Question:
Does the Seller have to agree to fire department and other related municipal searches?
Answer:
Yes, they do, in they signed the standard Form OREA Agreement of Purchase and Sale.
Here’s the line in paragraph 8:
“….. Seller hereby consents to the municipality or other governmental agencies releasing to Buyer details of all outstanding work orders and deficiency notices affecting the property, and Seller agrees to execute and deliver such further authorizations in this regard as Buyer may reasonably require.”
The municipality doesn’t have a copy of the agreement between the Buyer and the Seller in most instances. So, many municipalities may be looking for a simple, straightforward authorization to be completed and submitted before they will respond.
Expecting that to be the situation, OREA included the provision that the Seller will agree to sign it. Naturally, it’s a proper requisition and it needs to be answered before completion of the agreement.
Brian Madigan LL.B., Broker