Broker of Record
Royal Heritage Realty Ltd.
Offices in Pickering and in Whitby
January 28, 2015
Are you looking for a house or condo in Whitby or Brooklin?
Categories:Brooklin Real Estate,Buying a Home,Condo,Condominiums,Royal Heritage Realty,Selling a House,Whitby Real Estate
January 28, 2015
Should I buy or should I sell first?
January 21, 2015
Buying a Power-Of-Sale Property: Buyers Beware
Categories:Advice for Buyers & Sellers,Buying a Home,foreclosure,Mortgages,Ontario,Power-of-Sale,professional,Real Estate,Royal Heritage Realty,Selling,Selling a House
When residential properties are for sale and the seller is shown to be a bank, this usually indicates that the owner could not make their mortgage payments and the lender is selling the property to recover the mortgage amount owing. If you are considering making an offer on one of these homes, here are 5 things you need to know:
1. The process that most lenders will follow in Ontario is Power of Sale, and not Foreclosure. The main reason is that a Power of Sale can be completed much faster than a Foreclosure. Powers of Sale can be completed generally in 3-4 months, while the Foreclosure process will typically take up to a year to complete. Banks also prefer this method as it permits them to get bad loans off their books quickly and if there is any shortfall, they can immediately sue the original borrower for the deficiency.
2. Lenders are supposed to try and get fair market value for the property that is sold, so it is not automatic that you will be able to buy the property at a substantial discount. Use a professional buyer agent to make sure you know what this property is worth before making any offer.
3. The lender will usually contain special clauses in this contract that will be important to any buyer. For example, all appliances will be sold on an "as is" basis, with no warranty, meaning you are out of luck if the appliances are not working when you close. No warranty will be given regarding the room sizes or even the lot size for the property. If there is a tenant on the property, no guarantees are given about the length of any lease or how much the tenant may be paying in rent. If HST is payable, for example if the property had a business running in it before the lender took over, or if it had been substantially renovated, then this extra HST has to be paid by the buyer on closing. Finally, if the original owner comes up with the money before closing to pay off the mortgage, then the deal is over.
4. In order to deal with the above clauses, buyers should make sure that any purchase is conditional upon a detailed home inspection condition so that everything can be verified, including the condition of the home, the room and lot sizes, and whether there was any business, such as a day care, operating in the home before closing. This could involve discussions with the neighbours as well as well as any tenant that the buyer will be assuming after closing. Regarding the lot size, ask the bank's real estate agent if the bank has any survey relating to the property and if not, check at www.landsurveyrecords.com or www.protectyourboundaries.ca as there are over 1.5 million surveys available for purchase through these websites to assist you when the boundaries are not certain.
5. Buyers should attempt to close the deal quickly, once they have satisfied themselves as to all conditions, to avoid having the original owners come back and pay off the mortgage before closing, thus ending the deal.
When you understand what is involved in buying a home from the bank, you should not have any unwelcome surprises either before or after closing.
Story provided by Mark Weisleder BA., LLB
Research, professional knowledge and advice make for good decision-making. Knowledge is power and helps the buyer make the best decisions possible for his family. So it’s important to find the right agent that has experience with sale-of-power properties. Contact me today! I will be working for you every step of the way to make sure that you get what you want.
November 25, 2014
Chattels and Fixtures - 5 Things to Remember
Here is a great article from Mark Weisleder, a real estate laywer, author and speaker:
5 things to remember about chattels and fixtures
The buyer notices that the oven is not working when they do their final home visit, 2 days before closing. Can the buyer refuse to close or hold back money to repair the oven? These are just some of the questions that I receive from anxious buyers during the course of a home purchase.
Here are 5 key lessons to remember:
1. The buyer cannot refuse to close a real estate deal if an appliance is not working, or if there are minor damages on the property, unless the contract says so. What the standard real estate contract says is that the buyer can only refuse to close if there has been substantial damage to the property before closing. This would cover a house burning down or a major flood before closing, but would not cover a cracked window or appliance that is not working.
2. The buyer or the buyer lawyer is also not permitted to decide on their own to hold back money to complete any repairs, unless the contract says so. In my experience, sellers rarely agree to any clause in an agreement that permits a buyer to hold back money, for example, to make sure that the seller has completed any required repairs before closing. The problem is that in practice, buyers will typically say that they are not satisfied with the repairs and the holdback money cannot be released to anyone.
3. Here is my advice to settle repair or damage issues: get an estimate for the damage and then have your lawyer send it to the seller lawyer, offering to just settle the matter by the seller either fixing the problem before closing or the seller providing a credit equal to the estimate and the buyer fixes it themselves after closing. I am usually able to work this out with seller lawyers before closing. Unfortunately, if there is no settlement, there is no automatic right to hold back money and the buyer will be required to sue the seller in Small Claims Court after closing to get their money back. This is not a good solution for anyone, because of the time it takes to go to court to resolve this. Be reasonable and solve your problem.
