Ensuring Complete Information When Using BCFSA’s Index of Clauses

BCFSA maintains an index of clauses for real estate licensees to include in a Contract of Purchase and Sale in the Real Estate Knowledge Base.

Remember that these clauses do not constitute legal or professional advice. You are responsible for exercising your professional judgement in applying the clauses and information to particular situations.

When using the clauses and considerations from the index, you should:

• Consider the needs and situation of your client before recommending a clause;

• Ensure the clause is relevant to the specific transaction and applicable to the situation;

• Ensure the clause is consistent with the rest of the contract (i.e., there are no contradictions or overlaps with other clauses in the contract);

• Tailor the clause, if applicable, to address the unique aspects of the transaction; and

• Speak to your managing broker if you’re unsure about the language in a clause or whether it is appropriate.

The Importance of Complete and Accurate Information

Some clauses contain placeholders or require attachments to the contract, so you should ensure that all the required information is included in each clause. Incomplete or missing information could lead to misunderstandings between parties and, in some cases, affect the validity of the contract or lead to the clause being deemed unenforceable by a court. Missing information can also lead to disputes over the intended meaning or execution of the clause, which can result in litigation for the parties to the transaction, and in some cases, the licensee.

You should also thoroughly review any clauses that you add to the contract to ensure each is complete and reflects the client’s intentions. If you are unsure whether all the necessary information is included in the clause or if the clause is legally sound, speak with your managing broker or seek legal advice.

If any additional guidance is needed, contact a Practice Standards Advisor.