Due diligence is “Real Estate 101”

Here is another example of a real estate disaster that could have been avoided by simply getting a survey of the property being purchased (Real Estate 101.)

A Toronto resident is worried he’s lost nearly $150,000 in property value after learning part of what he thought was his home — land he is paying property tax on — is actually owned by the city….

Radjevic and his young family never questioned what they owned…

“This equity just disappeared overnight,” he said.

“I would like to have what I bought,” he said.

He would also like to know: “who is responsible for the mess?”

Real estate lawyer Bob Aaron read this story Monday morning and immediately began pulling up documents to try to figure out what happened.

Aaron says there’s a clear discrepancy between what’s in Radjevic’s deed (Parts 24 and 25 with right of access to Part 26), and what was on the sales agreement.

Aaron says he believes the [Radjevic’s] lawyer failed to tell Radjevic exactly what he was getting, something that’s “real estate 101.”…

CBC Toronto attempted to contact Miran Kert, Radjevic’s lawyer, about Aaron’s analysis on Monday, but didn’t hear back.

Last Friday, Kert said he wasn’t presented with a property survey at the time of the deal, and Radjevic admits he never thought to get one at the time.

“To begin to understand what his rights to the property are he needs a survey,” Kert said.

“I would recommend to every client who purchases a property to get a survey.” [Except he didn’t?]

Aaron says everyone should get a survey, but the lawyer shouldn’t have needed one to spot the discrepancy in the paperwork.

Radjevic says he can’t recall ever discussing the matter of a survey with his lawyer.

Emphasis mine. So, in this case the buyer was relying on one who is presumably an expert (a real estate lawyer) to look out for his interests, and the lawyer failed to do so. The lawyer did not check the legal description and compare it against the purchase agreement, nor did he obtain or recommend obtaining a survey, by all appearances, according to the article. That’s embarrassing — and I imagine legally actionable — conduct for a real estate professional. The attorney says he “wasn’t presented with a property survey at the time of the deal” but it is not his job to be passively “presented” things, it is his job as the buyer’s representative to actively initiate and/or recommend an appropriate course of action. His claim amounts to unconvincing weasel words. When a buyer is making one of the largest and most important purchases one can make, caution and diligence is in order. Somehow, people often spend more time and effort researching a new car than they do the purchase of a house. Please follow the link for detailed information.

By | 2017-07-20T10:51:50+00:00 July 19th, 2017|Uncategorized|Comments Off on Due diligence is “Real Estate 101”

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