Conditional Clauses when Buying a Property

15 March 2017

Every offer usually has some sort of conditions and they're all written for the benefit of the buyer. Take financing for instance, why is it written as "financing satisfactory to the buyer"? What does that mean, a 0% interest rate or 100% financing? No, the clause should state what type of financing is being arranged, not a clause that's open ended for the buyer to change their mind and walk away.

What about a status certificate? It usually reads "to be approved by the sole option of the Lawyer". You know, most Lawyers can't even read a Status Certificate. I had one Lawyer tell me that he did not want his client to buy a condo, so he would not waive it. Once again, the clause is not to be used as an 'out clause', but rather to insure that the Condo Corporation can meet its financial obligations. Why not have a clause that a status certificate will confirm the seller representations as to reserve funds, special assessments, the amount of condo fees currently paid, etc. We need Realtors® to be pro-active in writing these clauses, not being lazy and making them short.