Agreement is Null and Void

The Agreement is null and void, not the Offer.

Here’s some standard wording currently in use:

“Condition – Arranging New Mortgage Satisfactory to Buyer

This Offer is conditional upon the Buyer arranging, at the Buyer’s expense, a new ______________________ Charge/Mortgage satisfactory to the Buyer in the Buyer’s sole and absolute discretion. Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than ________ on the ______ day of ________________ , (a.m./p.m.) 20 _____ , that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer’s sole option by notice in writing to the Seller as aforesaid within the time period stated herein.”

It’s important to note that that the Offer has long since come and gone. Once the Offer was accepted, we have an “Agreement of Purchase and Sale”.

In line 5, we do properly reference the document noting: “this Agreement of Purchase and Sale”.

However, by line 8, we actually have a problem, it says:

“this Offer shall be null and void”.

It doesn’t say:

“This Agreement of Purchase and Sale shall be null and void.”

At this point in time, there is no Offer whatsoever, so, the result of it going “null and void” really has no meaning. You want to say that the Agreement went null and void.

Here’s what the document should say:

“This Offer is conditional upon the Buyer arranging, at the Buyer’s expense, a new ______________________ Charge/Mortgage satisfactory to the Buyer in the Buyer’s sole and absolute discretion. Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than ________ on the ______ day of ________________ , (a.m./p.m.) 20 _____ , that this condition is fulfilled, this Agreement of Purchase and Sale shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer’s sole option by notice in writing to the Seller as aforesaid within the time period stated herein.”

You are allright with the reference to Offer in line 1, because it was indeed an Offer at that point in time. Then, you had an Agreement and now you wish to have that Agreement become null and void because you were unable to arrange for financing.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com