Ontario Real Estate Source

Brian Madigan LL.B. 416-745-2300 ~ Real Estate Credit Courses

2012-01-29T21:42:00.000-05:00

If you are a real estate professional who requires credit courses, you may wish to attend one of my programs.

18 credits available in total.

All you require to renew is the RECO update.

If you need assistance, then please give me a call.

Brian Madigan LL.B. (Broker)
RE/Max West Realty Inc. (Brokerage)
(416) 745-2300 (tel)
(416) 745-1952 (fax)

http://www.ontariorealestatesource.com/ (web)

http://ontariocommercialproperty.blogspot.com/ (blog)

Brian Madigan LL.B., Broker ~ 416-745-2300 RE/MAX West Realty Inc.

2012-01-25T20:17:00.000-05:00

Brian Madigan LL.B., Broker ~ 416-745-2300 RE/MAX West Realty Inc.

Ontario Real Estate Source

By Brian Madigan LL.B.

I wish to confirm that my new contact information effective January 25, 2012 is:

Brian Madigan LL.B., Broker
RE/MAX West Realty Inc., Brokerage
96 Rexdale Boulevard
Toronto, Ontario
416-745-2300

Negotiating Real Estate Transactions over the Internet

2012-01-22T20:16:00.001-05:00

Electronic Negotiating

Ontario Real Estate Source
By Brian Madigan LL.B.

It certainly seems that everyone would like to negotiate real estate transactions by email.

The only problem is that it doesn’t appear to be allowed.

There is a current difference in approach by OREA which drafted the new standard form Agreement of Purchase and Sale effective January 2012, and RECO.

The new standard form has incorporated emails into the “Notices” provision. They are given the same status as faxes.

The new clause permits Offers, Counter-offers, and Notices of Acceptance to be communicated by email. The provision goes on to include various notices and other documents.

The concern arises with the “negotiating of the agreement. Notices and other documents suitably can be exchanged through email. RECO accepts the latter but is concerned about the former and recommends that legal advice be obtained in a Registrar’s Bulletin.

Here’s the issue. The Statute of Frauds requires any agreement for the sale of land to be in writing. The Electronic Commerce Act enabled and permitted certain contracts to take place over the internet.

But, the problem is in the Act:

Section 31 (1) 4 of the ECA reads:

This Act does not apply to the following documents:

4. Documents, including agreements of purchase and sale, that create or transfer interest in land and require registration to be effective against third parties.

Clearly, it applies to Transfer/Deeds which are registered. Does it also apply to Agreements which are generally not registered. The wording in the Act certainly could have been better.

No changes have been made to the Act since it came into force in October 2000, so why adopt the OREA approach now. It’s risky and flies in the face of the RECO Bulletin.

I would recommend that you be cautious and follow the RECO approach until this matter is resolved. Let someone else take this to Court, or have the Legislature pass an amendment to the Act.

Brian Madigan LL.B., Broker
www.OntarioRealEstateSource.com

Supreme Court of Canada Affirms Municipality's Right to Set Tax Rates

2012-01-22T12:09:00.000-05:00

Municipal Right to Tax Upheld by Supreme Court

Ontario Real Estate Source

By Brian Madigan LL.B.

A municipality has broad and wide latitude in assessing municipal taxes.
This follows a Supreme Court of Canada decision released on 20 January 2012 involving Catalyst Paper Corporation v. North Cowichan.

The company was a forest products company and major employer on Vancouver Island in the south east area. The appeal against taxes was based on what it felt was the disproportionate share of the overall tax burden of the entire municipality assessed against it. A municipality has the right to tax commercial, industrial and residential properties at different rates

While the Supreme Court of Canada upheld the municipality’s right to tax, and set the rates as it sees fit, it recognized the company’s right to:

1) stay put and pay the tax, or
2) close the mill and move.

Ultimately, the Court wants these types of decisions to be made at a local level without access to the court system.

As a matter of interest, in 2007 Catalyst paid 48% of all of the municipality’s taxes, and by 2011 that burden had been reduced to 37%.
Brian Madigan LL.B., Broker
www.OntarioRealEstateSource.com

Brian Madigan LL.B. ~ Continuing Education Real Estate Courses

2012-01-13T14:32:00.003-05:00

Brian Madigan ~ Real Estate Courses

All the courses are 3 credit hours of Continuing Education.

Here is an updated outline in respect to each of the programs currently offered:

1) Disclosure Laws and the Use of the Seller Property Information Statement

This program deals with the evolving law that applies to sellers and their obligations, the role of the agent and the increased obligations placed upon the agent under REBBA 2002.

Participants will understand how the law of torts and misrepresentation apply in the context of a contractual agreement

Emphasis is placed upon the legal liability of the agent and the reasonable steps that an agent can take to protect themselves from liability. A checklist for practice management is included to lessen the risks for the agent. Following the checklist provides documented evidence of meeting professional standards.

The law of disclosure is also viewed from the perspective of the buyer’s agent. Reference is made to the SPIS document currently in use, and about 30 leading Canadian cases on the law, including the most recent decision of the Ontario Court of Appeal.

Material 98 pages

Addendum 10 pages

PowerPoint 76 slides

2) Agreement of Purchase and Sale : A Detailed Analysis

This program deals with the standard form agreement on a clause by clause, line by line and word by word basis.

This is the most important document that the agent uses, and consequently, every agent needs to know just exactly what the document means and intends. The practitioner must recognize the significance of changes and alterations to the standard form agreement. The agent needs to know what changes may be required to protect their clients’ best interests.

Each of the paragraphs are reviewed and explained in detail. The course material offers ease of reference to issues in the future.

Matters dealing with the proper witnessing and authentication of documents are covered. The issue of the execution of the spousal consent is considered together with the increased obligations of the agent.

The contract is considered in the context of the law dealing with misrepresentations both in contract and tort law. The remedies available outside of contract and the imposition of liability upon the real estate practitioner are reviewed.

Emphasis is placed upon good practice management and the avoidance of liability.

Material 142 pages

PowerPoint 69 slides

3) Competition Consent Agreement: Review and Opportunities

This program deals with the implications of the Consent Agreement (Competition Bureau and CREA), the agency conflict which led to the resolution, the law of agency as it applies to competition issues, RECO’s regulatory role, CREA’s guidance , the role and status of the consumer as a Client, Customer, or Contracting Party.

The program also covers statutory, regulatory and common law duties of registrants, the role of lawyers, special obligations owed to sellers and new opportunities that arise in the marketplace for practitioners. The emphasis in the program is placed upon “mere postings” and the relationship of the buyer’s representative to the owner and the mere poster.

Material 82 pages

PowerPoint 52 slides

4) Law of Attachment: Chattels and Fixtures

This program is designed to ensure that the participants learn to distinguish between chattels and fixtures, and the legal principles that change a chattel into a fixture. The focus is real property law rather than the agreement of purchase and sale, which is largely irrelevant

The distinction is one of importance to municipal taxation and assessment, other taxing authorities, PPSA registrations, construction liens, and priorities in bankruptcy. The law has evolved over a period of centuries. Practitioners need to ensure that their clients are protected and not placed at risk.

Agents must know the steps in the “attachment” process, which has nothing to do with “nails, screws and glue”. The program will cover objective intention, sets, business assets, trade fixtures, and necessity. Agents will learn to avoid the risk of costly mistakes.

Material 78 pages

PowerPoint 60 slides

5) Surveys, Boundaries and Adverse Possession

This program is essentially three separate programs all dealing with a similar theme.

Surveys: Participants will learn what is and what is not a survey, the four elements of a survey, survey types, and the steps in the survey process. Emphasis will be placed upon the ownership of property (the extent of title, distinguished from the chain of title), and limiting the agent’s liability through the use of a survey.

Boundaries: The program will outline the boundaries to land: horizontal, vertical (up, down and sideways), air rights and airspace issues in the vertical plane, subsurface issues, mines, minerals and support, attachments by law (when chattels become fixtures), natural boundaries, water and watercourses, riparian rights, accretions, recessions, moveable boundaries, and water lots.

Adverse Possession: The program will focus upon the common law rules for unregistered rights of ownership, the nature of the required evidence to support both ownership and limiting rights, easements, and prescriptive rights of way. In addition, the history of title fraud and the response of the Torrens system, the application of the Registry Act and Land Titles Act will be reviewed. All topics will emphasize the limitation of the agent’s legal liability through proper disclosure and the adoption of professional standards.

Material 58 pages

PowerPoint 27 slides

6) Family Law, Estate and Succession Planning

This program is divided into three topics.

