APS agreement of purchase and sale APS in real estate. In Toronto and across Ontario, we use the APS as the core contract when buying or selling a home, condo, or investment property.
The APS spells out the purchase price, deposit amount, closing date and all other terms that both parties are obligated to adhere to. Creating safe, clear and fair deals starts with an understanding of APS.
In the following sections, we break down the key components and outline why each piece is crucial.
What is an APS Exactly?
An APS is the foundation of almost any property transaction in Toronto. It is an important cog in the transaction wheel across the GTA. We depend on it to define the nitty-gritty, including cost and closing date. This transparency provides both parties the confidence to understand what’s expected of them and where they should be at any point.
This agreement shall be binding upon all parties. Once executed, the contract legally obligates the buyer and seller to their commitments. Yet a built-in contingency, such as inability to obtain financing or passing a home inspection, offers an out. The conditions are spelled out in detail, usually in a separate Schedule “A.” It informs all parties as to what boxes need to be checked prior to the sale closing.
We’re learning that the APS is never a simple fill in the blanks form. Because it’s so flexible, it can be customized to serve the different needs of any given deal. For example, a buyer may wish for their contract to include a provision that makes the sale “contingent on the sale of their existing home.
Or perhaps a home seller has an upcoming deadline for repairs to be done before a home sale can proceed. All of this information is then baked into the contract itself. A second important date in each APS is the “requisition date.” Prospective buyers need to do their due diligence by Oct. 2025.
This means reviewing the property title, verifying zoning is appropriate for your needs and making sure all taxes are paid. If anything is amiss, the buyer’s attorney drafts a requisition letter to the seller’s attorney by this deadline.
What’s Inside Your APS?
1. Identifying Buyer and Seller
Each APS begins with identifying the buyer and seller thus establishing right away who the deal is between. We verify all legal names – no nicknames, no typos – because a mistake here can halt the entire transaction. If you’re purchasing with a spouse, partner, or business, whoever’s name needs to be right.
2. The Property Legal Description
We copy and paste the legal description used in the land registry. This is more than just the postal address. Rather, it’s those lot and plan numbers that connect the transaction to the correct parcel of earth.
With the amount of condo and subdivision development in Toronto, this accuracy is of utmost importance.
3. Agreed Purchase Price Details
We want to demystify what you’re paying and how. The base price should be part of that total. Adjustments for prepaid taxes, condo fee, and price changes following inspection/appraisal come into play. We’ve found that a lot of deals can turn on these dollar details.
4. Deposit Amount and Terms
The purpose of the deposit is to demonstrate the buyer’s good faith. We make sure the APS specifies the deposit amount and where it goes – which is usually the listing brokerage’s trust account.
Further, we discuss what would occur if the deal goes south. Losing a deposit hurts, so we don’t leave anything to chance.
5. Important Dates: Closing Day
Closing date is the finish line. The APS determines this date and others when deposits are due, when contingencies need to be released, etc.
We coordinate everyone’s schedule to make sure the move-in goes perfectly.
6. Conditions Protecting You (Financing)
For the majority of homebuyers, a mortgage is a requirement. Your APS should have a condition on the financing so you’re protected should the bank balk.
We always advise clarity: how many days you have to get that approval, and what happens if you can’t.
7. Conditions Protecting You (Inspection)
Home inspections are great at uncovering major defects. We do the drafting on your inspection clauses so you can either walk away or renegotiate when issues arise.
No surprises on closing day.
8. What Stays, What Goes? (Chattels/Fixtures)
We identify what stays – including appliances and light fixtures and even window blinds. The APS should be specific about what stays and goes so there isn’t any arguing about it afterwards.
We’ve witnessed fights over the most trifling items, so attention to minutiae is crucial.
9. Title Search Clause Explained
We conduct a complete title search to verify that the seller does own what they say they do. The APS provides an incredible opportunity to do this check well in advance.
Our unmatched title accuracy gives buyers and sellers peace of mind – no unknown liens, no unpleasant surprises.
10. Irrevocable Period: Time Limit
Every offer expires. Once signed, the APS is binding until that expiration. If one of the parties reneges before the deal is finalized, there are lawsuits or money down the drain involved.
We raise this red flag for our clients so that nobody gets surprised by it.
Why Your APS is Critical
The Agreement of Purchase and Sale (APS) is the backbone of any real estate deal in Toronto and the GTA. To us, the APS is the place where the little things add up. This is not just a form, it’s an important social contract.
It serves as a written blueprint for the deal, protecting your deposit and affecting literally every aspect of your real estate path. With no margin for error in Toronto’s fast-moving market, getting the APS right is critical.
