Beware of buying a property from CMHC

[countryproperty]

In the summer of 2010 I had an opportunity to buy a repo from CMHC, in between the accepted offer and the closing date the place was torched. CMHC DOES NOT carry insurance and said they would not do anything. They said I could make an offer on the land, which I did but I lost out on what I considered a good income property. Just wondering if anyone heard of this before.



Normally with a homeowner the buyer would at least have the option to receive the proceeds of any insurance or walk away.



Thanks

Mark

 

[Thomas Beyer]

CMHC is an insurance company .. and probably sold the house "as is, where is .."



There is also a clause is most (commercial) purchase contracts as to "House in similar condition as when viewed on _____" and/or "damage exceeding XX,XXX may be ground for termination of contract by purchaser"

 

[countryproperty]

That is the ironic part I attempted to buy a house from an insurance company that does not insure their houses. Yes it was sold as is where is but it burnt to the ground in the mean time and if they would have had insurance the insurance would have rebuilt it or gave the owners the fair market value in cash which the purchaser which was me would have the option to accept. But since they didn't have insurance I was out of luck.



If a family had sold there home and was under contract and this happened to them they would have no where to go becasue they could not have backed out of the deal to sell there house but they would have no house to move into.



I'm just saying I don't think CMHC is a very good example in a market where they have alot to say. Also they way in which they dealt with my realtor and I certainly did not reflect there values posted on there website.



Mark