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Canadian Terminology |
International translation |
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Survey |
In Canada, it's a plot view of the land, showing the boundaries of the land in longitude and latitude, and demonstrating the location of structures on the ground. In Great Britain, it's an inspection report that, in Canada, would be called a Home Inspection Report. |
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Lawyer |
They are the people who wear the long black robes, and white wigs in some countries, and go to court to defend us, or secure vengence for us. A.K.A. Attorney, Solicitor. |
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Renovation |
In Canada, it's when we buy a building and tear it apart and make it into a house we like. In England, it's called a "conversion." |
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Words that end in "our" instead of "or" |
We don't have the accents of our beloved U.S.A cousins, and we still spell like our beloved British ancestors. The extra letters actually came from greedy printers. They charged by the letter, which is why 'enough' isn't spelt 'enuf.' |
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Your Input |
This is fun! Have you spotted any other international differences in real-estate terminology? Send them to me! |
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Previous Q & A's: (search by topic.) |
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I entered a rent to own contract to buy my house in October of 2003. My contract is very clear, and I made the final payment in Sept. 2004. The seller was supposed to sign the house over to me when that final payment was made. I have been living in the house ever since. I have never paid or been asked for rent past Sept. 2004. The thing is, he has made absolutely no effort to come to the village office to sign the house over. I've contacted him countless times over the past 4 years, and each time he has an excuse why he can't. Now, I've discovered that his ex-wife's name is also on the title, so he is saying that I have to find her and get her to sign first and then he will sign it. He also claims he hasn't seen her in 10 years, and refuses to track her down himself. The village office told me that the only thing I can do is to get them both to go there and sign them in front of a notary public, but short of physically forcing them there I dont think that's ever going to happen. I dont know what I can do, I just want the house signed over. I feel like he is waiting for me to just give up and move out, is there any other way I can force it, without having to hire a lawyer because I really cant afford it. (From a small place in Saskatchewan) |
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I'm on a rent to own basis for a trailer and land. He did this lease where at the bottom itsays other: rent to own for 15 years. Am i responsible for the repairs needed to fix the trailer, especially the roof. He was suppose to fix the roof but what he did was useless. Now I need a new roof. Am I liable for this as well? Also, by the property still being in his name, but I'm on a rent to own, who is responsible for paying the annual property tax, and property insurance. Where can I go to get more information on this matter. Is there any way other than a loan, in which I'm not qualified for, get the property deed placed in my name? Shanda, GA |
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We currently own a house that we rent to my husband's daughter. She is interested in purchasing the house from us, but they have bad credit and no downpayment etc.How does the "rent to own" work? I am having trouble finding any good info on this topic. Kathy, somewhere in Ontario |
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My husband and I land-contracted our home that we still owe on; for just one year, ending Sept 2005; They have been late with payments since Jan 2005 and now they havent' made April's, May's and June's payment; Can i evict them and sell the house to someone that will pay our mortgage off and not ruin our credit. We are renting a place and cant afford to pay the land contract house payment for them and our rent; please help me; i cant get a response from anyone Angie, Kentucky |
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I got some helpful answers about renting to own. There is not a lot of clear answers on the internet about this so thanks. What I am wondering though is there any sort of fees associated before you move into the rent to own? I mean I assumed of course there would be lawyer fees to draw the agreement up, but I came acroos things that mentioned an Equity Fund Payment???? Things about Down Payments??? Do you have any info on this. We would really like to look into this option but have such little knowledge on it. Any help you could give would be great. For some extra info we would be looking in Alberta I believe you are in Ontario are there large difference from province to province? Thanks so much. Jamie. Alberta |
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We are currently looking at a rent to own proposal. Is there a difference between rent to own and rent with option to buy? We are wondering who is responsible for repairs on the property, roof, water system, sewage system...? What are the rights and responsibilities of the "tenant" and the "landlord"? Any information you have would be greatly appreciated. Thank-you! Dennis |
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I would like to sell my home by Rent to Own. How does it work? Natalie (Michigan) |
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How do i get a rent to own house? We would like to get a rent to own. Byrd (Jackson City TN) |
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We are trying to find rent to own homes in Barrie or surrounding areas. Is there a web address for listings? Can you help us with this. Shannon |
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This is a bit unusual. But, basically, I'm looking for some information from a seller's point of view for "Rent To Own". My Mother is currently a guarantor on her grandson's mortgage. This is NOT working well, and we have finally convinced my nephew that we can get a better interest rate if Mom remortgages on her own. (He does not have a good credit rating, but she has an excellent one). As a bit of incentive, we told him that he could Rent To Own and therefore, as long as he keeps up with his monthly rent to his Grandmother, then eventually, when his credit rating improves, he can buy her out. I'm not sure if we're playing with fire on this one or not. I know there are normally lots of stipulations for this type of rental. Since it is in the family, we would not be overly concerned with the normal amount over and above the rent, which would go as a "downpayment". All we want is for my Mother to be protected and to hopefully be able to let my nephew assume the mortgage in a couple of years or so. We will be visiting a lawyer next week, but I just thought maybe I could get an advance "heads-up" on what we may need to do or be careful about. Any advice you can give would be greatly appreciated! Brenda |
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We have made my landlord aware that our vents are filthy (there is a lot of dust and dust "chunks" in the vents. My fiance is allergic to dust mites and all of the dust is making him ill. It is even starting to bother me as well. The dust is everywhere. We have had to place filters in the vents in order to block the dust from coming out, but it still does not catch all of it. When we asked our landlord to come and clean the vents, they refused, telling us that we could contact a company in order to repair the damages and then deduct $100.00 from our rent. This is not acceptable to us and we are thinking of contacting a lawyer. Do we have a case? We live in Raleigh, NC. Wendy. |
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My husband and I have a condo in Belleville, Ontario. We rent it out for 750.00 a month, with the renters paying their own heat and hydro. There was no lease signed when they started renting in Feb of 2006, or was last months rent given. Now the renters are continuously late paying their rent. We listed the unit for sale. When we do sell it what is our requirement to them. Do we have to give them two months notice? Can we give then 1 months notice? Can we go for the last months rent to get them out, and let them use the money to rent a new place.Rosanne |
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Thinking of buying a house the basement is fineshed and it is a two family. i will be getting rents from one floor can i rent the basement for extra income ? what is the risk? and the law rigarding that?and please direct me to find the answer if you do not know it Thanks a lot. Carol. Medford Mass |
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I was wondering if you could either point me in the right direction or answer my question. I am wondering where I could find the rules and regs. regarding basement suits? what constatues a basement suit? is is leagle? if it is illegal will i get in truble for having one? that sort of stuff. any help you could give me in this area would be greatly appriciated. Marlo, Nanaimo |
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Can I make an apt in a backsplit house.no windows in the basement. Tony, Ashawa |
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I am thinking of purchasing another home as a rental property approx $150 000. My son will be living in the home while he is attending university and friends living with him will help pay the rent. I already have another rental property near my home that I have a mortgage of $56000 remaining. Should I try and combine the mortgage of the new purchase with the original or have a new mortgage. I have heard that I require a 25% downpayment for a second mortgage on the new purchase. What is my best option or do you now any different options. Merrill, Newfoundland |
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I am looking for information on the regulations in regards to building/renovating my home to build an inlaw apartment. Emeline, ON |
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Bill what your saying I shouldn't buy now? I am looking for a duplex or triplex in the GTA to offset the mortgage. Should I still wait? Trevor, Toronto |
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My husband and I are a year away from paying off our house and we'd like to either rent out our home and purchase another, or buy a rental home or even a du-plex or tri-plex to supplement our income. I was wondering if we can use the equity in our house tax free to accomplish that since it is an investment for our retirement, and if not, what would be the best route to go so we accept the least amount of tax...Thank you so much! I wish our capitol gains tax was the same as the United States!!! Nicole, Lethbridge |
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I have come close to buying a townhouse for sale on Trevino Circle.While browsing the net, I came across your website. I am a new immigrant, my wife's studying nursing in Georgian college and will be there for 2 years.I work in Mississauga. The reason for me wanting to buy is that I have a short term requirement and I see a rental demand (because I could not find good rental accommodation within my budget when I was looking) wherein I could rent the house after the 2 years. I am not sure if this is the right approach. Also how do you foresee the housing market in Barrie in the future (2 years down)? I am going to sign a purchase and sale agreement on the 15th of October. Any feedback before then will be greatly appreciated Thanks DJ |
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If we have a co-signer to buy a house, do we need any money down? Djianne |
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I no 2 people that own homes and they are forclosing on them. They are renting both homes out to renters that have no idea the home is being forclosed on. Is this legal to forclose on a home , not pay any morgage on it and rent it out for profit? Chris, Florida |
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My mother owns a house in downtown Toronto and she wants to put my sister and myself on the deed. My sister is 65 and I am 60. Will this affect the property tax rebate my mother receives as a senior? Lynda, Little Current, Canada |
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Need to know what the tax repurcussions are for transfering title to a family member, he will be refinancing the home under his name therefore paying off loan under my name. He has been leasing the property for the last 10 years with intention to eventually purchase. Want to make sure there is no gift tax issues by doing it this way. Patty, Redlands,California |
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How do I get a list of foreclosure or judicial homes for sale?? I've been in touch with a couple of realestate agents here in calgary alberta. They send me listings but none that reveal that they are foreclosures or emergency sales. Is there any agent or bank contact that would be willing to send me such material?? thanks Lin, Calgary |
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If u assume a mortgage in alberta and it goes into default before the first year of payments who is resposible for the balance owing upon point of sale. the original person that took out a brand new loan or the person that assumed the mortgage. Richard, Calgary |
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My husband and I are looking to purchase a home from his brother, the house was inherited by all of them but his brother bought everyone out and refinanced and gave each a small portion. Now my brother-in-law is splitting with wife and wants to sell home to us to get out of it. We have come to find out the home has been re-financed twice, they owe around $89,000. His wife has filed a chp 13 bankruptcy which includes the house. But they are really pressing the issue of having us buy the home, but we don't know if it would be good for us and our future. Also the house needs some work done to. Kawawn, Nashville |
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Can i buy a foreclosed home with a contigency to sell our home, without having to get a bridge loan and all my options- to get this dream home. Jon, Greensburg IN |
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We are about to lose our home under power of sale and will be declaring personal bankruptcy. What is the legal consequence of selling off some of the pool equipment we recently purchased and other moveable upgrades like kitchen island, ac unit etc. French doors etc? Since any deficit what be under the bankruptcy can we be legally charged for doing this? Ontario |
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I have been reading your website for quite some time and have to say that I am impressed by the info and the insight you provide. What do you think of the Tax Sale properties in general (i.e. properties that are auctioned for unpaid property taxes)? Do you think one can find good value at a bargain price for investment purposes? Do you think that one can still buy real estate property for investment purposes these days or should wait and if yes, how long until it makes sense to buy as an investment? Filipe, Richmond Hill |
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How long does it take to have a foreclosed property go up for resale? We were talking to a real estate agent and she said it could take up to six months? I think she was trying to deter my husband and self to buy other properties she had, am finding it hard am anxious to look at this property, but how long do I need to be patient? Any information on the proper way to do this and any information on how to properly obtain the home when it has been foreclosed on would be greatly appreciated. Angela, Toledo ON |
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My husband and i are currently looking for a home in alberta,He has gotten a job there.I heard that it is very easy to buy a house through a mortgage broker,is this true?How do we go about this?Also,Do you have any names of brokers in the slave lake area?We were also going to see if we could get a foreclosed home.Is this a good idea?Is there a lot involved in buying a foreclosed home? Thank you. Lisa. Nova Scotia |
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Everyday I pass a huge boarded up house and am interested in buying and making renovations. There is no house/lot number. How do I get information on finding out ownership status? Jaiede, Harrisburg PA |
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Can i take over ownership of a house that's been abandoned? The taxes are due this year and there's no one to pay them. I want to pay the taxes and move in. Colorado |
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How can I obtain listings of foreclosed/power of sale houses? Cherrie |
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(Abridged Email) I'm in the middle of a divorce. We have sold our matrimonial home thats closing in a few months but my wife and I have a (newly built) house we purchased previously thats scheduled to close the end of this month. Out of good faith I was willing to have my name removed from title before the last day without penalty but my wife declined for her own reasons. She is willing to take over and assume any obligations of the house, which has been outlined in letters between our lawyers (I assume she will eventually be getting a cosigner because she wont be able to obtain a mortgage without a secondary income)but due to her own reasons she wishes to continue to keep me in the agreement I guess till closing. Because I know that she wishes to have the house its obvious though unspoken that the only way to assume responsibility of house is for her to get a co signer, What are the consequences if I choose not to sign the final mortgage papers? Anonymous from Ontario. |
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My husbands mother has to sell her house (per her divorce) she wants to remain in the house she has asked my husband to co-sign with her boyfriend. She has stated that in one year she will switch the house in to her and her boyfriends name and remove my husbands name. I am not sure about this action. what are some issues that could arrise and potentially cause problems for my husband and i? please respond as fast as you can. Jenny, Massachusetts |
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I bought a house 2 years ago with my sister on the Mortage as a co-signer. Is she entitled to a share of the profit when i sell? Do i need her consent to sell the house? If she is entitled to a share of the profit or i have to have her consent to sell, is there anything i can do to have her remove as a co-signer? I have not missed one payment, and I now have a good credit report! Minda - Alberta |
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Me and my husband bought a house 4 years ago with my husbands Father on the Mortage as a co-signer. Is he entited to a share of the profit when we sell? Do we need his consent to sell the house? If he is entitled to a share of the profit or we have to have his consent to sell, is there anything we can do to have him remove as a co-signer? We have not missed one payment, and we now have a good credit report! Tanya - Alberta Canada |
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My daughter, her husband their 2 year old daughter own a beautiful large trailer in Hanmer. They are growing out of it, as he also has 2 teenage boys on visitation. Anyhow, they want to buy a larger home but have bad credit from a long while ago. she is on ODSP and he doesnt have a job. I cant co-sign. but want to help them. I can vouch for them being, very responsible. Is their any way they can buy a larger home? Are their people who hold the morgage? Thank you. Lynda, Sudbury |
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I am in the process of buying a home and I am needing a co-signer. My mom stated she would co-sign and has very good credit A-1. My question is can she be a co-signer even though she doesn't have a job. I have the income and she has the credit. Takiyah, Greenville, NC |
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My son and husband co own a house.. My husband and son both on title and my husband co-signer for the morgage..Now my husband wants off as promised by my son for over a year..My husband and i have no real equity in the home but my son ownes us money and we would like to know if we can force the sale of the house and just get back what he owes us..thks Anna, BC |
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What is the difference between a collateral loan and a mortage? Deb, Huntsville |
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My mother in law is dying and has a reverse mortgage on her home. She wants my husband and i to purchase the home after she passes which will be soon. How do we go about doing this? She states the house mortgage at this point in time is $105,500. Neither my husband or I have a good credit standing. Beth, Portland. |
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I have a co-signer on my house. It is up for renewal and she wants to come off. Please tell me the process that that involves. I appreciate. Sylvia, Brampton |
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What happens if a person cannot come up with the downpayment on the specified date? Our offer has been accepted on a house but we are having more trouble than anticipated arranging the money for the downpayment. We have until the 15th of April to come up with it. Our mortgage has been approved providing we have this money and the bank has told us by May 2 we will have 7 percent of the mortgage back. Jennifer, Ont |
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Can a person with good or excellent credit cosign for more then one apartment rental agreement involving different tenants? Tamara, Oxnard California |
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Can you borrow money to build a house, when you own the land out right? Joyce, Barrie |
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Can a person be held responsible for a mortgage even if they have signed a quit claim deed? Gail, West Palm Beach |
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If I needed a co-signer to purchase my home if I wish to sell do I need their consent and are they allowed any funds from the sell? Mellissa, Charlotte NC |
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Bill, got a question about cosigners. Am I looking into to buying a new home with my girlfriend who is half a year from finishing graduate school, but unfortunately the bank requires a co-signer for my mortgage other than my girlfriend. I have one in mind but they have alot of questions about it. One, how difficult is it to take the co-signer off of the mortgage? Two, can that co-signer go and purchase their own condo/house without repercussions? Drew, Toronto |
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I am thinking of purchasing another home as a rental property approx $150 000. My son will be living in the home while he is attending university and friends living with him will help pay the rent. I already have another rental property near my home that I have a mortgage of $56000 remaining. Should I try and combine the mortgage of the new purchase with the original or have a new mortgage. I have heard that I require a 25% downpayment for a second mortgage on the new purchase. What is my best option or do you now any different options. Merrill, Newfoundland |
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I need a co-signer for my mortgage. I am going to ask my aunt but will her co-signing on my mortgage cause her assets to go up? If she was ever to be in a nursing home would they take my house from me? Does she need to be listed in the newspaper or just myself because I would be on the deed only? Please answer me ASAP. Thanks Mark NY |
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I have a friend who has been asked to cosign on a mortgage. Does this give her property rights and include her name on the deed to the house. Jennifer, Las Vegas |
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My husband and i are currently looking for a home in alberta,He has gotten a job there.I heard that it is very easy to buy a house through a mortgage broker,is this true?How do we go about this?Also,Do you have any names of brokers in the slave lake area?We were also going to see if we could get a foreclosed home.Is this a good idea?Is there a lot involved in buying a foreclosed home? Thank you. Lisa. Nova Scotia |
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Is there a certain period of time after you sell a home, that you can be considered a first time home owner again? Trinity, AB |
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My sister refinanced her house allowing her roommate to have her name on the deed in agreement that the roommate was to help fix the house up, which she has not done. Is this arrangement legally binding, or what options does my sister have to get her friend off of the deed? Tane, Mobile Alabama |
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What are the obligations of a co-signer when the principal borrower defaults on payment? If it is a car and the co-signer becomes liable.....does that entitle the co-signer who is now paying to become the principal OWNER of the vehicle? D. Somewhere in ON |
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If I cosign on a mortgage, can the person holding the loan do a quick claim deed to release my responsibility if the morgagee defaults? Jean, Illinois |
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Can a lender come after my property to take possesion even after receiving all mortgage dues paid up to date after being at a little default. Jonty, Toronto |
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I am in the process of buying a house here in Sask I was approved through the bank but now CMHC wants a co-signer. The house was appraised at 10,000 more then what I need for a mortgage so why do I have to have a co-signer and if I get one do they have to stay on the mortgage for 25 yrs? Also what are my rights in this situation, will the house be MINE or our's. I don't want anyone else on the mortgage. Jessie, Regina |
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I bought a house this past Feb. Since I am only 20 I didn't have the credit to put it in my name but I made enough money for someone to cosign for me. My mom cosigned for me. My question is her new husband recently totaled her truck and wasn't put on her insurance yet. If for some reason she got sued can they go as far as to take my house away since she cosigned. I'm kind of freaked out about the whole thing. Thanks for the help. David, Indiana |
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If i am the co- signer on a home, will I lose my first time home buyers rights, and what are the benefits for first time home buyers? David, Whitman, Ma |
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I have an irresponsible son therefore he and I have agreed to execute a quit claim deed and I pay him the equity of his house. Given that there is still a mortgage, can I simply take over the payments and assume ownership after I file with my local county? Ben, Huntsville AL |
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The cosigner of our house won't sign off on our house that has been sold. Ingrid, Sask Can Does a co-signer have to sign off or have any responsiblities when we sell our home? Victoria. Somewhere in Canada |
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My husband are first time home buyers and everything is really confusing. Now we have been pre-approved for a loan from a lender. we have already selected our home and the offer was accepted. In fact the couple signed their end of the agreement today. Now since we have a pre-approval letter ect. all we are doing now is waiting for closing right? Is our approval for sure now, if the house is ok that is? The lender set up an appt. for an appraiser next week. I'm so afraid that after being soooo excited for my new home our broker is going to say, sorry for the inconvience I can't find you a lender after all. Is this possible????? Please, explain Thank you sooo much. Melissa, New Castle PA |
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I am considering acting as a guarantor on my niece's mortgage (she is re-financing and currently her credit rating is not good enough). Will this affect me when I want to lease a new apartment, for instance, as the amount of her mortgage will show up as a liability on my credit history? Thanks! Deborah |
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If a person is buying a house and there is a existing mortgage can the house be rented to another party? |
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I would like to know after I have informed my bank that I intend to sell, do I continue to pay the mortgage or do they wait until the house is sold? Ivan |
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I am almost 10 months behind on my house and it is in foreclosure. Is there anyway I can keep my house? I now have a job and I want my house for my wife and children, Please Help.Chadwick |
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I am trying to purchase a home and am approved for 80% LTV. The loan officer told me that the purchase contract for the home would have to state that the home is selling for 125000 (the appraised value) when the purchase price is only 96000 so that my down payment is covered. How will this affect the seller since he is really not making any profit from the sale?? Thank you for your time. Crystal |
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If we have a co-signer to buy a house, do we need any money down? Djianne |
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I am a single mother and have been renting the same apartment for approximately 25 years or more. I am now paying a rent of $954 and change per month...I am tired of renting and would like to own my own home. The problem is that the bank (Scotiabank) has only approved me for $151,000.00. Honestly, in the Scarborough area, these houses are NOT readily available. I have two parents that I need to be close to because of their health. How can I be approved for more than the initial (amount?) I am totally ignorant of mortgages, approval, costs and everything that is involved in this process. I desperately need help in owning my own home. Could you please advise me as to what is available for me out there. I would appreciate any help that you could give me. Jessica |
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I bought a home with my wife and her parents put their name and house up as collateral for our house. They now want their name off our house. How do i go about this problem without selling the house? Dave |
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My sister and I were pre-approved to buy a repo property from the bank, whom is using a real-estate co. to sell this property, since we already know everything about this home, which was my deceased neighbors, do we have to pay for a private inspection? and do we really have to give an honest money deposit, since the bank know that we are very serious and have been working with us to get this house as well as our loan officer sending the pre-approval letter to the bank repo mg. as well as the real-estate co? Also is there any other form of deposit other than honest money that can be used if the buyer does not have the funds the agency is requesting? at that moment? Antoinette |
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I'm asking for my parents. They have a 3 unit apart. building that is draining them financially, they put it up for sale and now have a closing date this week. Problem? They have 2nd & 3rd mortgage, banks aren't budging to make things easier, my parents have already found a smaller home and have started to move and now the closing my not happen. What would happen if my parents just walked from the old home to live in the new? looking for the worst case scenario. Thanks Bobbie |
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Is there anything that will "automatically" disqualify me from getting a bank load even if I have > 5% downpayment? My credit has been atrocious because of a recently diagnosed ADD. I am a former bankrupt > 10 years ago, but my credit since then has not been good. Phil |
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We purchased our house in july of 1999 and was told by the bank that we needed a co-signer to be able to purchase our house. My inlaws co-signed for us and signed all papers that we did but the mortgage insurance papers. My mother in law passed away in November of 2001 and what my question is do we have a legal right to have our house paid for by the bank because they co-signed? Cathy |
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I have a question regarding cosigners. When the bank said no for my mortgage the real estate company that I was dealing with cosigned for me. My question is what rights do they have to my house? It is now 13 years later, they have never contacted me over the years but when I tried to sell the house she is refusing to sign off. My lawyer says I have nothing to worry about but I am bothered by this to the point where I can't sleep at night. Any advice or info similar to my case would be appreciated. Thanks, Brianna |
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Hi Bill. A friend is trying to buy a HUD multi family (4 apartments) house in Brooklyn, NY. She has asked me to co-sign. What would be expected of me? What happens if she's late on payments. I have not done any thing yet. I have a good credit rating and want to keep it that way. Please advise. Thank you, Melissa. |
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Divorce |
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(Abridged Email) I'm in the middle of a divorce. We have sold our matrimonial home thats closing in a few months but my wife and I have a (newly built) house we purchased previously thats scheduled to close the end of this month. Out of good faith I was willing to have my name removed from title before the last day without penalty but my wife declined for her own reasons. She is willing to take over and assume any obligations of the house, which has been outlined in letters between our lawyers (I assume she will eventually be getting a cosigner because she wont be able to obtain a mortgage without a secondary income)but due to her own reasons she wishes to continue to keep me in the agreement I guess till closing. Because I know that she wishes to have the house its obvious though unspoken that the only way to assume responsibility of house is for her to get a co signer, What are the consequences if I choose not to sign the final mortgage papers? Anonymous from Ontario. |
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My ex and I have agreed on a "fair market value" of our house based on MLS listings in the neighbourhood, for my buyout of his interest. Should the final buyout price be discounted by the 5% real estate commission that we're not paying out but that the MLS listings contained in their "fair market value" selling price? Shelley, Toronto |
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I had the buyer for my house back out the day she was suppose to pick up the keys. She signed agreement 3 months earlier. I was in the middle of a divorce so the sale was crucial as I could no longer afford the mortgage. The bank agreed to hold off taking the home because we sent all the paperwork that the house was sold, the knew they would get their money. When she backed out, the bank took over we now had more fees than imagined I lost about 30,000. Is there any thing I can do to recover what I lost? Dawn, Oshawa |
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My common law has up and moved leaving the province and i have no idea how to reach him, he will not return my emails and his family will not tell me where he is, i can't even sell the house unless i have his approval, both our names are on the mortage. what are my legal rights? Diane, NFL |
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I am in the middle of a divorce..in my separation agreement I signed over 100% of the house to my ex and all the responsibilities of the house to her. The house is now sold, with me signing the house over do i still have to sign off on the house in order for the divorce to go through. Sandy, The Soo |
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My boyfriend and I split up and we bought a house together. My parents gave me the downpayment and he has agreed to take his name off the land title and has agreed to take his name off the morgage. He does not want any money from the home just to walk away. I have hired a lawyer and he has drawn up the title transfer documents which we will sign later his week. If I do all this than is the house legally all mine or can he still get money out of it. Cindy, Saskatchewn |
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My ex-husband transferred our home to a corporation we formed while married. We have been divorced for almost 4 years and I have retained the home for the last 6 years and have been making the mortgage payments; however, he never advised the mortgage company and they will not allow me to assume the mortgage without applying for a new mortgage. I now want to apply for a mortgage with a different bank but need to transfer the property from the corporation to myself to do so. I have been the sole director and shareholder of the corporation for 3 years. Does this present a problem? N. Calgary |
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I have a home that is owned by myself and my ex-boyfriend as tenants in common. I wish to sell my interest in the property. However my ex, with whom I have a child, is not cooperating. My ex is the custodial parent. I have not lived at this home for 4 years but he still resides there. I want to either force a sale or a buy out by having him re-finance the property. I am still paying mortgage payments on the home. I want to pull my equity so that I can have the money I need to pay child support. Is there any way that I can force my ex out of the home or have her evicted? Lisa, Philadelphia |
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My partner & I listed our home back in June 2006, we then pulled it off the market, but the contract goes till Sept. 2006. Now because we are seperating I want to put the house back on the market, my question is.........can I call the real estate agent and have the house put back on the market without my partners consent, we both signed the contract. Will the real estate agent do this. Also do we have any commitments with the real estate agent if the house does not sell in this time. J. Cambridge ON |
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I bought a house with my comman law and 15 months later she moved out to be with someone else. Now 3 years later her name is still on the title and she has put nothing in to the house. I want to sell it now. Do I have to have her signature to sell the house. Ken, Edmonton. |
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I've been married for 8 years and have 2 children. My name is not on the mortgage or deed to our home and my husband feels its not necessary because we have a will. My family says will or no will my name should be on the deed. I know my husband had troubles in his prior divorce dealing with these matters and perhaps he doesn't want to be bothered with adding my name but if it's important I want my name added and want to be able to explain why it's important. I really appreciate any advice you can offer. Many thanks Kristi in New Jersey |
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My husband co-owns a 2 family house with his brother. My husband and I want to sell the house and and have both families make the profit and go our seperate ways, but his brother and his wife may want to buy us out. Which option would be more beneficial for us? Thank you. Kym, New York |
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My home is in my name and my husband is a co-signer not a co-owner, Can I sell my home without him? Julie |
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I recently purchased a home with my fiance, and now we're splitting and his name is on the loan but both of our names are on the deed. Does he has the legal right to sell this house without my approval? Conekia |
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If I list with a Realtor to sell my home, and it does not sell, am I, the Seller, held to the 120 period? If I decide to buy it if it's not sold (it's a divorce), does the holdover apply to me?I want to list and hope we will get a good price for our home, but if not, I might decide to buy my partner's interest. Thanks! Kim |
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I bought a house in may of 2001 and on the listing paper with the realty it said the house furnace and central air was 4 years old and we just had a major breakdown with furnace(400 dollar band aid) and the original installers came and worked on it and said it was 20 year old this year so doing the math the unit was about 13 yrs old when I bought the house! My question is what can I do because I will have to buy a new one next year that is if it makes a year. Is It a legal Issue? Or should I just eat the cost and go about my life? Robert, Mattoon, Ill |
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My husbands parents gave us their house and put our names on the deed to their property, with them having just living interest. My husbands dad died ten years ago and my mother in law is unable to care for herself so she is in the hospital awaiting for an opening in a nursing home. We had a mortgage out in the past which is now paid off. Because their names were on the mortgage they had to sign too. My concern is she has her mental capacity right now, there is no power of attorney, if we wanted to take equity out in the house a couple of years down the road I can't see how we will be able to do it, as she still has living interest on the deed. If her mental capacity has goes down hill. What recourse do we have? Can she sign something at land registry to take her name off the deed before we get to that point. Its inevitable. Thankyou so much for your help.Debbie, New Brunswick |
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My wife and I are currently living in her house and want to sell to purchase a bigger home. My questions is with the quick claim deed, when my wife and her previous husband divorced all the paperwork was signed for him to quick claim the house to her, upon trying to sell the house his name is still on the deed with the town records. I guess my question is which lawyer is responsible for filing the paperwork with the city? As it stands now we cannot sell the house without his signature which really is a problem since he does not live in this country anymore. Do we have any legal recourse to hold the lawyer responsible? Steve, Bristol CT |
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My husband and I recently bought a home and used a lawyer to take care of all the necessary tasks involved. About 6 weeks after moving into our new home, we received a notice from our Town informing us that the previous owners had an unpaid water bill for aprox. $700 and that they were putting a lien on our home. My question is, was it my lawyer's job to have known and inform us about this outstanding bill before closing on this home? We were under the impression that the lawyer would be making sure all bills by the previos owner were paid . Annette, Aurora ON |
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So glad I found this website! My common Law spouse and myself purchased a home together 2 years ago. My name is NOT on the title, but we would like to add my name. How do we go about this? and how quickly can it be done? Rhonda, Courtney BC |
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Can a property owned by two people in "joint tenancy" be changed without both parties consent and signature? Don, Stoufville |
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Is there such thing as having no legal fees? Sherrie, London |
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How do I add my son's name to my home deed and by doing so will it affect his opportunities for being a first time buyer when he decides to buy a home? Vanessa, Baltimore. |
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I'm trying to find out if I have a case. We sold our house, but the closing didn't happen and the sale fell apart the night before close. It fell apart because of several reasons: The biggest being that our realtor made an agreement with the buyers (who we found out at the last minute that she was also representing) that we the sellers would pay all closing costs and a portion of their down payment, and give them a carpet allowance. She also prepared the contract for $4000 above the listing price because the buyers needed extra $ to help them with the down pymt. We did not make this agreement with anyone and were surprised and taken aback when the night before close the closing attorney told us that we needed to come to close with a certified check for about $9000.00. We also found out that the ammendment stating that we would pay these costs was signed, with my husbands name, by someone other than my husband or I (in other words it was forged) Our realtor is not returning calls or msgs since that night (and neither is the broker), and I have no idea if the buyers were even informed about closing not taking place or why. Do we have a case for some legal ramifications? Can the buyer sue us for not going thru with the sale? Can the realtor sue us for her commission anyway? Can we get out of the purchase contract (a new one was drafted, and our realtor never had us sign it). Please help me determine if there is anything we can do besides filing a complaint with the Board of Realtors. I really feel that there should be damages awarded.... to us and the buyer - its not their fault either, as I'm sure our realtor was being deceitful to them as well by telling them that we agreed to pay all those fees for them. Patty, Georgia USA |
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I recently purchased a Condo.When we viewed the Condo on an Open House and Revisited before our offer went in we did not see any Pet Stains however after Taking possession we found pet stains everywhere. We are looking at going to Small Claims Court.Have you heard of any other instances of this sort? Terry, Winnipeg |
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If someone builds a house on some else's land, could they legally get a deed just for the house? Brenda, Virginia |
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Our home is in my husband name. We have been married for 10 years. We want to put my name on aor home. How do I quick deed the home so it can be in both our names? Eula, Michigan |
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If I want to add my name to the deed for the house that my son owns free and clear. What form do we use? And can I get this form online. Mary-Lou, Arizona |
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We are planning on purchasing a condo that our son will live in for about 2 years before he graduates medical school. Is it better to have him on the title initially or to do this upon transfer with a quit claim after graduation. I was thinking it would be best to wait until the later date as the appreciated basis would be higher for him. Please advise. Pam. Clifton VA |
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Everyday I pass a huge boarded up house and am interested in buying and making renovations. There is no house/lot number. How do I get information on finding out ownership status? Jaiede, Harrisburg PA |
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I discovered that a quit claim was filed on my property; however I never signed my house over to the person who has the claim. My signature had to be forged, what can I do. Frankeeta, Detroit |
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My sister refinanced her house allowing her roommate to have her name on the deed in agreement that the roommate was to help fix the house up, which she has not done. Is this arrangement legally binding, or what options does my sister have to get her friend off of the deed? Tane, Mobile Alabama |
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I am selling my house and have already signed a contract, is the contract legal and binding if the property address is incorrect on it? Kristi, Maryland |
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I was wondering if you knew the answer to my situation. I was widowed last year and my daughter moved home with her 5 children. I decided to buy a house that would accomodate all of us. I put my own house on the market and purchased this home. I added my daughter's name to the deed and the mortgage. I then put an additional $40,000 into renovations. The situation didn't work out well and I want to sell the house so we can part ways. She isn't willing to buy me out (which would have been fair since I am the one who has put all moneys in to date). Do I need to get a lawyer to sell at this point or can I just put the house on the market and split the proceeds with her. John. Cambridge ON |
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We were under contract to buy a home if our home sold. There was a person ready to by our house,he made an offer and we accepted. We found a home and made a contingency offer, that we would purchase if our home sold. Well, the person that wanted our home, has backed out of the deal, stating that he didn't get a good interest rate and now can't afford the house. Because we went ahead and accepted his offer, we made a full offer (no contingency) on the house we wished to purchase. Since he has backed out of our offer, we went ahead with our offer. We will have to back out of our offer now, could the owners of the house sue us? Angela, NC |
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My husband is trying to sell land in Florida that he acquired when his grandmother & father passed away. The Deed was in their names & he can't seem to locate it. How would he go about getting a copy of the Deed & transferring it to his name? Robyn, New York |
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I'm buying a home and the mortgage papers came in late. I'm wondering what happens when the deal is not closed on the closing date? Who pays the interest and how much would it be? Is there a way the lawyer can get me in on the closing date, and is there a fee for that? Misty, Slave Lake AB |
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Can two people buy one duplex? If so, how can the property be "divided?" Cary, Austin Tx |
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How is an attic divided in a shared freehold if it is only accessible via the top flat and has nothing in it that supplies the flats below? Hilary, Dorset UK |
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I bought a business for $40,000 without a financing condition. Now (after closing date) the deal is falling apart because I dont have the money. Can you please tell me what the Seller can sue me for. Masha, Toronto |
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We have a contract on a home advertised for 2600 sq. ft for 325,000 in North Carolina where other similar properties have sold for 122.14 a sq. ft. When we recieved the appraisal they only found 2340 sq. ft. From day one they misrepresented the square feet and we feel that it would only be fair to multiply 2340 by 124 a sq. ft. and offer then close to 295,000 for this home. We are taking into consideration location and updates. Do we have a legel case with the realty board because of the obvious misrepresentation of sq. ft. and if the deal falls through because of it could reatlors be laible for any of our incurred expenses like storage, and living in a hotel expenses because we have everything planned already for a July 28 closing. Or could they be liable for the difference between the last buyers offer of 315,000 and our appraisal offer. Claudia, Hartford CT |
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I have recently purchased a home, and I'm preparing to move, but my landlord is still trying to hold me to my rental agreement and force me to continue to pay rent on the property that I'm moving from. Is that legal? Tonja, Jackson MS |
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I have accepted an offer to purchase my home. The subjects have all been removed and the deposit is in trust. My wife is getting cold feet about moving. What will happen if we break the sales contract? Keith, BC Canada |
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I've been married for 8 years and have 2 children. My name is not on the mortgage or deed to our home and my husband feels its not necessary because we have a will. My family says will or no will my name should be on the deed. I know my husband had troubles in his prior divorce dealing with these matters and perhaps he doesn't want to be bothered with adding my name but if it's important I want my name added and want to be able to explain why it's important. I really appreciate any advice you can offer. Many thanks Kristi in New Jersey |
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My mother passed away some time ago and now I need to assume her reverse mortgage. Do I require the original deed to the house to transfer to my name? My mother was not a very good record keeper and I can not find the deed anywhere! Where would I get a copy of the deed...who deals with this sort of thing? Michelle, St Catherines |
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MY BROTHER IS ON THE DEED TO MY HOUSE. THIS PAST NOVEMBER 2004 HE SHOWED UP AT 2:30 IN THE MORNING---HE IS RUNNING FROM THE LAW AND KNEW THAT I WAS LOOKING FOR HIM TO SIGN A QUIT CLAIM DEED. I HAD TWO POLICE OFFICERS WITNESS HIS SIGNATURE ON THE QUIT CLAIM DEED. HE WAS HERE LESS THAN 20 MINUTES AND AGAIN ON THE RUN. I HAVE NO IDEA WHERE HE IS. CAN I BRING THIS TO THE STATE RECORDER TO HAVE HIS NAME REMOVED FROM THE DEED? WILL IT HAVE TO BE NOTARIZED EVEN UNDER THE CIRCUMSTANCES? I HAVE BEEN TOLD THAT I CANNOT USE THIS EVEN WITH THE TWO WITNESS SIGNATURES BECAUSE IT WAS NOT SIGNED IN FRONT OF A NOTARY. IS THIS TRUE? IF IT IS--HOW CAN I GET HIM OFF OF THE DEED? Laura, Tennessee |
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My husband co-owns a 2 family house with his brother. My husband and I want to sell the house and and have both families make the profit and go our seperate ways, but his brother and his wife may want to buy us out. Which option would be more beneficial for us? Thank you. Kym, New York |
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If my parents have passed away how can I get the house signed into my name inexpensively? I'm an only child, a single mother & I don't want to lose our house. I have little money & can't really afford to get a lawyer. I don't know where to turn or what my options are. Can you give me any insight? Aimee |
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My mother passed away in Feb 2005. I was willed the cottage. What do I need to do at this point? I would like to keep the cottage and the property but I am clueless as what my next step is.. Tamara |
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i want to purchase my mothers home. She says we need to go through a lawyer. What would closing fees be like? |
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Thank you so much, Bill. I pay the mortgage, had my home refinanced a couple of years ago. How can I get a "quick claim deed" so that I may place my daughter on the deed? I know you are in Canada; however, you seem to be very bright re this subject. As is said, I live in Tampa, where we have many "snowbirds", people who come to Florida for the winter. I thank you, and would appreciate any info re this matter. Which is the cheapest way to do this, Bill? Love and prayers, Pat. |
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Deals/ Listing Contracts and Offers/Agreements to Buy and Sell, or Share |
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My brother is selling a home in CT. The original selling price was 389k and dropped to 349k and then to 300k. He is now being told that it is his responsiblitiy to by his realtor that the buyer expects him to do some minor things i.e. spray for carpenter ants and termites. I told him his contract was "as is" and he should not have to do anything else after dropping his price 89k. Please advise me if there is any CT law that requires him to do this.Stephanie, Connecticut |
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I bought a house with a closing date of August 01st. Late that day, my lawyer informed me that the owners had a lien on the house and wanted an extension for the possession date. I agreed. The extension date came and went and my lawyer then informed me that there were several liens on the house. Now, I want to withdraw the agreement. I don't think my lawyer did the necessary background checks on the owners. Do I still have to pay all the legal fees? Can I ask for some compensation from the owners? Sam, Ottawa |
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I own 25% of one acre of land and want to sell my share.What do i do to sell it without a realtor. do i have to get a surveyor first? Marlene, Charlston |
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I am in the process of buying a home that is for sale by owner and I am having trouble filling out the purchase agreement. If you may have a sample agreement that I could see would be greatly appreciated. Jason, Hammond, La. |
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I had the buyer for my house back out the day she was suppose to pick up the keys. She signed agreement 3 months earlier. I was in the middle of a divorce so the sale was crucial as I could no longer afford the mortgage. The bank agreed to hold off taking the home because we sent all the paperwork that the house was sold, the knew they would get their money. When she backed out, the bank took over we now had more fees than imagined I lost about 30,000. Is there any thing I can do to recover what I lost? Dawn, Oshawa |
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My real estate agent contract expired 31-jan 08. In my contract is said after it expires 30 days period if someone comes to buy the house my realitor will be able to claim the commission. Please give me add vice. After the 30 days can I sell my house with out paying the commisson. Marie, Virginia |
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I bought a house last week. The sellers have 14 days to get their belongings out. Do I own the house? I have a key. Can I go into the house and begin a painting project? I have insurance on the new home, the utilities have been switched over to me also. Donna, Donalsonville, GA |
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Is the holdover period in a listing agreement negotiable? Looking over a couple of old listing agreements we see one at 120 days and one at 90 days. We also read an opinion by a real estate lawyer that anything over 30 days was excessive. Do you have any information on this? Jean, somewhere in Ontario |
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Our real estate listing has expired...how long do we have to wait to sell privately? Grace, Comber, Ont |
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My wife and I just moved into our new house and have found that the previous owners have left everything behind. We were informed they were coming to get it the day after we moved and that never happened. We were then told that they would make arrangements the next day and again, that never happened. How long must we keep there possessions before we can discard them? Mike, Oshawa |
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My wife and I recently bought a home (before listing and selling ours). Our home is on the market now, but we have had no offers. We were approved for the financing, but all of my equity is tied into my existing home. I am worried I won't be able to sell before the closing date. What happens if we do not sell by that date. We really want the new house, and hope we can sell in time. In case we don't what can we do?/ What will we be liable for??? Vince in Vaughan |
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I recently closed on the sale of my home and the Purchasers are complaining that we took the central vacuum unit and hose. Even though the CVAC was listed on the listing agreement I'm aware that is only advertising. The Purchaser's real estate agent did not include the CVAC in the agreement of purchase and sale. They were specific to include the garage door opener and two controls and the CAC with equipment but not the vacuum. I assumed since they did not include it AP&S it was mine to take. Can they sue me for it. Lisa, Toronto |
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If a home has central air and it is put in the offer to purchase that the air conditioner will not be sold with the house, can the central air be removed? Also is it law to have a house inspection done? Thanks, Barry, Pickering |
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My sister signed a purchase agreement and for some reason agreed to cross out a clause which allows her deposit to be refunded if the mortgage did't go thru. Now the closing date is tomorrow and she is short on the down-payment. Is her deposit forfeited? it is quite a large amount,$40,000.She said there were lots of bidders so to outbid she placed a large deposit.Pls give us some advice. Meaghan, Toronto |
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(Abridged email:) My wife and I sold our home. A couple of days after the home inspection the buyer says he not able to follow through with the purchase of our home due to the fact that his mortgage company , who approved him 2-3 weeks earlier, said that a Tax Lien came up on his most recent credit report and they are not able to approve his loan anymore. We lost 5-6 weeks with our house off the market which now we are going to incur extra cost do to this. Did I mention that we bought a house with a settlement date most likely going to come before we can now sell our home. Now with my question, the buyer put down a $5000.00 deposit at time of signing contract. The buyer is now demanding we sign off of his deposit so he can get his $5,000.00 back. All this said I dont belive I will be signing off on anything soon, I believe we are entitled to keeping his deposit, the only problem is he wont sign off ether. How does one go about forcing him to release funds to us. The letter from the Mortgage co was signed by the President of the Mortgage Company. We have found out that the President of the Mortgage Co. is a bussiness associate of the buyer. Now we think the Pres forged a document to get his associate/freind out of this contract. Brian and Valerie, Delaware |
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Does the buyer or the seller pay for surveying the land in Illinois. Mark, Princeton IL |
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I made an offer on a house with conditions of home and EFIS (:Exterior Finish and Insulation Systems or EIFS: Exterior Insulation and Finish Systems) inspections. The closing should have taken place on May 31st. Repairs to EFIS had not been done and closing was delayed, the seller refused to let me out of the deal. Final inspection came back two weeks after closing should have happen and conditions of addendum had not been met. I signed a release which included the signature of my broker. The seller signed in the wrong place and her broker "cannot be found" for a signature. It is now 18 days after closing should have happened and three days after I signed the release. I would like to make an offer on another home. How long can the broker legally make me wait for their signature to release me from this deal? Heather, Richmond, VA, USA |
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I would like to know the process of closing on a house after the due date has passed. I had sold my house, went to hand in the keys and sign all documents to close only to find nobody knew where the buyer was. How far in advance should the buyer be in with the lawyer and sales agent with the mortgage papers all signed and ready to go. The day before closing our lawyer told us the buyer was not his client but the real estate agent told us he was his lawyer. Shouldn't all papers mortgage arrangements and agreements been signed long before the closing date. Now we are being pretty well ignored I woke up the other morning to see that my house had another for sale sign on it and nobody had spoke to us on how we wanted to handle this. (portion of email omitted) This buyer (apparently) went to Ireland to see a sick brother is what we were told. But he works here. Aren't the agent lawyer somebody suppose to do something to track him down because the lawyer says he's on hook legally but have said nothing else to us. (portion of email omitted.) Whose job is it to make sure the paperwork was signed before the closing date as we were given instructions on what we had to do on our end 3 weeks before closing (portion of email omitted.) Helen, Bowmanville ON |
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I have purchased a home on condition of selling my home. Its only been a week on the market and have had two showings. What if I change my mind and dont want to sell? I am in a stressful situation in my personal life and have realized this is not the right time for a move, can I get out of my listing and offer without any legal action against me? Angela, Barrie |
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I listed my house with a broker, but I have found a buyer on my own. Do I have to pay the the realtor all of the commission amount? Sharon, Apex NC |
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How long; or can you cancel an agreement of sale if you were told by your agent that there is no GST on your house and then they sent a coworker to close the deal. I noticed after we had signed that the buyer wanted the GST included. If the GST is included, then I will lose a lot of money. How can I deal with this? The buyer has until the 3rd of April to back out. Thankyou, Tanya, Deseronto |
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We accepted an offer to purchase on our home with 10 banking days to waive condition to financing and home inspection. The first deposit cheque they left went NSF. Does this nullify the offer? We have little confidence in this buyer and would prefer to avoid dealing with them as a result of the fact that we anticipate nothing but problems. Lisa, Wallaceburg |
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My wife and I bought a new (off the plan) house in Fall of 2006. We of course need to sell our house that we have been living in for 7 years. I have had a real estate agent make an offer on my house. Her intentions with the property are to rent it out at first and perhaps relist on the market. On the offer she presented, beside GST, there are two choices to type in "included in" or "in addition to". Right now it reads "included in". If I were to sign on the dotted line, would I be facing GST charges on this transaction? My fear is that because she wants to use it for profit, that wording would come back to haunt me. Am I wrong to think this way, is it ok to leave the wording as is? Is the Gst applicable or not in this case? Mark, Toronto |
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What happens if a person cannot come up with the downpayment on the specified date? Our offer has been accepted on a house but we are having more trouble than anticipated arranging the money for the downpayment. We have until the 15th of April to come up with it. Our mortgage has been approved providing we have this money and the bank has told us by May 2 we will have 7 percent of the mortgage back. Jennifer, Ont |
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When property is sold in the middle of the year, who is responsible for paying the land taxes? the previous or the new owner? Jacob, Williamsport, Tn |
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My friend and his brother co-own a house together.one of them lives in the house while the other is with his wive in another house.the problem/question is the one who lives with his wive wants to sell the house while the other does not.the one with a wive is threating to get a lawyer to force the other to sell.is this possible?what are the laws governing this situation?can you help with some advice on the current problem between the fueding brothers? Jim, Calgary |
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My wife and I went to view a property and by the time we wanted to put in an offer (that afternoon) our agent checked and told us that one was already sent that morning.Eventualy it was accepted (two days later) conditional on financing. Question is, can't we offer our offer?It seems unfair that we cannot even put in our own offer? Is there some sort of rule that once an offer was submitted they all have to be submitted at the same time? Paul, Mississauga |
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What is a dry closing? Laquita, Lafayette, LA |
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I need a clarification on property rights.... I jointly own a cottage property (8 acres) with my brother. We are stalemated on the property, neither wants to sell or agree on any changes. There is no joint ownership agreement. I wish to place a small sauna on the property, it is a package that requires no foundation or building permit (<10 sq. meters) and can be easily removed. Do I have to have my brother's permission to place this personal property on the cottage land? I do not intend to place it where it would interfere with any travel on, or use of, the property? David, Thunder Bay |
