With the current climate of social distancing, many financial institutions and banks have closed several branches, and reduced hours of operation. For example, the few Scotiabank branches operating have reduced their hours from 10:00 a.m. to 2:00 p.m., Monday through Friday. Banks are also reducing staff and limiting the number of clients allowed in their branches, creating longer wait times. Keeping all of this in mind, it is our strong recommendation that if you have a client who is purchasing and selling, you strongly encourage them to bridge finance, and not close both of their properties on the same day. Bridge financing eases the stress and tension on clients when trying to close two transactions on the same day. Unfortunately, banks have severely limited the ability for a seamless buy and sell on the same day, and depending on the financial institution, the channels in which mortgage funds, etc. need to pass through are also limited. Therefore, separating a client’s purchase and sale with time and bridge financing is key to ensuring a smooth purchase and sale.
With many municipal offices closed or working with a limited team remotely, obtaining building and zoning compliance letters for multi-residential purchases have become difficult, if not impossible during this time. Therefore, we cannot confirm whether a property is legally zoned as a specific type of dwelling. A great tip we recommend is to seek the report and documentation from the seller when they purchased the property! At the time of closing, the seller should have received their own compliance letter from the municipality via their lawyer, confirming the legal use of the property. This is a great tool for realtors representing a seller of a multi-residential property to confirm its current use, and for buyers during the time of municipal office closures.
Knowledge is Power, which results in more business!
If you have any questions or concerns, please feel free to contact us at your convenience. If you have any suggestions for future topics please let us know.
Prepared by Donald J. Travers, Solicitor with Paquette Travers