About 70% of all deals will run into a snag.These all could be deal breakers if not handled properly. The solution to these “situations” is dedication, research and a lot of plea bargaining and negotiating. These “situations” could be anything from declined financing, irregularities on the certificate of location, timelines not being met, fighting among buyers and sellers, municipal assessments not done properly, building inspections gone bad and many more.
For example: My client bought an apartment building that came with a house as part of the title. He renovated the house, legally divided the two properties and now wanted to list the house to sell. Between the two properties was a shared driveway to their garages. Because this is now a new division, the city hadn’t assessed the house for the taxes. Now we have an accepted promise to purchase in which one of the conditions is to accept the taxes.
After many phone calls to the city, we were told that the driveway is called a “indivise horizontal”, like a duplex gone co-coop (indivise vertical), similar to a condo building that is shared which comes with rules and regulations and owner percentages. We asked the city how this should be done. They didn’t have the answers even though this was a policy that they put into place. They had to call a specialised city notary who had to research it. The land surveyor and the city were consulted and it took over two weeks to get the right directions for the seller’s notary to prepare the supporting documents. Once that was done, a city appraiser would have to assess the property to calculate the new tax bill. However, there was a 3 month backlog.
What saved the deal was that the city appraiser gave us some clues on how to find comparables and do an average to find out an approximate cost of the taxes. I was online looking at all the buildings and land that I could find in the allotted area and came up with an approximate average of tax prices that I could present to the buyer. Luckily the buyer accepted. Our deadline to sign was in 3 days. We made our signing deadline and everyone was happy.
Without the persistence of my vendor, the helpfulness of his notary and my research this deal may have been lost. Another great reason to be surrounded with dedicated professionals.