Family Law: Marriage, divorce and the family, the two definitions of “spouse”, the division of assets and the support obligations upon marriage breakdown are explained. The Matrimonial Home and the special considerations which apply are emphasized. The common law, its definition and historical origins, common law marriages, co-habitation agreements, advising the unmarried couple, and resolving disputes are considered in the context of limiting the agent’s liability for risks.

Estate Planning: The program examines testate and intestate succession, the use of trusts for specific purposes, inter vivos property transfers, and the elimination of avoidable risks. The role and usage of Joint Tenancy is considered particularly the issues, risks and problems arising from recent case law. Designated beneficiaries issues and problems, as well as the role of life insurance in an effective estate plan are reviewed.

Succession Planning: The program will review the choice of the Executor (Estate Trustee), and support professionals, Powers of Attorney, conflicts of interest, taxation upon death, deferral, and avoidance. In the business context, the role of the Business Broker will be reviewed as well as the particular problems with both first marriages and second marriages. Participants will also consider the real estate agent’s role in the estate and succession planning process.

Material 120 pages

PowerPoint 85 slides

Courses/ programs under development:

Real Estate and the Law of Torts

Risk Management and Practice for Real Estate Professionals

Environmental Liability ~ Risks and Solutions

Condominium Conversion Process

If you are interested in additional information please refer to
http://www.ontariorealestatesource.com/

Real Estate Disclosure ~ When in Doubt: FIND OUT

2012-01-12T20:45:00.002-05:00

Disclosure: When in Doubt, FIND OUT

Ontario Real Estate Source

By Brian Madigan LL.B.

Real estate professionals must disclose "material facts". Just remember the regular mantra "disclose, disclose, disclose".

However, that obligation arises only after certain conditions are met. You have to be engaged to act and have advised your principal that you intend to make such disclosure. At this point, the seller could either have second thoughts about hiring you in the first place or decide that your listing should be cancelled or terminated.

You need to ensure that the seller appreciates that your obligation in respect to disclosure arises under the Real Estate and Business Brokers Act, 2002. The seller is not registered and is under no such obligation. The seller has the right to remain silent unless the common law provides otherwise.

The "information" is that of the seller. You are obliged to maintain the privacy of the seller.

So, the earlier mantra at step one, should be: "When in doubt: Find Out!" *

Then, once you are on board acting for the seller, you can then say "disclose, disclose, disclose".

* this particular phrase was authored by Bruno Galluzzo of Royal LePage Innovators

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Due Diligence Verification in Real Estate Listings

2012-01-08T16:45:00.000-05:00

The “Due Diligence” Verification

Ontario Real Estate Source

By Brian Madigan LL.B.

Real estate professionals are obligated to conduct their own due diligence when taking a listing. That is part of their “professional responsibility”.

They owe that obligation to their clients, themselves and the public.

Here is an excerpt from the RECORD a publication of the Real Estate Council of Ontario (RECO), the governing body, on this very same point, made in its Fall 2011 issue:

“Verifying statements and facts when listing a property

What would happen in a situation where your listing boasted “hardwood under carpets” only to have the buyers find laminate or a buyer who thought the purchase of his or her home included a water heater only to find out it is a leased unit?

“As a registrant you have a legal obligation to make inquiries, investigate and ensure that the information you are providing in a listing is accurate.

It’s not enough to take the information a seller gives you at face value,” advises Registrar Allan Johnston.

There are a number of sections in both the Real Estate and Business Brokers Act 2002 (REBBA 2002) and the Code of Ethics that can be applied to a situation where a registrant has not fulfilled these obligations. Section 37 of the Code of Ethics prohibits registrants from knowingly making inaccurate representations, while Section 38 requires registrants to use their best efforts to prevent error, misrepresentation, fraud or unethical practice.

Section 37 of REBBA 2002 also prohibits registrants from making false, misleading or deceptive statements in published materials.

Depending on the nature of the circumstances, Sections 20 and 21 of the Code of Ethics which relate to seller property information statements and material facts may also apply.

So how can you ensure that you’re doing your due diligence? “Put yourself in the position of a prospective buyer and ask all of the questions you would want to know about the property,” adds Johnston.

Based on frequent inquires and complaints made to RECO, here are some tips to help ensure you’re fulfilling your professional obligations.

• Take measurements yourself, including calculating total square footage. Don’t rely on a builder’s plan, homeowner’s measurements, a previous listing, or tax assessment to be accurate.

• Ask sellers to provide a copy of a tax assessment role.

• If there is any question of road/shore allowances, ask the seller to provide a survey or documents from the municipality verifying any allowances.

• Double check whether heating and cooling systems and water heaters are leased, rented or owned. Make sure you and the sellers understand the differences between a rental agreement and a lease agreement and the associated obligations.

• When highlighting new or upgraded features such as roofs, windows, doors, HVAC systems etc., make sure to verify the date of installation and the material that distinguishes them as an upgrade.

• When advertising a wood floor under carpet, make sure to check that there is indeed a wood floor. Understand and differentiate between hardwood, engineered wood and laminate flooring.”

Comment

Many real estate sales representatives will often say that if the seller lies to them, there is nothing they can do.

But, is that the law?

Do they have any additional responsibilities to others? First, this IS a regulated industry! RECO is charged with the responsibility of ensuring that the public interest is protected. That means ensuring the those who are registered meet certain professional standards.

So, while the seller may try to lie, cheat or deceive the public, the sales representative is there to make sure that they don’t.

That offers protection to the public, and instils overall confidence in the system. Lying and cheating sellers will just have to go another route. They won’t be able to thwart the system and use a registered real estate representative for their own purposes.

They can go the “FSBO” route (for sale by owner). There’s a discount in that market, despite what some home sellers believe, and it is based upon the fact that you can’t have the premium that would be attached to a “listed” property.

A listed property has more value, since a qualified, registered professional has already conducted their own “due diligence”. And, naturally, the property has passed the “smell test”*.

So, if you are a real estate professional, be sure to do your job carefully, in order to protect:

1)     your client,
2)     the public, and
3)     yourself.

* note: smell in the context of “smell test”, means no fraud, no lies, no deceit and no suspicion; it does not mean smell in the sense of noxious odours.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

ORES Real Estate Index ~ Trends from November to December 2011

2012-01-07T15:56:00.002-05:00

TREB Predictions for 2012

2012-01-06T13:20:00.000-05:00

TREB Review of 2011 and Predictions for 2012

Ontario Real Estate Source

By Brian Madigan LL.B.

The Toronto Real Estate Board just released its most recent Marketwatch, on 5 January 2012.

In essence, it says:

2011 was up 8%

2012 will be up 4%

Now, the prediction for 2012 is all guesswork. Everyone would agree with that. And, rarely would anyone be held responsible for a bad prediction.

But, let’s look at the 8% increase in 2011. It certainly doesn’t work on the January to December numbers. That would be 4.02%. So, if you want a better number, you had better use a different calculation. Have a look at the TREB report in full (below) and note the explanation for the 8%. That only works if you take all of the 2011 numbers, average them, and compare that to the similar average number for 2010.

What is the actual increase (my calculations) if you start with $411,931 at the start of 2010 and end with $451,436 at the end of 2011? It works out to 10.46%. Divide it in two (without annual compounding) and that’s 5.23% per year over that last two years.
Here’s the TREB report:

"Second-Best Year on Record for Sales

Toronto, January 5, 2012— Greater Toronto REALTORS® reported 4,718 transactions through the Toronto MLS® system in December 2011. The December result capped off the second-best year on record under the current Toronto Real Estate Board (TREB) boundaries. Total sales for 2011 amounted to 89,347 – up four per cent in comparison to 2010.

“Low borrowing costs kept Buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” said TREB President Richard Silver.

“If Buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area,” added Silver.

The average selling price in December was $451,436 – up four per cent compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of eight per cent in comparison to the average of $431,276 in 2010.

“Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between Buyers and strong upward pressure on selling prices,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer."

COMMENT

Look at the numbers and follow the trends. Prices in the GTA are increasing at about 5% per annum, year after year, and that appears to be continuing.

The ORES Real Estate Index documents that level of return over the last 7 years. Historical data also supports 5% returns in real estate over the longer term.

So, this year’s prediction by TREB at 4%, seems both conservative and realistic.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Toronto Market Drops 7.02% in 2011

2012-01-06T10:52:00.002-05:00

Toronto Market Drops 7.02% in 2011

Ontario Real Estate Source

By Brian Madigan LL.B.

That should be some good news for the doomsayers!

Has the Toronto market finally succumbed to the worldwide decline in housing prices?
Let’s have a closer look.

The average price paid for a single family home in the GTA was $433,946 at the end of December 2010. So, that was also the starting value on the 1^st of January.

The market rose and reached a peak of $485,520 by the end of May. It then declined to $451,436 by December.

