Appraisal Conditions are soon to return to the Toronto Market

Appraisal Conditions have now returned to the Toronto market in some locations. There are areas where the prices are escalated 20% per year, over two years back to back. Are those prices sustainable?

If you are a Buyer and you simply have “pre-approval” for financing from a Bank, this is the clause that you need:

APPRAISAL

This Offer is further conditional upon the Buyer arranging, at the Buyer’s own expense, a satisfactory Appraisal to the Buyer in the Buyer’s sole and absolute discretion. Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than 5:00 p.m. on day/month 2022, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Buyer and may be waived at the Buyer’s sole option by notice in writing to the Seller as aforesaid within the time period stated herein.

This is in addition to the Financing Condition.

This appraisal clause will actually be helpful to the Seller.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

Comments 2

  1. In a few weeks, it might just be possible to get a listing agent / seller to accept that clause. But not yet- and despite your wise counsel, your buyer and you will lose in multiples.
    Mebbe add a “strategy” warning – if your buyer has 30% or more down, they may not need this – if your buyer has less down or is ‘border line’ on qualifying and might not get a loan if prices fall 10% from the current peak … tell them the full options/ramifications of their primary lender reneging … and them see if they want to undertake the risks or wait.

    1. Post
      Author

Leave a Reply

Your email address will not be published.