On October 30th, at Red Shores Race Track and Casino, PEIREA staff hosted Burning Legal Issues, facilitated by Josh Egan. Below is a brief summary of the key points discussed during the session. Continuing Education Chair Jessica Flemming took a moment to welcome and thank all members for attending the session. She reminded attendees that with the end of the year approaching, it’s important to complete all required education for 2025 to avoid any potential penalties. Jessica also announced that the annual Food Drive will take place in November, with collection boxes being delivered in the coming days and picked up during the first week of December. She then introduced our facilitator, Josh Egan of Carr, Stevenson and MacKay. A 50/50 draw was also held, with proceeds going to Lennon House. Member Danny Shum of Northern Lights Realty was the lucky winner. Please click on attachment provided above to view Josh’s PowerPoint presentation. - What Issues do you Typically see with water tests? Josh explained that most buyers are typically optimistic that water tests will return favorable results. However, when problems arise, sellers are often unprepared. In some cases, funds may be held back until satisfactory water test results are obtained. He emphasized the importance of allowing sufficient time in the process to complete a second water test if needed.
- Demystifying the Title Search- A title search is a review of a property’s public records to confirm the seller’s ownership and identify any claims, liens, or other encumbrances that may affect the transfer of the property. This process verifies that the legal owner has the right to sell and highlights potential issues such as unpaid taxes, existing mortgages, easements, disputes, or restrictive covenants. The goal is to ensure a clear title, and title insurance is often obtained to protect against unforeseen issues discovered after the sale. It’s important to allow a sufficient timeline for the title search, as the process can sometimes take longer than expected.
- Missed Deadlines- What happens next? Time limits should always be adhered to. If a deadline has passed, it’s crucial to prepare the appropriate amendment and have both parties sign it to keep the deal active. Never assume that the transaction will move forward once a deadline has expired.
- Errors in Listings- What’s the harm? REALTORS® may be required to compensate buyers for errors such as missing chattels or inaccurate lot sizes. These mistakes can put the listing agent at legal risk, as the property may be deemed misrepresented. Even minor measurement errors can have serious consequences — including the potential loss of a sale.
- How to Handle Leased Items? Chattels and/or equipment that are rented or leased are not included in the purchase price and must be clearly disclosed to buyers. It should also be specified whether the buyer will be assuming the lease or if it will be paid out prior to closing.
- How to Properly Draft a Clause- Josh provided examples of both poorly written and well-written clauses. When drafting a clause, be sure to clearly outline who is responsible for each action, when tasks must be completed, and what the consequences are if they are not. Clearly define responsibilities and timelines — refer to the slides for examples.
- What does a law firm do on a file anyway- Josh referred to the provided check list of what needs to be completed and reviewed prior to closing- see slide for details.
- Why Can’t Buyers Just Move in Early.- Josh explained that allowing buyers to move into a property before the exchange of funds and closing exposes sellers to significant risks. Once living in the home, buyers may notice issues that were previously overlooked, potentially leading to last-minute requests for price reductions. Sellers also face the risk of damage to the property before closing. Josh shared an example where a buyer moved in early, but their financing later fell through — creating a major problem for the seller.
Unfortunately time, ran out and we were unable to touch on all topics. We will be planning 2 Burning Legal Issues Sessions with Josh in 2026. |
