OREA Real Estate College

Recap: OREA Standard Forms and Clauses 2013

0 Comments 02 January 2013

Every year, the OREA Standard Forms Committee reviews requests and recommendations from REALTORS®, real estate boards, and other interested stakeholders regarding OREA standard forms and clauses.

Based on this feedback and to keep current with the dynamic nature of real estate, the Committee has created several new forms and clauses, and revised existing forms and clauses.

Below is a brief summary of the changes. A more in-depth table is posted in the Members section of the website at www.orea.com.

Standard Form 101: Agreement of Purchase and Sale – Condominium

‘Description of Property’ section is now identical to a new standard form – Form 111: Agreement of Purchase and Sale – POTL Common Elements Condominium.

Clarifies the most correct way to describe a condominium corporation in an Agreement of Purchase and Sale.

These and other housekeeping changes made to all condominium agreements, Form 150, and Form 501.

Standard Form 111: Agreement of Purchase and Sale – POTL Common Elements Condominium [NEW]

This new form eliminates confusion regarding which form to use when selling a parcel of tied land (POTL).

The Standard Forms Committee combined the standard Agreement of Purchase and Sale form and the POTL Schedule and created this new form.

Standard Form 127: Acknowledgement re: Condition(s) In Offer

Checkboxes changed to ovals, which allows buyers to initial the information. This indicates buyers have read and acknowledged the information.

The home inspection category placed above the “Other” category in case an explanation for the type of inspection is required (e.g., inspection by engineer).

Standard Form 160: Registrant’s Disclosure of Interest – Acquisition of Property [Formerly Form 620]

This form was moved to 100 series to make it easier for members to find.

Standard Form 161: Registrant’s Disclosure of Interest – Disposition of Property [Formerly Form 621]

This form was moved to 100 series to make it easier for members to find.

 Standard Form 220: Seller Property Information Statement

New question added in the ‘General’ section re: non-condominium properties that have association fees to the ownership of the property.

Standard Form 225: Seller Property Information Statement – Important Information for Sellers [NEW]

This new form provides information to sellers being asked to complete OREA Standard Form 220: Seller Property Information Statement – Residential.

Standard Form 300: Buyer Representation Agreement

New section added in ‘Acknowledgement’ section to ensure REALTORS® explain, obtain buyers’ signatures, and provide a copy of the agreement to buyers.

Additional line added in ‘Commission’ section to clarify that the commission could be a percentage, a fixed amount, or an amount for leasing the property.

New clauses added in bold in `Commission’ section to clarify that this agreement applies for the purchase of one property. If the client leases a property, the agreement also applies to the purchase of the leased property or to the purchase of another property.

Standard Form 320: Confirmation of Co-operation and Representation

One of the most important issues for members is disclosure of representation and entitlement to commission.

Wording revised in ‘Listing Brokerage’ and ‘Co-operating Brokerage’ sections to simplify form for members’ use.

Standard Form 400: Agreement to Lease – Residential

New statement added in ‘Execution of Lease’ section to help members comply with the Residential Tenancies Act. 

Schedule A incorporated into the form to simplify form for members’ use.

Standard Form 520: Listing Agreement – Commercial – Authority to Offer for Sale

Wording change: “commission” replaces “agreed compensation.” This change also made on Form 525 and Form 530.

Standard Form 525: Listing Agreement – Commercial – Authority to Offer For Lease

New wording added in ‘Commission’ section to clarify when a leasing commission is due and payable.

Standard Form 530: Listing Agreement – Commercial – Authority to Offer for Sub-Lease

New wording added in ‘Commission’ section to clarify when a leasing commission is due and payable.

Clause ASSOC-1: Association Fees on Title [NEW]

Confirms the buyer understands that association fees are payable for the property.

Clause ENV-2: Condition – Endangered Species [NEW]

Confirms the buyer understands that the buyer is responsible for determining the property does not contain a habitat or critical habitat, as defined by legislation.

Clause ENV-7: Endangered Species – Acknowledgement [NEW]

Confirms the buyer understands the property may contain a habitat or critical habitat as defined in the legislation.

Clause REP/WARR-1: Seller Not Liable [NEW]

Confirms the buyer is aware of possible latent defect(s) on the property and that the seller will not be held responsible for current or future damage as a result of these defects.

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This post was written by who has written 140 posts on Ontario Real Estate Association Blog.

A manager of curriculum services for OREA Real Estate College, Sue writes and edits various documents for the College. She is a graduate of McGill University, and holds a post-graduate diploma in journalism from Humber College and a public relations certificate from Ryerson University.