Add Party and Amend Deposit Clause

How to Deposit Cash to an Online Bank

Adding another Buyer by Amendment in Ontario

From time to time only one of the prospective Buyers is able to execute the Agreement. For the purposes of mortgage financing, the Lender may require another Buyer to be added to the Agreement.

This is the provision which you would add:

INSERT:

  1. By executing this Amendment John Smith agrees to be bound by the terms of the Agreement of Purchase and Sale dated 26 October 2022 together with Schedules A and B, which are attached as an Appendix hereto and initialed, as if he had executed such documents at the time of the original acceptance.

What About the Deposit?

There is also a question about the deposit. Mary Smith had initially advanced the sum of $50,000.00 to the Listing Brokerage in trust. No further deposit is to be advanced.

So, the question is: if the transaction were to fail and the deposit were to be returned to the Buyers, who is entitled to the deposit?

Answer: Just Mary

INSERT:

  1. John Smith agrees that the deposit paid by Mary Smith pursuant to the terms of the Agreement of Purchase and Sale dated 26 October 2019 shall remain the sole property of Mary Smith, and in the event that the Trustee is obligated to return the deposit the Buyers, that the entire deposit together with any interest accrued thereon shall be paid to solely to Mary Smith.

Answer: Mary and John equally

INSERT:

  1. The Buyers, Mary Smith and John Smith, agree that the deposit paid by Mary Smith pursuant to the terms of the Agreement of Purchase and Sale dated 26 October 2019 shall be the property of  Mary Smith and John Smith equally, and in the event that the Trustee is obligated to return the deposit the Buyers, that the entire deposit together with any interest accrued thereon shall be paid to Mary Smith and John Smith equally.

Naturally, there are other ways of adding a party, for example, winding up the first Agreement and executing a new Agreement, or simply a Solicitor’s Title Direction.

Brian Madigan LL.B., Broker

wwwOntarioRealEstateSource.com

Leave a Reply

Your email address will not be published.