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I've put my house up for sale, it's only been on the market for 30 days and I've decided not to sell it. I listed my house through a real estate agent. I'm wondering if there's any way to break the contract and will I get charged for breaking the contract of 90 days with my real estate agent. Michelle, Oshawa |
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Great website! In September '06, I called a listing agent to view a property he had listed on MLS. He would not show me the property unless I signed a Buyer Agency Agreement with him. The OREA contract was for a residential property in Toronto that expired in 48 hours. However, under the holdover section of the contract, the term listed was for 90 days. The commission stated as per MLS listed. So this is my question: Can I sign another buyer agency agreement with another real estate agent/ broker? Can I purchase a property using another agent (not the one I viewed)? If I do so, do I owe the first agent commission? Does signing a new buyer agency agreement void the first one? The first agent's high-pressure tactics totally turned me off, and I've found a great agent I'd want to sign a new contract with. Anna, Ontario |
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Very informative site, my question: I made an offer to purchase land in Alberta for 68,000.00. My realtor called and advised that the sellers had countered with 72,000.00 firm. We agreed to this ammount, signed the papers and celebrated. The next day our realtor called to say that the sellers had recieved multiple offers and we had to come up with our very best offer immediatley. We said that we had thought we had in fact already purchased the property. The realtor said that our offer was notbinding as the sellers had not signed it. (We thought we were acepting the sellers counter offer to our initial offer). We panicked and said we woulf offer 80,000.00 this was accepted by the seller. This realtor works in the same office as the sellers realtor, when we had calmed down we called and asked why the papers had not been presented the day we signed them, when did these counter offers come in, and could we have verification of the counter offers. We were told that they do not have to provide verification of the other offers, we said we did not want the purchasers name or ammounts or anything, just verification by the other realtors, we were told this was never done. It is a hot real estate market and multiple offers happen all the time. We think it is funny that the agent could get back to us with the sellers "firm " counter offer immediatley but could not bother gettng the deal the sellers wanted to them the day we signed it - in such a hot real estate market, but over the next 12 hours they ended up with multiple offers. We would like to investigate this further, how do we go about this? Is the counter offer by the sellers not binding in any way? D. Edmonton |
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What is an unconditional sale? If I put an "unconditional" offer to buy a house and my offer is accepted, can I walk away? Actually, I just brought a house with a agent. When we prepare the offer, the agent suggested me to put an unconditional offer. I told him I don't know what is an unconditional offer and why we put such an offer. He just explained this will make our offer stronger. The offer was accepted. And now the problem is, I called him to arrange a time with the buyer side to let my electritian to estimate the electrical panel and electric wire, so that my electritian can apply to the city authority (Ottawa Hydro)for the approval(permit) to change the electrical panel and some wire work(I know this should be done because I had the home inspection before putting the offer). But the agent now just don't call me back to tell me if he arranged the time or not. I have been waiting for his call for about 10 days. I lost my patient. Can you give some adive? Can I walk away from uncontional sale agreement? Shu, Ottawa ON |
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We have made an offer to purchase and now for various reasons do not want the house. Can we get out of the deal? We have conditions to be met such as the sale of our house by Sept 21st and a satisfactory home inspection on the new house. Anything we can do before not meeting our conditions? Kim, Winnipeg |
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Once an offer to purchase is accepted on a private sale is there any way the seller can get out of it? Ms Johnston, Edmonton |
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In a Buyer Agency Agreement it says that the holdover period is 90 days. We have to consider those days as business days or just 3 months? Alejandro, Toronto |
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I'm trying to find out if I have a case. We sold our house, but the closing didn't happen and the sale fell apart the night before close. It fell apart because of several reasons: The biggest being that our realtor made an agreement with the buyers (who we found out at the last minute that she was also representing) that we the sellers would pay all closing costs and a portion of their down payment, and give them a carpet allowance. She also prepared the contract for $4000 above the listing price because the buyers needed extra $ to help them with the down pymt. We did not make this agreement with anyone and were surprised and taken aback when the night before close the closing attorney told us that we needed to come to close with a certified check for about $9000.00. We also found out that the ammendment stating that we would pay these costs was signed, with my husbands name, by someone other than my husband or I (in other words it was forged) Our realtor is not returning calls or msgs since that night (and neither is the broker), and I have no idea if the buyers were even informed about closing not taking place or why. Do we have a case for some legal ramifications? Can the buyer sue us for not going thru with the sale? Can the realtor sue us for her commission anyway? Can we get out of the purchase contract (a new one was drafted, and our realtor never had us sign it). Please help me determine if there is anything we can do besides filing a complaint with the Board of Realtors. I really feel that there should be damages awarded.... to us and the buyer - its not their fault either, as I'm sure our realtor was being deceitful to them as well by telling them that we agreed to pay all those fees for them. Patty, Georgia USA |
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I have a problem with the closing date and have requested for an extension of 15 days, which the buyer and his agent are not agreeing to. Hence, I wish to get out of this agreement to sell. What are the consequences of breaking an agreement to sell? Bob, Toronto |
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I was shown a townhouse in Montreal, Quebec about 2 months ago by a real estate agent. The price was too high for my budget, so I told her and the owner (who happened to be home at the time of my visit) that I was not interested. I happened to run into the owner a couple of days ago in the street, and he remembered me and told me that his contract expired last week and that he would be willing to significantly lower the price for me. My questions are: is the seller legally allowed to sell me a house that was shown to me by the real estate agent while the contract was active? How soon after the contract expires is the seller allowed to sell the house on his own, even to people who saw the house through the previous real estate agent? The seller does not appear to be aware of certain laws, and I wouldn't want him to lower the price, only to be contacted by the previous agent to pay him the commission (thus further increasing his out-of-pocket amount). Please advise. Christina, Montreal. |
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I recently purchased a Condo.When we viewed the Condo on an Open House and Revisited before our offer went in we did not see any Pet Stains however after Taking possession we found pet stains everywhere. We are looking at going to Small Claims Court.Have you heard of any other instances of this sort? Terry, Winnipeg |
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There is a house that I had looked at and decided to put an offer on, but when I called to talk to my real estate agent about it, someone else had put an offer in. I was told it appears that the offer/contract is solid. Is there anyway of this property still being available to me? I know that if the seller or the buyer backs out the house will go back up for sale, but i guess I am wondering if the contract means that unless someone backs out there is no chance of me getting this property. This is a dream house of mine and I would do anything for it. Anonymous |
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We have made an offer to purchase a house - the offer was accepted. The home inspection showed issues with galvanized plumbing and knob and tube wiring still being present in the house. We amended our offer with the condition that the galvanized plumbing and the knob and tube be removed prior to closing and we also requested a signed statement from licensed electrician and plumber be submitted to us before closing. We completed the home inspection today - galvanized plumbing still present and we are unsure of knob and tube. vendors have provided a statement from themselves stating knob and tube and plumbing have been removed. We are very uneasy about closing on this deal. we would like to cancel the deal. How can we do this without being sued? Allee, St Catherines ON |
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When buying a home through a private sale,what are the steps after the offer is made and agreed upon? Do I make a written agreement with the seller; stating price, contingencies, and closing date, also subject to financing? Then take this agreement to a lawyer/notary? Do I need to give a deposit cheque to the seller?and why? I know inspections are needed. When do I go to the bank to start the paperwork? I've already been preapproved. I just need to know what needs to be done and the purposes behind them on a private sale. It's a little confusing! Thank you |
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If we have a contract on our home but it is contingent on the buyer selling her home- after 30 days of waiting and no movement on her part- can we take another offer with a fixed date of closing? we have no date in the first offer in writing. Edward, Suffolk VA |
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We placed an offer on a home. There was already an offer on it, but the other buyers had to sell their house. On May 1 at 11 am, we remove all of our conditions, so it is now a firm offer. The first people get 48 hours to either remove their conditons or they lose it. The people who own the house that we bid on are separated, and they could only give the husband our firm offer, they said they had to wait a day to get a hold of the wife, and therefore it would be 72 hrs. Is this right? Why should the first offer get another whole day to sell their house? I thought as long as one of the parties were notified, then the 48 hours would begin. We are afraid the extra day will make us lose the house of our dreams !! Janice, Warkworth |
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Question regarding multiple offers which is getting more and more common in today's market. And it's very frustrating for the buyers. As a buyer, we have to reply on the agent of the seller to tell us how many potential buyers have registerested offers. In the case when offers are asked to be faxed in, we have no way to confirm if the number of offers that the agent claims is true, which could greatly affect how much we would bit on the property. Can we trust the seller's agent? Is it a serious professional misconduct for the seller's agent to make up the number of registered offers in an attempt to get a higher offer from a serious buyer? Thanks, Hong, Scarborough |
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Am I legally required to accept an offer if it is at or close to my list price? Judy, Ontario |
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We sold our house. We are still waiting for the buyer to get the mortgage approved from the bank. When we signed the counter offer, our real estate agent advised us not to put the clause on condition, if we do not find another place it will be cancelled. Our problem is, we can not find anything. Is there a way of getting out of the sell? We should have looked before signing, but she said we will find something. We have not. Hazel, LaValle PQ |
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If two couples want to buy a duplex that is being sold for 1,100,00.00, is there a way for each couple to apply for a seperate mortgage for each unit? If so, when one unit is three bedrooms, 2.5 baths and the other is two bedrooms, two baths, how do you figure out the percentage of each mortgage? However, if the answer is that both couples have to go in on one mortgage, I assume amongst ourselves we would have to set up an account to make the payments and amongst ourselves we would have to figure out the percentage of responsibility. But, if the latter is the correct scenario, at the end of the year, how do the couples do their taxes, in regards to who gets to write off interest,etc.? Ana, San Carlos CA |
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Hi Bill, I recently put a bid on a house, and it was excepted. There was a mistake in the contract about the closing date which I have not intialed. Am I still binded to this contract even though they accepted the price but there is a mistake on the contract?Is there something else I must sign before the deal is concrete? Tom, Hamilton ON |
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I am selling my home and I am about to sign an agreement with a real estate agent. I've noticed in the OREA Form 200 a clause which seems to imply that I am required to pay the realtor's commission when my house sells, even if the transaction is not completed due to my default or neglect. What does this mean? I understand that this clause is set up to protect the agent from the possible scenario that the seller backs out of the signed 'Offer to Purchase' at the last minute. But, what if the deal doesn't close due to reasons the seller cannot control? i.e., What if a tree falls on my house before the closing date and I cannot afford repair the house in order to complete the transaction? Would this be considered my 'default' or 'neglect'? Am I still legally obligated to pay a commission to the realtor, even though the transaction falls through at the last minute? Should I put my own clause in the agreement that bars 'Acts of God'? Danielle, Brighton ON |
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How does the new home owner(me)get the old owners to give me the second garage controler and get them to co-operate with the city to make the property comply. Tina, LeDuc AB |
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My house is up for sale at the moment but I have already seen the house I want to buy. I am worried that someone will put in an offer before I sell my house. Is there a way in which i can buy the house I like before I sell mine ? M. Owen, Somewhere |
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I am selling my house and have already signed a contract, is the contract legal and binding if the property address is incorrect on it? Kristi, Maryland |
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We were under contract to buy a home if our home sold. There was a person ready to by our house,he made an offer and we accepted. We found a home and made a contingency offer, that we would purchase if our home sold. Well, the person that wanted our home, has backed out of the deal, stating that he didn't get a good interest rate and now can't afford the house. Because we went ahead and accepted his offer, we made a full offer (no contingency) on the house we wished to purchase. Since he has backed out of our offer, we went ahead with our offer. We will have to back out of our offer now, could the owners of the house sue us? Angela, NC |
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I sold my home subject to a building inspection. The inspection revealed some issues (house almost 100 yrs old) that has the purchaser wanting to renegotiate price. Actually I'm happy with the results of the inspection. Nonetheless,what is the time period involved here in Ontario where the purchaser either accepts the property as is, or walks away from the deal. I'D REALLY LIKE TO KNOW IF I'M MOVING OR NOT. Robert, Hawkesbury ON |
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My fiance bought a house with 2 of his buddies in Aug/04. We purchased a home in Sept/05 together. The agreement was that he would pay his 1/3 of the mortgage but would no longer be paying utilities since he no longer resided there. We have come to find out that the other two guys have moved someone in and are collecting rent even though it had been decided that this would not occur without being discussed. They do not want to have a rental agreement with the tenant so my boyfriend is now looking to sell the house but the other two can't afford to buy him out. He would like to force the sale of the house but we are unsure how he goes about doing so. There is a possibility that one of the other owner's father would like to be put on the house as an investment but all conversations between the 3 seem to break down. What are the steps that he needs to do in order to remove himself from the mortgage but still get what he's invested into the home? How difficult and expensive is it to force the sale of a jointly purchased home? Your help in this matter would be greatly appreciated as it has been much frustration for both of us. Thanks so much. Sheri, Brampton |
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I have had my house listed for several months. It came off the market about a month ago and we decided to put up a private sale sign. A couple that viewed the house while it was on the market now want to buy it. They had put in a previous offer but we had refused it as it was too low. Now they feel that there would be no real estate fees involved. What is the time limit we would have to wait to sell our house to this couple as a private sale. Thanks for you time. Lori, New Brunswick |
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How binding is an accepted agreement for sale and purchase? In particular, can the seller walk away from the deal without recourse? Or could the buyer walk without losing the deposit? Marc, Toronto |
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Hi, I am selling my home by For Sale By Owner. I have a signed agreement. Then some one made me a better offer . Is there a time limit to get out of the first deal. Do I have 48 - 72 hrs to change my mind? Does the buyer have the right to change his mind? Jeff Pittsburgh |
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My boyfriend and I have purchased a house from a local homebuilder. Our realtor was also involved so we had signed a contract with him and the homebuilder's contract. everything was finalized, financing, final acceptance. etc. However, now the homebuilder is saying that they are not going to approve it. Can they back out of a deal after they have given final acceptance to our offer? Personally I believe they are trying to back out because the same house is selling for $31,000 more than what we paid for it one month ago. Isn't a contact final? Rennelle, Grand Prairie AB |
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We have recently sold our home and have an accepted contract to purchase another home. Our closing was to be Aug.30, 2005. Just before 12:00 noon on Aug.30 I received a call from my agent saying we had a problem. My agent noticed that the home we had an offer on (subject to financing), had been edited and instead of the 1338 sq.ft the new MLS had it listed as 1255 sq.ft. Of course this was a cause for concern as we felt we were already paying top dollar for the property at 1338 sq. ft. We did get financing, no problem but now we have a problem with the fact that the seller's agent did not disclose this information in the a.m. We have advised our agent to advise the seller's agent we are no longer interested in the property at the asking price. It was only after the appraisal was completed the morning of Aug. 30th that the MLS magically changed to the smaller sq. footage. Again this information clearly known to the selling agent was not disclosed to our agent. Bill do we have any concerns with backing out of the deal and what recourse do we have as we now have till Oct. 14 to be out of our home???? Ken, Lethbridge Alberta |
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I'm buying a home and the mortgage papers came in late. I'm wondering what happens when the deal is not closed on the closing date? Who pays the interest and how much would it be? Is there a way the lawyer can get me in on the closing date, and is there a fee for that? Misty, Slave Lake AB |
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Can a real estate transaction in California be cancelled if the buyer does not perform in the specified period of time? The buyer has gone past the 30-days and is now at 60-days. The seller wishes to cancel and/or renegotiate the price since the value has gone up. Is that possible? Javier, Norwalk Ca |
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I sold my income property (in less than 3 days) and the buyer has not come up with the cash at closing. I've been very patient with the buyer (was told he was very experienced income investor) and have extended the closing date for another week in order for him to get financing. In the meantime, i'm in limbo. If the financing does not materialize, what are "reasonable" costs that i can recoup from the buyer. I sold the house in the peak time in a peak market and now i'd be lucky to get anywhere close to what he paid. Even if i got what he paid and collected on the deposit, listing and trying to sell again will be nothing but a headache. Trevor, Ottawa. |
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We are selling our house and have accepted a conditional offer. We have other parties interested as well. If an unconditional offer comes in and the first offer is put on notice do they have to match the competing offer or simply remove their conditions? Andrew, Ontario |
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What is a schedule "B"? Jeff, London ON |
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How valid is the following clause in the OREA agreement of Purchase and Sale? "The Seller warrants and represents that all electrical, pluming and mechanical components and any appliances included in the Purchase Price shall be in working order on closing" We just purchased a two-year old house, privately. We had a two hour walk through inspection done (which revealed some minor problems), we saw the house twice before closing - one month before and four days prior... we move in and discover the air conditioning (during a major heat wave) is not working. We call in a service and it's a major problem that just didn't "happen" and the repair will run us between $700-1300. What is the likely hood of us successfully having the owner uphold the above clause? Christina, Markham |
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I have accepted an offer to purchase my home. The subjects have all been removed and the deposit is in trust. My wife is getting cold feet about moving. What will happen if we break the sales contract? Keith, BC Canada |
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I sold my house in 2000 for $ 775,000. I had a real estate agent handle the sale. In the contract she put the closing date before the date on which the buyer had to get his financing. I had the problem of not knowing if I would have to move out on closing date or not. I realized this only a few days after signing the contract. I had the problem that I couldn't even buy another home because when I put the contingency "dependent on sale of my home" the other agent woulldn't accept. She was and is a very experienced agent. Was it legal to do what she did ? I still get nightmares when I think about the situation. Thanks in advance for your answer. Susanne, Casselberry Florida |
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If I list with a Realtor to sell my home, and it does not sell, am I, the Seller, held to the 120 period? If I decide to buy it if it's not sold (it's a divorce), does the holdover apply to me?I want to list and hope we will get a good price for our home, but if not, I might decide to buy my partner's interest. Thanks! Kim |
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What happens if the buyer does not close by the closing date on the sales contract? Sandra |
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We were in the middle of buying a home when the deal fell through if i already paid for the appraisal and that was coming off my closing cost do i get back my money? Susan |
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I sold my house quite unexpectedly. Someone knocked on the door. I had it on the market for one year and it did not sell due to unqualified agents and unqualified buyers. I took it off the market and the prices in the area skyrocketed. Therefore, this buyer and I made an agreement that is entirely too low. It is an elegant French Normandy 3 bdrms 2 baths with guest house over garage. I added central air and electrical rewire. I sold for $830,000. It should be $1 million according to comparables. I realize you are in a different area, however, escrows and cancellations should be similar. I want to cancel escrow which I have done with the escrow company, cc to buyer. He wants to still buy the house and I want to get out of it. What is going to happen to me other than specific performance. The escrow co. is not going to charge me, but buyer is pressuring me. What can I do? Donna LA California |
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I would like to know, when you are giving an offer on a house what amount of money you have to give with the offer.Thank you Alicia. |
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I do not live in Canada, and am in California and was reading your very informative information on your site. In reading through your material, it was stated that if you decide not to buy a house, that the money you put up initially should be returned to you. I put up $3,000 and I decided not to buy the house at the escrow stage. I was not offered my money back, but was sent a list of charges that used up all of the money and I was asked to sign the paper and return it to the escrow office. These charges were broken down in this manner: Escrow cancellation fees $1,000; NSF check fee $30.00; Federal Express $80.00. The Seller $1795. Should this money be divided this way or returned to me? Connie |
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When changing from a Realtor to Private Sale, how long do I have to wait to sell my house to someone who "has" and "has not" previously viewed my home? |
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I have a friend who, recently worked with a realtor to sell her house, which was basically forced by divorce. Said realtor, even after numerous requests to cease relaying information between my friend's ex-husband and my friend, continued to involve herself in "he said" "she said" conversations with my friend while they were still going through court hearings regarding said divorce. My question is, "Is this not unethical"? I am not inquiring to bring any legal action against the realtor, I am just appalled that the realtor continues to engage in such practices and it has caused a disagreement between my friend and me. I say it is unethical, she disagrees....Can you give me an answer? Whether it be your professional opinion or an actual (un)ethical realtor pratice does not matter.....Thanks for your time...Denise |
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My husband and I just purchased a home, and used a realtor- a buyers agent- to help us with the process. Our realtor ended up giving up part of his commission-$3000, to help us get the deal. Everything went fine, and now I want to know the protocal in thanking the realtor. I told him that I would give his name out to people we know who will be moving in the near future, and he told me not to tell everyone that he gave up part of his commission. From talking to people though, it seems that him giving up commission is not an uncommon thing, esp now that the market is so slow. How do I thank him appropriately? A thank you card? And am I allowed in it to say "thank you for giving up part of your commission"? Should I also send a small gift- like a gift card to a nice restaurant- and if so, for what amount? What is appropriate? Please advise me. Stacey, MD |
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My question is not about buying a home, I just want to ask if you know if a misdemeanor exempts a person for becoming a realtor? Petit Theft to be exact Jackie, Polk County FL |
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I've listed my house with an agent, two months ago.I've had only had one client.What do you thing the problem is? Paola, Manitoba |
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I have put my farm (100 acres) on sale a month ago.No one even came to look at it? Should I wory about that?? or is it common with the rural properties. Will I be able to sell it?? Please advise. BB, New Tecumseth, ON |
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We live in Michigan and purchased a home after being told the total taxes for village, township and county were $1,500 per year. Our loan was set up to include those in the monthly payment. Now 1 year later the mortgage Company is raising our payments by 33% to cover taxes.Our realtor forgot to file for Homestead Property Tax Credit and our taxes are now over $6,000 a year. Is our realtor responsible for seeing that the credit was applied at the closing? Can we hold her or the company she works for responsible for the credit not being filed properly, and recoup the difference in the taxes? Is it the realors job to file all the necessary paper work? Kevin, Marcellus, MI |
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I am in the process of buying a home that is for sale by owner and I am having trouble filling out the purchase agreement. If you may have a sample agreement that I could see would be greatly appreciated. Jason, Hammond, La. |
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I bought a home last summer and part of my contract was that it be in the same condition it was viewed in and that it be reasonably clean. When the previous owners moved out, they damaged the hardwood floors in 3 rooms in places that cannot be covered up. I have been told that as the floors have a coating on them to make them more durable, the boards cannot be filled and must be replaced. It has come to pass that I was told the flooring was readily available at a few wood flooring stores and it is not, it was actually purchased by the previous owners at auction. My realtor has been of NO help in dealing with this despite being alerted to the damage (as was the sellers agent) before we moved in. What is our recourse if we cannot get the same flooring? What is our real estate agent obliged to do for us? Lisa, Victoria, BC |
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Dear Bill, I am going to sell my house by myself. I plan to get a comparative market analysis from 2 realators and then ask about $10,000 less, in attempt to split the saving from the realator's commission between myself and the buyer. The house is about 50 yards from the ocean and has a great view, which some buyers may find desirable and underestimated in value by the market analysis. If I add the words, "or best offer" to my asking price, will it allow me to delay accepting an offer that meets my asking price? For example, if I ask $100,000 and get 3 offers for $100,000 on the first day, can I delay a week to see if I get a "best offer", which is more than my asking price? I want to avoid asking a very high price to start with, which may discourage buyers from viewing the house, but on the other hand I don't want to give it away because I misgauged what the house was worth because of the ocean view. Do you have any advice??? thanks Len, Kodiak Alaska |
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A friend recently made an offer to purchase a home... (Abbreviated) ...He thought he had purchased a home until the day he went to move he was told he didn't own a home because a lien holder was rejecting the sale of the property. Originally, he was told by his lawyer that a mortgage was showing on the house for $100,00 and the city had a registered lien for outstanding taxes and water services. At the time he was informed the taxes and lien holder would be paid by the monies that were being held in trust from the sale of the home. The day he was suppose to take possession he found out that the seller had re-mortgaged his assets six months earlier and the $100,000 that was registered as a loan was no longer owing, but rather as a result of the refinancing the seller owed a different finance company $183,000 that was a result of upgrades to several different properties. The company that refinanced the seller never dissolved the original $100,000 lien and failed to register a lien on the property until after the sale agreement. In fact, the lien was not registered until the day after he was to take possession of the home. These actions abandoned the deed transfer. Everybody involved appears to be at a loss and the realtors and lawyers are all saying they have never seen this before. He can't determine who could possibly be at fault , or even what to do next. The only response from lawyers is you better find a place to live. Here he stands homeless, a truck load of boxes and furniture. A house that is equipped with utilities in his name that now apparently he doesn't own. His first project was to gut the kitchen where he already spent thousands with contractors to start renovations. This situation certainly has taken the fun out of being a first time home owner. Do you have any suggestions on where to turn under these circumstances. Heather, Halifax |
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I put an offer for a property with a 5000.00 dollars deposit on 18 of september 2007 also get the house inspected at our cost.there was some minor repairs also i asked for proof of the new roof repair that was done in 2004 .its been 9 days now and our real estate rep hasnot got back to us whether the offer is good or not neither if they will fix or comply with my request for proof on roof.our rep been telling us he cant get hold of sellers rep.right now we think that we are getting screwed and we want our deposit back so we can look elsewhere(we do have a contract with our rep )please advise .we are nearly out of our mind right now. B. Brampton |
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Abridged email: My fiancé and I found a house we liked and we were told there was another offer on the house. We put our best offer in (a lot higher than we wanted to go). After accepting and doing some research, we discovered the 5-acre lot was not as potentially valuable as we expected and the house was positioned three miles from and directly in the flight path of a major commercial airport. Also, we had a home inspection that revealed a couple of issues (radon, bacteria in water, AC, pool filter leak). The seller's realtor said they would not fix anything because they had a full-price backup offer. We still put in our request for remedy asking for the items to be fixed, plus reduced our offer due to the land and flight path. They didn't accept our offer. Through the whole process, our realtor seemed to talk with the seller personally and would defend him and his house quite often. Since this deal fell through, I have not heard from her. The seller updated the status of the listing to active and within a week of our deal failing, the seller reduced his price. So, I assume there was never a backup offer either. I feel like both realtors have influenced us as well as the seller and in the end prevented the sale. Since we found out the house has radon, is the seller obligated to disclose this to future buyers (it is on the sellers discloser form)?Is the seller/realtor obligated to disclose the fact they are in the flight path? Was the seller's realtor legally able to mislead us with other false offers? As a buyer, is my realtor obligated to represent me? The listing also overstating the square footage. Would this be considered misrepresentation? |
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My questions; 1. IS A REALTOR REQUIRED TO INFORM A BUYER THAT LISTING PROPERTY IS IN THE FLOOD ZONE? 2. CHANCES THAT A REALTOR WILL ADVISE CLIENT THAT 'OFFER PRICE/BUYING PRICE'IS TOO HIGH FOR PROPERTY? Mar, Innisfil |
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I made an offer on a house with conditions of home and EFIS (:Exterior Finish and Insulation Systems or EIFS: Exterior Insulation and Finish Systems) inspections. The closing should have taken place on May 31st. Repairs to EFIS had not been done and closing was delayed, the seller refused to let me out of the deal. Final inspection came back two weeks after closing should have happen and conditions of addendum had not been met. I signed a release which included the signature of my broker. The seller signed in the wrong place and her broker "cannot be found" for a signature. It is now 18 days after closing should have happened and three days after I signed the release. I would like to make an offer on another home. How long can the broker legally make me wait for their signature to release me from this deal? Heather, Richmond, VA, USA |
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Why do we not see prices on for sale signs? Even when buying a car its nice to see a price in the window! People look at houses and figure its out of their price range and never bother.What's wrong with putting the price on the realty sign in the yard? Ken, Barrie |
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My wife and I went to view a property and by the time we wanted to put in an offer (that afternoon) our agent checked and told us that one was already sent that morning.Eventualy it was accepted (two days later) conditional on financing. Question is, can't we offer our offer?It seems unfair that we cannot even put in our own offer? Is there some sort of rule that once an offer was submitted they all have to be submitted at the same time? Paul, Mississauga |
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I purchase a house 12 months ago and have just discovered that details on the listing and feature sheet were wrong, dates of work done is way off, ie, told 2 parking pads, turns out only one legally and now have to pay to have soft landscaping put in. Told windows were 3 yrs old, turns out they are 20, roof 5 yrs, turns out to be 12, furnace 1 year, turns out to be 7. These were all written up on the listing. Did the seller's and his realtor lie, misrepresent, give false information. What are the realtor's obligations to check these facts before putting them in writing. is the realtor breaking the law, code of ethics, etc. This is gross misreprensation on his part. i am shocked. Should he not have asked the owners to show proof of the dates these things were done. can realtors just write anything they want to entice a sale and have no obligation to the buyer. Can u please give me some direction on this and what I should do. I relied on those facts being true when buying the house and would have gone a different route had I know it would cost me money to landscape, the city is really on my back about this and I have to comply even though I did not convert the pad and believed as informed in writing that the parking was legal and for two cars, I may have to put in new windows, and have less life on my roof and furnace. Is this a breach of contract. do i have any recourse. Please help. 1st time buyer. Anne. Toronto |
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Great website! In September '06, I called a listing agent to view a property he had listed on MLS. He would not show me the property unless I signed a Buyer Agency Agreement with him. The OREA contract was for a residential property in Toronto that expired in 48 hours. However, under the holdover section of the contract, the term listed was for 90 days. The commission stated as per MLS listed. So this is my question: Can I sign another buyer agency agreement with another real estate agent/ broker? Can I purchase a property using another agent (not the one I viewed)? If I do so, do I owe the first agent commission? Does signing a new buyer agency agreement void the first one? The first agent's high-pressure tactics totally turned me off, and I've found a great agent I'd want to sign a new contract with. Anna, Ontario |
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Very informative site, my question: I made an offer to purchase land in Alberta for 68,000.00. My realtor called and advised that the sellers had countered with 72,000.00 firm. We agreed to this ammount, signed the papers and celebrated. The next day our realtor called to say that the sellers had recieved multiple offers and we had to come up with our very best offer immediatley. We said that we had thought we had in fact already purchased the property. The realtor said that our offer was notbinding as the sellers had not signed it. (We thought we were acepting the sellers counter offer to our initial offer). We panicked and said we woulf offer 80,000.00 this was accepted by the seller. This realtor works in the same office as the sellers realtor, when we had calmed down we called and asked why the papers had not been presented the day we signed them, when did these counter offers come in, and could we have verification of the counter offers. We were told that they do not have to provide verification of the other offers, we said we did not want the purchasers name or ammounts or anything, just verification by the other realtors, we were told this was never done. It is a hot real estate market and multiple offers happen all the time. We think it is funny that the agent could get back to us with the sellers "firm " counter offer immediatley but could not bother gettng the deal the sellers wanted to them the day we signed it - in such a hot real estate market, but over the next 12 hours they ended up with multiple offers. We would like to investigate this further, how do we go about this? Is the counter offer by the sellers not binding in any way? D. Edmonton |
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Is there a way that a person can search concluded MLS listings to do their own Comparative Market Analysis? |
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I had a very low offer on my home. I countered with what I though was reasonable they again went too low. I then made a counter that I wasn't to happy about but they said yes we were in agreement then after about 1/2 hr the agent called back and reduced their offer. We said no we are not desperate and our home is in exellent condition. the next day our realtor said that he and his company would pay the different in what was offer and what we want. I am uncomfortable about this and of course the buyers said that this agent could also handle their house to sell. We are not happy about the selling price and not sure we should continue in the deal please advise is this normal. Helen, Weymouth MA |
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Sent As Feedback: I dont agree. 3 times we sold in high end east oakville, 3 times screwed. Very important life saving/changing industries dont make as much as you do for the little that you do. We are paying too much commission for your precious MLS. No real skill set except the ability to 'smoosh', talk slick and drive expensive cars. Britain has the right idea. You pay 1% for the MLS privilege and do the rest. I hope the Competition Bureau changes things. Someone needs to. If it was 1% from the begining you guys would either not have chosen the field or excepted it and work within the confines just like any other industry that people chose to work in. (No name or location provided.) |
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We have privately listed a house on the market which we have just fully renovated. The agent that we purchased it from called to say he had clients interested in seeing it once it was completed. When asked what the commission rate would be he said 6%. Now I understand all the tasks involved when selling through an agent. In our situation, we have not listed with anyone, there's no contract, no advertising, no open houses, etc. We have had 2 other agents offer us a listing at 4%, including 1 who quoted 2.5% if he sold our house without us listing with him. From a professional standpoint, shouldn't this first agent we bought from have sat us down right from the start and negotiated a commission rate then? We were up to our eyeteeth in work (it was a fixer-upper) so we really didn't focus on details of this nature at the time. This appears to be a win/lose situation for him and we do not feel in any way that our interests are being considered. We will be losing money on this property whether we sell through him at 6% at a higher listing cost or whether we sell ourselves at a lower cost. What are our obligations towards him? Ana, ON |
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We recently put an offer in on a house that was full asking price but with condition of sale of our house, our offer was bumped by a lower offer but firm..understandable. Now my agent offered to pay bridge financing payments if we went firm then listed our house she would cover the payments using her commission...she obviously has no doubt that our house will sell but could she state we have to accept any offer........we only hope to get a certain amount any lower we can not afford. I dont really know too much about this sort of thing, any advise you could give would be appreciated. Thanks. Kelly, Stoney Creek ON |
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I fired my realtor 2 months ago and another realtor contacted her to ask me to sell the house at a extremely low price, is she still entitled to a full commission afterwards? Terry, Sask |
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I'm trying to find out if I have a case. We sold our house, but the closing didn't happen and the sale fell apart the night before close. It fell apart because of several reasons: The biggest being that our realtor made an agreement with the buyers (who we found out at the last minute that she was also representing) that we the sellers would pay all closing costs and a portion of their down payment, and give them a carpet allowance. She also prepared the contract for $4000 above the listing price because the buyers needed extra $ to help them with the down pymt. We did not make this agreement with anyone and were surprised and taken aback when the night before close the closing attorney told us that we needed to come to close with a certified check for about $9000.00. We also found out that the ammendment stating that we would pay these costs was signed, with my husbands name, by someone other than my husband or I (in other words it was forged) Our realtor is not returning calls or msgs since that night (and neither is the broker), and I have no idea if the buyers were even informed about closing not taking place or why. Do we have a case for some legal ramifications? Can the buyer sue us for not going thru with the sale? Can the realtor sue us for her commission anyway? Can we get out of the purchase contract (a new one was drafted, and our realtor never had us sign it). Please help me determine if there is anything we can do besides filing a complaint with the Board of Realtors. I really feel that there should be damages awarded.... to us and the buyer - its not their fault either, as I'm sure our realtor was being deceitful to them as well by telling them that we agreed to pay all those fees for them. Patty, Georgia USA |
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What are the regulations for measuring square footage when listing your home in Niagara County NY? Also, if your house is on tiered land of sorts and your finished "basement" is on ground level at rear with walk-out sliding doors to patio can this be included as square footage? I would appreciate any info.....very confused? THANKS !! Janet, NY State |
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My husband and i are currently looking for a home in alberta,He has gotten a job there.I heard that it is very easy to buy a house through a mortgage broker,is this true?How do we go about this?Also,Do you have any names of brokers in the slave lake area?We were also going to see if we could get a foreclosed home.Is this a good idea?Is there a lot involved in buying a foreclosed home? Thank you. Lisa. Nova Scotia |
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We recently purchased a new home and have found that the Main Floor is approximately 850 ft2 less than what was advertised in the MLS Listing. Also, the house did not come with a Central Vacumum as advertised. What is the realtors responsibility in this case? The agent was acting as dual agent. Tanya, Peterborough ON |
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Can I fire my agent? Mark, Hamilton ON |
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We are selling our home privately and are faced with a dilemma belonging to a potential buyer. Hope you can clarfiy a few things. The potential buyer is not from the area and had contacted an agent in the area simply to make an offer on another home. That deal fell through (buyer got bumped) but the agent had them sign a 'buyers agent agreement' until Dec 31. The buyers were not aware of the ramifications of this agreement until now. They found our place on their own and have been to view our home 3 times now - making appointments directly with us. Now their agent is telling them that according to their agreement with her - she can collect 6 % commission if they buy our home. She has told them that she will "be nice" and cut that to 3 %. As I said - the agent has never been involved in introducing or showing our property and our home is not listed with MLS......does this agent have any claim to commission where she has done no work and has had no involvement? I know this isn't really our problem....but the potential buyers are asking us to consider lowering our price to compensate for them having to pay this commission......on the one hand we are willing to negotiate on price - on the other - we do not particulalry want to contribute to this agent's income! Gillian, Paris ON |
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I am buying a condo for the first time and it will be a lease with option to buy in one year. I will be putting 2 thousand down for my option now. and in a year, I will be buying it at a set price. my question is this...when a realator runs your credit report and stuff, does he have to pay 30 dollars out of pocket for them to run it? and it gets added to the closing costs? who pays seller? or buyer? I just want to know becuase my realator says I owe him 30 bucks for running my credit report. thanks Colleen, Pheonix AZ |
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What are the regulations concerning a seller paying closing costs on the sale of a single manufactured home in Texarkana, Texas? I feel we are being misrepesented in our contract by our agent. He is charging $1500 and seems to be working to get rid of our trailor 'very quickly' to a lady who is licensed the the TX Real Estate Commission and is a Principal of Texarkana Star Real Estate. What does this mean? Kelly, Sherrill, NY |
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We have a contract on a home advertised for 2600 sq. ft for 325,000 in North Carolina where other similar properties have sold for 122.14 a sq. ft. When we recieved the appraisal they only found 2340 sq. ft. From day one they misrepresented the square feet and we feel that it would only be fair to multiply 2340 by 124 a sq. ft. and offer then close to 295,000 for this home. We are taking into consideration location and updates. Do we have a legel case with the realty board because of the obvious misrepresentation of sq. ft. and if the deal falls through because of it could reatlors be laible for any of our incurred expenses like storage, and living in a hotel expenses because we have everything planned already for a July 28 closing. Or could they be liable for the difference between the last buyers offer of 315,000 and our appraisal offer. Claudia, Hartford CT |
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I sold my house in 2000 for $ 775,000. I had a real estate agent handle the sale. In the contract she put the closing date before the date on which the buyer had to get his financing. I had the problem of not knowing if I would have to move out on closing date or not. I realized this only a few days after signing the contract. I had the problem that I couldn't even buy another home because when I put the contingency "dependent on sale of my home" the other agent woulldn't accept. She was and is a very experienced agent. Was it legal to do what she did ? I still get nightmares when I think about the situation. Thanks in advance for your answer. Susanne, Casselberry Florida |
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Hi Bill. I wish I had found you before I listed my house! I had it on the market for 6 months. We listed it at the price I needed to pay for all of the upgrades I put in. It didn't sell at $550,000. I dropped the price to $500,000, then the buyers came in. I had several lowball offers that I wouldn't consider. The last offer was reasonable and my agent stopped all showings while the offer was on the table. One of the previous buyers came back with another offer, but my agent told them to hold off because there was an offer on the table. We eventually sold to that last offer for $20,000 off my asking price. Did we do the right thing? Garry, Oak Ridges |
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I own 5 acres of rural land in Tipton County, TN. I purchased this property in 1998 for $32,000. At the time of purchase this property was listed through a realtor who said this was a fair price. It was owner financed for 10 years with a balloon payment. We are now trying to sell the land for $36,000 and have been told that it only appraises for $26,700. The property was originally purchased in 1994 for $15,000 according to sales data now available to us. I feel the realtor misrepresented the value of this property to us. Can he be held accountable for any losses we incur in the sale of this property? If we do find a buyer can they get financing for more than the appraised value? Carol |
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How do I calculate the square footage of my two story home? Anonymous |
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My neighbour had a furnace oil leak and there was some contamination of my property. My property has now been remediated to "residential standards" but not pristine. In addition the neighbour's property has been partially remediated, however remaining high contamination is being managed through an underground ground water collection system connected to an oil seperator. Can you tell me how this will affect the sale value of my home. (Name withheld) |
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My partner and I bought a house last summer. During repairs to the foundation, the workers dug up several old oil tanks, hot water heaters, and a selection of other miscellaneous garbage next to the house. An old election sign amongst the garbage indicated that it was buried fairly recently and that the previous owners must have known about this waste. Had we been aware of this, we would have made the sale conditional on the removal of this garbage. Were they obligated to disclose this? Also, what recourse, if any, is left to us at this point? Jeff, St. John's |
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We sold our house on december 10th...buyer knows that we have water coming in basement which is partially not finish the house is about 100 years old..but we had someone look at the foundation and he made us an estimate which will cost about $23000 thousand to repair..my agent told me not to tell guy what should we do...he has only to the 17 december to have house inspect which he should be doing tomorrow...should we tell them and show them estimate |
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My wife and I just moved into our new house and have found that the previous owners have left everything behind. We were informed they were coming to get it the day after we moved and that never happened. We were then told that they would make arrangements the next day and again, that never happened. How long must we keep there possessions before we can discard them? Mike, Oshawa |
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I bought a house in Lindsay, Ontario 2 years ago. I was told by the owner (who lived there for 11 years) at that time there was one line of Knob and tube only. His brother's and him did alot of work on the house from setting up a shop in the basement to finishing the attic. He told this to his agents and my Real Estate Agent, it was verbal. Now I have just sold the house and had to get the whole house rewired after a home inspection, to my surprise there was more knob and tube then what was stated. My agent called the previous owner and he said that the second floor was all knob and tube. If I had known that the whole second floor was knob and tube I would not have purchased the property in the first place. I have replaced the knob and tube through the whole house basement to attic. Is there any recorse I can take? Or is it buyer beware. My agent is saying nothing was in writing which I understand but he gave false information to the agents in the first place. Lisa, Toronto |
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A friend of mine bought a home (3 months ago) & has just found out that there's a huge problem with the crawl space that makes the structure of the house unsafe & the house unfit for living. There's an opening from the top of the basement wall to where the first floor starts. That opening was covered with chipboard that has completely disintegrated with rot & ants have been coming into the house from there. This opening stretch through half of the front of the house. Thus, more critically, the wooden structure that support the front half part of the house have started to rot & the vertical struts have started to buckle (twist) under the weight. On the exterior side, soil completely covers the outer wall of the basement & that's where the ants have their nests (!) plus the whole area is located UNDER the large concrete front steps and is therefore not directly accessible. It was the exterminator who came to fumigate the ants who detected the whole thing. The inspector in his report had indicated that he had not been able to inspect the crawl space owing to boxes that had been put in front of that particular wall. On inspection, one finds that the plastic vapour barrier had been cut before & repasted with a red tape. It certainly looks as if the previous owner knew about the problem. Genevieve, Ottawa |
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If a home has central air and it is put in the offer to purchase that the air conditioner will not be sold with the house, can the central air be removed? Also is it law to have a house inspection done? Thanks, Barry, Pickering |
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Abridged email: My fiancé and I found a house we liked and we were told there was another offer on the house. We put our best offer in (a lot higher than we wanted to go). After accepting and doing some research, we discovered the 5-acre lot was not as potentially valuable as we expected and the house was positioned three miles from and directly in the flight path of a major commercial airport. Also, we had a home inspection that revealed a couple of issues (radon, bacteria in water, AC, pool filter leak). The seller's realtor said they would not fix anything because they had a full-price backup offer. We still put in our request for remedy asking for the items to be fixed, plus reduced our offer due to the land and flight path. They didn't accept our offer. Through the whole process, our realtor seemed to talk with the seller personally and would defend him and his house quite often. Since this deal fell through, I have not heard from her. The seller updated the status of the listing to active and within a week of our deal failing, the seller reduced his price. So, I assume there was never a backup offer either. I feel like both realtors have influenced us as well as the seller and in the end prevented the sale. Since we found out the house has radon, is the seller obligated to disclose this to future buyers (it is on the sellers discloser form)?Is the seller/realtor obligated to disclose the fact they are in the flight path? Was the seller's realtor legally able to mislead us with other false offers? As a buyer, is my realtor obligated to represent me? The listing also overstating the square footage. Would this be considered misrepresentation? |
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Hi Bill, I was wondering, if a property is condemned and repairs total more than fifty percent of the house's value new, does a disclosure statement have to be provided at sale when there is too much to disclose, and is there any case in which a disclosure statement could be skipped? Brad, Springfield, IL |
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I am selling my house and it is on a sandpoint well. We replaced the pressure tank in the fall of last year, and all of a sudden we had very little water. We called a local plumber who said the only remedy was to replace the well with a drilled one. My husband decided to do some research, and it turns out that the pump wasn't primed correctly. Now our water has returned to the way it was for the last 3 years. Thing is, it is a sandpoint well, and still is not as efficient as a drilled I am told. When filling up the bathtub, you sometimes have to turn off the water and let the pump catch up (about 5 minutes), then continue. But like I said, for my husband and I and our son and 2 dogs, we are used to it and have no problem. I filled out a SPIS statement saying that it was adequate water supply and worked well (pump and pressure tank are both less than a year old). Now, according to me it does. I am afraid that if the city dwellers who bought my house don't think so, they will turn around and come back at me. Do they have any recourse? My other concern is that it is a small community, and my neighbors saw the plumber working on our well last year. What if they tell them we have a plumber come and give us advice? Even though it was an installation issue? I will be the first to admit that the pressure isn't the best, but it has suited us just fine for the last 4 years.... Louise, Ottawa, ON |
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Bought my home in October, I didn't know the downstairs had a preexisting leakage problem, water leaking from ground through foundation. After 3days of rainfall one of my downstairs bedrooms flooded. This was not disclosed at closing. I'm getting the run around from realtor and seller. Mold is now growing in the room, and I haven't had the carpet removed that I had to pull up from the floor, to wet vac over 2 inches of water. My homeowners ins. stated the costs are not covered. What is my legal recourse? Chantal, Brooklyn Park, Mn. |
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We bought a house in East Vancouver a year ago. The owner had a certificate that no oil tank could noy be found and our inspector claimed that there was no indication however we have found a pipe bihnd the clothes dyer and one outside. It was not hard to find. Should I get a further inspection and if we do find one what is our position - is the pervious owner or inspector accountable? Jane, Vancouver |
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Hi Bill me and my husband are thinking about saleing our home next year. My question to you is when we brought the house there was evidence of water leakage in the basement. I told my husband that I would like to fix this problem before we sale. What do you thing? I don't want this to be someone else problem. Thanks Anne, CT |
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We purchased a house 3 years ago in Hillsdale.. The first rain we had the basement leaked. we phoned the previous owner and the admitted that they had a leak previously. They signed the real estate document that stated that they had no previous knowlegde of a leak or foundation problems. well we removed the drywall recently and found that the drywall had been removed and replaced and that the outside of the house had been patched and the problems hidden from our knowledge. Do we have recourse or what can we do, or who could you recommend. Mark, Hillsdale |
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On October 31st, 2006, my husband and I bought an older home and we bought it from people who had been living there for over 17 years. Prior to closing on the home, we had a home inspection and the real estate agent "representing US" was there. During the inspection, the home inspector noticed some signs of water damage on the walls in the basement. At the time, he noted that there was no water leaking but suggested that we ask the homeowners about this. We spoke with the real estate agent who said he would contact the homeowners. A few days later, he informed us that the homeowners had said that the water stains were from a hose leak. We ask him to confirm this because we were unsure. Again, the real estate agent contacted the homeowners and he told us that it was from a hose leak. We closed on the house. On December 1, 2006, there was a lot of rain and my husband was home. He found that the walls were letting in water like Niagara falls! I contacted the real estate agent and he stated that he would find out from the sellers. He did not reply so I contacted him again, this time asking for him to put in writing that we had asked about the leak. I did this because I was getting concerned because I realized that the real estate agent should have put a clause in the sale of the home stating that the owners said there was no leak (my lawyer had informed me of this). The real estate agent told me that he would send us a statement to this effect. Weeks later, we had still not heard from him, and he would not return our calls. I contacted the Broker for the firm and was told that they would not do anything because the deal was closed. We got three estimates for the repairs and our lawyer sent them to the old homeowner's lawyer. He did not receive a response. He sent them a final letter but still did not get a response and advised us to go to small claims court. The cost to repair the damage is close to $10,000 (which includes the lost rental income because we can't rent the basement with a leak). Further, had we known about the leak, we would have insisted that the price be dropped by $15,000 (as we had also discussed with our now completely absent real estate agent). We have been taken advantage of by these real estate agents and by the previous homeowners and we are quite upset by this. We don't have the funds to fix our basement as this is our first home and we are newlyweds. Can you help us? Laura, Mississauga |
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My husband and I purchased a 50 acre property with a 5 year old Cape Cod style on it. We had a professional home inspection done and everything was fine. We removed all conditions on the purchase as each one was found satisfactory. We have since been informed that this property was possibly used as a dump site and there is the possibility of contaminated soil. We did not request soil tests as the seller stated on the SPIS that there was no contaminated soil to the best of his knowledge. We have not yet taken possession. What do we do? This is our dream home that is turning into a nightmare! Ann, Peterborough |
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I purchase a house 12 months ago and have just discovered that details on the listing and feature sheet were wrong, dates of work done is way off, ie, told 2 parking pads, turns out only one legally and now have to pay to have soft landscaping put in. Told windows were 3 yrs old, turns out they are 20, roof 5 yrs, turns out to be 12, furnace 1 year, turns out to be 7. These were all written up on the listing. Did the seller's and his realtor lie, misrepresent, give false information. What are the realtor's obligations to check these facts before putting them in writing. is the realtor breaking the law, code of ethics, etc. This is gross misreprensation on his part. i am shocked. Should he not have asked the owners to show proof of the dates these things were done. can realtors just write anything they want to entice a sale and have no obligation to the buyer. Can u please give me some direction on this and what I should do. I relied on those facts being true when buying the house and would have gone a different route had I know it would cost me money to landscape, the city is really on my back about this and I have to comply even though I did not convert the pad and believed as informed in writing that the parking was legal and for two cars, I may have to put in new windows, and have less life on my roof and furnace. Is this a breach of contract. do i have any recourse. Please help. 1st time buyer. Anne. Toronto |
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If a house was purchased and an inspection performed then while doing some minor renovations in the first week of ownership, mold was found behind baseboards. what recourse does the new purchaser have. Also items were left behind to indicate some plants may have been grown in the house, like large halogen light bulbs etc. Is the previous owner liable for repairs or can the deal be reversed. Sandy, Ottawa |
