Direction Re Funds (Proceeds of Residential Sale)

Summary

This precedent is a "Direction Re Funds" for the money due to the vendor and other parties to whom the vendor may wish to direct payment from the closing proceeds. It directs the purchaser to deposit part of the funds to the vendor's lawyer, in trust and also directs money to other parties such as mortgagees, lien holders, tax departments or anyone holding some interest on the property. This precedent contains practical guidance and drafting notes. At the completion of an agreement of purchase and sale (sometimes referred to as a "Purchase Agreement"), the vendor directs the purchaser how and to whom the closing proceeds need to be sent to successfully conclude the transaction. The total amount to be directed among multiple recipients (representing the net amount due at closing) is calculated via a statement of adjustments (see Statement of Adjustments (Residential)). The statement of adjustments has already factored in paid deposits, pre-paid amounts, percentages and per-diems that ...