News Bulletin - April 17, 2025

Updated Resources on Form 408 and Satisfying Buyer’s Conditions
Important Dates Reminder

Updated Resources on Form 408 and Satisfying Buyer’s Conditions

Form 408 and the current process of satisfying buyer’s conditions have been in effect since January 3, 2022.

The Commission has updated the resources and training material on Form 408 and satisfying buyer’s conditions to focus on the current process, versus the pre-2022 process.

To be clear, the process and Form 408 have not changed.

View the Form 408 and Buyers Conditions page with revised information. This page includes information on:

• The process of satisfying buyer’s conditions
• The clauses that use notice of dissatisfaction
• The forms
• Form 408: Buyer Waiver of Conditions
• When a buyer is not satisfied with their conditions or needs more time
• Important reminders when using amendments related to Form 408
  • When and why buyers would propose amendments related to buyer’s conditions
  • The importance of timelines
  • A seller’s options for responding
• What do do when an agreement terminates
• A message from RELANS
• Previous bulletins about buyer’s conditions and Form 408
• Satisfying buyer’s conditions prior to January 3, 2022: the old process, why it changed, and how
  • Training resources

How to Re-Designate Deposits
In situations where a brokerage is holding a deposit in their trust account and the transaction terminates, whether from not waiving buyer's conditions by submitting Form 408 before the deadline or for any other reason, and the parties enter into a new agreement within 48 hours, the deposit can stay in the brokerage’s trust account. To do this, licensees must have written mutual consent by both parties (buyer and seller) that includes clear direction to re-designate the deposit to the new agreement. This can be done with Section 2 of Form 440: Termination of Agreement of Purchase and Sale and Release of Deposit, or any other written direction that includes the signatures of both parties. The re-designation of the deposit must be clearly documented on the new Agreement of Purchase and Sale as well as all trust account records.

Importance of Timelines
Licensees must ensure their client’s interests are protected. When preparing amendments, the open-until date and time must be before the original buyer’s conditions deadline. If a seller rejects or ignores the amendment, the buyer needs sufficient time to decide if they want to proceed with the transaction and submit a completed Form 408 before the original deadline, or to just allow the Agreement to terminate.

Message from RELANS
The Real Estate Lawyers Association of Nova Scotia (RELANS) has reached out to the Commission regarding concerns that “members [of RELANS] are frequently being asked to "revive" contracts that have been terminated because a Form 408 was incomplete or not filed on time. 

RELANS has said that once an executed agreement of purchase and sale has been deemed terminated, legal counsel does not have the ability to revive the contract or to create a new contract on behalf of their client just by emailing the other party’s legal counsel.

Licensees must remember that buyer’s conditions include an automatic termination clause in cases where Form 408 is not provided as required. By failing to submit a complete Form 408 by the buyer’s conditions deadline, the Agreement will be deemed terminated. In order to proceed with the transaction, licensees must ensure a buyer is satisfied with their conditions, and that Form 408 is completed correctly and provided before the deadline in the Agreement.

If both parties want to proceed after a transaction is deemed terminated, the buyer and seller must sign a new Agreement. Legal counsel cannot revive a terminated agreement.

Important Dates Reminder

April 21 - 23: Virtual Board Election

April 24: NSREC AGM

June 15: Mandatory CPE Courses
Depending on your licence category, licensees must complete their required CPE course(s) on the NSAR Learning Platform before 11:59 pm on June 15, 2025.

All licence categories (salespeople, associate brokers, managing associate brokers and brokers) must complete Revisiting Consumer Relationships.

Associate brokers, managing associate brokers and brokers must also complete Broker Responsibilities Refresh.

July 1: By-law Updates to Parts 7 & 8
Effective July 1, 2025, the Commission By-law will be updated to reflect the revised Part 7—Conduct and Trade Practices and 8—Discipline, as approved by the Board. Click here for more information on the changes.