What Happens When A Seller Fixes A Problem, But Not Very Well?

Posted on November 21, 2011 | Leave a comment

We all know that sellers should always disclose any potential problems with a home to buyers, for both ethical reasons and to protect themselves from potential legal issues later on down the road.

But what happens when a major problem in a home was repaired (or thought to be) by the seller?

If a problem has been repaired, even poorly, by the seller, the law is unclear on whether the seller must inform buyers about the issue.

This CBC news story out of British Columbia details a case where this exact situation has occurred. The seller repaired water leakage problems in the basement, but didn’t do a great job. Because the seller repaired the issue, he didn’t have to tell the buyer due to British Columbia real estate laws. And now the buyer is out $50,000 because of the unexpected emergency repairs that were needed.

A signed disclosure statement told the buyer there were no problems, and a home inspector checked out the home in advance and found no defects, so the buyer bought the home.

Later, the buyer consulted with a contractor who determined the initial repair work was “substandard” and that the proper work permits were not taken out.

What do you think? Should buyers be fully informed about ALL previous issues with a home, even if they have been repaired? Should this seller be on the hook for the $50,000?

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Canadian Real Estate Association’s October Resale Market Figures

Posted on November 15, 2011 | Leave a comment

According to the latest from the Canadian Real Estate Association, national home sale activity increased in October 2011 to the highest levels since January, and the year-to-date sales are in line with the average sales over the last 10 years.

CREA October 2011 Resale Home Stats. Click for full size.

“There was no shortage of headline news in October about global financial market volatility and economic uncertainty, but it doesn’t appear to have dampened homebuyers’ spirits,” said the president of the Canadian Real Estate Association, Gary Morse, in a press release. “Interest rates are at low levels and are likely to stay that way for some time to come. Homebuyers clearly see the opportunities that the current interest rate environment presents. That said, all real estate is local, so buyers and sellers should consult with their local realtor for an understanding of opportunities in their housing market.”

Resale home sales increased by 1.2 per cent over the month of September, and Toronto, along with other large cities like Montreal and Vancouver, led the sales increases.

“The prevailing economic outlook for Canada is one of slower but still positive economic growth, with heightened caution about investment and hiring decisions,” said the Canadian Real Estate Association’s chief economist, Gregory Klump, in the same press release. “Consumer confidence and the housing sector are being supported by low interest rates and high employment levels, but their prospects depend on how Canada’s economic outlook evolves in response to global economic risks and outcomes in the months ahead. Home sales activity over the past couple of months suggests buyers are confident that the Canadian economy will remain relatively unscathed by global economic risks, since every home purchase is a homebuyer’s vote of confidents in the future. That confidence is no doubt rooted in the success or coordinated fiscal and monetary policy responses that helped quickly pull Canada out of the last recession, and a states willingness and ability to carry out further policy actions if need be.”

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Toronto Real Estate Board Releases October 2011 Resale Market Figures

Posted on November 11, 2011 | Leave a comment

According to the latest from the Toronto Real Estate Board, resale home transactions jumped by 17.5 per cent in October 2011, up to 7,642 home sales from 6,504 home sales last year.

October 2011 sales and average prices from the Toronto Real Estate Board. Click for full size.

For the entire year, seasonally adjusted home sales in the Greater Toronto Area for 2011 hit 97,100, which is above average for the majority of 2011 – which was 90,700.

“The pace of October resale home transactions remained brisk in the GTA,” said the president of the Toronto Real Estate Board, Richard Silver, in a press release. “Home buyers who found it difficult to make a deal in the spring and summer due to a shortage of listings have benefitted from increased supply in the fall.”

Home prices continue to increase slightly, up eight per cent in October 2011 to an average price of $478,137.

“Sellers’ market conditions remain in place in many parts of the GTA,” said the senior manager of market analysis for the Toronto Real Estate Board, Jason Mercer, in the same press release. “The result has been above-average annual rates of price growth for most home types. Thanks to low interest rates, strong price growth has not substantially changed the positive affordability picture in the City of Toronto and surrounding regions.”

