
Buyers Guide

1. Pre-Offer Stage

The remote resort facilities (Fly-In) are accessible only from mid May to the mid November and viewing must take place during that time period. All tourism facilities require operating permits which provide for such things as use and occupancy and are subject to various tourism and conservation requirements . It is generally advisable to make some contact with the appropriate conservation officials to discuss any particular issues or plans you may have. The Realtor and/or your legal counsel should be able to assist you in that regard. While some of your concerns may be addressed prior to an offer being made, the offer itself can contain various conditions that need to be satisfied before the transaction is closed and fully completed.

2. Offer to Purchase

Once you have selected a facility that you are interested in purchasing, an offer to purchase can be drawn up by the Realtor or your legal counsel for presentation to the vendor. While offers are sometimes accepted as presented, there usually is a negotiation stage which ultimately results in a purchase and sale agreement. The purchase and sale agreement then forms the basis for any financing and other applications and the ultimate conclusion of the transaction.

3. Interim Period

The time between the date of the execution and delivery of a purchase and sale agreement and the actual closing varies and depends in part upon the nature of the facility. Transfers of tourism licences and permits are subject to approval of the Licencing Advisory Committee and that process can take at least 2 months. If facilities a resituate on Crown Land that is not in a park any assignment of the Crown Land Permit or Lease is subject to approval of the Crown Land Agency and that approval process can take several months.
During this period any other due diligence requirements can be completed so that a closing can occur once the approvals have been obtained for the transfer of operating authority and assignment of Crown Land Permits. The process varies somewhat if the facilities are on private land or located within a park.

4. Timing of the Offer

Given the time frame between the offer and actual closing, it is advisable to make your offer as soon as possible after the close of the tourism season in order to enable the purchase to be completed before the commencement of the following tourism season While it is possible to have a closing during the tourism season, there will be other issues that have to be addressed.

5. Costs to Complete.

Aside from the purchase price the additional costs to complete may include any one or more of the following;

A. Legal Fees –These need to be addressed with your legal counsel. The total cost can vary based on the hourly rate charged, the complexity of the transaction and the number of facilities involved.

B. Financing Fees – these are dependent on the financial institution.

C. Application/Transfers Fees- These are fees charged on each application and are based upon the number of facilities. This applies to all tourism licences, permits and licence transfers and range from $15.00 per facility to $150. If the facility is situated on private land, land transfer taxes are payable based on the fair market value of the property.

D. Adjustments- There may be adjustments for such matters as property taxes and annual permit and licence fees.

E. GST- Goods and Services Tax of 6 % may apply if there is no exemption available, usually an exemption would be available.

F. PST- Retail Sales Tax of 7% is payable in respect of tangible personal property. (Items such as vehicles, inventory, machinery and equipment, some boats and motors etc.)

Sellers Information Guide

1. Relevant Information

An interested purchaser, before presenting an offer to purchase, will request information regarding the facilities, assets located thereat, licences and permits as well as information as to revenue and expenses. That information is usually only disclosed once the interested purchaser signs a non-disclosure/confidentiality agreement. To facilitate the disclosure of relevant information the Seller should prepare and have available a list of facilities and assets located thereat, a list together with copies of all licences and permits and current financial statements and information.

2. Conditions (Sales Agreement)

A purchase and sale agreement usually contains conditions as to closing along with covenants representations and warranties on the part of the seller which, if not satisfied or fulfilled may result in termination of the agreement or a substantial delay in closing. It is therefore prudent for the seller to ensure that all necessary licences and permits are in place for the business or businesses being carried and that all regulatory requirements have been complied with.

3. Commitments

Since a closing of the transaction can be delayed for any number of reasons it is advisable that the seller not make any commitments that could interfere with any commitments made in the purchase and sale agreement in respect to such matters as operation during the interim period or operational assistance after closing.

4. Professional Assistance

I have access to bankers, lawyers and accountants who specialize or at least have a good working knowledge of the intricacies of working with resort properties in order to insure that when a serious buyer is obtained through my marketing efforts, the buyer will be able to complete the purchase. As well I have associates on standby able to handle all aspects of a transaction of this nature, thus ensuring a smooth transition to a qualified Purchaser.