Monthly Archives: November 2009

Protect yourself from real estate scams by staying informed

Posted on November 30, 2009 | Leave a comment

By Rosalin Smith-Carr

Like any industry involving the exchange of information and money, real estate has its share of schemes and tricks designed to separate you from both. Some of the easiest ways to recognize the most prevalent scams for real estate lawyers according to the Law Society of Upper Canada include:

The client has a copy of the transfer/deed, but no other paperwork involving the property like purchase documents or surveys.

The client does not have fire insurance or utility companies do not have any records indicating the seller actually owns the home.

A real estate agent is listed in the agreements but is never seen or communicated to, or there is no real estate agent at all.

And for the rest of us:

Most real estate scams are related to false deeds used to get a loan secured against the property. Once the thief disappears with their money, the owner of the property is in danger of foreclosure. These problems can often be rectified by closely examining the deed and discussing the issue with the bank.

When a real deed is used, after from stealing it from the owner and tricking them into signing it, the reversal process is far more difficult, especially since the papers were legitimately signed. These thieves often prey on the elderly or even family members.

Nigerian scammers, or 419 scams, are like a plague when it comes to anything listed for sale online. The scammers are not always necessarily from Nigeria, but this is primarily where the crime originates and is mostly found, leading to the nickname.

It can work two ways. The most popular is when the scammer will contact you through your ad and offer to send a cashiers check for far more than the original price, telling you to cash it and send them any extra while keeping a hefty chunk as a bonus for yourself. The money comes out of your account, but the original check was a fake, leaving you with the costs.

The second popular method is copy and pasting your online ads and selling your things themselves, telling potential customers they had to leave town unexpectedly and need to take care of the transaction remotely. You send them money for an application fee or background check for them to ensure you apply, and then they disappear with your money.

Despite the obvious nature of the scams, a lot of people fall into these traps. News stories circulate the media every year about educated people falling prey and losing hundreds of thousands of dollars.  By being aware of some common scams you can keep yourself and your money protected.

Rosalin Smith-Carr is a Sales Representative with Royal LePage R.E.S. Ltd., Johnston & Daniel Division.  Rosalin can be reached at rsmithcarr@sympatico.ca or visit www.primetorontoneighbourhoods.com

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Before You Move: a Checklist

Posted on November 27, 2009 | Leave a comment

Moving into a new home can be an exciting yet hectic experience, but careful planning can make the move much less stressful for you and your family.

Two months before moving day:

•               This is typically when you should give notice if you are leaving an apartment building, but because the time required can differ it’s best to check your lease with your landlord. If you don’t give the full amount of notice necessary, you may find yourself in a hassle and not get your full security deposit back.

•     It’s a good idea to begin researching moving companies to see which one will suit your needs at the best price. Booking far in advance shouldn’t be a problem, and make sure to identify what possessions needs special packing materials, like bubble wrap. The moving company may be able to supply these materials for you.

One month to three weeks before:

•     To make it easier on yourself down the road, begin packing any items that you rarely use or won’t need in the coming weeks, and get rid of anything you don’t need anymore that you could donate to charity or throw away. You can also begin disposing of anything that requires special care, such as chemicals. The less you actually have to move, the better.

•        Arrange for new phone or internet service at your new residence if you need to make an appointment for a technician to come out and set it up for you.

•        The paperwork: ensure you have set up mail forwarding and informed the following places of your address change: government offices for health cards, driver’s licenses and tax information, the dentist’s, doctor’s and veterinarian’s offices and your banking and credit card companies. Check that any insurance you have incorporates your new address and any car information or license plate tags are transfered if necessary. If you are moving far enough away, ensure the transfer of medical, veterinary and school records.

Two weeks before:

•     Cancel the newspaper subscription if necessary.

•        Return everything you’ve borrowed from neighbours. Be sure to get back everything you’ve lent out over the years too!

•        Make sure your utilities are set to be cancelled when you move and confirm your move with the moving company. Keep on packing!

One week to the day before moving day:

•     Confirm your moving date again with the company or any friends and relatives that might be helping you. Ensure everyone has accurate directions to your new home.

•        If you don’t need them for the time being, arrange your bedding and alarm clock in an “open first” box so you can set up your bed right away and get a decent night’s sleep the first day in your new home.

•        Begin prepping your larger items for the move by defrosting and emptying the refrigerator and taking apart larger furniture like beds or couches if possible.

Moving day:

•     Do a complete walkthrough of your home, opening every drawer, closet and cupboard to set your mind at ease and make sure you haven’t left anything behind.