When we do some calculations, there was a decrease from May to December (peak to the end of the year) of 7.02%. That occurred in 2011, so technically saying “Toronto Market Drops 7.02% in* 2011” is correct. It did take place in that calendar year, but clearly not the entire year. Headlines can be somewhat deceiving.

There is some value with a “year over year” view. That would take the end of December 2010 and compare it to the end of December 2011. That would show an increase of 4.03%.

Then, you could look to just the calendar year, which would show the same result, being 4.03%, because January 1^st starts out with the December number.

This article is not intended to offer any explanation about the market or its direction whatsoever, just to point out that with the same facts, you can express a positive or negative opinion, depending of course upon your bias.

Be careful what you read; it can be dangerous!

* note the emphasis placed upon the word "in"

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.

ORES Real Estate Index for December 2011

2012-01-05T16:20:00.000-05:00

ORES Real Estate Index for December 2011

Ontario Real Estate Source

By Brian Madigan LL.B.

Here is the "ORES REAL ESTATE INDEX" which tracks the average resale prices of single family homes and condominiums in the Greater Toronto Area (GTA). It also tracks certain benchmark comparisons such as the price of oil and gold, as well as the Consumer Price Index

In addition, the stock market indices for Toronto, and the three largest US markets are also compared.

For ease of comparison, everything we look at is worth 100 points on the Index as of 1 January 2005. That time period compares favourably with the five year average used as a standard benchmark comparison in the mutual fund industry.

As of 31 December 2011, here is the Index representing average prices with the November 30^th, October 31^st, September 30^th, and August 31^st, numbers appearing in brackets for comparison:

Real Estate

139.70…..(148.67)…..(147.97)…..(144.01)...(139.77).....GTA single family

Other market comparisons

357.92…..(408.18)…..(402.57)…..(378.73)…..(423.96).....gold (per ounce)
224.82…..(228.30)…..(211.99)…..(186.24)…..(198.52).....oil (per barrel)
129.89…..(132.60)…..(133.12)…..(126.29)…..(158.73).....TSX index
139.70…..(148.67)…..(147.97)…..(144.01)…..(139.77).....ORES sgl family
114.81…..(114.72)…..(114.53)…..(114.25)…..(115.96).....CPI index
126.32…..(127.05)…..(130.16)…..(117.12)…..(125.07).....NASDAQ index
116.49…..(114.83)…..(113.97)…..(104.04)…..(110.71)......Dow Jones index
106.46…..(105.56)…..(106.10)…..(95.78)……(103.18)......S&P Index

Using the Index

Just a quick note on reading the information. Have a look at the ORES Index for Real Estate (single family homes). As of the end of December, the index stood at 139.70. That's a 39.70% increase in 84 months. That means the increase is 0.472% monthly, or it could also be expressed as 5.67% annually. The performance here is shown without annual compounding for the sake of simplicity. It is noteworthy that the annual percentage was 7.01% as at the end of October. Both numbers were calculated using

Observations (on the Index)

As we use index, there are several notable comments:
· Commodity prices are just commodity prices
· There is no other "extra return" for commodities
· The same is true for the CPI
· The CPI is a benchmark to see whether you are keeping pace with inflation, that number is 114.81; increases have been modest and inflation appears to be under control; this is significant.
· For a realistic performance goal, you should aim for CPI plus 3.5% annually
· Stocks provide dividends in cash or extra stock. This return is additional to that shown in the stock market indices
· The stock market Indexes only measure the survivors. So, in 2009, both GM and Chrysler would have been dropped due to the bankruptcies
· If you held GM and Chrysler, you lost everything, but two new companies moved in to replace them in the Indexes
· Real estate offers a return in terms of occupancy. You can rent out the property and receive income, or occupy the property and enjoy it yourself

Comparative Observations Using the New Index

· Gold overall is still the best performer, reaching 357.92, decreasing this past month by 12.6%; a major decline since its August peak at 423.96
· Oil was the most volatile, (it dropped in half over our measurement period), also declining this past month
· Real estate was the most stable, with solid predictable returns at about 5.67% annually
· Our own stock market posted reasonable gains, but still falls behind single family homes over the measurement period, however, don't forget that the TSX is still well off its highs and is substantially resource based
· All three US stock market indicators now show positive numbers, and may truly be a better overall indication of the true state of the North American economy. The Dow matches inflation, the S&P is now measurably under the Nasdaq which is starting to track our own TSX

Conclusion

For steady, predictable, measured gains pick real estate. It's a solid performer with lower risk (less volatility) and generally moving in a positive direction.

And remember, when it comes to real estate, it's never "wiped out" completely, like GM or Chrysler stock. So, unless you're sitting on the edge of a tsunami, you'll still own something when the storm is over.

For a benchmark of success, there's 1,000 years of history to point to a rate of return in real estate being about the equivalent of 5% per annum, simple interest (non-compounded). That means that real estate doubles in value every 20 years. There are a lot of companies (now bankrupt, including CanWest Global, and many US Banks) that would have been happy with that return.

The present rate of return although high by historical standards appears to be sustainable in sought after locations like the GTA. At the moment, over our measurement period we are looking at a 0.67% annual premium over the benchmark 5%.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com 1 January 2005 as the starting point.

The other statistics are reported in a similar fashion for the ease of comparison.

Who are CLIENTS in Real Estate Transactions?

2012-01-04T20:55:00.000-05:00

Clients ~ An Easy to Understand Concept

Ontario Real Estate Source

By Brian Madigan LL.B.

While it may be difficult to understand the “customer” status relationship, no one seems to have difficulty with “clients”.

The concept of a client is simple and straightforward. It is the usual name of the principal in an agency relationship.

Many professionals deal with agency and represent clients, including lawyers, doctors, engineers, architects, barristers, solicitors, notaries public, conveyancers, paralegals, attorneys, accountants, consultants etc.

In just about all cases, the principal is referred to as the “client”. There is one notable exception, and that is doctors, whose principals are known as “patients”.

It is also easy to figure out that the highest duties are owed to the client or patient. You don’t have to know specifically what they are, but just about everyone knows inherently that clients stand in first place. That’s as good as you get. It is very basic and very fundamental.

And, of course, it’s the common law.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

The Difficult Task of Explaining Customers

2012-01-04T15:37:00.001-05:00

Customers ~ Who are they?

Ontario Real Estate Source

By Brian Madigan LL.B.

No one outside the real estate industry seems to know the difference between clients and customers.

In fact, once explained, most seem to think it is absurd, and to say the least a little unfair, and perhaps a “ruse” by the real estate industry.

Recently, I have found myself pointing out the fine distinction between clients and customers, agency and non-agency relationships.

Sophisticated consumers including lawyers, doctors, architects and teachers have found the matter puzzling.

I suppose it won’t be too long before someone takes issue with the entire concept.

For that matter, lawyers, doctors and architects all act as agents, so the matter of agency law is not alien to them. But, many express surprise that real estate professionals, generically known as agents in many jurisdictions may not be “agents” at all.

I have to admit, this is indeed one of the most difficult concepts to explain. Once, I have that one down, I’ll move on to the “trinity”.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Toronto Condo Market in 2012

2012-01-04T10:35:00.000-05:00

What’s Happening ~ Toronto Condo Market 2012

Ontario Real Estate Source

By Brian Madigan LL.B

Although the world is filled with pessimists and a lot of them see the Toronto condo market going bust, the facts and the figures don’t seem to support that conclusion.

There are two major driving forces behind the most active condo market in the world:

1)     net new immigration, and
2)     low interest rates.

Condo developers are just reacting to the demand. A lot of people are moving into the GTA each year, actually upwards of 100,000. They have to live somewhere!

Affordability is relatively attractive, so they are buying.

The condo lifestyle is becoming more popular. It works for several different groups:

·        New and first-time homebuyers
·        Trade up Buyers
·        Empty nesters
·        Investors
·        Out of town buyers

Each of these different and rather diversified groups will find a developer catering to their needs.

Prices of condos have kept pace with single family homes. Both have increased over the last few years at about 7% per annum. Compare that to the stock market or the return on bonds or bank accounts.

Newspapers often sponsor articles that spell the doom for the condo market but the fact of the matter is that other than a “hunch”, they don’t have any other supporting facts. The real facts seem to suggest otherwise. The Toronto condo market will be hot well into 2012.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Financial Resolutions for Individuals

2012-01-03T16:05:00.005-05:00

Financial Resolutions for Individuals

Ontario Real Estate Source

By Brian Madigan LL.B.

This is the time of the year for Resolutions.

