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OREA forms continue to confuse lawyers and consumers
When does a real estate deal close — when the deed is registered, when the keys and money change hands or when the seller moves out of the house?
This question was raised by London, Ont., lawyer Lorne Campbell in response to my Oct. 2 column discussing the Ontario Real Estate Association (OREA) standard purchase agreements forms
The forms set a 6 p.m. deadline for "completion," but the land registration system shuts down at 5 p.m. I referred to the 6 p.m. deadline as "problematic."
Responding to my criticism, Campbell emailed me to share his opinion that completion of the transaction under a standard OREA agreement is more than simply registering the deed. A proper reading of the form, he wrote, shows that completion involves both registration of title and giving vacant possession.
In Campbell`s view, a proper interpretation of the OREA form is that both aspects of the transaction — registration and giving vacant possession — must be completed by 6 p.m.
The exact wording of the form is that the agreement "shall be completed by no later than 6 p.m. on (the date of completion). Upon completion, vacant possession of the property shall be given to the buyer . . ."
Read the full article here.
When does a real estate deal close — when the deed is registered, when the keys and money change hands or when the seller moves out of the house?
This question was raised by London, Ont., lawyer Lorne Campbell in response to my Oct. 2 column discussing the Ontario Real Estate Association (OREA) standard purchase agreements forms
The forms set a 6 p.m. deadline for "completion," but the land registration system shuts down at 5 p.m. I referred to the 6 p.m. deadline as "problematic."
Responding to my criticism, Campbell emailed me to share his opinion that completion of the transaction under a standard OREA agreement is more than simply registering the deed. A proper reading of the form, he wrote, shows that completion involves both registration of title and giving vacant possession.
In Campbell`s view, a proper interpretation of the OREA form is that both aspects of the transaction — registration and giving vacant possession — must be completed by 6 p.m.
The exact wording of the form is that the agreement "shall be completed by no later than 6 p.m. on (the date of completion). Upon completion, vacant possession of the property shall be given to the buyer . . ."
Read the full article here.