Prepare a Property Transfer Agreement
, with this template form for Canada, between a buyer and seller of a business.
- The parties agree that the property is being transferred at fair market value.
- The purchaser agrees to issue shares in its capital stock to the seller and assume any outstanding encumbrances on the property as payment of the purchase price.
- The parties agree to jointly make a Section 85(1) election under the Income Tax Act (Canada).
- The parties mutually indemnify each other.
- The agreement sets out the manner of arriving at an agreed amount for depreciable property subject to subsection 85(5.1) of the Act, and eligible capital property subject to subsection 248(1).
- The parties intend that the purchase price for the assets be an amount equal to the fair market value of the assets at the date of the agreement.
This Canada Property Transfer Agreement
template is available in MS Word format, and is fully editable to fit your circumstances.