorten important deadlines
β’ Increase liability after closing
These clauses should always be reviewed carefully.
Title Concerns
Although a full title search occurs later in the transaction, the agreement itself may reveal potential concerns, including:
β’ Easements
β’ Rights-of-way
β’ Shared driveways
β’ Tenancy issues
β’ Rental equipment
β’ Vacant possession concerns
Identifying these issues early gives you more negotiating power.
New Construction Agreements Require Even More Attention
Builder agreements are often significantly longer than standard resale agreements and frequently contain provisions that favour the builder.
Items that should be reviewed include:
β’ Occupancy dates
β’ Extension rights
β’ Additional adjustment clauses
β’ HST provisions
β’ Assignment restrictions
β’ Tarion warranty provisions
β’ Builder’s rights to modify plans
These agreements should never be signed without legal advice.
Sellers Benefit From Legal Review Too
Legal review is not just for buyers.
If you are selling your property, a lawyer can ensure that:
β’ The property description is accurate.
β’ Chattels and fixtures are properly identified.
β’ Closing obligations are clear.
β’ You are not agreeing to unnecessary warranties or representations.
β’ Your liability after closing is minimized where appropriate.
A Small Investment Can Prevent Expensive Problems
Many legal issues are much easierβand far less expensiveβto resolve before an agreement is signed than after.
Spending a modest amount on legal advice before signing can provide peace of mind and reduce the risk of costly disputes later.
How Capulli Law LLP Can Help
At Capulli Law LLP, we regularly review Agreements of Purchase and Sale for buyers and sellers throughout Toronto, Vaughan, Richmond Hill, Markham, Mississauga, Brampton, Oakville, Burlington, Milton, and the Greater Toronto Area.
Our goal is simple: help you understand exactly what you’re signing before you become legally bound.
Whether you’re purchasing your first home, buying an investment property, selling your family home, or purchasing a condominium, obtaining legal advice before signing is one of the smartest decisions you can make.
If you’re about to submit or accept an offer, contact Capulli Law LLP for a professional review before you sign.
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