- Always includeÂ specific use of the property in paragraph 8 (the â€œuseâ€ provision) of the Agreement of Purchase and Sale. For example, do not just writeÂ â€œmulti-unit residentialâ€ if the property is sold as a six-plex.
- Oil tanks are of environmental concern. Insurance companies may not offer coverageÂ in certain circumstances.
- If a survey is to be supplied, always aim to schedule itÂ on a date shortly after the condition is waived (not on closing). Further, beware that when it is stated â€œin his possessionâ€, there could be an argument that if the vendor does not have a survey, the vendor does not have to supply one.
- Explain to the purchasers that they probably will not get the keys in the morning of the closing date. It averages between noon and 5pm.Â You may want to discuss bridge financing so that the purchasers who are selling can perhaps close earlier and eliminate the stress of moving in on the same day.
- If the water heater and water softener are rentals or rent-to-own and the contract is to be assumed by the purchaser, this should be set forth in the Agreement of Purchase and Sale and always get a copy of the contracts.
- When acting for the purchaser, askÂ the vendor to warrant that “there have been no leaks from the roof or the basement as at the date of closing” and that the “plumbing, electrical, heating and air conditioning systems, chattels and fixtures will be in good working order as at that date of closing onlyâ€.
- Always state that “the purchaser has the right to a pre-closing inspection”. This signals to the vendor that the purchaser will return to the house prior to closing,Â so it would be wise to keep the house reasonably clean.
- When acting for the purchaser, try to make the requisition date (search of title) in paragraph 8 as close to the closing as possible. Perhaps a week to ten (10) days before closing.
- State in the offer that “the keys to all exterior doors and remotes for the automatic garage door opener will be supplied to the purchaser on closing”.
- Specify any chattels or fixtures to be included in the purchase price.Â For example, do not just writeÂ â€œsatellite dish includedâ€, but rather,Â â€œsatellite dish and accessories includedâ€.Â The same would apply to central vacuum system.
- It is always a good idea to either take pictures of the house and chattels during inspections or visitsÂ (or at least note the make and model number of the existing chattels) to avoid â€œthe switchâ€ or problems if â€œa switchâ€ is falsely claimed.
- A hidden defect clause should always be added to all Agreement of Purchase and Sale.Â It is so easy to do and will save a lot of headaches for the buyer.
PLEASE NOTE: These clauses are recommendations only and are not perfect.Â They indicate aÂ need for careful drafting depending upon the circumstances.Â Each party should consult their respective solicitor.
Prepared by : Donald J. Travers of Paquette Travers & Deutschmann
Toll Free: 1-877-744-2281 Email: Don@PaquetteTravers.com