Why You Should Always Review Your APS with a Real Estate Lawyer in Ontario
Buying a home is one of the biggest financial and legal commitments most people will make in their lifetime. In Ontario, the Agreement of Purchase and Sale (APS) is the legally binding contract that outlines all the terms of your real estate transaction—from price and deposit to conditions and closing details. While it may appear straightforward at first glance, the APS is full of legal obligations that can have lasting consequences.
That is why reviewing the APS with a qualified real estate lawyer is essential.
What Is the Agreement of Purchase and Sale (APS)?
The APS is the contract between the buyer and seller that sets out the terms of the real estate deal. It covers key aspects like:
Purchase price and deposit structure
Closing date
Conditions (e.g. financing, home inspection, review of status certificate for condos)
Inclusions and exclusions (e.g. appliances, light fixtures)
Title matters and legal rights
Responsibilities for repairs or property condition
Once both parties sign, the APS becomes legally binding. This means you are contractually obligated to fulfill its terms—so it’s crucial to know exactly what you are agreeing to before signing or waiving conditions.
Why It’s Critical to Review the APS with a Real Estate Lawyer
While your real estate agent can explain the business terms of the deal, only a lawyer can give you legal advice. Here’s why involving a lawyer early in the process is so important:
1. Understanding Legal Obligations
A lawyer can explain your rights and obligations under the contract in plain language.
For example:
What happens if you want to back out of the deal?
Who is responsible for issues discovered before closing?
What are the consequences of missing a condition deadline?
2. Identifying Risks and Red Flags
Real estate lawyers are trained to spot clauses that may be unfair, vague, or risky.
They can also advise on:
Unusual conditions or seller-drafted clauses
Restrictions on property use or title issues
Hidden liabilities like outstanding utility bills or taxes
3. Customizing Conditions to Protect You
Your lawyer can tailor the APS to include buyer protections, such as:
Financing conditions with adequate time for approval
Inspection clauses that allow for renegotiation or withdrawal
Review of condo status certificates to assess financial health
Common Mistakes Buyers Make When Reviewing the APS Themselves
Many buyers assume they can review the APS on their own or rely solely on their agent. Unfortunately, this often leads to costly mistakes. Common oversights include:
Failing to include or understand conditions: Not having proper financing or inspection conditions can leave you trapped in a deal.
Misunderstanding inclusions and exclusions: Items like appliances or fixtures may be assumed to be included—but aren’t unless clearly stated.
Ignoring title or zoning issues: Buyers often miss clauses that can affect future renovations or property use.
Overlooking deadlines: Important deadlines, such as for waiving conditions or providing documents, can be missed without proper guidance.
Assuming the contract is “standard”: No APS is truly “standard.” Even small changes in wording can significantly alter your rights and responsibilities.
When Should You Involve a Lawyer?
The best time to consult a lawyer is before you sign the APS, or at the very least, before waiving any conditions. Even if the offer has already been accepted, there may still be time to adjust terms or add conditions during the conditional period.
For pre-construction purchases or assignments, legal review is even more important. These contracts are often lengthy, complex, and heavily favour the builder or assignor.
Final Thoughts
Buying a property is a major investment—and the Agreement of Purchase and Sale is at the heart of that transaction. Don’t risk misunderstanding or overlooking critical terms. A real estate lawyer will ensure your rights are protected, help you understand what you’re signing, and provide peace of mind throughout the process.
If you’re planning to buy a home or investment property in Ontario, our team is here to help. We review APS agreements for buyers and guide you through every step to ensure a smooth, informed purchase.
Author:
Rina You
Partner
e: ryou@realtycarelaw.com