Gas Well on Property

Question:
What about representing a buyer on a rural listing with an owned gas well on the property?  The Listing agent says it is owned and seller doesn’t sell any of the gas; it services the property only. Questions to ask? Due diligence? Special Clause? Is it a chattel or fixture or just part of the property title?

Answer:

You have to have an opportunity to find out what precisely this may be.

Is this an asset or liability? It could be either a chattel or a fixture, no information was provided.

Is it regulated and is it inspected?

Is it insured?

What is the cost?

Who maintains it?

Where is the gas located that it draws?

Is there a right to remove the gas for other than household use?

Are there contamination issues? 

You would need to know the common law rules related to the removal. You would need a special clause drafted to suit the circumstances.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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