December 2025 - Legal Update - What to Know About Real Estate Contracts

When thinking about contracts, it is important to identify the rights you have, as well as the consequences for those who break the deal. A contract for a home purchase agreement is the largest transaction an individual will likely ever sign. For this reason, a real estate contract is unlike other consumer contracts. The agreement will identify one or more pieces of land and will include the rights and responsibilities associated with ownership over that piece of land. The agreement will also consider fixtures and chattels, and representations about the state of the property and leases affecting the property. Since the contracts can involve so many layers, getting the right team involved can make all the world of difference when it comes to closing your home purchase. Your decision to say yes to a home purchase means you have already considered possible conditions related to financing, inspections, zoning, and regulatory approvals, any of which can determine whether the deal ultimately proceeds. Standard clauses can address timelines for a buyer to complete certain tasks, including periods for further investigation of title called the “requisition period”. Because of these complexities, a home purchase contract is not something most clients should sign on a handshake or with only informal guidance. Careful drafting of the agreement by a trusted real estate agent will help ensure that the listing details and verbal confirmations match the written terms. For Ontario lawyers, it is their responsibility to explain how certain conditions are enforceable and ensure that the client understands both their rights and their potential options if the deal fails. Differences in strategy and legal experience managing risk reinforce the value of legal advice at the moment when it matters most. Lawyers can therefore set themselves apart based on the legal tools they have invested in, including tools for the efficient signing of documents and delivery of funds, the experience they have in reviewing property details, and their creativity in solving issues in time-sensitive matters. When it comes to your home purchase contract, do not hesitate to contact Liddiard Law. Our team has a proven track record of working with clients to ensure the timely delivery of mortgaged funds and anticipating and overcoming barriers to smooth closing. Email us at [email protected] to learn more about our services or call us at (905) 932-5437. Michael Craig Liddiard, BA MA JD (905) 932-5437 Email : [email protected] Liddiard Law Professional Corporation