In last week’s blogs, we reviewed the revised and new OREA standard forms. This week we will look at the 2014 residential and commercial clauses. These pre-set wordings/statements that can be inserted into agreement to reflect the wishes of the parties are intended to make REALTORS’® lives easier.
The 2014 Residential and Commercial Clauses document is posted in the Members section of the OREA website (www.orea.com). Below is a brief summary of the revisions to the 2014 clauses.
ACC-8: Water Access – Fluctuating Water Levels
This new clause confirms the buyer understands that the water levels in the area where the property is located may fluctuate and may make access to the property through the water difficult and/or not possible.
CHATT-1: Condition – Rental Contract
This new clause confirms that the offer is conditional upon the buyer reviewing and finding satisfactory the terms of the rental agreement, rental contract, lease contract, or lease to own agreement for items such as water heaters, alarm systems, etc.
Please note: The addition of this new clause in the Chattels/Equipment/Fixtures section means the previous clauses have new numbers, as follows:
- CHATT-1: Condition – Rental Contract (new)
- CHATT-2: Chattels and Fixtures – Good Working Order (previously CHATT-1)
- CHATT-3: Chattels – No Warranty (previously CHATT-2)
- CHATT-4: Equipment – Good Working Order (previously CHATT-3)
- CHATT-5: Equipment – Purchase of Additional (previously CHATT-4)
- CHATT-6: Equipment – Removal (previously CHATT-5)
- CHATT-7: Lighting Fixtures (previously CHATT-6)
- CHATT-8: Rental Items (previously CHATT-7)
INSP-16: Seller’s Consent for Photos/Videos
This new clause confirms the seller understands and consents to a third party taking photographs/videos of the property for inspection purposes.
ZONING-5: Restriction – Short Term Accommodation
This new clause confirms that the buyer understands that the municipality where the property is located may have bylaw restrictions re: renting.
Please note: The addition of this new clause in the Zoning section means the subsequent clause has a new numbers, as follows:
- ZONING-6: Zoning – Warranty (previously ZONING-5)
SBP-5: Escape Clause – Notices Re: Multiple Representation
New wording was added to this clause referencing email addresses. The revised section of the clause now reads:
“…Said notices will be delivered by the Brokerage either to the parties to the transaction, the address of the parties, the lawyers representing the parties, or transmitted to the fax number or email address designated by the parties other than the Brokerage’s fax number or email address.”
Clauses No Longer In Use
The following clauses have been removed from the Residential and Commercial Clauses list, as of January 2014:
- EMAIL-1: Email Delivery of Documents and Notices
- FAX-1: Delivery of Documents
- SEWER/WATER-5: Water Supply – Seller to Provide Bacteriological Analysis