Lenders are more frequently asking for an appraisal of a property just prior to closing. If the appraisal is less than what the buyer paid for it, then the lender may either reduce the amount of the mortgage loan or just cancel the loan altogether. Just because you are pre-approved for a mortgage does not mean you will get the full amount. Make sure that your lender has completed its appraisal before you waive any financing condition.
Please read my article on what can happen when lenders change their minds just before closing: http://www.thestar.com/business/personal_finance/2013/06/14/preapproved_financing_may_not_be_enough_for_home_purchase.html
Be careful how you draft repair clauses in real estate agreements
After a typical home inspection, a buyer inspector discovers various deficiencies. The question is, what to do about them? In many cases, the buyer asks the seller to repair the item prior to closing. However, no process is mentioned to deal with situations where the buyer is not satisfied with the repairs that were done.
In addition, there is no “right” for the buyer to hold back any money on closing, unless the agreement specifically provides for it. My advice is in most cases, just estimate what it will cost to fix, negotiate a price reduction and let the buyer do the repairs after closing.
See the attached article about problems that occur when repair clauses are misunderstood. Read the article: http://www.thestar.com/business/personal_finance/2013/06/09/toronto_home_sale_leads_to_repair_clause_dispute.html
7 Reasons why your home is not selling
Even in today’s strong real estate market, sellers are learning that just having access to the MLS system is no guarantee of a quick and easy sale of their home. Please read the attached article to see the common mistakes sellers make that lead to their home not selling as quickly as the competition. In many cases, it is about not having the right real estate agent.
Read the article: http://www.thestar.com/business/personal_finance/2013/06/03/7_reasons_your_house_may_not_be_selling.html
See Mark’s CTV interview on whether murders need to be disclosed to buyers or tenants
A news story indicated that the apartment where Luka Magnotta allegedly committed his murder in Montreal was just rented to a new tenant, who was not advised about the unit’s history. See Mark’s interview on CTV on May 27, 2013, where Mark offers his views on what sellers and landlords need to disclose about psychological defects, such as murders and suicides. There is a 10 second commercial before the interview.
Watch the video: http://www.ctvnews.ca/video?clipId=934787
Selling a family home can be very emotional, and costly
When you sell a home that has been in the family for many years, it can be very emotional for everyone involved. It becomes even more difficult if the buyer plans on demolishing the home. Please read the attached case to see what happened when a seller changed their mind about the sale of their parent’s home after learning that the home was to be completely gutted after closing.
Read the article: http://www.thestar.com/business/personal_finance/2013/05/24/real_estate_sellers_remorse_can_be_a_costly_thing.html
Smoking in home reduces property value
A recent survey demonstrates what many already suspected; not only is it harder to sell a home that was occupied by a prior heavy smoker, it will also affect the sale price.
Please see the attached article, which not only explains the problem, but also provides a solution to getting rid of foul odors prior to putting a home on the market.
Click here to read the article: http://www.thestar.com/business/personal_finance/2013/05/19/costly_tobaccosmoking_reduce_property_values_says_ontario_survey.html
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 “How much does it cost” or contact Suzanne at 1-877- 219-9618, ext. 231.
About Mark Weisleder
Mark is a lawyer, author, instructor, Toronto Star columnist and keynote speaker for the real estate industry.