“Power of Sale” offers

A house bought on Power of Sale always feels like a bargain, but your client may not always be getting what she bargained for.

Especially when the Bank, as the vendor, uses the standard TREB offer in completing the transaction, your client needs to be careful to check which standard clauses have been deleted and what schedules have been added.

Be sure to review with buyers not just the fact that they are getting the house in an “as is where is” condition, but also the fact that they may not get vacant possession of the property on closing. Be aware that the appliances may be subject to a lien; that the closing date may be delayed; that they may not even end up getting the property if the original owner puts his mortgage back in good standing with the bank; that there will most likely be no survey provided by the vendor; and the vendor will also give no warranties about work orders or UFFI.