•        If you currently have a landlord, invite them to inspect your empty residence with you to avoid any later complications.

•        Double check and record the readings on all utility meters, shut the doors and windows, and drop off any keys.

•        Try to be present when your things are loaded and unloaded in case the movers have any questions.

•        Prepare a suitcase with clothes and toiletries for the first night such as paper plates, plastic cutlery, garbage bags, drinks, Tylenol, snacks, toilet paper, soap or anything else you might need right away so it’s easy to get to. One of the fastest and easiest ways to feel at home is being able to get right back into your routine as soon as possible.

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Survey finds homeowners less likely to use credit to pay for renovations

Posted on November 26, 2009 | Leave a comment

By Heather Rose

Canadians are more likely to use cash instead of credit to fund home renovations this year than they were last year, according to an Ipsos Reid survey of 3,000 homeowners conducted this past fall for the Royal Bank of Canada. Cash purchases are easier to keep track of and work better into a budget than using credit, with no surprises, debt or additional fees.  Due to the state of the economy, more Canadians are conscious about how they use their money and what kind of financial decisions they should make when it comes to improving their home, whether for their own personal needs or in an effort to sell it.    Up six per cent from last year, 76 per cent of those surveyed said they were planning to use cash rather than add to their debt during their upcoming home renovations.  Other findings from the survey include:

•    Across Canada, homeowners expect to spend an average of just over $11,000 on renovations.

•    63 per cent of those surveyed will be taking advantage of the new Home Renovation Tax Credit.

•    Almost half of the people surveyed said they’ve done renovations that they might not have done otherwise specifically because of the Home Renovation Tax Credit.

•    18 per cent of those surveyed are renovating their homes to make them easier to sell.

•    Bathroom renovations make up 41 per cent of the total intended renovations.

•    Almost one-third of those surveyed said the biggest annoyance while renovating was going over budget, and 32 per cent of those surveyed said the process of completing the renovations taking longer than expected was their biggest aggravation.

•    Saskatchewan and Manitoba are tied for the most intended renovations and highest price tag with 73 per cent of respondents saying they intend to renovate for an average of $15,133.

•    People in Quebec will to spend the least amount of money on their renovations, an average of $7734.

•    78 per cent of those surveyed in Atlantic Canada intend to renovate their homes while only 15 per cent intend to sell their homes. Alberta has the highest number of people wanting to sell with 27 per cent, and only 67 per cent planning to renovate.

With the rush to renovate early and take advantage of the Home Renovation Tax Credit, being careful and using cash is much easier on your budget and credit score.

Heather Rose is a Toronto based Journalist, who is a regular contributor to the Muddy York Real Estate Blog.  Heather website is located at heatherroseportfolio.squarespace.com.

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Tips for Quick Home Sale

Posted on November 26, 2009 | Leave a comment

What we all would like to see when selling our home is that it is a quick and easy process. However this rarely happens, even in the best markets.

We will tend to find that our house will sit on the market from a few weeks to a few months, before it is sold.

We have seen the real estate market improve across the country, and it is expected that it will only get better with prices stabilizing by the beginning of 2010 as inventory increases.

Getting back on topic, how can you sell your house quickly?

Following these few tips should be able help you accomplish this:

1.    Price accordingly
The worst thing you can do is overprice your house, it will obviously take longer to sell, and once you do drop your price, buyers might expect you to drop it even further.

2.    Work with a professional
To ensure a quick sale, you have to be sure your buyers can afford what they offer. With a professional real estate agent, they can ensure all of this, and be sure that buyers are not extending their finances too thin.

Real estate agents will be able bear to all of the costs of advertising your home, and help bring in more buyers to view your home.

3.    Staging
One of the required tasks to sell your home quickly is staging. You have to create your house into a blank slate and allow buyers to see what they can make it into.

4.    Placing your home in the right location
You need to have your home placed on the Multiple Listing Service (MLS). Having your home on the MLS will allow everyone to see your home, and have a glimpse of what you have to offer. If they do like what they see, then they can possible come in and view the house in person.

5.    Classic Exposure
When I say classic exposure, you would want to tell any friends or acquaintances about your house going on the market, and have them spread the word.

This can avoid much stress if a deal comes out of this, however it can also be hard to deal with a “friends, friend”. They might expect a better deal of the sale, however if all goes well, you can expect a quick sale.

With these few tips, you should be able to sell your home quickly, however nothing is ever guaranteed in life, you have to work for anything to succeed. Put the time into your house and you should see results.

