Acknowledgement Section of the Agreement of Purchase and Sale (Ontario)

Question:

What is the purpose or reason behind having a client date and sign and then date again? Why the two dates?

Here’s what it says:

I acknowledge receipt of my signed copy of this accepted Agreement of Purchase and Sale and I authorize the Brokerage to forward a copy to my lawyer.

Answer:

This is simply to acknowledge receipt of a copy. There is an obligation placed upon the registrant to ensure that parties to a transaction have copies (s. 28 Code). So, this is intended to be evidence of compliance.

It also contains the authorization to deliver a copy to the party’s lawyer.

Second

Acknowledgement Section on Page 4 of the Agreement of Purchase and Sale (Ontario)

Question:

What is the purpose or reason behind having a client date and sign and then date again? Why the two dates?

Here’s what it says:

ACKNOWLEDGEMENT The Seller(s) hereby acknowledge that the Seller(s) fully understand the terms of this Agreement and have received a true copy of this Agreement

Answer:

There are “Non Est Factrum” Defences (I didn’t know what I was signing) but it is very difficult to prove.

This type of document doesn’t exist in ordinary commercial practice, nor does it exist in most other legal jurisdictions. It’s an OREA document.

Also, it’s strange. I don’t think most people know the meaning of a “true copy”, such that they could explain it, if asked.

Also, John and Mary own a property. They are getting a divorce. The Agent meets with them separately. Note that Mary says that John understood and John says that Mary understood. I don’t think the Agent explained that to either of them!

Would the best evidence that the Clients received a full and complete copy of everything not be the email where you sent them everything?

How often do you see this Acknowledgement signed and the parties are still negotiating?  I mention this in every lawsuit, where it comes up.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com