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sale of commercial property, does not actually give this extensive a right to the purchaser. The case law indicates that the purchaser is entitled to a reasonable period of time to determine whether there is property insurance, the amount of the coverage, and whether the insurer will pay under the policy. However, the purchaser is not entitled to wait until it receives such an unconditional letter. Purchasers and vendors should consider amending this standard clause.
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(E) Although such a consent would run with the land under the Plan- ning Act if it were for the sale of the property, it does not run with the property if granted only for the purpose of a mortgage.
COMMERCIAL REAL ESTATE QUIZ ANSWERS 4
(B) It is the beneficiary that must sign the GST certificate and provide its GST registration number.
FALSE. The standard wording in the OREA form of agreement of purchase and sale, and in most other typical agreements for the
5 notice of sale. YOUR RANKING?
One or fewer correct: There's room for improvement. Two or three correct: You're movin' on up. Four or five correct: Impressive. You've closed the deal.
(D) By doing (a), (b), or (c), bank A may unwittingly trigger the owner's right to pay out the entire mortgage debt, and then the bor-
rower could obtain a mortgage from another lender at a lower interest rate. Bank A could not loan out the money it is repaid by the borrower at a rate as favourable as the rate under the mortgage. By only suing for the arrears, bank A keeps the mortgage, and its higher interest rate, intact.
(B) AND (D) The parties whose interests on title are prior to the lender exercising the power of sale need not be served with the
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FROM THE EDITORS OF CANADIAN LAWYER AND LAW TIMES 24 JUNE 2008 C ANADIAN Lawyer INHOUSE
