Mutual Release: Where’s the Spousal Consent?
Question:
Form 122, the Mutual release – why doesn’t this form offer “Spousal Consent”. I mean, spouse has to sign the Agreement of Purchase and Sale, so why would they not have to sign the Mutual Release?
Answer:
Interesting question. The Spouse needs to sign the Spousal Consent to confirm that they will not be claiming their right to possession under the Family Law Act.
However, they may not be signing an actual “agreement”. That would only be the case, if they signed under seal. If they do that, then they are bound. Otherwise, it’s simply a “gift”, they can change their mind, later on, if they like.
There is no consideration. They are not receiving anything in exchange for their giving up “possessory rights”. So, there’s really no need to release anything.
Form 122 is the Mutual Release. The Agreement of Purchase and Sale said that they got nothing. It was a one-sided deal. So, they don’t get to deal with the issue of money or where it goes.
Brian Madigan LL.B., Broker