The purpose of this page is to provide Real Estate Agents with up to date information about issues affecting the purchase and sale of real estate. I will provide commentary and propose solutions for problems I encounter and will post pertinent articles as they are available.
HOT WATER TANK RENTALS Many of the homes build over the last 5 years in North Oakville are now starting to sell. Unlike previous subdivisions current owners were required to sign long term contracts for the rental of the hot water tank with a company called OZZ Home Comfort. These agreements oblige the owners to pay around $20.00 per month for a period of 10 years. Although the agreements can be assumed by the new owners the new owners will be bound by the balance of the 10 year contract. An assumption agreement must be signed on closing otherwise the vendor will still have to make payments. When preparing offers on these homes make sure to include a clause obliging the Purchaser to execute the assumption agreement.
ALARM SYSTEMS When selling a home with an alarm system agents need to be aware of the contract. In most cases, the contract cannot be assumed by the new owners. The Vendor will find himself in a position where he needs to buy out the balance of the contract prior to closing. Since the equipment is incorporated into the house as a fixture, removal of the equipment is not an option unless the Purchasers agrees to its removal in the Agreement of Purchase and Sale.
CONTACT ME There are numerous atypical considerations such as those above. I have always had a policy of advising Real Estate Agents on offer drafting problems at no cost. If you have a problem file and need some guidance on the preparation of a clause or a solution to the problem please do not hesitate to contact me by e-mail or phone. Likewise, I’m happy to talk to sellers and purchasers about concerns they may have regarding the conditions of purchase and sale.
“there is never a charge for minor consultations”