Foundation Work to be Undertaken

This type of issue arises frequently in commercial transactions.

You will wish to consider:

  1. Eliminating the preamble which appears to minimize the situation somewhat,
  2. Buyer retains a Consulting Engineer,
  3. Seller completes work as approved by Consulting Engineer,
  4. Warranty from Contractors are in favour of Buyer,
  5. Reduction in price,
  6. Holdback, for Buyer,
  7. Holdback under Construction Act,
  8. Release of holdbacks as determined by Consulting Engineer,
  9. Issue addressed in contract both by Conditions and Warranties.

Obviously, have the Buyer’s lawyer draft up the clause. The reduction in price should fund the Buyer’s Engineer.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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