A change – a change to one or more conditions in an agreement – is a tool often used in real estate. An amendment is proposed following the adoption of a valid and enforceable offer and purchase and sale agreement (GSP). When an amendment is tabled, a party tries to amend the original agreement – technically, it is an offer of amendment. If you have any questions about the amendments, email us or call us! It amends the GSP to reflect the change agreed between buyers and sellers. It also expressly confirms that all other GSP conditions remain the same. However, it also saw changes that were used in transactions if another document could have been more appropriate. Sometimes the bank needs more time to get its papers in order, Monett says. « However, this is where the transaction can disintegrate. This extension must be acceptable to both parties, and an amendment often goes around.
« A change should not be used to remove a condition, » she says, « if a condition is met; a compliance notification should be used. If a condition is not met, but the customer still wants to continue the transaction — z.B. if a home visit reveals defects that the buyer is willing to accept — a waiver must be used. A change means a change is required, Bloom says, and it can be used to correct errors tainted with errors, z.B a spelling error. A few years ago, he remembered an offer with a closing date agreed by both parties, but no one realized that it coincided with a new statutory holiday. « The buyer`s representative reminded me that the bank would be closed on Monday. I thought he would get a quick one until I got through it. This is the first year that Family Day has been celebrated in Ontario. We used an amendment to change the closure to Tuesday. Funding agreements often lead to proposed changes, says Monett, who is also an OREA trainer.
« I`ve had situations where we`re dealing with a mortgage business or through a mortgage review and the buyer needs a few more days beyond the period, in the state of the initial offer. The only way to do that is if the seller agrees. In this case, an amendment is an instrument that we must use. If questions about the validity of the GSP were to arise as a result of amendments, the parties should be referred to their lawyers before they even attempt to renegotiate. For example, an inspection may reveal problems with well water quality in a holiday home. The buyer still wants the cottage, but now you have to spend more money to improve water quality, he suggests modifying the GSP to a lower purchase price.