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Non Refundable Deposit Purchase Agreement Template for Canada

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Key Requirements PROMPT example:

Non Refundable Deposit Purchase Agreement

"I need a Non-Refundable Deposit Purchase Agreement for a commercial property purchase in Ontario, with a 10% deposit that becomes non-refundable after the due diligence period ending March 15, 2025, and completion scheduled for June 2025."

Document background
The Non-Refundable Deposit Purchase Agreement serves as a crucial document in Canadian business and real estate transactions where parties wish to establish a serious commitment to a purchase through a non-returnable deposit. This agreement is particularly useful in situations where the vendor needs assurance of the purchaser's genuine intention and commitment to complete the transaction. The document includes essential elements such as the deposit amount, payment terms, conditions for non-refundability, and the process for applying the deposit to the final purchase price. It can be used across various industries and is especially common in real estate, equipment purchases, and business asset acquisitions. The agreement must comply with Canadian federal and provincial laws, including contract law principles, consumer protection legislation, and sector-specific regulations. This type of agreement is particularly important in protecting sellers from potential losses due to buyer withdrawal while providing buyers with clear terms regarding their deposit.
Suggested Sections

1. Parties: Identification of the purchaser and vendor, including full legal names and addresses

2. Background: Context of the transaction and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Deposit Terms: Amount, payment method, and explicit non-refundable nature of the deposit

5. Purchase Price and Payment: Total purchase price, how deposit applies to purchase, and payment schedule

6. Non-Refundable Nature: Clear statement of circumstances under which deposit is non-refundable

7. Purchase Completion: Timeline and requirements for completing the purchase

8. Representations and Warranties: Standard representations by both parties regarding capacity and authority

9. Default and Remedies: Consequences of default by either party

10. Notices: How formal communications between parties should be made

11. General Provisions: Standard legal provisions including governing law, assignment, and amendments

Optional Sections

1. Conditions Precedent: Specific conditions that must be met before purchase completion, used when there are particular requirements

2. Inspection Rights: Terms for inspection of goods/property, included when physical assets are involved

3. Financing Conditions: Terms related to securing financing, used when purchase depends on financing

4. Property Description: Detailed description of real estate or significant assets, used for property transactions

5. Due Diligence: Terms for conducting due diligence, used in business asset purchases

6. GST/HST Provisions: Special tax handling provisions, included when relevant to the transaction

7. Environmental Matters: Environmental representations and warranties, used for real estate or business assets

8. Survival Provisions: Specifying which provisions survive completion, used in complex transactions

Suggested Schedules

1. Schedule A - Property Description: Detailed description of the property or goods being purchased

2. Schedule B - Deposit Payment Schedule: If deposit is to be paid in installments, detailed payment schedule

3. Schedule C - Completion Requirements: Detailed list of documents and requirements for completion

4. Schedule D - Permitted Encumbrances: List of acceptable liens or encumbrances, if applicable

5. Appendix 1 - Form of Transfer: Standard form for transfer of title or ownership

6. Appendix 2 - Due Diligence Checklist: List of required due diligence items and documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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Relevant Industries

Real Estate

Retail

Manufacturing

Construction

Automotive

Professional Services

Technology

Agriculture

Mining

Commercial Property

Industrial Equipment

Hospitality

Relevant Teams

Legal

Procurement

Sales

Finance

Operations

Compliance

Real Estate

Business Development

Contract Administration

Risk Management

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Real Estate Agent

Property Manager

Procurement Manager

Sales Manager

Commercial Director

Chief Financial Officer

Operations Manager

Business Owner

Corporate Lawyer

Transaction Manager

Compliance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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