We Might See These Typical Clauses In Any Condo Offer

By: Thomas Cook

We Might See These Typical Clauses In Any Condo Offer

 

Although almost any clause can be added to an Agreement of Purchase And Sale, there are several standard clauses we typically encounter that you should know about.
 
It’s best to discuss these with your Realtor ahead of time so there’s no misunderstanding or confusion about them when it’s time to review an offer (or offers) on the table.
 
Seller warranty that all appliances, etc are / and will be in good working order on closing...
The Seller represents and warrants that the chattels and fixtures as included in this Agreement of Purchase and Sale will be in good working order and free from all liens and encumbrances on completion. The Parties agree that this representation and warranty shall survive and not merge on completion of this transaction, but apply only to the state of the property at completion of this transaction.
 
If there’s any rental equipment on the premises - common to have heating/cooling systems as rentals...
The following equipment is rented and not included in the Purchase Price. The Buyer agrees to assume the rental contract(s) if assumable:  The (item) has a payment of $XX monthly.
 
If the buyer makes their offer conditional upon a Status Certificate review...
This offer is conditional upon the Buyer's lawyer reviewing the Status Certificate and attachments and finding the Status Certificate and all Attachments satisfactory in the Buyer's Lawyer's sole and absolute discretion. The Seller agrees to request at the Seller’s expense, the Status Certificate and attachments within one banking day of acceptance of this Offer.
 
Unless the buyer gives notice in writing to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto within THREE banking days of receipt of the Status Certificate and all attachments, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller as aforesaid within the time stated herein.
 
If the buyer does NOT include a Status Certificate condition...
Seller represents and warrants that there are no special assessments contemplated or approved by the Condominium Corporation and if any, the Seller will be responsible to pay any such assessments which are known by the Management on or before closing at the Seller's expense. Seller further represents and warrants that there are no outstanding fees or payments due to the corporation and that the unit owner is in 'good standing' with the condo corporation and that no alterations were done to the unit without consent of property management.
 
Buyer understands and is aware of the risks of purchasing a condominium unit without having reviewed the status certificate and accompanying documentation. Buyer agrees not to hold any party to this agreement, including the listing and cooperating brokerage liable for any damages or discoveries after reviewing the condominium documents.
 
The sellers agree to provide at the seller's expense a current status certificate and all accompanying documentation, within 10 business after acceptance of this agreement.
 
Seller warranty that no interior alterations have been done without the corporation’s consent...
The Seller represents and warrants that, with respect to the unit, the Condominium Act, Declaration, Bylaws and Rules of the Condominium Corporation have been complied with, and that no improvements, additions, alterations or repairs that require the consent of the Condominium Corporation have been carried out in the said unit, the exclusive use areas or the common elements, unless the required consent has been obtained from the Condominium Corporation. This warranty shall survive and not merge on the completion of this transaction.
 
If the buyer is moving in prior to the closing date set in the offer...
The Buyer shall be entitled to occupy the property from (insert date) until the date of completion at a monthly fee hereinafter referred to as an occupancy fee. The occupancy fee shall be calculated based on the proportionate share of the common expenses, the estimated realty taxes, and mortgage interest as detailed herein (or designated as Schedule “B” attached to and forming part of this Agreement). Said occupancy fee shall be due and payable on a monthly basis, in advance, commencing on the 1st day of each month following the date of occupancy. Partial charges prior to the 1st day of the initial month shall be pro-rated accordingly. The Buyer further agrees to provide the Seller with post-dated cheques to cover the occupancy cost for a period of twelve months, or such period to be established by the Seller whichever is the lesser.
 
If the buyer wants a building inspection for the condo unit...
This Offer is conditional upon the inspection of the unit and common elements by a home inspector at the Buyer's own expense and the obtaining of a report satisfactory to the Buyer in the Buyer's sole and absolute discretion. Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than 3 business days after acceptance of this offer that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. The Seller agrees to co-operate in providing access to the unit for the purpose of this inspection. This condition is included for the benefit of the Buyer and may be waived at the Buyer's sole option by notice in writing to the Seller as aforesaid within the time period stated herein.
 
It’s common for the buyer to ask for further visits after the sale is firm and before closing...
The Buyer shall have the right to inspect the property prior to completion for the purpose of inspection for (e.g., financing, insurance, estimate(s) from contractors(s), final visit etc.) to a maximum of TWO time(s), at a mutually agreed upon time(s). The Seller agrees to provide access to the property for the purpose of the inspection(s).
 
Asking the seller to provide all keys, fobs etc on closing...
SELLER irrevocably agrees to deliver to buyer on or before closing: two complete sets of keys, building/elevator access cards, garage door openers and fobs for complete access to the condominium unit, the mailbox, the building, parking garage, all common areas and the locker unit for the property purchased. If the Seller fails to provide any key, garage door opener or fob, then the Seller shall immediately pay the Buyer for the actual replacement cost of any such key, access card, garage door opener or fob OR the Buyer shall be given a credit for this amount on the final statement of adjustments.
 
If there are month-to-month tenants and the buyer wants vacant possession for themselves (need minimum of 60 days’ notice from the 1st day of the next lease period)...
The Buyer hereby authorizes and directs the Seller, and the Seller agrees, when this Agreement becomes firm and binding, to give to the tenants the requisite notices under the Residential Tenancies Act, (Notice to End your Tenancy Because the Landlord, a Purchaser or a Family Member Requires the Rental Unit - Form N12) requiring vacant possession of the property for use by the Buyer or the Buyer's immediate family, effective as of [DATE] and the seller agrees to deliver copies of the requisite notices to the Buyer immediately after service of the notices upon the tenant.
 
Seller acknowledges and agrees that he must provide vacant possession on closing.  Seller further agrees to provide Agreement to Terminate Tenancy forms (Agreement to End the Tenancy - Form N11) signed by the existing tenants agreeing to vacate by [DATE]  to the Buyer within 7 banking days of removal of all conditions.
 
Be sure to review these clauses with your listing agent and get an grasp of them before looking at any offers.

Thomas Cook
Thomas@LivingInToronto.com
647-962-1650
 

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If you are going to sell your suite in the next 1 to 9 months, what you do right now can make a difference of thousands of dollars in your sale price, and there are some simple things you can do forthwith to make sure you get "Top-Dollar" when you do sell.
 

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