COVID-19 and the agreement of purchase and sale
COVID-19 has created a unique situation in the real estate market, not only for the buyer and seller, but also for realtors, mortgage brokers and lawyers. The current restrictions and limitations necessary to comply with physical distancing are having a direct impact on a buyer’s experience. Showings are conducted virtually, meetings with brokers and lawyers take place over Zoom, and everyone is working remotely.
As a solution to some of these challenges, many real estate agents are now including COVID-19 clauses in Agreements of Purchase and Sale. But how do these clauses protect the parties and what should you look out for?
COVID-19 clauses in Agreements of Purchase and Sale are meant to protect the parties from delays and interruptions to their deal caused by issues relating to COVID-19, including illness, self-isolation or delays with third parties. However, a COVID-19 clause, which is not carefully drafted and reviewed, may cause unnecessary confusion or delay.
Consider, for example, a common clause which contemplates an extension of a real estate transaction where either party is subject to a mandatory COVID-19 quarantine and the agreement is automatically extended, at the request of either party, for a period of 14 days.
This clause doesn’t consider a situation where a party is still sick after 14 days or where a party has to stay in isolation as other members of their household remain COVID positive. In addition, most people self-isolate voluntarily, rather than it being mandatory. Would this put a party, who is self-isolating to mitigate the risk of exposure or transmission to others, in breach of the agreement? And what if the party was able to close the deal remotely, using audiovideo technology? Would they be able to delay the transaction due to a quarantine despite their ability to close?
So, what if your real estate agent includes a COVID-19 clause in an offer, or you receive one from a potential buyer? Discuss the clause carefully with your agent and seek the advice of your real estate lawyer before signing the agreement. It’s important to disclose what you are hoping to achieve should an unexpected situation arise.
Certainly, there are ways to protect both the buyer and the seller from complications which may arise as a result of COVID-19. But it’s important that buyers and sellers are aware of the potential pitfalls with these clauses before including them in any contract or Agreement of Purchase and Sale.
The world as we know it has changed, and we must change with it. Protect yourself and your family by speaking to an experienced real estate lawyer, and they will guide you properly and protect you to the exclusion of all others from the dangers brought forward by COVID-19.
A good real estate lawyer should also ensure you have a will or Power of Attorney. The minute any real estate deal is firm, ensure that at a minimum you have a Power of Attorney in place in the event that you are physically or mentally unable to complete the transaction.
You must protect your family and yourself.
Jayson Schwarz LLM and Jacqueline Moneta are with Schwarz Law LLP. To suggest topics for future columns or ask questions, visit schwarzlaw.ca or email info@schwarzlaw.ca.
With an 87 Walk Score and 89 Transit Score, Burke's interconnected location in St. James Town puts you at the crossroads of so many diverse experiences. Stroll west on Bloor Street and explore the city's most vibrant shopping, A-list restaurants and premier exhibits. Head the opposite direction and find yourself on Danforth savouring truly authentic Greek food. Head south to Cabbagetown and explore the area's quaint stores and unique character. Or perhaps escape from city life and connect with nature in the nearby Rosedale Ravine. In every direction, there is always something new.
Standing 53 storeys, this sleek, contemporary tower carves a striking silhouette in the skyline and offers stunning city and treetop views. Far from just another skyscraper, Burke is thoughtfully designed at the ground level and features the integration of rich heritage homes as well as a dynamic and colourful pathway with benches, landscaping and architectural lighting. This is all part of an impressive senses of arrival that leads to an abundance of amenities spanning three floors and just about everything you and your guests could desire.
Complete with chef's kitchen, private dining room and expansive fireside terrace, the second floor is where you will entertain friends and family over a meal, movie or game of pool. The 27th floor is split between a state-of-the-art fitness centre that will have you cancelling your gym membership, and co-working and meeting spaces that make working from home seamless.
At Burke, you can choose from a diverse selection of homes ranging from junior one- to three-bedroom. Whatever your choice, each home has been elevated by sophisticated design and a timeless palette of natural tones. Featuring a German-engineered Bosch appliance package, quartz countertops and thoughtful layouts, the modern kitchens have been designed to inspire your inner gourmet. Begin and wind down each day in your bathroom sanctuary – featuring impressive, large-format marble-patterned porcelain tile floor and accent wall in striking contrast with matte black hardware.
