All Posts in Tag: Legal Corner

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.

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.

The elderly or infirm are often the targets of con artists, who seek to take advantage of the situation for their own benefit. If the scam is not found out in time, these victims can in many cases lose their life savings.

The attached case raises interesting issues related to outstanding open work permits and how they might be handled on closing. In this case, the buyer purchased a renovated home, but learned that there was still an open permit that was not finally inspected and approved by the Building department.

Lakefront cottage purchases have many challeges, particularly with respect to who owns the land at the water’s edge. Please see the attached article, which discusses the range of issues when buying or selling a lakefront property and the importance of understanding whether a 66 foot shore allowance applies to the property and whether it has been properly closed by the municiplity and transferred to the owner. Otherwise, you could have a situation where the cottage is built on land that is not owned by the seller.

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.

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.

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.

When you are visiting a property before making any offer, do not be shy about your due diligence. This includes looking behind every picture on the wall, under every bed or area rug and lifting everything off the kitchen counter.

Questions have been raised as to whether a seller should disclose that there has been a natural death which occurred in the home. In my opinion, if it is a fact that would be important to a buyer, then it should be disclosed. In the GTA alone, there are so many cultures and languages spoken that it is almost certain that a death in the home, however it happened, may affect a buyer’s decision to buy a property so it should be disclosed before any offer is made.