I received a some resolutions from a friend and colleague, Mr. David Predovich an Investment Advisor with TD Waterhouse at the Mississauga offices. Naturally, these are Financial Resolutions. David can be contacted through TD Waterhouse at:

905-501-8661
david.predovich@td.com

So, here’s the start, and it’s all good basic advice:

“The New Year is a time when we often reflect on the changes we need to make and create resolutions to help guide us. If you are looking for a financial-related goal, perhaps one of your commitments could be to update your estate plan. Here are some components to consider when conducting this review:

Update Your Will — A review of your Will will ensure that it is reflective of your current situation, especially if you have had significant changes in your circumstances. Make sure that you are still comfortable with your choice of estate trustee(s) and that the instructions for the distribution of your assets to the beneficiaries of your Will are reflective of your current wishes.

Don’t forget to let your trustee(s) know where the signed copy of your Will is kept for safekeeping and where they can find the contact information of your lawyer.”

Comment

This article raises five important points.

1) Up-to-date Will

Many people simply sign a Will, and because “contemplating death” is a rather unpleasant task, just leave it. Once it’s done, it’s done. But, that approach can certainly be worse than having no Will at all.

Consider Bob’s case. He was married to Harriet, divorced and has joint custody of his three year old daughter. He has now taken up residence with Marge, who has two children from a prior marriage.

His Will was signed at the time of his divorce, but his situation has changed abruptly and his intentions may not be carried out. If he marries Marge, his Will is revoked and he has no Will at all.

So, as unpleasant as it may be, this IS the time for Bob to head off to the lawyer’s office and up date his Will. Then, when he marries Marge, it will be time for him to go back and sign a new one.

2) Estate Trustee

Bob appointed Harriet as his Estate Trustee. He though that he would be dead, so Harriet would be fine, since he was leaving everything to Harriet in trust for his three year old daughter, Ruby.

Let’s rethink this situation. There is now a clear conflict if Marge is to receive anything. Perhaps Bob has someone who would be more suitable?

3) Distribution Instructions

This is the part that everyone thinks about when they contemplate signing a Will. Does it still make sense?

Now that Bob lives with Marge, should Marge receive something? And, what about her two children, now that they have become partly dependent upon Bob for support?

4) Will Location

There is really not much point to having a Will, if absolutely no one knows where it is. Or, by the time it’s actually found, your estate has been long since administered.

So, tell someone! Tell a few people. Don’t keep this a secret. Mention it to those who have a vested interest in finding it.

5) Lawyer Contact Information

You should indicate the name of the lawyer who acted for you concerning the preparation of the Will. That lawyer may have retained the original.

Or, perhaps that lawyer knew where you intended to place it.

Do you have a safety deposit box? Is it in your name alone? Should someone else have access?

Assuming that you have no place whatsoever to place this document, it can be filed in safekeeping with the Surrogate Court. This is not a common practice but it can work for some people.

And, don’t forget, there should be copies. The disposition should not really come as a surprise to anyone. The time to offer an explanation if there would be any “hard-feelings” would be now, while you’re still alive. Explain it, and have the participants accept it, rather than be concerned about your decisions for the remainder of their lives. That’s most unfair.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

The Real Value of Title Insurance

2012-01-03T13:55:00.003-05:00

The Real Value of Title Insurance

Ontario Real Estate Source

By Brian Madigan LL.B.

I thought that it might be wise to comment on the value of a title insurance policy.

In this case, Poplawski v. McGrimmon (2009), Anna Poplawski purchased a title insurance policy from Stewart Title. There were serious defects in the property.

The basement flooded and there were septic and well issues, and issues with framing, the roof and the foundation.

Possibly, if full searches had been done, these issue might have been discovered. But, they weren’t. And, that was in part the purpose of the title insurance policy. Save money on the searches and buy title insurance instead.

In this case, Stewart Title paid out the full amount of the title policy, namely $340,000 and initiated the lawsuit for recovery of its losses. It has the right to subrogate, that is, the right to sue in the name of the insured if it pays under the policy.

Here is a brief summary about title insurance made the Master MacLeod in Motions Court:

“Title Insurance

[8] Title insurance has become increasingly common in Ontario over the past decade or so.

It is now increasingly a standard feature in residential purchases.

It is marketed as covering both title defects and “off title” searches traditionally completed by lawyers on a real estate purchase.

By purchasing title insurance it may be possible to avoid the cost of a survey or various searches and to in effect “paper over” certain defects.

I am simplifying of course and the particular coverage in any given case will depend on the wording of the policy in question, the options or endorsements purchased and other factors.

In any event, this was a Stewart Title “Gold” policy in which both the plaintiff and the lender, First Line Trust, were insured parties.

Structural problems with the buildings or other improvements on the property are not of course problems with title to the land and the provisions of the policy that are engaged are those that deal with the “off title” searches.

[9] Title insurance does not cover physical defects in the building as such.

Largely the insurance coverage protects the marketability of the property from defects that would have been revealed by proper searches.

The policy in question does cover “adverse circumstances” that would have been revealed by “a local authority search of the land at the policy date”.

The policy also provides protection from regulatory action such as municipal work orders or demolition orders as a result of defects in the improvements on the property that existed prior to closing.

It is not necessary to be more precise for present purposes.

The important point is that title insurance is available only indirectly to fund repairs or reconstruction and only under circumstances in which the policy is engaged.

[10] Apparently on discovery it was revealed that Stewart Title has advanced the entire face amount of the policy of $340,000.00 to First Line Trust.

Since this is equivalent to the purchase price paid for the property, it would appear this has fully retired the mortgage.

Even if the house is worthless, the plaintiffs now have the land free and clear of the mortgage debt.

The claim is for almost double the purchase price and includes consequential damages so the plaintiffs are arguably not made whole by the insurance proceeds.

More importantly the plaintiffs do not concede that any part of this payment should be a credit against either damages for breach of contract or in tort.

The important point is that the title insurer has paid out the policy, receipt of those funds has been disclosed, and the insurer is exercising its rights of subrogation.”

Comment

If you ever thought of not having title insurance, this case should convince you otherwise. How would the purchaser be able to sustain such a major loss, let alone finance the lawsuit for recovery of compensation?

In addition, the plaintiff in the lawsuit may be able to recover for other losses that were over and above what was covered under the insurance policy.

And, remember, this policy only cost a few hundred dollars!

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Professional Management of the Twitter Account

2011-12-30T18:49:00.001-05:00

Twitter Account – Professional or Personal?

Ontario Real Estate Source

By Brian Madigan LL.B.

Issues concerning ownership, use, and operation of a Twitter account have arisen in the case of PhoneDog v. Noah Kravitz.

The novel issue is the crossover between personal and professional interests.Kravitz was employed by PhoneDog to blog about competitive mobile phone products. Kravitz tweeted about his blog and about football, food, the arts and other sports. His professional phone blog became more popular.

When he left PhoneDog, naturally he had to leave his blog behind. But, what about the Twitter account? There were 17,000 followers!

So, really it should be easy to separate. However, that needs to be determined at the outset.

If the individual is responsible for a company blog then any supporting social media should belong to the company as well. If, none, then agree on that too!

Professional Social Media

Make this specific. Ensure that the company is the owner.
Agree that supporting social media belongs to the company too.
Have the account in the company’s name.
Have supporting media in the company’s name too.
Ensure that the access codes, passwords and the like are all made available to the company.

The company’s IT Officer should have all this information.

Ownership of the blogs, Linkedin, Facebook and Twitter accounts should be made quite clear: they are owned by the company.

If the employee or other delegate opens such accounts then they are doing so by and on behalf of the company. In effect, they are performing these tasks "in trust" for the company. The use and operation of the sites are distinguished from their ownership.

There should be a company social media protocol policy.

All employees, delegates, and independent contractors associated with the company should agree to adhere and abide by the terms of this protocol as issued and updated.

Personal Social Media

Personal is, of course, just that “personal”. Family and friends, sometimes extended family, longer term friends and acquaintances, and neighbours etc.

Personal use can be extended to “friendship” on a personal basis with companies for the provision of personal benefits.

However, this is clearly not “business marketing”. So, Facebook is really a “personal friend” site. Linkedin is intended to be more “professional”. Business marketing on Facebook requires the use of a “Fan Page”, but it’s already integral to Linkedin. When it comes to Twitter, and the 140 character limit, the issues and differentiation between personal and professional are most unclear. But, this would not be the case if matters were clearly set out in a contract.

Professional Social Media

Many independent contractors in various businesses, like real estate agents, have websites, blogs, and social media accounts. If they are licenced and supervised by a brokerage, then their brokerage has a vested interest in their marketing venues. They are considered to be advertising and must comply with any advertising guidelines set out by the regulating authority.

In Ontario, that would be the Real Estate Council of Ontario (RECO). However, there should also be advertising guidelines issued by the brokerage and the brand name franchisor concerning the use of trademarks etc.