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Your House is “Stale” – What to Do?

Posted on November 25, 2009 | 1 Comment

When your house has been on the market for several months, and you find that less buyers are passing through, and no offers are coming in, you will have to realize that your house is “stale”.

In today’s market, if your house has not been able to sell, then there are several problems that your house can have.

The main problem is that houses are overpriced, even in the market today where prices have continuously increased due to less inventory and people wanting to make purchases while the low mortgage rates are around.

Now you can take the easy road and lower your price, however you will tend to find that once a buyer sees your house has dropped significantly, they will want an even further drop in the price while they are negotiating with you.

Your best bet to get a fair price is to take your house off the market, and fix it up a bit.

Give it a fresh coat of paint in areas that need it, upgrade and fix any problems you might have heard from potential buyers throughout the past months on why your house was not the one for them.

You will find yourself spending a bit of money to get all of this done, however as your house is an investment, you should be seeing a return soon.

By doing any fixes to the house, you will be able to not only get the price you want, but possibly a higher price because your house is more desirable now.

The only problem you have now is that potential buyers may or may not know that your house was on the market previously and was taken off for a few months before being put back on.

Generally, the potential buyer will not know this at first glance, however as they become more serious about the house, they will find out all of the information on it, and that it was listed before.

When that happens, they might try to negotiate a price drop, but seeing as you improved the house further before putting it back on the market, this should not affect you by much.

At most, they will inspect your house even further, hoping to find a fault as to why the house was relisted.

Seeing as you fixed any problems the house might have had, you are ensuring that nothing significant will be found that can lower the price of your house.

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Arise Shelter gets the Support of Johnston & Daniel

Posted on November 24, 2009 | Leave a comment

Today, with great pleasure Royal LePage/Johnston & Daniel Division (J&D) announced  a newly formed partnership with the YWCA Arise shelter in downtown Toronto.  Named Arise for the spirit of perseverance that women who leave abuse bring to their struggle, this 27 bed shelter is making a real difference in the lives of women and children fleeing violence.  With staff support available 24/7, this shelter provides on-site employment counselling, parenting support, addictions counselling trauma and mental health support to women and children using the Arise Shelter.

J&D’s support of the Arise Shelter will be funnelled through the Royal LePage Shelter Foundation, Canada’s largest public foundation dedicated exclusively to supporting shelters and ending violence against women and children.  Every year the Shelter Foundation raises over $1 million to provide a safe haven and new beginnings to more than 30,000 women and children each year.  And because Brookfield Real Estate Services Fund (owner of J &D) underwrites all the administration costs, 100% of every agent, broker and support staff contribution goes directly to the cause.

As one of Royal LePage’s largest corporately owned operations, Johnston & Daniel Division’s salespeople and support staff are pleased to give back to the community and especially for such a deserving destination as the YWCA Arise Shelter.   J&D is planning a number of fundraising initiatives throughout the coming year to create awareness and donations for the much needed shelter.  J & D looks forward to making a difference in their community.

For information on the Arise Shelter, visit www.ywcatoronto.org/shelter_housing_support/shelter/arise.htm.


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20 Questions to Ask your Toronto Mortgage Lender

Posted on November 23, 2009 | Leave a comment

By Evan Sage

1.   What types of loans do you offer?
2.   Can you please outline the terms and conditions of each loan?
(ie. How often does the interest rate change? Are there any
prepayment privileges? What is the renewal term?)
3.   Do fixed rates or variable rates apply to those loans?
4.   What are the particulars of the prepayment privileges?
5.   Is the mortgage portable?
6.   What, if any, insurance is required?
7.   Is there a discharge penalty if we sell the house before the
expiry of the mortgage term? If so, what is the penalty?
8.   Would the discharge penalty be waived if new owner assumed
the existing mortgage? Are there any assumption fees?
9.   Does the mortgage broker charge any arranging fees?
10. Does mortgagee charge mortgager any fees?
11. What underwriting standards get applied? (housing requirements,
debt ratios, etc.)
12. Do you give a loan commitment?
13. What are the, if any, loan commitment restrictions?
14. How long does it take to process the loan?
15. What has to be done to obtain final loan approval?
16. Can I get pre-qualified online?
17. Does the mortgage place any restrictions on the home?
18. For how long have you been a mortgage broker?
19. What percentage of your transactions is in residential real estate?
20. Can you please provide me with some reference?

Evan Sage is a Sales Representative with Royal LePage R.E.S./Johnston & Daniel Division. Evan is also a regular contributor to the Muddy York Blog.  Evan’s web site is located at www.evansage.com.

