

Bob Aaron bob@aaron.ca
December 11, 2004Be ready for the unexpected in real estate deals
There is no such thing as a simple transaction Only so much can be done to repair problems after fact |
Sooner or later, every real estate lawyer will experience the Deal From Hell. At one time, they would be few and far between, but lately it seems they’ve been occurring with increasing frequency in my office and in those of many of my colleagues.
During the last week of November, I experienced far more than my share of problematic deals. Here are a few of the nightmare real estate transactions that crossed my desk in the space of only five days. The events are real. The names are not. Susan had purchased one of the townhouses using a standard freehold agreement of purchase and sale, but there was no purchase agreement for the parking space, which should have been prepared on a separate condominium agreement form. Nor was there any conditional clause for a status certificate for the parking space, which was not available on the closing date. A great deal of last-minute scrambling managed to put the deal back together. She was shocked when I presented her with a rental contract provided by the builder that required her to pay close to $70 a month for the combined water heater and furnace unit. No one had ever told her she had to rent the entire heating system. She was forced to close and spend $700 a year more than she anticipated. The seller had been told in the builder’s sales office that he could use a surface parking spot for his second car, and he mistakenly believed he had the exclusive use of the space. The seller admitted he was in breach of the contract with Martin because he could not deliver title to the second parking unit. After hours of negotiations, Martin settled for a modest price reduction of $3,000. The message: There is no such thing as a simple, straightforward real estate deal. Have a lawyer check your agreement of purchase and sale before you sign it. |
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Bob Aaron is a Toronto real estate lawyer. He can be reached by e-mail at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818. Visit http://www.aaron.ca
Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818.
Visit the Toronto Star column archives at https://www.aaron.ca/columns for articles on this and other topics or his main webpage at www.aaron.ca.