4. What if the oven breaks down 2 days after closing? Unfortunately, the way the contract is written, the buyer does not get an extended warranty. The seller will typically only warrant that appliances and home systems will be working on closing, not after closing. Make sure that even if you are not moving in until a few days after closing that you go to your home immediately after closing and check to make sure that everything is working properly. If anything is not working or there is a damage, have your lawyer immediately contact the seller lawyer the next day about your issue. Also consider buying after sale insurance protection to cover your home systems and appliances. Canadian Home Shield is a company that offers this type of protection at a reasonable price.
5. Little things matter. If your seller is removing a chandelier, make sure they are required to replace it with a standard light fixture so you do not walk into a dark home on closing. If your seller is removing a TV bracket from the wall, make sure that they are required to fill in any holes that are created. Make sure you are to be given 2 full sets of keys, FOBs if a condominium, garage door openers and mail box keys. If the agreement is silent, the seller may only get you one set and it is costly to obtain a duplicate set, in most cases.
When you understand the rules about chattels and fixtures and properly protect yourself, you should be able to minimize any problems that arise after closing.
By Mark Weisleder
November 5, 2014
Today I found an interesting blog article about 'Bidding Wars' which I want to share with you. It tells the story of a couple who tried to find their dreamhome in Toronto and all the bidding wars they found themselves in. Bidding wars are a seller's dream but can be a buyer's nightmare...
If you find yourself in a bidding war for the house of your dreams, prepare to be flexible and accept that the seller is in control. How much the property is worth depends on how much the buyer is prepared to pay. In a bidding war, I can help you determine how much the house is really worth cause the last thing you want is to over-pay for a house. I'm an experienced real estate agent who knows the market and I can help you get the house of your dreams. So, contact me today!
October 29, 2014
How to sell a house where pets live
Almost everybody loves pets. Me too, but just not when I am helping clients buy and sell houses. And the reason for this is simple: Pets can distract in many different ways.
Your pets stink. As a loving pet owner, you may not realize this because you’ve grown accustomed to it. But don’t expect a potential buyer to feel the same way. Potential buyers don’t want to purchase stinky houses.
Allergies. Some buyers are allergic to pets (their saliva, fur and urin). You can’t blame the buyers for leaving your house before even having seen it.
Fear. Especially if people are coming with small kids, pets can become a problem. Pets are not always predictable. Some buyers are afraid of being bitten or terrified of catching fleas.
Barking and Meowing. Pets sometimes get noisy and this distracts the showing.
Nervousness. The buyers may feel uncomfortable when a pet rubs, sniffs, or jumps on them. Even if buyers like your pet they may miss out on the wonderful features of your house because they concentrate too much on your pet.
What to do before a showing
Owning pets could reduce the value of your house if potential buyers notice odors or other pet issues. If you want to get the highest final sale price, you'll have to stage your house and create the illusion that you are not a pet owner or at least eliminate any signs that your animals were destructive.
The best thing to do to ensure top price for your home is to relocate your pets while your home is on the market. Removing the family pet while selling a home is not usually the option most homeowners want to hear, but it is the best solution not only for potential buyers who want to tour a home which smells fresh and clean and is free from pet hair, but also for the pets who can be upset with strangers touring the property on a daily basis. Let a friend or family member take care of your pet or send it to a boarding kennel until the house is sold. Putting your pets in the back yard, in the garage or in another room that you keep locked is insufficient, and it's not fair to them.
If you don’t want to take the professional advice and absolutely refuse to move your pets out of the house, then at least minimize their presence in your home.
Get rid of the evidence!
Deep cleaning. Before your house goes on the market, make sure that it gets a huge deep cleaning, behind all furniture, all closets, under all beds, etc.!
Remove litter boxes. Keep cat litter boxes and dog potty pads out of sight and impeccably clean. Nothing turns off buyers faster than opening the door of a house and being greeted by a full or stinky cat box.
Remove stains. Hire professionals to remove pet stains. Buyers will spot them and form unfavorable opinions about the rest of the house. If the stains can't be removed, then remove the floor covering and replace it.
Get rid of the stink. Not only are odors very obvious when buyers first enter your a home, they are usually very difficult to get rid of (cat urine is the worst). Home buyers know this and could immediately scratch your house off their list. Have all of the carpet and underlay in the home replaced or at the very least professionally cleaned. You should also have your furniture steam cleaned at the same time.
Other useful tips:
Curb appeal. The outside of your home is the first thing potential buyers will see, so it's the first place you should look for signs of pet damage. Curb appeal is hugely important to buyers, so lets make sure that all outside areas of your home are pet free as well. From your front yard, your back yard, your courtyard, etc. Make sure your backyard shows no signs of pets. The most obvious issue to address is holes in the yard from a dog that's been digging. Make sure to fill any holes before you open your home to buyers. Remove all toys and ‘poop’ that may be present.
Selling a home is not easy. With a pet it’s even harder. But if you keep all the above things in mind, it’s all worth it in the end…
If a move is in your future, let’s sit down and talk about your plans. I will be working for you every step of the way to make sure that you get the highest possible price for your home in the shortest period of time. So, contact me today!
Re/Max Rouge River Realty Ltd., Brokerage
905-668-1800 or 905-427-1400