THIS AGREEMENT made the day of, 20. TOWN OF NORTH RUSTICO, a body corporate, incorporated under the laws of the Province of Prince Edward Island;
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1 THIS AGREEMENT made the day of, 20. BETWEEN: TOWN OF NORTH RUSTICO, a body corporate, incorporated under the laws of the Province of Prince Edward Island; (the Vendor ) AND: (the Purchaser ) 1. The Vendor agrees to sell and the Purchaser agrees to purchase, according to the terms hereof, the Vendor s property known as Lot, comprising part of provincial parcel number (the Property ) for the price of of lawful money of Canada (the Purchase Price ), plus HST, payable as follows: (a) (b) $5, on the day of the execution of this Agreement, as a deposit to be held in trust by the Vendor s solicitors, Stewart McKelvey, pending completion or other termination of this Agreement and to be credited on account of the Purchase Price on the Closing Date (as defined below); the amount of being the balance of the Purchase Price, plus HST in relation to the full Purchase Price, subject to the adjustments hereinafter mentioned, to be paid to the Vendor on the date which is the business day following the date the Purchaser is notified that all of the conditions in Paragraph 9 have been satisfied (the Closing Date ). This sale may be completed earlier with the mutual agreement of all parties. 2. In the event the Purchaser is a HST registrant on the Closing Date, the Purchaser shall self-assess the HST applicable on this transaction and provide its registration number and a declaration confirming same to the Vendor. If the Purchaser is not a HST registrant on the Closing Date, the Vendor shall report and/or remit the HST applicable on this transaction to the Canada Revenue Agency. The Vendor s HST number is RT Applicable rents, mortgage interest, property taxes, local improvement rates, including public and/or private utility charges, shall be adjusted as of the Closing Date. 4. The Vendor shall give vacant possession of the Property to the Purchaser on the Closing Date. 5. The Property is to be conveyed free of all liens and encumbrances. 6. The Purchaser acknowledges and agrees that the Property shall be conveyed subject to the restrictive covenants hereto annexed as Schedule B. 7. The Purchaser shall not call for the production of any title deed, survey or other evidence of title, except as may be in the possession of the Vendor.
2 2 8. The Purchaser is to be allowed thirty (30) days from the date this Agreement has been executed by both parties to examine the title to the Property, and if within that time any valid objection to title is made in writing which the Vendor shall be unable or unwilling to remove prior to the Closing Date and which the Purchaser will not waive, this Agreement shall be null and void notwithstanding any intermediate acts or negotiations in respect of such objection, and the deposit shall be repaid to the Purchaser. Save as to any valid objection so made within such time the Purchaser shall be conclusively deemed to have accepted the Vendor s title to the Property. 9. This Agreement is subject to the following conditions precedent being satisfied prior to the Closing Date: (a) (b) the Vendor obtaining all necessary approvals for the subdivision in which the Property is situate (the Subdivision ) from federal, provincial and/or municipal authorities, on terms satisfactory to the Vendor; and the conveyance of the roads in the Subdivision to the Government of Prince Edward Island. If either of these conditions are not met then either party may cancel this Agreement and the deposit shall be returned to the Purchaser without interest and without deduction. 10. The Purchaser covenants with the Vendor to pay the Purchase Price on the Closing Date. 11. Upon payment in full of the Purchase Price as herein provided, the Vendor covenants to deliver to the Purchaser a good sufficient deed of conveyance of the Property, including all ordinary statutory covenants, and covenants to execute such further assurances as may be requisite. 12. The deed of conveyance shall be prepared at the expense of the Purchaser by the Purchaser s solicitor. 13. The Vendor acknowledges that the Property is not subject to the terms of any listing agreement with a real estate broker and the Purchaser acknowledges that the Purchaser was not introduced to the Property through any real estate agent. 14. The Vendor covenants that it is a resident of Canada within the meaning of the Income Tax Act (Canada). 15. Time shall in all respects throughout be of the essence. 16. The parties agree that there is no representation, warranty, collateral agreement or condition affecting this Agreement or the Property or supported hereby other than expressed herein in writing. 17. Any tender of documents or money hereunder may be made upon the Vendor or the Purchaser or any party acting for them and money may be tendered by negotiable cheque certified by a chartered bank or trust company or by solicitor s trust cheque. 18. This Agreement may be executed in counterparts, each of which, when so executed and delivered to the other parties, shall be deemed to be an original, and when taken together, shall be deemed to be one and the same Agreement.
