Notice to Seller Regarding Assignment Terms, Contract Assignments: What to do When You Need to Add or Change a Buyer, Office of the Superintendent of Real Estate, Real Estate Errors and Omissions Insurance Corporation, www.env.gov.bc.ca/habitat/fish_protection_act/riparian/documents/applicable_regulations_table.pdf, www.env.gov.bc.ca/habitat/fish_protection_act/riparian/riparian_areas.html, www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html, Manufactured Home Park Tenancy Regulation, Applied Science Technologists & Technicians of BC, Onsite Wastewater Consumer Information Centre, Association of Professional Engineers and Geoscientists of BC, Receipt of Strata Corporation Documentation Form, Documents to Request and Their Significance, Approval by Seller's/Buyer's Accountant Clause, Buyer to Approve Documents in Sale of Business Clause, Authorization to Pay Trust Money to Lawyer or Notary Clause, Deposit Payable within a Specified Period Clause, Lawyer Approval of Deposit Arrangement Clause, Buyer Approving the Property Disclosure Statement Clause, Buyer's/Seller's Acknowledgement of Licensee's Interest in Trade Clause, Buyer's Approval of Property Disclosure Statement - Strata Title Properties Clause, Disclosure of Material Latent Defect Clause, Growth or Manufacture of Illegal Substances Clause (for use with non-strata properties), Growth or Manufacture of Illegal Substances Clause (for use with strata lots), No Growth or Manufacture of Illegal Substances Clause (for use with non-strata properties), No Growth or Manufacture of Illegal Substances Clause (for use with strata lots), Possible Safety, Health or Environmental Condition Clause, Property Disclosure Statement — Strata Title Properties Clause, Seller's Disclosure Where Condition Has Been Tested Clause, Seller's Disclosure Where Condition Has Been Removed Clause, Seller's Disclosure but Corrective Measures Taken Clause, Seller's Disclosure but Condition at Acceptable Level Clause, UFFI and Asbestos Insulation Disclosure Clause, Agreement for Sale (With No Underlying Mortgage Which Allows Resale) Clause, Agreement for Sale (With Underlying Mortgage) Clause, Financial Obligations Exceed Sale Price Clause, Lawyer's Approval of Financing Terms Clause, Open (Prepayment in Part) Mortgage Clause, Open (Prepayment in Full) Mortgage Clause, Optional Assumption of Portion of Mortgage Clause, Refinancing with Existing Mortgagee Clause, Seller to Take Back First Mortgage Clause, Seller to Take Back Second Mortgage Clause, Seller to Pay Discount to Buy-Down Rate for Buyer Clause, Subject to Franchisor Approving Assignment of Franchise Clause, Subject to Buyer Approving Franchise Agreement Clause, Purchase Price to Include/Not Include GST Clause, Receipt of Information or Professional Advice by Buyer/Seller Concerning GST Liability Clause, Licensed Builder and Warranty Insurance Clauses (Option I), Licensed Builder and Warranty Insurance Clauses (Option II), Receipt of Home Warranty Insurance Documents Clause, Receipt of Owner-Builder Disclosure Notice Clause, Inspection/Testing/Government Approval Clause, Wood Burner Insurance Confirmation Clause, Approval by Seller's/Buyer's Lawyer Clause, Properties Containing Unauthorized Accommodation Clause, Buyer's Approval of Rules and Regulations of Manufactured Home Park Clause (Option I), Buyer's Approval of Rules and Regulations of Manufactured Home Park Clause (Option II), Buyer's Permission to Register a Security Interest in a Manufactured Home Clause, Seller's Permission to Sublet a Pad for a Manufactured Home Clause, Friend/Relative Approval (for Buyer or Seller) Clause, Seller Taking Buyer's Property in Trade Clause, Licensed Builder and Warranty Insurance Clauses, Mandatory Warranty Insurance Coverage Clause, Walk-Through Inspection Deficiency List Clause, Assessing Property for Wastewater Treatment System Clause, Seller Sewage System Representation and Warranty, Wastewater Treatment System Does Not Meet Standards Clause, Buyer's Approval of Property Disclosure Statement—Strata Title Properties Clause, Nature of the Parking Stall(s)/Storage Locker Needs To Be Verified Clause, Notification of Changes in Bylaws or Rules Clause, Properties without a Strata Council Clause, Recovery of Proceeds Payable to Strata Corporation Clause, Seller Agrees to Hold Back to Pay for Special Levy Approved Before Completion Clause, Seller and Buyer Negotiate the Portion of the Special Levy Due after Completion that the Seller Will Pay Clause, Seller Agrees to Hold Back a Portion of the Purchase Price Where There is the Possibility of a Special Levy Being Assessed in the Near Future Clause, Strata Plan Not Registered at the Time Contract Signed Clause, Strata Documentation to Be Provided Clause, Confirmation of the Sale