Purchase and Sale Agreement:
Drafting or reviewing an agreement of purchase and sale should occur before they are signed to ensure all parties best interests are addressed as they are considered legally binding contracts. Because tax rates are lower for dividend income, and you will be provided with more limited liability, I will in most cases, advise incorporation and inform you of any applicable incorporation fees. In the case there is more than one shareholder, we will recommend a shareholder’s agreement.
Government requirements include obtaining an HST Number, a local municipality license and other applicable licenses.
- entering a new commercial lease
- assuming an existing commercial lease
Your lawyer will ensure the lease is not in arrears during the process of commercial lease negotiation. The acceptance of all parties to the lease terms, will be discussed if you are intending on assuming an existing lease.
The vendor’s solicitor or I will order building, health and fire inspections by the local authorities. I recommend that you have the assets and inventory appraised and inspected for merchantability and fitness for use prior to waiving all conditions contained in the agreement of purchase and sale.