I am often asked how real estate partnerships or joint ventures should be set up. Who should go on title? What clauses do I need?
Please see the attached article where I set out the key provisions that need to be negotiated in any real estate partneship agreement. If you or your clients need any assistance with setting up a joint venture or partnership agreement, please contact me.
When do you have to vacate a rental unit in Ontario?
A residential tenancy ends at the end of the term, which is typically the end of any month. That means that tenants must vacate the unit no later than11:59 pm on the last day of the month. This could present problems for tenants who are moving into a new unit on the 1st day of the following month as they may have to store their belongings overnight and stay with friends or at a hotel while they move.
This can also cause problems when a buyer is purchasing a home occupied by a tenant on the last day of the month, as the buyer will expect to get the keys late in the afternoon and yet they may not be able to access the home until late that night if the tenant has not yet vacated. This could result in extra moving costs which the buyer could claim from the seller, since vacant possession was not given in time.
It is preferable to make arrangements in advance with your tenants so that moves can be accommodated for everyone’s benefit. The key is proper preparation in advance, and not waiting until the last minute.
Disclose clearly when buying from your own client
I am always asked how much should be disclosed when a salesperson buys a property from their real estate brokerage’s client. The simple rule is that there is never too much disclosure. Besides disclosing the fact that you are a salesperson, consideration should also be given to make it very clear to the seller that the buyer intends to sell the property for a profit in the future. In addition, the seller should also be encouraged to make any deal conditional on the review and approval by the seller’s lawyer, before the offer becomes firm.
As the attached article indicates, when the proper disclosures are made in advance, a salesperson should even be protected from an unhappy seller who finds out later that the salesperson who bought the property from them sold it shortly thereafter for a substantial profit.
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.
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 email@example.com
If you or your clients are looking for a written quote, please visit www.realproperty.ca and search under “How much does it cost” or contact Suzanne at 1-877- 219-9618, ext. 231.
Continuing Education Courses
Please join me at REALTOR(R) Quest on Thursday May 2 at the Congress Centre, 650 Dixon Rd. where I will be giving a new 2 hour seminar from 9:00 am – 11:00 am on Tips for Protecting your Client in 2013.
If you would like to schedule a private course at your brokerage, please contact me at firstname.lastname@example.org
About Mark Weisleder
Mark is a lawyer, author, instructor, Toronto Star columnist and keynote speaker for the real estate industry.