There is an Acknowledgement Provision contained in the standard OREA Agreement of Purchase and Sale.
For the Seller
ACKNOWLEDGEMENT
I acknowledge receipt of my signed copy of this accepted Agreement of Purchase and Sale and I authorize the Brokerage to forward a copy to my lawyer.
__________________________ ___________
(Seller) (Date)
__________________________ ___________
(Seller) (Date)
Address for Service _______________________________
_______________________________ _____________
(Tel. No.)
Seller’s Lawyer ___________________________________
Address _________________________________________
Email ___________________________________________
_________________________________ ______________
(Tel. No) (Fax. No.)
For the Buyer
ACKNOWLEDGEMENT
I acknowledge receipt of my signed copy of this accepted Agreement of Purchase and Sale and I authorize the Brokerage to forward a copy to my lawyer.
__________________________ ___________
(Buyer) (Date)
__________________________ ___________
(Buyer) (Date)
Address for Service _______________________________
_______________________________ _____________
(Tel. No.)
Buyer’s Lawyer ___________________________________
Address _________________________________________
Email ___________________________________________
_________________________________ ______________
(Tel. No) (Fax. No.)
Reference in the Notices Section
The authority for the delivery of Notices is found in the Notices Paragraph, which states in part as follows:
“Document shall be deemed given and received when ….. hand delivered to the Address for Service provided in the Acknowledgement below….”.
Address for Service
So, it provides an address for service, and you just have to “hand deliver” the Document. The actual person does not have to be present.
Many times this information is omitted, which means that the opportunity to hand deliver the document simply to the address is not available.
Lawyer Designation
Also, there is information about the lawyer acting for each of the parties.
The Buyer’s lawyer needs to search the title. Their name should be placed in the document so that the “authorization” to deliver a copy is enacted.
The Seller’s lawyer needs to respond the letter of requisitions and prepare documents. If the two lawyers’ names are placed in the document, then they can start to do business.
Both lawyers should receive the copies of the Agreement as soon as it is signed. Don’t wait until all the conditions have passed.
Completing the Acknowledgement
Assuming, an Offer from the Buyer:
SUBMISSION
First, fill in the Buyer’s address for service.
fill in the names of the respective lawyers (if known).
the contact information for the Buyer’s lawyer should be inserted.
Second,
following acceptance or on a signback, from the Seller,
the contact information for the Seller’s lawyer should be inserted.
RECEIPT
Third, The Buyer following receipt of their accepted copy of the Agreement should sign the Acknowledgement confirming that they have it.
Fourth The Seller following receipt of their accepted copy of the Agreement should sign the Acknowledgement confirming that they have it.
COPIES
Fifth The Seller should forward a copy of the Acknowledgement to the Buyer.
Sixth The Buyer should forward a copy of the Acknowledgement to the Seller.
Now, both parties have copies of the fully executed documents.
What Really Happens?
Often, nothing! Nobody bothers to fill it out at all.
Those six steps would simply take far too much time.
So, what do agents often do?
They fill it out right at the beginning. So, they say that they acknowledge receipt of:
- The final version of
- The accepted agreement
BEFORE they have even submitted their Offer in the first place.
This is a lazy, casual, laid-back, cavalier approach.
In fact, it is wrong. It is disingenuous. It is incorrect. It is a deceptive practice. It is a fraudulent practice. It is unethical and can result in a violation of the Code of Ethics.
Credibility of Evidence in Lawsuits
However, let’s assume a lawsuit. The agent is suing the client for their commission, the agent is supporting and simply called as a witness in a case by their client against the other party, or let’s assume the worst possible case, namely that the agent is personally being sued for malpractice.
And, there it is in the Court documents:
- The Acknowledgment SIGNED
- With the OFFER
This won’t go well in cross-examination.
This simple, straightforward conclusion will be that this agent is:
- incompetent
- Lazy
- Foolish
- A liar
- Deceptive
- Foolhardy
- fraudulent
These are not helpful if you would like your evidence to be believed by the Court.
Conclusion
It’s a few extra steps, but complete the Acknowledgement section properly.
Brian Madigan LL.B., Broker