There are custom clauses we’ve collected and refined over the years that could be helpful when you’re writing an offer for your buyer clients. Use them as a template and tweak to fit your deal.
ASSSUMPTION OF TENANTS:
The Buyer agrees to assume the existing tenants in the lower, main and upper units upon completion of this transaction.
The Seller agrees to provide to the Buyer a record of any and all deposits or pre-payments made by the tenants and to instruct their lawyer to make an adjustment in favour of the Buyer for the sum total of such amounts.
The Seller represents and warrants that the lower unit is occupied by a tenant with a month to month lease, at the rate of $1522.50 per month, payable on each month; the main unit is occupied by a tenant with a month to month lease, at the rate of $2,994.25 per month, payable on each month; the upper unit is occupied by a tenant with an existing 12 month lease, at the rate of $2,550.00 per month, payable on each month. The Parties agree that this representation and warranty shall survive and not merge on completion of this transaction, but apply only to those circumstances at completion of this transaction.
The Seller represents and warrants that none of the tenants have given notice to the landlord of their intent to end their current lease (whether for a fixed period or on month to month) as of the date of this agreement.
The Seller represents and warrants, to the best of the Seller’s knowledge and belief, that there are no disputes between the Seller as landlord and any tenant as to the state of repair of the leased premises, the payment of rents, contravention of applicable rent review legislation for residential tenancies, or other material items concerning the tenants’ lease agreements other than as specifically set out in this Agreement of Purchase and Sale. The Parties agree that these representations and warranties shall survive and not merge on completion of this transaction, but apply only to those circumstances existing at completion of this transaction.
Upon completion, the Seller shall provide the Buyer with a notice to all tenants advising them of the new owner and requiring all future rents to be paid as the Buyer directs. The Seller will pay to the Buyer any rent paid to the Seller in error or in violation of the direction or agrees to refuse to accept rent from tenants or return it to them.
ADJUSTMENT TO CLOSING DATE:
Notwithstanding the completion date set out in this Offer, the Buyer may advance (move to an earlier date) or push (move to a later date) the completion date of the transaction by not more than 30 days, by giving written notice of the amended completion date to the Seller or the Seller’s Solicitor at least 30 days in advance of the earlier of the completion date set out herein and the amended completion date. The amended completion date must not fall on a weekend or holiday.
CREDIT UPON CLOSING:
The Seller agrees to provide a credit to the Buyer on Closing in the amount of $1,000.00 which shall be adjustment on the statement of adjustments prepared by the seller’s lawyer.
COMPLETION OF WORK GUARANTEE AND HOLDBACK:
The Seller represents and warrants that prior to the completion date the flooring throughout the unit will be fully replaced with the flooring as discussed, installed by a professional flooring company to a high standard in a good and workmanlike manner.
The Seller further agrees that in the event that the flooring installation is not fully completed prior to the completion date, the Buyer shall be entitles to a holdback in the amount of $15,000.
Provided that the flooring is fully installed as specified above, on or before July 31, 2021, the holdback shall be released to the Seller in full.
In the event that the flooring is fully installed as specified above, after July 31, 2021 but on or before August 30, 2021, $10,000 of the holdback shall be released to the Seller and the remaining $5,000 shall be paid and released to the Buyer as compensation for the delay.
In the event that the flooring is not fully installed on or before August 30, 2021, the holdback of $15,000 shall be paid and released to the Buyer on September 1, 2021 and such payment shall conclude the Seller’s responsibility with respect to the flooring.
CONDITION OF PROPERTY UPON CLOSING:
The Buyer agrees that the Seller may leave any and all furniture and items behind at the property upon closing that they do not wish to take with them. The Buyer shall arrange for any surplus items to be donated or disposed of at the Buyer’s sole cost.
The Buyer acknowledges that the square footage as listed on the MLS listing (AMOUNT sf) differs from the square footage on the MPAC Residential Floor Area Report (AMOUNT sf) and the Buyer agrees that the sale is based on the lower of the two.
The Seller represents and warrants that any renovations or improvements done during the time the Seller has owned the property have been done with qualified contractors, with all required permits obtained, all such permits are closed, and that by five (5) days before closing, the Seller will transfer to Buyer copies of all invoices related to the renovations marked paid as well as copies of any warranties.
NO OUSTANDING PERMITS, WORK ORDERS, NOTICES OF DEFICIENCY:
The seller warrants that work done the there are no open permits, work orders or notices of deficiency outstanding against the property, and if so the seller will comply at the seller’s own expense prior to the completion date.
There are custom clauses we’ve collected and refined over the years that could be helpful when you’re working with seller clients. Use them as a template and tweak to fit your deal.
The Seller acknowledges and agrees that the Listing Agent(s) shall pay for the cost of staging for the home as follows:
- Staging consultation fee
- Backyard staging (patio furniture set)
- One-bedroom staging (headboard, dresser, two side tables, two lights)
The Seller acknowledges and agrees that the home staging as described above is included for a maximum of thirty (30) days. Any renewal(s) of staging thereof, shall be at the Seller’s own costs and discretion, payable directly to the respective stager by the Seller.
The Seller acknowledges that the Listing Agent(s) agreement to pay for staging is predicated on being able to pay for those costs out of a commission earned on the sale of the property. In the event that the property does not sell due to expiration or the Seller requests the listing be cancelled, terminated or suspended, the Seller agrees to reimburse the Listing Agent(s) for the full cost of the staging including HST and that payment shall be made within 10 business bank days upon being provided an invoice.
All other marketing related expenses incurred for the promotion of this Listing herein (such as pre-list home inspection, photography, floor plans, video, feature sheets, print marketing material, online targeted marketing, etc.) will be paid by the Listing Agent(s) herein, and no reimbursement shall be sought from the Seller(s) by the Listing Agent(s)/Brokerage.
However, should the Listing Expire or the Seller(s) requests a Cancellation, Termination, Suspension etc., of the Listing for any reason and request copies of the photographs used by the Listing Agent(s)/Brokerage, the Seller(s) shall reimburse the Listing Brokerage, for the full cost of the photo shoot and photographs including HST, within IO business banking days upon the receipt of an Invoice from the Listing Brokerage respecting same; and the Listing Agent(s) shall immediately provide electronic versions of such photographs to the Seller(s), and shall further grant written authorization for the Seller(s) to use said photographs.
There are custom clauses we’ve collected and refined over the years that could be helpful when you’re working with landlord clients. Use them as a template and tweak to fit your deal.
MUTUAL RELEASE SECURED FOR PRIOR AGREEMENT TO LEASE:
This Offer is conditional upon the execution of a Mutual Release for a prior, in force, Agreement to Lease that all parties wish to not proceed. Unless the Landlord gives notice in writing delivered to the Tenant personally or in accordance with any other provisions for the delivery of notice in this Agreement to Lease or any Schedule thereto not later than 9:00 p.m. on the fifth (5th) business day following the acceptance date of this Offer, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Tenant in full without deduction. This condition is included for the benefit of the Landlord and may be waived at the Landlord’s sole option by notice in writing to the Seller as aforesaid within the time period stated herein.
There are custom clauses we’ve collected and refined over the years that could be helpful when you’re working with tenant clients. Use them as a template and tweak to fit your deal.