In a real estate transaction, the agreement of purchase and sale will contain the terms of the agreement, which include conditions, as well as representations and warranties made by the purchaser and the seller. The conditions of a contract set out the required terms that one or both parties must perform. Failure to adhere to the conditions of a contract generally allows the non-breaching party to terminate the contract. For example, in a real estate transaction, a condition of the agreement of purchase and sale that may give rise to the termination of the contract is if the purchaser is not content with the results of an inspection conducted in accordance with an inspection clause entered in the original agreement of purchase and sale.


Representations and warranties are factual assertions that one party makes to the other. If a representation and warranty turns out to be untrue, the other party may be able to claim damages. For example, in the context of a real estate transaction, a representation and warranty that a seller may make to a purchaser is that the property has never been used for any illegal purposes. In the event the purchaser finds out that the property has been used for illegal activities after the closing date, the buyer may be entitled to damages proportionate to the decrease in property value arising from the false representation and warranty made by the seller.

Contact usĀ if you require legal assistance with your real estate transaction. Our real estate law team has the experience and knowledge to assist you throughout every step of the transaction.

Contact Us

Disclaimer: The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please Contact us.

About the Author:

Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.