COVENANT TO RESTORE TITLE AND INDEMNIFY


According to the standard Residential Purchase Contract, the buyer is required to forward Cash to Close (i.e. the final price required to purchase the property after adjustments for taxes, homeowner’s association fees, deposits, etc. are made) to the seller by 12:00 pm on closing day. However, in the event Cash to Close can’t be forwarded to the seller on time, the seller may, but is not obligated to, accept late payment and give the buyer possession on reasonable terms – which includes, but is not limited to, the buyer paying late interest.

If the seller hasn’t received Cash to Close and any associated late interest after 7 days from the adjustment date (generally the closing date) from the buyer and they complied with their obligations within the standard Residential Purchase Contract then they can request the buyer to, among other things:

a. Deliver, at the buyer’s cost, vacant possession of the property back to the seller within 48 hours;

b. Pay for all damages caused to the property by the buyer’s use of it and the costs incurred in providing the seller with vacant possession of the property (i.e. cleaning costs, removal of any goods or chattels, etc.);

c. Pay the costs for all utilities consumed during the buyer’s possession of the property; and

d. Pay costs to register title back into the seller’s name(s) (i.e. Land Titles registration costs, legal fees, etc.).

Conclusion If you have any questions concerning this Tidbit, please do not hesitate to contact Khemka Law or counsel of your choosing. We are always here to assist you and your clients. Thank you for your time and consideration.

Sincerely,

Pranav Khemka

Pranav Khemka, Barrister & Solicitor T: (403) 457-9577 | F: (403) 457-9578 E: pkhemka@khemkalaw.com

 

LEGAL: This Thursday Tidbit provides general information only and does not constitute legal advice. Circumstances may vary and no lawyer-client relationship is established from the use or reliance of this information.