 

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Calls For More Regulation Of The Canadian Home Inspection Agency

Posted on November 9, 2011 | Leave a comment

According to this CBC article, a nation-wide home inspection standard should be created to ensure that home inspectors properly protect home buyers against problematic houses. 

Home inspectors in the Greater Toronto Area and in Ontario are not mandated to be licensed, however other provinces such as British Columbia and Alberta do regulate their home inspectors with mandatory licenses.

The call for regulation stems from a case reported in The National, where a homebuyer in British Columbia wasn’t told about serious water leakage problems in his basement, costing him $50,000 in repairs. Home inspection or not, sellers must disclose defects in a home they know about. But in this case, the seller had attempted repairs on the leak before listing the home for sale, and therefore didn’t have to mention it. Across Canada every year, many lawsuits are filed against sellers and their realtors for not disclosing serious defects that end up costing the buyers large sums of money later on.

A home inspection is a wise decision that protects buyers against such defects, but a home inspection is still not a fail safe – which is why many are calling to changes to Canada’s home inspection industry.

Currently, a home inspector cannot really be held liable for something they miss in Ontario. In the initial British Columbia case, a home inspection was conducted, but the inspector told the buyer that they can only really find visible defects, not anything that won’t be found from a bit of “poking around”.

Laws in Alberta are particularly strict, making sure home inspectors carry special insurance invcase they are sued for mistakes, and violations of home inspector laws can result in serious fines and jail time for the inspector.

But still, there is no nation-wide standard for home inspectors in Canada, and in some places a home inspector can be certified after a short online course.

Some are also calling for post-secondary courses in home inspection. One Sault St. Marie college already had a home inspection technician program in place that is similar to other trades. The dean of technology programs at the college told the CBC that, “Students go through the training they would go through to actually build a house, and know how to build it right and understand the codes from the inside out.”

Home inspectors in Ontario are as diverse as they come, with some offering a subtle “poking around” to look for problems while others take the time to find hidden problems using infrared scanners and other tools available to them. When choosing a home inspector, ensure that you put in the research by asking for references and checking them out online.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Survey Reveals Common Myths About Buying A Home

Posted on November 4, 2011 | 1 Comment

American real estate company Zillow recently conducted a survey of 1,000 potential homebuyers on areas of the home buying process they were confused about. While the survey was conducted in the United States, the myths cross over easily into the Canadian real estate market.

The home is officially yours once the purchase contract is signed. This isn’t true. The buyer actually takes legal possession of the home on closing day, and after a few important steps take place: First the lender gives your mortgage money to your lawyer while you give your lawyer the down payment. Your lawyer will then pay the seller and have the home registered in your name. Then and only then, you will be given keys and the deed to your home, rendering it legally yours.

Homeowner’s insurance is an optional extra cost. Homeowner’s insurance is often required by most lenders before they’ll consider giving you a loan to buy a home. Otherwise, it is not legally required. However, homeowner’s insurance will help cover huge costs that you may incur as a homeowner such as damage from storms, mold problems and most importantly break-ins and fires. It is definitely not something you’d want to be without.

An appraisal makes sure the home is in good condition before you buy it. Survey respondents were confusing a “home inspection” – which involves an inspector checking out the home to ensure it is in good condition and working order and an “appraisal” – using an appraiser to determine the market value of a home, something that is usually required by a lender so they know how much the home they are putting up the money for is worth.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Toronto Housing Market Will Remain Steady

Posted on November 3, 2011 | Leave a comment

 

According to the latest report by the Canada Mortgage and Housing Corporation, released today, the 2012 Toronto real estate market should remain on par with what we’ve seen this year as sales plateau, condominium construction continues to increase and price increases slow down.

“The market will feel somewhat slower than previous periods of high activity as buyers practice more restraint in light of slowing economic fundamentals,” said the senior market analyst for the Canada Mortgage and Housing Corporation in a press release. “Low interest rates will help keep a decent sales pace, but expect resistance to price increases as more supply enters the market.”

