Thursday, July 7, 2011

AND/OR Nominee...Or Not... and some stats.

From time to time REALTORS® are faced with a Buyer that instructs them to place  AND/OR Nominee behind their name on the purchase contract – explaining that they may want to put the property in a company name or might want to add Aunt Mary on to the title.

This situation can arise either before or after the execution of a contract of purchase and sale.  Using the terms “and/or nominee’ leaves room for the argument that the contract is unenforceable due to uncertainly of the identity of the Buyer.

According to the Law and Equity Act – real estate contracts are assignable by the Buyer as long as the position of the Seller is not compromised.  Some Buyers can argue the fact and feel they still need the reassurance of the term.  Rather – Council advises the REALTOR® to add the statement:

 “Buyer reserve the right to register the property in another name or entity upon completion”

The Buyer can instruct their lawyer conveying the transfer for them to register the title in the name of their numbered company – or Aunt Mary if desired.

When the Buyer is obtaining financing, be aware, that many lenders now require the contract of purchase and sale to be in the same names as the title to the property.  There may be an ‘amendment’ to the contract required to meet the requirements of the lender – they don’t like and/or Nominee either.

On another note, do you think it's a good time to buy?  Let's see what this article says...Kelowna Has No Housing Bubble to Burst.

When the going gets "Tough"... just call me
Susan Tough

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