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Flood advice for clients

Flood advice for clients

by Gemma Beierback on Jun 21, 2013

The damage to your clients’ homes as a result of this week’s flooding will cause issues for members to contend with.

Here is some legal advice from one of Calgary’s well-known real estate lawyers.

Members who have closings or sales which may be affected by the emergency flooding situation in Calgary and surrounding areas should advise their clients to call their lawyers as soon as possible for guidance.

Lou Pesta, Senior Associate at Walsh LLP, says industry members should not attempt to resolve the situation on their own. All questions must be referred for a legal opinion and addressed on a case-by-case basis.

Pesta recommends that all parties attempt to resolve the situations fairly. He also advised that for houses which are affected, no keys should be exchanged until the emergency has subsided and any legal issues have been resolved.

Members should remember to inform and refer their clients to section 5.1 of the purchase contract, which notes that, “Risk of loss or damage to the Property shall lie with the Seller...” and remind clients to extend insurance coverage if they have already cancelled, based on the revised anticipated closing date. 

For matters relating to property damage or loss, homeowners are encouraged to get in touch with their insurance company for claims.