Taking Clean Possession

Welcome to the first edition of the Arora Zbar LLP newsletter, formerly, the David Simon newsletter!

This month's newsletter deals with cleaning especially in cases where a property was tenanted.

If you’re acting for a buyer and want to make sure the premises are cleaned by closing do not just put in a clause that obligates the seller to clean - that’s basically not enforceable. Many buyers complain that the seller did not do a good job with cleaning. But is the buyer going to sue the seller for the cost of the cleaning?

A holdback can work, but you have to carefully craft the wording regarding the release of the funds to the right party.

Strategies for a cleaner outcome:

1. Buyer’s Satisfaction. Obligate the seller to clean the unit to the standards expected by the buyer. This amount can be based on a cleaning company's quote or an agreement between the parties.

2. Pre-Closing Walkthrough: Obligate the seller to allow the buyer a walkthrough a day before closing and to decide if the cleaning meets the buyer’s approval.

3. Price Reduction: If the property isn't clean during the pre-closing inspection, reduce the purchase price to cover the agreed upon cleaning costs, then take possession of the dirty house.

Did you know? I offer real estate agents and mortgage brokers complimentary short phone consultations. We are super transparent about pricing, check out our app at www.pricemyconveyance.com - it calculates property transfer tax, too!

Contrary to what people think, a lawyer is not more expensive than a notary. Remember that all lawyers are notaries, but notaries are not lawyers. My experience is that as soon as there is a problem with a deal most notaries will tell the client to see a lawyer for help. So why not start with a lawyer?  

A reminder that Arora Zbar LLP has 3 lawyers offering services in real estate transactions, corporate law, commercial litigation, tenancy/strata disputes, and estate planning.

Sincerely,

Eli Zbar

Lawyer

Arora Zbar LLP