of Buyer's Property Clause, Sale of the Buyer's Property, with Time Clause, Subject to Seller Purchasing Residence Clause, Buyer's Approval of Title and Title Search to Be Incorporated into Contract Clause, this contract must not be assigned without the written consent of the seller; and. To clearly state that the PDS is incorporated into the Contract of Purchase and Sale, the following clause must be inserted into the contract: The attached Property Disclosure Statement — Strata Title Properties dated (date) is incorporated into and forms part of this contract. The Seller will provide to the Buyer on or before (date) all details of the warranty insurance coverage pursuant to the Homeowner Protection Act. In this scenario, because the deposit is to be held by another brokerage, that brokerage is governed by RESA. The Seller warrants that, to the best of the Seller’s knowledge, the (select either building or property) does not have (describe condition) . Some owners may not even realize that they are using their parking stall/storage locker as a result of the permission granted by the Strata Council. The payment may have occurred in conjunction with a sublease of the parking area, or it may have been required by the developer in order to permit the allocation of common property. Licensees will find it helpful to colleagues to leave copies of the disclosure statement available for review when the property is being shown. The Buyer acknowledges that this strata corporation has not been run in compliance with the Strata Property Act and, in particular, there is no active strata council, there have been no strata meetings, there is no budget, no strata fees have been collected, and there is no operating or contingency reserve fund or financial records. This condition is for the sole benefit of the (select either Seller or Buyer) . Licensees should also be aware that home warranty insurance may be void if it is found that illegal activity has occurred in the premises. DEPOSIT: A deposit of $1,000, which will form part of the Purchase Price, will be paid on the following terms:All monies paid pursuant to this section (Deposit) will be delivered in trust to [Name of the Party to Hold the Deposit] and held in trust in accordance with the provisions of the Real Estate Services Act.’’. Should the Buyer fail to remove all the conditions before the expiry of the notice period, the contract will terminate. NOTE: Licensees should be aware that issues involving unauthorized accommodation often include construction or improvements to the property which could result in an order for demolition of the structure, a requirement by a municipal/city authority to upgrade to present bylaw requirements or for the removal of the addition and changes since the last inspection, the nullification of insurance, and a potential difficulty to mortgage the property. The wood burning unit itself must have the appropriate CSA, UCL or other required approval, or, failing that, specific individual approval by the Insurer. Subject to the Buyer receiving, perusing and being satisfied with the said lease on or before (date) . This colloquially termed ‘48 hour clause’ provides the original buyer two business days to obtain an offer on their property or waive the benefit of the subject to sale condition. The results for such testing indicated that (describe condition) is acceptable and, accordingly, no further action has been taken. Ω If not using the standard form Contract of Purchase and Sale, refer to ‘‘Contracts under Seal’’. ***Use an authorization form such as the “Authorization to Agent to Obtain/Deliver Documentation” for this purpose. Although such designations are rare, the Form B will indicate the designation. The goal is to ensure the buyer has full knowledge of the results of the inspection and, if necessary, clarification from the inspector or any other qualified person as required. Once an offer has been accepted but before the conditions have been removed, a back-up offer that is accepted by the seller sits in second position waiting for the first offer to collapse or firm up. The Buyer accepts the strata lot in its present state, and in an ‘‘as is’’ condition. Under RESA, the need for disclosure includes: The need for disclosure arises whenever a licensee is disposing of real estate, regardless of whether the licensee has personally listed the property for sale. To demonstrate, assume that the seller and buyer have agreed that a deposit of $1,000 is to be held by the seller’s lawyer Joe Smith. In addition to the regulation, the Manufactured Home Park Tenancy Act allows arbitrators to order an assignment or sublet if the park owner withheld consent unreasonably or arbitrarily or for a reason not permitted by the regulation. Once a