Release From Prior Agreement #2

This is another clause, used by real estate agents:

Release from Prior Date

“This Offer is conditional upon the Seller obtaining a properly executed Mutual Release from a prior Agreement of Purchase and Sale. Unless the Seller gives notice in writing delivered to the Buyer personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than 8:00 p.m. on _, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This is a true condition precedent and may NOT be waived by the Seller.”

Clause broken apart

“This Offer is conditional upon

the Seller obtaining a properly executed Mutual Release

from a prior Agreement of Purchase and Sale.

Unless the Seller gives notice in writing delivered to

the Buyer personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto

not later than 8:00 p.m. on _,

that this condition is fulfilled,

this Offer shall be null and void and

the deposit shall be returned to the Buyer in full without deduction.

This is a true condition precedent and may NOT be waived by the Seller.”

Clause with commentary in ITALICS

“This Offer is conditional upon

the Seller obtaining a properly executed Mutual Release

obligation is upon Seller

from a prior Agreement of Purchase and Sale.

This is the Mutual Release from the first Buyer of the property

Unless the Seller gives notice in writing delivered to

Seller is to give “notice”

the Buyer personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto

method for delivery

not later than 8:00 p.m. on _,

time period

that this condition is fulfilled,

namely the Seller did in fact obtain the Mutual Release

this Offer shall be null and void and

this agreement is not proceeding

the deposit shall be returned to the Buyer in full without deduction.

Buyer gets their deposit back

This is a true condition precedent and may NOT be waived by the Seller.”

Again, do we want this? Does this clause give too much power to the first Buyer? Maybe the first Buyer is in breach in that first deal. If the Seller is prepared to go ahead, is the Buyer on the second deal OK with that?

Brian Madigan LL.B. Broker

www.OntarioRealEstateSource.com

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