Ontario Real Estate Forms and Paperwork Explained [For Sellers and Buyers]

For both home buyers and home sellers, the real estate forms and paperwork associated with buying and selling a property can feel overwhelming! Which is why I created this article “Ontario Real Estate Forms Explained” to help you gain a better understanding in the paperwork involved in the home buying and selling transaction.

And, while the real estate forms you’ll work with when diving into a real estate transaction can vary, there are a few common or standard real estate forms that the Ontario Real Estate Association (OREA) has produced which all real estate agents use in Ontario.

Your real estate agent then customizes these forms to you as a home buyer or home seller, but they can be confusing, especially for those who are buying a home in Ontario for the very first time!

I see this often with first-time home buyers which is important to have Ontario Real Estate Forms explained and want to help prepare you for the real estate market when the time comes for you to buy or sell a property in Ontario.

Before we get too deep into reviewing what these real estate forms and paperwork mean, there are a few things you should be aware of:

• In Ontario, all Realtors (real estate agents) work for and represent a Brokerage – in my case, I work for and represent Century 21 Millennium Inc.
• Whether you’re buying, selling or leasing a home in Ontario, agreements are always between you and the Realtor’s Brokerage (not between you and the individual Realtor)*
• When you see people refer to themselves or Realtors as “real estate agents”, they mean Realtors, which is the official term of designation
• All real estate forms and paperwork can be signed electronically provided it’s with an approved or acceptable digital signing program (like DocuSign)

*Because your agreement is between you and your Realtor’s Brokerage (and not between you and your Realtor themselves), it’s important to work with a Realtor that puts your best interests first and negotiates for you, not just to get the best commission or wrap up a sale quickly!

WORKING WITH A REALTOR – OREA FORM 810

The “Working With a Realtor” Form (810) from OREA explains the distinction between what it means to be a “client” and a “customer”. That distinction is important because it distinguishes the type of relationship you have with your Realtor.

As a client, you can be a home buyer or a home seller. The representation agreements take the form of a Listing Agreement or a Buyer Representation Agreement. While in a client relationship (as a home buyer or home seller), the Brokerage has to protect the interest of the client and not disclose confidential information.

When a home buyer or home seller doesn’t want to have a client relationship with a Brokerage, they can have a customer relationship with the Brokerage. In this case, the services the Brokerage offers are restricted.

Form 810 also explains what happens when a Realtor (real estate agent) is representing both the home buyer and the home seller.

Keep in mind that the “Working With a Realtor” (Form 810) is an agreement between you (the home buyer or the home seller) and the Brokerage, not you and your Realtor. Your Realtor works on behalf of their Brokerage. It’s also important to know that Form 810 doesn’t commit you to working with a specific Realtor; it’s just an acknowledgment that you’ve been informed and have talked about different ways you can be represented!

BUYER REPRESENTATION AGREEMENT – OREA FORM 300

The Buyer Representation Agreement is between you (the home buyer) and your Realtor’s Brokerage. It gives the Brokerage permission to act on your behalf in the purchase of a property and must be signed prior to a Realtor submitting an offer on your behalf. This agreement also lays out the terms of the commission the Realtor will be paid if you buy a property during the period of the agreement.

The Buyer Representation Agreement also means that your Realtor is obligated to:

• Put your best interests first and protect your best interests
• Negotiate on your behalf
• Take all reasonable steps to discover and disclose all material facts about a property

What does that all mean? Well, it means that your Realtor will act on your behalf to negotiate favourable terms for you, maintain confidentiality at all times, and work to ensure that you as a Buyer are protected and assisted in making informed choices.

LISTING AGREEMENT – OREA FORM 200

The Listing Agreement is between you (the home seller) and your Realtor’s Brokerage. It gives the Brokerage your Realtor works for, permission to act on your behalf when you put your home up for sale. Like the Buyer Representation Agreement, the Listing Agreement lays out the terms of the commission the Realtor will be paid if you sell a property during the period of the agreement.

When you sign a Listing Agreement, you’re authorizing your Realtor to actively list (on MLS) and market your property for sale, which can include marketing your property through both agent and public open houses, through print and digital advertisements, and to fellow Realtors who may have a potential home buyer well suited for your property.