buyer has determined which property inspector is to be used, licensees must respect the client relationship this creates between the buyer and the property inspector. ROWPS are registered with the Applied Science Technologists & Technicians of British Columbia (ASTTBC), which recognizes four categories of practitioners: Before beginning construction of an onsite wastewater treatment system, the authorized person must file the system’s plans and specifications with the local health authority. The shorter the time clause the less true this becomes. Looking for a clause to include in a Contract of Purchase and Sale? This document constitutes written notice from the Seller to the Buyer requiring the removal of (select either all conditions or the condition) from this contract within (number of hours) hours* not including Sunday or Statutory Holidays, or this contract will terminate at the end of the (number of hours)-hour period and the deposit will be returned to the Buyer. Expertise: 193 Articles Written. Sale subject to buyer selling clause. [December 2018: The following section was added to the Professional Standards Manual]. Because “owner” is defined as the person shown on the title, if the seller has sold the strata lot prior to the repayment of the excess special levy, the funds will be repaid to the buyer who is the “owner” of the strata lot at the time the refund is paid. It requires that the seller and buyer enter into a separate written agreement which essentially relieves the licensee and the related brokerage of their obligation to deposit the money into the brokerage’s trust account. The listing should indicate that the area in question is common property and that the seller has a sublease to a specific parking stall/storage locker. Further, the Local Government Act  — will open in a new tab gives municipalities and regional districts the power to pass bylaws to withhold the issuance of building permits if they would result in an alteration to protected heritage property. in the event that an assignor or assignee is a corporate party, the individual signing on behalf of the corporate entity has the authority to bind the corporation (this may involve conducting a company search and obtaining a copy of the corporate resolution allowing that individual to execute the assignment on the company’s behalf). Others believe that the Strata Property Act does not apply to strata developments used for commercial or industrial purposes. The Seller will draw and register the mortgage at the Buyer’s cost. If there is no cash, how will the commission be paid? (vii) Buyer has Reviewed the Documentation. Tell the Tenants! This clause is usually included in a subject to sale offer. Often, the company which has provided the original warranty has gone out of business (e.g., a 50-year roof may no longer be covered). If relevant, a Form “B” Information Certificate from the section dated (date), attaching the section’s rules, current budget, the developer’s Rental Disclosure Statement (if any), and the most recent depreciation report obtained by the strata corporation (if any). At the time of sale, the buyer may require a number of conditions which are peculiar to manufactured homes on rented pads. It's a disclaimer. Subject to the Buyer entering into an unconditional agreement to sell the Buyer’s property at (address) on or before (date) . A licensee is not required to disclose a known material latent defect to a buyer if the seller has already disclosed all known material latent defects, in writing, to the buyer. However, the seller should be able to prove that the system was in compliance with the regulation in effect at the time the system was constructed. failed to inform the sellers that recovery is expected to flow to the owners as shown on the title at the time of recovery; failed to advise the sellers to negotiate with the buyers the right to share in the recovery; and. Some lenders do not allow assumption of an agreement for sale. If a seller or buyer asks to make the contract subject to entering such an agreement, the contract of purchase and sale should include a subject clause, as follows: Subject to the Buyer and Seller entering into a written contract prepared by the Seller’s lawyer on or before (date) that provides for the assignment from the Buyer to the Seller for nominal consideration of all the Buyer’s right, title and interest in any funds payable by the strata corporation to the Buyer as a result of (Enter the reason for the payment such as the return of money assessed by a special levy between _________certain dates). The Strata Council has the authority under the Strata Property Act to permit an owner or a tenant to use common property. Germain Depository Institutions Act. Some lenders require