Compliance is a requirement, but who is going to monitor this issue on a daily basis?

These issues suggest in effect that the individual should indicate which social media sites he may be engaged in, and disclose whether such sites are personal or professional.

Also, there needs to be a fundamental presumption about the engagement, either:

· They are all professional, unless agreed otherwise, or
· They are all personal, unless agreed otherwise

It would seem to me that a brokerage would prefer the latter since that would place the onus of disclosure clearly upon the real estate professional.

Once, the brokerage is aware of a “professional” engagement, then the brokerage has the responsibility, duty and obligation to monitor compliance. You will appreciate that there is a cost to the brokerage associated with that fact.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Twitter Account Controversy ~ Ownership and Control

2011-12-29T12:10:00.000-05:00

Who owns the Twitter Account – Employer or Employee?

Ontario Real Estate Source

By Brian Madigan LL.B.

In a recent case, PhoneDog v. Noah Kravitz, the issue of Twitter account ownership will soon arise.

The case is interesting because it presents a novel issue and that is the crossover between personal and professional interests.

This is what happened according to CNN sources:

Kravitz joined PhoneDog and was employed, in part, to blog about competitive products. The site became increasingly more popular as Kravitz began to tweet about his articles and reviews. On his Twitter account he threw in other topics that were not just mobile phone specs and comparisons. He talked about football, food, the arts and other sports. That made his phone blog more popular. Soon he had 17,000 followers on his twitter account. He left the company and initially was allowed to take the Twitter account with him. When he set it up in the first place he used his own personal information for registration.

With 17,000 followers, PhoneDog now wants the Kravitz’s Twitter account, or alternatively to be paid $2.50 for each follower per month for the 8 month period after he left the company.

This case will have some implications for the real estate industry, since most sales staff are employees from the perspective of the Real Estate and Business Brokers Act, 2002, (Ontario), but independent contractors for the purposes of other legislation.

Do they have websites, blogs, Facebook, Linkedin, Twitter, Google Plus and other social media sites? If so, what is the arrangement and the protocol for participation? Is the brokerage responsible for what they say? Can the brokerage be sued for comments made? Obviously, they are personally responsible, but if the brokerage is responsible for supervision, then should the brokerage see and screen the material in advance?

At this stage, it’s probably too early to tell, but the fact of the matter is that each brokerage should set up its own protocol concerning the use of social media in addition to its policies on websites and blogs.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Unfair Business Practices in Ontario

2011-10-24T13:52:00.008-04:00

Consumer Protection ~ Unfair Business Practices (Real Estate)

By Brian Madigan LL.B.

The Business Practices Act was a very good piece of legislation, but not too many people knew about it, so last year the Ontario Government replaced it with the Consumer Protection Act.

When it comes to real estate there are some important provisions. While the conveyance of real estate is exempt from the Act, advertising, the conveyance of chattels and agreements with realtors are all affected.

No one is allowed to engage in an "unfair practice" with a consumer, and specifically it is an unfair practice for a person to make a false, misleading or deceptive representation. These will include the following:

1. A representation that the goods or services have sponsorship, approval, performance characteristics, accessories, uses, ingredients, benefits or qualities they do not have.

2. A representation that the person who is to supply the goods or services has sponsorship, approval, status, affiliation or connection the person does not have.

3. A representation that the goods or services are of a particular standard, quality, grade, style or model, if they are not.

4. A representation that the goods are new, or unused, if they are not or are reconditioned or reclaimed, but the reasonable use of goods to enable the person to service, prepare, test and deliver the goods does not result in the goods being deemed to be used for the purposes of this paragraph.

5. A representation that the goods have been used to an extent that is materially different from the fact.

6. A representation that the goods or services are available for a reason that does not exist.

7. A representation that the goods or services have been supplied in accordance with a previous representation, if they have not.

8. A representation that the goods or services or any part of them are available or can be delivered or performed when the person making the representation knows or ought to know they are not available or cannot be delivered or performed.

9. A representation that the goods or services or any part of them will be available or can be delivered or performed by a specified time when the person making the representation knows or ought to know they will not be available or cannot be delivered or performed by the specified time.

10. A representation that a service, part, replacement or repair is needed or advisable, if it is not.

11. A representation that a specific price advantage exists, if it does not.

12. A representation that misrepresents the authority of a salesperson, representative, employee or agent to negotiate the final terms of the agreement.

13. A representation that the transaction involves or does not involve rights, remedies or obligations if the representation is false, misleading or deceptive.

14. A representation using exaggeration, innuendo or ambiguity as to a material fact or failing to state a material fact if such use or failure deceives or tends to deceive.

15. A representation that misrepresents the purpose or intent of any solicitation of or any communication with a consumer.

16. A representation that misrepresents the purpose of any charge or proposed charge.

17. A representation that misrepresents or exaggerates the benefits that are likely to flow to a consumer if the consumer helps a person obtain new or potential customers. (s. 14 (2))

It is also an unfair practice to make an unconscionable representation, and there are some "rules" which will help determine if this is the case.

A Court may take into that the person making the representation or the person's employer or principal knows or ought to know,

(a) that the consumer is not reasonably able to protect his or her interests because of disability, ignorance, illiteracy, inability to understand the language of an agreement or similar factors;

(b) that the price grossly exceeds the price at which similar goods or services are readily available to like consumers;

(c) that the consumer is unable to receive a substantial benefit from the subject-matter of the representation;

(d) that there is no reasonable probability of payment of the obligation in full by the consumer;

(e) that the consumer transaction is excessively one-sided in favour of someone other than the consumer;

(f) that the terms of the consumer transaction are so adverse to the consumer as to be inequitable;

(g) that a statement of opinion is misleading and the consumer is likely to rely on it to his or her detriment; or

(h) that the consumer is being subjected to undue pressure to enter into a consumer transaction. (s.15(2))

Section 18 provides that "any agreement, whether written, oral or implied, entered into by a consumer after or while a person has engaged in an unfair practice may be rescinded by the consumer and the consumer is entitled to any remedy that is available in law, including damages." These common law remedies are available in addition to the opportunity to report the matter to the Director and have the dispute investigated and resolved under the Act. The Director has been given rather broad powers by the legislation.

And further, "each person who engaged in an unfair practice is liable jointly and severally with the person who entered into the agreement with the consumer for any amount to which the consumer is entitled under this section." So, this means that the particular salesperson is responsible as well as the company.

Although, the actual "conveyance" of real property is not subjecty to the provisions of the Act, the matter of advertising is specifically noted as an included matter.

Under section 109 of the Act, "if the Director believes on reasonable grounds that any person is making a false, misleading or deceptive representation in respect of any consumer transaction in an advertisement, circular, pamphlet or material published by any means, the Director may order the person to cease making the representation; and further order the person to retract the representation or publish a correction of equal prominence to the original publication".

This section applies to any representations involving residential real property. If the purchaser cannot be described as a "consumer", then the Act will not apply. So, commercial transactions are not affected. Houses, and vacation properties are included. There is a real grey area when it comes to farms. Large commercial operating farms would not be included, but a hobby farm might.

You will recall earlier that both principals and agents were jointly and severally responsible. This means that a vendor who provides false and misleading information to his realtor is jointly and severally responsible to the purchaser.

All in all, the Consumer Protection Act should be quite helpful to purchasers and consumers in Ontario.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, or you would like a free market evaluation of your home in Erin Mills, Credit Mills, Credit Woodlands, Sheridan Homelands, Sawmill Valley, Bridlepath, Pheasant Run, Sherwood Forrest or Mississauga Heights, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

The Business Broker under REBBA, 2002

2011-10-22T15:50:00.000-04:00

By Brian Madigan LL.B.

A business broker is regulated in Ontario under the same legislation that applies to real estate agents, namely the Real Estate and Business Brokers Act.

In fact, under the Act a business is considered to be real estate.

There is considerably more negotiating when it comes to buying and selling a business than an ordinary real estate transaction, and it requires specialized expertise.

For a business broker to undertake the task of representing either the buyer or the seller, there are some additional considerations that are over and above the routine real estate deal:

~Employees
Knowledge of employment laws (Employment Standards)
Knowledge of the common law of wrongful dismissal
Key employee agreements
Knowledge of collective agreements
Management agreements
Training agreements
Consulting and Supervisory agreements
Non-Competition agreements

~Business Asset Contracts
Equipment and machinery leases
Equipment and machinery pledge agreements

~Business Financing
Pledges of assets
Pledges of receivables
Fixed and floating charges

~Taxes
Income tax implications (deferred and unpaid taxes)
GST implications
PST implications

~Occupancy
The lease, (if rented premises) the right to remain
Chattels and fixtures that are part of the business
Termination rights

~Key Contracts
Intellectual property
Maintenance agreements
Client and customer contracts

~Insurance
General liability insurance
Environmental liability insurance
Property insurance
Vehicle insurance
Business Interruption insurance
Key-Man insurance
Buy-Sell agreement insurance

The above list is far from exhaustive. It is simply to illustrate that there are a number of new issues and considerations when a business is being bought or sold beyond the usual deal.