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We have been to view a house which the seller's realtor advised us that there are 2 sump tanks on the property - one at the front of the house & one in the basement. Having previously lived in England and are not familiar with sump tanks, could you please confirm what they are for and whether this could indicate that there is a problem. Why would there be 2 tanks on one property? The basement appears to be a bit damp but has not been used by the current owner who has lived there for 12 years. The small back yard seems to be all moss rather than grass even though it is west facing - could this also indicate a problem. Chris, North Vancouver |
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My husband and I have been looking for a home in VA for about 3 yrs now, the house that we were looking for needed to have certain items, acerage, pond/lake low traffic area. Well after years of searching we finally found the house with everything that we have been looking for. We had a home inspection done a couple of days ago, and the inspector found a mild mold problem(mild) this put red flags up for me and my husband. We started the addendam process sellers will fix this or no they will not. They keep crossing out the mild mold issue. What should we do?? Carol- in Virginia |
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I purchased a home 2 years ago and the owners' did not disclose ponding in the front acerage. Neighbors will testify that the sellers knew of the ponding in the front and that it was due to broken field tiles. The sellers live in Arizona and the realtor doesn't know how to get a hold of them. I've tried white pages. com and the postoffice to no avail. Can I go against the realtor? I don't like the idea of doing that but I'm sure they can locate them if they try. Amber, OH |
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I'm currently having my home listed for sale. It is a newer home and still covered with 2-5-10 new home warranty. There is some honeycombing on the crawl space wall and water leaked through it but builder came back and patched it from both inside and outside and no problem was discovered since, even after extreame heavy rains. There is a question in the property disclosure statment "Are you aware of any water or moisture problem in the basement and crawl space?" Do I answer Yes or No? Do I need to disclose that even though problem has been fixed? Cherry, BC |
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I recently purchased a Condo.When we viewed the Condo on an Open House and Revisited before our offer went in we did not see any Pet Stains however after Taking possession we found pet stains everywhere. We are looking at going to Small Claims Court.Have you heard of any other instances of this sort? Terry, Winnipeg |
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We have made an offer to purchase a house - the offer was accepted. The home inspection showed issues with galvanized plumbing and knob and tube wiring still being present in the house. We amended our offer with the condition that the galvanized plumbing and the knob and tube be removed prior to closing and we also requested a signed statement from licensed electrician and plumber be submitted to us before closing. We completed the home inspection today - galvanized plumbing still present and we are unsure of knob and tube. vendors have provided a statement from themselves stating knob and tube and plumbing have been removed. We are very uneasy about closing on this deal. we would like to cancel the deal. How can we do this without being sued? Allee, St Catherines ON |
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My husband had purchased a house before we met. We have been married for 9 years and he passed away last year. I have been noticing small sink holes in our yard and around the foundation of our home. The house was built in 1854. Our garage used to be a blacksmith shop. I also noticed recently that there are metal pipes sticking out of the yard by the garage. I never noticed these before because my husband always did the yard work. Do I have to turn this in to someone? I am trying to remodel my home to sell it, but can I with these pipes here? HELP PLEASE! Fay, Wisconsin Dells |
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We have found an older home we like: a bungalo on a quiet street in Ottawa. But we are very nervous because the UFFI clause indicates the presence of UFFI in the house. The listing is accompanied by a test result indicating low emissions...we are not worried about heath problems. We realise that the UFFI scare never was anything but a scare nevertheless, we are nervous about resale values because of the stigma of a UFFI branded home. Your thoughts please.? |
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"Satisfactory home inspection" - what does this refer to? Can a buyer walk away from an agreement to purchase if an inspection report shows very few problems or the problems represent few dollars? Is the buyer obligated to share the information with the seller? Never having owned a home I find the phrase satisfactory home inspection extremely grey. Bill, Toronto |
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We purchased an older house to fix up at the time of sale both realtors sold the house as a 3 bedroom house. Now that we are starting the process of remodeling the health dept is saying it is only perked for a one bedroom home, so now we are stuck with a two room house bascially and cant get a permit for an addition. We are thinking of taking legal action because they have sold us a house with false information and told us the health dept had only one sheet of paper on the house when really our file with them is an inch and a half thick. What do we do? Kira, Virginia |
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I'm trying to sell a farm house, which I've gutted and rewired. This area is a good market, with excellect schools. How do I sell the house for someone to fix up? Missy, Tennessee |
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I have a question about vermiculite and asbestos. While looking for a house, we found one that we really like. However, the disclosure indicates that insulation has vermiculite which may contain asbestos. I have looked around web and found some info. However, I am not able to find much info on how such houses do at sale - If I bought the house and covered the rafters area in attic with plywood to cover the underlying vermiculite - will the propertybe treated as untouchable by potential future buyers. My real estate agent and her network do not seem to know much about this.I am specifically interested in remedials for this problem and marketability of this house in future. Many thanks for your help. Sanjay, Longmeadow Mass |
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My husband and I just took possession of our house two weeks ago. It is an older home and we knew there would be a few problems, but we are discovering issues every day and are beginning to wonder if we have been "had". It seems like there were things we should have been told. The shower leaked water into the basement on the first day! When the plumber came he ended up spending the entire day here because there were so many problems.The roof was warranted as a new and proper roof. But it leaks in several places. The sump pump output pipe froze after two days. (We currently have a hose runing up the stairs, through the kitchen and out the window!) And now as the thaw has begun it runs every three minutes or less!! What is most alarming is that as the snow melts we are finding areas of foundation at which the insulation is exposed, we can see it from outside...and there is debris all over the ground that leads us to believe there has been a house fire at some point!!! Lady bug infestation, unfinished window frames etc etc...There is more - but I think you get the point. Are we stuck - did the seller have an obligation to disclose these things? What do we do? Kate, Pembroke ON |
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I purchased a house about two years ago in Welland, ON. Aproximately 6 months after we moved in the spring came and so did the basement leak. The basement was clear of any signs of water damage and nothing was in the basement upon inspection. The basement looked immaculate. Part of my problem is we didnt invest in an inspector. The house looked to be in prestine condition, which it was aside from the now obvious basement. They applied fresh paint the floor and concrete block walls. After this mold quickly settled on the basement walls. The problem is with seepage at the footings. They must have done one heck of a clean up job. Our neighbors mentioned that the sellers were aware of the problem prior to the sale. Is the seller under any legal obligation to disclose this information during the course of the sale? Their real estate agent i believe to be a cousin of their's or a friend. My real estate agent who represented me in the sale felt bad and came around in the spring time. She paid for inspection to get a quote even though she was under no obligation. She is also willing to testify in court. Would my case hold up in small claims court as it has been 2 years since the purchase of the home? Is it really worth it to go to civil court? I am considering small claims where the limit is 10,000 to avoid costly legal representation where i would likely have to absorb 50 percent of all costs anyhow. Do you know how long this process usually takes to get your money in small claims? Any advice is more than appreciated. I understand i am going to have to partially swallow my pride and learn from my mistake but as i said any advice would be greatly appreciated. Jay, Welland ON |
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We recently purchased an acreage and our possession date was November 5th. When we arrived that day to move in, the previous owner had left many possessions. Since living here, there have been numerous individuals here taking things out of storage buildings and in the yard. Since the previous owners have been paid in full for this property, are we not entitled to everything that was left behind? Also the previous owner makes frequent trips out here, we have lived here a week and he has been here at least a dozen times, looking through things in the yard and buildings, we are desperate for some privacy and would like to enjoy our new home, what are our options? G Pitt, Sask |
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We sold our house, that was on 10ac, in Feb2004. Now the buyer is taking us to court because he says there was stuff buried in the woods on the property. We know nothing about any of this debris that he says is there. Does he have a case after all this time has elapsed? Nick, Bowmanville ON |
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I sold my home subject to a building inspection. The inspection revealed some issues (house almost 100 yrs old) that has the purchaser wanting to renegotiate price. Actually I'm happy with the results of the inspection. Nonetheless,what is the time period involved here in Ontario where the purchaser either accepts the property as is, or walks away from the deal. I'D REALLY LIKE TO KNOW IF I'M MOVING OR NOT. Robert, Hawkesbury ON |
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We recently purchased a house and the owners lied about the condition of it, can they be held liable? Kelly, Sask |
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If you are selling your house and you have an old oil tank buried in the yard. What is expected of the seller? Fill it in, dig it up, have it inspected? Marcia, Richmond Indiana |
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My brother just took possession of a 2 storey home in Stoney Creek that has a completely finished basement. He had a certified home inspector come in for an inspection prior to firming up the deal in June of this year. The lower part of a basement wall, the baseboard, and the carpet in one area of the basement has considerable water damage that was clearly there prior to the closing date, however, it was not disclosed by the vendor. The house was built in 1999. Today, we found further water damage throughout the basement behind the insulation. He hasn't even been in the house for a week and we are tearing up parts of walls to expose the problems. Who is liable for these repairs? Basically, we are going to gut the outside walls in his finished basement to correct the problem. Two real estate agents were involved in the transaction. The home inspector came back and only now discovered the problem because it was hidden by furniture during the original inspection. Please help. Nick, Hamilton |
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We bought a small home in Welland and had a building inspection. There were no apparent problems and so we completed the deal. When my husband started working on the home he found powder beetle damage, water damage and many more problems. The home does not have a basement and the problems are under the home. Do we have any recourse after the first year to get either the former owner or the building inspector to take any responsibility? Donna, Newmarket |
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How valid is the following clause in the OREA agreement of Purchase and Sale? "The Seller warrants and represents that all electrical, pluming and mechanical components and any appliances included in the Purchase Price shall be in working order on closing" We just purchased a two-year old house, privately. We had a two hour walk through inspection done (which revealed some minor problems), we saw the house twice before closing - one month before and four days prior... we move in and discover the air conditioning (during a major heat wave) is not working. We call in a service and it's a major problem that just didn't "happen" and the repair will run us between $700-1300. What is the likely hood of us successfully having the owner uphold the above clause? Christina, Markham |
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What is the best way to handle a situation wherein the seller has not been honest about the condition of the house and is attempting to avoid thoroughly completing repairs as was stated in the contract after the home inspection? The seller has signed a contract stating that he will pay for remediation of a plumbing leak (to be done by a professional) including the remediation of any resultant mold. Last week the fellow attempted to tell us that it was fixed when he had only dealt with the problem himself. Last night our insurance agent called and told us that there had been a water loss on the property in 2003. We were not informed about this. We're doing the walk through today and I am fearful about the results of these things. It's our first home and we are working with a realator (who we will be discussing this with tonight), but I would appreciate another professional opinion to assure me that we are handling these issues properly. Jacklyn in Montana |
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I bought a freehold townhouse in August 2003 in the Whiby area. I hired a home inspector before purchasing the house and he did discover some mould in the basement and simply suggested to have it inspected by qualified contractor. He couldn't tell me more about it since the basement was completely finished and I opted not to break down the walls. From the outside walls, nothing was visible. I did most of the recommandations to try to fix the problem such as removing the vegetation from the house walls. We still have been getting some leaks due mostly to rain and snow melting in spring and it's been getting worse. I know for a fact that there has been some leaking before we moved in, maybe not as serious as now but the previous owner never informed us of the leakage problem. Can he still be held responsible for the damages after a year and a half later. What are my rights? Syvain |
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I am buying my condo "as is." I have been a renter there. There is mold in the air conditioner closet that has leached out into the hall bedroom carpet from water damage via an air conditioner leak. Does the seller have to recarpet or can he sell it to me in this condition. Doug, Maple, Florida |
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Bill recently we bought a house that had a home inspection done on it. We noticed a leak. The real estate agent told us it was from a leaking pipe that had been fixed. Now 2 weeks later we find the basement leaks like a sieve. Can we go after the home inspector the sellers or the real estate agent? Its constantly leaking so there is no way they would not have known about it. Gloria |
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My son-in-law purchased a house this Spring and had the house inspected. He recently turned the furnace on for the first time and found that it did not work and soot and carbon monoxide escaped. The furnace has to be replaced. The vendor did not disclose that there was anything wrong with the furnace. Would there be any recourse on the vendor at this stage? Joe |
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If you have already bought a home and you are having major problems with the home that were not disclosed, what can I do. I did have an inspection that was not done properly. Everyone involved just sluffed me off. Can you please give me some advice. Rona |
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When we purchased our small house over a year ago, we waived off the inspection requirement in order to compete with the other bidders (in retrospect, this was a mistake that we will not repeat in the future). We knew that the house needed some work, but when we recently started removing the floor, we discovered that the house has some major structural problems that were covered up by a "cosmetic" renovation. I have heard that previous owners have been held liable for selling houses with major defects (i.e. structural problems) and I am wondering if you have any information about this legal option. Most importantly, if the option to pursue such legal action exists, do we have to the right to do so even though we did not have the house inspected? Fern |
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Our home was contaminated by lead, how does this affect the resale value of the house? It is an older house. We hired a contractor to remove the lead paint from the old section and in doing so he did not seal off the rest of the house properly. The find dust was distributed throughout the entire house. When the clean-up was completed, there were still traces of lead throughout the entire house. I understand that the EPA has standards, however, these meet most of the people most of the time, therefore, I wonder if in selling the house we notify the buyer, would they hesitate to buy due to the unknown fact as to how their body would react to the lead? Terry |
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Appraisals, Home Equity, Sustaining Value, Value of Features, Using Home Equity to Invest , Flipping |
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I have a 4 bedroom home. I use one as an office. We are getting ready to re carpet the bedrooms. Would it be better to put hardwood in the office for resale value. Scott. Indianapolis, Indiana |
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(Abridged Email) I live in Surrey BC in a 16 year old 2350 sq foot 2 story home. I have had a couple of quote for gas furnaces with and without heat pumps. If there were 3 identical houses where one had a regular mid efficiency furnace, one had a high efficiency furnace and the third one had a high efficiency furnace with an air to air heat pump(which also provides cooling in the summer), how would the differences affect the selling price? What about the windows - how much added value would replacing my current (aluminum???) ones with energy star vinyl one? Over the years I have also experienced condensation in the to the extent that at times I have had to soak it up with towels. Laurie. Surrey. BC |
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My neighbour had a furnace oil leak and there was some contamination of my property. My property has now been remediated to "residential standards" but not pristine. In addition the neighbour's property has been partially remediated, however remaining high contamination is being managed through an underground ground water collection system connected to an oil seperator. Can you tell me how this will affect the sale value of my home. (Name withheld) |
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Hi - We are going to remodel our kitchen in an 2800 sqft upscale home in W.Covina, CA. We would like to remove our double oven and add a pantry. We would install a high end oven/stove instead of the double oven and cook top. Will this take away appeal or resale value from the home. Thank You Very Much, Tami, W. Covina, CA |
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I own a 2 family house i rented it out for a few years inow live in it for 6 months can i sell it put all of my profit into a new house for myself or will i get hit heavy on taxes ? or how can i find out? Eddie, New Jersey |
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Hi Bill, I am inspired as to what you are doing. My goal is to sell my land and house in Newnan Ga to gang funds to invest into other properties, but at the same time I have been trying to get rehab loans but my credit score is not good enough. The City has condemned my house but I need money to bring it up to code before May 22nd. Therefore, they will demolish it and what do I do then. Help! Anonymous, GA |
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My sister in law is always saying you can't flip houses in Canada. Is this true or is it something she heard incorreclty and is passing on as fact. Does it have something to do with capitol gains. If you really don't want to have to write me a novel, I understand, could you point me in the right direction. Waiting to flip in Brantford Ontario, Lisa |
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We have found an older home we like: a bungalo on a quiet street in Ottawa. But we are very nervous because the UFFI clause indicates the presence of UFFI in the house. The listing is accompanied by a test result indicating low emissions...we are not worried about heath problems. We realise that the UFFI scare never was anything but a scare nevertheless, we are nervous about resale values because of the stigma of a UFFI branded home. Your thoughts please.? |
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We are planning on purchasing a condo that our son will live in for about 2 years before he graduates medical school. Is it better to have him on the title initially or to do this upon transfer with a quit claim after graduation. I was thinking it would be best to wait until the later date as the appreciated basis would be higher for him. Please advise. Pam. Clifton VA |
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I' m a current student and we are working in an essay in my writing class and the theme is homeownership. What my class would like to know is what does real-estate peoples what to know about homeownership in a 17 year-olds point of view. Mariela, Tucson |
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I am having a 22 x 26 garage built in my back yard. The question I have is I told the contractor that I wanted a flat floor because it would mainly be used as a workshop and not used for daily parking of cars. I do have a project truck that will take another 3 years to finish that will also be stored there. He got a permit as a workshop so the floor can be flat and not sloped towards the door if the permit was pulled as a garage, I think for gas fumes. Will I have issues if I decide to sell the house and call it a garage? Joe, Fairfax VA |
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We are buying a house and 2 acres with a shop from a developer that bought the 43 acres next to it. After we put a contract on it with him we were told he has decided to just put a row of apartments on the far edge from us and on the rest put duplexes on two sides of us. We already new that they were building duplexes across the street but we thought they were putting houses next to us. My question is, if we go ahead and buy this house will we loose equity because of the duplexes and will make the value of the property be less? Pam, Republic MO. |
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I want to start a corporation that purchases and sells houses and want to establish this company with purchasing my current home within that company. Is this possible? Rozy, Toronto |
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If i payed for an appraisal for this house i want to purchase, and the house fell out of escrow & i am unable to purchase can i get the money back for the appraisal fee? Anthony, San Bernadino |
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As feedback: The only thing I found confusing was the explanation about a loan to renovate. You said your lenders only consider footage. I have been told that upgrading your kitchen, adding new sturdy windows, and etc. could also add to the value of a home. Perhaps I would be a little hesitant with learning that from your site. Lydia, Virginia |
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WHAT UPGRADES IN YOUR HOME WILL MAKE YOUR PROPERTY VALUE INCREASE? Jackie Il USA |
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I am in the process of refinancing and have a question about the second bath that is in the middle of being installed. It is currently roughed in, but I don't know if the appraiser will determine it a bathroom or not because it is not yet functional? Brad |
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How can I add value to a house? Richard |
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Hi - We are going to remodel our kitchen in an 2800 sqft upscale home in W.Covina, CA. We would like to remove our double oven and add a pantry. We would install a high end oven/stove instead of the double oven and cook top. Will this take away appeal or resale value from the home. Thank You Very Much, Tami, W. Covina, CA |
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Hi. I am wondering how much of a reduction is reasonable to expect in real estate purchase for cosmetic updating. To clarify, I am interested in a duplex which was on the market last summer with no reductions and no offers. It reappeared about 10 days ago on the market with a $10,000 price reduction. When I viewed it, I saw why it sits on the market. Though it is only 16 years old, there is a big need for new paint (horrible bright colors and dark wallpaper in poor condition) and flooring (owner has 3 cats and carpet is original - some peeling of vinyl flooring). I like this place and can certainly see how to update it easily. However, it appears it is putting a lot of clients off and I am wondering if I can use that to my advantage when making an offer. How much below asking price can I go when this is clearly a huge factor? This is also in a town with a pretty hot ongoing real estate market. Thanks. Liz, Victoria BC |
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I was e-mailing about the legal implications of buyers purchasing a duplex and converting it back to a single family home. Are there taxes they have to be concerned about? George, Embrun |
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My sister in law is always saying you can't flip houses in Canada. Is this true or is it something she heard incorreclty and is passing on as fact. Does it have something to do with capitol gains. If you really don't want to have to write me a novel, I understand, could you point me in the right direction. Waiting to flip in Brantford Ontario, Lisa |
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We are looking for the chance to find a fixer upper in the Brampton area and work on it and sell it in the future for a handsome profit. The houses that we've been looking at in the area are more or less the same (they need a new kitchen and a bathroom, update on the flooring, and finishing up the basement (potential for in-law suite.) There are plenty of these homes in Brampton that sell for little below market value. It seems that it would be hard to recoup the enhancements I've listed above when you factor in the commission and the selling costs. Our agent doesn't seem to knowledgeable in what we are looking for and it seems paint is her magic answer to everything. Is it possible to make money with the average house in a suburb in the GTA by doing what I plan on doing with it? Dylan, Brampton |
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I'm trying to sell a farm house, which I've gutted and rewired. This area is a good market, with excellect schools. How do I sell the house for someone to fix up? Missy, Tennessee |
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My husband and I would like to get into buying houses, fixing them up, and then selling them for profit. BUT we don't know the first thing about it. How long do we have to live in a house before we can sell it again? Thank you in advance for your help. Kristin, Newmarket ON |
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We recently had our basement renovated, and had a deck put up in the backyard. The contractor finished the major jobs a week later than agreed upon. It has now been three weeks, he promises to show up but never shows up to complete the job. My husband and I have called this contractor every morning, and several times during the day, he does not answer his phone. He called one day early in the morning, around 6 a.m. to ask if he can pick up his tools, and promised to show up the next morning to complete his work, to date he has not shown up as promised to complete the job. What should be my next course of action? How long can I wait until I can take legal actions again himI I cannot use the basement as intended. What are my choices here? Sherry, Mississauga |
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I currently own a house and have decided to fix it up and sell it. I own a renovating and paiting business so I have decided to start buying fixing and selling houses. I have many questions however about what I should do and how I should go about it. My main concern other than what reno's should I do, is that I know capital gains can be huge. So if I sell the house I'm in (which I need to do to free up money) and move in to another am I going to have to be there a year before I can sell it. And of course my other question is what fix ups should I do and whats the best way to find out if the house I am buying will increase in price enough to make it worth while. Thank you for your time Victoria, Brantford |
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I live in Ont. I built my home my self ,moved in jan 2008 how long do i legally have to live in it befor i can sell it with out a tarrion warranty. Mel, Niagara Falls |
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We just built a home. We're not in yet. Builder said we were going to get a "walk-out basement." Nothing to the contrary showed on blue prints without being advised. No diagrams etc We have a stairwell with stairs up to the ground level. I call it a cement pit. Builder says their definition of a basement walk-out is what we got, but it's a walk up, costing me $100000!! That's not what I wanted. What recource to I have? Bev, London. |
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We recently purchased a new home and have found that the Main Floor is approximately 850 ft2 less than what was advertised in the MLS Listing. Also, the house did not come with a Central Vacumum as advertised. What is the realtors responsibility in this case? The agent was acting as dual agent. Tanya, Peterborough ON |
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Hi Bill, this is quite a service you offer. Good on you. My question is this. I have just bought a freehold townhouse built brand new. I paid for a 3 piece washroom to be installed in the basement. On the plans that are part of the agreement of sale my bathtub/shower is against the outer wall of the house(I am an end unit). In the actual house they have reversed this on the ground but not in the ceiling resulting in my heat vent being right above the shower/bath. This will no doubt result in rust in my duct work. What are my options? Do I have any? The other issued is the "snake-out" drain. They have it placed in the floor of my basement washroom. Quite unsightly. In all their model homes this is in another part of the basement. Do I have the right to withold monies or to ask them to remove it? Thank you. Elliot, Barrie |
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I am in the process of building a home. I just went for a walk-through of the property. I had been informed that my property is close to underground cables. I was not prepared to see the big poles and metal boxes in a corner of my back yard. Will this un-sightly scene affect potential re-sale values of my home? M. |
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What are the legalities for putting a mobile home on land you have purchased, presently there are 2 barns on the property, which is zoned agricultural, on 4.29 acres?? Caroline, Brantford ON |
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My question is regarding land. I am planning to buy a land for the first time and i would like to know information on what i need to know to purchase a peace of land. The location would be mississiuga rd. & dundas in mississaug ont. Pedro, Toronto |
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Can I buy land in Ontario and put a mobile or manufactured home on it? Audrey, St Thomas |
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I think you may have answered this question but if not HELP! I found a piece of vacant land I would like to purchase and build on. The bank of course won't fiance on it because there is no existing building/house. How do people do buy property and can you recommend lenders for these types of situations. Thank you..Michele Jacksons Point Ontario |
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Can i buy land and put a mobile home on it?If so where in durham,barrie areas. |
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I have been looking for a building lot to buy and hold as an investment, or to build my retirement home on in the distant future depending on how things unfold. I'm confused by the vacant-lot listings that I have been looking at. Some claim to be worth more because of fees that have been pre-paid. Some talk about zoning. I'm not sure which ones are good deals and which ones are ripoffs. What does it all mean? Victor |
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I have 15 1/2 acres of land. i told my children they will split it 3 ways. One of my sons said he will turn his part into a subdivision. Can he do that? Louise |
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Update 2008: The Ontario Road Access Act prevents land owners from blocking an existing roadway to prevent access to neighbouring properties. (I'm not sure if it's useful when you want to create a new roadway. If you're in that position, please consult with a lawyer and let me know what you find out.) If you're outside of Ontario or Canada, there could be similar legislation in your province or state. Please consult with a lawyer or attorney to determine your rights and options. Bill |
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I have recently put in an offer on a 150 acre land-locked property near Sudbury. It can be reached by a trail (old railbed) that is likely to become the Trans Canada Trail. Our realtor said that there was some legislation passed around 1999 regarding landowner's "right ot access" their own land legally. Do you know any thing about this? We are first and foremost hoping to buy the section of trail that leads to our land...We can physically reach it now, but we are hoping to have frontage so that we can eventually build. If we are unable to buy it, do you know if having an easement would provide us the same status as ownership of it as far as future building and application for a zoning change? Also, the person living there before was living there, I suppose "illegally", and there are a couple of run-down shacks. Is there some kind of loop hole that allows us to rebuild these existing buildings even if we are not permitted to build a new one? This is a difficult property, as you can see, but we are really hoping to find a way to make it work, as it is very beautiful and something we can afford! Thanks. Amanda, Bracebridge |
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My husband & I purchased 6.17 acres last August just outside the City limits of Clanton, Alabama. There are 2 other parcels of land behind us (belonging to Byrom & Fancher) that we provide a 40 foot easement to off the side corner of our property. Our immediate neighbor to the right- McGee- owes approx 15 acres that butting all 3 or our properties. Since we purchased this land, the McGees have been using the easement entrance to drive around to the backside of their property. They have recently worn down a path. I should mention that the McGees have 2 other paved drives to their relatively flat property as well as one dirt drive. They are extremely difficult to deal with so, we along with Fancher & Byrom, would like to build a connecting privacy fence on the outside of the easement to separate the property line. Should they tell us we could not build this fence, would they have any legal standing? Our property along with the 2 pieces behind us were surveyed by the same surveyer and written up to sell at the same time by the previous landowner - he had purchased one huge 20 acre section. It is my understanding that the McGees property was not figured anywhere into the layout. I should mention that they have a small construction business office (trailer) between my property and their house. It has its own drive as well. Any advice you could give would be greatly appreciated! |
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How can I access land-locked property? What legal paperwork is required. I must clear brush by order of the fire dept. and I do not have access to do so. Can you please help? Ken |
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Hi. A question. I bought some land in Arizona over the net. It's a remote 5 acre parcel. Turns out it is land locked! and open grazing. What do you know about land locked properties? Gene |
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How do you handle a sale of property that requires road access in legal terms of another property crossing another in terms of access to that property? Marlene |
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We own a house with a mutual driveway. The house we share the driveway with sold last year and the new owners are adding on a second storey. Having done the same thing several years ago, we are aware that we need to co-operate with their needing to use this shared driveway. They have become increasingly inconsiderate -- most recently erecting scaffolding that blocks the driveway without warning us this would happen, so we are now parking on the street. Also, their power was cut off by the city; they wanted to use our power, and we said no because they couldn't tell us how long they would need to do this. They have since got permission to use the power of the neighbour on the other side of us and now cross our yard (trespassing) to run the cord every day. They never asked us for permission, even initially. Is there a website you could suggest that would inform us of our rights? Do you have any suggestions other than, "Grin and bear it"? Karen, Toronto. |
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My wife and I just purchased a house in Brantford, and met our new neighbours who we have a shared driveway with. More of the driveway is on our property, but there is a right of way on the driveway so that they can access their garage in the back. The driveway is shaped like an hourglass where the front is wide enough to fit two cars side by side, then it narrows between the houses (not wide enough for two cars) then gets wide again past the houses where we each have a two car garage. The neighbours park a minivan at the front of the driveway close to the sidewalk (leaving enough room to access the back), and claim that because they have a right of way they are allowed to leave the minivan there and we aren't allowed to park beside it because we would be blocking them from accessing the back of their property. Is this in fact how a right of way works? Because of the shape of the driveway it basically forces us to only park in the garage because parking anywhere else will prevent them from getting to the back of the property. That's fine now, but in the winter it might be an issue. Scott, Brantford |
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My lot extends from one street to another. For as long as I have lived here (30 years), my tenants and myself have been able to access our parking spaces along the pathway in between my house and my neighbour's house. Unfortunately, my new neighbour has decided that we could no longer access our parking spaces this way. Can I claim an easement of access, and if so, how does one go about processing one? Françoise, Ottawa. |
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I currently own a house with a mutually shared driveway---my neighbours are putting their house up for sale---my questions is----can I buy the "driveway" from them before they sell? Debbie, Welland |
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I have a dispute with my neighbour in regards to whether or not an easment exists over the driveway between our house. In the meanwhile, I have ground water seeping into my basement that I need to fix and neighbour is refusing to allow repair vehicles on the driveway. This is not a problem with city pipes or drainage. Can my neighbour prevent me from repairing my house? I am afraid that if I wait until our other dispute is resolved that the cost to fix the problem and repair damages will be high. Shannon, Mississauga |
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I purchased my home about 6 months ago. We have what is considered a "mutual driveway". The neighbours that we are currently sharing the driveway with are renters (it is a semi). They tend to block my vehicle in sometimes and we have not been able to contact. Visually the driveway appears to be completely on my property and the measurements of the lot would have it on my property. On my deed it says "mutual". How can I go about determining whether the driveway is really mutual? Ideally, we'd like the driveway to be ours and put a fence up. Valerie, Welland ON |
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Hi I would like to ask a question they are building a house beside me and there seems to be a problem with the lot line my servey is a little different then his and the man who did my survey has passed away this same piece of property has been sold a couple of thimes since we have lived here and there was never any problem.They are telling me that at one point the line is like a pie shape and we are out by a half foot to almost the back of the property were it is two feet we really haven't done anything about this but we have been here for 36 years and there has been a fence up for that length of time if it turns out he's right will I have to move my fence. Joyce, Holland Landing |
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Sent as Feedback: This is just to let you know that in Ontario there is something called the fence viewers act, which you can employ to force an adjoining property owner to share in the cost of a borderline fence. (No name or location provided.) |
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My husband & I purchased 6.17 acres last August just outside the City limits of Clanton, Alabama. There are 2 other parcels of land behind us (belonging to Byrom & Fancher) that we provide a 40 foot easement to off the side corner of our property. Our immediate neighbor to the right- McGee- owes approx 15 acres that butting all 3 or our properties. Since we purchased this land, the McGees have been using the easement entrance to drive around to the backside of their property. They have recently worn down a path. I should mention that the McGees have 2 other paved drives to their relatively flat property as well as one dirt drive. They are extremely difficult to deal with so, we along with Fancher & Byrom, would like to build a connecting privacy fence on the outside of the easement to separate the property line. Should they tell us we could not build this fence, would they have any legal standing? Our property along with the 2 pieces behind us were surveyed by the same surveyer and written up to sell at the same time by the previous landowner - he had purchased one huge 20 acre section. It is my understanding that the McGees property was not figured anywhere into the layout. I should mention that they have a small construction business office (trailer) between my property and their house. It has its own drive as well. Any advice you could give would be greatly appreciated! |
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I live in a freehold end unit townhouse, someone said that I couldn't fully fence my yard because I would be land-locking my neighbours. Everyone on our street that has put a fence up in their backyard has not left open panels or has gates to allow for acess of the neighbors. Is this true or does it depend on the city you live. Sally, Burlington ON I have purchased an end unit freehold town home in Ottawa, Ontario. There are four homes attached to each other. In my contract, it states that I must provide a rite of way to the tenants that are directly attatched to my home through our backyard. I understand the legalities as far as how much space I must allow but they seem to think they can walk through my backyard anytime and as often as they want. I understand when they need to mow their land, or do yard maintenance it is necessary to access through my property. However, I find it difficult to accept when their children have friends over that they continuously run back and forth. Do I have any legal rights to request them to not do that? I thought they would have to have a real purpose to use this right of way or easement. Unfortunately we have had other issues with this neighbor without much resolve. Darlene, Ottawa ON |
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My Neighbour is not cooperating to put up a side fence to enclose each one's back yard. I have a dog and I cannot leave him in my back yard. Without a fence it is an open space. I suggested to my neighbour that we will put up the fence and share the cost ( basic ) equally. He is not interested. Is there any legal obligation for my neighbour to share the basic cost of the fence if I put it up initially at my own cost. Yes, I have few quotations from couple of Fence companies. I will go with the lowest quotation. Is there any office that I can seek a legal permit to do so and claim half of the cost legally from my neighbour? Leo, Mississauga |
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My son bought a new house in Barrie. He wants to put up a fence in his backyard. Are the neighbours on either side and behind responsible to pay for their portion of the fence? He asked the two on the side and they are willing to pay their share. The one in the back said he doesn't want to pay, so does that leave the total for the back part of the fence totally on my son? Joane |
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I have a copy of the survey of the property I bought in River Road Estates, Redfield Arkansas. My question is this...It shows the fence to be on the property line, so who's fence is it? Mine or my neighbors? I purchased my home before her and the fence was up when I purchased my home. The corner post connections all go to the fence going from the fence between our homes to the fence that runs up to my house. |
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What are your expectations for the real state market in Barrie in the next few years especially after the Go Train will come to Barrie 2007, I'm thinking of buying an investing property. David, Barrie |
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Just wanted to thank you for the oven thermostat info. Can't find the manual, and have been having some reeeely bad results lately. Thanks for your email, and for visiting this website! I'm surprised that you found that tidbit of information (food) and it tells me that all of my work is paying off in packing the website with information that will keep visitors coming back. Thanks again! |
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Hi I just would like to say I am a new Realtor in the Atlanta area and your questions and answers sessions are so helpful. I mean you have truly answered all lot of the questions that I expect my clients to ask. Thank you sooo much for your assistance. Yolanda Thankyou Yolanda! I'm encouraged to hear that my website is as useful to other Realtors as is it to buyers and sellers. Bill |
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Bill Rinehart |
705 436-5111 |
Toll Free 1-877-436-5111 |
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Learn even more on my Frequently Asked Questions page. |
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Bill's Answers: |
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We were in the middle of buying a home when the deal fell through if i already paid for the appraisal and that was coming off my closing cost do i get back my money: we were in the middle of buying a home when the deal fell through if i already paid for the appraisal and that was coming off my closing cost do i get back my money Whether or not you get back the money for your appraisal depends on your bank. Generally they don't like to pay for things! However, it's a competitive mortgage market and it's easier to negotiate with lenders. If they were willing to lend you the money to make the offer, I'm guessing that you're a good customer in their eyes. I'd suggest negotiating with them so they pay the appraisal fee on the next deal ! |
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When we purchased our small house over a year ago, we waived off the inspection requirement in order to compete with the other bidders (in retrospect, this was a mistake that we will not repeat in the future). We knew that the house needed some work, but when we recently started removing the floor, we discovered that the house has some major structural problems that were covered up by a "cosmetic" renovation. I have heard that previous owners have been held liable for selling houses with major defects (i.e. structural problems) and I am wondering if you have any information about this legal option. Most importantly, if the option to pursue such legal action exists, do we have to the right to do so even though we did not have the house inspected? I'll answer your last question first. When you did not have the house inspected you only waived the option of making the SALE conditional to a home inspection. You did not release the sellers from any responsibility they normally have for being honest about the condition of the house. I'll preface the rest of my comments by saying that I am not a lawyer and that you should consult with one to see if what I'm saying is really true in your case. If the owners that you bought your house from were the same ones who did the cosmetic repairs, and if you could prove that they understood that there was a major structural problem and that their repairs were not going to resolve that problem, then you likely could successfully sue them. If someone did the repairs before they owned the house and if they were unaware that there were structural problems with the house then they sold to you in good faith and you would likely not be successful in suing them. If the former scenario is the case, then the question is one of money. Does the amount of money that the courts would award you surpass the legal and court costs of suing to get it? I would, again, encourage you to run this situation by a lawyer. I'm trained as a Realtor and there might be twists to your scenario that I'm not aware of. I'd be interested to know how this turns out for you though and I hope you'll get back to me when it's resolved! |
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My sister and I were pre-approved to buy a repo property from the bank, whom is using a real-estate co. to sell this property, since we already know everything about this home, which was my deceased neighbors, do we have to pay for a private inspection? and do we really have to give an honest money deposit, since the bank know that we are very serious and have been working with us to get this house as well as our loan officer sending the pre-approval letter to the bank repo mg. as well as the real-estate co? Also is there any other form of deposit other than honest money that can be used if the buyer does not have the funds the agency is requesting at that moment? Antoinette Yes you do need to have an inspection done on the house before you buy it, unless you have tons of money to fix up whatever you don't know about the house or land. Even people who live in a house that they have owned for years are surprised by the work that should be done on it to keep its value. The home inspector is your friend. Use his services to help budget for future repairs, but also to keep you from buying a property with expensive hidden problems. A complication in your situation is that the banks generally do not accept offers with a lot of conditions in a Power of Sale or Foreclosure. I'd recommend having the home inspection done BEFORE you put in the offer. As for the deposit, as long as you are the only people putting in an offer, you might get away with submitting a one dollar deposit with the offer. That would only work in the circumstances that you are in, i.e., being financed by the same bank that is selling the property. As for substituting some other asset for a cash deposit, because it's a bank, they will only accept cash as a deposit on an offer. If it was a private deal, with no Realtors involved, you could submit your 57 Buick or some other asset as a deposit with the offer. However when a real estate Broker is involved there are rules about deposits being deposited in trust accounts that would mess the whole thing up. So, generally no, you need to submit a cash offer. Good for you for recognizing an opportunity to buy and for taking the plunge! The fact that you're asking such innovative questions tells me that you've covered your bases and will come out on top. Congratulations on your purchase! |
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I'm asking for my parents. They have a 3 unit apart. building that is draining them financially, they put it up for sale and now have a closing date this week. Problem? They have 2nd & 3rd mortgage, banks aren't budging to make things easier, my parents have already found a smaller home and have started to move and now the closing my not happen. What would happen if my parents just walked from the old home to live in the new? looking for the worst case scenario. Thanks Bobbie It's not good news unfortunately. Bankers don't get rich by being stupid and when they give out their money they make sure their interests are covered. When you read your parents mortgage documents you'll find something in the fine print that says your parents have to pay the money back, and if they don't, the banks can take legal action to recover their loss. In Canada that can either happen through Foreclosure or through a Power of Sale. I'm not certain that the same proceedings follow the same path in the U.S. In Canada, under a Foreclosure the borrower can "walk away" and the bank assumes the property and can sell it for whatever it wants to sell it for, under market value obviously. Those are the deals that most buyers are looking for when they are after a bank repossession. Foreclosures are more expensive, more timely, and yield less for the bank than a Power of Sale. For that reason the banks usually opt to force a sale under a Power of Sale. The borrower is still liable for all of the money in a Power of Sale, meaning that the bank will come after your parents to get whatever money they don't get out of the forced sale of the triplex. I would suggest that you consult with a lawyer in this matter. They can review the mortgage documents, discuss your parent's financial situation and, with the help of an accountant, recommend some solutions to your parent's dilemma. I'm always distressed to hear of buyers whose dreams have not been realized or whose investments have turned to nightmares. I've been down the same road. You have my sympathies and I hope you are able to turn the situation around for your family quickly. |
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I sold my house quite unexpectedly. Someone knocked on the door. I had it on the market for one year and it did not sell due to unqualified agents and unqualified buyers. I took it off the market and the prices in the area skyrocketed. Therefore, this buyer and I made an agreement that is entirely too low. It is an elegant French Normandy 3 bdrms 2 baths with guest house over garage. I added central air and electrical rewire. I sold for $830,000. It should be $1 million according to comparables. I realize you are in a different area, however, escrows and cancellations should be similar. I want to cancel escrow which I have done with the escrow company, cc to buyer. He wants to still buy the house and I want to get out of it. What is going to happen to me other than specific performance. The escrow co. is not going to charge me, but buyer is pressuring me. What can I do? Donna LA California Unfortunately, escrow is a purely USA phenomenon. We have nothing like it in Canada and I can't entirely understand it, much less discuss it. In Canada, the period between the deal firming up and the name change on the deed usually is less that 6 weeks so there is less chance for a situation like yours to arise here. Having said that, contract law there is likely not that different than here. Once a contract is signed and agreed to by both parties, they are both locked in. That's to your advantage as well as the buyer's. Suppose the price of properties had gone DOWN instead of up. Would you be happy to give the buyer back part of what he agreed to pay you at the time you did the deal? You're talking about a significant amount of money, and I'd encourage you to not rely on my musings but to discuss your options with your lawyer. Good luck and feel free to let me know how it works out. It's an interesting situation! |
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How can I add value to a house? Richard The only way to add value to a property is to make it larger. That means either adding more land to the lot, or adding more heated livingspace to the house. There are not many ways to make the lot bigger. In Canada we have 2 systems for registering land ownership. New lots are registered under a different system, but under the 300 year-old system it's possible to take adverse possession of a neighbours land if the land has not been used by the real owner and it has been used by you with his knowledge. All of my parents neighbours lots have been extended into the farmer's field behind them because of one neighbour who took possession of the strip of land that the farmer did not use, and that they did use. For the rest of us, the only way to add value is to add heated square footage to the house. That means adding an extension to the house or finishing the basement. The problem with that is that adding living space to the house costs you more money than the value it adds. UNLESS you can do the work yourself. There are people who buy houses, fix them up, and sell them at a profit. They can only do it at a profit because they do it themselves. The same principle applies to adding living space. If you're paying others to do it, you're spending more than you're making. If you have the skills to do the work yourself, go for it! There's is more information on my FAQ page about renovating for money. It tells you what not to spend money on. |
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Is there anything that will "automatically" disqualify me from getting a bank loan even if I have > 5% downpayment? My credit has been atrocious because of a recently diagnosed ADD. I am a former bankrupt > 10years ago, but my credit since then has not been good. Phil Lenders today are falling over each other to lend money and are lending in situations that they wouldn't consider in the past. I'd suggest approaching a mortgage broker. They shop your mortgage around to different lenders and, depending how much interest you're willing to agree to, they can get just about anybody financed. I've seen buyers get turned down by a bank, then the mortgage broker comes back with the same borrower and an even higher mortgage, and the same bank accepts the loan! Lenders today are offering no-money down financing, and are willing to finance even 107% of the cost of the home, lending buyers the money to cover the usual 95% of the value, plus the 5% down, plus the legal and closing costs. I guess my short answer is, no I don't think anyone is automatically disqualified anymore. Good luck ! |
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Our home was contaminated by lead, how does this effect the resale value of the house? It is an older house. We hired a contractor to remove the lead paint from the old section and in doing so he did not seal off the rest of the house properly. The fine dust was distributed throughout the entire house. When the clean-up was completed, there was still traces of lead throughout the entire house. I understand that the EPA has standards, however, these meet most of the people most of the time, therefore, I wonder if in selling the house we notify the buyer, would the hesitant to buy due to the unknown fact as to how their body would react to lead? Many older homes have old paint that contains lead and they do not sell for less than a similar house in which the lead paint has been removed. Now that the lead had been disturbed and there are trace levels of lead in the atmosphere in your house, yes I think an average buyer would be more reluctant to buy your house. You definitely have to advise a buyer of the lead contamination before they put in an offer. If you don't, under contract law, the buyer could get out of the deal because they submitted an offer on a house that was substantially different than they thought it was in terms of it's safety and liveability. They will eventually find out, even if the deal goes through. Neighbours love to share information about stigmatized properties and they usually start by saying, "Wow I didn't think anybody would buy that house after (fill in the blank) happened over there." If you have documentation from experts saying that the lead levels inside your house are within safe limits, then you might be able to convince a buyer to buy. I would still expect them to pay less for the house than for a house on your street or in your area that was identical to yours in every way except for the lead contamination. In your shoes, I would hire a local real-estate Appraiser to determine what the value of your house would be if it was not contaminated, and then what it is worth with trace levels of contamination. If there is a substantial difference then my next step would be to consult with a lawyer to determine if it is worth suing the contractor to recover that amount of loss. The legal fees and court costs might be more than the loss in value though. I'm not an expert on lead contamination or law-suits. I hope I've shed some light on the workings of a buyer's mind and your obligations to inform them. |
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I would like to know, when you giving an offer on a house what amount of money you have to give with the offer? thank you bye Alicia. The money that is submitted with an offer, called the "deposit," is an up-front payment to the seller that shows the seller how serious the buyer is about buying the house. If you end up not buying the house, you get the money back, but it is tied up for a while. The deposit is a cheque that is cashed and is deposited into a trust account at the Brokerage. If you only send a cheque for $500, the seller thinks, "If this is all they can come up with now, can they get enough money to pay for the house later?" If you send a cheque for $10,000, the seller thinks, "Holy crap! I can't even write a cheque for $10,000!" Generally speaking, sellers are looking for around 5% of the offer as a deposit. So, on a $150,000 offer, a deposit of $7,500 would be considered a very serious deposit. In that price range, the deposit is usually around $5,000. Some people send a $2,000 deposit, but that raised concerns in the sellers mind. There is a time when you have to offer more than usual. If there is more than one offer coming to the seller, the one with a higher deposit will often be accepted. The seller is trying to figure out who is more likely to buy the house. The seller thinks the one who has more money in his chequeing account is more likely to buy, and the other offer with the lower deposit will be set aside. As with a lot of real estate issues, the best course of action to take depends on your own circumstances. I can help you figure out which is the best choice for you, if I can meet you and get to know you. I'm only a phone call away :-)
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Hi , A question, I bought some land in arizona over the net . Its a remote 5 acre parcel . Turns out it is land locked ! and open grazing , What do you know about land locked properties ? Gene I know that they are the kind of things people buy when they are not making use of the expertise that a Realtor brings to the table :-) As you've discovered Gene, a landlocked property is a lot that has been severed off from an earlier larger piece of land, but no provision has been make for road access to the property from any surrounding roads. Usually the owner of that lot arranges for an "easement" across a neighbouring piece of land, meaning that you would pay a neighbour for the right to cross a specific part of his land to get to your lot. If you cannot negotiate an easement with one of the neighbours, you might consider approaching one of the adjoining land owners to see if they would be interested in buying your lot. They might not have been aware that it was for sale when you bought it. Your problem is compounded by the 'open grazing' zoning which I suspect prohibits the erection of a building that would house anything other than farm animals. I hope my website has convinced you to use a Realtor if you're going to make any further purchases or sales. Being your own Realtor is like being your own Dentist or gall-bladder Surgeon. What you lose may be more costly than anything you could save by going it alone. |
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I have a copy of the survey of the property I bought in River Road Estates, Redfield Arkansas. My question is this...It shows the fence to be on the property line, so who's fence is it? Mine or my neighbors? I purchased my home before her and the fence was up when I purchased my home. The corner post connections all go to the fence going from the fence between our homes to the fence that runs up to my house. If the River Road Estates homes were built by the developer, there's a chance that the fences were put up by the developer. Usually when that happens all of the fences in the neighbourhood are of the same style. If that's the case, I suspect that the fences are sort of co-owned and there might be some subdivision covenant on your deed that addresses shared maintenance of the fences by adjacent owners. If the River Road Estate homes are custom homes, or were sold by the developer without fences, then there are some clues to look for. If I put up a white picket fence around my house, I get to look at the ugly side of the fence, meaning, the face of the pickets are on the street side of the fence, and on the neighbours' side of the fence. Same for a chain link fence. There are some fence styles where both sides of the fence look the same in which case the only clue is the one that you've mentioned. Since the fence connects to your house, but not the neighbour's house, it seems logical that a previous owner of your house put up the fence. I'm not sure how things are done in the land of the free and the home of the brave, but in neighbourly Canada, quite often if I want to put up a fence, the neighbours help pay for their part of it because they benefit from it too. The good news is that your neighbour didn't chip in to the cost of the fence because she wasn't there at the time. I'd say it's yours. One thing that wasn't clear in your email was, do you WANT to own the fence? If it's rotting and falling down and needs to be replaced, it might be better to not own it. On the other hand, if you want to paint it purple and orange, it's nice to have the power of ownership in your paint-stained hand. |
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We purchased our house in july of 1999 and was told by the bank that we needed a co signer to be able to purchase our house. My inlaws co signed for us and signed all papers that we did but the mortgage insurance papers my mother in law passed away in November of 2001 and what my question is do we have a legal right to have our house paid for by the bank because they co signed. Cathy I'm sorry that you had to endure the pain of losing a loved-one, and so soon after Sept 11. The insurance papers that you signed are not connected to the documents that you signed for the mortgage, so the insurance does not cover all of the people who signed the mortgage documents. A company separate from the bank or mortgage company insured the life of the people who were buying the house and making the mortgage payments, in this case, you and your husband. You could have bought mortgage insurance for other people at the time, including the cosigners, but at the time your inlaws probably would not have agreed to paying the cost of insuring themselves. I hope you are enjoying your new home and enjoying the time you have left with your father-inlaw. |
