Common use of Monetary Encumbrances Clause in Contracts

Monetary Encumbrances. The property is transferred free of monetary encumbrances. The property is transferred free of monetary encumbrances, with the exception of the following mortgage deeds: ……………………………………………….. ……………………………………………….. Any monetary encumbrances which shall not remain on the property shall be deregistered for the account of the seller. The estate agent is authorised to obtain statements of outstanding debt and deregistration confirmations from the mortgagees in respect of the mortgages to be deregistered in connection with the closing. The seller confirms that there exist no monetary encumbrances of any type, including liens, apart from those shown in the transcript from the Register of Land Titles and Land Charges. The seller undertakes to immediately inform the estate agent if any lien proceedings are conducted prior to registration of the title deed. The seller also undertakes to pay all taxes, duties and fees, etc., relating to the property which have fallen due or will fall due prior to closing. The seller hereby irrevocably authorises the estate agent to discharge any monetary encumbrances which are set out in the certified transcript from the Register of Land Titles and Land Charges/closing specification and which it has not been agreed to pass on to the purchaser. The property is sold “as is” as at the time of the purchaser’s inspection, cf. Section 3-9 of the Sale of Real Estate Act. The property shall nonetheless be held to suffer a defect in the following circumstances: If the seller fails to perform his or her specific obligations under the present agreement. If the purchaser has not received information concerning matters relating to the property, of which the seller was aware or ought to have been aware, and which the purchaser had reason to expect that he or she would receive. However, this shall only apply if it can be assumed that the failure to disclose such information has affected the agreement, cf. Section 3-7 of the Sale of Real Estate Act. If the seller has provided incorrect information concerning the property. The same shall apply if the property is not in conformity with information provided in any advertisement, sales prospectus or other marketing on behalf of the seller. However, this shall only apply if it can be assumed that the failure to disclose such information has affected the agreement, and it has not been corrected in a clear and timely manner, cf. Section 3-8 of the Sale of Real Estate Act. If the state of the property is materially inferior to what the purchaser had reason to expect in view of the purchase price and other circumstances, cf. Section 3-9, second sentence, of the Sale of Real Estate Act. If the area of the building and/or the land is materially smaller than is stated by the seller, cf. Section 3-3 of the Sale of Real Estate Act. The purchaser cannot invoke as a defect anything of which he or she was aware or should have been aware through the inspection. The same applies to any other matters of which the purchaser was aware or ought to have been aware upon conclusion of the agreement, cf. Section 3-10 of the Sale of Real Estate Act.

Monetary Encumbrances. The property is transferred free of monetary encumbrances. The property is transferred free of monetary encumbrances, with the exception of the following mortgage deeds: ……………………………………………….. ……………………………………………….. Any monetary encumbrances which shall not remain on the property shall be deregistered for the account of the seller. The estate agent is authorised to obtain statements of outstanding debt and deregistration confirmations from the mortgagees in respect of the mortgages to be deregistered in connection with the closing. The seller confirms that there exist no monetary encumbrances of any type, including liens, apart from those shown in the transcript from the Register of Land Titles and Land Charges. The seller undertakes to immediately inform the estate agent if any lien proceedings are conducted prior to registration of the title deed. The seller also undertakes to pay all taxes, duties and fees, etc., relating to the property which have fallen due or will fall due prior to closing. The seller hereby irrevocably authorises the estate agent to discharge any monetary encumbrances which are set out in the certified transcript from the Register of Land Titles and Land Charges/closing specification and which it has not been agreed to pass on to the purchaser. The property is sold “as is” as at the time of the purchaser’s inspection, cf. Section 3-9 of the Sale of Real Estate Act. This implies that the provisions of the Sale of Real Estate Act pertaining to defects in the property are derogated from to the detriment of the purchaser. The property shall nonetheless be held to suffer a defect in the following circumstances: If the seller fails to perform his or her specific obligations under the present agreement. If the purchaser has not received information concerning matters relating to the property, of which the seller was aware or ought to have been aware, and which the purchaser had reason to expect that he or she would receive. However, this shall only apply if it can be assumed that the failure to disclose such information has affected the agreement, cf. Section 3-7 of the Sale of Real Estate Act. If the seller has provided incorrect information concerning the property. The same shall apply if the property is not in conformity with information provided in any advertisement, sales prospectus or other marketing on behalf of the seller. However, this shall only apply if it can be assumed that the failure to disclose such information has affected the agreement, and it has not been corrected in a clear and timely manner, cf. Section 3-8 of the Sale of Real Estate Act. If the state of the property is materially inferior to what the purchaser had reason to expect in view of the purchase price and other circumstances, cf. Section 3-9, second sentence, of the Sale of Real Estate Act. If the area of the building and/or the land is materially smaller than is stated by the seller, cf. Section 3-3 of the Sale of Real Estate Act. The purchaser cannot invoke as a defect anything of which he or she was aware or should have been aware through the inspection. The same applies to any other matters of which the purchaser was aware or ought to have been aware upon conclusion of the agreement, cf. Section 3-10 of the Sale of Real Estate Act.