A business broker must know what is truly for sale. Will the employees stay with the company? Who should pay them during the transition period? Are there any guarantees on the equipment. Can it be sold? If it is to be sold, can the financing be assumed?

A business broker must understand and appreciate the financial statements concerning the operation. What if the profits fall short? What happens if a key employee or large customer leaves?

And, don't forget about the taxes? The purchaser doesn't want to assume the vendor's tax liability. Should an asset purchase or share purchase be used? This varies from deal to deal. There is no standard rule of thumb.

Some businesses are successful because they have good employees, others are successful because they have good systems, good technology, or a strong customer base. The business broker should determine whether the whole is worth more than the sum of the parts. If not, maybe the business can be broken down and sold piece by piece?

Unless these solid assets of the business are transferred, the business will not likely be successful in the hands of a new owner. The business broker, first needs to determine the true value of the transferable business. Then, negotiations must take place with key employees, landlords, financial institutions and customers to ensure that they will be onside with the proposed transaction. It is only then, that an appropriate value might be established. The business broker unlike the ordinary real estate agent should be creating value at this point in the relationship.

Another interesting variation is the role of a business broker in a transaction. Usually, there is just one broker. Frequently, both parties will have the same agent. This occurs much more frequently in the sale of businesses than in ordinary real estate transactions.

So, what is the role? The Real Estate and Business Brokers Act sets out two separate and distinct roles. The buyer or seller can either be a customer or a client of the broker. The broker owes the common law duties of "fair and honest dealing to customers". For clients, the broker owes certain special duties including the common law fiduciary duties and the statutory duties set forth in the Act.

The broker must act in the best interest of the client. That's fine as long as only one party is a client. But, if both are clients, it's impossible to place both of them first on every issue. There is an inherent conflict of interest that cannot be resolved! And, no amount of disclosure can solve it.

The solution adopted in some jurisdictions in the

United States

is transactional brokerage. It is a concept that is permitted, but not well-known in Ontario. Here, the broker is truly a broker in the common law sense of the term. The broker is not an agent but rather an "intermediary". This reduces the potential liability for the broker. The broker works the deal, and attempts to negotiate a successful resolution. Both parties have their own independent legal, accounting and financial advice, so they are not alone, but they are not relying upon the broker. The role might also be compared with that of an arbitrator or mediator in union-management collective bargaining negotiations. Frequently, there is a far more successful outcome with someone in this type of role.

So, next time you want to buy or sell a business, consider an experienced and qualified business broker. And, maybe you want an "intermediary" rather than an "agent".

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, or you would like a free market evaluation of your home in Erin Mills, Credit Mills, Credit Woodlands, Sheridan Homelands, Sawmill Valley, Bridlepath, Pheasant Run, Sherwood Forrest or Mississauga Heights, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Customer Disclosure Duties under REBBA 2002

2011-10-20T10:14:00.001-04:00

What is the Disclosure Obligation to Customers in Ontario?

Ontario Real Estate Source

By Brian Madigan LL.B.

Under the Real Estate and Business Brokers Act, 2002, a registrant is charged with certain responsibilities.

Customers are entitled to ”services” and their agents must act with competency, knowledge, skill and judgment.

This is the obligation to clients under the Code of Ethics:

Material facts

21. (2) A broker or salesperson who has a customer in respect of the acquisition or disposition of a particular interest in real estate shall, at the earliest practicable opportunity, disclose to the customer the material facts relating to the acquisition or disposition that are known by or ought to be known by the broker or salesperson.

Material Facts are actually a defined term under the Code:

“material fact” means, with respect to the acquisition or disposition of an interest in real estate, a fact that would affect a reasonable person’s decision to acquire or dispose of the interest;

It is difficult to appreciate the context without appreciating the definition of a trade in real estate in the Act:

trade” includes a disposition or acquisition of or transaction in real estate by sale, purchase, agreement for purchase and sale, exchange, option, lease, rental or otherwise and any offer or attempt to list real estate for the purpose of such a disposition, acquisition or transaction, and any act, advertisement, conduct or negotiation, directly or indirectly, in furtherance of any disposition, acquisition, transaction, offer or attempt, and the verb “trade” has a corresponding meaning;

So, this basically means that the agent must:

1) at the earliest practicable opportunity,

2) disclose to the customer,

3) the known material facts, and

4) the material facts which are unknown, but ought to be known.

Naturally, it would be wise from a risk management perspective that the agent recorded this information in some way, and was able to retrieve it later if required.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Distributing the Proceeds of Sale

2011-10-19T19:02:00.000-04:00

Priorities Upon Sale (Mortgage, Lien, Execution)

Ontario Real Estate Source

By Brian Madigan LL.B.

What happens when there is a mortgage, construction lien and execution against the property? How does the money get distributed?

Let’s consider the simple straightforward case.

Here, the property is worth $300,000, and the buyer secures a first mortgage of $250,000.

The deal closes and the money is advanced.

Subsequently, the buyer defaults upon his credit card to the extent of $10,000 and a judgment is obtained.

The homeowner decides to sell and hires a contractor for $25,000 to effect some improvements, repairs and renovations to the property. The work is completed but the homeowner never pays.

So, the basic question is “who gets the money”. Basically, to some extent “priority of registration prevails”:

1)     the first mortgage was fully advanced, and it secures the number #1 position for the principal plus the interest to the date it is paid.
2)     The construction lien comes in second. The proceeds upon the sale are considered in part to be repayment on account of the work done and the corresponding increase in value.
3)     The Judgment assuming it was registered as an execution comes in third position.

That is what happens 99% of the time, since that is the usual scenario.

If all the money was not advanced under the mortgage, then that would affect the mortgagee’s priority. Assuming only $200,000 was advanced, then it would have priority only for the $200,000 and not the other $50,000. It still has that money.

There may be more than one lien. Some of the liens fall under the general contractor. It works like a pyramid here, with the lien claimant at the bottom having priority over the General contractor.

Executions creditors share on a pro rata basis in respect to the amount of their claims. So, if there was one execution for $10,000 and another for $20,000, they would share 1/3, 2/3 out of the amount leftover.

If there is a shortfall they would share in the shortfall based upon the same ratio.

Any excess would be paid to the homeowner. And, any deficiency would remain the obligation of the homeowner.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888www.OntarioRealEstateSource.com

Resurgence in Toronto Real Estate Market During September 2011

2011-10-05T12:10:00.001-04:00

Resurgence in Toronto Real Estate Market

Ontario Real Estate Source

By Brian Madigan LL.B.

You might wonder what is happening to the real estate market in Toronto and the GTA.
Here are the latest figures released by the Toronto Real Estate Board.

Month Sales Average Price

January 4,208 $425,903

February 6,074 $452,967

March 9,009 $455,886

April 8,783 $476,637

May 9,785 $485,436

June 9,976 $474,365

July 7,711 $458,966

August 7,384 $451,310

September 7,658 $465,369

So far, everything is quite predictable. The market rose and peaked in May with a high average price for the year at $485,436. Then it declined until August and started an upward course once again.

If trends continue like they have over the last decade the average price in October will approximate the May number. Usually, the two peaks, being in the Spring and Fall markets are about equal.

There was a significant deviation from this usual trend in October 2009 with the world stock market crisis and loss of confidence in financial institutions.

This October offers challenging market concerns with

Greece

on the brink of disaster and the Toronto Stock market (TSX) slipping officially into bear market status.

The resurgence in the Toronto real estate market in September was evident and predictable, but there may be some uncertainty going forward. This represents opportunity for both sellers and buyers.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Common Law Agency Duties and the Mississauga Inquiry

2011-10-04T20:22:00.000-04:00

Agency Duties at Common Law (Mississauga Inquiry)

Ontario Real Estate Source

By Brian Madigan LL.B.

The Mississauga Judicial Inquiry into the conduct of the Mayor Hazel McCallion released its report on 3 October 2011.

The Commissioner, Mr. Justice Cunningham concluded that the mayor had both a real and apparent conflict of interest in the dealings with a hotel real estate development in which her son had an equity interest.

There was some saving grace in that the Commissioner found no breach under the Municipal Conflict of Interest Act. Mr. Justice Cunningham went on to make recommendations concerning that Act to the Province. The Commissioner would like to see the Act strengthened and broadened.

