What Can Frustrate a Deal

    May 16, 2016

    This week we have a few things to watch out for that can frustrate a deal from Vaneesh Dass – Mortgage Broker of Verico Xeva Mortgage

    What can Frustrate a Deal

    Contracts:

    • Adding the furniture to the contract
    • Thinking that the cashback from the developer when added to the contract is not going to be deducted from the purchase price
    • Dates
      • Completion of purchase and sale are the same date
      • Not setting a clear subject removal date and time so that the deadline isn’t missed
      • Client not having funds for the deposit, as they expect those funds from the sale.
    • Not addressing the presence of potential underground tanks in properties
    • Signatures not witnessed – not sure how strict lenders are on this now, TD used to be brutal for requiring it
    • Incorrect page numbers
    • PDS – client checks yes on a box relating to assessment or work done and then does not fill out the comments sections with info relating to the date, type of work and amount of assessment
    • Purchase Plus Improvements Deal – Not getting more than 5 business days for subject removal – 7-10 preferred so contractor can get access for quotes
    • Subject removal – On Saturday or Sunday, effectively gives you one or 2 less days as you have to get complete with lender Friday
    • Not specifying purchase price is inclusive or exclusive of GST on new home purchase
    • Blindly including a generic assignment clause, when the client has absolutely no intention of assigning
    • Being inaccurate about age restrictions, who manages the strata, rental restrictions, rental pool – I’ve seen realtors call it a rental pool, when it wasn’t and it killed the deal with one lender
    • Not adding the postal code to the address being purchased
    • When another person is being added to contract later, not writing in the addendum including that person’s name
    • Not letting the broker know that completion date has changed
    • Not adding the other realtor’s information

    MLS Listings:

    • Comment referencing rain-screening or envelope work done years ago – automatically triggers the lender to ask for engineer’s report, proof of vote for full repair etc. I usually ask the Realtor for a new MLS with this removed
    • MLS mentions property sold furnished
    • Putting hobby farm in the description or pointing out income potential with the property
    • Describing that the Realtor “thinks” the property might have been a past grow op.
    • Unnecessarily pessimistic wording the notes, about the condition of the property – often makes lenders walk
    • Being inaccurate on the financial data – don’t include the strata, property taxes, etc. if you don’t know – do your research!
    • Not adding the property management company for condos/townhomes – the lender assumes it’s self-managed

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    Hani Faraj

    "Always Looking For My Client's Best Interest" Hani Faraj created BCHouseFinders. Hani Faraj has over 6 years of real estate from lending experience, marketing, project & development marketing to real estate sales. Hani Faraj loves real estate with all its aspects. Hani lives with his family in Yaletown and works with one of the top offices in Vancouver.

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