Canada Property Transfer Agreement
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 Canada Property Transfer Agreement
template is available in MS Word format, and is fully editable to fit your circumstances.
Last Updated: 14-Apr-2016