Nevertheless, the inquiry focussed upon the obligations at common law. While the Act only deals with specific pecuniary interests, the common law deals with non-pecuniary interests as well. It may also extend to the interests of close family members and not merely the elected official themselves.

In L’Abbe v. Blind River (1904), the High Court of Ontario stated:

“There may be a direct monetary interest, or an interest capable of being measured pecuniarily, and in such case that a bias exists is presumed. But there may also be substantial interest other than pecuniary, and then the question arises, on all the circumstances, as to whether there is a real likelihood of bias - a reasonable probability that the interested person is likely to be biased with regard to the matter at hand.”

A conflict of interest may be real or apparent.

There are three prerequisites for a real conflict of interest:

1)     the existence of a private interest,
2)     that is known to the public office holder,
3)     that has a nexus with his or her public duties and responsibilities that is sufficient to influence those duties and responsibilities.

An apparent conflict of interest arises when a reasonably well-informed person, could reasonably conclude, as a result of surrounding circumstances, that the public official must have known about the connection of his or her involvement with the matter of private interest.

Agency Obligations at Common Law

The law of agency developed thousands of years ago and eventually found its way into the common law in England. There are some fundamental and basic principles which include the obligation of the agent to offer to the principal:

1) disclosure,

2) competence,

3) obedience,

4) accounting,

5) confidentiality, and

6) loyalty.

1) Disclosure. The agent is under an obligation to keep the principal informed and to disclose any material and relevant matters to the principal.

2) Competence. The agent is under an obligation to be competent in his profession, and to inform the principal that there are matters beyond the agent’s expertise.

3) Obedience. The agent is subservient to the interests of the principal. The agent is to follow the reasonable and lawful directions of the principal, carrying out the principal’s instructions. The agent is to act in the principal’s best interests and not his own.

4) Accounting. The agent is to account for monies received and disbursed. Payments of any kind or nature, direct or indirect are all for the benefit of the principal. Funds are received as a fiduciary, and are to be disclosed and remitted in full to the principal. The agent is the intermediary between the principal and third parties. The agent is not a third party contractor but rather the person who brings the principal and third parties into a contractual relationship.

5) Confidentiality. The agent is to maintain the privacy of the principal and matters that are of a private nature are to remain in confidence. Information provided to an agent is received in a fiduciary capacity and is not to be disclosed without authorization by the principal.

6) Loyalty. An agent is to offer loyalty to the principal. Once engaged in a fiduciary capacity, the agent must place the interests of the principal above his own, must not entertain the interest of others, including himself above that of his principal.

Each of these duties are separate and distinct obligations and vary somewhat in their application and interpretation depending on the nature of the agent’s profession and the actual agency agreement.

Common agency arrangements today include attorneys, trustees, solicitors, barristers, doctors, accountants, financial agents and real estate agents. However, they also apply to those politicians who hold public office. And, the same common law fiduciary agency duties apply to them as well.

You can easily appreciate how the common law duty in respect to “conflict of interest” grew out of loyalty, disclosure, obedience and accounting. All those in an agency relationship are subject to the common law. These are important matters and should not be discounted.

Statutory obligations are in addition to the fundamental common law duties. The mayor has noted her compliance with the statute but failed to appreciate the underlying obligations at common law.

Professionals in the real estate industry would be well-advised to adhere to those principles in addition to their statutory requirements.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Leslie Log House in Mississauga

2011-10-02T21:12:00.000-04:00

Leslie Log House in Mississauga

Ontario Real Estate Source

By Brian Madigan LL.B.

There is now a new museum in Mississauga. You probably already know about Benares and the Bradley House. The Leslie Log House is the third museum in Mississauga,

There is an advantage here, since it houses the Streetsville Historical Society.

The building is open to the public Wednesday and Saturday afternoons. Drop in for a quick tour. Admission is free.

The house is quite historical in nature having been constructed in 1826 on Mississauga Road north of Derry. It was moved to its present location at 4415 Mississauga Road
(between Burnhamthorpe and Eglinton) in 1994.

The main room can be rented through the city of Mississauga for special functions. In boardroom format, it seats about 12 and in classroom format it can host about 20.

It is located on city property backing onto the Credit river valley and has access to walking trails.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Mortgage Acceleration Clause

2011-09-30T21:27:00.000-04:00

What is an Acceleration Clause?

Ontario Real Estate Source

By Brian Madigan LL.B., Broker

This is a clause in a mortgage which triggers the obligation to repay the entire principal sum outstanding in advance of the time that it is otherwise due.

Consider a borrower who pays $1,200 per month on his $135,000 mortgage. The mortgage runs for five years. If he breaches an important covenant contained in the mortgage like for example failing to provide insurance, the entire $135,000 is due and owing, even if it is just year one in the mortgage.

Some breaches are considered substantial enough to “accelerate” the principal.

This is an option available to the mortgagee (lender). But, in cases, where the rate of interest is high the borrower may wish to have the mortgagee activate this clause which provides the opportunity to pay earlier.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

The Toronto Office Market is Shrinking

2011-09-30T18:08:00.001-04:00

The Shrinking Office Market in Downtown Toronto

Ontario Real Estate Source

By Brian Madigan LL.B.

Employers appear to be moving out of the downtown core. It seems unusual but small companies are moving into the downtown core and large companies are moving out.
Many properties originally zoned for "office space" have be rezoned for a combination of "commercial and residential".

Two good examples would be Trump Tower on Bay Street and the Shangli-La Hotel on University Avenue
.

While Toronto has traditionally been home to the financial services sector, this is one industry that seems to be "on the move".

The banks are relocating to the "905", being the suburbs around Toronto.

A primary example would be the Royal Bank which has relocated about 8,000 jobs to its new location on Financial Drive in Mississauga.

While head offices remain in the downtown core, major departments have fled to the suburbs. If this trend continues, then inevitably there will be a shortage of prime office space downtown. In 1980, 63% of office space was downtown Toronto, now it has declined to 54%.

The prospects do not appear to be high in terms of a current reversal in this trend, so wee see the conversion to residential condominium development. And, pretty soon, the prime properties could be all gone.

So, here's an opportunity: buy out the entire condo, rent it out, then when the office market turns convert it to office space.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

The Meaning of "Aborption Rate" in Real Estate

2011-09-29T21:06:00.001-04:00

What Does “Absorption Rate” Mean?

Ontario Real Estate Source

By Brian Madigan LL.B.

This is the rate at which homes are being sold on a monthly basis.

It is based on a particular market area. Assume that there are 2,400 homes listed for sale in a particular market. And, we know that 200 homes are sold every month. That means basically that we have a 12 month supply of inventory.

The rate is calculated as 200/2,400, or 1/12^th, or expressed as a decimal .0833.

There are some areas which calculate the relationship somewhat differently. They take current listings at 2,400/200 being the number of current sales. The result is 12, meaning that we have 12 months of inventory.

No matter what, and however you seek to compare the two numbers, it will still take 12 months to get rid of the present inventory.

This is a key factor used by real estate developers when they decide to build a condominium or new subdivision.

Should Condo Property Managers be Regulated?

2011-09-19T21:29:00.001-04:00

Should Condo Property Managers be Regulated? ~ $ 20 million Fraud

Ontario Real Estate Source

By Brian Madigan LL.B.

The question following a $20 million fraud of at least 7 condominium corporations is whether or not the Ontario Government should take steps to regulate property managers.

Manzoor Khan as the principal of Channel Property Management is alleged to have defrauded lenders and condominiums out of millions by falsely registering mortgages against the titles.

The essential reason is that the board of directors in many residential condominiums are simple, average, unsophisticated homeowners who may have the time to devote to the board but don’t have the necessary qualifications, education or experience for the position.

Retail and commercial owners can fend for themselves. It is the smaller, lower end condo corporation which is vulnerable. As the building gets older and the residents age and lack new sources of income, they become more and more vulnerable to rogue property managers.

I should, of course, point out that there is not a growing trend of rogue property managers, but I suppose one is enough, based upon the damage that one person can do.

It can have a severe impact when millions of dollars are pledged in a series of fraudulent transactions against a condominium.

In one case, a condo unit was purchased for $152,000 but can’t be sold for $70,000 just a few months later. In some cases, it is the working poor who suffer. Many families have immigrated and are often dependent upon a single wage earner in a low end position. There’s not much room left for saving. Others have second and third jobs, and they are the lucky ones, while others on welfare have no other source of income and may eventually face eviction.

If the industry were regulated:

1) training and education would be provided,

2) a code of ethics would be followed,

3) mandatory spot audits would operate as a deterrent, and

4) basic insurance would be mandatory.

In this case, with respect to insurance I’m referring to bonding the individuals involved with money and having insurance to back up fraud and defalcation.

