Does the Vendor need their money months before the signing date? Do you need to be an owner months before you need to move in? Does the vendor need a place to stay after he signed the deed over to you? These are all possible, legal ways to sweeten the deal.
There is a clause in the promise to purchase contract where it’s written that if the occupancy of the premises is to be subsequent to the signing of the act of sale,
then the purchase price shall be adjusted by an amount equal to an amount per month, calculated from the date of signing of the act of sale to the scheduled date of occupancy, as compensation for the SELLER’S occupancy of the premises during that period. The SELLER shall continue, during that period, to assume the heating, electricity and general maintenance costs relating to the premises occupied.
That’s a mouthful taken straight from the promise to purchase Annex A. Basically it would be best to cover your costs. So make sure that you include, municipal taxes, mortgage, insurance and condo fees if there are any. Any extra expense that you want covered. The seller while living there will take care of the utilities and maintenance.
The only argument that I get from clients is that they will bring up, “What happens if they don’t leave?” Well it’s the same difference whether if the signing and occupancy are the same day. It’s all a matter of trust. I trust that since we have all this legal jargon in place that it will protect me.
Another tid bit of information to know is that the seller is not renting or paying rent; he/she is paying compensation. Big difference, which means that they are not subject to the Regie du Logement rules.
I added this article because I love real estate and educating people on the matter. If you would you like me to work for you, call me 514-402-8444 or EMAIL ME!
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