an interest differential in lieu of or even in addition to a prepayment privilege commonly called a penalty. The Buyer hereby consents to the Seller obtaining a credit report on the Buyer. However, when the property is sold and a new buyer applies for insurance, the insurance company may deem at that time that the property no longer qualifies for insurance coverage. (a) a corporation, as defined in the Business Corporations Act; (b) a limited liability company as defined in the Business Corporations Act; (d) an entity incorporated or other wise created outside British Columbia that is similar to one described in paragraphs (a) to (c). If the seller has a copy of the sublease of a parking stall/storage locker from the developer, the listing licensee can include reference to the parking stall/storage locker when listing the strata lot for sale. For example, restrictions relating to Riparian Areas Regulation  — will open in a new tab under the Fish Protection Act  — will open in a new tabor archaeological sites under the Heritage Conservation Act  — will open in a new taband others that are not currently registered on title may have substantial impact on use or value. Thus, an owner of a shared interest in land acquires a direct ownership interest in land, typically an undivided fractional fee simple interest, which carries with it, by agreement amongst the co-owners, a right to occupy only a portion of the land. As evidence of the (select either removal or remedy) , the Seller attaches the following documents: The Seller discloses that the (select either building or property) did have (describe condition) but has undergone the following corrective measures: The Buyer accepts the condition of the (select either building or property) in reliance on these corrective measures. The chimney must meet current municipal building code and/or insurer’s specifications. A Mortgage Verification letter asking for details should be sent to the lender and kept on file for consultation during the offer presentation to ensure the seller’s status is protected. The SPEA is delineated by a QEP as part of RAR to protect fish habitat from land alteration including consideration of sediment and erosion control; damage or alteration of vegetation, and trails and landscaping. (b) the Contract of Purchase and Sale may provide for a small initial deposit payable within a specified period of time after the acceptance of an offer, which is to be increased to a specified amount upon removal of conditions precedent. Enclosed is $ (amount) being the deposit money in the above-noted transaction. When the water supply expected by the buyer disappears, the consequences can be disastrous. Subject to the Seller’s lawyer approving the financing terms and conditions on or before (date). If the ‘‘standard form’’ Contract of Purchase and Sale is used for a trade related to a development unit that is subject to the provisions of the Real Estate Development Marketing Act, the phrase in the deposit clause shown in scenarios 1 and 2 above that states the deposit will be ‘‘… held in trust in accordance with the provisions of the Real Estate Services Act’’ essentially means the deposit must be held in accordance with the Real Estate Development Marketing Act. The buyer becomes the owner on the date the seller conveys his or her interest in the strata lot to the buyer. To demonstrate, Randy Ready is licensed with ABC Randy Realty, which has entered into an agreement with ABC Big Realty to provide trust accounting services for ABC Randy Realty. Deposits are held as a trustee under the Real Estate Development Marketing Act, which is different from how they are held as a stakeholder under RESA. (6) Sale Price Insufficient To Cover Financial Encumbrances. People in such a situation, can make the listing of their home conditional upon having a binding contract on the house they wish to buy. Licensees should recognize that under section 28 of the Manufactured Home Park Tenancy Act, a seller and buyer of a manufactured home in a manufactured home park must obtain the consent of the landlord to sublease the pad from the former tenant (the seller). More detailed enquiries may require up to two weeks. A Disclosure Statement must be filed with the Superintendent of Real Estate before a developer or a developer’s agent can market one cooperative interest if the cooperative interest is part of a development consisting of two or more cooperative interests. Many people are afraid, and often rightfully so, that their home will sell and there may not be a suitable home to buy on the market at the time they need it to be. Both mediation processes are performed independently of BC Housing, Licensing and Consumer Services. 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