Purchasing a home is a big decision no matter when you’re buying, but buying a home in wildfire season brings some added issues that could mean you can’t even get into your dream home!
After investing time, money and energy into finding the perfect home, finding schools, selling your old home, booking the movers and packing the car, the last thing you want is to end up sitting in the moving truck with nowhere to go.
Chain reaction
Many factors affect the housing market, but the unprecedented wildfires burning in BC this year have the potential to create a chain reaction in the buying and selling process that could have costly repercussions for everyone involved.
Part of completing the sale of any home for which the bank holds the mortgage is ensuring the home can be insured. However, what many people don’t know is that insurance companies often won’t insure a home within 25-100 kilometres (depending on insurance company guidelines) of a current wildfire, meaning you might not be able to get the keys to your new home on moving day!
Even worse, the seller could find you in breach of contract. Through no fault of your own, and what amounts to “an act of God,” you can be held responsible for not completing the sale as agreed, which can result in potential loss of your deposit, possible litigation, and the seller re-marketing the home you had your heart set on!
The effects of a transaction falling through has the potential to affect everyone involved.
Expert help is at hand
Making sure this doesn’t happen means having expert advice. Paula Skladan-Roughton PREC* and Nik Roughton PREC* of Value Plus 3% Real Estate know how to mitigate the risk, whether you’re buying or selling.
“Understanding the risk of buying in wildfire season can help protect all parties.”
For a complicated problem, Paula and Nik can provide a simple solution, by applying a force majeure clause to the contract, which provides an allowance for unforeseen events beyond your control, be it fire, flood, or pandemic, buying you time to still close the deal for your new home.
No matter when you’re choosing to buy or sell, make sure you get the best advice. Call Paula at 250-540-9753 or Nik at 778-212-3737 or visit them on Facebook here.
*Personal Real Estate Corporation