So, who pays? The condo corporation of the lenders! They were probably both negligent in the handling of the situation. It sounds more like tort liability than contract.
So, who gets paid? Obviously, the lawyers and the auditors!

As a society, we have failed to protect some of our most vulnerable. We have encouraged them to buy, but we have not provided the basic tools to allow them to protect themselves. The condos that were victimized were not the high end expensive downtown condos owned by lawyers, doctors, stock brokers and the like. They were the lower end, poorer condos catering to the working class new Canadians. What a great way to invest in your new country!

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Be careful About Condo Fraud in Toronto and the GTA

2011-09-18T18:20:00.001-04:00

Is it Safe to Buy a Condo ~ $ 20 million Fraud

Ontario Real Estate Source

By Brian Madigan LL.B.

Channel Property Management operated in Toronto for years under Manzoor Khan of Brampton, Ontario.

Channel specialized in condominium management and gained the confidence in many cases of immigrants who identified with him from his native

Bangladesh

, where he has now returned.

It appears that Manzoor looked after about 15 residential condominium buildings.

While it does not really seem that sophisticated, here is what he did:

1) Manzoor had his employees pose as senior officers of the condominium corporation,

2) As President and Secretary, they could issue certified copies of the by-laws of the company,

3) They certified a new banking by-law and/or borrowing by-law authorizing certain loans to be negotiated,

4) The proceeds of the loans were placed in bank accounts over which Manzoor Khan had signing authority,

5) The total borrowed appears to be about $20 million and such loans are secured against about 7 properties.

The arrangement is simple enough. The fraud is clear and the man has fled the country.

But, are the owners of the residential condominiums at risk? They might be!

The lenders are innocent and the homeowners are innocent. Both were duped by the same person. Hopefully, they all had insurance bonds as against Manzoor and his company. If they did, then they will be compensated.

This may not be just the fault of the lender. At the outset, it will be necessary to determine whether the board of directors might be liable. There may be directors and officers liability insurance. That would be helpful too.

However, the fundamental question for the courts is going to be whether these mortgages were valid.

This is an extremely costly undertaking. And, it could be that one or more of the residential condominium corporations do not have insurance and is therefore at risk of liability.

In the meantime, if you were a purchaser about to close a deal, you would want a very large holdback and if you were looking for a condo to purchase, you would probably avoid these buildings until the issues are resolved.

With all this uncertainty, homeowners will just have to put their lives on hold. And, this could go on for years!

Make sure you see and understand the financial statements of the condominium before you buy. Ask yourself whether the property manager is reputable and whether the board members are sophisticated. Get professional assistance right from the beginning.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

15 Reasons to Buy Title Insurance

2011-09-10T18:26:00.000-04:00

By Brian Madigan LL.B.

I thought that I would give you 15 good reasons to buy title insurance. Actually, there are more than fifteen, but if these fifteen are not enough, then you're just not going to be convinced.

Until 1997, the common practice in Ontario was to secure an opinion on title from a solicitor. If something went wrong, then you simply sued the lawyer. Now, that's easier said than done! Title insurance has now come to the rescue. Certain identified risks are covered under a policy of insurance. The coverage is much broader than the matters set out in an opinion letter from a solicitor.

Here are some of the reasons why "insurance" may be better than an "opinion":

1) it covers matters not included in a title opinion,

2) you don't have to sue your lawyer if something goes wrong,

3) it provides funds to solve the problem,

4) the insurer provides creative solutions to rectify the issues,

5) it pays your legal fees,

6) it provides compensation to you, if your problem cannot be resolved,

7) it covers the claim and legal fees if someone sues you,

8) it's inexpensive, and there is a one-time premium,

9) you may save on the usual disbursements in a transaction because some searches are not completed,

10) you may save the cost of a new survey in most cases,

11) it protects you against survey errors, in both old an new surveys,

12) it protects against errors in information provided by municipalities and utilities,

13) you may negotiate to obtain additional coverage for other issues including environmental hazards, native land claims and risks you have assumed by contract,

14) it protects you against certain construction liens,

15) it protects you against fraud and forgery,

16) it continues to provide coverage for problems arising after the closing date,

17) it protects your mortgagee so that the deal will be closed and the mortgage funds advanced,

OK, I gave you seventeen, if you still need a few more, contact me and I'll send them to you......

And, I'm sure you really didn't want to sue your lawyer!

Construction Liens in Ontario

2011-09-09T19:19:00.001-04:00

By Brian Madigan LL.B., Broker

If you are planning on any renovations or you are building a new home, then you need to know about the Construction Lien Act.

First, there is a lien which can be registered by anyone who provides work or services or supplies materials which are used for your property. The lien has to be registered within 45 days of the last work being performed or the last supply of goods. Then, the lien has to be "perfected" within 90 days of that same date by instituting an action and registering that on title as well. Many liens are registered but never perfected.

Second, there is a statutory holdback under the Act. Every person responsible for payment is required to holdback 10% of the amount for 45 days to ensure that there are no liens. If you pay this amount, and a lien is registered, then you may have to pay this again. So, be careful!

Third, there are other provisions for liens under the Act, in excess of the 10%. If a sub-contractor gives written notice of a claim for a lien, then that full amount (not just 10%) must be heldback. This is the most risky situation for homeowners.

Many contractors will tell you that you have no right to hold back any money because it's not in the contract. But, don't worry, the Act has you covered. Every contract is deemed to be amended so as to be in conformity with the Construction Lien Act. So, even if it's not in there, it's still part of the contract, and not only do you have the right, but you also have the obligation to holdback sufficient funds.

Let's assume that you are having a hot tub installed. Your price was $10,000.00, so you are obligated to holdback $ 1,000.00 for 45 days, but you receive written notice of a lien from the manufacturer for $ 6,000.00 and one from the installer for $ 1,500.00. So, how much do you holdback? The answer is $ 8,500.00. The full amount of the written notices together with the statutory holdback. But, if you're actually in this situation: don't pay anything! You may still hear from the electrician and the gas installer, both of whom may still have claims. Better safe than sorry, make sure everyone has been paid and get proper releases and authorizations signed. This is a good time to involve your lawyer.

The purpose of the Construction Lien Act is to protect all the suppliers and workmen down the line, so that they all will be paid. It is an Act intended to benefit sub-contractors from the general contractor. It is also designed to protect the general contractor from you if you don't pay. As a lien, it has priority over both unregistered and unsecured interests and it follows mortgages (provided the funds have been advanced) and taxes which have a higher priority.

So, where does title insurance fit in? If you have a valid title insurance policy, then you will be covered for any claims of the manufacturer or installers. You did not have a direct contract with them. However, you may not be covered for the general contractor's claim. You have a contract here, and you may not have lived up to your side of the bargain. If you were supposed to pay in installments, and you failed to do so, then this whole lien mess, may be your fault. If you're in breach of your obligations under the contract with the supplier, then title insurance won't save you. However, maybe they brought the wrong unit and you were quite within your rights to refuse payment. Here, title insurance will be helpful.

There are a couple of matters that are important considerations under the Act. What is the last day work was performed and material was supplied to the property? Who certified completion? What wage rates are paid to the workmen? Have all payments been paid to date? What about WCB payments? Is there a performance bond? If these issues arise, then you will have to see a lawyer. The Act can be tricky and somewhat complicated in parts.

It is also important to note that you can't use any of the holdback moneys for defects or repairs. Those funds are constituted as "trust funds" and may only be used for the purposes of the trust. If you borrowed money from a bank to finance the hot tub, then those funds may be subject to the trust provisions under the Act. It would be better just to arrange a general loan from the bank. It's far less risky! It's bad enough not to get what you paid for, but it's even worse to have to pay twice.

Ultimately, if a homeowner refuses to pay for proper work, services or materials supplied, the Court has authority to order the sale of the property. Before this occurs, the mortgagee will likely have intervened. And, there's an interesting provision contained in the mortgage, they have the right to pay the claim and add it to your mortgage with interest.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com

Mortgage Rates ~ 9 September 2011

2011-09-09T18:22:00.000-04:00

Brian Madigan LL.B.,Broker

Terms Bank Rates Preferred Rates

6 Month 4.45% .....4.40%

1 YEAR 3.50% ......2.64%

2 YEARS 3.85% .....2.99%

3 YEARS 4.35% .....3.09%

4 YEARS 3.99% .....3.09%

5 YEARS 5.39% .....3.39%

7 YEARS 6.35% .....4.49%

10 YEARS 6.75% ....4.79%

Rates are subject to change without notice. *OAC E&OE

Prime Rate is 3.00%

Variable rate mortgages from as low as Prime - .75%

If you require a referral to a mortgage broker then please call me at 905-796-8888

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com