How many days after signing an Agreement of Purchase and Sale should the closing date be?
The closing date usually occurs 30 to 60 days after the Agreement of Purchase and Sale is signed but this varies depending on the parties.
What can be done to make a transaction firm after the Agreement of Purchase and Sale is signed?
While most conditions are usually in favour of the purchaser, a vendor can help satisfy certain conditions by being responsive in providing due diligence material and notifying the landlord ahead of time.
What are some common conditions included in Agreements of Purchase and Sale?
Conditions in an Agreement of Purchase and Sale depends on the nature of the transaction. However, common conditions in favour of the purchaser includes obtaining satisfactory financing, due diligence of the business, which includes reviewing both financial and legal documents, and obtaining the landlord’s consent to the transaction.
How many days is the conditional period for an Agreement of Purchase and Sale?
The conditional period is typically anywhere from 5 to 20 days after the signing of the Agreement.
Is the transaction finalized once the conditional period is over?
No. Once conditions have been waived, the parties will exchange closing documents to effect the sale of assets or shares from the vendor to the purchaser. This typically happens shortly after the conditional period.