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Thank you so much, Bill. I pay the mortgage, had my home refinanced a couple of years ago. How can I get a "quick claim deed" so that I may place my daughter on the deed? I know you are in Canada; however, you seem to be very bright re this subject. As I said, I live in Tampa, where we have many "snowbirds", people who come to Florida for the winter. I thank you, and would appreciate any info re this matter. Which is the cheapest way to do this, Bill. Love and prayers, Pat. My first advice is, hire a lawyer because this is not my area of expertise, especially in another country! Generally speaking though, it's easy to put someone else on the deed for your property. The deed is filed at the local land registry office, or the equivalent in the USA, and it spells out the names and addresses of the people or corporations that own the land. It costs a few dollars to file a new one but it's not a big deal. The only people who really care are the people holding the mortgage. If they have a mortgage signed by one person but there is another person who has a claim to the property, because they are on the deed, but they have not signed the mortgage documents, then the mortgage is not valid. This is not a do-it-yourself project Pat. You will need a lawyer to steer you through the process but it should not be expensive. You should speak to the lender that holds your mortgage first and outline your intentions. Bankers don't like surprises. Good luck with this and say hello to the Canadians down there for me! I might be one of them in , oh, 30 years or so if I'm lucky. |
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I do not live in Canada, and am in California and was reading your very informative information on you site. In reading through your material, it was stated that if you decide not to buy a house, that the money you put up initially should be returned to you. I put up $3,000 and I decided not to buy the house at g the escrow stage. I was not offered my money back, but was sent a list of charges that used up all the money and I was asked to sign the paper and return it to the escrow office. These charges were broken down in this manner: Escrow cancellation fees $1,000; NSF check fee $30.00; Federal Express $80.00 The Seller $1795. Should this money be divided this way or returned to me? Connie Fortunately for us, in Canada we do not have to go through the escrow process because clear title to any piece of land, and the location of the corners of the lot, can be traced back to the first owner that bought it from the Crown. In early U.S.A. history, landowners basically put stakes in the ground and claimed the land. Often more than one landowner thinks they have title to the same piece of land. Escrow is a period where the lawyers try to determine who actually owns the land, and to give other people, who think they own all or a part of the lot, a chance to come forward. A simple house sale can be in escrow for years. If you were making an offer on a property in Canada, you would submit a deposit with the offer. That deposit would be returned to you if the seller did not accept your offer. If your offer was accepted, your deposit would be set aside while the conditions of the offer were being met. If one of the conditions was not met, for example if the house did not pass the home inspection, and there was subsequently no firm deal, then your deposit would also be returned to you in full. If all of the condition were met and you and the seller accepted the agreement of purchase, that agreement would be considered a binding contact. You and the seller would be locked into it. If one of you decided you wanted out of the deal, the other party could force you to complete the deal as agreed to. In order to get the seller to let you out of the deal, you would have to offer the seller money as a settlement. That's a case of a deal having gone very badly and is very rare. My understanding is that once the house is in escrow, in the USA, it is considered sold. That would be similar to the cancelled deal that I describe in Canada above. It does not surprise me that there would be fees and costs that you would have to pay, and that they would take them out of your deposit in order to ensure that the fees were paid. I don't know exactly what those fees are, or how the money would be distributed so I can't answer your questions directly. I expect that you were represented by a lawyer during the escrow process. I am not a lawyer and I would suggest that, if you think you paid fees that you shouldn't have, you should either consult with that lawyer about the fees that you paid overall, or consult with a different lawyer if you feel that your original lawyer was not dealing fairly with you. Thankyou again for visiting my website and for submitting your question! |
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How do you handle a sale of property that requires road access in legal terms of another property crossing another in terms of access to that property? Marlene I am not a lawyer and my advice is to consult with one before following any opinions that I have regarding legal matters. Having said that... An "easement" gives a person the right to cross over land that belongs to someone else. The only way to get to a landlocked piece of land is to negotiate an easement with one of the neighbouring landowners. If you were buying landlocked property, I would draft your offer with a condition that the deal would not go through unless either: 1/ your lawyer confirmed that an existing easement across a neighbour's land would be transferred to you after the sale, or 2/ if there is no existing easement, that you were able to negotiate an easement with one of the neighbours. If I was working for the seller of that property, I would ensure that we had documentation on the easement and proof that the easement would be transferred to the buyer. That would speed up the whole process and get the house sold faster. I hope I've addressed your question adequately. Thankyou again for visiting my website and for submitting your question! |
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My son bought a new house in Barrie. He wants to put up a fence in his backyard. Are the neighbours on either side and behind responsible to pay for their portion of the fence? He asked the two on the side and they are willing to pay their share. The one in the back said he doesn't want to pay, so does that leave the total for the back part of the fence totally on my son? Joanne Your son's neighbours have no obligation to help pay for the fence. Many neighbours do pay for part of a fence so that they can have some influence on the colour and style of the fence. It sounds like your son has 2 good neighbours out of three. Those are pretty good averages! It could be though that the rear neighbours are good people but just can't afford to pay for the fence. Owning a home, especially a new one, is an expensive proposition with many surprises. I hope the fence will become a common topic of discussion with the rear neighbours, rather than a bone of contention that will turn into a long term battle. Perhaps the key to that is to ask them for their input on the design and colour, even though they are not contributing to the cost. |
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How can I obtain listings of foreclosed/power of sale houses? Cherrie Generally you're going to have to work with a Realtor to find the power of sales or foreclosures. There are a few websites that claim to have listings, but they don't when you get to them. The power of sales are listed on the mls system, just as regular homes are. As a Realtor, I can use 'power of sale' as one of the criteria to search the mls database, however the public does not have that ability on www.mls.ca or www.realtor.com in the USA. There is a lengthy discussion of the savings in buying a power of sale or a foreclosed home on the FAQ page in the buyer's questions section on my website (click here) I hope that helps! |
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I have a question regarding cosigners,When the bank said no for my mortage the real estate company that i was dealing with cosigned for me .My question is what rights do they have to my house.It is now 13 years later ,they have never contacted me over the years but when i tried to sell the house she is refusing to sign off. my lawyer says i have nothing to worry about but i am bothered by this to the point where i can't sleep at night. Any advice or info similar to my case would be appreciated, thanks Brianna Thanks for your question Brianna. I don't have your email address to send a personal response so I hope you've found it here. I'm surprised by a lot of things in your story. Finding a Realtor or a Brokerage willing to cosign a mortgage application is definitely unique. My Broker has been known to accept a mortgage from buyers in the past, but he had mortgage documents that protected him if the buyers had defaulted on the loan. Your Broker, on the other hand, would have had to come up with the cash to pay off the bank if you had walked away from the bank. They took an incredible risk. Having the same people not contact you for 13 years after that is astounding. I guess they assumed that they had bought your loyalty by backing you on the mortgage, and that you'd call them. It sounds like you did not call them to sell your house, and that's why they are digging in their heels. To directly answer your question, no I haven't seen that situation before. I can only think of one instance where the cosigner would be able to stop the sale of a home. If you sold the house, and there was not enough money left after the sale to pay off the mortgage, and if you did not have any cash of your own to pay off the remaining balance, the bank would not release the mortgage without the cosigner continuing to support the loan and paying the balance. You didn't pass on information about your finances, but after 13 years you should have made a significant dent in the mortgage. I suspect that is why your lawyer has said not to worry; because you do have enough money on your own that you don't need a cosigner anymore. My advice? Go to sleep :-) |
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Hi Bill, A friend is trying to buy a HUD multi family(4 apartments) house in Brooklyn, NY. She has asked me to co-sign. What would be expected of me? What happens if she's late on payments. I have not done any thing yet. I have a good credit rating and want to keep it that way. Please advise. Thank you. Mellissa.. Hi Melissa When you co-sign a loan, you are assuming responsibility for any obligations the borrower is committing to in the loan agreement. As an example, if your friend defaults on payments, after about 3 months of late payments the lender will be looking to you for either the late payments or repayment of the total amount of the loan. Co-signing a loan is something that I consider beyond friendship and would be reluctant to do even for a family member. I hope that helps! |
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When changing from a Realtor to Private Sale, how long do I have to wait to sell my house to someone who "has" and "has not" previously viewed my home? Elan There should be a clause in the contract with your Realtor that spells out a "holdover" period. On the boards that I work under it is either 60 days or 90 days. If you did sell your house privately during that period, your original listing Realtor would have to prove that the buyer came through the house while it was listed. Usually we only have the open-house register to document such buyers' visits. If the buyer didn't sign anything at an open house, and did not see the house with another Realtor, you likely would not have a problem with the Realtor, but it's risky. I've heard of Brokers hiring private investigators in cases where the commissions were in the 10's of thousands of dollars. They would likely not go to such lengths for a couple of thousand dollars. To confuse the issue even more, if the buyer was working under a Buyer-agency agreement with another Realtor, the buyer could be liable for the other Realtor's commission too. I hope I've answered your question. Good luck with the sale of your home! |
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I am in the process of refinancing and have a question about the second bath that is in the middle of being installed. It is currently roughed in, but I don't know if the appraiser will determine it a bathroom or not because it is not yet functional? Brad Hi Brad. Your email address didn't work. I hope you've found the answer here. Appraisals are done on an "as is" basis and would be based on the state of your home at the time that it is done, in your case with an unfinished nonfunctioning bathroom. Good luck with your refinancing and thankyou for visiting my website! |
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How do I calculate the square footage of my two storey home? Anonymous Good question! If you have been looking at MLS listings from Toronto you'll notice that most of the listings don't mention square footage. That's because most of the Realtors there were unable to measure square footage properly in the past and there were so many lawsuits over house sizes that the Board made square footage an option in listings. Our local Barrie Board is more strict and we do have to include an accurate square footage. Square footage includes only space above grade, so the basement is not included in basic square footage measurements. Some Boards list "finished square footage" as a second measurement to include the basement. Square footage also only includes heated living space. If there is a 400 square foot enclosed porch on the back of the house, it's not included in your measurements unless it is heated. Heated means controlled by a thermostat so a porch with a woodstove also is not included in your measurements. A continuously heated garage also does not qualify as "heated living space" unless you're "living" in it. Square footage is measured from outside corner to outside corner, so the square footage includes living space plus exterior wall thickness. A rectangular ranch is easiest to measure. The length of the foundation outside along the front wall in feet (or metres) multiplied by the side wall feet. If the house is L shaped or some other odd shape, measure the square footage of the boxes that make up the floor plan, then add those numbers together to get an overall square footage. OK, now we'll add a second floor. Using the same criteria, add whatever heated living space exists on the second ( or more ) floors and add them to the main-floor square footage. The total is your overall square footage. What if your second floor has the sloping ceilings found in many mid-century homes? These houses are the ones that caused all of the lawsuits in Toronto. The sellers' Realtors measured the liveable space from where the floors meet the walls, even though only an 8-year old can stand up in that part of the room because of the sloping ceiling. The buyer's Lawyers measured the liveable space up the point in the room where an adult can stand up without hitting his head on the ceiling and considered the short-people parts of the rooms to be unlivable and not part of the square footage. House values are based primarily on square footage. Hence the lawsuits. Check with your local Realtors if you have sloping ceilings. In our local trading area, covered by the Barrie and District Real-Estate Board, square footage is measured up to where the floor meets the wall. Happy measuring! Back to Mailbag |
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If you have already bought a home and you are having major problems with the home that were not disclosed, what can I do. I did have an inspection that was not done properly. Everyone involved just sluffed me off. Can you please give me some advice. Rona When people use the word 'major' in relation to housing problems they usually mean 'expensive'. I will assume for the sake of the other folks reading this that the repairs to your house are necessary for your continued occupancy of the house and not smaller items. I will also assume that you bought a "used" home rather than buying from a builder. There are New House Warranty issues affecting new homes. The courts have made a distinction between 'patent' faults that should be obvious to anyone, (like the water damage to the walls and the missing roof) and 'latent' faults that are hidden and should be picked up by a professional (like the mold growing in the attic under the leaky roof sheathing.) If the defects at your house should be obvious to the average person, but you missed them, you still have some recourse with the Home Inspector. Your comments about everyone sluffing you off suggest that your home's faults were not obvious to your Home Inspector either. I'm not a lawyer and I will first recommend that you run anything that I say past a lawyer before you believe it, but, to go after the Home Inspector you would have to have expert witnesses on your side, who are also Home Inspectors, saying that a competent Home Inspector should have picked up on the major defects in your house. If they find the Home Inspector was a fault you win, if not, the seller is the next in line. I'm not sure if they are using the Seller Property Information Statement (SPIS) in Thunder Bay, where you bought. It is mandatory in Barrie, an option in Toronto, and the same mix across the country. It is a detailed statement from the seller stating the house's flaws. If the sellers wrote on their SPIS, for example, that the basement had never leaked, and if you could prove that they had a quote from a basement leakage expert for the costs to repair their leaky basement long before you bought, you'd have a case. You have to prove that they KNEW that those faults in your house were there and that they knew that they were there If you can prove that they lied, you might win. If you prove that they had no clue, you lose. There's another party with a responsibility in this. The Realtor who wrote up your offer to purchase. If you signed a Buyer Agency Agreement with that Realtor, they were obligated to protect you in the purchase. If you did not, they were working for the Sellers and you were only a customer. If you did have a Buyer Agency Agreement, the courts might find that your Realtor did not represent you well in letting you accept the Home Inspectors report if there were faults that the Realtor recognized, even if you didn't. Your suggestion that everyone is sluffing you off suggests that your Realtor is not acting as an advocate for you either, which disturbs me a lot! I'd need to know what your relationship is to him/her to go any further in that regard. So, where are we now? You might be able to sue the vendor, the home Inspector, or the Realtor who represented you when you bought. Or go for all three! You will need to weigh the costs of suing against what you will recover if you win. If you win, the court might make the other people pay your legal and court costs, or it might decide that you are partially at fault too and not award you your legal and court costs. If the costs of repairing the faults in the house are more than the cost of hiring a lawyer plus the court costs, the law suit might be an option. The next concern is, having sued and won, can you collect anything? You'll need a minimum of $5,000 to hire a lawyer. That will be eaten up quickly and the ongoing expenses will add another $5,000 or so. That's before you even get to court. I once spent $10,000 to sue for my $15,000 loss, and won the case. But the other guy declared bankruptcy and I was out my original $15,000 plus the other $10,000. I'm told that is not an uncommon story. It's always easier to find solutions to other peoples' problems that for our own. We never have the full story. As someone famous once said, the Devil is in the details. I don't know all of the other details that affect what you can do and I apologize for giving you a simplistic approach to your situation. If you love the house, and have the money to make the repairs, swallow your pride, spend the money, and do the repairs. Revenge is sweet but why not take the money that you would have put your lawyer's kid through college with, and spend it to make your house better? If you don't have the resources to repair the defects, put the house up for sale. Don't do what the previous owners did though. You have to disclose the faults that you have knowledge of. The next buyers might be even more vengeful and you'll spend thousands on legal fees defending their lawsuit. And you won't sleep at night because you'll know they are right. Yes, you will lose money by being honest, but not as much as you might think. Let me explain: Every house has faults. I often have buyers who think that buying a house is like buying a dented fridge at Sears. They want to subtract the home inspector's cost estimates from the asking price of the house. It doesn't work that way. You could take the same Home Inspector to any house that sold for the same price and he would find things to spend many thousands of dollars on to turn the perfectly acceptable house into the perfectly perfect house. Perfectly perfect houses don't exist. Even brand new houses have things you can improve on with $1,000 here and $1,000 there. Put your house on the market as it is. Don't hide the defects. You won't get the top price for a house of that size in your neighbourhood because any buyer will see it as a fixer-upper. To approach it from a more personal level, you will never be happy with that house. When you come home at night you will always remember the water in the basement or the mold in the attic. It will be a daily reminder that you were taken. The same memory will be there when you wake up under that roof. And, you will wake up every day wondering if this is the day you'll find something else wrong with the place. Dump it, buy what you can with the money that you have left, (using a better Home Inspector,) and get on with your life. As I said, it's a bit easier to find solutions to other peoples problems when you're not wearing their shoes. I do hope that you can resolve this issue and get on with being happy owing a home. Your's has been a story of an unhappy home owner, and they are always disturbing to someone who helps people find happiness in home ownership. |
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This is a bit unusual. But, basically, I'm looking for some information from a seller's point of view for "Rent To Own". My Mother is currently a guarantor on her grandson's mortgage. This is NOT working well, and we have finally convinced my nephew that we can get a better interest rate if Mom remortgages on her own. (He does not have a good credit rating, but she has an excellent one). As a bit of incentive, we told him that he could Rent To Own and therefore, as long as he keeps up with his monthly rent to his Grandmother, then eventually, when his credit rating improves, he can buy her out. I'm not sure if we're playing with fire on this one or not. I know there are normally lots of stipulations for this type of rental. Since it is in the family, we would not be overly concerned with the normal amount over and above the rent, which would go as a "downpayment". All we want is for my Mother to be protected and to hopefully be able to let my nephew assume the mortgage in a couple of years or so. We will be visiting a lawyer next week, but I just thought maybe I could get an advance "heads-up" on what we may need to do or be careful about. Any advice you can give would be greatly appreciated! Brenda To be honest, rent-to-own deals are so rare in this sellers' market that I have not seen the paperwork for one in 6 years. Your lawyer will set the deal up any way that you instruct and will start with general questions about what you want to happen if things go right, and if things go wrong. If the nephew makes his payments every month, how much of that monthly "rent" will be used as a downpayment? Who will be responsible for paying the fire/liability insurance? Who will pay the taxes? Who pays for repairs? If the nephew misses a few month's "rent", what happens? If the nephew stops paying "rent" all together, what happens? Does he get some money back or does your Mother keep it? Or part of it? In a typical rent-to-own, where the buyer/renter and the owner are strangers, the seller always comes out on top and the renter loses his downpayments if there is no deal. Because it is family, and you're doing it to help the nephew, your approach will likely be different if things go wrong. |
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I have come close to buying a townhouse for sale on Trevino Circle.While browsing the net, I came across your website. I am a new immigrant, my wife's studying nursing in Georgian college and will be there for 2 years.I work in Mississauga. The reason for me wanting to buy is that I have a short term requirement and I see a rental demand (because I could not find good rental accommodation within my budget when I was looking) wherein I could rent the house after the 2 years. I am not sure if this is the right approach. Also how do you foresee the housing market in Barrie in the future (2 years down)? I am going to sign a purchase and sale agreement on the 15th of October.Any feedback before then will be greatly appreciated Thanks DJ I'm not sure that I understand your situation correctly. It sounds like you're thinking of buying a house now and living in it, then renting it out after a few years. Let me know if that's not it, but if it is... This will be a LONG answer, but here goes: You're buying at the top of the market. If you read my website you know that I apply the buy low - sell high strategy to buying homes for profit. You're buying high, not buying low. There is a way to buy high and still make money, and that is with rental income. At the moment, renters are moving out of apartments and buying starter homes with the same monthly payments as their rent. They are driving the real estate market all around the GTA > They buy a house and push a former first-time buyer into a larger home. Rents are going down now because so many apartments are becoming vacant. The experts that I read are saying that interest rates are rising. That will make it harder for new buyers to buy, and for recent new buyers to hold onto their houses. That will put pressure on house prices and they will drop over the next few years. The house you are buying will be worth less, if they are right. That will also mean that it will be less affordable for renters to buy. So they will keep renting, and rental rates will rise. That means rents will be higher. The short answer is, who really knows? I'd have to sit down with you and go over the numbers of what you want to achieve. It might be practical, it might not. Generally speaking though, if you're buying to rent out, you buy resale, not a new house. Hope I've helped! |
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My son-in-law purchased a house this Spring and had the house inspected. He recently turned the furnace on for the first time and found that it did not work and soot and carbon monoxide escaped. The furnace has to be replaced. The vendor did not disclose that there was anything wrong with the furnace. Would there be any recourse on the vendor at this stage? Joe It would seem logical to go after the homeowner, over the furnace, out of revenge. The difficulty is proving in court that the homeowner actually was aware that the furnace was not functioning properly and did not disclose it. You'd need to have some evidence that a furnace guy told the homeowner that it needed to be replaced. The homeowner isn't likely to volunteer that paperwork, if it exists. They might not really have known that the furnace was defective. What did the Home Inspector say about the furnace? They inspect the mechanical systems in the house and pass judgment. You have a report in writing from your Home Inspector that can be used in court. If he said the furnace was fine when it was so obviously failing, you're far more likely to get justice going after the Home Inspector. Your son-in-law paid a seller for land and a house of which the seller's knowledge was a tiny part. He paid a Home Inspector a few hundred dollars for 100% of his knowledge and a professional service, and it sounds like he didn't get it. Home Inspectors have liability insurance. It pays when they screw up and they get sued. I'm not a lawyer or a legal expert so what follows is only back fence beer bottle advice. Check with a lawyer but I THINK.... If you can do it yourself in small claims court, it's worth taking the Home Inspector to court to get the money to replace the furnace. If you have to sue in real court, the cost of the new furnace might be a fraction of the legal fees you'll pay if you finally get a judgment. From my own experience, if it takes a lawyer, just swallow your pride and chalk the mess up to life's lessons. It's cheaper than suing. |
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I bought a home with my wife and her parents put their name and house up as collateral for our house. They now want their name off our house. How do i go about this problem without selling the house? Dave I'm not sure if your in-laws are only on the mortgage as backers, or on the house as co-owners too. Do they want their names off as backers, or just off the title? If your inlaws are still willing to back the mortgage, and just want to be removed from the title as co-owners, your lawyer can arrange it easily as long as the in-laws are agreeable to the change. It's not something you would do on your own to save a few bucks though. Selling the house seems to be the only alternative you're considering though, so I'm guessing they want to stop backing you. The mortgage is a binding contract between you and the lender. It can only be changed if both the lender and you agree to the changes. They will not do anything to diminish their chances of recapturing their money if you ever defaulted on the mortgage. Someone has to replace the inlaws. You can't remove them from the mortgage as backers unless you have new equity of your own to replace theirs, or new co-signers. If you won the lottery or inherited enough money to replace their collateral, you could have paid off the mortgage with it and be done with it, so I'm guessing that's not the case. Is there another favourite relative waiting in the wings to co-sign for your debt? Have you talked to your lender to see what your options are? Your equity might have been borderline before, but would now be acceptable after paying down the mortgage for a while. Depending on how long you've had the house, you might have gained a lot of equity due to property values increasing, while your mortgage balance was declining. You might not be as poor as you think! |
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I am a single mother and have been renting the same apartment for approximately 25 years or more. I am now paying a rent of $954 and change per month...I am tired of renting and would like to own my own home. The problem is that the bank (Scotiabank) has only approved me for $151,000.00. Honestly, in the Scarborough area, these houses are NOT readily available. I have two parents that I need to be close to because of their health. How can I be approved for more than the initial (amount?) I am totally ignorant of mortgages, approval, costs and everything that is involved in this process. I desperately need help in owning my own home. Could you please advise me as to what is available for me out there. I would appreciate any help that you could give me. There are apartment-style condominiums for sale in your price range in Scarborough. The problem is that the bank considers the monthly maintenance fees to be part of the monthly loan payment they worked out for you. That means you would qualify for a smaller mortgage. The least expensive one for sale now is listed for under $120,000, which you would qualify for, but it's a one bedroom. If your kids are old enough to be on their own, you might have an option there. You can see the condos at www.MLS.ca (Sent her mls numbers) It's difficult to buy a house on one salary in the GTA. Most families own a house because both partners are working. Is there someone who could contribute as a co-owner? A family member, or a friend? They wouldn't necessarily have to be a roommate, although that's an option too. Do you know anyone who is looking for a way to invest in the housing market but also has limited borrowing ability? They would buy with you as a co-owner, and it would be a business relationship. You would both put in a downpayment and you would both contribute cash monthly for the payments. You would both have an equal share of the increase in property value. When the house is paid off, you would take out another mortgage to buy out their share at the new value of the house at that time. Other than that, there is really no way to get you more money than the bank has approved you for. They usually go to the max when they pre-approve a borrower. There are no grants or gifts available that I know of. You might try Habitat For Humanity. They build houses for needy people. I'm not sure if they do projects in the GTA though. They have a website at www.habitat.org but I haven't been through it. Good luck and please let me know how you make out! There are a lot of single buyers in your position who need inspiration. |
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If a person is buying a house and there is a existing mortgage can the house be rented to another party? The short answer is: the mortgage documents spell out what is acceptable to the bank and what the borrower is agreeing to do or not do when they accept the money. Each one is different. The long answer is: Banks frown on tenants. Renting a house to someone is like renting them a car. It's not going to be in the same condition, when they're done with it, as if the owner had it the whole time. The banks are obsessed with security. They want rock-solid guarantees that, if you default on your loan, whatever you put up as collateral (your house) can be sold for as much as possible. The tenants increase the risk that it can't be sold for as much as it was worth when you mortgaged it. They don't like tenants in the basement either. If you're buying a house with an in-law apartment, forget about using the rental income to show how you will make the payments; unless you're willing to increase the amount you're putting down. They assume the tenants are losers who will not pay the rent for 6 months and you will not be able to make your payments. No matter what your intentions are, if you are assuming a mortgage as part of a purchase, have your lawyer go over the mortgage before you buy. If I was your Realtor, I'd make the offer conditional to your lawyer's approval of the mortgage and, if renting out the house was crucial, I'd make the offer conditional to you being satisfied that you could rent out the house under the terms of the mortgage. |
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What happens if the buyer does not close by the closing date on the sales contract? Sandra The Agreement of Purchase and Sale, for a house, is a contract. Under contract law, both parties to a contract must fulfill their obligations in the contract. If one party fails to comply, the other party can sue to force fulfillment or to recover financial losses resulting from the incompletion of the contract. That's an expensive sleepless-night route, so it's better for everybody if both parties agree to an amendment to the agreement. That usually involves an adjustment of the price or other terms of the agreement to sooth the party that wanted to keep the original terms of the contract. Most people don't think up problems, so I'm assuming you're the buyer or seller in a deal that isn't going to close on time. As a Realtor I have a general knowledge of legal matters so I've answered your question in a general way. If you're in the situation you asked about, your lawyer can provide more appropriate advice on your situation and the consequences of each of your options. |
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I am in the process of building a home. I just went for a walk-through of the property. I had been informed that my property is close to underground cables. I was not prepared to see the big poles and metal boxes in a corner of my back yard. Will this un-sightly scene affect potential re-sale values of my home? M. I'll assume the pole and boxes are not in the middle of your rear or front yard and are not affecting your ability to use the land. In theory, your house would be less attractive to a buyer than an otherwise completely identical house and lot that did not have the unsightly electrical contraptions and poles, and yours should sell for slightly less. In reality though it's hard to put a price tag on the diminishment of value at resale. Junction boxes and TV-cable boxes are common front-lawn features in new residential subdivisions. I've never had a prospective resale buyer look at one and suggest that the house should sell for less because of it. It's just an accepted part of buying in a subdivision. Utility easements, running along the back fence and preventing permanent structures in that area, are common but don't affect values in buyers' eyes. Is a bus-stop in front of a house a good thing or a bad thing? People who need the bus would say it's a bonus. People who don't want the neighbours loitering in front, waiting for the bus, would say it's a detractor. Such inconveniences are a part of suburban life. When you buy a lot from a builder, if there is some added feature to the lot, (a ravine lot for eg.) the builder charges more for the lot. In a perfect world, your builder would have charged you less than the neighbouring lots without the poles and boxes. You might ask the builder about that, but if he tells you to fly a kite, it's not something worth fighting over. Being the first owner of a house is a privilege and a responsibility. I hope you enjoy the experience and remember me when you eventually sell and move on :-) |
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I have been looking for a building lot to buy and hold as an investment, or to build my retirement home on in the distant future depending on how things unfold. I'm confused by the vacant-lot listings that I have been looking at. Some claim to be worth more because of fees that have been pre-paid. Some talk about zoning. I'm not sure which ones are good deals and which ones are ripoffs. What does it all mean? Victor At one end of the scale is the lot that cannot be built on legally. At the other end of the scale is the lot that complies with it's zoning, has sewer and water and other services on site, has all development fees paid, and perhaps even has architectural plans approved by the local planning department. The first lot is worth far less to a buyer than the latter, and the lots in between vary in value depending on where they are in this development process. In theory, the value is based on the value of the final product, less the value of the work that still has to be done. Some lots cannot legally be built on. They must comply with the local Zoning bylaws, and be approved by the local watershed Conservation Authority. Some zoning issues can be appealed through a legal process, and your offer to purchase should be conditional upon that approval being granted if your lot is non-compliant. (You might have seen an earlier email from a gentleman who bought a lot, through the internet, that he can't access other than with a helicopter and that he can't build on.) There are strict regulations governing septic waste disposal. Your lot might not be large enough to legally accommodate a septic system. If it can't you must hook up to the local sewers. In many locations a hookup to the municipal water supply is mandatory, and expensive. Development fees, or lot levies, must be paid to the local municipality before construction can begin. Builders see them as a penalty for building. Municipalities see them an appropriate means to get the money needed to provide snow removal, garbage collection, schools and other services required by the people moving into the new houses. They are often over $10,000 even on a modest lot. Some municipalities, most in fact, require that a domicile be built on the lot within a specified number of years after the transfer of ownership. Your offer should be conditional upon you being satisfied that you can hold the lot and not have to build on it. There is another option that you might consider; one that custom builders choose when building on speculation. Buy an existing dilapidated house on a magnificent lot and do a tear-down when you're ready to build. If it's still liveable, you can rent it out and make some money while you're cruising towards your retirement years. If it happens that the economy has gone to hell at the time you're ready to retire, you'll at least have a house that you can struggle to make liveable while you wait for the world to recover. With the vacant lot, you'd be living in a tent. Building a house is a complex process involving many branches of government and much professional advice, ever before the building stage is reached. A good Realtor, like myself, can help you through the process and help you buy the best lot for your needs and resources, and avoid the nightmares. |
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How can I access land-locked property? What legal paperwork is required. I must clear brush by order of the fire dept. and I do not have access to do so. Can you please help? Ken It sounds like your first instinct is to take a legal approach, so I'm guessing you're in the USA. (In Canada, we take the friendly approach to problems first, then get out the hockey sticks for a battle if friendly doesn't work. Canadian lawyers are far less rich than their US colleagues.) I'd knock on the door of the most appropriate neighbouring landowner and, with a friendly smile, explain that I've been ordered to clear my brush in order to stop a wildfire burning down his house, then ask if my crew could cross his land for a few days. As for a legal right to cross their land for fire protection purposes, I'm not sure because I'm not a lawyer. I'd suggest you contact a local one and see how they recommend you handle the situation. It's possible that there could be some provision in the local laws to obligate your neighbours to allow access to your property for fire prevention, if they don't succumb to your friendly smile. Then again the access laws might only apply to fire fighters. |
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I own 5 acres of rural land in Tipton County, TN. I purchased this property in 1998 for $32,000. At the time of purchase this property it was listed through a realtor who said this was a fair price. It was owner financed for 10 years with a balloon payment. We are now trying to sell the land for $36,000 and have been told that it only appraises for $26,700. The property was originally purchased in 1994 for $15,000 according to sales data now available to us. I feel the realtor misrepresented the value of this property to us. Can he be held accountable for any losses we incur in the sale of this property? If we do find a buyer can they get financing for more than the appraised value? Carol To answer your last question first (in a round-about way) I'm not sure how banks in the U.S.A. operate but in Canada they will not take a mortgage on vacant land. A buyer here has to pay cash for the land, then approach the bank for a mortgage to get a house built. That's because our banks had a different policy in the past, but they lost tons of money lending money to speculators who paid $1,000 an acre for vacant land in the 1980's that was worth $200 an acre during the 1990's. Once bitten, never shy again! I'm wondering if your seller accepting a mortgage from you so you could buy this land is part of the overall problem you're in. Did you have your own Realtor when you bought, or did the seller's agent make up your offer? Anyway... To finally give you an answer, banks do not lend money to a buyer who is paying more than the appraised value of a property. Even if a buyer had most of the money and was borrowing 10-20%, or so, the bank could be held liable for not telling the buyer that they were paying too much for the land when the bankers had the appraisal report in their hand. They could be sued for the difference between what the land was worth and what they let the buyer pay. Which brings us back to the thrust of your first question. What was your house worth when you bought it and how responsible was the selling Realtor? I am not an "expert" on your area, so I don't have the answer that a local Realtor would. Your economy has performed differently and property values have reacted differently in your country than in mine over the last few years. Up here, they have gone up since you bought. In your area, I'm not sure. A Realtor or Appraiser in your area could pull up archival sales and say what it was likely worth when you bought. Having said that, assuming that you really did pay too much, the several thousand dollars difference between what you paid and what it is worth now is probably LESS than what you would pay in lawyers' and court costs to get a judge to say you were done wrong. They might award you court costs to bring you back to zero. Are you willing to spend the next 10 years in court getting back to zero? But that was my Canadian answer. Our judges only award people the money they have lost. In your country they give people millions for spilling a coffee on themselves. Have you consulted with a local lawyer to see what your options are? They can tell you how other people in your position have succeeded in court and tell you whether it's worth suing the Realtor, assuming you can prove he knew it was the wrong price. I haven't been much help have I? It's a complicated legal question that requires a lawyer's advice and it's over my head. Let me know how it works out! I'd love to know! Thanks again for visiting my website and for pushing the "send" button. |
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My home is in my name and my husband is a co-signer not a co-owner, Can I sell my home without him? Julie Your lawyer can advise you better than I can about your rights and legal obligations, so double check anything I say here. I'm not sure if you're in Canada or elsewhere. If you're in Canada, if your husband has lived in the house with you the house would be considered your "matrimonial home." In that case, you DO have to have your husband's signature on the listing contract with your Realtor/Broker, and on the actual Agreement of Purchase and Sale with the buyer. |
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Bill recently we bought a house that had a home inspection done on it. We noticed a leak. The real estate agent told us it was from a leaking pipe that had been fixed. Now 2 weeks later we find the basement leaks like a sieve. Can we go after the home inspector the sellers or the real estate agent? Its constantly leaking so there is no way they would not have known about it. Gloria My short answer is, I'm a Realtor and not a lawyer so don't act on anything I say without consulting with a lawyer but, it sounds like the sellers are the culprits. I doubt that the Realtor knew what caused the wet spots in the basement. Unless he lived in the house he would have relied on information provided by the sellers. It sounds like you bought through the Realtor who listed the house. A buyer's-agent Realtor should have been more suspicious and ensured that you found the source of the leak before you were committed to buying. As for the Home Inspector, if it was a dry spell and there was no evidence to suggest water was leaking through the foundation, the courts would find it hard to say he missed something that an average Home Inspector would have picked up on (which is what you have to do in court to win.) If it was a rainy day and there was water spurting through the foundation, or if there were water stains on the walls and crystallization on the walls to suggest a chronic moisture problem, the Inspector would have to be pretty incompetent to not notice. Then you might have a case against him. Read the find print in his report. If you concluded that the basement leaks after only living in the house for 2 weeks, it's reasonable to assume that the previous owners knew that it leaked. Was there a Seller Property Information Statement for the house? It's a large questionnaire about the house that the sellers fill out. Some real estate Boards require them and some don't. If there was one, and they put in writing that the basement is dry, you're in luck. If not, and you have nothing in writing demonstrating that they were asked if the basement leaked, I'm not so optimistic. In the end, it comes down to the costs of repairing the house compared to the costs of going to court. Quite often, it's not worth going to court. If the damage is small enough to go to Small Claims Court, it could be worth it. If it's larger, the lawyers fees usually are larger than the cost of just 'swallowing your lumps' and getting the house fixed. To finish where I started, I'd suggest running all of your information past a lawyer to see what your chances are, and what the costs will be. I'm sorry that your buying experience was so unpleasant. I'm sure it's hard for you to believe now but the majority of Realtors and home sellers are honest, and most houses are not defective. The real estate industry is continually evolving to eliminate experiences like yours. Things are getting better but there are still wolves among the flock. |
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Can i take over ownership of a house that's been abandoned? The taxes are due this year and there's no one to pay them. I want to pay the taxes and move in. Colorado Yes you can pick up a house by paying the back taxes. The municipality has to go through a legal process to get the right to take ownership of the property. Then they put it up for public auction, which is where you get to submit an offer. Unlike a typical offer though, you buy the house 'AS IS" and it's a cash deal. There are no conditions in the offer and you have to have the money up front, not subject to a bank lending you the back-taxes money. The municipality assumes no responsibility for making you aware of anything that is on the land or wrong with the property. Once you own it, you own it plus all of its problems. You might have noticed that a lot of sites that were once filling stations (gas-stations in Canada.) or auto repair shops, are abandoned. The site usually is contaminated by fuel spills and the cost of cleaning up the site is too high for anyone to buy it. The owner lets it go, the city ends up owning it but can't get rid of it and can't afford to clean it up. I'm suspicious of abandoned homes for the same reason. Presumably such a property has value. If that value is greater than the amount owing in back-taxes, why would the owner let it go? What does the owner know that you and I don't? Perhaps in your case the owner has died and there are no family members to take it over, or some other scenario. Be careful. Find out as much about the house and land as you can before you make a bid on the house. Get as much professional advice as possible up front to avoid a major headache later on. |
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If we have a co-signer to buy a house, do we need any money down? Djianne It depends on the policies of the lender that you are dealing with, and what the particulars are of each individual loan. A local mortgage Broker would be able to identify lenders that would be more receptive to you. |
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I am almost 10 months behind on my house and it is in foreclosure. Is there anyway I can keep my house? I now have a job and I want my house for my wife and children, Please Help.Chadwick You should talk to the lender who is foreclosing. If you explain to them what happened and demonstrate that you can now make the payments you might convince them to reinstate the mortgage and lend you the 10 months of backpayments or make some other arrangement. Lenders are in business to make money by lending it out, not by taking peoples' houses. They don't want to take your house any more than you want them to. Good luck! |
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If I list with a Realtor to sell my home, and it does not sell, am I, the Seller, held to the 120 period? If I decide to buy it if it's not sold (it's a divorce), does the holdover apply to me?I want to list and hope we will get a good price for our home, but if not, I might decide to buy my partner's interest. Thanks! Kim Check with your lawyer, but I can't see it being a problem. The "holdover clause" in the listing agreement ensures that the listing Broker gets paid if someone who was "introduced" to the property by the Broker (meaning they came through the house during the listing period) comes back and buys the house after the listing expires. You own the house, so nobody could say that the Realtors introduced you to your own house or that you were made aware that your own house was for sale only through the Realtors' marketing activities. To really cover yourself though, when you sign the Listing Agreement you could add a side agreement to it saying that the vendors as individuals are excluded as buyers from the holdover clause. Most sellers don't understand what the holdover clause means. I'm impressed that you did and that you picked up on how it might be a problem in the situation you're in! If I can help you resolve any other issues, or prepare your house for a top-price sale, please let me know! |
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I am trying to purchase a home and am approved for 80% LTV. The loan officer told me that the purchase contract for the home would have to state that the home is selling for 125000 (the appraised value) when the purchase price is only 96000 so that my down payment is covered. How will this affect the seller since he is really not making any profit from the sale?? Thank you for your time. Crystal I have some concerns about the situation that you've described. If the purchase contract says that you will pay $125,000 for the house, the seller's lawyer will insist that you pay $125,000 for the house when it closes. With contracts, what is on paper is what happens. For you to sign loan documents saying that you have paid $125,000 for a property when you have only paid $96,000 is, in my non-lawyer's opinion, fraudulent. Maybe I might have misunderstood what they are asking you to do though. I strongly recommend that you discuss all of this with a lawyer before you sign anything! Good luck with the purchase of your house! It's an exciting adventure and I hope it all comes together for you! |
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I recently purchased a home with my fiance, and now we're splitting and his name is on the loan but both of our names are on the deed. Does he has the legal right to sell this house without my approval? Conekia If your name is on the deed then your signature and your fiancé's signature both have to be on any documents related to listing and selling your house. I'm not sure what the divorce laws are like in Georgia. In Canada there is protection for the wife even if the husband owns the house. A local lawyer there could advise you on your options and rights. I'm sorry to hear that you're breaking up. I hope you're able to work things out quickly and easily. |
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I have 15 1/2 acres of land. i told my children they will split it 3 ways. One of my sons said he will turn his part into a subdivison. Can he do that? Louise I suspect that you intended that your children would all have a financial interest in the whole 15 acres and that they would split the proceeds 3 ways if they sold it. It sounds like they are thinking they can split the 15 acres into three lots so that they would each own their own 1/3 of it. Most municipalities have a lengthy legal process that has to be followed to create a subdivision. Even to split your land into 3 separate lots for the kids, that process has to be followed. In some municipalities, there are bylaws that prevent certain types of land being subdivided. I would suggest that you speak to a consultant or lawyer in Tipton County to see what your options are if you want the land split up. It is possible for you to leave instructions in your will to prevent the land being subdivided if you're opposed to it. You can even change the dead to make it impossible for any future owner to subdivide the 15 acres. Your lawyer can tell you how that works too. Thanks again for visiting my website and for sending your question. I hope you have many many years of life to ponder what your kids will do after your gone! |
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i want to purchase my mothers home. She says we need to go through a lawyer. What would closing fees be like? Your closing costs include legal fees to create the documents for the sale, plus any mortgage documents. You should contact a local lawyer to see what they charge for a typical transaction. I'm not sure if there a taxes associated with transferring property in your state. In Canada they account for a few thousand dollars on a sale. There are also closing adjustments to be made for things like prepaid utilities and water. Each case is different, but the main hurdle is coming up with the money to buy the house. If you can afford to do that, the closing costs should not be a major obstacle, just something to do your local homework on and budget for. Good luck on your purchase! |
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I would like to know after I have informed my bank that I intend to sell, do I continue to pay mortgage or do they wait until the house is sold? Ivan Unfortunately, the bank still expects us to make the mortgage payments even while the house is for sale. If you're having trouble making your mortgage payments, it's better to let your contact at the bank know as soon as possible. They can make some other arrangements. The worst thing you can do is stop making the payments and not communicate with them about why they are not getting your monthly money. They panic Banks make money by lending people money, not by stealiing their houses. They don't want to take your house. They want to find a way to make even more interest on the money you borrowed from them. Talk to the bank and see how they can help you get though the sale.Maybe a line of credit would give you the monthly cash to make the mortgage payments. |
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We are trying to find rent to own homes in Barrie or surrounding areas. Is there a web address for listings? Can you help us with this. Shannon I don't know of any rent-to-own-specific websites. You could try searching "builders AND rent to own." Some of the low-end builders in Barrie have rent-to-own programs to attract buyers. Rent-to-owns are rare in this seller's market. I can't remember seeing any in the 7 years that I've been selling here. I'm not sure if you're aware that the CMHC rules have changed and when you buy now you can basically borrow the entire cost of the house plus your closing costs. Maybe you don't have to settle for renting. Have you talked to a lender to see if you qualify for a mortgage under the new rules? |
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How do i get a rent to own house we would like to get a rent to own. Byrd (Jackson City TN) I haven't been able to find an online source of rent-to-own houses in your area. There are two other routes that you could try: Some new-home builders have rent-to-own programs designed to attract first-time buyers. Have you approached local builders to see if they can help? You could also find a local Realtor who can use his contacts to find a rent-to-own in the resale market. Sometimes an owner is willing to look at a rent-to-own offer, and a Realtor is your best way to find those owners. Good luck! When you find your rent-to-own, please let me know how you found it, and how it is working out for you! |
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If my parents have passed away how can I get the house signed into my name inexpensively? I'm an only child, a single mother & I don't want to lose our house. I have little money & can't really afford to get a lawyer. I don't know where to turn or what my options are. Can you give me any insight? Aimee First please accept my condolences for your loss. There is a legal process that you have to follow in order to take over your parents' assets, assuming they were left to you in a will. If there was no will, it's do-able but more complicated. I'm not a lawyer, so I can't answer more directly than that. I don't think I'd tackle the process without a lawyer's help though. If it's messed up, it can end up costing far more than the initial costs of using a lawyer. There are possibly some things that you could do for yourself, to save money, while a lawyer tells you which steps to follow. I would suggest contacting some local groups that provide services to the poor;, Salvation Army, food-bank etc. They might be able to recommend lawyers who provide their services for free or at a reduced rate for people with limited resources. Good luck with this. It's an unpleasant task at an unhappy time in your life, and I'm sorry you have to go through it. |
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I am considering acting as a guarantor on my niece's mortgage (she is re-financing and currently her credit rating is not good enough). Will this affect me when I want to lease a new apartment, for instance, as the amount of her mortgage will show up as a liability on my credit history? Thanks! Deborah My honest answer is (because I don't deal with a lot of leases) I don't know. I suspect that it won't affect your ability to lease, but, if it is a major concern for you, I'd suggest doing some research. You need to speak to the people on the other side of the table. Most big buildings have property managers. I'd suggest calling the people looking after a building that you would consider renting in, and asking them what you asked me. Don't give your name or details. You might have to call a few places to connect with someone who has their feet on the ground and will give you an answer. I have a question for you though. If you have the ability to buy and act as a guarantor, why are you renting? |
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Every rent-to-own is different. There is no standard formula to follow. The details are something that the buyer and seller work out while they negotiate the deal. Make sure your lawyer gets your intentions right in the agreement! Generally, the buyer makes an offer as if they were buying the house immediately, but there's an extra clause in the offer that outlines the rent-to-own part of the deal. The buyer will move into the house on an agreed date. Ownership will not change hands on that date though. It changes hands on a future date that is agreed to in the offer. Between the move-in date and the ownership date, the buyer pays rent to the seller. The seller sets aside an agreed-to portion of that monthly rent payment as a downpayment.on the house. When the ownership date arrives, the seller pulls out those accumulated monthly payments and applies them against the total cost of the house. The buyer then has to come up with the difference between the agreed-to sale price and the total of the monthly downpayment payments. Essentially, it's a forced savings program that helps renters get out of a rental and into their own home. There is also protection for the seller built into the deal. Usually, it's the seller who comes out on top in a rent-to-own deal.In any that I've seen, if the buyers can't make the payments, or can't get financing to complete the deal, the seller gets to keep the monthly "downpayments.' as a penalty. But as I said, each one is different and it depends on what the buyer/renter and seller agree to. How much you can get for yourself depends on your local market. Where I am, houses sell in a few days, so it's impossible to find a rent-to-own house. In your market, maybe it's hard to find buyers.. |
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My mother passed away in Feb 2005. I was willed the cottage. What do I need to do at this point? I would like to keep the cottage and the property but I am clueless as what my next step is.. Tamara First let me offer my condolences on your loss. We all dread the inevitable day when we have to say a final goodbye to our parents. There is no easy way to deal with the loss, and dealing with the aftermath can be just as trying. You will need a lawyer to lead you through the process of transferring ownership of your mother's cottage. I suggest that you go back to the lawyer that dealt with the dissolution of her assets and debts after her death. I'm surprised he didn't offer his help with transferring the deed. It's not something you should do on your own to save money. It's too easy to mess it up. As the lawyers say, you either pay them now, or you pay them twice as much later to fix what you screwed up. |
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We are currently looking at a rent to own proposal. Is there a difference between rent to own and rent with option to buy? We are wondering who is responsible for repairs on the property, roof, water system, sewage system...? What are the rights and responsibilities of the "tenant" and the "landlord"? Any information you have would be greatly appreciated. Thank-you! Dennis An option to purchase gives you, the tenant, the first right of refusal (meaning the owner is legally bound to give you the opportunity to make an offer) if the owner decides to sell while you're renting. Making an offer is your "option." With a rent to own, you are already locked into buying the house. The rent-to-own agreement is just like a regular Agreement of Purchase and Sale. You and the seller are both locked into you buying the house, just like a regular sale. The difference is that there are some extra clauses in the contract that allow you to move into the house long before the deal finally closes, and for the landlord to apply part of your monthly rent against the total purchase price that you both agreed to. The twist with rent-to-own purchases is that if the buyer does not complete the contract and buy the house, those monthy payments being made against the house are not returned to the "buyer." The seller keeps them as a penalty against the buyer for failing to complete the contract. So, who should pay for repairs? The seller would love it if the tenant/buyer paid for them. If the deal did not go to completion, the seller would not only get to keep the monthly downpayments, but would have had the house maintained for free during the rental term. Bonus! On the other hand, if the buyer did complete the deal, and did take care of maintenance, they could negotiate a lower monthly rent and maybe a lower total purchase price. (You could consider having the tenant pay for a Home Systems Warranty during the rental/downpayment period to negotiate a better deal.) As you can see, every deal is different. It all depends on the market and the intentions of the buyer and seller. In today's sellers' market, it's almost impossible to find a rent-to-own in our local area. After the market crashes or corrects, sellers might be more willing to consider it. Your last question is a can of worms for me. Does Landlord/Tenant legislation cover the parties in a rent-to-own? It's really a purchase situation with some funny details, so I would think NO, but the majority of the tenants monthly payments is still going towards rent, so maybe it's YES. That one is over my head, since I'm not a lawyer. I'll make some calls and update when I have some answers. Thanks for the chance to learn! |
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I am buying my condo "as is." I have been a renter there. There is mold in the air conditioner closet that has leached out into the hall bedroom carpet from water damage via an air conditioner leak. Does the seller have to recarpet or can he sell it to me in this condition. Doug, Maple, Florida "As is" means, as is. What you saw was what you get.unfortunately. Did you get the condo at a reduced rate because you bought "as is?" |
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I currently own a house and have decided to fix it up and sell it. I own a renovating and paiting business so I have decided to start buying fixing and selling houses. I have many questions however about what I should do and how I should go about it. My main concern other than what reno's should I do, is that I know capital gains can be huge. So if I sell the house I'm in (which I need to do to free up money) and move in to another am I going to have to be there a year before I can sell it. And of course my other question is what fix ups should I do and whats the best way to find out if the house I am buying will increase in price enough to make it worth while. Thank you for your time Victoria, Brantford Please see Renovating for Fun and Profit for guidance on the kinds of renovations that pay off. I love working with renovators so it's unfortunate that we're not in the same area! If we were, I'd tour the houses you were considering buying. I'd listen to your plans for renovating, and then help you choose your renovating options based on my knowledge of what the buyers are looking for. Then I'd take your plans for each house and give you an estimation of what each of them would sell for in TODAY'S market if those renovations were completed. You would use that sale price and your estimation of your renovating costs to determine the maximum price you can afford to pay now for the houses If I was a normal Realtor, I'd take you out and sell you a house and let you deal with the consequences. However, because I put my client's interests first, I have some words of caution for you and other people considering the same options. I'm an entrepreneur too and I know that when you're going into a new business there is no end to the number of people who will tell you that it won't work, you'll fail, you're crazy, my cousin did it and blah blah blah. Bear with me. Bad news first: I've been through the renovating and flipping process and I've concluded that it's not possible to buy, renovate and sell at a profit unless the labour is free. It only works if the homeowners are doing the work themselves. As a professional renovator, you might know of a way to do it. Please tell me if you do! I'd love to make a few extra dollars on the side by renovating. My other caveat is: The renovating craze started during the boom market in the 1980's. People bought old houses, fixed them up and sold them at a profit. They thought it was the renovations that made them money, but in reality the value of the land under the houses was going up even faster than the bills they were running up renovating. It wasn't the renovating and decorating that made the money. It was the increase in market values of ALL houses. We're at the top of the market cycle again now. Property values could keep going up, but the odds are that prices will stabilize or drop. You're going to have to keep that in your mind as 'Plan B.' What will you do if you buy, and renovate, and the bottom falls out of the market while you're doing it? Can you live in the house and wait until prices recover? See How to Sell Higher for strategies on selling in a depressed market. After all of that glumness, now some encouragement! I recently sold a house that I helped a renovating couple buy. They made a 45% profit on the house, over 2 years, by buying a distressed divorcing couple's home and cleaning it up. It needed paint and decorating, and some minor repairs. They put in a gas fireplace, new carpeting and flooring, redid the roof and put in a fishpond and a grape arbour outside. They spent well below 5% of the purchase price in renovating costs. The market went up about 10% while they were renovating. The rest was profit that came purely from their exceptional ability to decorate. You will need to find a local Realtor who shares your passion for renovating, who has the business sense to work through the profit and loss aspects of renovating, and who can help you find the right properties. Remember, it's all free! The sellers pay the Realtor's commission. You will also need to find a local tax accountant to work through the best ways for you to report your profit. The rules on Capital Gains are complex and you might be better off reporting it as regular business income, depending on the rest of your offsetting losses. As a renovator, you likely would have a difficult time in Tax Court explaining why you reported Capital Gains rather than an operating income. A good tax accountant is like a good Realtor. Finding a good one can save you tons of money! Good luck renovating! Let us know how it works out. There are tons of people out there with the same dream! |
