Everyone loves Schedule “B’s”. They are always filled with insight and inspiration!
Let’s have a look at this one:
The Buyer acknowledges that the property is being sold “as is and “where is”. The Seller makes no warranties as to the following, but not limited to: structure, wiring, plumbing, insulation, water damage, environmental. The Buyer acknowledges having done their own due diligence in regards to the above mentioned prior to signing this Agreement of Purchase and Sale”.
There are Listing agents who love this paragraph and insert it via Schedule “B” into all their agreements.
Then, there are Buyer agents who absolutely despise this paragraph and wish to delete it from every Agreement of Purchase and Sale.
Question:
What does this actual paragraph actually say?
Answer:
Nothing!
Question:
What does this actual paragraph actually mean?
Answer:
Nothing!
Then, who cares whether it’s in or out? It doesn’t change anything. The law is caveat emptor. The Buyer bargains for what is there. The Seller makes no warranties. This basic legal principle goes back hundreds and hundreds of years.
The last time the Supreme Court of Canada looked at it was in the case of Fraser-Reid v. Droumtsekas in 1979. And, they simply reaffirmed what the law has been for centuries.
For some reason, there are both Listing agents and Buyer’s agents who are unaware of the law.
Brian Madigan LL.B., Broker