
The standard form OREA Agreement of Purchase and Sale covers institutional mortgages. However, oftentimes there are other liens etc. which should be handled in the same way.
The following clause could be added to Schedule B”
“The parties agree that the Buyer will accept the Seller’s solicitor’s undertaking to discharge any liens, charges, mortgages or notices with respect to the property, the fixtures or chattels as soon as possible following the closing.”
This way liens on furnaces and other items could be handled in the same way as institutional mortgages.
Sometimes, the Seller does not have sufficient funds to pay them off in advance of the closing. This way, the closing funds can be used to make the payment and the discharge will follow.
Brian Madigan LL.B., Broker