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Hi Bill. I wish I had found you before I listed my house! I had it on the market for 6 months. We listed it at the price I needed to pay for all of the upgrades I put in. It didn't sell at $550,000. I dropped the price to $500,000, then the buyers came in. I had several lowball offers that I wouldn't consider. The last offer was reasonable and my agent stopped all showings while the offer was on the table. One of the previous buyers came back with another offer, but my agent told them to hold off because there was an offer on the table. We eventually sold to that last offer for $20,000 off my asking price. Did we do the right thing? Garry, Oak Ridges I'm infuriated when I hear stories like yours. I'll explain how offers work, then you can explain it to your Realtor who doesn't seem to understand the process. When a buyer makes an offer to you, they are locked into the terms they are proposing until the time limit on the offer expires. You have the options of accepting the offer, ignoring it, responding to it, or responding to any other offer on the table When you cross out the terms of an offer and send it back to the buyers as a counter-offer, their original offer to you is then null and void. Your offer is considered to be a whole new offer to the buyer. You are locked into the new terms you have proposed for the period you have given them to respond. They have the options of accepting, rejecting or counter-offering. When the buyer makes a counter-counter-offer back to you, that's a whole new offer back to you. You can walk away, you can deal with that offer, or deal with any other offer that has slipped onto your table. Yes, you should still have let buyers see your house even if you were negotiating an offer. Your goal is to generate multiple offers. You can't get other offers if you won't let potential buyers see your house.There is nothing that says you can't let other buyers see your house if an offer is on the table. To add more misery, when that earlier unsuccessful buyer came back with a new offer, their offer should have been put on the table for you to consider along with the second buyer's counter-offers. Furthermore, before making their counter-offers, the buyer you were negotiating with should have been made aware that another new offer was on the table. You likely would have sold for your asking price if your Realtor had worked the offers against each other. It's difficult for the average person to grasp what I've just explained. The scary thing is, most Realtors don't understand it either. You now have three options. You can do nothing, you could lake legal action to recover some money, or you could report your Realtor. You likely would not get anywhere in court. You would have to have a full-price offer, that was never presented to you, in order to prove that there was a buyer willing to pay full price for your house. The money that you would be awarded would likely only cover your legal and court costs. Discuss your situation with your lawyer though. It depends where you are in the selling process. If the deal has not closed, you might be able to get part of the Realtor's commission back if you threaten legal action. I'm not sure how much commission there is to get back though. I'm guessing that a Realtor of that caliber isn't working for a full commission. Your third option is probably the most satisfying, although it won't get you any money back. If you report your Realtor to the local Real Estate Board, they will investigate your complaint and take disciplinary action, but the outcome is not shared with you or the public. You can, however, file a complaint about your Realtor with the Real Estate Council of Ontario (RECO.) It is the body that licenses Realtors and their mission is actually to protect the public. They will investigate your complaint and the outcome is published on the RECO website. It's interesting to read the judgments already on the site. Your Realtor contravened the RECO code of ethics by not putting your interests first, and by not presenting all offers that were being made. RECO would probably find even more contraventions if they heard your entire story. I'm disappointed but not surprised to hear stories like yours. There are a lot of bad Realtors out there, but there are also a lot of good ones. My website is my attempt to educate the general public and help them recognize the good ones. Keep coming back! |
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I bought a freehold townhouse in August 2003 in the Whiby area. I hired a home inspector before purchasing the house and he did discover some mould in the basement and simply suggested to have it inspected by qualified contractor. He couldn't tell me more about it since the basement was completely finished and I opted not to break down the walls. From the outside walls, nothing was visible. I did most of the recommandations to try to fix the problem such as removing the vegetation from the house walls. We still have been getting some leaks due mostly to rain and snow melting in spring and it's been getting worse. I know for a fact that there has been some leaking before we moved in, maybe not as serious as now but the previous owner never informed us of the leakage problem. Can he still be held responsible for the damages after a year and a half later. What are my rights? Syvain Thanks for an interesting email. This will be a non-lawyer's answer to your rights question. Please consult with your lawyer before taking any action or making any decisions based on what follows: If your Agreement of Purchase and Sale included a properly written warranty, from the seller, stating that the basement was water-tight while they owned it, the seller will be liable forever if you can prove that they actually knew it was leaking when they sold it to you. If there was no warranty in the offer, did they provide any written information about the state of the house? Some real-estate Boards (like Barrie) require that the seller fills out a Seller Property Information Statement. (SPIS) answering specific questions about the house and property. The Toronto Real Estate Board does not, but some insightful Toronto Realtors ask their sellers to fill one out anyway to help eliminate buyer's doubts about the house to get a faster sale and higher price. If there was an SPIS for the house you bought, and if your Realtor put a clause in the offer saying that the SPIS was attached and considered to be a part of the offer, and if the sellers indicated that the basement was dry, and if you can prove that it was leaking, and if you can prove that they KNEW it was leaking, you might have a case. You can see by all of the "ifs." how complicated it gets, even with documentation. If you can prove that they knew it was leaking, you will have to decide if it's worth taking them to court to get a Judge to say that they were wrong and you were wronged. The amount of the judgment likely won't cover your legal costs. I'm not clear on all of the details of your transaction, so I don't know what your options really were. For the sake of the people who might find themselves with a mouldy basement in a house they are considering buying, I'll explain how I would advise my clients to proceed. Home Inspectors usually provide an estimate of repair costs for the faults that they find. In some cases, it makes sense to bring in a contractor for a more detailed quote to determine your costs for the repairs. Mike Holmes would want to rip the walls out to see where the damage was. That's hard to do when you don't own the house yet! It's a safe bet that, if the water is coming from outside of the house and the mould is visible on the basement side of the drywall, there is mould behind the drywall too. A contractor should be able to give you a worst-case quote for ripping out and rebuilding the basement. The source of the leak would be an unknown until after you bought. It could mean redirecting an eavestrough downspout, or it could mean digging up the weeping tiles When I work as a Buyer's agent, I help the buyers decide what is a reasonable price to pay based on what other similar houses have sold for. Similar means, warts and all. Every house has different faults. The Home Inspection report gives buyers a heads-up on the faults they are getting with the particular house they're buying. The real purpose of the Home Inspection is to uncover the faults that go beyond the run-of-the-mill issues that occur in similar houses. Townhouses in your neighbourhood, with a finished basement, should sell within a certain price range. They should not sell in that price range if the buyer will have to rip out the entire finished basement to remove the mould, then refinish the basement. While the Home Inspection clause was still active, I would take that cost of repairs estimate back to the Seller's agent and ask for a price reduction. If they won't reduce the price in the agreement, I would advise you to let the time run out on the offer and move on to another house. If they agree, I would do up the paperwork, and you would move into your new house with money left over to fix up the basement. |
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The only thing I found confusing was the explanation about a loan to renovate. You said your lenders only consider footage. I have been told that upgrading your kitchen, adding new sturdy windows, and etc. could also add to the value of a home. Perhaps I would be a little hesitant with learning that from your site. Lydia, Virginia The relationship between renovating and market value is difficult to put into words. Obviously I failed to explain it very well before, so let me take another stab at it. Yes, renovating does add value to a property. The problem is that it does not add NET value or SUSTAINABLE value to the property. Let me explain: Net Value: Let's say you have a house worth $100,000 in its current condition, then you spend $20,000 on a new kitchen. The house is not suddenly worth $120,000. It might be able to compete with similar houses with newer kitchens that are selling for $105,000, or $115,000. That's its new market value. Now, let's say you had a $100,000 mortgage on that unrenovated $100,000 house. (In Canada you can do that in principle.) If you borrowed another $20,000 to renovate, then defaulted on the payments, the bank could not sell the house and get back it's $120,000. They wouldn't consider loaning you the money to renovate because of that. If however, you had a $50,000 mortgage, and borrowed an extra $20,000 for renovating, the bank could still repossess the house, sell it, and get back what you owed them on the loans.They will only loan for renovations if you have enough equity in the house to cover the amount you are borrowing. Now for the bad news about how long your added value holds up. Sustainable Profit: Let's say your kitchen renovation was done this year. It would increase the value of your house this year. What about 5 years from now, or ten years from now? As you use the new kitchen, scratching and staining it, wearing out the hinges, the value that it adds to your house decreases with time. After a while, it's just another worn out kitchen. The value that it adds to your house decreases with time. The same applies to all renovations. The amount of the cost that you can recover when you sell diminishes with time, rapidly in some cases. Now, contrast that with the new family-room addition that your neighbours put on the back of their house. They increased the size of their house from, lets say, 1,000 sq ft to 1,500 sq ft. As time goes on, the paint might need redoing, and the carpet might wear out. Those are decorating issues. The size of the house is not going to decrease. It's always going to be a 1,500 sq ft house. When you approach a bank and ask them to loan you $20,000 to put an addition on your house, they will give you the money. They understand that the market value of your house will increase with the square footage, and that they can get their money back whenever you default on the mortgage. Is it possible to renovate and make a profit? Yes, but only if you can do the work yourself. Please read my answer to Victoria and read Renovating for Fun and Profit. |
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What I am wondering is, is there any sort of fees associated before you move into the rent to own? I mean I assumed of course there would be lawyer fees to draw the agreement up, but I came acroos things that mentioned an Equity Fund Payment???? Things about Down Payments??? Do you have any info on this. We would really like to look into this option but have such little knowledge on it. Any help you could give would be great. For some extra info we would be looking in Alberta I believe you are in Ontario are there large difference from province to province? Thanks so much. Jamie. Alberta Rent-to-owns are so rare in this seller's market that there are really no rules. Only a few builders offer them in my area and, speaking honestly, since those builders don't pay me to find buyers, I have not checked out their programs. I have not heard the term before, but I suspect "Equity Fund" is a fancy term that a builder came up with for the money that is being set aside out of each month's rent as your accumulating downpayment on the house. The downpayment is the money that a buyer takes out of their own pocket when they are buying the house. The rest of the price is covered by the mortgage from the bank. There are no other "fees" or costs that should be associated with a rent-to-own., in any province. I should ask, how is your credit? If it's good, you don't have to limit yourself to rent-to-owns. The CMHC rules have changed a lot. You might qualify for 100% financing on a house. Why limit yourself to sellers who have to settle for risky buyers when you could be looking at all of the houses in your price range? Have a look at my First-Time Buyer's Guide You might not be as poor as you think. The banks are falling over each other to lend out money. CMHC is throwing all of it's old rules out too. This might be your time! |
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My husband co-owns a 2 family house with his brother. My husband and I want to sell the house and and have both families make the profit and go our seperate ways, but his brother and his wife may want to buy us out. Which option would be more beneficial for us? Thank you. Kym There could be tax issues associated with either option, in New York or the US., that I'm not aware of. It might be worth running the same question past a tax accountant. From a real-estate perspective though, these are the possibilities that I see: Scenario A: The brother agrees to sell the house. You put it on the market and it attracts several offers. It sells for more than your asking price, and you split the money and walk away happy. The more likely Scenario B: The brother agrees to sell the house but there are some hard feelings and mistrust. Nobody can agree on anything. The house is listed too high, and takes a while to sell. Even then it's a nightmare getting everybody to agree on the terms of the sale and for a while even the buyer gets fed up and threatens to walk away. The house finally sells, for less than it could have, but it does sell, You split the money and walk away happy, but not as much. Scenario C: The brother wants to stay in the house so you sell him your share and walk away. The key to making it work, and to keeping the family peace, is for both of you to walk away happy. It has to be fair for both of you. How much is each half worth though? The real value of the house is somewhere between what the buyer in Scenario A and the buyer in Scenario B would have paid. An appraiser can tell you what an average buyer would pay for your house; sort of Scenario B+. If you're all agreeable, one appraisal would be enough. If you're having some disagreements, I'd suggest that each of you hire an appraiser separately, then use the halfway point between the two appraisals as the value of the house. It's the best approach for a marriage breakup or a partnership type of home ownership. Buying a house with someone is a business partnership. As with all partnerships, there should be an agreement in place from the outset to outline how things will be resolved if the partnership ends.It ensures that there will be no hard feelings or misunderstandings that make you end up in court. It's the secret to happy endings. I hope my advice helps you with your happy ending. Good luck! |
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WHAT UPGRADES IN YOUR HOME WILL MAKE YOUR PROPERTY VALUE INCREASE? Jackie Il USA One of HomeLife's competitors advertises statistics about the value that various renovations add to a home's value but, the real answer is, it depends on your house, your neighbourhood, and who the buyers are. The same renovation or upgrade would affect the value differently in a first-time buyer's neighbourhood than it would in a more expensive family neighbourhood with 3 or 4 bedroom homes. A second floor laundry is attractive to buyers of a large family home. In a newlywed's starter cottage an oversized ensuite bathroom with a jet-bath is more attractive. You need to find a Realer like me in your neighborhood who can assess your home and advise you how to attract the buyers. Having said that, the cheapest renovation that gives the best payback is paint. Use neutral colours and contrasting white trim. Kitchens and bathrooms really do sell houses. Concentrate your efforts there. Clean bright and modern sells. Don't forget the basement. Painting the basement floor, walls and overhead main floor structure turns an unfinished basement into a partially finished playroom. Beyond the cosmetic fixup, I encourage owners to spend money making the house look like a well-maintained home. Do the repairs. Many sellers think that buyers should be willing to buy the house and do the repairs themselves. If yours is attracting first time buyers, those repairs will send them running to the next house on their list. If it's more likely to attract seasoned home-owners, some repairs might be acceptable, but they will reduce the value of your home. Condition is one of the contributing factors in determining the market value of a home. The buyers step out of the Realtor's car at the curbside, and are continually assessing the condition of your home, subtracting from the price they will offer as they tour your property. Go out on the street and approach your house as if you've never seen it before. Which things make it look like a house that has not been well maintained? Repair them, starting from the outside and working your way in. First impressions are lasting impressions. Adding square footage to your house is the only way to add sustainable value to your property. Please read my answer to Virginia . You'll also find some useful tips in Renovating For Fun and Profit. |
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Can i buy land and put a mobile home on it?If so where in durham,barrie areas. Robert, Uxbridge ON I have been unable to find the underlying reason for the way mobile homes are treated in zoning bylaws. Fewer and fewer municipalities are letting people put mobile homes on vacant lots. I remember seeing a few in northwestern Ontario, but even there, when the zoning bylaws in municipalities are reviewed, they limit mobile homes to mobile home parks. I'm wondering if it has something to do with the difference in taxes that would be paid by a mobile home compared to a nice big house. I don't have a copy of the zoning bylaws from every municipality around Barrie. There might be a possibility to put a mobile home on a vacant lot farther north, in Tay or TIny Township, or in Severn Township. That's just a guess though. The reason most people don't end up doing it has less to do with zoning and more to do with financing. The banks will not lend money on vacant land. Few people in southern or central Ontario have the money to pay cash for a few acres of land. If they did, they would use it as the downpayment on a nice house. What is your financial situation? What is it about a mobile home that is attractive to you? |
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My husband are first time home buyers and everything is really confusing. Now we have been pre-approved for a loan from a lender. we have already selected our home and the offer was accepted. If fact the couple signed their end of the agreement today. Now since we have a pre-approval letter ect. all we are doing now is waiting for closing right? Is our approval for sure now, if the house is ok that is? The lender set up an appt. for an appraiser next week. I'm so afraid that after being soooo excited for my new home our broker is going to say, sorry for the inconvience I can't find you a lender after all. Is this possible????? Please, explain Thank you sooo much. Melissa, New Castle PA Relax. If your pre-approval was in writing - a preapproval certificate - then the lender is locked into giving you a mortgage, provided they get to approve the house too, That's the stage that you are at now. If the house is priced properly, it will pass the appraisal and you'll get the mortgage. If it is way overpriced, the lender will decline to mortgage it, but that's a good thing for you too. Why would you want to pay too much for a house, then not be able to get your money back when you try to sell it? I'm sure you can look forward to moving into your new house! |
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What is the best way to handle a situation wherein the seller has not been honest about the condition of the house and is attempting to avoid thoroughly completing repairs as was stated in the contract after the home inspection? The seller has signed a contract stating that he will pay for remediation of a plumbing leak (to be done by a professional) including the remediation of any resultant mold. Last week the fellow attempted to tell us that it was fixed when he had only dealt with the problem himself. Last night our insurance agent called and told us that there had been a water loss on the property in 2003. We were not informed about this. We're doing the walk through today and I am fearful about the results of these things. It's our first home and we are working with a realator (who we will be discussing this with tonight), but I would appreciate another professional opinion to assure me that we are handling these issues properly. Jacklyn in Montana You're at a critical point in the buying process. You should be discussing these developments with your lawyer. If the seller agreed to do something, and didn't do if, they have not fulfilled the terms of the contract, meaning it is not complete. It's complicated. Call your lawyer! Your Realtor did the right thing by arranging a final inspection of the house so you could see if the work had actually been done. I'm sure they will guide you properly now and use your lawyer to stall the process until the work is done properly, or kill the deal entirely. Was there a clause in your offer making it conditional to you being able to get insurance on the property? Most Realtors don't put it in, but if yours did, you can get out of the deal if you can't get insurance because of the water-damage claim in the past. Buying a house, especially the first one, is a stressful experience. I was physically ill, from nervousness, the night I put an offer on my first house. Having something go wrong with the house only makes it worse. Relax. You'll get through it. Either the deal with fall through and you'll find an even better house, or you'll buy it and move in and deal with the problems you bought. Please let me know how it turns out! |
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If i payed for an appraisal for this house i want to purchase, and the house fell out of escrow & i am unable to purchase can i get the money back for the appraisal fee? Anthony, San Bernadino Up here in Canada, it's the lender that orders the appraisal. They hire an independent appraiser to value the property and they pay for the report. Then they bill you for the cash they laid out for the report. It's likely the same there. When a borrower is negotiating the terms of their mortgage, and shopping their mortgage around to different lenders, it might be possible to negotiate a refund arrangement. If you didn't do that, I'm pretty sure the lender will be expecting you to pay for the appraisal. It's easier to ask someone to pay for something when they see themselves making money from you. It's not so easy when they will never see you again. If you do manage to get out of paying for it, please let me know how you did it! I'm sure other buyers would like to know too. |
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My husband and I land-contracted our home that we still owe on; for just one year, ending Sept 2005; They have been late with payments since Jan 2005 and now they havent' made April's, May's and June's payment; Can i evict them and sell the house to someone that will pay our mortgage off and not ruin our credit. We are renting a place and cant afford to pay the land contract house payment for them and our rent; please help me; i cant get a response from anyone Angie, Kentucky If your land-contract was drawn up by a lawyer, there would have been provisions in it spelling out how you would handle a situation where the other people did not pay you as they agreed to. Under contract law, they have not completed their part of the bargain. There are legal steps that you can take to get them out and get the property back in your hands. I'd recommend that you consult with the lawyer that did the original agreement, or with another lawyer, to see what your options are and how you should proceed. |
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MY BROTHER IS ON THE DEED TO MY HOUSE. THIS PAST NOVEMBER 2004 HE SHOWED UP AT 2:30 IN THE MORNING---HE IS RUNNING FROM THE LAW AND KNEW THAT I WAS LOOKING FOR HIM TO SIGN A QUIT CLAIM DEED. I HAD TWO POLICE OFFICERS WITNESS HIS SIGNATURE ON THE QUIT CLAIM DEED. HE WAS HERE LESS THAN 20 MINUTES AND AGAIN ON THE RUN. I HAVE NO IDEA WHERE HE IS. CAN I BRING THIS TO THE STATE RECORDER TO HAVE HIS NAME REMOVED FROM THE DEED? WILL IT HAVE TO BE NOTARIZED EVEN UNDER THE CIRCUMSTANCES? I HAVE BEEN TOLD THAT I CANNOT USE THIS EVEN WITH THE TWO WITNESS SIGNATURES BECAUSE IT WAS NOT SIGNED IN FRONT OF A NOTARY. IS THIS TRUE? IF IT IS--HOW CAN I GET HIM OFF OF THE DEED? Laura, Tennessee Unfortunately, I don't have the expertise to answer your question. I'd suggest that you contact a lawyer who knows the local laws in your area. Then let me know what they say! Our offers and documents are considered binding contracts even though a notary doesn't see our clients sign them. I'm not sure why the deed would be elevated to another level. |
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I sold my house in 2000 for $ 775,000. I had a real estate agent handle the sale. In the contract she put the closing date before the date on which the buyer had to get his financing. I had the problem of not knowing if I would have to move out on closing date or not. I realized this only a few days after signing the contract. I had the problem that I couldn't even buy another home because when I put the contingency "dependent on sale of my home" the other agent woulldn't accept. She was and is a very experienced agent. Was it legal to do what she did ? I still get nightmares when I think about the situation. Thanks in advance for your answer. I'll give you my Canadian answer first, then my USA answer. Under contract law, if both parties understand what they are agreeing to, and commit to doing it by signing the contract, (with a few other criteria) anything in the contract is legal and binding as far as that contract is concerned, UNLESS they contravene a statutory law or the country's Constitution in the process of actually doing what they agree to do in the contract. In your deal as you described it, there was nothing illegal, but it was very very bizarre. If the buyers had NOT been able to get financing, there would have been a period when ownership had been transferred to them, you would not have had a legal right to be on the premises, and they would have had the legal right to sell it or do anything else with it, even though no money had changed hands. They could have sold it, pocketed the money, and left the country without paying you, or any number of scenarios. What did the offer say would happen if they did NOT get their financing? Even if they were nice people and gave you back the keys, your legal fees would have doubled if you had to go through the whole process of transferring the deed back into you name. I have not seen the whole offer and don't know all of the circumstances around the offer. There might be other things going on that makes the weird part make sense. You were right to be worried though. You would have been right to say "Stop, I want to talk to my lawyer" when you had your first suspicions about the dates on the offer. The lawyer might have said, "Don't worry!" though. In the USA, the escrow process (researching the actual boundaries of the land being traded) creates a situation where the money and keys have changed hands, but the buyers don't know if they actually own the property and can't get their names on the deed for a long time, sometimes for over a year. (At least that's my understanding so far. I'm still trying to figure out escrow.) So, maybe the thinking is that it's not such a big deal if the title is up in the air for the seller for a few days. My advice is that you contact a lawyer there and run all of this by them if you are considering legal action, or even to ease your mind. It's unfortunate that there isn't a local Realtor's website to go to to get answers to your questions. Realtors from your country do use MoreForMyHouse.com as a source of information. I'll extend an invitation to them now to E-mail me and let me know if your situation is normal or as bizarre as it would be in Canada. Who's out there who can help? E-mail Bill. Stay tuned to see if there's a response. Thanks again for your challenging question! |
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We recently had our basement renovated, and had a deck put up in the backyard. The contractor finished the major jobs a week later than agreed upon. It has now been three weeks, he promises to show up but never shows up to complete the job. My husband and I have called this contractor every morning, and several times during the day, he does not answer his phone. He called one day early in the morning, around 6 a.m. to ask if he can pick up his tools, and promised to show up the next morning to complete his work, to date he has not shown up as promised to complete the job. What should be my next course of action? How long can I wait until I can take legal actions again himI I cannot use the basement as intended. What are my choices here? Sherry, Mississauga Hi Sherry. Your Email address didn't work. Thank you for visiting my website and for contacting me about your problem. You didn't mention if you had paid the contractor in full. There's usually a final payment that is made after the homeowner is satisfied that the work is completed. That keeps the contractor coming back. Once he's paid off, he has no reason to complete the unfinished work. I'm not sure what your legal options are. A lawyer can give you a better answer and I suggest that you contact one. As for fixing the mess, please go to the Mike Holmes website. If you submit your questions to them, they might be able to offer some suggestions. If you're lucky, they'll do your repairs as part of their HGTV show! Good luck with your deck! It's a nightmare when things like that go wrong. and it's the kind of the thing that scares first-time buyers about owning a house. Everything has a solution and an end though. Keep at it! |
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My mother passed away some time ago and now I need to assume her reverse mortgage. Do I require the original deed to the house to transfer to my name? My mother was not a very good record keeper and I can not find the deed anywhere! Where would I get a copy of the deed...who deals with this sort of thing? Michelle, St Catherines I'm sorry to hear that you lost your mother. It's a loss that we all have to face some day, and we all dread that day...well, most of us The actual deed for your house is at the Land Titles office for your area. What your mother would have had is a copy of that one. It would save a bit of money if you had the copy, but your lawyer will send his clerk to the Land Titles office to get a copy so he/she can prepare the paperwork to transfer ownership to you. That's your next step;. A lawyer. They do the deed stuff. Are you able to assume the reverse mortgage? They are new and we don't know a lot about them. Please let me know how it works out! |
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I've been married for 8 years and have 2 children. My name is not on the mortgage or deed to our home and my husband feels its not necessary because we have a will. My family says will or no will my name should be on the deed. I know my husband had troubles in his prior divorce dealing with these matters and perhaps he doesn't want to be bothered with adding my name but if it's important I want my name added and want to be able to explain why it's important. I really appreciate any advice you can offer. Many thanks Kristi in New Jersey The short answer is, there is no real-estate related reason for both spouses names to be on a deed. There is a divorce-related reason that might make it an issue though. In Canada, where I live, the laws are such that the husband cannot sell the house without the wife's signature, and then the wife is entitled to half of the profit on the house. Her name does not have to be on the deed in order to do all of that. I don't know what the laws in NJ are like. If they are the same there, the names on your deed is not an issue. If the divorce laws are different, you need to know how different they are and if you still need to be on the deed. Your husband is right. If he dies, you and the kids will inherit the house. If you see yourself living in domestic bliss with him forever, your family's concerns should not be creating a rift between you. If you are not so happy, and wondering what your options are if you leave him, then it is an issue that I don't see you resolving before the divorce. There is no way that I can think of to convince him that he should sign over his half of the house in either scenario. Subsequent E-mail to Kristi the next day: I thought about your situation overnight and I realized there is a financial angle to both partner's names being on the deed. When you take the sale value of everything that you own, then subtract any money you owe, what is left is your "equity." Today, your personal equity does not include your share of the house because you are not on the deed. You only have access to the inherent value of that asset if your husband dies or if you divorce and settle. If you went to borrow money now, the bank would not let you use your share of the house as collateral because you don't own it as a partner on the deed. If you were on the deed, you would be a part-owner, presumably a half-owner. You could borrow money, to start a business for example, by putting up your share of the house as collateral. Having your name on the deed would give you more financial options in life. Presumably it would be easier for you to get credit, to borrow money or apply for credit cards. I'm not sure how to take that to the next step and convince your husband that he should sign over your half of the house. If you were starting a business by signing over the house, you'd be putting the family home at risk. He could stop you as the other owner. If he's a no-wife-of-mine-is-going-to-work kind of guy, he might ask why you need credit cards other than his. (Follow-up: Good news. Divorce is not in the future for Kristi and her family.) |
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I want to start a corporation that purchases and sells houses and want to establish this company with purchasing my current home within that company. Is this possible? Rozy, Toronto Yeah. As long as the purchase is approved by your corporate Director(s), you can transfer ownership from you to the Corporation. There might be tax reasons for not doing that, or there might be tax reasons why that's a great idea. If there's a mortgage on the property, there might be a problem with the lender if ownership changes hands. As a Realtor, I can help you buy and sell houses. As your "agent" I would have a responsibility to make sure that you consulted with other professionals. You need to consult with a corporate lawyer and a tax accountant to ensure that buying and selling those houses is done in the right way and in your best interests. Then call me and we can buy and sell houses together! |
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I have accepted an offer to purchase my home. The subjects have all been removed and the deposit is in trust. My wife is getting cold feet about moving. What will happen if we break the sales contract? Keith, BC Canada The short answer is, it's sold. Your only hope is that the buyers might also be having second thoughts and want to get out of the deal. Any contract can be modified or eradicated if BOTH parties that signed it want that to happen. It's just a matter of signing an amendment. If only one wants the change, it's going to put a lawyer's kid through College. You didn't mention where you're going after the deal closes. If it's to a better place, the pain of moving will be easy for her if she's focused on the 'better' part, not what she's leaving behind. If it's to a worse place, you're likely selling out of necessity and there isn't much choice if you want to keep your life together. For better, for worse, till death do us part, and all that. You have each other, and you'll endure it or enjoy it, as the case might be. Wow I sound like Doctor Phil. Anyway, her cold feet are about a fear of what's coming next. If she sees the good things in the move, she'll be less nervous about it. Good luck! Thanks again for getting in touch. |
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I have recently purchased a home, and I'm preparing to move, but my landlord is stilltrying to hold me to my rental agreement and force me to continue to pay rent on the property that I'm moving from. Is that legal? Tonja, Jackson MS It depends on your rental agreement. It's a legally binding contract. If you just moved in and you said you'd be there for longer, then it's binding. If it's been a longer term, you might be able to move out. You need to find out when you're able to move out under that agreement, and how you make that happen. It's all in your rental agreement or lease. |
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The cosigner of our house won't sign off on our house that has been sold. Ingrid, Sask Can Does a co-signer have to sign off or have any responsiblities when we sell our home? Victoria. Somewhere in Canada Your mortgage is a binding contract between you and your lender. Each lender writes its own "Standard mortgage contract" and the definitive answer to your question is in the fine print of your own mortgage, somewhere. What I think your mortgage should say might not be what yours actually does say though. Generally speaking, the co-signer isn't in the picture unless you bail on the mortgage. By "co-signing" they agree to come up with whatever money you owe the bank if you don't make your mortgage payments. If you were selling, and paying off the mortgage in the process, I don't see where the co-signer should have any say in you selling or not selling. They are off the hook if you sell and the mortgage is paid off. On the other hand, if you were selling your house at a loss, making them responsible for coming up with the difference at the bank, I can understand why they would want to stop the sale. Back to your mortgage contract. Does it give your co-signer the right to stop the sale in that circumstance? In the real world, when my clients have questions that are not in my area of expertise, I refer them to the experts so that their best interests are protected. Despite some of the public's expectations, Realtors don't have the same expertise and knowledge base as mortgage brokers and lenders' mortgage representatives, or lawyers. I'd suggest you call your lender's mortgage representative and ask them the same question. If you don't get a straight answer, your lawyer can help you interpret the details of your mortgage contract, and determine what your options are. Congratulations on your sale! by the way. |
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My husband and I are a year away from paying off our house and we'd like to either rent out our home and purchase another, or buy a rental home or even a du-plex or tri-plex to supplement our income. I was wondering if we can use the equity in our house tax free to accomplish that since it is an investment for our retirement, and if not, what would be the best route to go so we accept the least amount of tax...Thank you so much! I wish our capitol gains tax was the same as the United States!!! Nicole, Lethbridge There are ways to get around the capital gains tax on second properties, but I can't remember the details of how they work. It's even a challenge to find a tax accountant (which I'm not) that is up to speed on that area of the tax laws. Keep in mind, you only have to pay capital gains tax when you SELL the rental property. If you keep it forever and live off the rent, it only becomes an issue for your kids after you die, well, aside from the profit you make each year. The tax accountant can help you with that too. Taxes are a part of any successful business venture and should not prevent you from acting. There are many people living off the rental incomes from multiple homes, and they started off just where you are now. Good luck with it! |
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We are selling our house and have accepted a conditional offer. We have other parties interested as well. If an unconditional offer comes in and the first offer is put on notice do they have to match the competing offer or simply remove their condtions?Andrew, Ontario It's a common misconception, among sellers, that existing buyers have to come up in price to match any new offer that comes along. In reality, the purchase agreement that you have with the buyers is a legally binding contract under the exact terms (price, dates etc) that are specified in it if the buyers remove their conditions. It's a done deal as is it. Most often, the situation that you describe occurs when the buyer is trying to sell their house and they make the offer conditional to their own sale. That clause allows you to let other buyers see your house and, if another offer comes in, the first buyers will have the options of removing all conditions and buying the house, or pulling out and letting you sell to the other buyers. Those are their only options. Most sellers, and Realtors, don't realize that even if the offer is only conditional to the buyer getting financing, or a home inspection, you CAN still let other buyers tour your house. You just can't sell it to them yet. You CAN negotiate "backburner" offers with other buyers but those new offers MUST have a clause making them binding on you only if you can get out of the deal with the first buyers. I can't think of a situation where any condition in the original buyer's offer, other than the "sale of purchaser's property" clause, would force them to take action because of another buyer's interest. Getting a house sold is the fun part for most Realtors. Getting everything done properly in the contract is where a Realtor earns his keep, or commission. For me, it's just as much fun as selling the house. Congratulations on your sale, and for having so many buyers interested! |
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Can two people buy one duplex? If so, how can the property be "divided?" Cary, Austin Tx There are ways for people to buy a single property and share ownership...well, in Canada that is. I am pretty sure the same options are available in other countries. Up here, the options are "joint tenants" and "tenants in common." The difference involves how the property ownership is shared equally, or non-equally, and what happens when one of the partners dies or sells their share. Anything is possible under the law! It's all in hiring the right lawyer to write it up :-) This is where I cover my butt and say get legal advice about anything I've said. Good luck! |
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We have a contract on a home advertised for 2600 sq. ft for 325,000 in North Carolina where other similar properties have sold for 122.14 a sq. ft. When we recieved the appraisal they only found 2340 sq. ft. From day one they misrepresented the square feet and we feel that it would only be fair to multiply 2340 by 124 a sq. ft. and offer then close to 295,000 for this home. We are taking into consideration location and updates. Do we have a legel case with the realty board because of the obvious misrepresentation of sq. ft. and if the deal falls through because of it could reatlors be laible for any of our incurred expenses like storage, and living in a hotel expenses because we have everything planned already for a July 28 closing. Or could they be laible for the difference between the last buyers offer of 315,000 and our appraisal offer. Claudia, Hartford CT If the house is a resale and it's size has been knowingly misrepresented, then you should be talking to your lawyer. With resale houses, factors like the lot size, building size, condition and age determine the "market value." If any of those factors have been misrepresented, your Realtor would have been compromised in advising you on the expected market value of the house and on an appropriate offer to make. You would be justified in considering legal action. You're talking about dollars per sq ft multiplied by square footage though, which leads me to believe that you're buying from a builder. With builders, they often take the above ground square footage and add on the carpeted stairs to the basement and that finished area with doors at the bottom of the basement stairs. By regular real estate conventions, it's not accurate, but they are operating outside of the MLS system. It's buyer-beware with builders. Not so with Realtors. Did you have a buyer-agent's Realtor working with you? Is it a new house from a builder or a resale? |
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How is an attic divided in a shared freehold if it is only accessible via the top flat and has nothing in it that supplies the flats below? Hilary, Dorset UK The short answer is, I don't really know for sure. Let me ramble on for a bit. In a side by side duplex, you would own the attic and basement space over and under your unit. I'm assuming you're talking about a duplex where one owner lives on the ground floor, and the other owner lives in an upper unit. (We don't have duplexes like that in my area.) I would assume that some provision would be made in the purchase price of each unit to account for access to the adjacent spaces i.e. the basement/cellar and the attic. If you could NOT use the attic, but the lower owner could use the basement, I would expect that you would pay less for your half of the house. If you both had access to useable space, I'd expect you to each pay equally for your halves of the house. Is there some dispute in your house? Why do you ask? |
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If i am the co- signer on a home, Will i lose my first time home buyers rights, and what are the benefits for first time home buyers? David, Whitman, Ma I'm up in Canada, and I'm not sure what incentives there are for first-time buyers in your state, or in the USA. Generally speaking though, when you act as a co-signer for someone else, since you are not actually buying, you can still take advantage of the incentives and benefits being offered to first-time buyers. Thanks for your question! |
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How valid is the following clause in the OREA agreement of Purchase and Sale? "The Seller warrants and represents that all electrical, pluming and mechanical components and any appliances included in the Purchase Price shall be in working order on closing" We just purchased a two-year old house, privately. We had a two hour walk through inspection done (which revealed some minor problems), we saw the house twice before closing - one month before and four days prior... we move in and discover the air conditioning (during a major heat wave) is not working. We call in a service and it's a major problem that just didn't "happen" and the repair will run us between $700-1300. What is the likely hood of us successfully having the owner uphold the above clause? Christina, Markham You mentioned that you bought privately. Was that OREA warranty for the mechanical systems actually in the offer? If it was, save your invoices from the A/C service guy and call the lawyer that handled your deal right away! If you can prove that the sellers knew the A/C wasn't functioning, they owe you money. Did you have a home inspection done by a qualified Home Inspector? Did he test the A/C? If the house is only two years old, does the manufacturer's warranty cover it, or did the builder provide a warranty that applies to you? Did you buy a home-services warranty which would pay for those repairs? So many questions! But seriously, call your lawyer A.S.A.P. |
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I bought a business for $40,000 without a financing condition. Now (after closing date) the deal is falling apart because I dont have the money. Can you please tell me what the Seller can sue me for. Masha, Toronto I'll preface my answer by telling you that I'm not a lawyer and that you should not take any action based on what I say before you consult with a lawyer. They could get a court order for something called "specific performance" meaning that they force you to buy it. If you can't get the money to buy it though, there's no point in them paying money for legal and court costs to force you to do something that you can't do. They could sue for their losses, but they would have to show that they have lost money because of what you did and the things that they did when they believed you would come through. Did they lose money because they thought you were buying? Did they use your offer price to make an offer on another place and they will be on the hook for that offer? Even then, the judge will still make them partially responsible ( along with their lawyer and your lawyer and Realtor.) In the end, it's just not worth it for the sellers to hire a lawyer and pay court costs in the price range of the business that you have the offer on. I think it's unlikely that they would sue unless you were not willing to compensate them in some way. Even then they would have to think twice before paying to sue. You could probably get out of the deal by turning over your deposit to the buyer. Deals fall apart all the time and as long as you can offer them something for a settlement, they will accept it and let you walk away. Feel them out before you make that offer though. Let them negotiate you into it. Good luck! Don't give up on being an entrepreneur. Walt Disney went bankrupt 7 times and had a nervous breakdown before he opened Disneyland. |
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I have an irresponsible son therefore he and I have agreed to execute a quit claim deed and I pay him the equity of his house. Given that there is still a mortgage, can I simply take over the payments and assume ownership after I file with my local county? Ben, Huntsville AL Property ownership can be transferred between parties as long as everybody is in agreement and the contract is legal. The deed transfer isn't so much of a problem, but the mortgage is. If the mortgage is not assumable, you can't take it over. The lender, however, should be willing to renegotiate a new mortgage with you, as the new owner. The payments might even be better for you depending on when your son bought the house and how different the mortgage market is now in your area. Good luck! |
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What is a schedule "B"? Jeff, London ON There isn't enough blank space on the pre-printed OREA Agreement of Purchase and Sale form to write in most of the conditions that we use in today's modern offers. Schedule A is attached as an addendum to the offer to make space for clauses and lists of included/excluded items. Sometimes there are other things to be described, and they can be put in as additional schedules. When I do builder's offers, I attach the plans as Schedule B. There can be as many Schedules as there are letters in the alphabet, or combinations of letters. |
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We bought a small home in Welland and had a building inspection. There were no apparent problems and so we completed the deal. When my husband started working on the home he found powder beetle damage, water damage and many more problems. The home does not have a basement and the problems are under the home. Do we have any recourse after the first year to get either the former owner or the building inspector to take any responsibility? Donna, Newmarket I have been waiting for some information from the Ontario Association of Home Inspectors before getting back to you, but I"m still waiting, so let me answer with what I know already. To get any legal satisfaction from the homeowner, you'd have to prove that they knew there was water damage, and bugs. That's pretty hard to do. You're next option is the home inspector. There's usually a thing in the home inspection report about areas that they could not inspect, such as the insulation in the walls, or other hidden areas. Does your report say that he was able to inspect the crawlspace? If he could not inspect it, you're out of luck. If he did and found nothing wrong, you'd have to find an expert home inspector to inspect your house and say that a typical home inspector would have spotted the faults in your home. That's where I am with the OAHI. I'm not sure what the current status is with respect to complaints and their liability insurance. The home inspection field is an evolving one, and it gets better for the clients every day. I'll let you know when I get some answers! |
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My Neighbour is not cooperating to put up a side fence to enclose each one's back yard. I have a dog and I cannot leave him in my back yard. Without a fence it is an open space. I suggested to my neighbour that we will put up the fence and share the cost ( basic ) equally. He is not interested. Is there any legal obligation for my neighbour to share the basic cost of the fence if I put it up initially at my own cost. Yes, I have few quotations from couple of Fence companies. I will go with the lowest quotation. Is there any office that I can seek a legal permit to do so and claim half of the cost legally from my neighbour? Leo, Mississauga In the past, there were municipalities that had the kind of bylaw that you're hoping for, but they were rare. The laws are a cascade of power.. The Constitution and the Charter of Rights override federal laws. (That's why gay marriage is legal now.) The federal laws override the provincial laws, and provincial laws override municipal bylaws. All of those override workplace policies. I suspect that, at some point in the past, some fence guy's neighbour's right to be the master of their own castle at the Constitutional level overtook the local fence related municipal bylaws, but I don't now for sure what happened. The end result for you is, No, your neighbours most likely cannot be forced to pay for their half of the edifice you are erecting on your lot lines. To keep things civil between you, can I ask you this: If the tables were turned, and you were having trouble making the mortgage and MasterCard payments, daycare costs, and were eating Kraft Dinner 4 times a week would you welcome a bill for half of a $3,000 fence? Your neighbour's reluctance to contribute is most likely related to their own financial problems, and not an aversion to your fence or your reasons for needing it. Cut them some slack. It's Canada. If they are not helping to pay for your fence, it's for reasons that they don't feel comfortable talking to you about. It's not about the fence, or you. Keep it friendly. Or maybe they're rich and you didn't mention that :-) |
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My brother just took possession of a 2 storey home in Stoney Creek that has a completely finished basement. He had a certified home inspector come in for an inspection prior to firming up the deal in June of this year. The lower part of a basement wall, the baseboard, and the carpet in one area of the basement has considerable water damage that was clearly there prior to the closing date, however, it was not disclosed by the vendor. The house was built in 1999. Today, we found further water damage throughout the basement behind the insulation. He hasn't even been in the house for a week and we are tearing up parts of walls to expose the problems. Who is liable for these repairs? Basically, we are going to gut the outside walls in his finished basement to correct the problem. Two real estate agents were involved in the transaction. The home inspector came back and only now discovered the problem because it was hidden by furniture during the original inspection. Please help. Nick, Hamilton ( Hi Nick. You're email address didn't work. I hope you've come back to the site to see the answer.) Thank you for visiting my website and for sending your question about your brother's basement. It's a common scenario. Before taking action based on anything I say, I recommend that you discuss your (brother's) options with the lawyer that represented him in the deal. The lawyers are the liability experts. Us Realtors just help people buy and sell houses and ideally involve enough outside expertise to keep them out of trouble.Having said that... The home inspectors' reports all say that they are not responsible for finding faults that were hidden from them. If there was water behind the drywall at the time of the inspection, he might have detected it with a moisture meter, but he would not have known about water damage if the drywall was not wet at the time. I'd have a problem with him not moving a couch to inspect the walls, but if he encountered a large piece of furniture that one person couldn't move easily, he did what most home inspectors would have done, and you'd have a hard time going after him. Does the basement smell musty? That should be a red flag for a home inspector. As for the Realtors, they only know what the homeowner tells them (on the listing side) or what the home inspector tells them (on the buying side.) If you find out that the listing Realtor knew about the water damage, get back to me. That's a whole other story! Did your brother see a Seller's Property Disclosure Statement? It's a detailed form that the seller fills out to disclose faults. We use them in Barrie, but they are optional on the Toronto Board. I'm not sure if they use them in Hamilton. If the seller filled one out and said there was no water damage, AND if you can prove that they lied, you'd have a chance of getting some money back through the courts. If there was no form, when did the seller have an opportunity to say there was water damage? Proving that they knew about it is the hard part. What if they didn't see the water damage until the movers came and moved that big piece of furniture? If you can find a contractor who came in and gave the seller an estimate to repair the water damage, you'd have some ammunition. Plan to spend about $15,000 in legal fees even if you settle out of court, over 5 years. If you go the court route and sue everybody, the Judges usually spread the blame. You could sue for the total cost of ripping out the drywall, studding, insulation, and maybe the electrical system if it needs it. The Judge will assign part of that to the seller, maybe some to the home inspector, some to you. And that's if you can PROVE they knew it was leaking. As I said before, run it past your lawyer. Maybe I'm all wrong. For most people, it makes more sense to just swallow their pride, and the loss, once they get an idea of the legal costs and the time involved. I'm sorry your brother's buying experience turned into a bad one. It's the kind of story that scares any resale home buyer, especially first-time buyers. Problems like it are the exception, not the rule, but most of the issues I hear about are about wet basements and who knew about them. Thanks again for visiting my website and for getting in touch. Please let me know how it all works out! |
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We are buying a house and 2 acres with a shop from a developer that bought the 43 acres next to it. After we put a contract on it with him we were told he has decided to just put a row of apartments on the far edge from us and on the rest put duplexes on two sides of us. We already new that they were building duplexes across the street but we thought they were putting houses next to us. My question is, if we go ahead and buy this house will we loose equity because of the duplexes and will make the value of the property be less? Pam, Republic MO. If duplexes are built next to you, rather than houses, it likely won't make a big difference in the value of your property. Any buyers that would be turned off by the duplexes, and therefore would think it was of less value, would already have been turned off by the duplexes across the street. Buyers think in terms of neighborhoods. The extra duplexes on your side of the street won't affect their opinions of what your house is worth, which is what determines it's market value. Republic is a small town, but it sounds like it's growing. Generally speaking when a large lot like yours is out in the country it's worth less than when it's inside the city. If Republic booms and turns into a city, you're going to be sitting of a valuable piece of land! |
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We currently own a house that we rent to my husband's daughter. She is interested in purchasing the house from us, but they have bad credit and no downpayment etc.How does the "rent to own" work? I am having trouble finding any good info on this topic. Kathy, somewhere in Ontario Every rent-to-own is different, and the terms depends on what you and the buyers agree to. Basically, they would still pay you the same rent that they pay now, but you would set aside part of that rent as a "downpayment." Over a period of time, determined by you and the renter, that money accumulates. At the end of that period, your son will have to get a loan to pay what you have agreed is the purchase price of the house. If they can't get a mortgage, and don't buy it, then you would keep their downpayment as if it was rent all along, and the deal is off. You're basically taking money out of your pocket, by reducing the amount of rent that you keep each month, to help a buyer accumulate a downpayment. Since it's your kids, why not just give them a gift of the amount they need for the downpayment now? If you have the money, and you want them to buy it, the affect on your finances is the same whether they buy now or if you use the rent-to-own to give them back money you would have kept if they were renting. Lenders are falling over each other now to give money to buyers. If you are willing to sign their loan as a backer, they might be able to get a mortgage now. Remember, if they buy your house, you're going to get a cheque for its value. You can put that money in the bank as a backup, but... If they default on the loan, the bank will come after you for the amount still owing on the loan (most of the amount you cashed the cheque for) PLUS the amount of interest they would have paid over the length of the mortgage. It comes down to how much faith do you have in your son and daughter-in-law? I've thrown a lot at you. If you still have questions about what to do, please reply to my email with them! |
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I think you may have answered this question but if not HELP! I found a piece of vacant land I would like to purchase and build on. The bank of course wont fiance on it because there is no existing building/house. How do people do buy property and can you recommend lenders for these types of situations. Thank you..Michele Jacksons Point Ontario Even custom-home builders have trouble buying vacant land. They usually ask the buyer to fork over enough cash as a deposit so they can buy the lot the buyers like and then they build the house. Have you tried a mortgage broker? They have clients who are more accepting of risk, with an increase in interest rates to compensate them for their bravery. Can you build on the lot? Do you have a Realtor doing the homework for you? Thanks again for your interest in my website and for getting in touch! |
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Bill what your saying I shouldn't buy now? I am looking for a duplex or triplex in the GTA to offset the mortgage. Should I still wait. Trevor, Toronto For the average person, if seeing the price of your house continue to go up is the only determining factor in your decision, it makes sense to NOT buy now in the GTA. The statistics that I am seeing suggest that prices outside of the GTA have plateaud. (When the market softens, it starts out in the country, then the slowdown works its way towards the city. Downtown TO is the last place to be hit by a slowdown.) The affordability statistics for Toronto have taken a worrisome turn too, and I expect that, within 6 months, resale prices will plateau or even begin to drop in Toronto. Nobody can predict the future, so the best we can do with investment decisions is play the odds. With the data that I'm seeing and reading about, and considering the age of the boom-market that we are in, the odds that resale housing values will continue to rise are very very very low. During the last crash, real estate values dropped 20-30%. They did recover, over a 10 year period. Most analysts say it won't be as large of a devaluation this time. If you plan to own your duplex for 10 years, it might still make sense for you to buy now, benefit from the rent of the second unit, and wait out whatever slump hits the market. An accountant would be able to help you crunch the numbers and go over the tax angles of losing money as a capital loss. |
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Can I buy land in Ontario and put a mobile or manufactured home on it? Audrey, St Thomas Some municipalities still allow it, but most don't. Some allow it if it's zoned as farm land I think, but not in the same area if it's zoned as residential land. You'd have to check the local zoning bylaw in the area that you want to buy in. Feel free to get back to me if you find out why they don't allow mobile homes in your area. It's a topic that I don't have time to research, but would be interested to know more about. |
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I sold my income property (in less than 3 days) and the buyer has not come up with the cash at closing. I've been very patient with the buyer (was told he was very experienced income investor) and have extended the closing date for another week in order for him to get financing. In the meantime, i'm in limbo. If the financing does not materialize, what are "reasonable" costs that i can recoup from the buyer. I sold the house in the peak time in a peak market and now i'd be lucky to get anywhere close to what he paid. Even if i got what he paid and collected on the deposit, listing and trying to sell again will be nothing but a headache. Trevor, Ottawa. Reading between the lines, it sounds like you already know about deals falling through and the seller keeping the deposit as a bilaterally agreed penalty for canceling the contract. Beyond that, ask your lawyer before listening to me but, if they don't have the cash to complete the deal they don't have anything to go after even if you get a judgment after an expensive 5 year court ordeal. I know it's a pain in the butt to list it again but, if you sold it in 3 days to an experienced income-property owner the last time, you'll sell it quickly if you have to put it on the market again now. If it's a good deal in a hot market, it's still a good deal even in a bad market. As long as the rental market has not collapsed, the income is still there. |
