Late Notification of Disclosure

What are Related Party Transactions? - Paper Tyari

Question:

Sold a property last night. Once the deal is signed buyer agent tells me. “Oh yaaaa can you sign this disclosure, my wife is the buyer”?

Is this legal in Ontario? As far as I know, you must disclose BEFORE sending an offer.

Answer:

If the disclosure is required at all, then it must be done before the Offer. However, is the registrant buying the property directly or indirectly? It sounds like it would be the “wife”, a related party. If that’s the case, and it’s not an indirect purchase, then the registrant DOES NOT advise the Seller or third parties to the transaction.

Confusion over Disclosure

There is some confusion here. The indirect interest is set out in s.32 of the Act. That disclosure would go to the Seller, only in the case of a direct or indirect interest. The “related party” disclosure under s. 18 of the Code does not go to the Seller; it goes to the registrant’s clients and customers. The problem is that we have one OREA Disclosure Form. It combines both s. 32 and s. 18. They are two separate matters. The source of the answer is the Act and the Code, not the form.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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