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Brian Madigan LL.B., Broker
BRMadigan@Rogers.com

RE/MAX West Realty Inc.,
Brokerage
Independently owned and operated

96 Rexdale Blvd. 
Toronto, Ontario 


Phone: 416-745-2300

Cell: 647-404-8150 
Toll Free: 1-888-507-0817

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Schedule "B" Missteps #2

May 11, 2019 - Updated: May 11, 2019

Schedule “B” Missteps #2
 

Let’s have a look at this clause:
 

“In the event that any condition in this offer is not fulfilled or waived by the Buyers, the Buyers agree to provide the Sellers with a true copy of any and all Inspection Reports, Status Certificates, test results etc. prior to the signing of a mutual release and the return of the buyer’s deposit.”
 

So, if you were the Listing Agent, would you want that in the deal?
 

I appreciate that it’s your standard Brokerage’s Schedule “B”, but you are still supposed to read it to determine if it makes any sense in your transaction.
 

True Condition Precedent
 

Whoever drafted this clause in the first place was likely unaware of a True Condition Precedent. That is one which is dependent upon a third party decision. As soon as the third party has “decided”, the deal is a “go ahead”, no need for a Fulfillment or Waiver.
 

Copies of Reports, Certificates, Results
 

Your client, the Seller had no notice whatsoever of some of these potential problems. Now, they know them, and now they have disclosure obligations resulting from their knowledge. What a great way to bring down the value of the property! Nothing could be better!
 

Suing the Listing Agent
 

This is the remedy for every Seller whose value dropped as a consequence of their “new found” knowledge at the hands of their own agent. This was not a wise move.
 

Buyer’s Agent
 

Some of this information may be confidential and proprietary, so it would be best to strike out the clause in the first place.
 

OREA Standard Form
 

Please consider the fact that if this was such a great clause, that it should be in every Offer, no matter what, then OREA might have included it in the standard Form.
 

Future Litigation
 

Whether you act for the Seller or the Buyer, you will have to justify the inclusion of any additional clauses that you choose to add, and if they are just “made up” stuff, then you had better have a very good explanation. And, if the spelling and grammar are incorrect, that will be even more difficult.
 

Brian Madigan LL.B., Broker

www.iSourceRealEstate.com


Tagged with: copies reports certificates results complications ontario law
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Brian Madigan LL.B. Broker

RE/MAX West Realty Inc. Brokerage

Independently owned and operated

96 Rexdale Blvd. , Toronto Ontario,

Phone: 416-745-2300

BRMadigan@Rogers.com

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