The parties agree that if the actual rent on the date of completion, including any planned increases as declared in this Agreement, including any planned increases by the Seller, is less than the $ _____________, then the Seller shall pay the Buyer as liquidated damages, the amount of the difference times the factor of _________________________________, as either an adjustment on the Purchase Price of the property or as a separate payment, at the sole discretion of the Buyer.
OREA note: The factor is negotiable between the parties, but is often based on the ratio between the overall Purchase Price and gross rent (gross rental multiplier).
Agreement · Source: OREA Clause Booklet 2026, RENT-1, page 85
The Buyer shall hold in strict confidence and not disclose any information or knowledge the Buyer has received or is in the Buyer’s possession respecting the property with respect to any rent review proceedings or situations, financial documents, leases and such other records and information respecting the property the Buyer has received or is in the Buyer’s possession from any source whatsoever, subject only to the use of such information, knowledge or records in order to obtain professional advice and as required in the rent review application or appeal processes.
Agreement · Source: OREA Clause Booklet 2026, RENT-2, page 85
The Seller shall, at the earliest legally permitted time, prior to completion, give notices of rent increases, at the statutory rate or as otherwise agreed between the Buyer and the Seller, and provide the Buyer with proof of proper service thereof.
Agreement · Source: OREA Clause Booklet 2026, RENT-3, page 86
Pending completion, the Seller shall not give any notices of rent increases.
Agreement · Source: OREA Clause Booklet 2026, RENT-4, page 86
Upon completion, the Seller shall provide the Buyer with a notice to all tenants advising them of the new owner and requiring all future rents to be paid as the Buyer directs. The Seller will pay to the Buyer any rent paid to the Seller in error or in violation of the direction for a period of ____________________ month(s) following completion, after which period the Seller may refuse to accept rent from tenants or return it to them.
OREA note: Lawyers for parties will treat rent deposits and interest thereon as part of the adjustment process.
Agreement · Source: OREA Clause Booklet 2026, RENT-5, page 86