Some of you just read the title of this post, and your stomachs are already churning.
The market is frenetic enough without nonsense like escalation clauses being brought into the mix.
I have never seen an escalation clause in an Agreement of Purchase & Sale in Toronto before. Never. Not once.
And yet RECO released a bulletin on Thursday showing agents how to “deal with” the clause.
Let’s look at the bulletin, and then I’ll tell you why these clauses will never, ever be entertained…