6 Hidden Traps in Your Ontario Purchase Agreement (APS)
Ontario · Home Buying
6 Hidden Traps in Your Purchase Agreement (APS)
Read this before you sign — your agent should catch these ↓
In Ontario, the contract you sign when buying a home is called an APS — Agreement of Purchase and Sale, standardized as OREA Form 100. This isn’t a casual letter of intent — once both parties sign, it’s a legally binding contract. Most buyers focus on the price and overlook the fine print. Here are 6 traps that could cost you thousands👇
⚠️ 6 contract pitfalls
1
Chattels vs Fixtures What’s included may surprise you
That fridge, dishwasher, and washer-dryer you saw during the showing — who do they belong to? The key distinction: Fixtures (attached items) are included by default; Chattels (moveable items) are not. A chandelier is a fixture, but the seller can exclude it in the contract. Appliances are chattels — if the contract doesn’t say “Included,” the seller can legally take them. Always list every item you want in the Chattels Included section.
2
Condition Deadlines Miss one day, lose your protection
Financing condition, inspection condition, status certificate review — each has a firm deadline. If you don’t provide written notice before the deadline, the contract may terminate automatically — or worse, you may be deemed to have waived the condition. “Written notice” is the key phrase — verbal doesn’t count. Make sure your agent and lawyer track every deadline.
3
Schedule A — The Hidden Clauses Where the real terms live
Many buyers only read the main APS form and skip Schedule A. Schedule A contains the additional clauses — financing conditions, inspection terms, seller maintenance promises, and more. This is often where disputes originate. If your agent hasn’t walked you through every clause in Schedule A, ask. Don’t sign what you don’t understand.
4
Rental Items The hot water tank trap
Section 6 of the APS lists rental items — the hot water tank, central air, alarm system, or water softener may not be owned by the seller. They’re rented from a utility company or third party. After closing, you inherit the rental agreement — typically $30-60/month, or $3,000-$5,000 to buy out. Always check the rental terms before signing.
5
Closing Adjustments The surprise bill on closing day
Closing day isn’t just “pay and get keys.” Your lawyer calculates prorated adjustments for property tax, utilities, and condo fees. If the seller prepaid the full year’s property tax, you reimburse them for the remaining months. These adjustments can add $2,000-$5,000 to your closing costs. Ask your lawyer for an estimate well in advance.
6
Breach Consequences It’s not just about losing the deposit
Many buyers think “worst case, I lose my deposit.” In reality, the seller can sue you for the price difference plus legal fees and commissions. Example: you signed at $1M then walked away. The seller resells at $950K — you could owe them $50K+ in damages. In Ontario, once conditions are waived, backing out is extremely costly.
💡 Arthur’s Advice
The contract is the most important part of buying a home — more important than the showing. Never sign anything you don’t fully understand. A good agent walks you through every clause. A good lawyer reviews before you sign. If your agent just says “sign here, sign here” — get a new agent.
