Rural Recreation
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RURAL RECREATION (REC)
A) LAND RESTRICTIONS
| REC - 01 | Crown Restrictions |
| REC - 02 | Environmental Issues - Release of Documents from Appropriate Ministries |
| REC - 03 | Condition: Hazard Land, Flood Plain, Environmentally Protected Zone |
| REC - 04 | Shore Road Allowance (Acknowledgement/Without Encroachments) |
| REC - 05 | Shore Road Allowance (Acknowledgement/With Encroachments) |
| REC - 06 | Condition: Water Frontage - Dimension/Shore Road Allowance/Unregistered |
| REC - 07 | Landlease - Buyer to Assume |
| REC - 08 | Landlease - Option to Purchase |
| REC - 09 | Landlease - Condition Upon Lessor's Approval |
(B) BUILDINGS AND IMPROVEMENTS
| REC - 10 | Docks/Boathouses - Seller Warranty (Including Reference to Conservation and/or Canal Authorities) |
| REC - 11 | Conditional Upon Docks/Boathouses - Buyer's Condition (Including Reference to Conservation and/or Canal Authorities) |
| REC - 12 | Docks/Boathouses - Seller Warranty (Including Reference to Conservation and/or Canal Authorities) |
| REC - 13 | Conditional Upon Docks/Boathouses - Buyer's Condition (Including Reference to Conservation and/or Canal Authorities) |
| REC - 14 | Location of Buildings/Driveways |
| REC - 15 | Conditional Upon Satisfactory Soil Test |
(C) ACCESS
| REC - 16 | Conditional Upon Road Access to Public Highways |
| REC - 17 | Conditional Upon Road Access by Open Public Road |
| REC - 18 | Road Access - Alternatives |
| REC - 19 | Road Access - Privately Maintained Road |
| REC - 20 | Road Access - Unregistered Easement (Trespass Access) |
| REC - 21 | Water Access |
(D) SERVICES (WATER & SEWERS)
| REC - 22 | Conditional Upon Sewage Systems - Buyer's Conditions - Approvals and Good Working Order |
| REC - 23 | Sewage System - Seller's Warranty - Good Working Order |
| REC - 24 | Sewage Systems - Seller's Warranty - Approvals and Good Working Order |
| REC - 25 | Water Potability - Seller's Warranty (Seller Knows Water Quality) |
| REC - 26 | Conditional Upon Water Supply and Potability - Buyer's Condition All Well Types |
| REC - 27 | Water Supply - Seller's Warranty - All Well Types |
(E) MISCELLANEOUS
| REC - 28 | Environmental Warranty |
| REC - 29 | Environmental Condition |
| REC - 30 | Agricultural Activities Acknowledgement |
| REC - 31 | Farm Tax – Buyer's Acknowledgement |
(A) LAND RESTRICTIONS
REC - 01 Crown Restrictions
The Seller hereby declares to the Buyer, and the Buyer acknowledges, understands, and accepts that this property is subject to certain reservations of the Crown, specifically but not limited to the fact that the [describe specific limitations and reservations] have been reserved.
REC - 02 Environmental Issues - Release of Documents from Appropriate Ministries
The Seller authorizes the [insert appropriate Ministry], to release to the Buyer, his Representative or Solicitor, any and all information that may be on record in the Ministry's office with respect to the said property.
REC - 03 Condition: Hazard Land, Flood Plain, Environmentally Protected Zone
This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that no portion of the property has been designated as hazard land, flood plain, or an environmentally protected zone.
Unless the Buyer gives notice in writing delivered to the Seller not later than _____ p.m. on the ______ day of __________, 20___, that this condition has been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.
REC - 04 Shore Road Allowance (Acknowledgement/Without Encroachments)
The Buyer acknowledges that the original shore road allowance is not closed and consequently is not part of the property being sold under this Agreement of Purchase and Sale.
REC - 05 Shore Road Allowance (Acknowledgement/With Encroachments)
The Buyer acknowledges that the original shore road allowance is not closed and consequently is not part of the property being sold under this Agreement of Purchase and Sale, and that the improvements apparently on the said property may encroach on said unowned shore road allowance.
REC – 06 Condition: Water Frontage - Dimension/Shore Road Allowance/Unregistered Easements
This Offer is conditional upon the Buyer determining at the Buyer's own expense that: (1) the property being purchased has at least [insert appropriate frontage dimension], [metres/feet], of frontage on [name of lake or river]; (2) no road allowance, open or unopened, or other public or private lands exist which will interfere with the right of the Buyer to use and enjoy the said water frontage; and (3) that there are no unregistered rights or easements. Unless the Buyer gives notice in writing delivered to the Seller not later than _____ p.m. on the ________ day of ________________, 20____, that these conditions have been fulfilled, this offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. These conditions are included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.