Avoid Losing Your Deposit
Your APS is a legally binding contract. Once you sign, you and the other side are both committed to the agreement through its expiration date. If either of us defaults on the APS, as the buyer or as the seller, we stand to lose the deposit.
This deposit is usually between 5 – 10% of the purchase price. In Toronto, for example, that could be hundreds of thousands of dollars. We have seen examples where buyers backed out after signing.
In fact, in those instances, sellers retained the deposit money and alleged even more funds to relist the property. Our mission is to ensure that each term is clearly defined, all deadlines have passed, and your deposit remains secure.
Prevent Getting a Bad Deal
The APS lays out the purchase price, money to be put in escrow, closing date, and all other important details. Seemingly innocuous language, like listing which chattels are covered, can have catastrophic ramifications.
Moreover, there’s a headache waiting to happen if something were to break before closing. We generally go through every line item with you, putting conditions as appropriate in Schedule “A”.
Like if you need a little time to arrange financing or sell your current home – we put those protections in black and white. In this case, you’re able to walk away if those terms aren’t fulfilled, with your deposit in hand.
Sidestep Unexpected Hidden Costs
Toronto real estate transactions can have unexpected hidden costs. As long as your APS is written appropriately, it will save you these surprises. We ensure all disbursements, adjustments, and fees are explained in advance.
Our predictable, fixed closing costs provide you with peace of mind – $999* plus HST and disbursements for purchases – so there are no surprises. No surprise charges, no bend and twist additions.
This clarity is why our clients come back to us deal after deal to ensure their complex deals stay on track.
Ensure a Smooth Closing
The APS dictates when you can expect each major step of your closing to happen. The requisition date is the last chance buyers have to examine the title of the property. It’s their opportunity to express any issues or reservations to the seller.
It’s an important part of ensuring that you maximize and protect your investment. With our unmatched title experience – more than 27,000 closings and no title claims – we make this part of the process hassle-free.
We can provide remote signing and no upfront payment for your convenience. We look forward to working with you to ensure your closing is smooth, on-time and worry-free.
Common APS Mistakes to Avoid
When you’re dealing with Toronto real estate, speaking about the Agreement of Purchase and Sale (APS) takes a lot of precaution. Even minor mistakes can lead to major hassles later on. Buyers and sellers alike get into trouble by failing to pay attention to the details. Instead, they skip or speed through critical steps that create avoidable confusion and complications.
From our experience we can confirm that a deliberate, systematic strategy with an eye towards the details can save significant time, money, and heartache. Let’s take a look at the most common APS mistakes and how our approach fills the gaps on each one.
Signing Without Legal Advice
This can lead to some unfortunate outcomes. Signing without legal advice too often, buyers and sellers sign the APS before consulting a lawyer. Unlike an agreement you sign at a car dealership, this contract will tie you to its requirements.
Foregoing legal counsel invites the risk of long-term issues. With our remote in-person signing service and direct communication with legal professionals, we take the hassle out of legal review. Our lawyers and negotiators go line by line, explaining every clause, flagging unusual terms, and ensuring that your interests are protected.
We have experienced transactions fall apart because parties failed to notice omitted parties or vague language. For instance, if all of the buyers aren’t listed, title gets muddy. Our review process prevents these gaps before they become problems.
Removing Conditions Too Easily
Things like home inspections and the need for financing are conditions that are in place to protect you. We see most folks drop these too easily, trying to sweeten the pot on their offer. That’s a mistake.
Later uncovered defects or trouble with financing can be much more expensive. Our advice would be to always get something in writing and only agree to remove a condition when you’re absolutely sure. As an example, we ensure that inspection issues and finance are squared away before clients go firm.
This helps ensure there are no surprises during the negotiation process.
Assuming Items Are Included
One more frequent point of contention is items that are not clearly defined as included or excluded. Never take it for granted that the seller will remove appliances, fixtures or light fittings.
Not saying what is not included can lead to misunderstandings. We recommend clients create a list of everything that is included (or excluded) in the APS. What’s not included is not promised.
For instance, a purchaser could assume the refrigerator is included only to have it removed on move-in day. Here’s how our approach prevents these confusions.
Underestimating Closing Costs
Most clients shortchange themselves on how much closing will cost. Our closing costs are fixed in advance, so you have complete transparency – $999 plus HST and disbursements on purchases.
We itemize every cost, eliminating any unexpected costs. We emphasize the need for a reasonable title search date to prevent last minute delays. Our title record perfection gives us an edge.
Our no upfront payment guarantee means that you’re secure, from beginning to end.