When buying or selling a commercial or farm property in Saskatchewan, the Contract of Purchase and Sale (Form 104) is the foundation of the entire transaction. This legally binding document outlines the terms, conditions, price, timelines, and responsibilities of both buyers and sellers.
Because Form 104 applies to commercial, agricultural, and business-related properties, it contains sections that differ significantly from residential contracts. Understanding what information is required before completing the form helps prevent delays, reduces risk, and supports smoother negotiations. Below is a clear breakdown of the information needed to complete Form 104 (Rev. 02/2024).
Buyer & Seller Information
The contract begins with full legal names, addresses, postal codes, and phone numbers for all buyers and sellers. Each party’s brokerage information and salesperson contact details must also be included. Accuracy here is critical, as this information carries through to legal documents and land title registration.
Property Description
A complete legal land description—or a detailed description of the business being sold—is required. The form also identifies the municipality, city, or rural municipality where the property is located. This ensures the exact property being purchased is clearly defined and legally identifiable.
Purchase Price & Deposit Details
The total sale price must be clearly stated, along with how it will be paid. This includes the deposit amount, where the deposit is held, financing amounts (if applicable), and the remaining cash balance due before possession. These figures form the financial backbone of the agreement.
Conditions of the Offer
Form 104 allows for conditions such as financing approval or other buyer-specific requirements. Each condition must include a clear deadline for removal or waiver, ensuring both parties understand when the contract becomes fully binding.
Included Chattels & Assets
The contract specifies which chattels, fixtures, and unattached goods are included in the sale. For commercial and farm properties, this may include equipment, buildings, or other assets. If nothing is included, this must be clearly stated.
Mineral Rights Disclosure
A unique aspect of farm and commercial land transactions is mineral ownership. The form requires sellers to disclose whether mineral titles are owned and whether they are included in the sale price.
Possession Date & Adjustments
The possession date must be clearly stated, along with how adjustments for taxes, rents, utilities, insurance, or income will be handled as of that date. These adjustments ensure a fair financial transition between buyer and seller.
GST & Tax Representation
Buyers must indicate whether they are GST registrants. If not registered, the buyer agrees to self-assess and remit GST directly, protecting the seller from future tax liability related to the transaction.
Insurance & Risk Until Possession
The seller is responsible for maintaining insurance coverage until possession. The buyer must ensure the property from the possession date forward. This section helps manage risk during the transition period.
Default, Deposits & Remedies
Form 104 outlines what happens to deposits if conditions are not met or if one party defaults. It also clarifies that forfeiture of a deposit does not prevent either party from pursuing civil remedies.
Closing Costs & Legal Responsibilities
The seller pays for the preparation of the Transfer of Title, while the buyer pays for registration. Financing-related costs are typically the buyer’s responsibility, unless otherwise agreed.
Acceptance, Signatures & Agency Disclosure
The contract concludes with acceptance timelines, buyer and seller signatures, witness signatures, and confirmation that agency disclosure documents have been reviewed and understood.
FAQs
What information is needed to complete Saskatchewan Contract of Purchase and Sale Form 104?
You will need the full legal names and contact details of the buyers and sellers, brokerage information, and a complete legal land or business description. The form also requires the purchase price, deposit details, conditions, included assets, possession date, adjustments, GST representation, and insurance responsibilities.
How does Form 104 differ from a residential purchase contract in Saskatchewan?
Form 104 is designed for commercial, agricultural, and business-related properties, so it addresses more than a typical residential agreement. It may need to cover equipment, buildings, business assets, mineral rights, GST treatment, and other commercial or farm-specific matters.
What should be included in the purchase price and deposit section of Form 104?
The agreement should clearly state the total purchase price and how it will be paid. This includes the deposit amount, where the deposit is held, any financing amount, and the remaining cash balance due before possession.
How do conditions and deadlines work in a Saskatchewan Form 104 offer?
Conditions such as financing approval or other buyer requirements must be written clearly in the contract. Each condition should include a deadline for removal or waiver so both parties know when the agreement becomes fully binding.
Does Form 104 address mineral rights and GST for Saskatchewan farm or commercial property?
Yes, the form requires the seller to disclose whether mineral titles are owned and whether those rights are included in the sale. Buyers must also indicate whether they are GST registrants, and a buyer who is not registered agrees to self-assess and remit GST directly.
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