Subject Conditions

BCREA Releases New Form to Address Risk of Subject-Free Offers

BCREA has created the Buyer’s Acknowledgement of Information – Recommended Conditions form to help REALTORS® document that they have advised buyers of the increased risks and possible consequences of not including some or all of the recommended conditions in an offer. The form also allows Realtors to document that clients have been advised to obtain

Protecting Buyers – and Yourself – in a Hot Market

With interest rates at record lows and not enough available housing stock to meet demand, buyers are willing to take risks to clinch a deal. Still, as a REALTOR®, they look to you for information on managing those risks. As you work in your client’s best interest, in advising them don’t forget to manage your

Protect Your Clients and Reduce Claims Risks During COVID-19 #525

These are unprecedented times with the arrival of COVID-19. We have all heard that many times and it’s true for all industries, including real estate. Although the market has slowed down, there will still be deals made and deals completed. There will also still be claims made against licensees. For the most part, these claims

Back-Up Offers #89

Legally Speaking

By Gerry NeelyB.A. LL.B. A vendor’s decision to take a back-up offer can be risky to the vendor’s financial health, as will be apparent from your review of the following facts. An agent brought to an owner on November 8, 1983, an offer to purchase the owner’s property for 54,550,000.00, calling for a deposit of

Legal Advice – The Pitfalls of Giving #59

Legally Speaking

By Gerry NeelyB.A. LL.B. Adam entered his solicitor’s office with a writ in his hand and an expression on his face which his solicitor, as Adam’s old golfing partner, recognized. It was the “how did this happen to me” look that appeared on Adam’s face when, after playing faultless golf for seventeen holes, he sliced

Offer or Option #57

Legally Speaking

By Gerry NeelyB.A. LL.B. The following are all abbreviated examples of the usual “subject to” clauses to be fulfilled by a purchaser, right? “Subject to approval of purchase price and terms by (name of the president of the purchasing company was added here). . . “1 “Subject to my inspection and approval of premises. .

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