Property Transfer Agreement | Canada
Set out the terms of a transfer of depreciable property as part of the sale of a business with this Canada Property Transfer Agreement.
- 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 make a joint Section 85(1) election under the Income Tax Act (Canada).
- The parties mutually indemnify each other with respect to the transfer.
- 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 template is available in MS Word format, and is fully editable to fit your circumstances.
- This legal document is governed by Canadian tax laws.
Last Updated: 19-March-2021