Some seller clients had asked me recently about the fulfillment of conditions form 124.
They had emailed me lots of documents which were required to satisfy a condition of purchase. They are very straight forward documents (receipts actually). I told them I would forward the information to the buyers’ agent but I also needed them to sign form 124.
They caught me off guard by asking if I could sign it on their behalf, since they were out of town for several days.
Does a seller have to sign a 124 for the simple provision of a document?
Without the exact wording in the Condition, it’s difficult to know. If the Agreement of Purchase and Sale contains a Condition Precedent written in OREA format, then, the agreement will become null and void unless:
1) there’s an NOF, or
2) a Waiver.
There is no option for an agent to sign an NOF (or Waiver) on behalf of a client unless they have a Power of Attorney. If they do, then they can sign, otherwise they have no authority.
In actual fact, if the condition were drafted as a Condition Subsequent then no documents would be required at all, Obviously, the Sellers would be happy!
In fact, this doesn’t really sound like a Condition at all. It’s likely just a term of the contract.
Brian Madigan LL.B., Broker