Assume three individuals own a property and they happen to be business partners, who should sign the listing? This could be a “trick” question. The “trick” in this particular question was contained in the first sentence. Was this actually partnership property, or just property owned by three business partners, but held as tenants-in-common? If the title is A, B, C as tenants-in-common, then all 3 sign. The partnership issue is a misnomer and not relevant. If the title is ABC as partners, or title is in the name of the partnership, then one signature is all that is required. So ...
Who Signs for the Partnership?
January 31, 2014
What You Get with the Land
January 16, 2014
Sometimes purchasers like to know what they actually get with the land when they close a real estate deal. So, here’s the list: Every conveyance of land, unless an exception is specially made therein, includes: • all houses, • outhouses, • edifices, • barns, • stables, • yards, • gardens, • orchards, • commons, • trees, • woods, • underwoods, • mounds, • fences, • hedges, • ditches, • ways, • waters, • watercourses, • lights, • liberties, • privileges, • easements, • profits, • commodities, • emoluments, • hereditaments and • appurtenances whatsoever to such land belonging or in ...
RECO Encourages Multiple Offers ~ Penalizes Agent for Missing Opportunity
December 27, 2013
Robert Smith acted for William and Martha Jones in the sale of their property. It was a fully rented triplex asking $500,000 subject to a 5% commission. Mary McPhail, an agent with another brokerage showed the property on 12 January to her clients. They liked it and were serious buyers. Smith was approached by Susan Black, who was unrepresented. She also saw it on 13 January. McPhail called Smith indicating that her clients wished to submit an offer. The sellers instructed Smith to hold off with all offers until 17 January. That would be the “Offer Date”. The MLS was ...
Failure to Cancel a Listing ~ Agent Discipline
September 4, 2013
The Real Estate Council of Ontario (RECO) recently had to deal with the issue of a listing agreement cancellation. The agent apparently indicated that the listing agreement could be cancelled if the client was unhappy. The client was a elderly homeowner who met with the agent and signed the standard form listing agreement in 2008. There was a notable problem at the outset. There was no commencement or expiration dates included. The next day, at her office, the agent inserted the dates. The client never received a copy of the listing agreement. She thought it was a 3 month listing ...
Failure to Ensure Payment of the Deposit ~ Agent Discipline
August 28, 2013
This particular case ends up being rather complicated. On the surface, there were 3 offers, and the agent failed to ensure that the deposit got paid. That was true, and that’s how the discipline committee saw it, when it levied a $10,000 fine. However, the first offer made reference to a $100,000 deposit, and an additional $100,000 to be paid later. The buyer paid two instalments of $50,000. These were credited toward the first or initial deposit. When the first instalment was paid, the agent followed up to ensure that the balance was paid. The first deal fell through because ...
Agent Fails to Protect Client about Lack of Potable Water
August 14, 2013
In this case, an agent failed to protect his clients and was assessed a $10,000.00 fine and the brokerage with whom he was affiliated a $5,000.00 fine for failing to supervise him. These are some of the essential facts: • The Offer was conditional only on home inspection. • The information on the MLS system disclosed that the Property had a well as water supply system and it also had a septic tank. • The agent did not insert into the Offer conditions for quantity or quality of water or with respect to the condition of the septic ...
When Must the Deposit Cheque be Deposited in the Bank?
August 7, 2013
Featured QUESTION: Salesperson Smith prepares an offer for $435,000 on a property located in Toronto, Ontario, on behalf of Buyer Jones. The offer is drafted and signed by the client on Tuesday and includes a deposit cheque for $20,000 to be placed in the brokerage's real estate trust account following acceptance. The buyer will require a new first mortgage of $150,000 and an appropriate condition is included in the offer. The offer is accepted by the seller on Wednesday. When is the last day that the cheque could be put in the real estate trust account? ANSWER: Your ...
Grandparents Rights are Changing in Ontario
July 17, 2013
Grandparents fell a little on the short side when it came to rights to access their grandchildren. Thanks to Kim Craitor an MPP from Niagara, this will likely change. An amendment to the Children’s Law Reform Act will entitle grandparents to bring an application before a Judge to permit them access to their grandchildren, should the Judge determine that it is in the best interests of the child. Some 75,000 grandparents in Ontario are currently estranged from their grandchildren. So, this legislation will be welcome news. Also, note that a person other than a party to a domestic agreement may ...
Minor Agreement Changes ~ Notices, Clarifications or Amendments
April 15, 2013
From time to time there will be some small glitches in an agreement. Some small matter was incorrect, misspelled, or overlooked in the “heat of the moment”. The seller is John Smithe. That’s what is says on the Deed, and the listing agreement. Through inadvertence, the “e” was left off his name, and no one noticed including John Smithe, himself. He uses his usual signature, but no one can read that. No one can tell whether it says “Smithe” or “Smith”. It’s just a scrawl. So, what can we do here? Is this important? Let’s first determine whether there ...
Contract Start Time
February 12, 2013
Question: Precisely, when does a contract start to run? When does the clause time actually start? Assume an offer is going on via fax. The Seller is in a different city. The Buyer accepted the counter offer, acknowledged and signed confirmation of acceptance on the 2nd of November. The next evening, the seller signs the acknowledgement and sends the paperwork, which is given to the buyer on the 3rd of November. When does the clock start for the clauses period? Answer: The strong preference would be to use a clause which contains a clear ending date. That way, the ...