Buyer Needs Extension to close

Mark Weisleder reminds us that getting an extension date on your closing date has costs and that needs to be addressed;    Who Pays? 

Buyers often need to request an extension to their closing date. The main reasons are as follows:·         The buyers have not yet sold their current home; or
·         The buyers' financing has fallen through or the buyers have not complied with all of the lender's requirements;
The main lesson for everyone is that no buyer is automatically entitled to an extension. If a buyer can't close, the seller can take the position that the buyer is in default, sue for the deposit and any loss that they may suffer in the re-sale of the property.Real estate agents are divided as to whether you should buy first and then sell your existing home or sell first and then buy. No solution is risk-free. Buyers also need to remember that just because you are approved for a loan, you still have to fulfill all of the lender's requirements, such as proof of income or debt repayment, before they will give you the money.When you ask for an extension, here are the terms that you can expect to face from a seller. Remember, your bargaining position is not good.·         The seller will likely request an additional deposit, equal to the initial deposit, to be held by the seller lawyer in trust;
·         The buyer will have to pay the seller's interest costs on any mortgage that cannot be discharged; so for example, if the seller has a $300,000 mortgage and interest accrues at 4% interest or $33 per day, then the buyer has to pay this cost for the full extension period;
·         The buyer will pay the seller's legal fees to do the extension, which can range from $250 - $500, plus HST; and
·         The buyer may have to pay additional costs, depending on when the extension was requested; - for example, if the extension is requested on the closing day, and the seller has already packed up the truck, the seller may request payment of all of their additional moving costs as a result of the request.
One of the main considerations for the seller in agreeing to give an extension is whether they need the money from the sale for their own home purchase closing the same day. This is what occurred to a buyer client of mine who required an extension at the end of October, 2013. Their seller also needed to close a purchase the same day. This seller was able to negotiate an extension of their own sale, but expected my client to pay all of their extension costs as well. Thus my clients had to pay the seller and the seller's seller a total of $2,500 to get a one week extension. This was still a good result for my client, as they could have forfeited their deposit and faced a lawsuit if the seller did not agree or was not able to arrange the extension. If you know that you are going to need an extension, do not wait until the last minute to make the request. Let your lawyer or real estate agent know as soon as possible and make the request, so that no unnecessary costs, such as moving arrangements, are entered into.There is also closing protection insurance available to home buyers and sellers in Ontario. One such company who I work with (full disclosure) is Canadian Home Shield at www.canadianhomeshield.com . They offer insurance coverage for $99 for home sellers and buyers so that if their sale is delayed or cancelled and it is not their fault, they can claim for costs of up to $25,000. I have had several clients take advantage of this policy to collect damages such as increased moving costs as a result of delayed closings.

This Insurance is available here as part of the bundle of services that are available for Purchases and Sales of Homes in the west Toronto GTA.

Call today!

Should you know if it was a METH LAB or Grow OP?

If a Toronto Home you are considering as a purchase was a GROW house and forfeited their hydro meter, required a ESA re -inspection to have their occupancy permit reinstated then paid fines; Do you have the right to know?

HomeVerified Home and Neighbourhood History Reports
OREA has received member inquiries about privacy issues arising from HomeVerified home and neighbourhood history reports. These reports disclose the history of insurance claims and reported incidents of marijuana grow-ops and methamphetamine labs at subject properties. They are currently available for purchase by listing brokers through Teranet's GeoWarehouse.
In response to these member inquiries, OREA reviewed sample HomeVerified reports with outside legal counsel and met with HomeVerified and Teranet. After carefully considering the matter, we have concluded that use of these HomeVerified reports by our members raises significant privacy law concerns.
Specifically, we concluded that if a privacy complaint is made, Canada's Privacy Commissioner would most likely decide that the HomeVerified reports contain personal information under Canada's Personal Information and Protection of Electronic Documents Act. That law requires the consent of the individual before you may collect, use or disclose their personal information for commercial purposes. Despite our efforts, we received no assurances that the necessary consents are being obtained from the individuals whose personal information is provided in these reports.
As a result, OREA would like to advise its members that, at the present time, their commercial use of HomeVerified home and neighborhood history reports without the consent of each individual whose personal information is in the reports, places them at risk of contravening applicable privacy law. Complaints made to Canada's Privacy Commissioner could result in the member being ordered to cease this practice, and in some cases could lead to a court ordering the member to pay monetary damages.
To date our members' inquiries have been limited to HomeVerified's product. We understand there is at least one other provider offering home history reports to our members in Ontario. We will take similar steps to consider whether our members' use of other available home history reports also puts them at risk of contravening privacy laws.
OREA will continue to monitor this issue and will keep its members informed of any further developments. For further information, please contact Ontario Real Estate Association. 

In this instance deferring in favour of criminal activity seems wrong.   If you have a Criminal Charge but the charge was withdrawn or dismissed  I guess that the MOLD in the walls and ceilings will self repair.

I think that Buyers are entitled to this information  http://BuyinginToronto.ca

Going To Traffic Court

I have spent a fair amount of time in Toronto Traffic court recently;
People who are facing charges hire licensed paralegals to get up and talk for 30 seconds. OK maybe a minute before they are cut off by the judge.

Lets examine that. You hired a paralegal to do what you have no experience doing, have never done before, because you don't know the law, and repercussions can be damaging financially to your financial position, insurance company and driving record.

This expense is easily $250 - $400 for that one or two minutes and you are not guaranteed anything.

Mr Data, Can you form a premise? It is possible to do everything right and still lose.    Picard

Yet with selling your own home and the size of that event; you want to stick a sign in your front lawn and invite strangers, hucksters, barter negotiators [take my boat as a down payment] ( I'll give you post dated cheques for the closing.... currently in litigation)

What is the FSBO's Logic?



The Buyer, with a professional buying agent, has a gauge of value, the ability to compare, examine all available properties in detail, the luxury to sit back and evaluate, discuss strategy and then prepare an offer.

It is now in the Sellers Hands.

It is not my job to explain things to you.