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Hi Bill, this is quite a service you offer. Good on you. My question is this. I have just bought a freehold townhouse built brand new. I paid for a 3 piece washroom to be installed in the basement. On the plans that are part of the agreement of sale my bathtub/shower is against the outer wall of the house(I am an end unit). In the actual house they have reversed this on the ground but not in the ceiling resulting in my heat vent being right above the shower/bath. This will no doubt result in rust in my duct work. What are my options? Do I have any? The other issued is the "snake-out" drain. They have it placed in the floor of my basement washroom. Quite unsightly. In all their model homes this is in another part of the basement. Do I have the right to withold monies or to ask them to remove it? Thank you. Elliot, Barrie Unfortunately, there's some fine print in almost every builder's contract that says they can substitute materials and modify the plans if they need to. There's not much buyers can do if they don't like the changes. You could check with a home inspector, such as Amerispec, about the vent but as long as it's a heating vent it's likely not going to get rusty. Rust is a problem in exhaust vents where warm moist air from inside hits the cold air leaking in from the vent on the outside wall or roof. Since it's blowing the air back into the room, the ducting should stay dry. With it blowing though, it might be more of a comfort issue. How drafty is it going to be in the winter when you're in the shower and the furnace comes on? It will be blowing cold air on you until the air in the vent heats up. Can the vent be moved? It depends on the configuration of the ceiling joists and how the duct is coming into the bathroom. It might be easy to fix. Those drain cleanout are often put in stupid places and you wonder what they were thinking, or IF they were thinking. My pet peeve is "rough-in" bathrooms drains that buyers pay a few thousand extra for. They are put in so close together it would be impossible to put fixtures in, and the buyer always ends up tearing up the floor to reposition them. It would be cheaper to not put in the rough-in. It depends on your builder, and the working relationship you have with him. You might be able to point out how thoughtless their modifications were, and get him to rectify them for you. Good luck! Let me know how it works out! |
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What are the regulations concerning a seller paying closing costs on the sale of a single manufactured home in Texarkana, Texas? I feel we are being misrepesented in our contract by our agent. He is charging $1500 and seems to be working to get rid of our trailor 'very quickly' to a lady who is licensed the the TX Real Estate Commission and is a Principal of Texarkana Star Real Estate. What does this mean? Kelly, Sherrill, NY When you say "closing costs" I will assume you mean the Realtor's commission, based on the rest of your question. They're not the same thing, but for the person paying the bill they are confusing terms and just another expense. The $1,500 is probably not excessive as a commission. Your Realtor has to split it with the agent bringing in the buyer. Then he has to split his half with his Broker. He might end up with $500 at best. That's not a lot to pay a guy for getting it sold so fast. As for the other Realtor, I'm not sure what the rules are like in Texas. I'm in Canada, and up here you would get a document from the other Realtor buying you house. It would say if she knew something about the house, and its value, that you didn't. The other Realtor is probably going to rent it out. If I thought you were being ripped off, I'd say so. But I think your Realtor has done a good job in selling your house so quickly. Just because it's another Realtor buying it is not a red flag. Relax! Most buyers would be happy to have sold so quickly. Enjoy the move! |
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We have recently sold our home and have an accepted contract to purchase another home. Our closing was to be Aug.30, 2005. Just before 12:00 noon on Aug.30 I received a call from my agent saying we had a problem. My agent noticed that the home we had an offer on (subject to financing), had been edited and instead of the 1338 sq.ft the new MLS had it listed as 1255 sq.ft. Of course this was a cause for concern as we felt we were already paying top dollar for the property at 1338 sq. ft. We did get financing, no problem but now we have a problem with the fact that the seller's agent did not disclose this information in the a.m. We have advised our agent to advise the seller's agent we are no longer interested in the property at the asking price. It was only after the appraisal was completed the morning of Aug. 30th that the MLS magically changed to the smaller sq. footage. Again this information clearly know to the selling agent was not disclosed to our agent. Bill do we have any concerns with backing out of the deal and what recourse do we have as we now have till Oct. 14 to be out of our home???? Ken, Lethbridge Alberta You should be discussing this situation with your lawyer. They can review all of the other factors affecting your decision and tell you what the available options are. Did you waive the financing condition? If not, you can get out of the deal. The house likely won't appraise at the same value if the new smaller square footage is factored in. The lender won't agree to a mortgage if the house is overvalued, unless you have other assets to back up the overpayment. If you have waived it, and the lenders pulls out of the mortgage, I'm not sure what would happen! That's where the lawyer comes in again. Your lawyer should be talking with the seller's lawyer, negotiating a settlement. This is over the heads of the Realtors involved, and you're running out of time. You liked the house enough to buy it. If you can negotiate a lower price based on the difference in square footage, you'll still like the house when you move in. Don't get side-tracked by assigning blame. Save your energy for getting the existing situation resolved, and for moving. Good luck. Thanks again for your interest in my website and for getting in touch! |
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Can a lender come after my property to take possesion even after receiving all mortgage dues paid upto date after being at a little default. Jonty, Toronto If you've made up the payments that you missed, and you're back on your payment schedule, the bank will not take your house. Banks and Mortgage companies only like to touch your money. They don't want to touch the property they have financed. Having to take the keys to a house is a huge failure in their eyes. It's in their best interest to let you keep your house, and lend you even more money to get you back on track, so they can make more interest. If they take your house, they can't do that. They only take a house if the payments stop coming, and they do that reluctantly. The best way to keep relations good between you and your lender is to keep the lines of communications open. Keep in touch with your mortgage representative at the bank. Tell them that you're having trouble and what your planning to do about it. They have a boss looking over their shoulder asking them what's going on with your mortgage, and they need a good answer if they are going to help you. When the trouble is over, tell them that too! They are people just like you and me. They have a house and a mortgage. Unless they are psycho, they sympathize with other borrowers, and can be your best friend at the bank when you're having trouble. Make the call. Ask your mortgage rep how you standing is with them. Then relax and sleep well knowing you still own your house for a long time. |
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I'm buying a home and the mortgage papers came in late. I'm wondering what happens when the deal is not closed on the closing date? Who pays the interest and how much would it be? Is there a way the lawyer can get me in on the closing date, and is there a fee for that? Misty, Slave Lake AB I'm not sure what you mean when you say your "mortgage papers came in late." Do you mean the bank didn't get the application forms sent in on time, meaning that you are still waiting for your final mortgage commitment? If you're still waiting for the bank to get back with their mortgage commitment, and your time is running out on the financing clause in your offer, your Realtor can most likely get a time extension on that clause, for a few more days, to keep the deal alive. Even with an extension of a few days, you should still move in on the original closing date that you agreed to. The bank just needs to know when to put the money in your account so you can write the cheque. A few days difference won't matter to them. In that situation, you shouldn't have to pay anyone to keep the deal alive and extend the closing date. If the sellers want their house sold, they can give you the time you need, for free, or let you out of the deal, put the house back on the market and go through the whole messy process of finding a buyer all over again. Most sellers will agree to give you the extra time, for free. Relax. Have you talked to your lawyer? Does he say there's a problem? Your Realtor should also be holding your hand and resolving your concerns as you go through the buying process. Give them a call. Maybe I'm not getting it though. If your situation is different than I've interpreted it, please get back to me with the details. |
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Can a real estate transaction in California be cancelled if the buyer does not perform in the specified period of time? The buyer has gone past the 30-days and is now at 60-days. The seller wishes to cancel and/or renegotiate the price since the value has gone up. Is that possible? Javier, Norwalk Ca The agreement of sale for a house is a contract. If one party to any contract does not fullfil their obligations under the contract, in most counties, you can sue for "specific performance" and make them complete the deal. I'm learning that California is a whole other world though. Have you asked a lawyer there? |
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I am having a 22 x 26 garage built in my back yard. The question I have is I told the contractor that I wanted a flat floor because it would mainly be used as a workshop and not used for daily parking of cars. I do have a project truck that will take another 3 years to finish that will also be stored there. He got a permit as a workshop so the floor can be flat and not sloped towards the door if the permit was pulled as a garage, I think for gas fumes. Will I have issues if I decide to sell the house and call it a garage? Joe, Fairfax VA If a sloping floor is a requirement for a garage in local bylaws or the State/U.S.A. building codes, and yours is flat, then you definitely have to describe it as a shop or outbuilding when you sell it. You could be sued for misrepresentation if you called it a garage and led the buyers to believe it met the requirements of a garage. In the worst case, they could make you pay to tear the structure down and rebuild it as a garage. The good news is, it's probably better to call it a "shop" or "workshop" to attract buyers. In my area, and I suspect in most areas, the wife is the one doing the buying, while the husband is along for the ride. When we're looking at listings on the computer, and I say "Oh look, this one has a workshop," the husband sits bolt upright in his chair as if he's been electoshocked and pays attention to the screen for the first time. It's a bonus to have a shop, even if there is no parking garage. If there is a garage AND a shop, you can consider it Sold! even before it's listed. Have fun in your new workshop, and relax. It's not going to hurt you! |
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My husband and I would like to get into buying houses, fixing them up, and then selling them for profit. BUT we don't know the firstthing about it. How long do we have tolive in a house before we can sell it again? Thank you in advance for your help. Kristin, Newmarket ON The tax laws are in a constant state of change but, the latest rules that I've seen say that you have to live in a house for a year to be able to sell it and not have to pay capital gains tax. People like you renovate and flip properties all the time, and rely on their tax accountants to get it done without paying taxes, even when they live in them for shorter periods. I'm great at finding houses that need fixing up and helping you chose the renovations that will attract the most buyers, and those best-price multiple offers. I call in the experts when there's an area, like the taxes, that I don't know. Do you have a tax accountant in Newmarket that you could run your ideas by? I'm not sure if you found my Renovating for Fun and Profit page. Please E-mail me with any questions that it does not answer. |
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I am in the process of buying a house here in Sask I was approved through the bank but now CMHC now wants a co-signer. The house was appraised at 10,000 more then what I need for a mortgage so why do I have to have a co-signer and if I get one do they have to stay on the mortgage for 25 yrs? Also what are my rights in this situation, will the house be MINE or our's. I don't want anyone else on the mortgage. Jessie, Regina Lenders and CMHC have a list of criteria that borrowers have to meet to get a mortgage. There must be some concerns, in their mind, about one of those in your situation to make them want a co-signer. The Deed specifies who owns the house, and only your name goes on the Deed. Don't worry about having a co-signer on the mortgage. The co-signer only signs an agreement with the bank saying they will come up with the money if you default on the loan. (If the co-signer defaults too, that's when CMHC has to come up with the money. It's double protection for CMHC. In my opinion they should charge a lower premium when there is a co-signer, but don't get me started! I'll be ranting for hours about CHMC.) When you renegotiate your mortgage in a few years, if the issues are resolved or if you don't need CMHC anymore, you can get rid of the co-signer. Be happy! You bought a house. Enjoy it and don't sweat the co-signer thing. It's a small inconvenience. |
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I bought a house this past Feb. Since I am only 20 I didn't have the credit to put it in my name but I made enough money for someone to cosign for me. My mom cosigned for me. My question is her new husband recently totaled her truck and wasn't put on her insurance yet. If for some reason she got sued can they go as far as to take my house away since she cosigned. I'm kind of freaked out about the whole thing. Thanks for the help. David, Indiana No they can't take your house. When your mom cosigned, she took responsibility for your debt, but that didn't make you responsible for her debts. Relax dude. It's still your house! Thanks again for visiting my website and for getting in touch. Send any other questions or thoughts you have! |
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What are your expectations for the real state market in Barrie in the next few years especially after the Go Train will come to Barrie 2007, I'm thinking of buying an investing property. David, Barrie The short answer is, yes Barrie is a great place to buy over the long term. Nobody can really predict the future, but it's possible to estimate the odds of different scenarios playing out. For the near term, the odds of this current boom market continuing much longer are very low. Prices of houses are now, after adjusting for inflation, as high or higher than they were in the crazy frenzied market of the late 1980's. See When should I buy? The most likely scenario is that the market will slow down, and house values will drop. It took about 10 years for people who bought in 1990 to recover the value of the houses they bought. How low they go this time depends on consumer psychology. Hurricanes, terrorist attacks, stock market crashes. Who knows what's going to happen tomorrow to scare buyers or affect the market. Maybe nothing, maybe lots! The smart people are the ones who bought an income property at the bottom of the market, around 1985. Their property's value has skyrocketed since then, plus they've had rental income to pay the mortgage with during that period. When you say "investment property," if you mean buying a house as an investment, you're likely going to own a house that is worth less than you paid for it for 5 years or more. If you mean buying an income property, the rental income from the property might be worth taking the short term loss. There are tax angles to income properties that make them even more attractive. A good tax accountant can crunch the numbers for you and tell you if buying now, even with the potential for a short-term diminishment in value, is to your financial advantage. Now, as for Barrie in the long term, yes. Buy. If you've read through my website you'll know I'm honest and I'm not one of those Realtors who will tell buyers anything just to get them to buy. House prices within the Barrie City boundaries are the lowest of all of the surrounding area. See Where should I buy? for the numbers. It's because of the builders. There are too many and they are killing themselves by competing on price just to keep the cash flowing. BUT, there is almost no vacant land left within the city limits to build on. The only way that Barrie can continue to grow is if it annexes adjoing townships. That's a huge political issue with those townships. The previous mayor of Barrie tried to develop a co-operative approach to urban sprawl and commercial development with the surrounding townships. It went over like a proposal to start World War Three. If Barrie can't grow, it's all about supply and demand. Prices will skyrocket. The developers can still go crazy building houses out in the surrounding townships, but living out in Innisfil is not like living in Barrie. Keep in mind, the buyers that are driving the market are moving up to Barrie from Toronto so they can have an affordable mortgage, and to escape the crime and pollution. But they are spoiled. They want the services. They're town. Not country. It all depends on how long you're planning to buy for, and your intentions for an investment versus an income property. Call me when you're ready to buy! There are some interesting commercial properties that you might find more attractive than residential tenancies if you chose the income-property route to wealth. |
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My husband is trying to sell land in Florida that he acquired when his grandmother & father passed away. The Deed was in their names & he can't seem to locate it. How would he go about getting a copy of the Deed & transferring it to his name? Robyn, New York Up here in Canada, they are all kept in a local registry office. Things are less organized in the USA for real estate ownership, but there must be some place where records of property ownership are stored. The deeds go somewhere! I'm just not sure where. You'd probably get some help from a local real estate lawyer's office. If they think you'll come back, they might offer free advice. You can find books that guide you through processes like buying a house without a lawyer, if that's your goal. Frankly, I agree with the lawyers. They say you either pay them now to do it right, or you pay them twice as much later to fix the mess you made doing it on your own. Call a lawyer. For a few hundred dollars, you'll be able to sleep at night knowing the deed transfer was done properly. |
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If I cosign on a mortgage, can the person holding the loan do a quick claim deed to release my responsibility if the morgagee defaults? Jean, Illinois Co-signing commits you, the co-signer, to be responsible for the debt if the borrower defaults. You're backing up the borrower and saying "If they don't pay up, I will." That's why the lender says, "Ok in that case we'll lend them the money." If you could sign a quit claim deed and get out of your responsibilities as a co-signer when the borrower misses payments, there would be no reason for a lender to ask for a co-signer in the first place. Every co-signer would sign a quit claim deed and the lenders would be out of luck. |
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How binding is an accepted agreement for sale and purchase? In particular, can the seller walk away from the deal without recourse? Or could the buyer walk without losing the deposit? Marc, Toronto Before the buyer has waived their conditions, the Agreement of Purchase and Sale is moderately binding for the buyer, but completely binding on the seller. After the buyer waives their conditions (financing, home inspection etc) the Agreement is absolutely binding for both the buyer and the seller. It is a legal contract. At that point, the only way the deal cannot go through as spelled out in the agreement is if both the buyer and seller agree to make a change to it or cancel it. They sign a document cancelling or modifying it. If one of the parties does not agree to the change, the deal goes through as stated in the Agreement. Most often if one party wants out, they negotiate a financial payment to the other party to get them to agree to cancel the contract. If the buyer wants out, all or part of the deposit is kept by the seller. Are you in a deal that you're worried about, or want to get out of? |
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Hi, I am selling my home by For Sale By Owner. I have a signed agreement. Then some one made me a better offer . Is there a time limit to get out of the first deal. Do I have 48 - 72 hrs to change my mind? Does the buyer have the right to change his mind? Jeff Pittsburgh The answer to your question will be in your Offer to Purchase with the buyer. It's a legal contract and you have to live up to what you agreed to when you signed the offer. The person writing up a contract always writes it up to their advantage, and to the other party's disadvantage. When an offer is written by a buyer's Realtor, we have an ethical obligation to treat the seller fairly. We can't put things in the offer that disadvantage the seller. I don't know who wrote up the offer you signed. It might have been the buyer's lawyer. Maybe they got it from a do-it-yourself book or website. Either way, I have no way of knowing the options that they gave you, or denied you. If you didn't have a lawyer read over your the offer to purchase before you signed it, you'd better get one soon. If you did have a lawyer's approval before you signed, please consult him on the terms of the agreement and what your options are regarding competing offers. Only a small number of people sell their houses privately, and the majority of them say they would never do it again. I'm a nice guy so I'll wish you well and hope you're one of the people who got through it without incident. |
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My boyfriend and I have purchased a house from a local homebuilder. Our realtor was also involved so we had signed a contract with him and the homebuilder's contract. everything was finalized, financing, final acceptance. etc. However, now the homebuilder is saying that they are not going to approve it. Can they back out of a deal after they have given final acceptance to our offer? Personally I believe they are trying to back out because the same house is selling for $31,000 more than what we paid for it one month ago. Isn't a contact final? Rennelle, Grand Prairie AB You're agreement with the builder is a legally binding contract. They can't back out unless there is a clause in it that says they can. You'll need to have your lawyer go over the fine print, and the big print, to see what's really going on. Thanks again for getting in touch, and good luck with your new home! |
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I have had my house listed for several months. It came off the market about a month ago and we decide to put up a private sale sign. A couple that viewed the house while it was on the market now want to buy it. They had put in a previous offer but we had refused it as it was too low. Now they feel that there would be no real estate fees involved. What is the time limit we would have to wait to sell our house to this couple as a private sale. Thanks for you time. Lori, New Brunswick Each real estate board is different but most likely your listing contract said that you owed commission if you sold the house within 60 or 90 days of the expiration of the contract (to a buyer that was made aware of the listing through the Realtor/Broker's activities.) Your time period will be in the listing contract that you signed with the Realtor. It's one of the main items, not buried in the fine-print. Good luck with the sale of your home, and thanks again for getting in touch! |
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We recently purchased a house and the owners lied about the condition of it, can they be held liable? Kelly, Sask Yes, if you can prove that they deliberately misrepesented the state of the property, or covered up faults, they can be held liable. You can take them to small claims court, depending on the dollar limit in small claims in your province, or you can launch a full-scale lawsuit. Please consult with the lawyer that handled your purchase. You would need to have an estimate of the costs to repair what they lied about, and to know your lawyer's estimate of the legal and court costs you would have to pay to win a lawsuit. From there, it's a tough decision. Many people let their anger and their need for revenge overide their common sense. Is it worth the sleepless nights and the endless meetings and court dates if you're not going to get money in the end? That's the decision you have to make. |
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I am looking for information on the regulations in regards to building/renovating my home to build an inlaw apartment. Emeline, ON Each municipality has different zoning bylaws and requirements for "secondary units." Your first stop would be at your local town/city hall to see that you can and cannot do. Beyond that, there are fire code requirements that you have to comply with. Good luck with your apartment, and thanks again for getting in touch! |
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We are selling our home privately and are faced with a dilemma belonging to a potential buyer. Hope you can clarfiy a few things. The potential buyer is not from the area and had contacted an agent in the area simply to make an offer on another home. That deal fell through (buyer got bumped) but the agent had them sign a 'buyers agent agreement' until Dec 31. The buyers were not aware of the ramifications of this agreement until now. They found our place on their own and have been to view our home 3 times now - making appointments directly with us. Now their agent is telling them that according to their agreement with her - she can collect 6 % commission if they buy our home. She has told them that she will "be nice" and cut that to 3 %. As I said - the agent has never been involved in introducing or showing our property and our home is not listed with MLS......does this agent have any claim to commission where she has done no work and has had no involvement? I know this isn't really our problem....but the potential buyers are asking us to consider lowering our price to compensate for them having to pay this commission......on the one hand we are willing to negotiate on price - on the other - we do not particulalry want to contribute to this agent's income! Buyers generally buy privately, rather than through a Realtor, because they are looking to take advantage of someone else. I don't have a lot of respect for them. In the past, criminals laundering money used Realtors and cancelled deals to turn illegal cash into legal deposit-refund cheques. Under the new law, Realtors have to report large cash transactions to the police. The money launderers now prey on private sellers of homes instead. They use those for-sale-by-owner websites to find their victims. I doubt that your buyers are laundering money, that was just an example, but their story is inconsistent enough to make me suspect their motives. Usually buyers buy privately so they can subtract the commission, that isn't being paid, from the market value of the house. It sounds like your buyers have come up with a creative way of doing that rather than just negotiating away the value of the commission up front. If that's the case, they're not as smart as they are devious. If you have a firm offer with them, meaning there are no conditions outstanding, then you don't have to renegotiate the price. They're locked into the deal. I'd suggest that you tell them your lawyer wants to see that agreement they have with the Realtor. If they produce one then I have a whole other rant about the Realtor's unethical behaviour. I suspect they'll say they lost it in a housefire or something. I'm worried that you're asking me for advice about your situation instead of your lawyer. Please tell me you're not trying to do this without a Realtor AND a lawyer. You could end up homeless if your are. Thanks for your reply!! We had offered to negotiate a price that would allow our potential buyers to pay their Realtor.....but as you said, we had told them that nothing would have been finalized without our lawyer. In the end they backed out.....which is probably a good thing. We have stopped trying to sell privately and have just listed with a wonderful agent. So we won't have to deal with these odd questions any longer......we are just looking forward to selling and moving into our new home next year! I'm relieved to hear that you're using a Realtor now. Almost everyone who sells a house privately swears they would never do it again. I'm sure you can look forward to a sale and a happy move. Good luck! |
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My fiance bought a house with 2 of his buddies in Aug/04. We purchased a home in Sept/05 together. The agreement was that he would pay his 1/3 of the mortgage but would no longer be paying utilities since he no longer resided there. We have come to find out that the other two guys have moved someone in and are collecting rent even though it had been decided that this would not occur without being discussed. They do not want to have a rental agreement with the tenant so my boyfriend is now looking to sell the house but the other two can't afford to buy him out. He would like to force the sale of the house but we are unsure how he goes about doing so. There is a possibility that one of the other owner's father would like to be put on the house as an investment but all conversations between the 3 seem to break down. What are the steps that he needs to do in order to remove himself from the mortgage but still get what he's invested into the home? How difficult and expensive is it to force the sale of a jointly purchased home? Your help in this matter would be greatly appreciated as it has been much frustration for both of us. Thanks so much. Sheri, Brampton Your boyfriend's option depend on the actual agreement that they made when they bought the house together. If it was a formal agreement, it should have outlined what would happen if one of them wanted out, or what the property could be used for. If they only had a verbal agreement then it's going to be a lot more difficult to resolve the sale. You would need to have a lawyer review the agreement, and your situation, and tell you what your options are. Trying to use a legal route to resolve any issue is the most expensive solution to a problem though and I hope you can avoid it. The simplest solution is to find someone other than the existing owners to buy out your husband's share of the house. Do you know anyone who wants to invest in a house but can't afford a whole house on their own? I suspect your best option is to get that one owner's father to buy out your boyfriend's share. That will only happen if you keep the discussions friendly though. Don't mention lawyers or suggest that you would force the sale. If you threaten to use some legal club to force the sale, everyone will dig in their heels and it will turn into a big unresolvable mess.Keep it friendly and keep everyone talking. With time, it will work out. |
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We recently purchased an acreage and our possession date was November 5th. When we arrived that day to move in, the previous owner had left many possessions. Since living here, there have been numerous individuals here taking things out of storage buildings and in the yard. Since the previous owners have been paid in full for this property, are we not entitled to everything that was left behind? Also the previous owner makes frequent trips out here, we have lived here a week and he has been here at least a dozen times, looking through things in the yard and buildings, we are desperate for some privacy and would like to enjoy our new home, what are our options? G Pitt, Sask In Ontario, where I practice, the agreement of purchase and sale says "vacant possession." I'm sure you'll find the same thing in your agreement. If it does, you can trash the stuff they left behind. And they don't have a legal right to be on your property after it's sold. Of course, I'm not a lawyer, so please consult with one before you take action based on my opinions. Sold is sold. Kick their butts off your land! |
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I sold my home subject to a building inspection. The inspection revealed some issues (house almost 100 yrs old) that has the purchaser wanting to renegotiate price. Actually I'm happy with the results of the inspection. Nonetheless,what is the time period involved here in Ontario where the purchaser either accepts the property as is, or walks away from the deal. I'D REALLY LIKE TO KNOW IF I'M MOVING OR NOT. Robert, Hawkesbury ON If you look at your Agreement of Purchase and Sale, you should be able to find a clause (in the big type) where it says "This offer is conditional upon the Purchaser obtaining a home inspection...etc." It should be worded such that if they don't send a notice waiving that condition then the deal is off. There will be a date or time period specified in that clause. If your buyers don't send the notice waiving the condition by that date, or within the number of days specified "after acceptance of this offer," then the deal is off and you can accept offers from other buyers. I'm curious why your Realtor hasn't informed you how long you have to wait for the buyers to waive their condition. |
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We were under contract to buy a home if our home sold. There was a person ready to by our house,he made an offer and we accepted. We found a home and made a contingency offer, that we would purchase if our home sold. Well, the person that wanted our home, has backed out of the deal, stating that he didn't get a good interest rate and now can't afford the house. Because we went ahead and accepted his offer, we made a full offer (no contingency) on the house we wished to purchase. Since he has backed out of our offer, we went ahead with our offer. We will have to back out of our offer now, could the owners of the house sue us? Angela, NC Please consult with your lawyer before you take action based on anything I say here. Your lawyer has all of the details of both offers and knows which stage each offer is at. Those details have a huge impact on your various options. If you have waived all of the conditions on the offer you made on the new house, you are locked into buying it. You might be able to negotiate something with the seller to let you out of the deal. Usually that involves money and a sympathetic seller. They could, however, sue for "specific performance" meaning you have to take the house and come up with the money. I'm not clear on your buyer's actions. Normally you would not have firmed up on your offer on the new house unless your buyer made a firm offer to you. If you had a firm offer from him, then you can sue him in turn, making him buy your house or come up with the money that you are being sued for by your seller. Many people get caught up in these chain-link offers. If you've read my website you know I recommend that an owner sells his house first, and completes the deal, before buying their next house. When these "I'll buy yours when I sell mine" offers pile up, you can end up with 10 buyers and sellers suing over one buyer at the bottom of the list that pulls out. As I said though, please consult with your lawyer. There are tons of details in every offer that change the direction an average buyer or seller would go. Only your lawyer can review your contracts and your situation and spell out what your options were or what they are now. Good luck with your sale and purchase! If you keep it friendly with the sellers and your buyer, you most likely can work it out without involving the courts. |
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I was wondering if you knew the answer to my situation. I was widowed last year and my daughter moved home with her 5 children. I decided to buy a house that would accomodate all of us. I put my own house on the market and purchased this home. I added my daughter's name to the deed and the mortgage. I then put an additional $40,000 into renovations. The situation didn't work out well and I want to sell the house so we can part ways. She isn't willing to buy me out (which would have been fair since I am the one who has put all moneys in to date). Do I need to get a lawyer to sell at this point or can I just put the house on the market and split the proceeds with her. John. Cambridge ON Yes you need a lawyer. Because your daughter is on the mortgage and the deed, it's something that has to be done properly. It's well worth the costs of legal advice now to avoid the much more costly legal proceeds to straighten out the mess later on. Who was your lawyer when you bought the house, or when you did the mortgage and had her put on the deed and mortgage? That's the lawyer who would be best to advise you on your options now. |
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I am selling my house and have already signed a contract, is the contract legal and binding if the property address is incorrect on it? Kristi, Maryland It's not like a traffic ticket, where you get off if they make a mistake on your info. The short answer is, if you know the address is wrong and you don't do anything, then you're at fault along with the Realtor. A court would most likely rule that you still owed commission to the listing and selling Realtors, if that was where you were going with your question. The listing agreement is a two-part document. Your property's legal location is described on the data form as it's described on your deed. "Lot x, concession Y, in the township of whatever." Somewhere in your listingagreement it says that you confirm, by signing, that all of the information is accurate, which includes your street address. Offers use the full legal lot description, not the street address. The street address is just a number assigned to your house by the city so the ambulance and fire truck can find it. The deal would still be legal even though the street address was incorrect. The real concern is, even though the buyer's offer used the legal description, can the buyer get out of the deal because they drove by 1600 Pennsylvania Avenue during the day but the actual listing was on 1601 Pennsyvlania Avenue. If they toured the property in the dark, they could say they thought they were buying another property and get out of the deal. It's in your own best interests to ensure that all of the data on your house and your contracts is accurate. Is the address correct on your house's advertising? You're in a partnership with you Realtor. You agreed to work together to get your house sold. That won't happen if you're trying to find each other's mistakes. You'll just end up in court with an unsold house. |
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My house is up for sale at the moment but I have already seen the house I want to buy. I am worried that someone will put in an offer before I sell my house. Is there a way in which i can buy the house I like before I sell mine ? W. Owen, Somewhere The only way to guarantee that you will get the house you like is to negotiate a firm offer on it now but leave yourself lots of time until the closing so you can get yours sold. The downside is that, if your house doesn't sell, you will end up owning two houses. In theory, you could submit an offer conditional upon you selling your own house. It doesn't really guarantee that you will get the house though. If another buyer comes along, you will be asked to either get lost or firm up on your offer (and again risk owning 2 houses.) If you submit that conditional offer and no other buyer comes along, you will most likely have paid more for the house than if you didn't have the condition, and you will most likely accept a lower offer on your house than if you were selling without a deadline in the back of your mind. Money might not be an issue for you though. If that's the case, you should discuss a conditional offer with the Realtor that is representing you as a buyer. So, to guarantee you get the house, it all hinges on how much you love that new house and on your ability to finance two houses at the same time. I don't know enough about your situation to offer any suggestions other than that your existing mortgage holder would be able to review your financial position and advise you on your options. If you have only a small mortgage on your existing home, and other assets to leverage, it's quite possible that you could afford to own two houses. Perhaps you could turn your existing home into a rental/income property. |
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We sold our house, that was on 10ac, in Feb2004. Now the buyer is taking us to court because he says there was stuff buried in the woods on the property. We know nothing about any of this debris that he says is there. Does he have a case after all this time has elapsed? Nick, Bowmanville ON I don't know how long you owned the property, and I don't know how long the stuff has been in the ground. If the buyers can make a judge believe that it's new garbage that has been buried during the time you owned the property, you've got a huge problem. It sounds more like a previous owner buried something that you didn't discover while you owned the property. The more I think, the more questions I come up with about their motivation. How did the buyers discover something that you didn't find while you were living there? Were they planting a pot grow-op and the debris broke their plough blade? What were they digging for in an area that you never dug in? What kind of stuff is it? You didn't use the words "toxic waste," so I gather it's not a buried leaking oil tank, or some old chemicals. Thanks for your reply. We had lived on the property for 20 years but in that time we used only a small part of the 10ac for a garden etc The back half of the lot was very heavily overgrown and we didn't go there. The stuff he mentions is mainly old scrap metal, an old rusted out rototiller and a 1000 gal buried tank(he doesn't say what type of tank). The claim is for $50,000!. My wife and I are both RE agents although not active at this time and know all about not hiding anything from the buyer and what trouble it could land you in. We are seeing a lawyer on tuesday and hopefully he can help with this stupid mess. Thank you for getting back to me. From what you've added to the story, I suspect the problem is the buried tank. There's a huge issue now with heating-oil tanks. Some insurance companies are refusing to insure properties with oil tanks anywhere on the property unless they are new and have a spill-damn under them. Buried tanks are even more of a nightmare. When an inground heating-oil tank leaks, the Ministry of the Environment is making people remove the tank and all of the contaminated soil. The longer the tank has been leaking, the larger the bill for cleaning it up. $50,000 is on the low end for some spills. Imagine if oil has gotten into an aquafer and is contaminating all of the neighbours' wells! Have you noticed some commercial locations that used to have "gas stations" and they've torn down the buildings, but nobody has built on the lot even though it's a prime location? There was one of those across from our office on Dunlop Street in Barrie. It was a huge mess between the old bankrupt owners and the bank. It cost them over a million dollars to remove the contaminated soil from the leaking tanks. It's a common scenario with "gas stations." You need to know if they have had soil testing done. If they have not, they likely found the tank, did some research on the internet and discovered the horrors that I just described, and then panicked. If they did have soil testing done, and then launched a lawsuit, you're going to need that lawyer. They've found something bad. Your saving grace could be that you didn't know the tank was there. With a good lawyer, you could be on the hook for less of the cleanup. A judge in a good mood on a good day might make them equally responsible for not looking around more. How did they find the tank when you didn't? That's still bothering me. Something isn't right about that. |
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How does the new home owner(me)get the old owners to give me the second garage controler and get them to co-operate with the city to make the property comply. Tina, LeDuc AB I'm not sure if you bought the house through a Realtor or if it was a private deal. Your offer should have made it clear that the garage door opener and all of it's controls were included in the deal. If it did, your lawyer can help you get the controller from the sellers. Getting them to co-operate with the city is a bigger story. Was there a work order that they did not comply with before the sale? For that, you really need your lawyer's assistance and advice. Congratulations on your purchase. Buying a house is always exciting, and the problems are usually smaller than we think they are. |
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What are the obligations of a co-signer when the principal borrower defaults on payment? If it is a car and the co-signer becomes liable.....does that entitle the co-signer who is now paying to become the principal OWNER of the vehicle? D. Somewhere in ON I don't know about cars, so I'll answer your question from the perspective of houses, but I'm pretty sure it's the same answer. The borrower's name is on the deed for the house. He owns it until someone registers a new name of the deed. There is a legal process that you have to go through to change the name on the deed. Cosigning isn't part of the process. The mortgage is just a loan agreement between the borrower and the lender. The cosigner is only involved in the paperwork between the lender and the borrower. If the borrower defaults on the mortgage, the agreement is that the co-signer will make the payments for the borrower. That's all. There is nothing in that agreement that says that the deed will be changed so that the co-signer is the new owner. I suspect it's the same with cars. Be happy that it's only a car! You could be on the hook for a whole house! |
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I am buying a condo for the first time and it will be a lease with option to buy in one year. I will be putting 2 thousand down for my option now. and in a year, I will be buying it at a set price. my question is this...when a realator runs your credit report and stuff, does he have to pay 30 dollars out of pocket for them to run it? and it gets added to the closing costs? who pays seller? or buyer? I just want to know becuase my realator says I owe him 30 bucks for running my credit report. thanks Colleen, Pheonix AZ People can always negotiate something different up front, but it is usually the buyer's responsibility to pay for things like the credit check, the condo status report, a home inspection, or a survey. Your Realtor would have had to pay for the report and he is not being unfair by asking you for the money. If your deal was firm and closing soon on a full commissioned sale, some Realtors might be inclined to let the $30 slide as a gift. That's not quite the situation you're in though so you shouldn't judge him harshly. |
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If you are selling your house and you have an old oil tank buried in the yard. What is expected of the seller? Fill it in, dig it up, have it inspected? Marcia, Richmond Indiana Where I live, in Canada, there is legislation that makes homeowners responsible for removing old heating-oil tanks and for cleaning up the soil if they have leaked. Homeowners have to do that whether they are selling or not. I have be unable to find any references to legislation governing fuel tanks in your State or in the USA. If there are no such laws (check with your lawyer) then it's up to you and the buyer to negotiate the disposal of the fuel tank. The issue for the buyer is that the property is likely uninsurable with a buried fuel tank. It has to come out one way or another. The buyer is going to assume the worst and want to subtract the cost of cleaning up a leaking buried fuel-tank from the value of the house. It's likely to your advantage to pay to remove the tank yourself.(Have it done by someone certified to do such a removal or it could come back to haunt you if there is ground contamination and the removal was done improperly.) If you have soil testing done first to determine how costly a project it will be, and discover that there has been a leak, you might be able to claim the loss on your insurance. Your first step is to call your lawyer to determine if there is legislation that you have to comply with as the owner of a buried oil tank, or if you can use your own discretion. |
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I live in a freehold end unit townhouse, someone said that I couldn't fully fence my yard because I would be land-locking my neighbours. Everyone on our street that has put a fence up in their backyard has not left open panels or has gates to allow for acess of the neighbors. Is this true or does it depend on the city you live. Sally, Burlington ON I have purchased an end unit freehold town home in Ottawa, Ontario. There are four homes attached to each other. In my contract, it states that I must provide a rite of way to the tenants that are directly attatched to my home through our backyard. I understand the legalities as far as how much space I must allow but they seem to think they can walk through my backyard anytime and as often as they want. I understand when they need to mow their land, or do yard maintenance it is necessary to access through my property. However, I find it difficult to accept when their children have friends over that they continuously run back and forth. Do I have any legal rights to request them to not do that? I thought they would have to have a real purpose to use this right of way or easement. Unfortunately we have had other issues with this neighbor without much resolve. Darlene, Ottawa ON This is an updated version of my original Emailed answers to Sally and Darlene. I have not encountered townhouses in the Barrie area with such a requirement (or burden) on the end unit owners. I had to do some research to find the answers. I discovered that some townhouse developers do register an easement on the deed of the end unit and neighbouring unit lots to allow the inner townhouse owners access to their property for maintenance purposes. I suspect that, because some people in Burlington think there is such a requirement on all townhouse owners, there is likely such a townhouse developement there. It only affects those townhouses where the easement is on the deed though. It's not something that the city would pass as a bylaw to cover every townhouse. To repeat, the easement is for maintenance of the inner properties. It allows the inner owners to cross the neighbours' lots to get equipment to their back yards if it cannot go through the house. It does not give the kids and dog the right to cross the other neighbours' yards anytime they want. Owners have resolved the issue by fencing in their back yards, but they build the back fence 5 or 6 feet inside the rear lot line. It gives the neighbours access to their backyards but allows the fenced owner to still have some property. That solution also means that the fenced owner is enjoying less of the yard than he expected to if he did not know about the easement when he bought the house. Would he have expected to pay less for the property if he couldn't use it all himself? I would think so. If you own such a property and plan to sell it, the easement should be documented on the Seller Property Information Statement. If your local real-estate board doesn't require that form, the easement should be acknowledged by the buyer in their offer. Failing to do either would leave you open to legal action from a surprised buyer, or one pretending to be surprised. |
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Everyday I pass a huge boarded up house and am interested in buying and making renovations. There is no house/lot number. How do I get information on finding out ownership status? Jaiede, Harrisburg PA Before I give you a big long-winded answer, what is on either side of the house? Are there houses on either side of it, or is there a lot of vacant land between that house and the closest houses? THX Bill! There are no houses on either side & there are woods behind it. There is a church & a small private school across the street from it. I was afraid that it would be out in the country. That's harder to find, but the church and school will help you locate it. If you go to the local city/town hall, they should have zoning maps that show all of the lots in that area. The school and church lots will be marked clearly on those maps. Yours is across from them on the map. It's probably on a large acreage if the houses are that far apart. It should be easy to spot as one lot on the map. If there are a bunch of vacant lots across from it, for some reason, it's a bit more work but it's still do-able. Those zoning maps show lot numbers. Your local deed registry office will let you search those lot numbers to get the names and addresses of the owners. From there, it's a matter of making some calls to find out if the property is for sale. The easier way is to hire either a lawyer or, your best bet, a local Realtor to do all of that for you. You'd have to pay the lawyer, but the Realtor will do it for free if you sign a purchaser's agency agreement with them. Good luck with the house! It sounds like a fun project. Thanks for your help Bill, I now have an aerial map that shows each house in blue. Fortunately for me, this house is sitting by itself so I'm going to take it to the recorder of deeds and get an address that way. I was told that this house might be up for sale for just taxes. Wish me luck! Good luck!! |
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Is there a certain period of time after you sell a home, that you can be considered a first time home owner again? Trinity, AB Once you've bought a house you won't be a first-time buyer ever again BUT it doesn't matter so much anymore. There is an RRSP program that used to let first-time buyers put their saving towards a house. They've changed the rules on that and, the last time I heard, you can now take the $20,000 out as many times as you want as long as you pay the earlier withrawal back into your RRSP first, i.e.; it doesn't apply to only to your first house. CMHC used to let first-time buyers buy with 5% down. They've extended that to include any buyer, as long as it's your principal residence. It can be the 10th home that you've owned, but you just have to live in it. I can't think of another instance where it matters if you're a first time buyer. If you think of one, let me know! |
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My question is regarding land. I am planning to buy a land for the first time and i would like to know information on what i need to know to purchase a peace of land. The location would be mississiuga rd. & dundas in mississaug ont. Pedro, Toronto In general, you need to be concerned about what has gone on with the land in the past, what you are allowed to do with it in future, and whether or not you can buy it now. My first question is, in an urbanized area, why has nobody bought it before? If it looks like such a good deal to you, why has nobody bought it? You'll have to do a lot of research in the following areas: Legal: Have you ever seen a lot in the middle of the city that has never been built on? It's possible that an owner in the past has put something called a "restrictive covenant" on the lot. It prevents future owners, forever, using the land for a specified purpose. Someone could have put one on the lot saying it can never have a commercial building on it, or that it can never be used for anything other than a pig farm. You need to make your offer conditional upon you researching the deed to ensure that you can do what you plan to do with the land. The city zoning bylaws might also prevent you from putting the land to use. Does your plan to build comply with the zoning bylaws in Mississauga? There are lots that are too small to build on. Your offer should be conditional upon you determining that the zoning bylaws allow you to do what you want with the lot. If you're buying only on speculation, and planning to hold the land then sell it, do the local bylaws allow you to do that? In many municipalities, the buyer must build on the land within a specified time frame or else ownership is taken over by the municipal government. Flood Plane: Is the lot subject to restrictions under the local Conservation Authority? If it is, it's possible that you can't build on it. Make your offer conditional upon approval of your plans by the local Conservation Authority. Environmental: What's under the dirt? The waterfront in Toronto has not been developed because the soil is so contaminated by industrial waste that the city, who bought the land thinking they could make it beautiful, can't afford to clean it up. What was the lot used for before? Was there a gas station with leaking underground tanks there before? I would make the offer conditional upon having soil testing done to rule out contamination if that's a possibility. Waterfront: There is a list of issues related to waterfront vacant lots. A lawyer is essential in dealing with those issues. Engineering: Can the ground support whatever it is you're planning to do with the land? Is there an aquafer under the lot that makes it unstable for a large building? Soil testing for engineering purposes would identify those issues, and your offer should be conditional upon an acceptable report from an engineer if you're building. Insurance: Is there some reason why you can't insure the property? You're insurance broker can do a search of the property before you make the offer to find out. It's more of an issue with lots with houses than with vacant land, but it's worth making the call. Location: For commercial properties location is even more important than for residential ones. Is it easily accessible, or does it take 20 minutes to get into the driveway through the traffic if you're turning left? If it's residential use you're planning, is it an area that a family would feel comfortable living in? Fraud: Are you buying privately? Mortgage fraud and title fraud are costing the banking system Billions! of dollars every year. It's a huge issue that most people have never heard of. Remember that joke about selling the Brooklyn Bridge? That's basically what's happening. Because of the electronic land registry, it's possible for people to change the names on deeds. People like your parents and mine are having bank officials show up at their door asking them to make up the missing payments on mortgages that they didn't know they had. Is the person that you're buying from really the owner of the land? Financing: The banks will not finance vacant land. They lost heavily when the market crashed in 1991 after they loaned money to speculators buying vacant land. You have to be able to write a cheque for the purchase price. After everything I've said, even I would be afraid to buy a piece of vacant land! You can still buy, but you need to be working with a Realtor who is knowledgeable in all of those areas, and who can write up an offer to protect you if there's a problem in any of them. |
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I discovered that a quit claim was filed on my property; however I never signed my house over to the person who has the claim. My signature had to be forged, what can I do. Frankeeta, Detroit Call your lawyer immediately. Your first priority is to put Title Insurance on your property. It will cover your losses, hopefully, if your house is resold fraudulently, or if a mortgage is put on the property and the bank repossess it when the payments are not made. Your lawyer can get that insurance set up quickly. Another step you could take is to register a huge mortgage against your house, with you as the "lender" on the mortgage so that you have first priority if the house goes into receivership. Someone trying to commit mortgage fraud would not try to get a mortgage on a house with that kind of "first mortgage" registered against it. The next step is to call the police. They might be able to trace the person doing the fraud. To be honest, title and mortgage fraud are such a big issue that the cops have thrown their hands in the air and given up trying to catch the crooks after the fact. If there is a chance that they might catch a crook in the action, they might give you a lot of help. You are in a precarious situation and you need to take these steps immediately. I hope you can contact your lawyer over the weekend to get it resolved. Good luck! |
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Can I fire my agent? Mark, Hamilton ON It sounds like you're having a bad experience with a Realtor. That's regrettable, both for you and Realtors everywhere. We're trying to give ourselves a good name as a group of professionals, but sometimes it's a struggle. The good news is, yes you can change Realtors. I'll assume you're selling. If you're under a buyer's contract, the following still applies to it. If you look at your listing contract, you'll notice that your Realtor's name is not on it anywhere. You signed a binding contract but the other party to the contract is the Broker. ( Remax, HomeLife, Century21 etc office.) The Broker, under the law in Ontario, is considered your "Agent." The Realtor that you've been having problems with is acting for you as a "sub-agent" of the Broker. Any other Realtor working under that Broker can work with you instead of him/her. I'd recommend that you meet with the Broker and outline your complaints with your Realtor, and ask that another Realtor be assigned to your listing. What if he says no? What is your bargaining position? You do have the option of withdrawing the listing from the MLS system until your contract expires. That means it still shows up on the MLS system as an active listing, so people can see it on the internet and Realtors pull it up on the MLS system, but when they call to make an appointment to see it, they're told that it's withdrawn and not available to see. That's not going to get your house sold, but it's what you can threaten to do if the Broker is reluctant to assign another Realtor. The Broker is the one that gets paid when your house sells. Most Brokers would rather have a disgruntled Realtor, and sell the house, than have a disgruntled vendor who is so disgruntled that they pull their house off of the market so that the Broker never gets paid. I'm sorry that you've had such a bad experience with one of my colleagues. I hope that my website has changed your perception of Realtors, and that following my advice helps you sleep at night and sell your house! |
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I purchased a house about two years ago in Welland, ON. Aproximately 6 months after we moved in the spring came and so did the basement leak. The basement was clear of any signs of water damage and nothing was in the basement upon inspection. The basement looked immaculate. Part of my problem is we didnt invest in an inspector. The house looked to be in prestine condition, which it was aside from the now obvious basement. They applied fresh paint the floor and concrete block walls. After this mold quickly settled on the basement walls. The problem is with seepage at the footings. They must have done one heck of a clean up job. Our neighbors mentioned that the sellers were aware of the problem prior to the sale. Is the seller under any legal obligation to disclose this information during the course of the sale? Their real estate agent i believe to be a cousin of their's or a friend. My real estate agent who represented me in the sale felt bad and came around in the spring time. She paid for inspection to get a quote even though she was under no obligation. She is also willing to testify in court. Would my case hold up in small claims court as it has been 2 years since the purchase of the home? Is it really worth it to go to civil court? I am considering small claims where the limit is 10,000 to avoid costly legal representation where i would likely have to absorb 50 percent of all costs anyhow. Do you know how long this process usually takes to get your money in small claims? Any advice is more than appreciated. I understand i am going to have to partially swallow my pride and learn from my mistake but as i said any advice would be greatly appreciated. Jay, Welland ON A home inspection might or might not have caught the dampness in the basement. If you bought in a dry winter, and if the home inspector actually tested the walls for dampness, it might still not have shown anything at that time. Aside from not using a home inspector, from what you've said, I don't think you should feel overly responsible. You were duped. If you can get someone to testify that the owner knew the basement was wet and mouldy, and if you have your Realtor testify that the basement was freshly painted when they sold it, then you would likely prove that the seller had committed fraudulent misrepresentation, or something similar, by not warning you of the dampness. I'm not a lawyer though, so I'll recommend that you find one to advise you on your options and your chances of success. You most likely will have an easier time of it in small claims court. |
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I' m a current student and we are working in an essay in my writing class and the theme is homeownership. What my class would like to know is what does real-estate peoples what to know about homeownership in a 17 year-olds point of view. Mariela, Tucson I have a young friend who saved his money and bought a townhouse with his brother when they were both around 17. They still lived at home with their parents, but they rented the townhouse out. They are around 25 now, and the townhouse is half paid off. My friend just bought a condominium for himself to live in. When the townhouse is paid off, he will still have cash coming in from the rent, and will be able to buy another house to rent out. He will most likely retire as a millionnaire when he is 40 if he keeps going. There's more to life than rap gangsta crap and video games when you're 17. You have a chance to take control of your future, like my friend did. How's that for an essay topic? :-) |
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My sister refinanced her house allowing her roommate to have her name on the deed in agreement that the roommate was to help fix the house up, which she has not done. Is this arrangement legally binding, or what options does my sister have to get her friend off of the deed? Tane, Mobile Alabama You would have to get a lawyer to review whatever agreement they had to see, first, if it's a legally binding contract and, secondly, what provisions are in the contract if either of them don't fullfil their obligations. It's always a problem when people try to be their own lawyers and come up with agreements that are inadequate. With luck, your sister will have had a lawyer draw up the agreement when she put her roomate on the deed. |
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We recently purchased a new home and have found that the Main Floor is approximately 850 ft2 less than what was advertised in the MLS Listing. Also, the house did not come with a Central Vacumum as advertised. What is the realtors responsibility in this case? The agent was acting as dual agent. Tanya, Peterborough ON Hi Tanya I don't have your email address so I was unable to give you an initial more personalized response than the one published here. This was a difficult one to answer because I kept getting off on tangents and had to revise it a lot, and control myself. Most Realtors don't even have a good grasp of Dual agency so you did well to recognize that your Realtor had dual loyalties. Whether or not you were served well depends on when the central vac first came into the picture. On any sale, the Realtors are responsible for creating a legally binding contract that spells out what their clients have agreed to do and are entitled to. The buyer's Realtor prepares the initial draft agreement as an "offer." His responsibility is to protect the buyer's interests. The offer has to specify things that the buyer wants included in the sale, such as your central vacuum. The seller's Realtor looks out for the seller's interests. He is responsible for reviewing the offer and for revising it properly if the seller does not agree to all of the terms. Then the buyer has a chance to either accept the changes, or have her Realtor change it again and send it back. It's not a binding agreement until both sides accept it. When Realtors work as a "dual agent" they are trying to satisfy both parties and they're in a no-win situation. If either the buyer or seller is unhappy, the Realtor gets sued. A Realtor representing a builder, and taking on buyer clients on a building site, is in an ever worse position. While their house is being built, buyers have 6 months or more to look at the plans and dream up a mental image of how perfect the house will be. They can only be disappointed when they walk through what they actually had built. I'm getting off on a tangent again. Back to your vacuum. The MLS listing is only considered advertising in your case. What really matters is what was in the agreement of purchase and sale. Did your agreement say that a central vac was included? If it did, then the builder owes you a central vac. If it didn't, and if the Realtor told you that it was included in the offer, then the Realtor owes you a central vac. If you didn't mention a central vac to the Realtor, and assumed that it was included, hang on to your Eureka. Depending on the actual circumstances, you might be due some compensation if it was the Realtor's fault that you didn't get the vacuum. You should be able to negotiate something with the Realtor's Broker or, failing that, find satisfaction in small-claims court. If you have unsatisfied concerns about the Realtor you can report him to RECO, the licensing body in Ontario. When a builder hires a Realtor to list a number of unbuilt houses, the Realtor lists the lots separately with a proposed model described for each lot, even though it's a vacant lot. It's common for a different model than the one on the MLS listing to eventually be built on the lot. I'm wondering if you bought a house that was already built as a model, and then found the original MLS listing for the lot with a different house and thought your house should be the same size. Similarly, the central vac might have been included on the original model, but not on the one that was built. As I said, on builder's homes, the MLS house description on an unbuilt house is just fluff. If the house was misrepresented in your contract, that would be a different story, and one of those tangents that sidetracked my earlier responses. Thanks for your interest in my website and for waiting so long for an answer to your question! |
