Most buyers meet the lender's schedule for the first time about four hours before their offer is due. Their agent forwards a PDF, they skim it, it is written in a register that does not invite close reading, and they sign.
It is worth reading properly, and it is worth reading before you are under time pressure, because the schedule is not a formality attached to the standard agreement. In almost every case it is expressly stated to take priority over the standard agreement. Where the two conflict, the schedule wins.
Here is what is usually in it.
1. Nearly every representation and warranty is removed
The standard OREA agreement contains a set of seller warranties that most buyers never think about because they are almost never an issue. That the chattels will be in working order on completion. That the seller has disclosed known latent defects. That there is no outstanding work order. That the property complies with zoning.
A lender's schedule typically strikes all of it. The lender has never lived in the house, has likely never been inside it, and is not prepared to warrant anything about it. The property is sold "as is, where is."
What this means in practice: the inspection is not a negotiating tactic here, it is the entire protection. In a normal transaction a buyer who finds a problem after closing has some recourse. Under a lender's schedule, generally, they do not.
What to do: treat the inspection condition as non-negotiable, and use an inspector who has done these before. Budget for what you cannot see. If the property has been vacant through a winter, get the plumbing looked at specifically — that is where the expensive surprises live.
2. No warranty of vacant possession
This one catches people badly and it is the one I would most want a buyer to understand.
The lender will usually not warrant that the property will be empty on closing. Most power of sale properties are vacant. Some are not.
If someone is living there under a tenancy, Ontario's Residential Tenancies Act protections generally stay with that tenant regardless of who owns the property. Buying the building does not end the tenancy. A power of sale does not end the tenancy. If you were planning to move in yourself, or planning to renovate and resell, an occupied property is a materially different purchase from the one you think you are making, and the timeline may not be within your control at all.
What to do: establish occupancy status before you write, not after. Ask directly. If there is an occupant, get your lawyer involved on the tenancy question specifically, and understand that "the lender will deal with it before closing" is not something you should accept without it being written down.
3. Deposit and deadline terms tighten
Schedules commonly require a larger deposit, require it faster, and make the deadlines strict — meaning a missed deadline is a breach rather than something to be sorted out between agents on the day.
What to do: have the deposit liquid and available before you write. Not "available in a few days." Available.
4. The lender's ability to walk is wider than yours
Many schedules give the lender the right to terminate in circumstances a normal seller could not — most commonly if the borrower redeems the mortgage.
This deserves its own paragraph because it surprises people. In Ontario a borrower retains the right to redeem — to pay the arrears and costs and stop the sale — and that right does not evaporate the moment your offer is accepted. It is possible to have a firm deal, be planning your move, and have the sale cancelled because the homeowner found the money. Your deposit comes back. Your inspection fee, your legal fees to that point, and the two months you spent not looking at other houses do not.
It is not common. It is also not rare enough to ignore.
What to do: know it can happen and do not stop watching the market entirely between acceptance and closing.
5. Title and survey obligations shift toward you
The lender will typically give you less than a normal seller would: no survey, no undertaking to clear certain title issues, sometimes limits on what you can object to and how long you have to object.
What to do: get a real estate lawyer on the file early — before the offer, not after — and budget for title insurance. This is one of the places where trying to save a few hundred dollars is a genuinely bad trade.
The honest summary
None of this makes power of sale properties a bad purchase. Thousands of them change hands in Ontario every year without incident, they finance normally in most cases, and buyers who understand the terms do well in this market.
What it does mean is that the risk allocation is different. In a standard transaction, a meaningful share of the "what if something is wrong" risk sits with the seller. Under a lender's schedule, most of it has been moved to you. The price should reflect that, and your preparation certainly should.
Read the schedule before you write the offer. Have your lawyer read it too. If the listing agent will not send it in advance, that itself is information.
The full guide, including the five-step offer sequence → Buying a Power of Sale
This is general information about how these schedules commonly work in Ontario, not legal advice, and not a description of any particular lender's document. Every schedule is different and every file has its own facts. Have a real estate lawyer review the actual documents before you make an offer.
Carmine Cupelli, Broker, SRS, CLHM, ABR, SRES, RENE — RE/MAX Hallmark First Group Realty Ltd., Brokerage · 647-584-7782
