Does an Agreement Become Null and Void on Completion?
By Brian Madigan LL.B.
Question:
Does an Agreement Become Null and Void on Completion?
Answer:
No, a completed agreement is one that is executed, satisfied, fulfilled, completed or closed.
It does not become “null and void”. There may be outstanding warranties that will continue for years, or there may be statutory obligations which arise on closing.
Consider a simple agreement of purchase and sale. The deed is exchanged for the closing funds and it would appear that there is nothing left to do.
However, there is an implied warranty by reason of having executed the deed to give “further assurances. That obligation arises under the Conveyancing and Law of Property Act. So, if the buyer later needs the seller’s assistance to clear up a problem, then he will have it.
Frequently, conditions will be written in an agreement that in the event that they are not fulfilled, satisfied or waived the agreement will become “null and void”. Essentially, that means under ordinary circumstances the parties have agreed that at that time there will be no agreement.
In the standard form OREA agreement of purchase and sale, there is only one reference to “null and void”, and that is in respect to the Offer and the irrevocable date. If there is no acceptance within the time limited, then there is no agreement.
In respect to an unsatisfactory title, the form provides that the agreement “shall be at an end”. This is quite different from the term “null and void”.
Only the additional provisions set out in schedule “A” normally being conditions will make reference to the “null and void” conclusion.
Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com
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