Form 505, Schedule - Agreement of Purchase and Sale

What is OREA Form 505?

The Agreement of Purchase and Sale is a contract between a buyer and a seller for the purchase and sale of real property. The contract is a legally binding agreement between the parties and should be carefully reviewed by both the buyer and the seller before signing. OREA Form 505 Schedule is an addition to the main document used to make some adjustments to the text or add conditions that are not in the main text. It is a one-page file, most of which is an empty field where the seller or buyer can enter their conditions. Usually, Schedules are numbered or lettered, but this template is not. Each party may propose its own Schedule and number it accordingly.

What is Form 505 used for?

The agreement is used to outline the terms of the sale, including the purchase price, down payment, closing date, and other conditions of the sale. The OREA form 505 is also used to protect both the buyer and seller in the event that the sale does not go through. In the event of any misunderstanding or non-compliance by one of the participants with the described conditions, the signed agreement can be (and should be) used in litigation. Schedules for the main document are needed so that the parties can indicate some additional conditions, requirements, or details that are important to them but not provided for by the main template.

How to fill out OREA Form 505?

This document is a contract between the buyer and the seller and outlines the terms of the sale. Here is a step-by-step guide to filling out form 505:

1. The first section of the form is the header. Here, you will need to fill in the date of the agreement, the names and addresses of the buyer and seller, and the property address.
2. The next section is the purchase price. Here, you will need to enter the agreed-upon purchase price for the property.
3. The next section is the earnest money deposit. This is the money that the buyer will put down as a deposit on the property. 
4. The next section is the contingencies. Here, you will need to enter any contingencies that are part of the sale agreement. A contingency is typically something that must be met in order for sale to go through. For example, a contingency could be that the buyer must obtain financing in order to complete the purchase.
5. The next section is the signatures. This is where both the buyer and the seller will sign the agreement.

How to submit OREA 505 Form?

Since most modern companies prefer a paperless workflow, it is best to complete and submit documents electronically. However, a printed and manually completed contract is also considered valid. You can provide recipients with physical papers if it is more convenient for them or for you. Check the information entered for errors or typos, and if everything is fine, submit it to the Ontario real estate agencies that handle your transaction, in person, by mail, or online via email. All participants in the process must receive a copy of the final contract (Form 500), to which the OREA Form 505 PDF with additional conditions is attached.

Who should sign Form 505?

To submit Form 505 OREA, you will need to fill out the required information and pay the required fees. The form must be signed by both the buyer and the seller. Unlike the main contract (Form 500), where in addition to the main representatives of the parties, brokers who accompany the transaction, spouses, and witnesses must also sign their signatures, it is enough. Since this Schedule is invalid without the main agreement, only the seller’s and the buyer’s signatures should be at the bottom. At the same time, if Form 505 does not contain the signature of one of them, the conditions described in it cannot be considered valid and binding.