HomeBuyer.ca
Homepage Associated Sites Newsletter Our Books Contact Us Sitemap
Homebuyer Homepage
 
PUBLIC SEMINARS
Buying Vacation Property for Pleasure and Profit
Making Money in Real Estate Investing
ARTICLES
WORKSHEETS
Checklists (4)
Charts (2)
Forms (7)
HELPFUL INFO
Glossary
Faq
Useful Links
Financial Calculators
Landlord/Tenant Legislation
Condo Legislation
New Home Warranty Programs
Stats, Surveys, Reports
OUR SERVICES
Consulting
Seminars
Media Interviews
Education
OUR PRODUCTS
Books
ABOUT US
About Us
Our Books
Clients
Testimonials
Douglas Gray, B.A., LL.B.
Services Provided
Associated Sites
DOUGLAS GRAY, B.A., LL.B.
Douglas Gray, B.A., LL.B.
ASSOCIATED SITES
Small Business
Will/Estate Planning
Retirement Planning
Snowbird Lifestyle
WHISTLER CHALET
Whistler Chalet

Visit

LEGAL PITFALLS TO AVOID WHEN BUYING REAL ESTATE

Our Latest Book

If the house value has not gone up or down by the purchase date, and if, for example, another purchaser was found, and no other losses occurred, the vendor (in this hypothetical example) could attempt to claim the deposit funds as “liquidated damages.” This amount is generally negotiable, unless it states clearly in the agreement of purchase and sale that the deposit funds automatically and irrevocably go to the vendor.

Conditional Contract
If the vendor or purchaser has preliminary conditions built into the purchase and sale agreement (“subject to” clauses), and those conditions cannot be met, no valid binding contract exists and neither party is liable to the other.

Void Contracts
A contract is void and unenforceable if the required elements that make up a contract are not present, or if the contract is prohibited by statute (e.g., municipal, provincial, or federal law).

The most important document you will sign will be the offer to purchase, which if accepted becomes the agreement of purchase and sale. It sets out the terms and conditions between the parties and, as in any contract, it is legally binding if no conditions exist in the contract that have to be met before it comes binding. Of course, there can be verbal contracts, but all contracts dealing with land must be in writing to be enforceable. That includes the purchase and sale agreement or a lease, which of course is also a contract.

Five main elements have to be present in order for a contract to be valid. These are: mutual agreement, legal capacity, exchange of consideration, intention to be bound, and compliance with the law. Another obvious element is that it is clear who the parties are. Sometimes people who are flipping properties put their name and then after that “and/or assignee”, as they wish to assign out the agreement before any conditions are removed, or before the deal closes. This legal terminology is fraught with potential peril, in terms of enforceability if one side or the other wants to get out of the deal. Make sure you get advance advice from a lawyer who specializes in real estate law, to avoid legal hassles.

MORE HELPFUL INFO FOR YOUR RESEARCH !

To help your research and save you time and hassle, check out our free checklists and forms on our "Worksheet" section, as well as the stats, surveys, and reports, useful links, etc, on our "Helpful Info" section, both shown on the index on your left.

Copyright © 2024 , Douglas Gray, LL.B. All rights reserved. Any reproduction of the material contained in this website is strictly prohibited. E&OE (Errors and Omissions Excepted). Please refer to Copyright and Disclaimer at bottom of website page. Refer to Books section for related information.

 

    back to top >>
FREE NEWSLETTER s
» Homepage  » About Us  » Clients  » Testimonials  » Education  » Disclaimer  » Privacy Policy
Medora - Vancouver Web Designer Copyright  © 2024, Canadian Enterprise Group Inc. All Rights Reserved.