A Canadian Purchase Agreement for real property is a legally binding contract between a buyer and a seller that sets out the terms and conditions for the sale and transfer of land, a house, a condominium unit, or other real estate. It is the foundational document in every Canadian real estate transaction, establishing the purchase price, deposit, closing date, conditions, and the obligations of each party from acceptance through to the transfer of title.

Real property transactions in Canada are governed by provincial land registration systems. Most provinces operate under a Land Titles system (Torrens system) — including Alberta (Land Titles Act, R.S.A. 2000, c. L-4), Saskatchewan, Manitoba, and BC — which provides guaranteed title backed by a government assurance fund. Ontario operates a dual system where older properties may still be under the Registry system, though the province has largely converted to Land Titles under the Land Titles Act (R.S.O. 1990, c. L.5). Quebec uses its own civil law system of land registration under the Civil Code and the Act respecting the cadastre.

Land transfer tax is a significant cost in Canadian real estate purchases. Ontario imposes a graduated land transfer tax of 0.5% to 2.5% of the purchase price, with an additional municipal land transfer tax in Toronto. BC charges a Property Transfer Tax of 1% to 5% depending on value, with a foreign buyer surcharge in certain areas. Alberta does not charge a land transfer tax but levies a land title transfer fee. First-time homebuyer exemptions or rebates are available in several provinces.

GST/HST applies to new construction and substantially renovated residential properties under the Excise Tax Act, but not to the resale of existing homes. The buyer of a new home may qualify for the GST/HST New Housing Rebate. Commercial real estate transactions are generally subject to GST/HST. In all provinces, a lawyer or notary (in BC and Quebec) is required to complete the transaction, register the transfer of title, and handle trust account disbursements.

When a buyer makes an offer to purchase a residential property — a detached home, semi-detached, townhouse, or condominium — and both parties need a binding agreement that locks in the price, deposit, closing date, and any conditions such as financing approval, home inspection, or sale of the buyer's existing property.

When a buyer is purchasing new construction directly from a builder or developer and the agreement must address construction timelines, tarion warranty coverage (Ontario) or equivalent provincial new home warranty programs, GST/HST obligations, and the builder's right to substitute materials or modify floor plans.

When an investor is acquiring a multi-unit residential property, commercial building, or mixed-use property and the agreement must address tenant assignments, rent rolls, property condition due diligence, environmental assessments, and the allocation of property tax and utility adjustments at closing.

When a buyer is purchasing a condominium unit and the agreement must include the statutory condition period (10 business days in Ontario under the Condominium Act, 1998) during which the buyer can review the status certificate and rescind the agreement without penalty.

When the purchase is financed by a mortgage and the agreement must include a financing condition giving the buyer a specified number of days to secure mortgage approval, with the right to terminate and recover the deposit if financing is not obtained.

Without a written purchase agreement, neither party has an enforceable commitment. The buyer risks losing the property to another offer, the seller risks the buyer walking away after incurring costs, and neither party has clear remedies for breach.

Property Description — The full legal description of the property (lot, plan, and PIN or PID number), the municipal address, and a description of what is included in the sale: land, buildings, fixtures, chattels (appliances, window coverings, light fixtures), and any exclusions. Disputes over what is a fixture versus a chattel are among the most common post-closing issues.

Purchase Price and Deposit — The total purchase price in Canadian dollars, the deposit amount (typically 5% of the purchase price), the deadline for delivering the deposit, and the trust account where the deposit will be held (usually the listing brokerage's trust account or the seller's lawyer's trust account). Specify the conditions under which the deposit is refundable.

Conditions — Any conditions that must be satisfied before the agreement becomes firm and binding: financing approval (within a specified number of business days), satisfactory home inspection, review of the condominium status certificate, sale of the buyer's existing property, or satisfactory environmental assessment. Each condition must specify a waiver deadline and the consequences if the condition is not satisfied or waived.

Closing Date and Adjustments — The date on which title transfers and possession occurs. Include provisions for adjusting property taxes, utilities, condo fees, and rental income as of the closing date. Specify whether closing is subject to the lawyer's ability to register the transfer electronically through the provincial land registration system.

Title and Encumbrances — The seller's warranty that they have good and marketable title, free from encumbrances except permitted ones (registered easements, restrictive covenants, municipal agreements). Address the buyer's right to obtain title insurance as an alternative to a full title search.

Land Transfer Tax — Identify which party is responsible for land transfer tax (the buyer in all provinces) and note applicable first-time homebuyer exemptions. For properties in Toronto, address the additional municipal land transfer tax.

GST/HST — State whether the purchase price includes or excludes GST/HST. For new construction, specify the applicable tax rate and whether the buyer is eligible for the New Housing Rebate. For commercial properties, address whether the transaction is subject to GST/HST or whether the buyer and seller will file a joint election under ETA s. 167.

Representations and Warranties — The seller's representations regarding the property's condition, known defects, environmental contamination, compliance with zoning bylaws, outstanding work orders, and the accuracy of the property survey. Include a survival clause specifying how long representations and warranties remain enforceable after closing.

Default and Remedies — The consequences if either party fails to close: the buyer's right to return of the deposit or specific performance (forcing the sale), the seller's right to retain the deposit as liquidated damages, and each party's right to pursue additional damages at law.

Governing Law — The province whose Land Titles Act, land transfer tax legislation, and real estate regulations govern the transaction, and the courts with jurisdiction over disputes.