Toronto Real Estate And Promises, Promises

In various Toronto real estate transactions, sellers may promise things nonchalantly to buyers or buyers may ask for promises the sellers can’t really keep. Buyers backing out of a deal can be one undesirable result of these promises, as can putting yourself in the position of being sued for damages.

If a Toronto real estate view is promised to be unspoiled, consequences could arise later on.

Promises fall into two categories in real estate lingo, warranties and representations. Warranties are essentially a promise that things will be in good working order. If this is found to not be the case, the seller can be sued for damages. The other type of promise is called a representation. A misrepresentation is an example of when things can be more serious, because it can allow buyers to walk out on a deal.

A good example of a warranty issue is promising the buyer that the washer and dryer that come with the house are new and in great working condition. If the buyer moves in and finds that’s not the case, they can sue for damages.

An example of a misrepresentation is relaying a message about the redevelopment of the area: a buyer falls in love with a property that faces a forest or meadow and is told that the owner of the land is not planning on developing that property and buys the home for that reason. The seller could have been passing on information he thought of as fact, or something he just heard in passing. Regardless, if a Wal-Mart is built in the area within a year and the buyer can prove they bought the home specifically for the naturalistic view, they can cancel. This only works however, if the buyer can prove that.

Representations and warranties are perfect models of how something said in passing or casually written on an agreement can be a bad idea later on.

These reasons also provide extra assurance that having a Toronto real estate agent by your side through the home buying or home selling process is an added advantage that can’t be replaced. Your real estate agent may also add an additional agreement to the transaction that gives buyers extra time to determine if everything is working properly, as warranties typically expire on the closing date.

A real estate lawyer can also assist in reviewing all of the transaction documents before they are signed, sealed and delivered.

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