Realtor Tips: Protecting Your Buyer When the Seller Wants No Conditions

06 December 2017
Remax-Condos-Plus

When doing an offer, the main focus is usually about what conditions to include, that's important. But sometimes you cannot get an offer accepted with conditions. Not just in a multiple offer scenario, but at times when a seller wants a quick sale and wants the buyer to take the property 'as is'. This is where warranties can play a key role in protecting the Buyer. By warranties, I mean that the seller commits to certain truths about their property. For example, when you want to buy a condo but cannot include a Status Condition clause. You would then want the seller to warrant that 1. The condo has not had any changes or improvements made to it that have not been approved by the condo corp. And also that there are no special assessments coming in the next 6 months.

A lot of agents already do that, but what they miss is the consequences if these warranties are not met. If you don't spell it out, you will end up in court to settle these disputes. For example, if the seller did improvements to his condo without the condo corps approval, you need to add the following words: "The seller either has to get the approval prior to closing or has to make changes to the unit at their own expense, to get that approval. "

So, warranties and their consequences seem like a small part of an offer, but to me, it's critical in protecting buyers.


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