REC - 07 Landlease - Buyer to Assume
The Seller agrees to assign, and the Buyer agrees to assume, the existing landlease on the property, with [insert name of Lessee], a copy of which is attached as Schedule "_____".
NOTE: See also REC - 08 Option to Purchase and REC - 09 Conditional Upon Lessor's Approval.
REC - 08 Landlease - Option to Purchase
During the currency of this landlease, the Buyer shall have the option of purchasing the land for a sum of ______________________________________________ ($________________), which is not included in the above purchase price.
NOTE: See also REC - 07 Buyer to Assume and REC - 09 Conditional Upon Lessor's Approval.
REC - 09 Landlease - Conditional Upon Lessor's Approval
This Offer is conditional upon the Lessor consenting to the assignment of the landlease to the Buyer.
Unless the Buyer gives notice in writing delivered to the Seller not later than ___ p.m. on the ______ day of _______, 20____, that this condition has been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. The Buyer hereby agrees to proceed immediately to make an application and provide such material as may be required by the Lessor for approval of the Buyer as Lessee.
NOTE: This clause is a true Condition Precedent and neither a Seller nor a Buyer is entitled to waive this condition.
(B) BUILDINGS AND IMPROVEMENTS
REC - 10 Conditional Upon Building Permit
This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that a building permit for the structure indicated on Schedule "_____" attached hereto is available with respect to the property. Unless the Buyer gives notice in writing to the Seller not later than _____ p.m. on the ____ day of ________, 20___, that this condition has been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.
REC - 11 Conditional Upon Docks/Boathouses - General Condition
This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that the [boathouse, dock, pier, etc.], used in conjunction with the property, and passing to the Buyer on completion, [has/have] received all necessary approvals and permits from the Ontario Ministry of Natural Resources, from the Federal Government under the Navigable Waters Protection Act, Canada, and from all other appropriate authorities. Unless the Buyer gives notice in writing delivered to the Seller not later than ____ p.m. on the ______ day of _________, 20___, that this condition has been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction.
This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.
REC – 12 Docks/Boathouses - Seller Warranty (Including Reference to Conservation and/or Canal Authorities)
The Seller represents and warrants to the best of his knowledge and belief that the [boathouse, dock, pier, etc.], used in conjunction with the property, and passing to the Buyer on completion, [has/have] received all necessary approvals and permits from the Ministry of Natural Resources, the Federal Government under the Navigable Waters Protection Act, Canada, from [insert appropriate conservation or canal authority as required], and from all other relevant authorities. The Parties agree that these representations and warranties shall survive and not merge on completion of this transaction, but apply only to those circumstances existing at completion of this transaction.
REC – 13 Conditional Upon Docks/Boathouses - Buyer's Condition (Including Reference to Conservation and/or Canal Authorities)
This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that the [boathouse, dock, pier, etc.], used in conjunction with the property, and passing to the Buyer on completion, [has/have] received all necessary approvals and permits from the Ministry of Natural Resources, the Federal Government under the Navigable Waters Protection Act, Canada, from [insert appropriate conservation or canal authority as required], and from all other relevant authorities. Unless the Buyer gives notice in writing delivered to the Seller not later than ____ p.m. on the ________ day of ________, 20____, that this condition has been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.
REC - 14 Location of Buildings/Driveways
The Seller represents and warrants, to the best of his knowledge and belief, that:
(1) the buildings now located on the property are located wholly on the property and comply with all zoning and building by-laws; and (2) the driveways serving the property are located wholly within the limits of the property, and entrance relating to such driveways have been approved by the appropriate road authority. The Parties agree that these representations and warranties shall survive and not merge on completion of this transaction, but apply only to the state of the property existing at completion of this transaction.
REC - 15 Conditional Upon Satisfactory Soil Test
This Offer is conditional upon the Buyer obtaining at the Buyer's own expense, soil tests verifying the land is satisfactory to the Buyer, in the Buyer's sole and absolute discretion, for the construction of a ____________________ on the land. Unless the Buyer gives notice in writing delivered to the Seller not later than _____ p.m. on the ______ day of ____________, 20____, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. The Seller agrees to co-operate in providing access to the land for the purpose of the soil tests. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein. If the Buyer fails to provide a notice of fulfillment of the condition or fails to waive the condition as provided above, the Buyer agrees to reasonably restore any alterations to the condition of the property caused by the soil tests.
(C) ACCESS
REC - 16 Conditional Upon Road Access to Public Highways
This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that all vehicular entrances to and exits from the property onto public highways have been approved under the Public Transportation and Highways Improvement Act or any predecessor thereof. Unless the Buyer gives notice in writing delivered to the Seller not later than ____ p.m. on the ___________________ day of ____________,20 ___, that his condition has been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.
