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Word has it that our governments are working on 2 changes which are (supposedly) going to protect buyers of Winnipeg Homes in this hot real estate market. The first change involves lengthening the condo-document clause from 48 hours to perhaps as long as 7 days. The second change involves adding a clause to the Offer to Purchase which strongly suggests that the buyer demands a Sellers Condition Statement. Both of these changes are like ‘putting lipstick on a pig’, they might make it look like you’re doing something, but no real benefits are derived from it.
There is however, some real protection that could be offered to buyers of Winnipeg homes and condos. Here is the problem:
A buyer purchases a home in April, with a possession date of July 1st. The offer clearly states that the home will be in the same condition as when it was seen back in April. Possession date comes around, the buyer opens the front door to the house and finds that all interior brass door knobs have been taken by the seller. (Sounds far-fetched? This is an actual example) Here are some other common examples:
Seller has removed appliances that were included in the sale
Seller has swapped appliances for older models
Seller removed all window coverings, leaving gaping holes in the walls
Seller has damaged the house during the move
The buyers mood quickly turns from excitement to disappointment to anger, and he calls his lawyer (or if its on a weekend, he calls his REALTOR®). Once he gets a hold of his lawyer, he quickly learns a harsh bit of reality: There is no money hold-back provision in our province. In fact, every last cent of the purchase price is turned over to the sellers lawyer in exchange for the keys to the house. The only option is to take the seller to small-claims court.
Add a clause to the contract that allows the buyers’ lawyer to hold-back a set percentage of the sales price for a limited time, say 2 weeks. This will give the buyer plenty of time to satisfy themselves that the house they got in July is the same one they fell in love with back in April. And it will give the Sellers of Winnipeg homes the incentive to make sure the property is in the same condition, when they turn it over to the buyer.
Similar Posts:
- On Open Houses
- Sellers Need to Get Practical About Price
- Winnipeg Real Estate Market Update for July 2011
- Choose wisely for home additions — some can be a subtraction
- Matching your personality to your downtown Condo
