During my time at the Wildfire Resiliency and Training Summit in Prince George, British Columbia, I gained valuable insights into the extraordinary individuals who safeguard our communities from wildfire threats and the challenges faced in protecting homes in high-risk areas.
Experts predict that 2024 will see a record number of community impacts from wildfires, with property damage, displacement of residents, government spending on response efforts, and overall quality of life in affected areas all being significantly affected.
As wildfire risks escalate, the importance of homeowners investing in risk reduction becomes more critical. Your guidance to clients on this matter is crucial!
Impacts on realtor business conduct
The real estate industry is also witnessing tangible impacts on business practices. For instance, the availability of insurance often determines mortgage approval, and securing insurance can be challenging or impossible when an active wildfire is nearby.
Having a wildfire clause in the Agreement of Purchase and Sale (APS) for properties at risk of wildfires is essential to protect clients in such situations.
Recommended clause from BCFSA
In the event that a Buyer is unable to obtain fire insurance on the Property due to a wildfire, the Buyer may extend the Completion Date by providing written notice to the Seller.
It is crucial to seek legal advice on the implications of invoking this clause and consider using it in conjunction with the Fire/Property Insurance condition precedent.
Other suggestions to help protect your clients
Realtors in wildfire-prone areas should advise clients to…
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