3 3 19. The parties agree that a faxed or scanned signature on this Agreement shall constitute a legally binding agreement. 20. This Agreement shall be governed in every respect by the laws of the Province of Prince Edward Island. 21. This Agreement shall enure to the benefit of and be binding upon the parties hereto, and their heirs, executors, administrators, successors and assigns. TO CONFIRM THEIR AGREEMENT the parties have signed below in the presence of a witness. SIGNED BY THE VENDORS this day of, 20 Witness DRAFT Vendors Lawyer and Address: Perlene J. Morrison, Stewart McKelvey 65 Grafton Street P.O. Box 2140 Charlottetown, PE C1A 8B9 (902) (tel) (902) (fax) SIGNED BY THE PURCHASERS this day of, 20 Witness DRAFT Purchasers Lawyer and Address:
4 SCHEDULE B In these covenants, the following definitions shall apply: a. Grantor shall mean the Town of North Rustico, its successors and/or assigns; b. Grantee shall mean the original purchaser from the Grantor and all subsequent successors to the original purchaser s title and shall include joint or common owners of the Lands; c. Lands shall mean the lands purchased by the Grantee from the Grantor as described in Schedule A. The Grantee(s) of the lands described in Schedule A covenant and agree with the Grantor to observe and comply with the following restrictions and agreements made in pursuance of a building scheme established by the Grantor: 1. No temporary structures, mobile homes, mini homes, trailers or tiny homes shall be erected or stand at any time upon the Lands. 2. Construction of the main building on the Lands must be completed five (5) years from the date the Lands are conveyed to the Grantee. If the Grantee fails to comply with the provisions of this paragraph, the Grantor may elect to repurchase the Lands on the following terms: (a) (b) (c) (d) the re-purchase price for the Lands shall be eighty percent (80%) of the purchase price paid by the original Grantee to the Grantor, less the cost of re-instating the Lands to their original condition (which cost shall be established solely by the Grantor) if the Grantor in its sole discretion decides not to accept the Lands in their condition on the date the Grantor decides to exercise its right hereunder to repurchase the Lands; the Grantor shall provide written notice to the Grantee of its intention to re-purchase the Lands and the closing of the re-purchase shall be on the 30 th day following the date of the written notice. If the closing date falls on a Saturday, Sunday or holiday, the closing shall take place on the next business day; the Grantee warrants that the Lands shall be conveyed by the Grantee to the Grantor free and clear of all encumbrances. If any encumbrance exists at the re-purchase closing date, the Grantor may pay out same directly from the repurchase price; and in the event the Grantee fails or neglects to execute any deeds or documents necessary to complete the re-purchase, the Grantee hereby appoints the Grantor as his, her or its lawful attorney to execute all such required deeds and documents. 3. No Grantee shall obstruct the flow of storm water drainage, and no lot shall be graded or regraded in such a manner that it will block or impede any water flow, or cause water to be diverted over or built up upon any adjoining lots or land. Grantees of the lots identified as Lots 32 43, inclusive, shall adhere to the storm water drainage routes identified on a plan of survey entitled Plan of Survey Showing Lots 8 20 & 24 45, Being Subdivision of the Lands of the Town of North Rustico, prepared by Derek A. French Professional Services Inc. as Drawing No L1, dated October 24, The Grantee agrees to obtain from any subsequent purchaser or transferee a covenant to observe the restrictive covenants and agreements herein set forth including this clause. 5. The restrictions herein are severable, in the invalidity or unenforceability of any restriction shall not affect the validity or enforceability or any other restriction. 6. The Grantor, its successors and/or assigns, may alter, waive or modify any of the foregoing building and other restrictions, provided the substantial character of the covenants is maintained. 7. The covenants and restrictions herein shall run with and bind the Lands in Schedule A and shall enure to the benefit of and be enforceable by the Grantor, its successors and/or assigns, or by the owner of any land subject to these v1
5 2 covenants and restrictions, their respective representatives, heirs, successors and assigns. 8. Enforcement of these covenants and restrictions shall be by any proceeding at law or at equity against any person or persons violating or attempting to violate any covenant or restriction, either to restrain violation or recover damages, and against the land to enforce any obligation created by these covenants, and failure by the Grantor to enforce any covenant or restriction herein contained shall not be deemed a waiver of the right to do so thereafter v1
6 DATED: day of, 20 BETWEEN: Town of North Rustico OF THE FIRST PART AND: OF THE SECOND PART AGREEMENT OF PURCHASE AND SALE STEWART McKELVEY SM PJM
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