How Do I Read Between The Lines In Real Estate Contracts?

Saskatchewan real estate contracts run on standard forms from the Saskatchewan REALTORS Association, so the language that decides the deal is not the boilerplate but the conditions, deadlines and possession date typed into the blank fields. Read the financing, inspection and title conditions first, then have a lawyer review the whole document before you remove any of them.

Most offers to purchase in Saskatoon use a standard form, which means the printed clauses are largely the same from one contract to the next. What actually differs, and what decides whether the deal works for you, is what gets typed into the blanks: the purchase price, the deposit, the list of chattels included, the condition deadlines and the possession date. A buyer or seller who only skims the printed paragraphs and misses the typed-in details is the one who gets an unwelcome surprise later in the file.

The conditions are where most of the real negotiation lives. A financing condition gives the buyer time to confirm the mortgage is approved on the terms in the offer, not just pre-approved in principle. A home inspection condition gives the buyer a window to have the property inspected and, depending on how it is worded, either walk away or renegotiate based on what the inspector finds. A title condition lets the buyer's lawyer confirm through Information Services Corporation that title is clear of anything unexpected, such as an old caveat or an unregistered easement. A well drafted title condition also lets the lawyer confirm there is no lien or judgment registered against the property that would need clearing before funds release on possession day. Each condition has its own deadline, and missing one can mean losing the right to rely on it.

Possession date is another detail worth reading carefully, since Saskatchewan uses possession date rather than a possession day, and the two can be set on different days if the contract allows it. The list of chattels and fixtures included in the sale, such as appliances, window coverings or a shed, should also be spelled out explicitly rather than assumed, since a verbal understanding between the parties carries no weight once the paper is signed. The deposit itself is held in trust by the listing brokerage rather than paid to the seller directly, and it only releases according to the terms written into the contract once conditions are met or waived.

None of this replaces a lawyer's review. The Law Society of Saskatchewan regulates the lawyers who close these transactions, and a lawyer reviewing the contract before conditions are removed can catch a problem while there is still time to negotiate a fix, rather than after the deal is firm. Joel Dyck walks buyers and sellers through what each clause actually means in plain language before they sign, so nothing in the fine print catches them off guard later. Get your hand-reviewed valuation from Joel Dyck.