Question:
What about representing a buyer on a rural listing with an owned gas well on the property? The Listing agent says it is owned and seller doesn’t sell any of the gas; it services the property only. Questions to ask? Due diligence? Special Clause? Is it a chattel or fixture or just part of the property title?
Answer:
You have to have an opportunity to find out what precisely this may be.
Is this an asset or liability? It could be either a chattel or a fixture, no information was provided.
Is it regulated and is it inspected?
Is it insured?
What is the cost?
Who maintains it?
Where is the gas located that it draws?
Is there a right to remove the gas for other than household use?
Are there contamination issues?
You would need to know the common law rules related to the removal. You would need a special clause drafted to suit the circumstances.
Brian Madigan LL.B., Broker