Your Realtor will still be obligated to put your best interests first and protect you as the home seller while maintaining confidentiality and negotiating on your behalf.

FINTRAC – OREA FORM 630

FINTRAC – known as the Individual Identification Information Record – is prepared by the Canadian Real Estate Association (CREA) to assist Realtors in complying with certain requirements laid out by the Government of Canada. FINTRAC stands for Financial Transactions and Reports Analysis Centre of Canada.

As FINTRAC explains, this organization’s mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information under its control.

The most important thing for home buyers and home sellers to be aware of with FINTRAC is that this record must be completed by the Realtor and kept on file at their Brokerage.

AGREEMENT OF PURCHASE AND SALE – OREA FORMS 100 AND 101

When it comes to the Agreement of Purchase and Sale, Form 100 relates to the purchase of a freehold property, whereas Form 101 relates to the purchase of a condo.

This Agreement is the real estate form used to purchase a property and negotiate the terms of the sale. It’s often referred to as an “Offer”!

With this real estate form, the home buyer has the opportunity to set out, in detail, all of the terms and conditions they want included in their offer when buying the home seller’s property. In Ontario, a real estate transaction has to be in writing to be made legal, so the Agreement of Purchase and Sale is the legal real estate form that defines the terms and conditions of your offer to purchase a property.

With the Agreement of Purchase and Sale, there are two scheduled attached to the agreement: Schedule A and Schedule B. Let’s break those two down!

Schedule A – this is created by the Realtor representing the home buyer, and includes all conditions and terms of the sale. These are the conditions favourable to the home buyer, and the Schedule A is where these conditions are outlined (like financing, home inspection, etc) along with any other terms.

Schedule B – this is created by the Realtor representing the home seller, and brings to everyone’s attention certain procedures (like banking days and deposit deadlines). Your Realtor will help explain the Schedule B to you.

A few things to keep in mind about the Agreement of Purchase and Sale:

• Time limits placed on this Agreement are important – that means that if an agreement expires at 10am, it cannot be accepted at 10:01am (for example).
• All negotiations made between a home buyer and a home seller have to be in writing in order to be legal (otherwise, they’re not valid)
• Like all real estate forms and documents, the Agreement of Purchase and Sale can be signed electronically

CONFIRMATION OF COOPERATION – OREA FORM 320

The Confirmation of Cooperation is signed along with the Agreement of Purchase and Sale. It reiterates the terms laid out in Form 810 (“Working With a Realtor”), because it indicates to everyone involved the specific types of relationships (client or customer) that exist in the real estate transaction.

OFFER SUMMARY DOCUMENT – OREA FORM 801

The Offer Summary is for use with the Agreement of Purchase and Sale and is meant to act as a summary of the Agreement of Purchase and Sale.

REBA, which is the Real Estate and Business Brokers Act 2002, requires that Brokerages maintain a record of all written offers related to the sale of a property. So, the Offer Summary acts as that record, and records the submission and presentation of the offer that’s presented for the purchase of a property.

WHAT ABOUT ONTARIO REAL ESTATE COMMISSION?

Real estate agents in Ontario get paid through commission, which is calculated based on a certain percentage of the price of a home. Realtors are only paid upon the successful close of a property.

That means, for example, that if a Realtor is working with a Seller and their client’s home doesn’t sell, the Realtor doesn’t get paid.

When do you pay real estate commission in Ontario?

In Ontario, it is typical that the home Sellers pay the real estate commission, not the home Buyer. So when you are planning to buy a home in Ontario and you use a real estate agent, there is typically no fee’s charged to the buyer to use there service.

But there’s more to it than that!

Ontario real estate commissions are paid directly to the real estate Brokerage that listed the property for sale. That means that commissions are not paid to the individual Realtor you work with.

Questions? Get In Touch

If you have any further questions, or need further clarification on Ontario Real Estate Forms Explained please feel free to book a free buyer or sellers consultation with Realtor Sean Findlay at 905-450-8300 or email Sean.Findlay@Century21.ca.