REC - 17 Conditional Upon Road Access by Open Public Road
This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that access by automobile to the property is by a public road which is maintained at public expense throughout the year. Unless the Buyer gives notice in writing delivered to the Seller not later than _____ p.m. on the ___________________ day of _________, 20____, that this condition has been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.
REC - 18 Road Access - Alternatives
The Seller represents and warrants, to the best of the Seller's knowledge and belief, that the property fronts on [choose appropriate statement] (a) a road which is maintained on a year round basis at public expense; OR (b) a road which is maintained on a seasonal basis at public expense; OR (c) a road which is not maintained at public expense.
The Parties agree that this representation and warranty shall survive and not merge on completion of this transaction, but apply only to the state of the property existing at completion of this transaction.
REC - 19 Road Access - Privately Maintained Road each property.
REC - 20 Road Access - Unregistered Easement (Trespass Access)
The Buyer acknowledges that the [road/path/lane], to the said property may be an unregistered easement. The Seller shall provide to the Buyer, on or before completion, a statutory declaration or declarations establishing that the existing [road/path/lane], has been used by the Seller and/or predecessors in title to gain access to the said property for a period of _____ years.
NOTE: In situations involving unregistered easements, legal advice should be sought.
REC - 21 Water Access
The Buyer acknowledges that the property is only accessible by water.
NOTE: Sale of Property with a well and/or septic system involves specific knowledge of the system. (e.g. There is a difference in a well's performance depending on many variables, e.g. the amount of available water, the delivery capacity of the well system, the amount of water that can be delivered over a certain period of time, and seasonable variables. The type of well, drilled, bored, or dug can also affect performance). Expert advice should be sought.
(D) SERVICES (WATER & SEWERS)
REC – 22 Conditional Upon Sewage Systems - Buyer's Conditions - Approvals and Good Working Order
This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that at the time of installation: (1) all sewage systems serving the property are wholly within the setback requirements of the said property and had received all required Certificates of Installation and Approval pursuant to the Environmental Protection Act; (2) all sewage systems serving the property had been constructed in accordance with the said Certificates of Installation and Approval;
(3) all sewage systems serving the property had received all required use permits under the said Act or any other legislation; and (4) further, that on inspection, the septic bed is in good working order. The Buyer shall be allowed to retain at the Buyer's own expense, a professional in the septic business to make an examination of the septic system. Seller agrees to allow access to the property for the purposes of a septic inspection and agrees to allow the Buyer to request information as outlined above from the appropriate authorities having jurisdiction. Unless the Buyer gives notice in writing delivered to the Seller not later than ______ p.m. on the _______ day of _____________, 20____, that these conditions have been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. These conditions are included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.
NOTE: REC - 22 does not speak to the working order of the Septic System and therefore, should be used in conjunction with REC - 23.
REC - 23 Sewage System - Seller's Warranty - Good Working Order
The Seller represents and warrants, to the best of the Seller's knowledge and belief, that, during the Seller's occupancy of the building, the sewage system has been and will be in good working order on closing. The Parties agree that this representation and warranty shall survive and not merge on completion of this transaction, but apply only to the state of the property existing at completion of this transaction.
REC - 24 Sewage Systems - Seller's Warranty - Approvals and Good Working Order
The Seller represents and warrants, to the best of the Seller's knowledge and belief, that at the time of installation: (1) all sewage systems serving the property are wholly within the setback requirements of the said property, and had received all required Certificates of Installation and Approval pursuant to the Environmental Protection Act; (2) all sewage systems serving the property had been constructed in accordance with the said Certificates of Installation and Approval; (3) all sewage systems serving the property had received all required Use permits under the said Act or any other legislation; and (4) further, all sewage systems serving the property have been maintained in good working order during the Seller's occupancy and will be in good working order on closing. Further, the Seller agrees to provide any and all documentation relating to the sewage system, within the Seller's possession, or which may be made available to the Seller by the appropriate authorities, and given to the Buyer prior to the last date set for examining title. The Parties agree that these representations and warranties shall survive and not merge on completion of this transaction, but apply only to the state of the property existing at the completion of this transaction.
REC - 25 Water Potability - Seller's Warranty (Seller Knows Water Quality)
The Seller agrees to supply to the Buyer, prior to the last date set for examining title, a Certificate of Potability from the local health authority having jurisdiction over the area, with a rating indicating that the water is safe for human consumption.
NOTE: This clause should only be used where the Seller knows that the Seller can provide a safe report, recent potability certificates would be a good indicator. If no recent knowledge of the water quality is available, use REC - 26 Buyer's Condition.
