Purchaser Moving into Tenanted Property

With all the issues related to eviction, occupation and vacant possession, consider this clause:

“The Buyer agrees that they or their immediate family intend(s) to move into the property on closing. In this regard, the Seller agrees to provide the applicable 60 days’ notice to the Tenant using Form N12 under the Residential Tenancies Act, on behalf of the Buyer and to pay the one month compensation to the Tenant.

The Buyer agrees to provide whatever supporting information may be required to demonstrate that the Buyer or their immediate family will in good faith be moving into the property on closing and to indemnify the Seller for any damages the Seller suffers if the Buyer does not remain in the property for at least one year after closing.

In the event that the tenant disputes the notice as given, then the parties agree to extend the closing of this transaction to a period not more than 60 days, in order to effect the eviction of the Tenant. In the event that vacant possession cannot be obtained prior to closing, as extended, for any reason, then the Buyer shall have the right, but not the obligation, to complete the transaction and accept the Tenant, or cancel the agreement and have any deposit returned, without interest or deduction.”

Certainly, this particular clause addresses many of the collateral issues that arise when a new Buyer wants to move in and occupy the premises personally.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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