At the annual Canada Mortgage and Housing Corporation Toronto Housing Outlook Conference, the Canada Mortgage and Housing Corporation also announced a few highlights for its 2012 housing outlook:

As more baby boomers retire over the next few years, downsizing will become more popular as boomers look to smaller homes and condominiums.
Low vacancy rates will be alleviated by constant and strong condominium construction.
Homeownership will remain affordable as home buyers look to parts of the Greater Toronto Area that are less expensive.
Condominiums will become less expensive as more become available to buyers thanks to high condo construction.

 

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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View Toronto Real Estate On The Go With New Mobile App

Posted on November 2, 2011 | Leave a comment

Royal LePage has just announced a new mobile real estate website for Blackberry, iPhone and Android platforms. Listings across Canada will be visible on the new mobile website, making it easier for prospective homebuyers to view home listings. In addition, neighbourhood information will be a highlight of the new mobile site, featuring reviews from real estate agents and homeowners in the area.

“Buying a home is often the largest financial decision Canadians will make in their lifetime,” said the president and chief executive of Royal LePage, Phil Soper, in a press release. “To help prospective buyers make informed decisions, our new mobile site allows users to gain extra insights from the seller about their home and comments from the agent about the neighbourhood.”

The mobile site was only announced today, so it will take some time for more more and more information on each neighbourhood in Canada to be added.

“While it will take some time to get the seller and agent comments populated, we have many advanced features to serve as the backbone for the mobile site,” added Soper.

Other features such as the “walkability” of neighbourhoods and reviews of local businesses will also be available.

“The future is mobile and we’re pleased to offer homebuyers and sellers the ability to access valuable eal estate information right from their mobile devices,” said Soper.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Bank of Canada Keeps Interest Rates Steady

Posted on October 27, 2011 | 1 Comment

The Bank of Canada has made its ninth announcement (on October 25th) in a row where it has decided to keep its rate at 1.25 per cent.

According to the Canadian Real Estate Association’s latest press release on the matter:

“Along with the return of more robust economic activity being pushed further out into the future, core inflation is now expected to remain below the Bank’s 2% target until the end of 2013. What it all means is that interest rates will likely be on hold even longer. Expectations as to how long it would be before the Bank hikes rates had previously centred around the fall of 2012, although it will now more likely be into 2013 before the Bank begins to tighten monetary policy from current levels.”

In addition, the Bank of Canada lowered its economic forecast for Canada, revising predicted economic growth to be only 2.1 per cent as opposed to the previously projected 2.8 per cent in July for 2011, and down to 1.9 per cent from 2.6 per cent for 2012. The economic outlook for growth for 2013 on the other hand, was upgraded from 2.1 per cent to 2.9 per cent.

The Canadian Real Estate Association also added, “As of October 25, 2011, the advertised five-year lending rate stood at 5.29 per cent. This is down 0.1 percentage points from 5.39 per cent on September 7, when the Bank made its last policy interest rate announcement.”

The next announcement will be December 6, 2011.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Canadian Housing Market Remains Bright Spot: Canadian Real Estate Association

Posted on October 26, 2011 | 1 Comment

According to the Canadian Real Estate Association’s latest statistics for the September 2011 real estate market, home sales across Canada have increased by 2.7 per cent over August 2011.

“The Canadian housing market remains a bright spot against a backdrop of mixed headline news about the global economy,” said the president of the Canadian Real Estate Association, Gary Morse. “Low mortgage rates continue to draw buyers to the housing market, while recently tightened mortgage regulations are working as intended. That said, housing market trends often diverge from national trends due to local factors, so buyers and sellers should talk to a local Realtor to understand housing market trends at play where they live.”

The September 2011 sales-to-date are also in-line with the average for the last 10 years. Check out the graphic on the left for more information on the 10-year homes sales averages across Canada.

Gregory Klump, the chief economist at the Canadian Real Estate Association, also had this to say: “Canada’s housing market remains stable amid continuing financial market volatility, contributing to Canadians’ confidence in the economy and providing support for Canadian economic growth. Interest rates are expected to remain low and for longer, and evidence suggests that recent changes to mortgage regulations are preventing the kind of excesses they were designed to avert. Both of these developments are good news for the housing market.”

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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