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Installment Sale Agreement (Real Estate) Template for Canada

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Key Requirements PROMPT example:

Installment Sale Agreement (Real Estate)

"I need an Installment Sale Agreement (Real Estate) for a commercial property in Ontario, with monthly payments over 5 years and special provisions for early payment without penalty, closing date March 15, 2025."

Document background
The Installment Sale Agreement (Real Estate) is a crucial document used in Canadian real estate transactions where the purchase price is paid through a series of scheduled payments rather than traditional mortgage financing. This arrangement is particularly useful when buyers cannot secure conventional mortgage financing or when sellers prefer to receive payments over time, potentially for tax planning purposes. The agreement must comply with provincial real estate laws, the federal Interest Act, and other relevant Canadian legislation. It typically includes detailed payment schedules, security arrangements, property maintenance requirements, and conditions for final title transfer. The document protects both parties by clearly defining their rights and obligations throughout the payment period, including remedies for default and provisions for early payment. This type of agreement is commonly used in both residential and commercial real estate transactions across Canada.
Suggested Sections

1. Parties: Identification of the Seller and Buyer with complete legal names and addresses

2. Background: Context of the transaction, including brief property description and parties' intention to enter into an installment sale arrangement

3. Definitions: Key terms used throughout the agreement including Property, Purchase Price, Installment Payments, Closing Date, etc.

4. Property Description: Detailed legal description of the property being sold, including all improvements and fixtures

5. Purchase Price and Payment Terms: Total purchase price, down payment, installment amount, payment schedule, and interest rate

6. Title and Possession: Conditions for transfer of title, interim possession arrangements, and final conveyance details

7. Security Arrangements: Seller's security interest, including registration requirements and buyer's obligations

8. Insurance and Risk: Requirements for property insurance and allocation of risk during the installment period

9. Property Taxes and Expenses: Responsibility for property taxes, utilities, maintenance, and other ongoing expenses

10. Default and Remedies: Events of default, cure periods, and available remedies including acceleration and forfeiture

11. Representations and Warranties: Standard representations by both parties regarding capacity, title, and property condition

12. Covenants: Ongoing obligations of both parties during the installment period

13. Notice: Methods and addresses for formal communications between parties

14. General Provisions: Standard contractual provisions including governing law, entire agreement, and amendment procedures

15. Execution: Signature blocks and witness requirements

Optional Sections

1. Property Management: Required when specific property management arrangements are needed during the installment period

2. Assignment: Include when parties want to specifically address the ability to assign rights under the agreement

3. Early Payment Provisions: Include when allowing for early payoff with specific terms or penalties

4. Subdivision Rights: Required when the property may be subdivided during the installment period

5. Environmental Matters: Include for properties with known environmental concerns or industrial/commercial properties

6. Construction/Improvement Provisions: Required when buyer plans significant property improvements during the installment period

7. Co-owner Provisions: Include when multiple buyers are involved with specific co-ownership arrangements

8. First Right of Refusal: Include when seller wants right to repurchase if buyer sells during installment period

Suggested Schedules

1. Schedule A - Legal Description: Detailed legal description of the property from title documents

2. Schedule B - Payment Schedule: Detailed amortization schedule showing all installment payments, interest, and principal allocation

3. Schedule C - Permitted Encumbrances: List of permitted liens, easements, and encumbrances that will remain on title

4. Schedule D - Property Condition Report: Detailed description of property condition at time of agreement

5. Schedule E - Insurance Requirements: Specific insurance coverage requirements and terms

6. Appendix 1 - Property Plans: Survey plans, building plans, or other property drawings

7. Appendix 2 - Environmental Reports: Any environmental assessments or reports (if applicable)

8. Appendix 3 - Title Search Results: Current title search showing existing registrations and encumbrances

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



















































Clauses




































Relevant Industries

Residential Real Estate

Commercial Real Estate

Real Estate Development

Property Management

Construction

Banking and Finance

Legal Services

Insurance

Real Estate Investment

Property Development

Relevant Teams

Legal

Real Estate

Finance

Tax

Risk Management

Compliance

Property Management

Investment

Business Development

Operations

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Real Estate Broker

Financial Advisor

Tax Consultant

Legal Counsel

Contract Administrator

Real Estate Developer

Investment Manager

Property Development Manager

Real Estate Investment Analyst

Compliance Officer

Risk Manager

Title Examiner

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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