Brampton and Georgetown Real Estate
Real Estate Breaking News and Tips
Seller Risks in a Bidding War
Lets say you are a Seller and there is a bidding war for your property. One of the offers has no conditions, a large deposit and the offer price is far more than your asking price. Awesome you think. MAYBE!!! What questions should you and your agent ask? Will the deposit be provided on time; will the Buyer need a mortgage; is the Buyer prequalified. You can expect that the answers you will get to all three questions will be a confident "Of Course" from the Buyer's Agent. That isn't nearly good enough. Make no mistake, there are significant financial risks to you, the Seller, by blindly taking people at their word in these competitive circumstances. There are several steps that you can take to minimize your risk. Contact me and I will be happy to review these steps.
Condominium Buyers' Guide
As of January 1, 2021, developers across the province are required to provide purchasers of new or pre-construction residential condos with a copy of the guide at the time of purchase and sale. The guide includes information on a variety of aspects of condo ownership, including:
• The condo purchasing process
• Information surrounding purchases of pre-construction units
• Condo living and governance
• Resources for resolving issues related to condo living
Under the Condominium Act, purchase agreements for new or pre-construction condos purchased from developers are not binding on purchasers until developers provide purchasers with a copy of the current disclosure statement. As of January 1, 2021, this requirement has been amended to also require developers to provide a copy of the guide.
Please contact me if you would like me to email a copy of this guide to you.
Let me be clear; you MUST, MUST, MUST do a final walk-through of the property you are buying, as close as possible to the day the deal closes and you get the keys. Don’t worry if the Seller has lots of boxes lying around and the place looks untidy. Remember, they are moving soon! What you are really looking for includes, but is not limited to;
Appliances - Are the appliances the same ones that were there when you previously viewed the property and which you included in your offer.
Repairs - The Sellers might have agreed, for example, to repair the walls after taking down photographs or even TV brackets. Make sure that this has been done.
Condition on closing - Most Agreements include a clause obliging the Seller to leave the property in a ‘clean and broom swept’ condition and to remove all garbage, before the deal closes. It would surprise you how often garbage is pilled up at the back of the garage, a shed, or even under the stairs to the basement.
Hidden surfaces - If some furniture has been moved, check the wall that it covered, for damage or even mold. A Home Inspector is not permitted to move furniture during an inspection so a final walk-through might be the only chance you will get to check this out.
There are remedies if, for any reason, the walk-through reveals problems.. Your agent and lawyer know what to do.
An assignment is essentially a sale of a contract or right to acquire property. An assignment is a transaction whereby the original purchaser, the "Assignor", of a property sells, and thereby transfers, their interest and obligations under the original contract to a new purchaser, the "Assignee". The Assignee will generally assume all of the Assignor's duties and obligations under the original Agreement of Purchase and Sale. These rights and obligations are stated in the original Agreement of Purchase and Sale and include terms such as interest payments, taxes and maintenance fees during interim occupancy. Upon completion, the Assignee is granted the title to the real property and will incur all final closing costs.
The disposal or acquisition of property via an assignment can be complicated and an Assignee or Assignor should consult with a Real Estate Lawyer, a Financial Advisor and an experienced Realtor. Contact me if you have any questions about Assignments.