REC - 26 Conditional Upon Water Supply and Potability - Buyer's Condition - All Well Types
This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that: (1) there is an adequate and potable water supply to meet the Buyer's household needs; (2) the pump and all related equipment serving the property are in proper operating condition; and (3) the Buyer can obtain a Certificate of
Potability from the authority having jurisdiction indicating that the water is safe for human consumption. Unless the Buyer gives notice in writing delivered to the Seller not later than _____ p.m. on the _______ day of ___________, 20____ that these conditions have been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. These conditions are included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein. The Seller agrees to allow access to the subject property to the Buyer or the Buyer's agent for the purpose of satisfying this condition.
REC - 27 Water Supply - Seller's Warranty - All Well Types
The Seller represents and warrants, to the best of the Seller's knowledge and belief, that, during the Seller's occupancy of the property, the pump and all related equipment serving the said property have performed adequately, and will be in good working order on closing and are currently capable of delivering not less than ___ gallons per minute (GPM) on the continuous basis of not less than ____ hours. The Parties agree that this representation and warranty shall survive and not merge on completion of this transaction, but apply only to the state of the property at completion of this transaction.
NOTE: If the Seller does not know the current status of the well, the Seller should be advised to verify through a professional well inspection as the current water supply can vary from the original well record. The supply of water is contingent on many variables, e.g. the actual amount of water in the well, the capacity of the well system to deliver the water and over what length of time will the GPM be sustained.
(E) MISCELLANEOUS
REC - 28 Environmental Warranty
The Seller represents and warrants to the best of the Seller's knowledge and belief that during the period of his ownership of the property, that: all environmental laws and regulations have been complied with, no hazardous conditions or substances exist on the land, no limitations or restrictions affecting the continued use of the property exist, other than those specifically provided for herein, no pending litigation respecting Environmental matters; no outstanding Ministry of Environment and Energy Orders, investigations, charges or prosecutions regarding Environmental matters exist, there has been no prior use as a waste disposal site, and all applicable licenses are in force. The Seller agrees to provide to the Buyer upon request, all documents, records, and reports relating to environmental matters that are in the possession of the Seller. The Seller further authorizes (insert appropriate Ministry), to release to the Buyer, the Buyer's Agent or Solicitor, any and all information that may be on record in the Ministry office with respect to the said property. The Parties agree that this representation and warranty shall form an integral part of this Agreement and survive the completion of this transaction, but apply only to circumstances existing at completion of this transaction.
REC - 29 Environmental Condition
This Offer is conditional upon the Buyer determining, at the Buyer's own expense, that: all environmental laws and regulations have been complied with, no hazardous conditions or substances exist on the land, no limitations or restrictions affecting the continued use of the property exist, other than those specifically provided for herein, no pending litigation respecting Environmental matters, no outstanding Ministry of Environment and Energy Orders, investigation, charges or prosecutions respecting Environmental matters exist, there has been no prior use as a waste disposal site, and all applicable licenses are in force. The Seller agrees to provide to the Buyer upon request, all documents, records, and reports relating to environmental matters in possession of the Seller. The Seller further authorizes (insert appropriate Ministry), to release to the Buyer, the Buyer's Agent or Solicitor, any and all information that may be on record in the Ministry office with respect to the said property. Unless the Buyer gives notice in writing delivered to the Seller not later than ____ p.m. on the _______ day of ________________, 20____, that the preceding condition has been fulfilled, this Offer shall become null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller within the time period stated herein.
REC - 30 Agricultural Activities Acknowledgement
The Buyer acknowledges that the property lies within, partially within, adjacent to or within two kilometres of an area zoned, used or identified for agricultural and food production activities and that such activities occur in the area. These activities may include intensive operations that cause discomfort and inconveniences that involve, but not limited to dust, noise, flies, light, odour, smoke, traffic, vibration, operating of machinery during any 24 hour period, storage and utilization of manure and the application by spraying or otherwise of chemical fertilizers, soil amendments, herbicides and pesticides. One or more of these inconveniences have protection in Ontario under the Farming and Food Production Protection Act.
REC - 31 Farm Tax – Buyer's Acknowledgement
The Buyer understands and acknowledges that the Buyer is taking title to the real property knowing that the Seller's tax rate is based on a calculation of a property class that will not apply to the Buyer on completion. The Buyer further acknowledges that the Buyer will have to make application to qualify for the Farmland Class tax rate defined under the Assessment Act of Ontario, Regulation 282, 1998 Ontario Fair Assessment System and if the property does not qualify for the Farmland Class tax rate, the Buyer's property tax rate may be substantially higher then the Seller's.
NOTE: The sale of large parcels of land and vacant land can be subject to capital gains and/or G.S.T. This can depend upon: present and future use; who is selling; and who is buying. Expert advice should be sought.