Financing

Co-Lenders’ Personal Liability for Agent’s Misrepresentation #326

Legally Speaking

By Gerry NeelyB.A. LL.B. Raising financing for a specific project occasionally involves pooling the funds of a number of investors in a mortgage in favour of a limited company which is incorporated and managed by the persons who brought the project to the attention of the investors. An arrangement of this kind is often structured

Satisfactory Financing #214

Legally Speaking

By Gerry NeelyB.A., LL.B. Subject to “satisfactory financing”, while not a whim and fancy clause, has been analyzed in several earlier cases and again in a recent decision involving the cash purchase of a business. The purchaser’s offer was subject to his arranging satisfactory financing. He intended to do this through an institutional lender, whom

Satisfactory Financing #121

Legally Speaking

By Gerry Neely B.A. LL.B Relief is in sight. This column is about a B.C. Court of Appeal decision which will make the addition of a conditional financing clause less of a hazard to the enforceability of an offer to purchase. Column 110 reported a B.C. Supreme Court decision which held that an offer to

Solicitors Conflict of Interest Rules Affecting Vendors #33

Legally Speaking

By Gerry NeelyB.A. LL.B. Column No. 26 discussed the increasing number of successful damage actions brought against lawyers by vendors in transactions where the lawyers in question considered that they were acting for the purchasers only. These actions were successful because the Courts held that in the particular circumstances, the lawyers owed a duty of

Fiduciary Relationship Responsibilities Between the Licensee and Client #29

Legally Speaking

By Gerry NeelyB.A. LL.B. Legally Speaking Column No. 1 discussed the fiduciary relationship between the licencee and the person who has retained the licencee to sell his property. Those principles were examined in a recent case where the licencee exchanged his property for that of the principal’s property. The principal had listed a 2 1/2-acre semi-rural

Concessionary Financing, the Salvation of the Housing Markets #20

Legally Speaking

By Gerry NeelyB.A. LL.B. An article in the Financial Times of Canada of April 12, 1982 reviews the extent to which “concessionary financing” by vendors has been the salvation of the housing markets in the past few months. The article in question suggests that in Canada and the United States, 70% and 500710 respectively of house sales

Removal of Conditions and the Law and Equity Act #17

Legally Speaking

By Gerry NeelyB.A. LL.B. An offer to purchase the assets of a hunting and fishing lodge, was subject to a number of conditions, one of which was the following: “Subject to obtaining financing, provided that this subject clause shall be removed on November 30th, 1975.” It appears from the decision of the Supreme Court of

“Best Efforts” Cases #9

Legally Speaking

By Gerry NeelyB.A. LL.B. Very occasionally a prospective purchaser for whom an offer to purchase is being prepared, asks for the insertion of a condition in the agreement such as “subject to financing…” because he is not entirely certain whether he wants to buy the property. The reasoning of course is that if he decides

Increasing Deposit #2

Legally Speaking

By Gerry NeelyB.A. LL.B. Every vendor wants as large a deposit as possible, while no potential purchaser wants to tie up a relatively large sum if he is unable to get the financing which is the condition precedent to his purchase of the vendor’s property. As a result, the offer to purchase may contain the