New Brunswick Purchase and Sale Agreement: Key Clauses and Conditions Buyers Must Know

The purchase and sale agreement is the most consequential document you will sign during the home buying process. In New Brunswick, these agreements are standardized by the New Brunswick Real Estate Association (NBREA), which regulates real estate trading across the province. Every offer you submit uses the NBREA standard form, and the clauses inside it determine what protections you have -- and what risks you are accepting.

First-time buyers frequently sign these agreements without fully understanding the conditions that protect them. That is a mistake. The conditions in your purchase agreement are the only leverage you have between the moment a seller accepts your offer and the day you close.

What the Standard Agreement Contains

The NBREA Agreement of Purchase and Sale is a legally binding contract that specifies:

• Purchase price and how the deposit is handled
• Closing date (when ownership transfers and you receive the keys)
• Deposit amount (typically held in trust by the listing brokerage)
• Conditions (subject clauses) that must be satisfied before the sale is final
• Inclusions and exclusions (appliances, fixtures, window coverings)
• Language of execution (English or French -- New Brunswick is officially bilingual)

Because New Brunswick is Canada's only officially bilingual province, you have the right to execute the entire agreement in French under the Standard Forms of Conveyances Act. If the agreement is executed in French and a conflict arises between the English and French versions of standard prescribed wording, the language the document was executed in takes legal precedence.

The Three Conditions You Should Never Waive

Conditions are your escape hatch. If a condition is not met by its deadline, the agreement becomes null and void, and your deposit is returned in full. During the frantic bidding wars of 2021-2023, many buyers waived conditions to compete. The market has since shifted -- sales were down 13% year-over-year in April 2026 and inventory is building -- so you now have the leverage to include them.

1. Financing condition. The agreement is subject to you obtaining written mortgage approval in a specified amount by a set date. If your lender declines the mortgage or the property appraises below the purchase price, this condition lets you exit without penalty. Typical timeframe: 5 to 10 business days.

2. Home inspection condition. You reserve the right to conduct a professional inspection and must be subjectively satisfied with the results. "Subjectively satisfied" is important language -- it means you do not need to prove the inspection found a defect. If you are not comfortable proceeding for any inspection-related reason, you can walk away.

In New Brunswick, this condition is especially critical because the home inspection industry is unregulated by the province. There is no mandatory provincial licensing for inspectors, so you need to choose your own credentialed professional (look for CAHPI certification or PHII training) and evaluate the results yourself.

3. Property disclosure and insurance condition. Requires the seller to provide a property disclosure statement and ensures you can obtain satisfactory home insurance. Insurance is not a formality in New Brunswick -- homes with aging oil tanks (especially those over 15-20 years old) can be denied coverage entirely, which would torpedo your mortgage approval.

The Radon Holdback Clause

New Brunswick has elevated radon risk due to its bedrock geology, and accurate radon testing requires a long-term deployment of at least 91 days -- far longer than the typical closing timeline. The NBREA addresses this with a standard radon holdback clause.

Under this clause, a negotiated sum (usually $3,000 to $5,000, equivalent to the cost of a mitigation system) is held in your lawyer's trust account after closing. You then conduct a 91-day radon test in the home. If the result exceeds Health Canada's 200 Bq/m3 threshold, the funds are released to you for mitigation. If the test comes back safe, the funds go to the seller.

This is not a standard condition that can kill the deal -- it is a post-closing financial arrangement that protects both parties. Ask your real estate agent about including it, particularly for properties with basements.

Deposit: How Much and Where It Goes

The deposit demonstrates your serious intent. In New Brunswick, there is no legally mandated minimum, but typical deposits range from $5,000 to $10,000, or roughly 1% to 3% of the purchase price.

The deposit is held in trust -- usually by the listing brokerage -- and applied toward the purchase price at closing. If you back out of the deal without a valid condition to trigger, the seller may be entitled to keep the deposit as liquidated damages. This is why your conditions matter: they are the mechanism that lets you retrieve your deposit if something goes wrong.

Timelines: From Accepted Offer to Closing Day

Once all conditions are met and formally waived in writing, the clock starts on the closing timeline. Standard closings in New Brunswick run 30 to 45 days from the accepted offer. During this period:

• Your lawyer conducts title searches and prepares conveyancing documents
• If the property is being converted from the Registry of Deeds to the Land Titles system, your lawyer handles the Application for First Registration
• Your lender finalizes the mortgage commitment and provides instructions to your lawyer
• You arrange home insurance (with overland flood and sewer backup endorsements if applicable)
• Your lawyer prepares the final statement of adjustments showing the exact closing costs

On closing day, you meet with your lawyer to sign all conveyancing documents, provide a certified bank draft for the balance, and receive the keys.

What to Negotiate Beyond Price

First-time buyers often focus exclusively on the purchase price, but the purchase agreement contains other negotiable terms:

• Closing date flexibility. If you need time for a Land Titles conversion or a longer financing condition, negotiate a later closing date upfront.
• Inclusion of appliances and fixtures. Specify exactly what stays with the home.
• Repairs after inspection. If the inspection reveals issues, you can negotiate seller credits or specific repairs as a condition of waiving the inspection clause.
• Oil tank clause. If the home has an aging oil tank, negotiate seller responsibility for tank testing, replacement, or soil testing before closing.

For a complete guide to the New Brunswick closing process -- including a clause-by-clause breakdown of what to include in your offer, negotiation strategies, and a closing cost worksheet -- the New Brunswick First-Time Home Buyer Guide covers every step from first offer to final walkthrough.

See more New Brunswick guides →