There are non-realtors out there who are trying to put real estate deals together, using an agreement called a “Right to Buy” or “Option to Purchase.” They then try to sell their right to a third party, taking a fee fo their efforts. A CBC story made national headlines about a BC couple who moved to Calgary after agreeing to an option to purchase agreement with a company called Kelowna Home Deals. This company then tried to sell the option to a tenant under a rent to own agreement.
The result was that the tenant paid money to Kelowna Home Deals, and then paid nothing else. The owners received nothing and the tenant feels that they were ripped off as well.
The idea of a rent to own agreement between an informed landlord and tenant, with professional representation, can be a win-win arrangement for both sides. This involves a lease with a separate option to purchase agreement, with appropriate protections for both the landlord and the tenant. But when there are no professionals involved, you can expect trouble, as was the case here.
See the following link to the article that appeared in Canadian Real Estate Magazine, where I was quoted on what happened. If you need any assistance in setting up a rent to own agreement, please contact me.
Do you need to disclose a grow house rumour?
Welcome to all of my new subscribers who I met at the Investment Forum over the weekend. I found it a great learning experience and hope that each of you took away something that will assist you or your clients with their investment needs.
I am often asked whether a seller needs to disclose that a property was once a grow house. In my opinion, because of the damage that can be done to a property by a grow house operation, it should be disclosed, together with any attempts that were made to correct any deficiencies.
However, what happens if you are a subsequent owner and you just hear a rumour that a prior owner ran a grow house operation? Read the attached case that decided that unsubstantiated rumours of a grow house did not need to be disclosed by the sellers.
If you have a question about whether a prior issue should be disclosed, please contact me.
Who gets the family home when a marriage breaks down?
When a marriage breaks down, one of the major questions for a couple is how to deal with the matrimonial home. On the one hand, there may be a desire for one spouse to stay in the home with the children, to provide some family stability. However, due to the tax advantages relating to the matrimonial home, legal advice should be sought before making any decisions.
As the attached article indicates, there are many issues, including division of assets, support and taxation that will have to be determined.
See Mark’s interview on Canada AM
Mark appeared on Canada Am on February 28, 2013, on the “Ask a Lawyer” series, answering several real estate questions from viewers across Canada. Please follow the attached link to see the interview. There is a short 10 second commercial before it starts. Let me know what you think.
My Law Practice
I have received many inquiries about my law practice, providing legal services to real estate buyers, sellers and investors. Working with Real Property Transaction Centres, I am now able to close real estate transactions throughout the GTA. If you require any assistance on a transaction that you are working on, please email me at firstname.lastname@example.org
If you or your clients are looking for a written quote, please visit www.realproperty.ca and search under pricing, quotation, or contact Suzanne at 1-877- 219-9618, ext. 231.
Continuing Education Courses
Kingston Area Real Estate Association – Wednesday March 20 – Understanding the Home Inspection Condition –
9 am – 12 pm – 3 CE Credits – Invista Centre -1350 Gardiners Rd. – contact KAREA to register
I have completed new courses on “Staying out of Trouble in 2013” and “Making sure you always get paid commission” These are 1 hour presentations designed to give brokerage companies and their salespeople what they need to know on topics such as lender approvals, condominium re-sales, new home agreements, including the HST rebate, protection when double-ending deals and the updated OREA forms., as well as what you need to know to always get paid commission from any buyer or seller.
If you would like to schedule a private course at your brokerage, please contact me at email@example.com
About Mark Weisleder
Mark is a lawyer, author, instructor, Toronto Star columnist and keynote speaker for the real estate industry.