(Ontario)
Question:
What is the main benefit of having the acknowledgment completed on the sale purchase agreement
- REEBA requires the acknowledgment to be completed
No, this is not the case, other than the fact that REBBA does require the use of current Forms. It says “current” not OREA Forms.
2. It ensures lawyers will receive copy of the agreement
This portion provides the authorization to send it to the lawyer, but it certainly doesn’t ensure that it happens. It might, it should, but who knows! At least, we have something that will enable a Brokerage to send it to the lawyer.
3. It verifies to the exact time the offer was actually accepted
No, the Confirmation of Acceptance is supposed to do that.
4. It can prove that acceptance of agreement took place before the irrevocable period has expired
Yes, this actually is a possibility, but just pure happenstance. Quite frequently, this Acknowledgement section will be completed afterwards. Most of the time, the APS will show a short irrevocable and you will need a COA to check the time. However, with a long irrevocable which stills runs until this Friday, the fact that the party acknowledged receipt of their copy on Monday would “prove” acceptance.
Brian Madigan LL.B., Broker