Monday, November 30, 2009

Mississauga Residential Real Estate Tip

This is another residential real estate tip that I'm sure you will find interesting

Enjoy!
Mark


Most clients are not aware of the reach of the Planning Act and as sellers only find out when the realtor explains the effect of the Planning Act clause of the OREA agreement of purchase and sale to them.

The OREA form of agreement of purchase and sale contains a standard Planning Act clause that provides for the seller’s compliance with Planning Act control. What that clause omits is the need for the buyer to comply in order to complete the transaction.

The effect is that a buyer may contemplate the purchase of a property that will result in non-compliance on the part of the buyer without the buyer even realizing this at the time of executing the agreement of purchase and sale.

As the deal will not be conditional on the buyer complying with the Planning Act the question then becomes does the buyer close and breach Planning Act or does the buyer breach the agreement and refuse to close?

Neither of these answers is very favourable to the buyer. The best avenue would be for the buyer to spend the money, get an extension, where possible and necessary, cure the Planning Act issue, and then close the deal.

Perhaps the easiest way to avoid this contractual nightmare would be to amend the Planning Act clause of the OREA form agreement of purchase and sale to include the words “or Buyer, where applicable”, everywhere Seller appears.

I hope you find our hints helpful!

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


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