Following The Agreement

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In this post, we are Following The Agreement, to closing. In previous posts, we explained everything about the start to acceptance of the agreement. Now, it is time to follow the clauses, conditions and make a deal done. After acceptance of the offer with all parties, handling the deposit is the first move.

Handling The Deposit:

Deposit details are on the agreement that all parties signed. The buyer should get a bank draft, cheque, etc from the bank and deliver it to the listing brokerage. Listing brokerage put the deposit in the trust account till the day of the closing.

Removing Conditions:

After receiving the deposit, it is time to following the clauses and conditions. Each condition has a due date. Typically the seller/buyer should prepare a form (Waiver or Notice of Fulfillment) based on the condition and remove it from the agreement. Removing the condition means they deal with the clause and everything is in place. If the seller/buyer needs more time for their condition, they should provide an amendment to the other party. As a simple definition, the amendment is a form to delete and insert one or more conditions. The salesperson should provide the amendment to the other party before the due date of the condition.

In one word, all parties should follow the agreement together till closing. If everything goes smoothly, the deal should close on the requested date. Generally speaking, lawyers are doing the paper works and make a deal done. If there is a problem in the deal, the seller/buyer can provide a mutual release. In this situation, the deal will not close, and the deposit will be payable to the buyer.

Commercial Real Estate is our specialty. If you need our help, please reply!

Babak Mehrabi

https://www.reco.on.ca/

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