When you sell a home that has been in the family for many years, it can be very emotional for everyone involved. It becomes even more difficult if the buyer plans on demolishing the home. Please read the attached case to see what happened when a seller changed their mind about the sale of their parent’s home after learning that the home was to be completely gutted after closing.
Smoking in home reduces property value
A recent survey demonstrates what many already suspected; not only is it harder to sell a home that was occupied by a prior heavy smoker, it will also affect the sale price.
Please see the attached article, which not only explains the problem, but also provides a solution to getting rid of foul odors prior to putting a home on the market.
$100,000 deposit lost when fax not read in time
The attached case raises interesting issues related to outstanding open work permits and how they might be handled on closing. In this case, the buyer purchased a renovated home, but learned that there was still an open permit that was not finally inspected and approved by the Building department.
The buyer refused to close until the permit was cleared. On the closing date, the seller lawyer notified the buyer lawyer by fax at 4 pm that they could obtain a title insurance policy to deal with the issue. The buyer lawyer did not see the fax and assumed the deal was cancelled.
See the attached decision where the judge ruled that the deposit was forfeited by the buyer because in accordance with the offer, if a seller can obtain title insurance to correct a work order issue, then a buyer must close.
When selling or buying properties that are recently renovated, questions need to be asked to make sure that any outstanding work permit has been finally inspected and signed off by the local City official. Open work permits can later lead to work orders, which will become the responsibility of the owner to repair later.
Real Estate Partnerships Require Careful Planning
I am often asked how real estate partnerships or joint ventures should be set up. Who should go on title? What clauses do I need?
Please see the attached article where I set out the key provisions that need to be negotiated in any real estate partneship agreement. If you or your clients need any assistance with setting up a joint venture or partnership agreement, please conact me.
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 require any assistance on a transaction that you are working on, please email me at email@example.com
If you or your clients are looking for a written quote, please visit www.realproperty.ca and search under “How much does it cost” or contact Suzanne at 1-877- 219-9618, ext. 231.
About Mark Weisleder
Mark is a lawyer, author, instructor, Toronto Star columnist and keynote speaker for the real estate industry.