A Blank Clause and a $2,000 Problem
Reading Time: 3 minutes
Double-check Clause 6 in the APS to ensure all rental items are explicitly listed—what’s not included becomes the seller’s costly problem.
Here’s a quick story from a recent deal I worked on that highlights how a small oversight can cost your client thousands.
The seller in this deal ended up paying $2,000 out of pocket because of a mistake made by the listing agent.
And it’s an easy one to make: Clause 6. Rental Items.
What Happened?
The MLS listing showed the hot water heater as a rental.
But when the buyer’s agent submitted their offer, the Rental Items section of the Agreement of Purchase and Sale (APS) was left blank.
The listing agent and seller didn’t catch it and accepted the offer.
Fast forward to a few days before closing: the listing agent realized the mistake.
Their reaction?
- “The MLS listing said it was a rental, so your client already knows.”
- “This was a rushed deal—just an honest mistake.”
- “Can’t we amend the deal so this doesn’t become an issue?”
While the excuses were a good try, the legal outcome is clear:
The Seller had to buy out the contract.
Why?
Clause 6 of the APS governs rental items. If the clause is left blank, the buyer hasn’t agreed to assume any rentals.
That means any rental contracts that do exist become the seller’s responsibility to clear before closing.
Does it matter that the MLS listing mentioned it was a rental? Nope.
The MLS Listing is not part of the APS. If it’s not explicitly included in the offer, it’s not part of the deal.
The Lesson
Double-check Clause 6. Rental Items, especially if you’re the listing agent.
It could save your client money—and save you from losing the working relationship.
Remember...
- Rental items must be included in the APS. If it’s blank, the buyer assumes nothing.
- Review rental agreements early. Know what’s tied to the property and confirm with your seller.
- Don’t rely on the MLS. What’s in the listing only matters if it’s reflected in the APS.
This small check protects your client, your deal, and your reputation.
Zachary Soccio-Marandola
Real Estate Lawyer
Direct: (647) 797-6881
Email: zachary@socciomarandola.com
Website: socciomarandola.com
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