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I am selling my home and I am about to sign an agreement with a real estate agent. I've noticed in the OREA Form 200 a clause which seems to imply that I am required to pay the realtor's commission when my house sells, even if the transaction is not completed due to my default or neglect. What does this mean? I understand that this clause is set up to protect the agent from the possible scenario that the seller backs out of the signed 'Offer to Purchase' at the last minute. But, what if the deal doesn't close due to reasons the seller cannot control? i.e., What if a tree falls on my house before the closing date and I cannot afford repair the house in order to complete the transaction? Would this be considered my 'default' or 'neglect'? Am I still legally obligated to pay a commission to the realtor, even though the transaction falls through at the last minute? Should I put my own clause in the agreement that bars 'Acts of God'? Danielle, Brighton ON I'm pleased to see you're paying that much attention to what you're signing. That clause is there to basically protect the Broker from morons, not you. Relax! If you're reasonable enough to question it, and have not covered up anything in your house that would harm a buyer, then you're not the kind of person who would kill a deal and trigger the clause. As for the acts of God, if a tree falls on your house, and your insurance won't cover it, the buyer isn't going to want to buy it anyway. The buyer will kill the deal, not you, so you're off the hook on the commission. What I say to assure my clients is: the OREA forms have been used by hundreds of thousand of people like you. If there was something in them that was unfair to either a buyer or seller, it would have been removed long ago. There are enough hungry lawyers out there to ensure that legal action would have been taken to remove the clauses. You can feel protected by the forms, not threatened by them. |
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We are planning on purchasing a condo that our son will live in for about 2 years before he graduates medical school. Is it better to have him on the title initially or to do this upon transfer with a quit claim after graduation. I was thinking it would be best to wait until the later date as the appreciated basis would be higher for him. Please advise. Pam. Clifton VA There are three possibilities: putting only your son on the deed; putting only the parents' names on the deed: or putting all three names on the deed. There are reasons, related to the unique relationship between every parent and their kids, that would make one of the choices more appropriate than the others. For example, you might doubt his responsibility based on his past actions. You would choose to have your names, either solely or in partnership with him, on the deed so that you can maintain some control over the maintenance, use and disposal of the condo. On the other hand, you might trust him completely and have only the tax considerations as your concern. I'm not familiar with the capital gains tax laws in your state or country. If a principal residence is exempt from capital gains tax, as it is here in Canada, then it makes sense to put it solely in his name since it would be a tax-free capital gain for him, but would not be for you. If not, you might be able do to some income sharing arrangement that would let the one taxed at the lowest tax rate (him presumably) take the greatest advantage of the capital gain. I will encourage you to seek the advice of a tax accountant in Virginia to get expert advice on the tax implications of your choices. You should also then meet with your lawyer to see if there legal, or legal-expense, issues related to each of the options that you are considering. It sounds like your son has great parents who are giving a great head-start in life! Good for you, and lucky for him! |
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My husband and i are currently looking for a home in alberta,He has gotten a job there.I heard that it is very easy to buy a house through a mortgage broker,is this true?How do we go about this?Also,Do you have any names of brokers in the slave lake area?We were also going to see if we could get a foreclosed home.Is this a good idea?Is there a lot involved in buying a foreclosed home? Thank you. Lisa. Nova Scotia Your friends were a bit confused about mortgage brokers. Let me clarify how they work with you, and I. A mortgage Broker is kind of like an insurance Broker, only they get you a loan instead. They don't get involved in selling houses. They take your info, then "shop" your mortgage around to different lenders to get you the mortgage that is most favourable to you. I've seen people be turned down for a loan by banks, then when they try again through a mortgage Broker, one of the same banks approves the loan for an even higher amount! The lenders pay the mortgage Broker's fee so it usually costs you nothing, or under $100 if anything. The beauty is that they do all the work instead of you wasting 2 or 3 days meeting bankers. You can explore Slave Lake and look at houses instead of sitting in bank waiting rooms! A real-estate Broker, on the other hand, works for home buyers and home sellers, and helps them get the best deals with their houses. Realtors are representatives of the Broker and do the face to face work with the clients. Most clients never meet the actual Broker. As a buyer, you should find a Realtor in Slave Lake and sign a buyer-agency agreement with them. It costs you nothing, but it makes them legally responsible for getting you the best deal. There's more on my website about how that works to your advantage. I don't know any Realtors in Slave Lake. I could do a search for one and hook you up but I'd get paid for referring you to a stranger and I don't feel comfortable doing that. Instead, I'll recommend that you Google Slave Lake and Realtor. Look at the websites and see who looks professional and appeals to you. Pick a big name that you recognize, such as HomeLife, Century21, Royal LePage etc. Call the office and ask for the Broker. Explain what kind of people you are comfortable working with (younger/older, suit/blue jeans, fun guy/serious guy etc) and ask who in his office you should speak to. The banks list their foreclosures and power of sales with Realtors, so your new Realtor can help you find one. If you're an experienced homeowner and are not afraid of renovations and houses with problems, you can tackle a foreclosure. For the average person, the problems that you buy are not worth the small amount of money you save when you buy a foreclosure. I go into more detail on power of sales on my FAQ page. You're moving half-way round the world girl! At least they have water to look at in Slave Lake. Well, I assume. Good luck! |
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Hi Bill, I recently put a bid on a house, and it was excepted. There was a mistake in the contract about the closing date which I have not intialed. Am I still binded to this contract even though they accepted the price but there is a mistake on the contract?Is there something else I must sign before the deal is concrete? Tom, Hamilton ON If you and the seller still want the deal to go through, you would both sign an "amendment" to the agreement that clarifies the actual closing date and makes it legal. If the closing date is a deal killer for both of you, and you can't agree on one, you would both sign a document cancelling the agreement and walk away. If only you want to get out of the deal, technically you can because the contract is incomplete. So can the seller if only they want out. The problem with a one-sided deal killer is that the people who want the deal to go through will most likely sue to make the deal-killer complete the deal. Whether they win or not is not as much of an issue as the legal costs and the endless legal proceedings that will sap everyone both financially and emotionally. And you still won't have a house the whole time. As you can see, there are a lot of "ifs" to consider. The big one is, if you still want to buy, and they still want you to buy it, there's no problem that can't be worked out. |
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How long does it take to have a foreclosed property go up for resale? We were talking to a real estate agent and she said it could take up to six months? I think she was trying to deter my husband and self to buy other properties she had, am finding it hard am anxious to look at this property, but how long do I need to be patient? Any information on the proper way to do this and any information on how to properly obtain the home when it has been foreclosed on would be greatly appreciated. Angela, Toledo ON There are two processes that lenders use to take back a property that is in default. During both processes, the owner has the opportunity to stall the process with the supposed intention of coming up with the money to pay the lender off. Depending where in the default cycle your property is, it could take several months before you could buy it. The less common one is foreclosure, in which the bank goes to court and is awarded ownership of the house. The borrower/owner is out of the picture. The bank can then sell it to recover the amount owing on the mortgage, creating a good profit opportunity for buyers. Foreclosure is a process that was used in the "olden days." It is a long messy and expensive process. Today, most lenders' mortgages include a clause that gives them the "Power of Sale" instead. Under a power of sale, the owner still holds title to the house, but the lender has the legal authority to list the house, negotiate offers, and sign the purchase agreement to sell it. The lender cannot sell the house for less than it's market value because the borrower stills owns it. If they sell if for too little, the owner can sue the bank for the difference. The house you are lusting after will most likely come up as a power of sale, and not a foreclosure. A power of sale is the absolute worst way to buy a house. You will pay the same price that you would for a similar house in the same condition, but you won't have any of the warranties and remedies that you would have if you bought a normal resale. Power of sales are sold "As Is." If there's something wrong with the house, you have no recourse. You're stuck with it, and the repair bills. I have never represented a buyer on a power of sale. If I couldn't change a buyer's thinking with what I've just explained, I'd either refer them to another Realtor, or I would have the buyer sign a document saying that they were aware of the disadvantages of buying a power of sale and were buying against my advice. If, by some miracle, the house does end up in foreclosure, and not under a power of sale, you still have to cover yourself. If you've lived next to the house for 20 years, and know who owned it, consider buying it. If it's a house that your not familiar with, talk to the neighbours and find out what kind of people lived there. Most home invasions are not random, and the victims usually have not lived there for very long. The invaders are usually thugs sent to collect money from the drug dealers that they think still live there. Have a detailed home inspection done BEFORE you make an offer. You cannot make your offer conditional to an inspection on a power of sale. Most repossessed homes have not been well maintained. Mold is a serious concern and you should have a mold inspector go through the property too. Call your insurer to find out if you can get insurance on the property. If there have been many claims, or even attempted claims (which is possible if they were hurting financially) against the previous owner's policy, the property could be blacklisted on the insurers property registry. You know that expression about things that sound too good to be true? How could it be possible to take over someone else's house for much less than it's worth? Even in a tax sale, there are so many other buyers putting in bids, the winning bid is still close enough to the market value to not be worth assuming the risks to get it. It won't surprise you that I think the Realtor was trying to do you a favour by talking you out of persuing the foreclosure. Ask her to show you the best houses that you can afford on the resale market. You'll find one that you love, and you'll sleep better buying it, and owning it. |
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Our home is in my husband name. We have been married for 10 years. We want to put my name on aor home. How do I quick deed the home so it can be in both our names? Eula, Michigan Hi Eula. Your email address didn't work so you're seeing my answer here first. The best way to do put your name on the deed is to let your attorney do it. It is a simple matter of "selling" the house from your husband to you and your husband jointly, as far as the deed registry is concerned. You could try to do it yourself but a tiny mistake could make a huge difference when you try to sell the house later on. If there is a mortgage on the house, the lender will need to be consulted too. Usually they only get excited if a name is coming OFF the deed, rather than going on. If there is a change in ownership of the property though, they have to be notified. Thanks again for your interest in my website, and for getting in touch! Good luck with your deed. |
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If I want to add my name to the deed for the house that my son owns free and clear. What form do we use? And can I get this form online. Mary-Lou, Arizona When a lawyer/attorney represents a buyer on a sale in Canada, they have to research every previous transaction going back 40 years to ensure that there were no errors or ommissions in any transfer of ownership. If there is a glitch in the past records, it stops the keys from changing hands today. Up here when the keys change hands, the deed changes hands, so it gets very messy when the deal can't close. People end up sleeping in their cars. In the USA, you have that whole escrow process that keeps ownership from changing hands for months or years after the keys change hands. The last thing that you want to do is create an obstacle to a change of ownership and make some future buyer put their lawyers' kids through college because of mistakes you made trying to transfer ownership from your son's name to joint ownership. They'll sue to recover the costs that they incurred because of your neglect. The amount of trouble you could create far exceeds the inconvenience you will avoid now by not meeting with your attorney. There are things that people can do on their own, even selling their own house. This ownership transfer is not one of them. It won't cost you a lot of money to have an attorney do the paperwork for you and ensure that it's all legal and accurate. Please get professional help! It's worth it. |
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I'm trying to sell a farm house, which I've gutted and rewired. This area is a good market, with excellect schools. How do I sell the house for someone to fixup? Missy, Tennessee I would list it with a local Realtor/Broker on the MLS system to get the best exposure. That will get you the best price. Describe it as a handyman special, or a fixer-upper. Be honest about what's there otherwise you'll be pestered by a lot of people looking for a different type of property, and the renovators won't come to look at it if you make it sound like a house that doesn't need renovating. To determine the RIGHT price, your Realtor would have to help you figure out what a typical house of that size and type would sell for, on the same amount of land, AFTER it is fixed up. Then, subtract the estimated costs of taking the house from the condition that it is in now to that fixed up condition. That's how the buyers will figure out what is the right price to pay you now. List it close to that price to ensure that you get the most number of buyers interested. It demonstrates that you are realistic about what it is worth and are willing to treat buyers honestly. |
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I have a question about vermiculite and asbestos. While looking for a house, we found one that we really like. However, the disclosure indicates that insulation has vermiculite which may contain asbestos. I have looked around web and found some info. However, I am not able to find much info on how such houses do at sale - If I bought the house and covered the rafters area in attic with plywood to cover the underlying vermiculite - will the propertybe treated as untouchable by potential future buyers. My real estate agent and her network do not seem to know much about this.I am specifically interested in remedials for this problem and marketability of this house in future. Many thanks for your help. Sanjay, Longmeadow Mass You've likely concluded from your internet research that vermiculite is only a health risk if it is disturbed. If the daily activities of living in your house don't stir up the insulation, you likely don't have to take any remedial action for your own well-being. If you were selling it today, vermiculite would only be an issue for a buyer who was planning to renovate. The vermiculite would add to the expense of the renovation. The buyer would factor that cost into his offering price if he had to disturb the insulation in the attic to renovate. For the average non-renovating buyer it's not a risk and so far hasn't affected values. It seems that vermiculite hasn't caught on as an issue the way UFFI did. Who knows what the future holds though? If the media gets hold of the issue, it could create a panic amongst buyers and turn your non-risky house into a stigmatized property. I guess your choice depends on your priorities. If your love of the house is greater than the value that it could potentially lose, buy it. If maintaining the house's value is more important than your enjoyment of it, you should avoid the risk by not buying it. You'll have to consider if you actually have any other options though. If you've narrowed your search down to one subdivision, the odds are that all of the other houses around it are the same age, were built by the same builder, and also have an attic full of vermiculite. It was used for several years by most builders. If you're looking at houses of that vintage to stay in that price range, you might not have many non-vermiculite options. You might find otherwise though. I'm not familiar with your local market. If I had a crystal ball, I could give you a more helpful answer about future values. It's a gamble and I hope I've been able to help you make a decision. |
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Lady bug infestation, unfinished window frames etc etc...There is more - but I think you get the point. Are we stuck - did the seller have an obligation to disclose these things? What do we do? Kate, Pembroke ON The courts have ruled that sellers have an obligation to tell buyers about things that would not be obvious to the average buyer. When the sellers cover things up, they lose in the subsequent lawsuit. Sometimes they are charged with fraud too. You should be meeting with the lawyer who represented you on the purchase. You need to take legal action. Did you have a home inspection done? Was it a private sale? I'm astounded that your Realtor let you buy a property like that. Get back to me with more details if you can, please. To answer your questions , yes we did have a home inspection, but as this was a winter purchase in Northern Ontario, there were an number of issues hidden under several feet of snow. We have come to feel that indeed our realator may have failed us to some extent in this process. We only last week came to understand that only part of the sellers information survey had originally been shown to us! I have also been told that your realator typically attends the home inspection with you (is that true?). Ours did not, and we are wondering if that was appropriate. We have also come to realize that there were a lot of other things we could have dome to protect ourselves in this sale, but we were not aware and not advised accordingly by our realator (such as weel and spetic location surveys, well inspections etc). We are not the law suit type of couple, but are quickly realizing that this may be where we are headed. Any further suggestions as to resources or trustworthy consultants would be greatly appreciated. Or even if you know of any case studies I might read to have an understanding of the legal precidents would be great! I usually don't go along for the home inspection as long as the buyers themselves are going. I usually speak to the home inspector after though to be sure that the buyers understood the faults in the property. If the buyers don't go, I go as their representative - I'm their eyes so to speak. If they have concerns, I can take them back to the house and point out exactly what the inspection report is talking about. You can report your Realtor to RECO, the body that licences Realtors in Ontario. They will review your complaint and decide if the Realtor acted appropriately. They issue fines, but they don't have anything to do with getting you compensation for your losses. Your lawyer is your best resource at this point. He can give you an idea of how much it will cost to sue, how long it will take to get it resolved, and how likely you are to get full compensation. Most judges don't make one party take all of the blame. They assign some to the home inspector, some to the Realtor, some to the sellers, and some to the buyer. Then it's a matter of recovering damages from each of those people (getting them to actually pay.) Your lawyer can also advise on how typical cases like yours have ended up. We don't really have precedent law in Canada. Judges don't pay any attention to what other judges in similar cases have done, aside from Supreme Court rulings. They're basically on their own. Thanks again for getting in touch. Good luck with getting satisfaction. On behalf of all Realtors, I'm sorry that you've had a less than perfect experience with one. I hope you will trust us again the next time you need to buy or sell a house! |
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We sold our house. We are still waiting for the buyer to get the mortgage approved from the bank. When we signed the counter offer, our real estate agent advised us not to put the clause on condition, if we do not find another place it will be cancelled. Our problem is, we can not find anything. Is there a way of getting out of the sell? We should have looked before signing, but she said we will find something. We have not. Hazel, LaValle PQ That thing that you signed is a legal contract. Once you and the other guy sign it, you're both locked into the terms that you've agreed to unless you both agree to cancel it after you sign it. Has your Realtor been in touch with the buyer's Realtor? There's an outside chance that they are having second thoughts about buying your house too, and are looking for a way to get out of it. Your Realtor got you into this mess. Put some pressure on him/her to get you out of it. Get some communication going between the Realtors and see if there's hope. If the buyers still want to buy though, and unless there's some provision in your agreement that you haven't told me about, you'd better start packing. Unless I'm wrong, you listed your house because you wanted to sell it. You succeeded! You're now unencumbered and free. Enjoy it! Pack up your wordly goods and put them into storage. There are tons of storage places around now. Live in a hotel and try a different room every night. Stay with friends 2 days at a time. My point is, you're not homeless. You just sold your home and you can afford to buy your next one. Make the transition an adventure! Be the kids you were when you were first married. Thank you for answering me so fast. Another thing we noticed and realized was, that we have not received the signed counter offer of acceptance by the buyer.(where they sign & we sign that we accepted) We were only told verbally by phone by our agent. It has been 8 days. They have 10 days to get back to us if their mortgage request if accepted. By reading the papers more closely it looks like we should have had the sighed counter offer within 48 hours of their acceptance. Please advise if it is legal & binding to tell us by phone, only.Thanks Hazel You should have been given a copy of the accepted offer. It's still legal even though you don't have it. It's just sloppiness on your Realtor's part. It sounds like they made an offer, you made some changes and sent it back to them. If they accepted that offer without making changes, then it's legal. If they made changes to it, but didn't send it back to you so that YOU could accept the changes, then it would not be legal. There are enough things wrong with the way your deal has been handled that I suggest that you get a copy of your agreement of purchase and get your lawyer to review it to see if it's legally binding or not. You might be able to get off the hook through a legality. |
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If two couples want to buy a duplex that is being sold for 1,100,00.00, is there a way for each couple to apply for a seperate mortgage for each unit? If so, when one unit is three bedrooms, 2.5 baths and the other is two bedrooms, two baths, how do you figure out the percentage of each mortgage? However, if the answer is that both couples have to go in on one mortgage, I assume amongst ourselves we would have to set up an account to make the payments and amongst ourselves we would have to figure out the percentage of responsibility. But, if the latter is the correct scenario, at the end of the year, how do the couples do their taxes, in regards to who gets to write off interest,etc.? Ana, San Carlos CA A mortgage is registered against a deed for a property. If your property is a side by side duplex, it's possible that they could be divided so that each has a deparate deed. You could then buy them separately. Your name would be on one deed. You friend's name would be on the other deed, and you could each have your own mortgage.You would just be neighbours basically. If it's an up and down duplex, there will only be one deed, since the deed relates to the land under the house, not to the buildings on it. In that case, you would each go on the deed as owners. You could put a "first" mortgage on it, in your name, to get your share of the funds. Your friend would put a "second" mortgage on it, in their name, to get their share. Second mortgages are more expensive than first mortgages. An appraisor can help you dectermine how much each half of the house and land is worth. You would also have to factor in the portion of the downpayment that each of you is contributing. Should the one paying the second mortgage be compensated somehow? You should have a detailed partnership agreement spelling out what is going to happen if one of you wants to sell, if one of you dies, or defaults on their mortgage. It might be simpler to just buy jointly and have one mortgage with both names on it. All of the above is my Canadian answer. There might be reasons why you can't do that in California. I'd recommend that you ask your attorney what your options are, and also consult with a tax accountant for answers to your tax questions. |
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What are the regulations for measuring square footage when listing your home in Niagara County NY? Also, if your house is on tiered land of sorts and your finished "basement" is on ground level at rear with walk-out sliding doors to patio can this be included as square footage? I would appreciate any info.....very confused? THANKS !! Janet, NY State Each Real Estate board has it's own conventions for measuring, but they're all pretty close. The purpose of the rules is the same as if you're selling privately; the intention is to not give the seller a reason to say that you misrepresented the property and ripped him off. The listings describe square footage, and total square footage. "Square footage" includes heated living space above grade. The measurements are taken at floor level on the main floor, and on higher floors. Stairs are considered a part of the upper (second) floor, but if there's an open galley overlooking the main floor, as is often found in a foyer in a large house, the square footage of the second floor does not include that big piece of floor that is missing where the opening is if it's not over the stairs. If the top floor is a converted attic, the square footage of that floor only includes the heated living space, not the attic space outside of the kneewalls (the wall where the ceiling slopes down and you bang your head if you get to close to it. ) If an enclosed porch or Florida room is heated, it is part of the square footage. If the garage is insulated and heated, it is not considered "living space" so it is not included. The magic words are "heated living space." "Total square footage" includes the regular square footage plus the FINISHED area of the levels below grade. If the basement is unfinished, the square footage and total square footage are the same. Some houses are built on slabs or are on a crawlspace, and have no basements. If half of the height of the lowest level of the house is below grade, on any side, it is considered a basement. (If it's more than 1/2 in the ground it's technically considered a cellar but most Realtors still call it a basement.) So, the finished parts of your finished walk-out basement would not be included in the "square footage" but they would be part of the "total square footage." |
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We are looking for the chance to find a fixer upper in the Brampton area and work on it and sell it in the future for a handsome profit. The houses that we've been looking at in the area are more or less the same (they need a new kitchen and a bathroom, update on the flooring, and finishing up the basement (potential for in-law suite.) There are plenty of these homes in Brampton that sell for little below market value. It seems that it would be hard to recoup the enhancements I've listed above when you factor in the commission and the selling costs. Our agent doesn't seem to knowledgeable in what we are looking for and it seems paint is her magic answer to everything. Is it possible to make money with the average house in a suburb in the GTA by doing what I plan on doing with it? Dylan, Brampton My general answer is that if you hire contractors to do the work, you likely won't recover your costs when you sell. If, however, you are doing the work yourself and only paying for materials, there's a chance that you can make money renovating. Even then, you have to buy the right house. Your strategy should be to buy the worst house on the street and bring it up to the stardards of the other houses around it. If you buy a dump on a street full of similar dumps, the other houses will bring down the amount that you can sell for. It's a ceiling imposed by the neighbourhood. Look for a house that doesn't need to be gutted. The more cosmetic the improvements are, the better your chance of making money. If you're doing massive overhaul of a kitchen and bathroom - moving plumbing etc - you likely won't get out what you're putting into it. If you can change the carpets, lay some hardwood floors, resurface and paint the existing cabinets, and only change the jewelry - taps, lighting, electrical outlets, switches and covers - you'll get a better bang for your buck. It's amazing what just cleaning up a house and property does for it's perceived value. Let the new buyers do the basement themselves. Definitely don't put a basement apartment in a house unless you're planning to keep it and collect the rent. I do recommend painting as much of an unfinished basement as you can though to brighten it up. Walls, ceiling joists, and the floor. Nobody ever paints their basement floor but it makes a huge impact. Please check out my Renovating for Profit page for more on renovating. |
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I have a friend who has been asked to cosign on a mortgage. Does this give her property rights and included her name on the deed to the house. Jennifer, Las Vegas Hi Jennifer. Your email address didn't work so your answer is poster here: The mortgage is a contract between the lender and the homeowner. It spells out how much money the bank is lending, and what the bank can do if the borrower doesn't pay it back. It usually says that the bank can either seize the title to the house, if the payments aren't made, or force the borrower to sell the house and give the bank their share of the proceeds. If the bank is suspicious of the borrower, they ask for a co-signer. The small print says that if the bank can't get all of its money back by taking the house, they can go after the co-signer for the missing money. That's the extent of the co-signer's involvement in the deal. There's a house over on one side that the bank can take, and the co-signer way over on the other side, and no connection in between. Your friend's name doesn't show up anywhere, other than on the mortgage. She has no claim to the house or anything else. She's just the backer. It's not a thing you would do for someone you didn't love or trust completely! |
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"Satisfactory home inspection" - what does this refer to? Can a buyer walk away from an agreement to purchase if an inspection report shows very few problems or the problems represent few dollars? Is the buyer obligated to share the information with the seller? Never having owned a home I find the phrase satisfactory home inspection extremely grey. Bill, Toronto Contracts/offers are always written to the greatest advantage of the person making the offer. The "satisfactory home inspection" wording gives the buyer the right to kill the deal for almost any reason. Technically speaking, even if the house was fine, they could get out of the deal if they didn't like the way the report was written, or if they didn't like the Inspector! It's up to a Seller's Realtor to go over offers and change the offer to protect the Seller's interests. It depends on the circumstances, and how the negotiations are going, but in a perfect world the Seller's Realtor changes the clause to tighten it up. I like to see it be subject to the Inspector not finding "structural or mechanical faults" that the buyer wasn't aware of after their own inspection of the property. The clause should address the seller's options if the buyer wants to back out because of it. Do they get to see the report, or get to know what the buyer found objectionable? Do they get to repair the faults and complete the sale? It depends on what the clause says. Home Inspectors have been a factor in real-estate deals for less than a decade, and I think we're all (Realtors and Lawyers) still trying to find the perfect home inspection clause. Most of us have favourite clauses that we use, one if we're Buyer's "agents" and on if we're Seller's "agents." I still struggle with it, and I'm a writer! It's a nightmare for most Realtors. Since you've never owned a house before, I suspect that you're in the process of buying one (or a new Realtor. I advise lots of them!). If you're buying, be happy that your home inspection clause is still worded that way! It leaves your options open. |
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Question regarding multiple offers which is getting more and more common in today's market. And it's very frustrating for the buyers. As a buyer, we have to reply on the agent of the seller to tell us how many potential buyers have registerested offers. In the case when offers are asked to be faxed in, we have no way to confirm if the number of offers that the agent claims is true, which could greatly affect how much we would bit on the property. Can we trust the seller's agent? Is it a serious professional misconduct for the seller's agent to make up the number of registered offers in an attempt to get a higher offer from a serious buyer? Thanks, Hong, Scarborough Realtors are bound by the codes of ethics of their real estate board (Toronto Real Estate Board in your case) the Ontario Real Estate Association and the Canadian Real Estate Association. In Ontario, we also have another code of ethics for the Real Estate Council of Ontario. All of those codes of ethics, in one way or another, say that a Realtor has to be honest in dealing with customers, clients and other Realtors. If you could prove that a Realtor lied about the number of offers registered, you could file an ethics complaint against the Realtor. RECO is the authority that Realtors fear the most and the people I would go to first. Please go to the RECO website to see how that works and if similar complaints have been published. |
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Am I legally required to accept an offer if it is at or close to my list price? Judy, Ontario The only "legal" obligations you have are those you have committed yourself to in contracts related to your house, such as a Listing Agreement or an Agreement of Purchase and Sale. There are no statutes governing house buyers and sellers. If you read the standard OREA Listing Agreement you'll see that you're actually hiring the Brokerage to procure offers, not to sell your property. It also says that if an offer comes in, and the sale isn't completed because of your default, you still owe the Brokerage the commission. If your offer would be acceptable to the average seller, and you didn't accept it, there might be grounds for the Brokerage to go after the commission. It's pretty rare for a Brokerage to go after a seller who defaults on a sale though. The amount of money involved would have to outweigh the bad publicity and lost future business from that seller, and the legal costs of going to court to collect it. Having said all that, there are issues in an offer, other than money, that you might object to. The price might be right, but the buyers might include all of your furniture and want you to move out tomorrow. You don't have to accept an offer if it is not reasonable or acceptable to you. You don't even have to make a counter-offer to an offer, although Realtors like to keep deals "alive" and keep the buyer around by making one. If you're in an offer situation, and are not comfortable with the advice you're getting from your Realtor, you should have your lawyer review the offer and your listing agreement and explain what your options are at that stage of the offer. Every deal is different and yours might not be a typical one. |
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We purchased an older house to fix up at the time of sale both realtors sold the house as a 3 bedroom house. Now that we are starting the process of remodeling the health dept is saying it is only perked for a one bedroom home, so now we are stuck with a two room house bascially and cant get a permit for an addition. We are thinking of taking legal action because they have sold us a house with false information and told us the health dept had only one sheet of paper on the house when really our file with them is an inch and a half thick. What do we do? Kira, Virginia Up here in Canada, a court's judgement would be based on whether the price you paid for your house was appropriate for what you got, or if what you paid was excessive for what you got. You would need a professional appraisal to determine and demonstrate that for a judge. If you paid too much, the court might make the Realtors pay it to you. Even if you paid an appropriate price, there is still the issue of your understanding of how you could use of the property being different from what was legally allowed. Your Realtor (if they were under a buyer-agency agreement) has a responsibility to ensure that you can use the property the way you intend to. Lawsuits against the Realtor usually are settled in the buyer's favor when the Realtor fails to do that. Apart from the legal issues, it sounds like the Realtors misrepresented the property either out of incompetence or with the intention to deceive you. In either case, their behaviour should be reported to the body that licences Realtors in your state, and to the local real-estate board that they belong to. If they do that kind of stuff routinely, they need to be fined or have their licences revoked. In a lawsuit, their behaviour and the health department files would be useful in demonstrating what kind of credibility the Realtors have, and would swing the judge's sympathy in your favor. I started out talking about my country. There are legal costs associated with seeking restitution through the courts. In Canada they are often too high to justify the expense of going to court, but in your country the courts often award for non-financial losses and you could be completely justified in going to court. Please consult with your attorney before taking any action or inaction based on anything I've said. You should be going after somebody though. You've been left with a bad perception of Realtors, and for that I apologize on behalf of Realtors everywhere. |
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If someone builds a house on some else's land,could they legally get a deed just for the house? Brenda, Virginia A deed relates only to a piece of land. It spells out the location of the lot in a particular country, state/province, township, city and right down to the meridian degrees on the map of the survey posts on the 4 corners of the property. When you buy a "house" what you are actually buying is a piece of land with some buildings on it. The only way to put a building on a piece of land that you don't own is by leasing the land from the owner. The lease gives you the right to erect a structure on the property, and spells out how long the lease lasts, and what happens if you don't make the payments. A mobile home park is a land lease situation. The park owns the land and leases out parts of it to people who pay monthly rent for the lot. When they stop paying the lease, they have to move their mobile home off of it. Here in Canada, the government leases cottage properties to residents. The occupants pay the government for the use of the land, and when the lease expires they have to tear down the cottage that they built. I'm not sure what kind of leasing arrangements are common in Virginia so I can't comment on what's possible there, but generally it's a civil matter between two citizens and they can make whatever contractual arrangements they like, as long as it's not breaking a law. Your attorney can advise you more knowledgeably if you're thinking of doing a land lease arrangment. |
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We placed an offer on a home, there was already an offer on it, but the other buyers had to sell their house. On May 1 at 11 am, we remove all of our conditions, so it is now a firm offer. The first people get 48 hours to either remove their conditons or they lose it. The people who own the house that we bid on are separated, and they could only give the husband our firm offer, they said they had to wait a day to get a hold of the wife, and therefore it would be 72 hrs. Is this right? Why should the first offer get another whole day to sell their house? I thought as long as one of the parties were notified, then the 48 hours would begin. We are afraid the extra day will make us lose the house of our dreams !! Janice, Warkworth It depends on the "address of service" in the offer. If the offer says that the buyer's Broker's address is the "address of service" then it means that when the Realtor/Broker get your notice, the sellers have the notice immediately. If the address of service is the sellers home address, then when your notice is delivered to that address, the clock starts ticking. If there were 2 addresses, one for the husband and one for the wife, then they both have to get the notice at those addresses before the clock starts ticking, in which case what they told you would be right. It's likely not much of an issue though. It's only in a very very small number of cases that the buyers in the first offer have a buyer for their own house waiting in the wings. If they didn't sell it in however many days they had to sell it, they likely won't find a buyer at the last minute when you give them notice. You'll most likely get the house. I know it's frustrating, but relax! It's almost yours! |
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I recently purchased a Condo.When we viewed the Condo on an Open House and Revisited before our offer went in we did not see any Pet Stains however after Taking possession we found pet stains everywhere. We are looking at going to Small Claims Court.Have you heard of any other instances of this sort? I like to give buyers the opportunity to make a final inspection of the property a few days before they take possession so that damage to the house or land can be discovered before the keys change hands. That way, the lawyers can hold up the sale if you have serious concerns. Please consult with your lawyer. There might have been some provision in your offer that covers you in this kind of situation. Otherwise, small claims is likely the best way to go unless your lawyer says otherwise. Go to court armed with information. Judges love to see documentation. Dated E-mails, before and after photographs, dated notations made during phone conversations about the problem with the Realtors. Anything that makes you look professional and organized will make the seller look sketchy if they just show up unprepared. You'll need to give the judge an idea of what kind of compensation is in order. Will having a professional steam clean the carpets resolve the stain issue, or do the carpets need to be replaced? Go in with more than one professional opinion of how serious the stains are and what the costs to remedy them will be. I suspect you're onto that already though. To answer your question directly, yes, buyers are often distressed by the state of the property when they take possession. That's why I like giving them the final inspection option in the offer. The lawyers can negotite a "condition of property" adjustment to the final adjustments before the deal closes. Good luck with your new house. I hope the stain issue doesn't diminish your enjoyment of it after you settle in. |
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There is a house that I had looked at and decided to put an offer on, but when I called to talk to my real estate agent about it, someone else had put an offer in. I was told it appears that the offer/contract is solid. Is there anyway of this property still being available to me? I know that if the seller or the buyer backs out the house will go back up for sale, but i guess I am wondering if the contract means that unless someone backs out there is no chance of me getting this property. This is a dream house of mine and I would do anything for it. Anonymous Yes, you can still put in an offer, but it must have a clause saying that it is conditional to the seller being released from any previous agreements of purchase and sale. If the other buyers have some conditions to satisfy, you have a chance. If their offer has no conditions, you should not be hopeful. That offer would lock you into buying that house though. What if an ever more perfect house popped up on the market tomorrow? You wouldn't be able to make an offer on it. It's not the best position for you to be in. Keep looking. There are always houses coming on the market. You'll find one even better! That's the fun of buying. |
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We have made an offer to purchase a house - the offer was accepted. The home inspection showed issues with galvanized plumbing and knob and tube wiring still being present in the house. We amended our offer with the condition that the galvanized plumbing and the knob and tube be removed prior to closing and we also requested a signed statement from licensed electrician and plumber be submitted to us before closing. We completed the home inspection today - galvanized plumbing still present and we are unsure of knob and tube. vendors have provided a statement from themselves stating knob and tube and plumbing have been removed. We are very uneasy about closing on this deal. we would like to cancel the deal. How can we do this without being sued? Allee, St Catherines ON If your revised offer says that the deal is conditional to the plumbing and wiring being replaced AND to documentation being provided from a plumber and electrician confirming that the work has been completed, then you are technically out of the deal now because that condition has not been fulfilled. If it says that the deal is conditional to the plumbing and wiring being replaced, but you only made a verbal request that documentation be provided, then it's up in the air. The offer should have spelled out what work was to be done, how it was to be done, how it would be documented, how long you had to determine that the work had been done, and what would happen if you were not satisfied with the work that was done. You should meet with your lawyer, have him review the contract, and find out what your options are based on the wording of the offer. Replacing the plumbing and wiring in a house is a huge expense. If they actually did that, based on the Home Inspection, they must be very motivated sellers. If they went to that length to sell the house, they will still be willing to work with you to get the house sold. Tell them you want to bring the same Home Inspector back in to determine if the work has been done satisfactorily. If the work really was done, they will not object. Why would they? If they do object, it's because they know the work was not done, in which case you should walk away. If you do walk, they can't sue you because they don't have documentation to show a judge to prove that the work was actually done. If, by some insanity, they really did have the work done, and then they do show up in court with documentation, they'll lose. The judge will tell them they can't sue you for not completing the deal when the deal fell through because they didn't provide you with the very documentation that they are presenting in court. Well, that's my non-lawyers opinion. Check with yours please! |
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My husband had purchased a house before we met. We have been married for 9 years and he passed away last year. I have been noticing small sink holes in our yard and around the foundation of our home. The house was built in 1854. Our garage used to be a blacksmith shop. I also noticed recently that there are metal pipes sticking out of the yard by the garage. I never noticed these before because my husband always did the yard work. Do I have to turn this in to someone? I am trying to remodel my home to sell it, but can I with these pipes here? HELP PLEASE! Fay, Wisconsin Dells First let me extend my condolences on the loss of your husband. Unless you were heading for a divorce, it was likely the most painful experience of your life and I'm sorry that you had to go through that. It sounds like you're getting on with your goals and recovering though, which is good thing! When you sell your property, you MUST disclose to the buyers, after they see the property and before they submit an offer, that there are issues under the topsoil. If I was working with either you or the buyer in this kind of situation, I would insist on a clause in the offer that says "The buyer's acknowledge being made aware that unknown materials may have been buried on the land by previous owners and that no representations have been made, by any party or representative of a party in this agreement, as to the safety or environmental compliance of the buried materials." Or something like that. Would that scare you off if you were a buyer? It's going to lower the price that you can sell the house for. When I was pondering how to answer your question, I thought, what would I do if you called me to list your house? The definitive solution is to call in an environmental engineering company and have them do soil tests on the property. They would take drill samples around the perimeter of the lot and test it for contaminants. That's going to cost a bit of money, but being able to show a buyer a clean environmental report will get you more money for your house, and attract offers from buyers that would have been scared off without it. More buyers means more offers and a higher sale price. The nightmare scenario is that they do find contamination in the soil. Your homeowner's insurance policy might cover the cleanup. Pray that it does. As for right now, I'm not sure what your obligations are, as the current owner under USA environmental laws, to report the issue to your government officials.You likely don't have to report it, but the government might be a resource that you can turn to to resolve it if you do the soil tests and find contamination. OK now some good news. There is a huge market for recycled metals. Crooks are breaking into electrical places and stealing the wiring to sell it, and they are stealing manhole covers to sell them to scrap dealers. If there is a lot of buried metal on your land, it might pay to dig it up and sell it! You'll have to do some research to figure out whether your in a mess or in an enviable position. Some of the neighbors might have been there long enough to know if the property was used for anything other than a blacksmith's shop. |
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We have found an older home we like: a bungalo on a quiet street in Ottawa. But we are very nervous because the UFFI clause indicates the presence of UFFI in the house. The listing is accompanied by a test result indicating low emissions...we are not worried about heath problems. We realise that the UFFI scare never was anything but a scare nevertheless, we are nervous about resale values because of the stigma of a UFFI branded home. Your thoughts please.? If the circumstances had been different and you submitted an offer thinking that the house was a non-UFFI home, and then discovered the UFFI through a Home Inspection Report, you'd be justified in negotiating a price reduction. How much of a reduction is over my head, and would likely challenge your local appraisors. Because you knew of the UFFI when you made your offer though, there's not much room for negotiation. When you realized there was UFFI in the home, did you mentally lower the amount that you thought you would offer for it? If you did, you already adjusted for the impact that UFFI will have when it's time for you to sell your house. You discounted when you bought and that offsets the same discounting that the people who buy your house will do when they hear about the UFFI. With luck, by the time you're ready to sell it, most people will know that there's more urea formaldehye coming from their new coffee table than from the UFFI in the house. Then you'll get back the amount that you discounted. Most buyers are aware that UFFI is both an issue and a non-issue at the same time. If you follow the advice on my website, and create the kind of home that the majority of buyers would find attractive, you'll attract multiple offers and the whole issue will be swept under the carpet when they try to outbid each other. Don't be nervous! If you love the house, buy it. The UFFI stigma is minor enough that it should not affect your decision. |
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When buying a home through a private sale,what are the steps after the offer is made and agreed upon? Do I make a written agreement with the seller; stating price, contingencies, and closing date, also subject to financing? Then take this agreement to a lawyer/notary? Do I need to give a deposit cheque to the seller?and why? I know inspections are needed. When do I go to the bank to start the paperwork? I've already been preapproved. I just need to know what needs to be done and the purposes behind them on a private sale. It's a little confusing! Thank you Sonya, Cranbrook BC You should be meeting with your lawyer before you draft the offer. Since you're buying privately and don't have the benefit of any professionals seeing the property, you should have the home inspection done before you draft an offer on a private sale. Your lawyer should review that report and approve the purchase, or put clauses in the offer the cover the problems with the house. You lawyer should draft the offer, and he should be involved in the offer/counter-offer process too if any of the terms of the offer are changed. All of that is going to cost you a few thousand in legal fees. A Realtor does it all, and more, for free. You also have to search the property ownership and get photo ID's from the sellers to determine if the people acting as the sellers really own the house. Why are you buying privately when working with a free Realtor gives you professional backing and access to 95% of the houses on the market? |
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If we have a contract on our home but it is contingent on the buyer selling her home- after 30 days of waiting and no movement on her part- can we take another offer with a fixed date of closing? we have no date in the first offer in writing. Edward, Suffolk VA If there is no date in the sale-of-purchaser's-property clause it's probably not a valid condition. I'd suggest that you have your attorney review the offer to see if it's a legally binding contract. Even if it is binding, you can still entertain offers from other buyers. Any other offer that you accept must have a clause in it saying that it is conditional to the Seller being released from any existing agreements of purchase and sale. If it doesn't, you'll end up selling your house to two different buyers. Now THAT'S a mess! Please consult with your attorney. If you're selling privately, and not using a Realtor, please don't sign anything else without having your attorney review it. |
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I need a co-signer for my mortgage. I am going to ask my aunt but will her co-signing on my mortgage cause her assets to go up? If she was ever to be in a nursing home would they take my house from me? Does she need to be listed in the newspaper or just myself because I would be on the deed only? Please answer me ASAP. Thanks Mark NY Co-signing is a strange arrangement. The person who co-signs for the borrower has no claim at all to the property being financed, yet is totally responsible for making payments on the property if the borrower isn't paying them. The co-signer gets nothing out of it. Your house would not be considered a part of your aunt's assets unless her name is on the deed, which it usually isn't when people co-sign. If I was co-signing for someone, I would want a side agreement stating that if the borrower stopped making the payments, and I had to come up with the cash, the ownership of the property would switch over to me. Even if you did that with your aunt, nobody could say the house was her asset until AFTER you defaulted on the loan and the names on the deed were changed. |
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I am thinking of purchasing another home as a rental property approx $150 000. My son will be living in the home while he is attending university and friends living with him will help pay the rent. I already have another rental property near my home that I have a mortgage of $56000 remaining. Should I try and combine the mortgage of the new purchase with the original or have a new mortgage. I have heard that I require a 25% downpayment for a second mortgage on the new purchase. What is my best option or do you now any different options. Merrill, Newfoundland I'd suggest that you talk to the people who hold your existing mortgage. They can advise you on what your options are under the terms of your particular mortgage, what the costs of each option are, and how CMHC can help. CMHC keeps changing their requirements. The last information I saw was that the 5% down was not restricted to the first house anymore. They also are setting up programs to finance rental properties. Keeping up with the changes in the mortgage market is a full time job for the mortgage brokers, so I stick to keeping up with real estate instead. If you don't like any of the options the bank suggests, have you considered loaning your son the 5% down and putting the house in his name with you as a co-mortgager? You'd still be responsible for the payments but there might be some tax advantages with him being able to write off the income against his non-existent employment income. There would be no capital gains tax when he sells it. Your tax accountant can give you a clearer idea of whether that's an advantage or not in your case. |
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I was shown a townhouse in Montreal, Quebec about 2 months ago by a real estate agent. The price was too high for my budget, so I told her and the owner (who happened to be home at the time of my visit) that I was not interested. I happened to run into the owner a couple of days ago in the street, and he remembered me and told me that his contract expired last week and that he would be willing to significantly lower the price for me. My questions are: is the seller legally allowed to sell me a house that was shown to me by the real estate agent while the contract was active? How soon after the contract expires is the seller allowed to sell the house on his own, even to people who saw the house through the previous real estate agent? The seller does not appear to be aware of certain laws, and I wouldn't want him to lower the price, only to be contacted by the previous agent to pay him the commission (thus further increasing his out-of-pocket amount). Please advise. There is a "holdover" clause in your seller's listing agreement with the Brokerage. It says that, after the listing expires, if the house sells to a buyer who was "introduced" to the house during the listing period, then the seller is obligated to pay the Broker's commission. Your seller should check his listing agreement to see what his holdover period is. It's usually 60 or 90 days, depending on the local real-estate board's rules. After the holdover period expires, then you could buy it without the seller owing the commission. There is a way to get around it if you're not willing to wait that long to buy. It's more expensive, but you're more protected as a buyer. (I strongly advise against buying a house without being represented by a Realtor, i.e. privately.) You could sign a buyer-agency agreement with a Realtor. That Realtor is then obligated to work for you and protect your interests. Take that Realtor (this should not be one from the same Brokerage that listed the house before) to your private seller, and have the seller sign an exclusive listing agreement with the Realtor so that it's not on the MLS system. The seller still pays the commission when you buy, but they can negotiate a lower commission than if was a full MLS listing. The holdover clause from the earlier agreement says the seller doesn't owe commission to the first Brokerage if he lists it again with a second Brokerage. There might be some differences in the forms used in Quebec and Ontario, so I'd suggest you ask a Realtor or a lawyer there to further advise you before you jump into it. If you find that it is different there from here, I'd really appreciate you letting me know. |
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I bought a house with my comman law and 15 months later she moved out to be with someone else. Now 3 years later her name is still on the title and she has put nothing in to the house. I want to sell it now. Do I have to have her signature to sell the house. Ken, Edmonton. Stud! If her name is on the title you definitely cannot sell it without having her sign the listing documents and the agreement of purchase and sale. Even if her name was not on the deed, because you co-habited the house with her, you would still have needed her signature. Even though she has not put anything into the house, just because she lived there with you, she is entitled to part of the value of the house. You should consult with a lawyer to find out how to handle the situation to keep yourself out of trouble. |
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I'm currently having my home listed for sale. It is a newer home and still covered with 2-5-10 new home warranty. There is some honeycombing on the crawl space wall and water leaked through it but builder came back and patched it from both inside and outside and no problem was discovered since, even after extreame heavy rains. There is a question in the property disclosure statment "Are you aware of any water or moisture problem in the basement and crawl space?" Do I answer Yes or No? Do I need to disclose that even though problem has been fixed? Cherry, BC If you assume that, one way or another, the buyers will find out about the prior water leakage then the answer becomes obvious. The Home Inspector they hire will likely recognize the signs of water infiltration. If you then try to tell them that the leak, which you said earlier didn't exist, hasn't recurred, why would they believe you? Your credibility will be destroyed and the whole deal could fall through over the other things they think you might be covering up. If you disclose the issue up front, and tell them that it hasn't leaked since it was repaired, they will not make a big issue out of it. It even gives them the chance to talk to the builder to confirm that it was repaired, or to find out why it occurred. If they actually buy without knowing about the leak, one of the neighbours could tell them about it, or the builder could show up one day to "follow up on that water leak we repaired." They'll feel like they didn't have an opportunity to address the issue when they were negotiating price. They'll be talking to their lawyer about a fraudulence lawsuit. The downside of being honest is minimal. The downside of covering up a latent defect is so large that it's not worth considering it as an option. The mantra in real estate deals is "Disclose, disclose, disclose." |
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My partner & I listed our home back in June 2006, we then pulled it off the market, but the contract goes till Sept. 2006. Now because we are seperating I want to put the house back on the market, my question is.........can I call the real estate agent and have the house put back on the market without my partners consent, we both signed the contract. Will the real estate agent do this. Also do we have any commitments with the real estate agent if the house does not sell in this time. J. Cambridge ON Yes, unfortunately for you, you do need your partner's signature to get it back on the market. If your partner's name is on the deed, you cannot create a legal contract to sell the house without their name also being on any related documents. Even if they are not on the deed, their consent as a spouse is still required to list and sell the house. Depending on how long you were together, under our divorce laws, your partner might be considered a "spouse" and might have a claim to some of the equity in the house. The standard forms for documenting listings and sales are based on the worst case scenario and are designed to accomodate partners and spouses so their legal options are kept open in going after their share of the loot, so to speak. When you took the house off of the market, you and your partner likely signed a document to suspend or cancel the listing. That effectively broke the legal chain in your partner's earlier consent. You'll need your partner's signature to reinstate the listing. As I always say, "That was my non-lawyer's opinion on the part of the story that you've shared with me. To determine what your legal options really are, please consult with your lawyer before chosing any action or inaction based on what I've said." I'm not sure where you were going with the last part of your question, about the committment to the Realtor. If the listing is suspended, you're still in the contract with the Realtor until September. If you cancelled the listing, you're free to list it with another Brokerage. There is a holdover clause in the contract that only affects you if you sell privately to someone who saw the house while it was listed, in which case you still owe the commission. If there's another scenario that you're wondering about, please get back to me with it. I'd be happy to share what I think! |
