.png)
Negotiating Conditions in Residential Agreements of Purchase and Sale - A Lost Art Resurrected
David H. Korman
September 1, 2022
.png)
The residential real estate market has always gone through various cycles that are affected by numerous factors. It is amazing though that the old axiom “what goes around, comes around” always seems to be true.
Through the recently ended and prolonged period of a residential market characterized by a relatively low supply coupled with low interest rates there were very few Agreements of Purchase and Sale (APS) that contained negotiated conditions in favour of Buyers. The market of multi-offered bids demanded that the APS was basically limited to descriptions of the parties and the property, and thus limiting any negotiations to the purchase price, the deposit, and the completion date. Conditions for financing and inspection would not be considered let alone accepted. Even conditions for Status Certificate reviews for re-sale condominiums were not acceptable which forced lawyers to do rushed reviews prior to the submission of an unconditional APS.
Times have now changed. The market has changed again as it inevitably does. Multi-offer bids are rare and certainly not expected. Accordingly, real estate agents now must discover or re-discover the art of negotiating conditions to get properties under contract. Newer agents that have only been working during the multi-offer bid market are discovering the hard way that they now must adjust and learn a whole new level of negotiating to get a deal done. More seasoned agents are drawing on their past experience in order to engage in the back-and-forth negotiations required.
These days it is not advisable to summarily dismiss any offer as there might not be another offer for a considerable amount of time. Reasonable conditions for reasonable periods of time makes a lot of sense in today’s market. We have even seen the comeback of the condition upon the Buyer selling the Buyer’s current property.
We have been helping many agents through this adjustment process with strategies and drafting, and we expect to continue to do so for the foreseeable future. Please do not hesitate to reach out to us for assistance.
David is a member of the Law Society of Ontario since his call to the bar in 1985. David has over 35 years of extensive experience as a lawyer in residential and commercial real estate transactions, commercial leasing, corporate and commercial transactions, and private and institutional lending. His client base includes individuals, business entrepreneurs, developers, financial institutions, brokerages, and real estate investment trusts.
David takes an amiable and dedicated approach to practicing law. His focus is on providing his clients with the highest levels of legal service. Clients love working with David, as he always works hard in their best interests with a smile on his face. David’s sports background and leadership skills are highly influential on the growth and success of Kormans LLP as he truly believes in fostering the Kormans LLP environment as both a family and a team!
When David isn’t closing real estate and corporate transactions, David is an avid runner, hiker and sports enthusiast. However, what David enjoys most is spending quality time with his wife, kids, grandkids and friends at home, at the cottage, and on travels.
David is a frequent blogger, as well as a lecturer and panel member at seminars, webinars and workshops for real estate agents, mortgage brokers and home buyers. Please make sure to catch “David & David on Real Estate” – David’s featured Podcast which can be heard on RadioPublic, Spotify, Breaker, Anchor and Google Podcasts, and can be viewed on the Kormans LLP YouTube channel!
_result_11zon.webp)
_result.webp)
.png)
Discover how Limited Liability Partnerships (LLPs) in Ontario protect professionals like lawyers, accountants, and architects while allowing collaboration, resource-sharing, and individual liability protection.
In this blog post, we will cover in further detail some of the other key items that are important to consider when accepting HST indemnity from the Buyer for the HST self-remittance.
There is an all-too-common misconception by some Buyers and even by some Buyers’ professional, licenced realtors that the time period for the delivery of a Deposit pursuant to a resale Agreement of Purchase and Sale (APS) effectively provides the Buyer with a cooling-off period. The mistaken belief is that the Buyer has until the time and date specified in the APS for the delivery of the Deposit to have Buyer’s remorse for whatever reason and therefore elect to terminate the APS by not delivering the Deposit.
.webp)
