Usually involves the sale of goods, in
which the property remains in the seller’s
name until all installments set out in the
contract have been paid by the buyer. This
type of contract should be differentiated
from a chattel loan in which the person
acquiring the chattel conveys legal title to
the creditor as security for repayment.
Legislation sets out the procedures for
registration of conditional sales contracts
and other forms of security involving
chattels.
Example of
Conditional Sales Contract
Investor
acquires a residential property with a
swimming pool and decides to have a pool
heater installed. The contractor agrees to
furnish the heater at a price of $2,200 plus
tax and accepts a $500 deposit with the
balance payable in equal monthly
installments of $100 plus interest at 9% per
annum compounded monthly.
The contractor prepares a conditional
sales contract stating the particulars of
the agreement (also referred to as a
security agreement or conditional sales
lien), and registers the document under the
applicable provincial personal property
registry system. When all installments and
interest are paid, ownership will transfer
to Jones.
A lien registered by a supplier of goods
who retains the right to products installed
at the premises, until full payment has been
received. Statutory rights regarding
conditional sales liens will vary by
provincial jurisdiction.
Looking to Buy or Sell Luxury
Real Estate In Toronto, North York, Thornhill,
Woodbridge, Vaughan, Richmond Hill, Aurora, King
City and beyond...visit LuxuryBroker.ca
Mortgages247.ca 2011 Apply Online without Blackouts Mortgages247.ca is designed to provide competent and
reliable information regarding the subject matter covered. However it is
provided, free of charge, with the understanding that the authors are not
engaged in rendering legal, financial or other professional advice. Law and
practice often vary from province and province and if legal or other expert
assistance is required, the services of a professional should be sought. The
authors specifically disclaim any liability that is incurred from the use or
application of the contents of this website.
