What is Form 572?
A Mutual Release Agreement of Purchase and Sale is a simple document that is used to release both the buyer and the seller from any future obligations in regard to the purchase and sale of a property. Form 572 is typically used when the buyer and seller have come to an agreement outside of the traditional purchase and sale process, such as through a private sale or short sale. In either case, the agreement should spell out the terms of the release, including any financial compensation that may be due.
Also referred to as Mutual Release, it’s a document created to be signed by both parties of a real estate deal (the seller and the buyer) for the purpose of canceling the agreement of purchase and sale. Therefore, upon execution, the document ‘releases’ the parties from any mutual responsibilities or potential claims. Naturally, the OREA Mutual Release form requires consent of both sides and cannot come into effect without both sides agreeing to the terms.
What is Form 572 used for?
A mutual release agreement can be used to end a business relationship for any reason. Perhaps the parties have simply decided to go their separate ways, or maybe one party has breached the terms of the agreement. In either case, a mutual release can provide a clean break for both parties.
The form is used for:
- terminating the initial agreement for any reason;
- making this cancellation fully legitimate and i.e., valid.
Whether one of the parties made a decision to go a different route, or one party broke the terms of the agreement, OREA Form 572 is a great way of freeing yourself from a contract that is no longer satisfying.
Regarding the Mutual Release agreement template, it is used to structure the needed document in the fastest and most effective way possible. Here in our ample library of niche-specific forms, you’ll discover a treasure trove of industry-specific pre-made fillable templates, using which is a lot more time-saving than creating new docs from square one.
How to Fill Out Form 572
When two sides of the real estate deal decide to end their agreement, the OREA Mutual Release form is exactly what is needed. Here’s a concise guide on how to fill it out online via our platform:
- Log in to PDFLiner.
- Find the form by using our search facility.
- Load the document.
- Start filling it out.
- Indicate the names of the buyer and the seller.
- Mention the brokerage involved.
- State the date of the agreement.
- Provide details about the property being sold.
- State the price in Canadian dollars.
- After reading the statement releasing both parties of the deal from any future liabilities, add your signature to the doc, along with the current date.
When filling out the form, be straightforward and accurate. The document should outline the terms of the release, along with any financial compensation involved. Don’t forget to ask your attorney to review the document and confirm it’s properly completed. Naturally, filling out the file is best online. It’s fast, convenient, and out-of-this-worldly time-saving.
How to submit Form 572?
When you are ready to finalize your 572 forms, you and your real estate agent will sign and submit the form to your lender. The lender will then review the APS and, if everything is in order, will provide you with a mutual release.
The document should be signed and forwarded to the buyer’s attorney or notary. When the file is ready, the purchaser has five days for penalty-free agreement cancellation. Considering online submission? Good for you. PDFLiner has got you covered here, too
Who should sign Form 572?
Both parties (property buyer and seller) should sign the form. Alternatively, it can be signed by real estate agents that represent both sides of the deal. That way, the terms of the document become valid and fully enforceable. You’re welcome to add e-signatures to your files via PDFLiner. It’s speedy, convenient, and absolutely effortless.
Organizations That Work With the Form
- OREA;
- law firms;
- real estate companies.
Related Content - Form 572, Mutual Release - Agreement of Purchase and Sale
