Question:
I just received an Offer on my listing:
“The seller agrees to allow the buyer to add or remove one or more names as buyer to this transaction through an amendment to the agreement of purchase and sale and/or direction regarding title at any time on or before the completion. Seller further agrees to execute all necessary documents that may be required to do so”
Is this reasonable?
Answer:
This is a wonderful clause for Buyers. It acts just like an “option to purchase”. Last year we saw the market go down 20% in some cases from the purchase date to the closing date.
So, the Buyer will walk away as the purchaser. They just incorporated a numbered company with no assets; they’re the new purchaser and original Buyer is gone. The cost of the option is just the deposit.
Brian Madigan LL.B., Broker