Damaged to Property Before Closing - COhen LLP

1. Call Us: 416-380-7550 Damaged to Property Before Closing

2. ABOUT US • Your needs are our top priority at Cohen LLP. • We are a client-focused boutique law practise that provides you with approachable & competent legal services by combining a personal touch with large firm knowledge. To Learn More about Cohen LLP. Visit Our website: https://cohenlaw.ca/

3. Patent Defects vs. Latent Defects • Patent defects are defects that would be discovered through the exercise of reasonable vigilance in the course of an inspection of a property. • Buyers are presumed to be aware of such flaws whether or not they inspect the property themselves or have it inspected on their behalf. • Mislead Buyers from Such defects • There is no duty on sellers or their brokers to disclose patent defects.

4. Latent Material Defects • Latent defects are those defects that are not discoverable through the exercise of reasonable vigilance in the course of an inspection of a property. • Latent material defects are both not discoverable and render the property dangerous or potentially dangerous to the occupants • Sellers and their brokers must disclose latent material defects • Render the property unfit for habitation. • Concerns raised by the seller about local authorities that affect the property.

5. Rights Under the Agreement of P&S • Section 8 - Title Search, allows the Buyer’s lawyer, up to five (5) days prior to closing to “requisition” the Seller’s lawyer • If the Buyer cannot obtain fire insurance the Buyer may be able to terminate or rescind the Agreement. • Section 14 – Insurance, provides that in the event of substantial damage • Terminate the Agreement and have deposit returned, without interest • Accept the insurance proceeds from the Seller’s insurer and complete the transaction. • Contact Cohen LLP Barristers & solicitorsin Toronto for Stress-free buying or selling of your home

6. Damage Arising Between Offer & Closing • Pre-Closing Remedies • Require Seller to remedy before closing • Price Abatement • Holdback • Termination/Rescission

7. Post-Closing Remedies • Negotiated Settlement • Sue Seller (usually in Small Claims Court) • Title Insurance • Leaking Basements and Roofs • Leaks usually happen due to heavy end of summer rains or spring thaw • Leak and damage before closing: • Risk passes to Buyer We are a client-oriented boutique law firmthat combines a personal touch with large firm expertise to provide you approachable and professional legal services.

8. References • https://cohenlaw.ca/wp-content/uploads/2014/11/Assignments-of-Agreement-of-P-and-S.pdf • https://cohenlaw.ca/wp-content/uploads/2014/11/Duty-to-Act-in-Good-Faith.pdf • https://cohenlaw.ca/wp-content/uploads/2014/11/Damage-to-Property-Before-Closing.pdf

9. CONTACT US Toronto Office Cohen LLP, 41 Wynford Drive Toronto, Ontario M3C 1K1 Tel : 416-380-7550 Fax: 416-380-7555 Website: https://cohenlaw.ca/ Pickering Office Stroud Cohen Law 1154 Kingston Rd., Unit 2, Pickering Ontario L1V 1B4 Tel : 905-837-1353 Fax: 905-837-237 Website: https://cohenlaw.ca/

10. Thank You Call Us: 416-380-7550