Humber Real Estate - Course 2, Module 17, Writing Conditions to be Included in an Agreement of Purchase Sale

Humber Real Estate - Course 2, Module 17, Writing Conditions to be Included in an Agreement of Purchase Sale Binding agreement - When an offer doesn't contain any conditions, it's a _________ _________ once accepted by all parties. - Condition precedent - Condition subsequent - What methods can be used to draft conditions? A true condition precedent. - If a party is not permitted to waive a condition and is required to fulfill the condition, what is this called? A condition in an agreement calling for an event to happen, or an act to be performed, before the agreement becomes binding on the parties. - Describe a 'Condition Precedent' A condition referring to a future event that, upon its occurrence, causes the contract to be no longer binding on the parties. Termination of the agreement can only be based on the defined circumstances identified in the condition. If no notice is provided, the conditions within the agreement are deemed to be waived and either party can demand the agreement be completed. THEREFORE no waiver provision is ever included in a condition subsequent clause. - Describe a 'Condition Subsequent' Condition precedent. - The vast majority of residential conditions are ________ ________. Step 1. Who is to do it? Step 2. Who is to pay for it? Step 3. What is to be done? Step 4. Within what time limit? (date & time) Step 5. What happens in the event it is not done? (No notice is required if the party is not proceeding) Step 6. Can it be waived? (Notice to waive the condition must be received by the other party prior to the time period expiring) - What are the 6 steps to identify information required for the condition precedent clause? Providing notice to the other party that the condition has been fulfilled. - After a condition is fulfilled, the final step which has to happen before the time limit is what? Allows the party for whose protection the condition was included to remove that condition entirely rather than fulfilling the condition. This action results in a binding agreement. - What does inclusion of a waiver provision in a condition precedent allow for? Buyer - Most conditions in a residential transaction are for the benefit of the __________. - Obtaining financing - Having the property inspected - Confirming insurance can be obtained - Sale of a buyer's property - What are some common conditions in a residential offer? The review of the condominium documents, such as a status certificate. - What type of condition would be associated with a condo? An inspection to confirm fire and building code compliance. - What type of condition would be associated with a multi-unit residential property? Testing the well and/or septic system. - What type of condition would be associated with a rural property? Confirming the legal status of any improvements such as a dock or a boathouse. - What type of condition would be associated with a waterfront property? Reviewing the leases and financial information. - What type of condition would be associated with an investment property? Obtaining a building permit or confirming available services. - What type of condition would be associated with vacant land? Waive - Prior to drafting a condition using the precedent method, ensure the party is able to ________ the condition. Action - A true condition precedent requires what by a third party, independent of the seller or buyer? - Condition precedent can be waived (i.e. a buyer's request for a new survey) - True condition precedent cannot be waived (i.e. a condition dependent on an Advisory Committee providing consent to change a zoning bylaw) - The only difference in the way it's written is that when it's a true condition precedent, the waiver provision is not included - What is the difference between condition precedent and true condition precedent? This condition must be met; it may not be waived. No waiver provision is possible because the conditio