Consumer Reports: Meaning

The standard form Agreement of Purchase and Sale contains the following wording:

“25. CONSUMER REPORTS: The Buyer is hereby notified that a consumer report containing credit and/ or personal information may be referred to in connection with this transaction.”

So, what does that mean? Let’s have look at the Forms Explained document:

“25. CONSUMER REPORTS: The following paragraph notifies the Buyer that a personal or credit check may be obtained and referred to.”

Well, that was helpful.

So, when might the Seller be interested in the Buyer’s credit:

1. When the Buyer is assuming an existing mortgage,
2. When there is a “Vendor Take Back Mortgage in place” (VTB) (1^st or 2^nd),
3. When there is a long or extended closing,
4. When someone other than the Buyer paid the deposit,
5. In any other circumstances when the Seller feels somewhat uncomfortable.

This particular paragraph is simply a “notice”.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com