Definition and Purpose of OREA Form 120
OREA Form 120 is a legal document used in real estate transactions in Ontario, Canada. Its primary purpose is to amend a previously signed Agreement of Purchase and Sale (APS) after both the buyer and seller have accepted the terms. This form allows parties to officially modify details such as closing dates, purchase prices, or specific conditions outlined in the original agreement. It is crucial for ensuring that all changes are documented and agreed upon by all parties involved, thus maintaining transparency and legal integrity.
How to Use the OREA Form 120
Using the OREA Form 120 involves several steps to ensure that the amendments are legally binding. First, all parties must agree on the changes to be made. Once consensus is reached, the form should be filled out accurately, reflecting the new terms. Each party must then sign the document to validate the amendments. It is important to keep a copy of the amended agreement for future reference and to ensure that all parties have access to the updated terms.
Obtaining the OREA Form 120
The OREA Form 120 can be obtained from various sources. It is available through the Ontario Real Estate Association (OREA) website, where users can download it in PDF format. Additionally, real estate professionals often have access to the form and can provide it to clients. It is essential to ensure that the most current version of the form is used to avoid any legal issues.
Filling Out the OREA Form 120
Filling out the OREA Form 120 requires attention to detail. The form typically consists of sections where parties can specify the changes being made. Important details to include are:
- Identification of Parties: Clearly state the names of the buyer and seller.
- Original Agreement Details: Reference the original APS, including dates and terms.
- Amendments: Clearly outline the specific changes, such as new closing dates or adjusted prices.
- Signatures: Ensure that all parties sign the document to make it legally binding.
Steps to Complete the OREA Form 120
To complete the OREA Form 120 effectively, follow these steps:
- Review the Original APS: Understand the terms that need to be amended.
- Discuss Changes: Communicate with all parties to agree on the modifications.
- Fill Out the Form: Enter the necessary information accurately.
- Sign the Document: Ensure all parties sign the form.
- Distribute Copies: Provide each party with a copy of the signed amendment.
Importance of the OREA Form 120
The OREA Form 120 plays a vital role in real estate transactions. It formalizes changes, ensuring that all parties are aware and in agreement with the new terms. This helps prevent disputes that may arise from misunderstandings about the agreement. Additionally, having a documented amendment provides legal protection for all parties involved, as it serves as evidence of the agreed-upon changes.
Who Uses the OREA Form 120
The OREA Form 120 is primarily used by various stakeholders in the real estate sector, including:
- Real Estate Agents: Professionals who facilitate transactions between buyers and sellers.
- Homebuyers and Sellers: Individuals directly involved in the transaction who need to amend their agreements.
- Legal Professionals: Lawyers who assist in real estate transactions and ensure compliance with legal standards.
Key Elements of the OREA Form 120
Key elements of the OREA Form 120 include:
- Identification Section: Details of the buyer and seller.
- Reference to Original Agreement: Information about the original Agreement of Purchase and Sale.
- Amendment Details: Specific changes being made, including any new conditions or terms.
- Signatures: Required signatures from all parties to validate the amendments.
Examples of Using the OREA Form 120
There are several scenarios where the OREA Form 120 may be utilized:
- Changing Closing Dates: If a buyer needs more time to secure financing, they can use the form to extend the closing date.
- Adjusting Purchase Price: If negotiations lead to a new price, the form can document this change.
- Modifying Conditions: If additional conditions need to be added or removed, the form serves to officially record these changes.
