The standard “purchase and sale contract” form assumes that the contracting parties wish to use one or more subject clauses. The standard form contract is partly included in clause 3: in the proposal for sales contracts, licensees must take into account the specific requirements of the seller and buyer. The main concerns are the interest rate to be paid, the payments on the purchase agreement and the duration of the agreement for the sale. The terms of the first underlying mortgage will influence the position of the adjudicating entities in the sale agreement. Some lenders do not allow a sale agreement to be adopted. It is important to ensure that clients have written confirmation from either the borrower or the borrower`s lawyer. If a seller or buyer does not personally enforce the option clause under the seal, but orders someone else to sign it as an agent, the licensee must take into account the following concerns. In Friedmann Equity Developments Inc. v. Final Note Ltd. (2000), 188 D.L.R.
(4.) 269, the Supreme Court of Canada confirmed that an agent who executes a secret agreement on his or her own behalf is personally liable if the agent does not disclose the name and existence of the agent`s sponsor. This is called the sealed contract rule. When an agent enters into a contract under the seal without disclosing the name and existence of his principal, the sealed contract rule makes the agent personally liable under the agreement. The rule also prohibits the client from taking action or being sued under the contract. To avoid personal liability under the sealed contract rule, a representative who signs an option contract under the seal on behalf of the seller or buyer must register both the identity of the client in whose name he or she signs and his or her representative status. Assuming that the seller gave the listing licensee a power of attorney for the execution of the option agreement. The licensee should sign the addition with the option clause under the seal, as follows: Things will be a little different when you come back, since we have put in place precautions COVID-19. Please allow extra time for your first visit, as you need to update your membership agreement and learn more about the new rules and the establishment. The seller or buyer may appoint someone (a real estate licensee or another person) to act on his or her behalf and even sign contracts as an agent, thus complying with the requirement to reduce the contract to the letter. However, as noted above, the rules require a licensee to request specific written instructions before signing documents on behalf of the client for whom he or she is acting as an agent. This authorization should specify the specific conditions under which the taker is allowed to sign. A telegram, letter or fax may be used for these purposes, but it must be received and in the hands of the licensee before he or she attempts to act on behalf of the principal.
Licensees should avoid signing documents on behalf of individuals on the basis of oral instructions.