News Bulletin - March 31, 2022
Real Estate Forms Available for Consumer Information
Form 408: Buyer Waiver of Conditions
New Nova Scotia Non-Resident Tax Measures
Real Estate Forms Available for Consumer Information
The Board of Directors has agreed to make the Commission’s real estate forms accessible to consumers. These secure PDF versions of the forms are available for consumer information only, not for trading in real estate, therefore the forms, with the exception of service agreements, have watermarks. By being able to review the forms, consumers will benefit by being more informed about the process of buying/selling property. Unwatermarked versions of the forms are approved by the Nova Scotia Real Estate Commission for use by licensees under the Nova Scotia Real Estate Trading Act.
Watermarked versions of the forms are available for consumers and licensees on the Commission’s website. Licensees can provide the link to these watermarked version to their clients, but these tools do not relieve licensees of their responsibility to review and explain these forms prior to signing.
Form 408: Buyer Waiver of Conditions
On January 3rd, 2022, updates to real estate forms made significant changes to the process of satisfying buyer's conditions.
Click here for all the information on satisfying buyer's conditions including the educational video, FAQs, and an example of how to complete Form 408.
Important reminders about Form 408
At a minimum, when completing Form 408, you must identify the form and/or schedule and the section. (Example: "Form 400, clause 4.1.") As best practice, you should also specify the exact condition. (Example: "financing, property inspection.") It is not compliant to use vague language such as "all conditions are waived."
The Commission's standard wording of the lawyer review, title investigation, estoppel certificate conditions do not require Form 408. For these clauses, if the buyer is dissatisfied it is still required to provide written notice of dissatisfaction by the deadline specified in the clause.
If Form 408 is not provided to the seller or seller’s agent before the condition deadline, the agreement is deemed terminated. “No news means you lose.” If the agreement is terminated but both parties wish to proceed, the buyer can submit a new offer. Parties in this situation need to be referred to their legal counsel.
If a buyer needs an extension for one or more conditions that require Form 408, they must propose an amendment and obtain the seller's acceptance prior to the expiration of the original condition due date. If the seller does not responded to the amendment before the due date agreeing to the new terms, the new terms cannot take effect. All terms and conditions in the agreement shall remain in full force and effect. When preparing amendments, caution should be exercised to ensure that amendment deadlines do not coincide with buyer’s condition deadlines. If a proposed amendment is not accepted or is ignored by the seller, the buyer needs sufficient time to decide if they want to proceed with the transaction, which would include submitting Form 408 for the clause they intended to extend before the due date. Otherwise the transaction is deemed terminated.
If Form 408 is not received before the deadline, it is deemed terminated. If there is a deposit, it shall be returned to the buyer subject to the applicable NSREC By-laws, which requires written mutual consent from both parties. This can be done using Form 440: Termination of Agreement of Purchase and Sale and Release of Deposit. If there is no deposit, a termination form is not required.
New Nova Scotia Non-Resident Tax Measures
The government of Nova Scotia has announced the following tax measures as part of the 2022-2023 Budget:
