Schedule “B”s are used by Listing Brokerages to add some standard provisions to an Offer.
Really, they should be restricted to interest upon the deposit which will be held by the Brokerage.
The problem is that they try to include many other things that are negotiable between the parties like the effect of non-payment of the deposit. The Schedule “B” will often say “no deal” in this case. That is specifically contrary to the best interest of their own client, the Seller. But, they don’t care. They got it somewhere. They include it, and they don’t even know what it means. Actually, this can come from their lawyer, and if it does, it’s included in their Schedule “B” forever.
Then, they might talk about tax assessments and a new system coming in. Yes, that was a great clause in 2007!
Most contain out of date comments. They predate the latest revision of the Form in 2012, since they are now included in the preprinted document.
Actually, I love them and I don’t want them to stop. It is an advertisement of their incompetence. So, when I have to refer to them as being 11 years out of date in an Expert Witness Report, it will be very clear and straightforward to the Judge.
Most Schedule “B”s are simply an advertisement of incompetence!
If you are on the buy side, read them carefully. And if you need to, amend them to suit your convenience. Likely, they won’t even notice, since they haven’t read the document themselves in the last decade.
Brian Madigan LL.B., Broker