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What is OREA Form 122?
OREA standard 122 Form is a one-page document in which the parties refuse to proceed with the transaction for the purchase or sale of a property. Both the buyer and the seller must come to such a decision for the mutual release form Ontario to be considered valid.
Although the template requires the signatures of all participants, there is usually a stage before the transaction withdrawal when one party, which has lost interest in buying or selling, should convince the other to withdraw from the agreement. As a rule, this may be inconvenient or disadvantageous for some participants. For example, the seller will have to re-list their property for sale. However, they cannot force the original buyer to continue the transaction.
What is OREA mutual release form used for?
OREA Form 122 is used when the parties decide to terminate a real estate purchase or sale transaction. It can happen for two reasons:
- The stipulated conditions were not met. The contract usually prescribes the terms of the purchase, dates, amounts of compensation, and so on. If any of these conditions are not met, it might automatically release the parties from continuing the transaction. Although it can still bring some discomfort (usually to the seller), in such situations, there are usually no problems with signing a mutual release real estate.
- One party intends to back out of the deal (usually the buyer). This situation provides for a unilateral refusal, which is inconvenient for the other party to the agreement. If the buyer is unwilling or unable, due to compelling reasons, to proceed with the transaction, they will have to convince the seller to sign a waiver. It usually happens through compensation.
As a result, whatever the situation may be, both parties should voluntarily sign the mutual release form real estate.
How to Fill out OREA Form 122 Mutual Release?
Although, unlike the contract, OREA Form 122 is a fairly simple document to fill out, you should still be careful. Your document should contain the following information:
- names of the buyer and seller, as well as listing and co-op brokerage data;
- details of the contract and the description of the property in question;
- instructions regarding the deposit payment and a written release of the parties from other responsibilities;
- conditions of irrevocability and cancellation of this mutual release;
- signatures of the seller, buyer, witnesses, and the listing brokerage manager.
Once all parties to the original agreement have signed this Mutual Release Agreement of Purchase and Sale, it comes into effect.
How to submit Mutual Release Form Real Estate Ontario?
The agreement to refuse to continue the transaction should be discussed in advance. This document is only a written record of the fact of refusal. The parties should discuss conditions and possible compensations beforehand since they are not specified in the mutual release.
When the parties to the transaction have come to an agreement to terminate the contract, they must put in their signatures. They can do it in any way they like. You can send the document for signature electronically or print and hand in a physical copy in person.
Any version of the signature is considered valid and legally binding. Please make sure that all participants, including lawyers and brokers involved in this transaction, have copies of this document.
Who should sign OREA mutual release Form 122?
Upon completion of the termination negotiations, both parties should sign the standard form 122 completed by their broker. Only when both the buyer and the seller agree to the terms and have signed their names, such a refusal is considered valid and releases all participants from any obligations stipulated by the original contract. Also, in this document, as in any other form for the real estate purchase and sale, there must be signatures of witnesses who confirm that the buyer and seller participate in this voluntarily.
Besides, at the bottom of Form 122, the listing brokerage manager who deals with this matter and seals the files should put their signature as well.
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Fillable online OREA Form 122, Mutual Release - Agreement of Purchase and Sale