In this podcast episode, The Sisters, Shannon and Tamara Stone sit down with Peter Borszcz to discuss the legal aspects and precautions related to fire season in the Okanagan region of British Columbia. They highlight the importance of including clauses in real estate contracts to protect buyers in case of a fire, such as force majeure clauses and subject to insurance clauses. They also emphasize the need for obtaining insurance well in advance and the role of real estate agents in guiding clients through these processes.Peter Borszcz is a Lawyer and partner at Montgomery Miles and Stone Law Firm. Peter practices in the areas of business law, real estate development, real estate regulation and licensing, commercial lending and commercial real estate, with an emphasis on shopping centres, agricultural businesses (including vineyards and wineries), liquor licensing, telecommunications and utilities, commercial financing, and residential, commercial and resort developments.Peter has worked on numerous projects for business owners, developers, mobility and utility providers, and institutional lenders. Peter has extensive experience in the following areas: structuring co-ownership, joint venture, and limited partnership relationships for real estate development projects; representing institutional lenders in real estate financing transactions; representing parties in the acquisition and sale of wineries and agricultural businesses; assisting with the acquisition, sale, relocation and purchase of liquor licenses; representing both landlords and tenants in commercial, retail and industrial leasing transactions and advising clients with respect to zoning, bylaw and other real estate regulatory compliance matters.In addition to his work at the firm, Peter Borszcz is a legal-update instructor for the Real Estate Council of British Columbia and teaches both Commercial Legal Update and Residential Legal Update to real estate licensees across the province.When not in the office, Peter enjoys spending time with his two children, swimming, skiing, sailing, and enjoying everything the Okanagan has to offer.

What We Discuss:

[00:03:58] Explanation of what a force majeure clause is in real estate contracts, and its purpose in providing a 30-day extension in case of unforeseen events.

[00:05:04] Importance of obtaining insurance well in advance of closing and the shift in industry practices due to recent events like wildfires and floods.

[00:08:57] Requirements for using the force majeure clause, including showing best efforts to obtain insurance and activating the clause within the three-day period prior to closing.

[00:09:58] Discussion on the details and implications of the force majeure clause, including the 130-day extension and its effect on independent deals.

[00:11:43] Explanation of covenants related to fire and flood zones, including requirements for non-combustible materials and flood preparedness.

[00:16:24] Explanation of sellers' legal rights and potential adjustments to the purchase price in case of property damage, as well as the binding nature of the contract for buyers and the importance of joint conversations with realtors and lawyers.

[00:19:24] Discussion on the options available when a property is completely destroyed and the buyer still wants to proceed with the purchase.

Episode Resources:

Montgomery Miles & Stone Law Firm | Website