[PROPERTY] Not perfect, but has potential

Brian Charlebois of Flynn Estates writes: 

When you first view a property there are issues that are not immediately noticed. It is only after moving in that these problems become apparent.

These are referred to as defects, both patent and latent. In layman’s terms, a patent defect is one that is plainly visible on initial inspection.

For example, tiles missing on a kitchen floor, or a large crack in the garden wall. If there is something that the buyer is extremely concerned about they can list it in the ‘additional clauses’ section of the offer to purchase. It then becomes a legal condition that the seller has to attend to. But the additional clauses section should not be abused.

I have had buyers attach a sheet of paper with fifteen items. They demand ‘owner to resurface driveway’, to ‘owner to repaint entire house’.

When I present such an offer, the sellers often ask me to please bring them a buyer that ‘isn’t crazy’. To protect the seller there is the ‘voetstoots’ or ‘as is’ clause in all offers.

Basically, it implies that what you see is what you get. There is a catch and that comes with the second type of defect called a latent defect – a defect the seller has attempted to conceal.

A crack in the living-room wall covered by a large picture, or rising damp behind a cabinet. Or roof leakage that has a fresh coat of paint over it.

Fortunately, the agent is supposed to ask the seller if they are aware of any defects when they sign the sole mandate.

Plus the bank granting the bond is required to do a visual inspection of the property looking for certain problems. If they see any then the seller must attend to them before the bank will grant the bond.

The lesson here is that the buyers must, within reason, be satisfied that they are buying a property that they can work with. Don’t go looking for a perfect property because you simply won’t find one.

Look for a property with potential.