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Brian Madigan LL.B., Broker

RE/MAX West Realty Inc.,
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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Writing Clauses for Real Estate Offers (2)

July 2, 2019 - Updated: July 2, 2019

Writing Clauses for Real Estate Offers (2)

On the Clause Writing Course, here are the next five questions:

  1. Boundary Dispute

You are acting for John Smith and Mary Smith, third time homebuyers looking for an upscale property in a well-established, expensive, Toronto neighbourhood . The west boundary of the property doesn’t appear to be straight. One neighbour’s backyard and fence appear to be over the lot line by about 6 inches and runs for 50 feet. You speak to the Listing Agent who confirms that there have been issues with the neighbour.

What type of a clause would you place in the Offer (if any)? Please draft one which would address the issues.

  1. Second Unit Legal Non-Conforming

Robert Johnson is an experienced investor. You are acting on his behalf and located a property which has been divided years ago into two separate units. The Listing Agent has included a note on the listing that the “Seller does not warrant the retrofit status”.

What, if anything do you do? If you were to include a clause in the Offer, what would it say?

  1. Waterfront Access

Robert Smith is your buyer client and he wants a waterfront cottage, not nearby the water, not close to the water, but waterfront!

You have found a property and it’s “right on the water”. It’s a small lake, in the Muskoka area which was the subject of substantial Spring flooding in 2017 and 2019.

Right now, the dock is in place, and apparently there is a small beach which would be ideal for his family, but it’s “under the water”, and all you have from the Listing Agent is pictures. Robert would be inclined to hold onto this property for decades.

Are there any clauses that you might consider for Robert’s protection? If so, please draft one.

  1. Driveway Access

You have found an excellent waterfront property for your client Charles Taylor. It is located on Lake Ontario in Prince Edward County. It looks like the farmer created 5 waterfront lots on the lake. There is a long driveway down through the roughly 200 acre farm from the highway, then, it runs across the rear of the five lots. Charles’ lot would be the last one, lot 5.  You are concerned about access and maintenance. You checked GeoWarehouse and there was no registered easement.

In order to protect Charles what would you be looking for? What type of clause, if any, would be suitable? If you want to add something to the standard form, please draft one.

  1. Mutual Driveway Confirmation

William Naismith wants to purchase an older house in the City of Toronto. It looks like there is one driveway running between two properties. The two adjacent lots are about 25 feet wide each. The driveway runs up between the two houses and then appears to widen so as to approach the two separate garages at the rear of the properties.

The Listing Agent is brand new, this is his first listing, and he is not helpful in responding to any questions. There was no mention of the driveway on MLS. In response to your questions, he simply said it was “shared”.

What particular issues do you see? Do you want to add something to the Offer? If you do, please draft that clause.

Let me know if you have any suggestions for other types of issues which may arise in a real estate transaction?

Brian Madigan LL.B., Broker

Tagged with: clauses 6 to 10 standard agreement ontario
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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

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