Peace of mind is also a standard feature at Burke. More than 30 years and 12,000 homes developed across Ontario and British Columbia, Concert has garnered more than 100 industry awards. This means you can buy with confidence knowing that Concert is an experienced developer with a well-earned reputation for quality and homebuyer satisfaction.
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As the pace of life quickens and our homes shrink in size, the outdoors is literally the last frontier – and the reason why we're spending so much more on making the backyard, or deck or balcony a destination oasis.
Out with the white plastic chairs and plexiglass tables, in with the fire pits and heaters giving us a much longer outdoor season, deep-seated sectional sofas, teak dining tables and chairs, and strings of lights. Outdoor furniture manufacturers have been eager to meet our need to linger outside with a wider range of furniture, with longer lasting frames, fabrics that retain their shape and water resistance, and cushion foam that stays comfortable.
Here's what you need to know:
1) Plan out your space according to how you intend to use the deck. If you are a big reader or sun worshipper, but don't like eating al fresco, set up your space with more living room type furnishings, and tuck a small dining table off to the side and out of the way.
2) Check materials carefully. There's teak, treated pine, metal mixed with wood, solid aluminum, stainless and wrought iron. Of these, teak and aluminum last the longest, and are probably the most expensive. Teak you need to baby a bit, while aluminum just wipes clean.
3) Consider modular furniture – pieces that fit together as a sectional or stand alone as chairs – for flexibility. You can change the seating arrangement to suit the occasion or your mood.
4) Decks aren't just for daytime. Small white lights are magical when strung from house to tree. Add candles around the edges of your deck or patio – flameless ones are safer. An ethanol fire pit not only creates mood, but keeps feet warm and can easily be moved around.
5) Music really adds to the ambience – not so loud that your guests can't hear each other or the neighbours complain, but as background.
6) As for styles, the sky's the limit, and they can reflect your dream destinations, or they can reflect the decor of your home. Fancy a week in the Hamptons? Check out sectionals in whitewashed and weathered greys – made from resin wicker – with East Coast fabrics such as navy and white stripes (in water repellant fabrics). Prefer life in a Park Avenue brownstone? Then wrought iron with deep charcoal cushions set amidst a row of boxwoods might be better for you.
7) Don't forget the floor – wood flooring tiles are easy to install, and create an immediate room setting, especially with the concrete of a condo balcony. Add an outdoor rug to pull it all together.
8) There's nothing like dining al fresco, and if you're the type who likes tons of people over, an expandable table might be the best choice. Classic wrought iron tables look great and last forever but are pricey. There's always teak, but it's pricey, too, so check out budget-friendly teak alternatives that work equally well. If your deck is on the small side, go for stackable dining chairs.
9) Stow outdoor dining essentials – bright coloured table mats and napkins, covered lanterns or candle holders – near the back door or in a waterproof storage bench. Make sure to keep throws handy to ward off the evening chill.
10) An umbrella will shade the table from the sun and rain; one with a tilt arm that can be adjusted to follow the sun all day. The new pergolas do the same and more, especially when fitted with a retractable canopy system or screen to protect against bugs.
11) For privacy, especially on a condo balcony, you can create a privacy wall by positioning a row of evergreens in matching containers along the edges of your deck. Erect lattice or bamboo screening, then add wall mounted planters and a water feature for an instant retreat.
12) Depending on the space you have, hammocks are well worthwhile for the downtime they afford – snoozing or watching the stars. Add colourful pillows and a sea of planters for a cosy destination.
13) Containers are the way to go for gardening. They come in all shapes and sizes and materials (remember that resin is lighter and therefore easier to move). Depending on the direction they face, condo balconies are ideal for herbs and tomatoes, but they need a lot of water, so make sure you have proper drainage. Tropical plants love sun and add a festive air to your deck – you can also bring them in come fall. If you have less direct sunlight, fill tall tapered containers with ornamental grasses for a clean, modern and minimalist look.
14) Just like inside, the deck is made livelier with the addition of some artwork, such as wrought iron grills, architectural salvage, window frames (with or without mirrored glass).
In the end, if you choose any of these tips, who needs a cottage?
