Termination of Utilities Clause where Building Permit Is Required

In Toronto’s hot real estate market some people are looking for lots not buildings. But, there are no lots, just properties in decent locations with old buildings upon them.

So, if you are going to buy one of those properties you will face a problem. You require a demolition permit in order to get going. And, in order to obtain that permit you will have to prove that you have terminated the utilities. If they are still “on”, your application will be premature. Don’t forget that only the registered owner can apply for that permit.

If you would like to get things going, at least so there will be no waiting once the property has been acquired, and then you will need a clause like this:

“The parties agree that the buyer shall be entitled to make application to the municipality and to any and all utilities providing service(s) to the property, immediately after the execution of this agreement in the name of and on behalf of the seller, for the termination of all such utility services including hydro, water, gas, sewage, cable TV, telephone etc., and the seller, if required by such utility, shall pay for all such outstanding services to the date of termination, provided that any termination fees shall be paid by the buyer. The seller will execute any and all such documents as may be required by the municipality and/or the utilities to give effect to this provision.”

Put the above clause in the Offer, and once you have closed you may already have the demolition permit in hand.

Brian Madigan LL.B., Broker

Leave a Reply

Your email address will not be published. Required fields are marked *