OREA Termination of Agreement by Buyer
Terminating a real estate purchase agreement is never an easy decision, but sometimes it becomes necessary due to unforeseen circumstances. As a buyer, it is important to understand your rights and obligations regarding termination, as well as the potential consequences that may arise.
The Ontario Real Estate Association (OREA) sets out specific requirements for a buyer who wishes to terminate a purchase agreement. One of the most important considerations is the reason for the termination.
If the buyer has a valid reason for terminating the agreement, such as the failure of the seller to meet certain conditions, the buyer may be entitled to a refund of their deposit. However, if the buyer terminates the agreement for no valid reason, they may forfeit their deposit and may be exposed to potential legal action.
When terminating a purchase agreement, the buyer must provide written notice to the seller, outlining the reason for the termination. This notice must also be accompanied by a Release and Waiver form, which releases the seller from any further obligations under the agreement.
It is important to note that once a purchase agreement has been terminated, the seller is free to sell the property to another buyer. The terminated buyer has no further rights or obligations under the agreement.
If the buyer and seller are unable to reach an agreement regarding the termination and the return of the deposit, they may need to seek the mediation or arbitration services of OREA. It is recommended that buyers consult with a real estate lawyer before terminating any purchase agreement to ensure that their rights are protected.
In conclusion, terminating a real estate purchase agreement is not a decision to be taken lightly. Buyers must have a valid reason for terminating the agreement and must follow the proper procedures as set out by OREA. By understanding their rights and obligations, buyers can minimize their risks and potential losses in the event of a termination.