Many times deficiencies are uncovered during a home inspection period and negotiations take place about who is going to conduct the repairs and what repairs need to be done. Buyers are often confused as to their rights if the repairs are not completed in a timely manner.
As the following case illustrates, if the clause is not worded correctly, the buyer may still have to close the deal and then sue for any damages after closing. Buyers need to understand their rights before threatening not to close any real estate contract.
In my opinion, it is better to just negotiate a price reduction than to obligate the seller to make any repairs before closing. Arguments will inevitably arise if the repairs are not done to the satisfaction of the buyers.
Should seller disclose a death in the home?
There have been headlines recently about situations where a seller did not disclose that there had been a murder on the property in the past, or that a previous homeowner had been murdered near the home that she owned. The question legally is whether a seller or any real estate salesperson has any legal obligation to disclose this to any potential buyer.
In addition, there are situations where a seller is aware of certain neighbourhood conditions, such as for example, a home is owned by a registered pedophile. Should this be disclosed to a potential buyer? See the attached article where I try to summarize the issues and the applicable law in Canada.
2012 Real Estate Lessons
Since returning to private real estate law practice over a year ago, I have learned that closings proceed more smoothly when there is proper preparation in advance; by buyers, sellers, real estate salespeople and lawyers. But when problems arise, it is important to learn from them and educate everyone involved in order to avoid them from happening in the future.
In the attached article, I describe some of the issues that caused buyers and sellers aggravation in 2012. In particular, now that lenders are starting to get more conservative in their lending practices, it is even more important that all terms and requirements of any lender, especially the appraisal, are completed before any financing condition is waived by any buyer.
My Law Practice
I have received many inquiries about my law practice, providing legal services to real estate buyers, sellers and investors. Working with Real Property Transaction Centres, I am now able to close real estate transactions throughout the GTA.
If you or your clients are looking for a written quote, please visit www.realproperty.ca and search under pricing, quotation, or contact Suzanne at 1-877- 219-9618, ext. 231.
I have now completed a new course on “Staying out of trouble in 2013.” This is a 1 hour presentation designed to give brokerage companies and their salespeople what they need to know on topics such as lender approvals, condominium re-sales, new home agreements, including the HST rebate, protection when double-ending deals and the updated OREA forms.
If you would like to schedule a private course at your brokerage, please contact me at firstname.lastname@example.org
About Mark Weisleder
Mark is a lawyer, author, instructor, Toronto Star columnist and keynote speaker for the real estate industry.