Undertaking to Readjust (Vendor)

Summary

This precedent is intended to set out the basic promise that a vendor to a transaction will promptly readjust anything which needs to be readjusted in the statement of adjustments delivered at the time of closing. Unknown final amounts for taxes, water bills and other such unforeseen items are thereby reconciled after closing. This precedent contains practical guidance and a drafting note. These undertakings are solemn and serious promises made by the vendor to the purchaser, and they must be followed up and satisfied by the vendor in a timely fashion or the vendor risks being in breach of their contractual obligations to the purchaser. A vendor faces legal liability if it does not satisfy the undertaking they have made just as a purchaser faces potential liability for not satisfying its own set of undertakings. For more information, see OREA Residential Condominium Resale: (Form 101) Guidance and Practice Tips, OREA Residential Real Estate (Form 100): Guidance and Practice Tips and ...