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Dying Without a Will

Posted on November 21, 2009 | Leave a comment

By Martin K. I. Rumack

Studies and surveys indicate approximately 40% of Canadian adults do not have a will.  I believe that number would drop significantly if people understood the significant consequences of dying without one.

Consider what would happen if you died without a will (“intestate”).  Initially, your estate assets will be frozen until the courts appoint an administrator, which could cause financial hardship for your family.

Eventually the estate will be distributed according to provincial intestacy laws.  These laws vary by province, but typically provide a set dollar amount to a surviving spouse, with the balance divided equally among the spouse and each child.  This is in the situation of a married spouse and biological or legally adopted children.  A common law spouse or step-children may not be recognized under intestacy laws.  If you have no surviving spouse or children, the assets would go to your next-of-kin in the order provided for by the legislation.

The administrator would have very little discretion in distributing your assets.  Many opportunities to reduce tax – both before and after death – would be reduced or eliminated without a will and related estate planning.

In the case of minor children or dependants, your preference, if any, concerning their guardian may not be recognized.  Payments to minor children would be held in trust by the courts, but only until they reached the age of majority.  At this point, they would have a legal right to the money to spend as they wish – a thought many parents find disconcerting.

It is easy to see that without a will, your family and next of kin could be subject to delays, additional expenses, angst and even potential conflict among themselves at an already stressful time.

I would be happy to meet with you to prepare a will and powers of attorney making life simpler and less costly for those you leave behind.

If you do not have a will, or your will and powers of attorney need to be reviewed and updated, I invite you to give our office a call.

Martin K. I. Rumack is a Toronto based Barrister and Solicitor and is a regular contributor to the Muddy York Blog. Contact Information:  202 – 2 St. Clair Avenue East, Toronto, Ontario, M4T 2T5, Tel:  (416) 961-3441 (Ext. 26). Mr. Rumack can be mailed directly at martin@martinrumack.com.

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It’s not too late!

Posted on November 20, 2009 | Leave a comment

By Shandel Chakalall

Schedule your home improvement projects now to take advantage of the one-time Home Renovation Tax credit worth up to $1,350.

The Federal Government’s tax incentive has created a huge demand for contractors in the renovation market as homeowners rush to take advantage of the credit before it expires.  Only the work completed between January 27th, 2009 and February 1st, 2010 will qualify for the one time grant of up to $1,350.

The president of Homeservice Club, Rick Felton, is recommending that members book their renovations as soon as possible to ensure the work is completed before the deadline.  He commented that, “the renovation market is strong right now and contractors are busy.  Leaving your projects until the last minute might end in disappointment. And, if you want home improvements done in time for the holiday season, it is essential to get things underway now.”

The pay-off to residents is furthered by the current strong housing market and the best financing rates in years. Any renovations completed prior to the deadline will increase the value to your property.

Here are a few things you should know prior to calling in the pros for an estimate.

You should know the scope of your project and your renovation budget; keep in mind that upgrades and/or changes made to projects during renovations will also add to the cost.

Also, get at least three estimates for your job. To make sure your quotes are truly comparable, provide each contractor with the same information and specify the quality and type of materials you wish to have. Take a critical look at the condition of your home.  Make notes on any underlying problems that may need to be addressed before or during your renovation. If for example you have a low water flow issue in your home, then before putting in a new bath, it may be more practical to work on increasing water flow first.

When speaking with your contractor, or on your own, look into what energy-saving retrofits can be incorporated into your project.  Remember, there is also a Government ecoENERGY Program which allows for up to $10,000 in rebates. Your improvements may also qualify you for this program, provided that you follow the guidelines.

Ensure that once you have chosen your contractor, you are not simply choosing them because they have the lowest quote. An unusually low quote could indicate that the renovator does not completely understand the scope of the job or they may lack experience.  If choosing one of the lower quotes, you could look into any recommendations the contractor may have from prior jobs and ask about their experience.

Finally, a rule of thumb, do not work without a contract.  No matter how large or small the job, it is recommended that you stay away from cash deals as they can easily cause long-term issues should your renovation go wrong.

For further information on the Home Renovation Tax Credit, the ecoENERGY program or a recommendation for a contractor, feel free to contact me at any time.

Shandel Chakalall is a Sales Representative with Royal LePage R.E.S./ Johnston & Daniel Division. Shandel is a regular contributor to the Toronto’s Muddy York Real Estate Blog.

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