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My husband & I purchased 6.17 acres last August just outside the City limits of Clanton, Alabama. There are 2 other parcels of land behind us (belonging to Byrom & Fancher) that we provide a 40 foot easement to off the side corner of our property. Our immediate neighbor to the right- McGee- owes approx 15 acres that butting all 3 or our properties. Since we purchased this land, the McGees have been using the easement entrance to drive around to the backside of their property. They have recently worn down a path. I should mention that the McGees have 2 other paved drives to their relatively flat property as well as one dirt drive. They are extremely difficult to deal with so, we along with Fancher & Byrom, would like to build a connecting privacy fence on the outside of the easement to separate the property line. Should they tell us we could not build this fence, would they have any legal standing? Our property along with the 2 pieces behind us were surveyed by the same surveyer and written up to sell at the same time by the previous landowner - he had purchased one huge 20 acre section. It is my understanding that the McGees property was not figured anywhere into the lay out. I should mention that they have a small construction business office (trailer) between my property and their house. It has its own drive as well. Any advice you could give would be greatly appreciated! Jessica AL I had to draw a map of your lots to figure out your question. What a great story! The "easement" is an actual deeded agreement between the owners of your lot and the owners of the other lots who are crossing your property to access their lots. It's on paper somewhere. There's usually some sort of payback for the owner that is letting the other people cross their land. Are they paying you, or letting you have a vegetable garden on their land or something? Anyway, if the annoying McGees are not a party to that easement agreement, they cannot use the easement. They are trespassing on your land if they do. If they are not a party to that easement agreement, they cannot stop you from obstructing their use of the easement by building a fence. I'd suggest you have your attorney review the documents related to the easement to see who actually is involved in it. If it doesn't involve the McGees, it's time to call the Sheriff. |
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I have a problem with the closing date and have requested for an extension of 15 days, which the buyer and his agent are not agreeing to. Hence, I wish to get out of this agreement to sell. What are the consequences of breaking an agreement to sell? Bob, Toronto One way or another, it's going to cost you money. If you try to impede the sale, the buyers can sue for "specific performance" and actually get a judge to order the lawyers to complete the sale. You can't really stop the sale unless you can convince the buyers to sign the release papers. That usually involves some financial compensation to them. Think first though before you act: If you kill this sale, is there another buyer waiting in the wings with another offer? Your original objective was to sell the house. It's sold now, but with a minor complication. Why not keep it friendly and work with the buyers to resolve the complication and get them to give you that extension? Your Realtor should be using his negotiating skills to find out what it would take to get the extension. I'd ask the buyers "What is it about closing 15 days later that is an obstacle for you?" and then resolve the issue. It's likely going to mean paying for furniture storage and putting them into a hotel or a short-term rental for the 15 days. That's the kind of money you're looking at laying out to get this resolved, at the least. Having said all that, I have to also say that your lawyer is the only one who has access to the details of your offer and your circumstances. You should consult with him on this issue before choosing any action or inaction based on what I've said here. There is a solution to your problem. It's just going to require some give and take, and good communications, to resolve it happily. |
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I'm trying to find out if I have a case. We sold our house, but the closing didn't happen and the sale fell apart the night before close. It fell apart because of several reasons: The biggest being that our realtor made an agreement with the buyers (who we found out at the last minute that she was also representing) that we the sellers would pay all closing costs and a portion of their down payment, and give them a carpet allowance. She also prepared the contract for $4000 above the listing price because the buyers needed extra $ to help them with the down pymt. We did not make this agreement with anyone and were surprised and taken aback when the night before close the closing attorney told us that we needed to come to close with a certified check for about $9000.00. We also found out that the ammendment stating that we would pay these costs was signed, with my husbands name, by someone other than my husband or I (in other words it was forged) Our realtor is not returning calls or msgs since that night (and neither is the broker), and I have no idea if the buyers were even informed about closing not taking place or why. Do we have a case for some legal ramifications? Can the buyer sue us for not going thru with the sale? Can the realtor sue us for her commission anyway? Can we get out of the purchase contract (a new one was drafted, and our realtor never had us sign it). Please help me determine if there is anything we can do besides filing a complaint with the Board of Realtors. I really feel that there should be damages awarded.... to us and the buyer - its not their fault either, as I'm sure our realtor was being deceitful to them as well by telling them that we agreed to pay all those fees for them. Patty, Georgia USA In my country, your Realtor's actions would be considered as a participation in mortgage fraud and he would be facing criminal charges. At the least, you or someone should file a complaint against him with whoever licences Realtors in your state. The buyers might have a case against you, but I can't see them suing you. They must have known what the Realtor was up to. If they didn't, how did they think they were coming up with the downpayment, and why did they agree to overpay for the house? They must have been willing accomplices. If they sue, it would bring their illegal activities to a judge's attention. Not gonna happen. You really should get legal advice though. I think you likely do have a case against the Realtor. Your attorney can give you an estimate of costs and the likelihood of winning in court. Your attorney can also involve the authorities if legal charges are warranted. Good luck with this and the sale of your house. |
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Can I make an apt in a backsplit house.no windows in the basement. Tony, Ashawa Technically speaking, a basement has more than half of its height above ground. Anything less than that is considered a cellar. That's a surprise to most Realtors too. To put in an apartment and cover your butt, including not having your insurance invalidated if the tenant burns the house down, you: A/ have to be zoned for multiple-family residential occupany which you likely are not, B/ have to comply with the fire codes for self-contained secondary units which includes having a ground-level means of emergency egress (i.e. not even a "walk-up" exit complies) and, for the uncovered-butt part, C/ have to find some fugitive or terrorist desperate enough to want to live in a windowless illegal apartment that they have to go through your house to get to. Who would rent it even if it was legal? Do you want to give them a key to your front door? I have a better solution. Try this instead. Turn the space it into a really cool "room for rent" with its own bathroom and no cooking facilities. If it's the whole sub-basement, you'll likely get $500-600 a month in rent for it from a student, compared to the $800 you'd get for the much more expensive apartment that you'd create in the same illegal windowless space. It would be just another bedroom in your house and would not have to have all of the fire-code separation stuff. If you do a nice job, you might even get $750-800 a month if they have laundry room privileges, access to your kitchen, and cable thrown in. You'd have to check with your local municipal zoning officials to see what your options really are for a self-contained apartment. I'm not optomistic though. It sounds like a death-trap in a fire situation and I can't see it being legal Go for the room for rent! |
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I fired my realtor 2 months ago and another realtor contacted her to ask me to sell the house at a extremely low price, is she still entitled to a full commission afterwards? Terry, Sask Whether or not you owe commission depends on when the listing expired. To clarify the terms "Realtor" and "Broker," in Ontario and likely in Saskatchewan, the listing contract is actually between you and the Broker, not between you and the individual Realtor. Any Realtor working under that Broker can represent you and everything is still legal under the contract. You could have kept the contract going and asked the Broker to assign a different Realtor to your listing. I suspect that the Realtor with the lowball offer is working for the same Broker. If they were from a different Brokerage they would have contacted you directly and tried to get you to list with them so they could double-end the sale. If it is the same office, you could ask the Broker to assign the Realtor with the offer to your listing, or to assign a third Realtor if you don't want the second one working with both you and the buyer. The newly-assigned Realtor would get paid for listing the house and your fired first Realtor would likely get nothing. In any other situation, your commission obligations will depend on whether or not this new buyer saw the house during the period that it was listed. People usually don't buy a house without seeing it, so I'll assume they did. (If for some reason, they never saw it during the active listing period, then you don't owe the commission.) Your listing contract likely had a clause in it that says if someone sees the house during the listing period, and they buy it during a 60-90 day "holdover" period after the listing expires, then you owe the Broker the commission. The Broker has to find out that you sold the house though, and prove that the buyer saw it during the listing. That's where the glitch is with the lowball offer coming in from a Realtor in the same office. The Broker already knows about it and knows who the buyer is. There is a way to get around the holdover clause. During the holdover period, a Seller can sign a new listing contract with a different Broker and that first Broker's holdover clause is invalidated. The house could sell, even on the first day of the new listing, to someone who saw it earlier and the original Broker would not be owed commission. Your solution is to find a new Broker to list your house today and tell them to get in touch with the Realtor holding the lowball offer. Your fired Realtor would be cut out of the loop PROVIDED that earlier listing contract was finished. If the lowball offer falls through, at least the house is back on the market. It won't sell if it's off the market. You said you "fired" your Realtor but I'm not sure how you did it. The point is, you need to know when to start counting the 60 or 90 days (different Boards require different periods.) If you took the house off the market 2 months ago and let the listing run out later, you're still within the 60 days now. You'd have to get your lawyer to review the contract and review the details of the cancellation to see what your options really are. I'm missing too many of the details to comment. I've tried to help by clarifying the listing process so that you'll feel like an informed client when you approach your lawyer. It was a challenge to explain it all so that it was undertandable. I'm still not sure if I succeeded! Thank you so very much for the info it was what I wanted to know. What I should have told you was that my listing ran out at the end of June and I told the Realestate agent to take a hike for non production, she showed it to less than 10 people in the six month stint and had the first open house 2 months into the listing, and yes both agents came from the same office and I was told that the other agent scammed the client from the original agent. Hi again Terry! Thanks for the update. When I hear stories like that I always feel great about the kind of service I provide to my clients and I'm inspired to do even better. Good luck with getting it sold! |
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In a Buyer Agency Agreement it says that the holdover period is 90 days. We have to consider those days as business days or just 3 months? Alejandro, Toronto It's in calendar days, so it's really 3 months. Someone might nit pic about the shorter months like 28 days in February, but a Judge would slap them in the head. Why are you worried about the length of the term? Is there a problem with the Realtor/Broker you signed an agreement with? |
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Once an offer to purchase is accepted on a private sale is there any way the seller can get out of it? Ms Johnston, Edmonton If a Realtor had drawn up the offer, using standard forms, I'd say the seller could not get out of the deal unless there was some condition written into the offer that the seller had to meet in order to complete the deal. The only one that I've seen used is a condition that the Seller finds a suitable house to buy. Such seller-conditions are rare. Since you're in a private deal, it's a crap shoot. I'm not sure if you're the buyer or the seller. It depends on who came up with the forms that you are using for the offer. If the contract/agreement is one that the seller came up with (maybe from some sell-yourself website) it's possible that there is fine print allowing the seller to cancel the agreement. Buyer beware. If the agreement was brought in by the buyer - forms that came from who-knows-where, or that they had their lawyer draw up - there definitely won't be a way for the seller to back out of the agreement. You should pay your Lawyer to review the contract/Agreement of Purchase and Sale to explain to you what you have agreed to. That's something a Realtor is obliged to do as part of their service for either buyer clients or seller clients. If the private deal falls through, consider using a Realtor and putting more money in your pocket when it sells. |
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I have been reading your website for quite some time and have to say that I am impressed by the info and the insight you provide. What do you think of the Tax Sale properties in general (i.e. properties that are auctioned for unpaid property taxes)? Do you think one can find good value at a bargain price for investment purposes? Do you think that one can still buy real estate property for investment purposes these days or should wait and if yes, how long until it makes sense to buy as an investment? Filipe, Richmond Hill I've been around the block, a few times, trying to make money through investments and as a small-business person. I'm an entrepreneur and I get just as excited as anyone else by the prospect of creating a new business or finding a way to turn a situation around to a financial advantage. With all that going through my mind, and with what I know as a Realtor, the tax sales just don't feel right. As a buyer, you're really not protected in any way. You have no clue what kind of problems you're buying. I'm always thinking of the bottom line. What's going to be left after you pay to buy it and pay to fix the problems with the property? I have too many other questions: Why did the owner walk away? What was it about the property that convinced them that they should walk away from their initial investment rather than invest a bit more money to make it attractive and sell it to get their money back? Is the land contaminated by a leaking underground furnace oil tank? Is the property insurable? With most mortgages, part of the monthly mortgage payment accumulates as a tax payment that the bank takes care of. Why are the taxes in default if they had a mortgage? If they don't have a mortgage, how did they buy the house? If they paid cash, why are they walking away from that massive investment? If they borrowed the money privately, who else is else is involved besides the city in repossessing it? Who lived in the house? Most home invasions are either cases of mistaken-house identify, or cases where the previous owner was a drug dealer or gang member and the bad guys came looking for them after they moved out and the new tenant or owner moves in. The only tax sale that I have personal knowledge of was one where the family could not pay the heat and hydro, so it was cut off in Auguest. Over the winter, the plumbing and drains froze and they could not use the toilet, so they defecated on the basement floor until springtime when the city took the property over for a tax sale. The buyer had a rather unpleasant surprise. The bottom line is, I would never buy a property without having the deal being conditional to a satisfactory home inspection report and a confirmation of insurability. You can't get those when you buy in a tax sale. It's buyer beware and I would never let any friend or client get involved in a Tax Sale. As for buying as an investment, I'd say it depends. There's a residential market and a commercial market. If you buy into a consortium that is funding a commercial venture, you sit back and watch your investment grow, while someone else builds the strip-mall and deals with the commercial clients. If you're a residential owner, you're either dealing with tenants, or waiting for the house to sell. I did an audit recently of the new houses for sale on the MLS system in Richmond Hill. I found that 70% of the newly built houses on the market are vacant and owned by private individuals. They never intended to live in the houses and bought primarily as an investment. The houses are not selling. If you buy any house thinking that the prices will rise faster than inflation, you'll be disappointed. If you buy an income property, as opposed to an investment property, you will be buying at the top of the market and the money you make will have to come from your rental income, not from appreciation of the value of your property. There are TONS of new condominiums coming onto the market in Toronto. Many of them were bought as investment vehicles. They will not sell and will enter the market as competition for you, for tenants. Rents will fall. They have been falling actually over the last year or so. I try to steer people towards commercial investment properties rather than residential ones. The safe money is in industrial properties. When a factory sets up shop in your space, it costs them a HUGE amount of money to unbolt their equipment and retool in another building. Once they're in, they're in for the long term and you have longterm income. Many small investors find funding stip malls and office buildings a good way to enter the commercial market through consortiums. It's kind of like buying mutual funds. There are a bunch of other owners sharing the risk and profit. |
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Bill, got a question about cosigners. Am I looking into to buying a new home with my girlfriend who is half a year from finishing graduate school, but unfortunately the bank requires a co-signer for my mortgage other than my girlfriend. I have one in mind but they have alot of questions about it. One, how difficult is it to take the co-signer off of the mortgage?Two, can that co-signer go and purchase their own condo/house without repercussions? Drew, Toronto The co-signer is basically assuming a back-up position on your mortgage. If you fail to make the payments for a few months, they're responsible for coming up with the missing cash. If you pack your bags and emigrate to South America in the middle of the night, they have no legal claim to your house but they still have to pay off the rest of the mortgage. I wouldn't co-sign for someone I didn't love, and even then I'd be cautious. When your co-signer applies for their own mortgage or any other loan, their lender will consider all of their debts and assets before granting the loan. As long as you are still making your payments, there is no reason for their lender to consider your mortgage as your co-signer's debt obligation because they are not making payments on your mortgage. They can co-sign for you and still buy their own place as long as you're making your payments. Your lender is asking for a co-signer because they have concerns about your financial situation. At some point in the future, when your situation has improved, you will no longer need a co-signer. At that point, you can replace your mortgage with a new one and your co-signer will be released from their obligations under the old one. I'm not sure how easy that transition is. It might mean hiring a lawyer to handle the new mortgage, but since there are no title searches to do, it might not require a lawyer. It's do-able. It's just a money issue, i.e.: paying for the lawyer. Please let me know if you find out what the process entails so I can tell everyone else! |
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We have made an offer to purchase and now for various reasons do not want the house. Can we get out of the deal? We have conditions to be met such as the sale of our house by Sept 21st and a satisfactory home inspection on the new house. Anything we can do before not meeting our conditions? Kim, Winnipeg You're in a better position than most people who ask that question. Your earliest opportunity to get out of the deal is through the home inspection clause. It depends how loosely your clause was written though. If it was written to protect the buyer and says that the offer is vaguely conditional to a "satisfactory home inspection" with no qualifiers about the sellers taking remedial action to fix what you are unsatisfied about, you can probably find something objectionable in the inspection report to use as a basis for not completing the deal. Every home inspector finds something wrong with a house. How could they not? If the clause was written to protect the seller and is more specific about finding only hidden faults, requires the sharing of the inspection documents, and allows the seller to rectify the faults you object to, you're in a bit more trouble. The sale-of-purchaser's-property clause is your out in that case. Just don't accept any offers on your house until Sept 21st. If an offer comes in that is satisfactory, sign it back (counter-offer) with a clause that the deal will not firm up until Sept 21st so that you technically won't have a "sale" before your offer on the other house runs out. Beyond that, there's not really much that you can do in a typical offer to get out of it. There might be something in your particular offer that lets you get out of it. I'm not sure who drafted the offer; a Realtor, or is it a private sale using the seller's pre-printed offer, or a buyer's pre-printed offer? You should have your lawyer review the offer to see what your options are with the particular offer that you submitted. You might have an out that a typical buyer doesn't have. |
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I have a home that is owned by myself and my ex-boyfriend as tenants in common. I wish to sell my interest in the property. However my ex, with whom I have a child, is not cooperating. My ex is the custodial parent. I have not lived at this home for 4 years but he still resides there. I want to either force a sale or a buy out by having him re-finance the property. I am still paying mortgage payments on the home. I want to pull my equity so that I can have the money I need to pay child support. Is there any way that I can force my ex out of the home or have her evicted? Lisa, Philadelphia Because of the marital split-up, the situation is complicated and is more of a family-law issue than a real-estate issue. I'm not sure what the divorce laws say about such a situation in your state and wouldn't hazzard a Canadian's opinion on what you can do. I'd rather suggest that you get in touch with an attorney there who specialized in marital law or, even better if you can find one, an attorney who specializes in both real-estate law and marital law. I don't have one that I can recommend unfortunately. We were never married. How does that change things? Thank you so much for getting back to me so quickly...you are amazing. In most jurisdictions in North America, you don't actually need a marriage certificate to be affected by the local divorce laws. Once you've lived together for the specified number of months, you're considered to be "married" under common law. Common-law spouses are covered by the divorce laws too. In all of Canada and in several states in the USA, gay and lesbian couples are also considered to be "married" under common law if they live together long enough. It gets even more complicated when you get to houses. Did you live together in the house? If you did, that makes it a matrimonial home and you own half of it under many divorce laws. If you didn't, you still have a claim to any appreciation in its value during the time that you were "spouses." You can see why you need expert legal advice in your own state! It's really messy and really makes lawyers a whole lot of money. If they abolished divorces most lawyers would be poor. I'm beginning to rant so I'd better stop. |
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We recently put an offer in on a house that was full asking price but with condition of sale of our house, our offer was bumped by a lower offer but firm..understandable. Now my agent offered to pay bridge financing payments if we went firm then listed our house she would cover the payments using her commission...she obviously has no doubt that our house will sell but could she state we have to accept any offer........we only hope to get a certain amount any lower we can not afford. I dont really know too much about this sort of thing, any advise you could give would be appreciated. Thanks. Kelly, Stoney Creek ON I had to think about that one for a while. This kind of an arrangement is not typical of what Realtors do for their clients, so there is no "standard" way of doing it. I don't know what she has proposed in detail, but I suspect your Realtor will not actually be making the payments for you. Instead, she will actually be lending you the money and you will repay it on top of the commission she would have normally received. To someone on the outside, it would look like you're paying a higher commission but it's really commission plus loan repayments. You're still basically paying the mortgage for two houses, which is not something that you can afford, and that's assuming your house sells! What if your house doesn't sell? The market has started to slow down and it's conceivable that you will have difficulty selling it now. How long is she willing to make your mortgage payments? Only for the duration of the listing most likely. When the listing expires, you'll own two houses and only have enough money to pay for one. If your house doesn't sell, she's not in trouble, YOU are. It's not an arrangement that I'd consider either as a seller/buyer or as a Realtor. I'll share some insider dirt with you. Realtors have always let buyers make offers conditional to the sale of the buyer's existing property. Your Realtor is not a bad person for submitting such an offer for you. Everyone does it, except me. What it really does is tie the buyer to the Realtor and gets them a listing. It's not in the client's best interest, it's in the Realtors best interest. Buying a house conditionally on another house selling is just about the worst way to buy and sell properties. You'll pay full price for the one you're buying (as you've already discovered) and you'll be pressured and will sell your house for less than if you were not stuck in the conditional offer. Money is tight at your house, and you can't afford to buy higher and sell lower. To make matters worse, what if the absolute house of your dreams comes on the market the day AFTER you sign that conditional offer? You can't buy it. You're stuck with other one. I'm not sure what your main objective is in moving, but for some reason you've decided to sell your house and move. You can't do that unless you SELL YOUR HOUSE. That should be your priority. Put the house on the market and get it sold. When you have a firm offer in your pocket, you can go out and hammer out a deal on a house that you like. You can ask your buyers for a long closing so you have 3-6 months to find a house. You can even do the opposite to what you did on your conditional buyer's offer and sell your existing house with a condition that the "sellers finding a suitable property to buy," within a time frame that your buyer agrees to. Your Realtor has not done anything that the average Realtor would not do, and has actually been creative in trying to help with the financing. If you're comfortable dealing with her, continue to work with her but concentrate on working together to make your property as attractive as possible and on getting it sold. Then work with her get a good deal on your new house. You have sent me some very helpful and useful information with regards to this situation, such a big learning experience for us. One thing I would mention though the realtor did not mention anything about repaying this loan, she has done business with us previously as well as with family members so she said she would basically take the loss out of commission to help us get the sale........which obviously gives her a guaranteed 2.5% on the sale of the new home through her and the remainder portion of our commission on our home. You have given me some very valued information and I thank you very much as I will look at this whole issue from a different stand point and hopefully get this house sold first (scary thought though if there is nothing available when you are ready to buy) Thanks for the update. It sounds like I convinced you to sell first. Good stuff! It also sounds like your Realtor is goodhearted and was just trying to help you. My thinking in my email was that your situation is kind of like when people move in together as a couple, or buy a house together as friends with no formal agreement, and then things go badly and they end up in a big fight because there was nothing in writing saying what would happen to the house if the relationship ended. If you do go through with her loan payment scheme, please make sure you have something in writing, that you both agree to, that spells out what will happen if the house does not sell. That way you'll know just how long her generosity is going to hold out. You're right, it's scary to think that you could be "homeless" for a while. There usually are some short term rentals around though, to keep a roof over your head. In the worst case, you could find a hotel offering weekly rates and put all of your stuff in storage while you wait for a suitable house to come on the market. As I said, the market is slowing down, and the selection of houses should increase. You should be able to find something suitable unless you have some special needs issues to work around. Be positive! If you're selling first, then buying with cash in your pocket, you're being smarter than most people in the market. You'll come out on top and in a better place than you're in now. You just have to take that first plunge. Good luck with your sale and your move! Let me know how it all works |
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My ex-husband transferred our home to a corporation we formed while married. We have been divorced for almost 4 years and I have retained the home for the last 6 years and have been making the mortgage payments; however, he never advised the mortgage company and they will not allow me to assume the mortgage without applying for a new mortgage. I now want to apply for a mortgage with a different bank but need to transfer the property from the corporation to myself to do so. I have been the sole director and shareholder of the corporation for 3 years. Does this present a problem? N. Calgary Anything can be done, if you have enough money, so any obstacles in Alberta's divorce, real estate or corporate laws can be overcome. I'm not sure what your local laws are like so I can only suggest that you consult with a lawyer there who can advise you what those obstacles might be. My only thought is, if the corporation "sells" the house to you, it will have to pay capital gains tax on the substantial profit it likely made in the real-estate boom in Calgary over the last 6 years. Your tax accountant can advise how your own or your corporation's tax status would be affected in such a situation. The costs of dealing with a different bank might not be worth what you'd gain in satisfaction by changing banks. I'd be interested to know what he tells you and what you decide, if you don't mind getting back to me after it's over. |
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If I needed a co-signer to purchase my home if I wish to sell do I need their consent and are they allowed any funds from the sell? Mellissa, Charlotte NC The cosigning thing is a one way street. The cosigner is on the hook for your loan if you default on it, but they have no benefit from or claim to your house. You can sell the house that the mortgage they cosigned covers, and you can do it without their consent or without owing them any money. |
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I purchased a home 2 years ago and the owners' did not disclose ponding in the front acerage. Neighbors will testify that the sellers knew of the ponding in the front and that it was due to broken field tiles. The sellers live in Arizona and the realtor doesn't know how to get a hold of them. I've tried white pages. com and the postoffice to no avail. Can I go against the realtor? I don't like the idea of doing that but I'm sure they can locate them if they try. Amber, OH If you can prove that the seller's Realtor was aware of the problem and didn't disclose it to you, then you might be able to convince a judge that the Realtor is liable for part of the costs of repairing the drainage tiles. The Realtor likely didn't know though and the average Realtor would not interview the neighbours to find out if there were things the sellers were covering up. You'd have a hard time making him look bad enough to be liable if he didn't know. The Realtors would not have had much contact with the sellers after the deal was complete. If the sellers knew there was a problem with the property and they lied to their Realtor, they would have had even less reason to let the Realtors know how to get in touch with them. On the other hand, the Attorneys (who handle the escrow and deliver the final documents when the deal is done) would have needed a way to get in touch with the sellers. The sellers likely left a forwarding address with their Attorney. Your own Attorney's records on your sale will include the name of the seller's Attorney. You could get the Attorney's name from your Attorney's staff and call the other Attorney yourself. Your Attorney can advise you on the costs and possible awards if you take legal action against the sellers. It might turn out to cost more than you would get. Or not? |
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We have privately listed a house on the market which we have just fully renovated. The agent that we purchased it from called to say he had clients interested in seeing it once it was completed. When asked what the commission rate would be he said 6%. Now I understand all the tasks involved when selling through an agent. In our situation, we have not listed with anyone, there's no contract, no advertising, no open houses, etc. We have had 2 other agents offer us a listing at 4%, including 1 who quoted 2.5% if he sold our house without us listing with him. From a professional standpoint, shouldn't this first agent we bought from have sat us down right from the start and negotiated a commission rate then? We were up to our eyeteeth in work (it was a fixer-upper) so we really didn't focus on details of this nature at the time. This appears to be a win/lose situation for him and we do not feel in any way that our interests are being considered. We will be losing money on this property whether we sell through him at 6% at a higher listing cost or whether we sell ourselves at a lower cost. What are our obligations towards him? Ana, ON When you have your house on the market privately and a Realtor approaches you with a buyer, you don't have to list the house to get the offer. You can sign a private agreement with them saying that they are only representing the buyer and that you will pay them a commission (max 3.0% in the GTA) for bringing in the offer. As an alternative, you can even sign saying that you won't pay them a cent and that the buyer will pay their commission. The buyer will subtract the commission from the offer price, but that's a given in a private sale already. It sounds like most of the Realtors that you have been talking to want to list the house before they present an offer. It doesn't have to be like that. When you DO list with a Realtor, they can list it for whatever commission you are willing to accept. The commission that other Realtors are willing to accept is irrelevant. Some Realtors, including me, don't negotiate commission. Some are desperate for money and will do anything to get the listing, then they disappear once you sign. The ones that do negotiate are subtracting services every time you knock them down another point. If the Realtor that you bought through is asking for 6%, you can ask if that is negotiable, but they might have a no-negotiation policy. I don't defend bad Realtors. The Realtor that you bought through might have been trying to turn a possible offer into a solid listing, which I don't like, but then again I don't know who said what. Maybe there was a miscommunication and they were willing to only represent the buyer but you didn't get the message. If they really do have a buyer that is ready to buy your house, they should be pestering you to look at the offer. Their enthusiasm should not dissolve if you say they have to negotiate commission with the buyer rather than with you. Give it a try and see what kind of response you get! Good luck with all of this. I love renovating and I enjoy helping reno people buy and sell and make money. Please let me know how it turns out. |
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What is an unconditional sale? If I put an "unconditional" offer to buy a house and my offer is accepted, can I walk away? Actually, I just brought a house with a agent. When we prepare the offer, the agent suggested me to put an unconditional offer. I told him I don't know what is an unconditional offer and why we put such an offer. He just explained this will make our offer stronger. The offer was accepted. And now the problem is, I called him to arrange a time with the buyer side to let my electritian to estimate the electrical panel and electric wire, so that my electritian can apply to the city authority (Ottawa Hydro)for the approval(permit) to change the electrical panel and some wire work(I know this should be done because I had the home inspection before putting the offer). But the agent now just don't call me back to tell me if he arranged the time or not. I have been waiting for his call for about 10 days. I lost my patient. Can you give some adive? Can I walk away from uncontional sale agreement? Shu, Ottawa ON To explain what an UN-Conditional offer is, I first have to explain what a Conditional offer is. If you buy a house with a condition that you can get a mortgage, or insurance, or an acceptable home inspection, that is a Conditional Offer. If you don't satisfy the condition, the offer falls apart and you don't buy the house. In your case, if you had told me that you were concerned about the cost of the electrical upgrade, and that it would affect your decision to buy the house, I would have been obligated to make your offer conditional to you getting a cost estimate on the electrical upgrade that was acceptable to you. You would not be obligated to buy the house until you got that estimate and waived the condition. An unconditional offer has no such conditions. It's a "cash" offer. If they accept your offer, you are going to buy the house whether you want to or not. Your Realtor had an obligation, under his Code of Ethics, to explain that in terms that you understood. Your Realtor is not returning your calls because there was not provision made in the offer for you to get back onto the property before you get the keys. He should! But he's likely not eager to explain to you how you got into the position that you're in. You can ask your lawyer what your legal options are. A lawsuit will cost more than the cost of rewiring the panel and the Hydro drop most likely. I'd encourage you though to file a complaint against your Realtor with RECO, the people who licence Realtors. www.reco.on.ca Your Realtor did not fulfil his obligations under the Code of Ethics that we are governed by. Sadly, the bottom line is that you're going to be buying the house. That's the difference between a conditional and unconditional offer. Your's had no conditions. I hope you can make the best of the situation. Thanks for getting in touch, and for letting me know how it works out in the future! |
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I dont agree. 3 times we sold in high end east oakville, 3 times screwed. Very important life saving/changing industries dont make as much as you do for the little that you do. We are paying too much commission for your precious MLS. No real skill set except the ability to 'smoosh', talk slick and drive expensive cars. Britain has the right idea. You pay 1% for the MLS privilege and do the rest. I hope the Competition Bureau changes things. Someone needs to. If it was 1% from the begining you guys would either not have chosen the field or excepted it and work within the confines just like any other industry that people chose to work in. You'll be surprised to hear that I agree with you on several points. I can't stand those smoozy, slick-talking Realtors with expensive cars either and I don't like being around them. Dealing with them is what I have to do to get my clients the best deal though, so I hold my nose and go in for the kill. Also, the amount of money that a homeowner has to lay out in commissions to sell their house is completely ridiculous. If you were selling a $400,000 Group of Seven painting at the auction house you would pay close to 10% in commissions. The 5-6% commission you'll pay to sell your house doesn't sound so bad by comparison, but on the other hand, someone who has $400,000 paintings laying around their house is far more able to come up with the commission than the average cash-strapped couple trying to raise kids, make the car, mortgage and insurance payments, renovate the basement so the aged parents can move in too, and save for retirement. There has to be a major overhall of our industry in order to get those commissions down. It would mean forcing 80% of the Realtors out of the market, and putting the rest of us who are serious about it on a salary. I'd love to work for a salary with a bonus based on my productivity. For that revolution to occur though, the government has to rewrite the laws that govern Realtors and when the dust settles, any brokerages other than ReMax, Century21, HomeLife and Royal LePage franchises will be gone. That means less competition and fewer choices for consumers unfortunately, but the cheques the sellers write will be smaller. But back to today's reality. I think you've been misled about the commissions paying for your access to the MLS system. If you only want access to the MLS system there are companies in the GTA that will give you that access for under $500. You don't need to pay for the full services of a Realtor to get that access. What you're really paying for with your commission is the knowledge and expertise of your Realtor. I know that sounds like bullshit but stay with me. For the typical "city" property the Realtor's contribution is not obvious, but it's there. When you're a rural owner and watch a Realtor guide you through the legal maze of potable well water, septic inspections, survey variances, shoreline encroachments, shoreline road allowances, Conservation Authority restrictions, driveway easements, utility capitalization charges, buried or aged fuel tanks, insurability, minor zoning variances and various other legal issues, you develop an appreciation for your Realtor's knowledge and what they are doing to save you money. If we weren't doing it, your lawyer would be. If you multiply the hours we put in by the lawyers' $80-200 per hour, we're way cheaper. Your lawyer won't come to your property and check around for things that could get you in hot water. That's where your Realtor comes in. We're your eyes and ears, by contract, and you lawyer's eyes and ears through our fiduciary duties to you. Our knowledge and expertise keeps you from completely screwing up and having to spend tens of thousands of dollars later on in legal fees when the buyer sues you because of something you did or didn't do. Think of it as a Realtor-provided insurance program. You've obviously had a few experiences with bad Realtors. On behalf of all Realtors, I apologize for that. Most of us are worth the cost and leave you far better off than if we didn't exist to provide our services to you. Thanks for your interest in my website and for sending your provocative comments. |
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This is just to let you know that in Ontario there is something called the fence viewers act, which you can employ to force an adjoining property owner to share in the cost of a borderline fence. Thanks! I'm still learning the ins and outs of fences. The act is the Line Fences Act. It's an Ontario provincial Act that only applies in locations where the local municipality has passed a bylaw appointing fence viewers to function as outlined under the act and settle disputes over fences. (Barrie is one of those municipalities, I've discovered, and I apologize to the Barrie residents that I mis-advised earlier. Please view this page on Barrie's website if you're resolving a fence issue in Barrie.) The fence viewers have the authority to resolve the dispute by specifying the location of the fence, the style of the fence, it's materials of construction, and how the costs of constructing and maintaining the fence will be shared by the owners. They can direct the cost of the fence to be added to the neighbour's municipal taxes. The fence viewers interview both parties and use their discretion in apportioning costs. If they feel that the cost of building the fence would be a financial hardship for the neighbour, they have the option of apportioning all of the costs to the owner who applied for the ruling. At least that's what I've concluded so far. |
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Can a person be held responsible for a mortgage even if they have signed a quit claim deed? Gail, West Palm Beach Yes, you are still responsible for the obligations you agreed to when you signed the mortgage. The quit claim deed only removes your claim to the property. The mortgage is an entirely separate agreement. |
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What are the legalities for putting a mobile home on land you have purchased,presently there are 2 barns on the property, which is zoned agricultural,on 4.29 acres?? Caroline, Brantford ON To do it, your first obstacle is your local municipal Zoning Bylaws. Many municipalities prohibit mobile homes on anything other than a mobile home park. If Brantford's zoning bylaws allow it, you'll have to comply with the Ministry of the Environment's requirements for septic systems. Your land is large enough to accommodate a septic field bed, so that shouldn't be a problem, but you have to jump through the hoops and prove that you comply. If the land is near water, you might not be approved for a septic system. If it's low-lying land, you might fall under the jurisdiction of the local Conservation Authority. They stop people from building in places that could get flooded out, and protect the wetlands from development. It's possible to buy land and not be able to erect structures on it if the Conservation Authority won't approve them. Insurance is always an issue. Can you insure the mobile home in that location? I'm not clear on whether you bought the land or are considering buying it. In the best case, you're contemplating buying and your offer should include a clause saying the offer is conditional to you satisfying yourself that you can legally put a mobile home on the land and get insurance for your planned use. There are a lot of mobile homes on rural lots, although they are more common in northern Ontario than in southern Ontario. That's primarily because of local zoning laws I think, so that's your first step; a trip to the town hall to talk to the beaurocrats and see what you can do legally. |
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I had a very low offer on my home. I countered with what I though was reasonable they again went too low. I then made a counter that I wasn't to happy about but they said yes we were in agreement then after about 1/2 hr the agent called back and reduced their offer. We said no we are not desperate and our home is in exellent condition. the next day our realtor said that he and his company would pay the different in what was offer and what we want. I am uncomfortable about this and of course the buyers said that this agent could also handle their house to sell. We are not happy about the selling price and not sure we should continue in the deal please advise is this normal. Helen, Weymouth MA I'm having trouble understanding how they can afford to do it. As they say, if it sounds too good to be true, it usually is. How much of a difference is there in the price? It has to be pretty large for you to turn down the offer and tell the buyers to take a hike, but if the Realtor is willing to pay the difference, it can't be that large or there would be no commission left for them after they pay the difference. It doesn't make sense. Even if they get the full commission for your house, and a listing commission for the buyers house, they are getting very little after it's all over, and that seems overly generous. There has to be something in writing to document this generous offer. I'd strongly recommend that you have your attorney involved in the documentation of how the Realtors are going to contribute money to the deal. You could end up will only the low offer price otherwise. |
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Is there a way that a person can search concluded MLS listings to do their own Comparative Market Analysis? The MLS website only has active listings on it. There is no way for you to do your own CMA on it unfortunately. I have some spare time now and then and I can do one on your property for you. Let me know! |
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Very informative site, my question: I made an offer to purchase land in Alberta for 68,000.00. My realtor called and advised that the sellers had countered with 72,000.00 firm. We agreed to this ammount, signed the papers and celebrated. The next day our realtor called to say that the sellers had recieved multiple offers and we had to come up with our very best offer immediatley. We said that we had thought we had in fact already purchased the property. The realtor said that our offer was notbinding as the sellers had not signed it. (We thought we were acepting the sellers counter offer to our initial offer). We panicked and said we would offer 80,000.00 this was accepted by the seller. This realtor works in the same office as the sellers realtor, when we had calmed down we called and asked why the papers had not been presented the day we signed them, when did these counter offers come in, and could we have verification of the counter offers. We were told that they do not have to provide verification of the other offers, we said we did not want the purchasers name or ammounts or anything, just verification by the other realtors, we were told this was never done. It is a hot real estate market and multiple offers happen all the time. We think it is funny that the agent could get back to us with the sellers "firm " counter offer immediatley but could not bother gettng the deal the sellers wanted to them the day we signed it - in such a hot real estate market, but over the next 12 hours they ended up with multiple offers. We would like to investigate this further, how do we go about this? Is the counter offer by the sellers not binding in any way? D. Edmonton If you changed something on the seller's counteroffer, it would have nullified his offer and turned it into a new offer from you to him, which he would accept or reject. If all you did was sign your signature to execute the deal, then it was a done deal and the seller could not entertain other offers. The seller does not have to sign it. He made the offer, you accepted it. At that point it was a binding contract between you and the seller. You'd have to get your lawyer to review the offer and track the sequence of events to see which of the scenarios above a judge would conclude had occurred. If it's the latter one, you'll be buying the land for $72,000. Please let me know how it all works out? |
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My husband and I have been looking for a home in VA for about 3 yrs now, the house that we were looking for needed to have certain items, acerage, pond/lake low traffic area. Well after years of searching we finally found the house with everything that we have been looking for. We had a home inspection done a couple of days ago, and the inspector found a mild mold problem(mild) this put red flags up for me and my husband. We started the addendam process sellers will fix this or no they will not. They keep crossing out the mild mold issue. What should we do?? Carol- in Virginia A large part of the negotiating process is communication. I'd ask the sellers "What is it about resolving the mold issue yourself that is a problem for you?" They might just feel that you've beaten them to death so far and they're not willing to give up on anything else. On the other hand, they know the house better than you do, and they know its' history. Maybe they know the mold is not so 'mild' and will be an expensive process once they scratch the surface. See what kind of answer you get and decide how honest they are being. You might consider having a mold remediation expert come in and assess the situation. They can reassure you that it really is a mild case that you could clean up yourself for little cost and get the house of your dreams, or caution you that it's only the tip of the iceburg and let you walk away from a moneypit. I'm not clear on where you are in the buying process. If you're still shooting offers back and forth you can write that in as a condition on your next counteroffer. |
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I have recently put in an offer on a 150 acre land-locked property near Sudbury. It can be reached by a trail (old railbed) that is likely to become the Trans Canada Trail. Our realtor said that there was some legislation passed around 1999 regarding landowner's "right ot access" their own land legally. Do you know any thing about this? We are first and foremost hoping to buy the section of trail that leads to our land...We can physically reach it now, but we are hoping to have frontage so that we can eventually build. If we are unable to buy it, do you know if having an easement would provide us the same status as ownership of it as far as future building and application for a zoning change? Also, the person living there before was living there, I suppose "illegally", and there are a couple of run-down shacks. Is there some kind of loop hole that allows us to rebuild these existing buildings even if we are not permitted to build a new one? This is a difficult property, as you can see, but we are really hoping to find a way to make it work, as it is very beautiful and something we can afford! Thanks. Amanda, Bracebridge I'm surprised to hear that a lot that large does not have a designated road allowance somewhere next to it. Maybe things are done differently in what was considered uninhabitable wilderness back in the 1600's when Lord Simcoe sent out the surveyors to chop Ontario up into 100 acre lots and townships. I suspect they didn't get that far north. I'm wondering if there is a road allowance shown on the survey but the issue is the cost to construct the road to your property. In that case it really isn't landlocked, just darned expensive to get to. From this link Weilers.ca you can see that there are a lot of legal what-ifs involved and with the circumstances around your property being so unique, I think only a lawyer can really comment on what your options are. As for building, the local municipal By-Laws will allow or restrict your construction so you should talk to the people at the local municipal office. If it's in an unorganized township then I'm not sure what restrictions there are on use of lands and I'd have to recommend another visit to your lawyer to get that one answered. It's a northern Ontario thing and not something we hear about. Was your offer conditional to you satisfying yourself that you could access, use and build on the land as you intended? Thanks for the challenging question and good luck with your homesteading! |
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Great website! In September '06, I called a listing agent to view a property he had listed on MLS. He would not show me the property unless I signed a Buyer Agency Agreement with him. The OREA contract was for a residential property in Toronto that expired in 48 hours. However, under the holdover section of the contract, the term listed was for 90 days. The commission stated as per MLS listed. So this is my question: Can I sign another buyer agency agreement with another real estate agent/ broker? Can I purchase a property using another agent (not the one I viewed)? If I do so, do I owe the first agent commission? Does signing a new buyer agency agreement void the first one? The first agent's high-pressure tactics totally turned me off, and I've found a great agent I'd want to sign a new contract with. Anna, Ontario If your agreement was vague about the house you were looking for then you'd be locked into buying through that first Realtor, however it sounds like it stipulated that the agreement only covered the specific house that you wanted to see, and that it expired in 48 hours. If that's the case, the holdover clause only covers that specific house. If you went back and bought it with another Realtor during the 90 days, you'd owe the first Realtor a commission. You can sign another buyer-agency agreement with another Realtor during the 90 days though as long as you exclude that specific house in writing in the agreement. I'm glad to hear that you've found a good Realtor and have not been turned off using one because of the pushy one's tactics. Please show the buyer agency-agreement to your new Realtor so he knows that it exists. He can review it to see what he has to do to legally sign a new one with you. Good luck with your purchase! |
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How do I add my son's name to my home deed and by doing so will it affect his opportunities for being a first time buyer when he decides to buy a home? Vanessa, Baltimore. Your attorney can easily do the paperwork to get your son's name registered on your deed. With mortgage fraud and identity fraud being so prevalent today, it's not something you should do yourself. If you don't already have it, you should have you attorney put title insurance on your home at the same time. I'm pretty sure your son would not qualify for first-time buyers' programs if his name is on your deed. Thanks for your questions! |
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We have been to view a house which the seller's realtor advised us that there are 2 sump tanks on the property - one at the front of the house & one in the basement. Having previously lived in England and are not familiar with sump tanks, could you please confirm what they are for and whether this could indicate that there is a problem. Why would there be 2 tanks on one property? The basement appears to be a bit damp but has not been used by the current owner who has lived there for 12 years. The small back yard seems to be all moss rather than grass even though it is west facing - could this also indicate a problem. Chris, North Vancouver The moss in the back yard brings to mind Scottish bogs and could be a sign of damp soil, but homeowners do use moss as an alternative to growing lawns. You'd have to ask them if the moss grew by itself, or if they cultivated it. Sump pumps are used to remove ground-water that would otherwise flood the basement. One sump pump is usually sufficient. I just helped my parents replace the one in their basement. The new one kicks out 45 gallons a minute. That's a lot of water! If your prospective property has two pumps, and a basement that is unused, that's a red flag that the property could be subject to flooding, or at least is too damp to put the basement to use. If there is visible dampness now, and you've had a dry summer, it could point to a very wet basement in the spring or rainy winter season. If you don't intend to use the basement, it still could be a suitable property for you even with the dampness. The possibility of flooding could be an issue though. I'd suggest this: Call your insurance agent and have them do a search on the property to see if there have been previous claims for water damage from flooding. They have access to a huge database that contains that information. At the very least you should make your offer conditional to being approved for insurance coverage on the property. In addition, you or your Realtor could do some door knocking in the neighbourhood and ask the neighbours what they know about any flooding or wet basements in the area, before you submit an offer. Your Realtor can advise you on how common damp basements are in North Vancouver. It's a coastal rainforest and it might be hard to find a property that is high and dry all year long. It could be something that everyone accepts and lives with, or it might be something that smart buyers watch out for when selecting houses in the city. |
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I was wondering if you could either point me in the right direction or answer my question. I am wondering where I could find the rules and regs. regarding basement suits? what constatues a basement suit? is is leagle? if it is illegal will i get in truble for having one? that sort of stuff. any help you could give me in this area would be greatly appriciated. Marlo, Nanaimo Inlaw suites do add value to a property IF they are legal because they provide an almost guaranteed income stream. They turn a house into a quasi commercial property. There are landlords all over Canada living off the incomes from their rental properties and they started off just like you. The BC market is a bit overpriced so this might not work there, but I suggest that investors first consider taking the money they would have spent on the basement renovation and use it as the downpayment on another property that they can rent out. The rental on a house can often cover the mortgage payment, depending on the local market. Condominium apartments are a great way to start. But back to the basement suite. The legal stuff starts locally. You have to find out if Nanaimo's zoning bylaws allow you to have a basement apartment. Talk to the people at your city hall. If your house doesn't comply, there are insurance and mortgage issues involved in having one, plus they could fine you and stop you from renting it if they find out about it. If your local bylaws allow a "second suite" it must comply with British Columbia's Building Code and Fire Code. They have specific requirements for second suites and should not be taken lightly. The requirements in the Fire Code were not dreamt up by anal beaurocrats crowded into an office somewhere. They are all the result of deaths in fires and the recommendations from the inquests into those deaths. Don't cut corners. Having complied with the zoning bylaws and the building and fire codes, you have to find out if your mortgage permits you to have a second suite. You also have to check with your insurance company to find out if your policy allows you to have a second suite, or what it would cost to insure it with a second suite. The final issue is a monitary one. Your municipal taxes will likely go up (yes you have to get a building permit and they will know about your renovation) and you should run your plans past your tax accountant. How will the extra income affect your current income-tax situation? It's possible that, with the other factors affecting your taxes, the income from your rental could push your taxes beyond what the rental income is bringing in. You're on the right track! The best way to make money over the longterm in real estate it through rentals, not through buying and flipping. It's all about the monthly income stream. Do the research and go for it! |
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If a house was purchased and an inspection performed then while doing some minor renovations in the first week of ownership, mold was found behind baseboards. what recourse does the new purchaser have. Also items were left behind to indicate some plants may have been grown in the house, like large halogen light bulbs etc. Is the previous owner liable for repairs or can the deal be reversed. Sandy, Ottawa Thank you for visiting my website and for sending your questions about the mold hidden in your house. Please allow me to answer them by thinking out loud. The home inspector would not have been able to detect hidden mold without ripping out the walls, as you have done. He does have a moisture meter to test the walls for dampness, but they usually reserve that test for finished basements areas. The meter would likely not have registered dampness in the walls with your moldy baseboards unless the dampness rose up the walls. That would be visible. To answer your last question first, no matter what happens, the deal cannot be reversed. It's too late. The best you can do is to go to court, convince a judge that you would have paid less for the house had you known of the fault, and convince him that the sellers knew about the hidden mold and should be made to pay you the difference. So the issue is, how big is the fault? How much mold is there? How much does it affect the value of your house? If there are holes in the floors to allow air to circulate between the floors, that's a sign of a pot growhouse. That's the worst-case scenario. There are usually significant mold issues in them, and you'd smell something when you came in the door. It should have sold for much less that a typical non-growhouse-house of that size. The lights made me think it was a growhouse, but they might have just been plant freaks, or maybe they were ex-hippies and they had a few pot plants. They would have wanted high humidity levels in the house to please whatever plants they cultivated, and would likely not have been aware that they were creating mold issues behind the walls. If the humidity was consistently high, there should be black mold stains on the wooden windowframes of the house, in a cold climate like yours. I bought and renovated a house with a musty bathroom. There was mold behind the rather attractive pine beadboarding and behind the baseboard, due to a leaking water line. It was gross, but I lived to tell about it. If there are no signs of high humidity on the windows, the source might be a water leak in the walls where you found the mold. There was a self-proclaimed expert on TV ( I should have made notes) who said that any new house with pink fiberglass insulation has mold in the walls if you open them up. It makes sense I guess. If you drive past a new subdivision on a rainy day, they don't have the unfinished houses covered by plastic to keep the rain out. If your mold is localized, it's likely not something to worry about or to seek compensation for. If it's all over the house, and was likely known to the sellers but covered up by them, you might have a claim in court. There are mold remediation experts in most areas. You could call one in if you still have concerns. They can help you assess the scope of your mold issue, and provide expert evidence in court if it comes to that. |
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Hi I would like to ask a question they are building a house beside me and there seems to be a problem with the lot line my servey is a little different then his and the man who did my survey has passed away this same piece of property has been sold a couple of thimes since we have lived here and there was never any problem.They are telling me that at one point the line is like a pie shape and we are out by a half foot to almost the back of the property were it is two feet we really haven't done anything about this but we have been here for 36 years and there has been a fence up for that length of time if it turns out he's right will I have to move my fence. Joyce, Holland Landing. The issue seems to be a difference of opinion between surveyors. If one surveyor says the lot line is here, and another surveyor says it's over there, which one is right? It seems logical to bring in a third surveyor to see where he says it is, and go with 2 out of 3. You have the third survey though already, I think. If the house next door has sold a few times there must have been an old survey that changed hands each time. An old survey is adequate as long as no new buildings have been erected on the lot. It sounds like the latest owner had a new survey done in preparation for building and it's the new surveyor who thinks the lot line is in a different place. If you could get a copy of the old survey showing the lot line in the same place as your survey, you'd have a two on one situation that might convince a judge that your survey is the accurate one. If it turns out that your fence really is on the neighbours lot, they can make you move it at your expense. Your lawyer can advise you on your options and help you get a copy of the survey. There might be other details that affect the situation so you do need to get legal advice. |
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I've put my house up for sale, it's only been on the market for 30 days and I've decided not to sell it. I listed my house through a real estate agent. I'm wondering if there's any way to break the contract and will I get charged for breaking the contract of 90 days with my real estate agent. Michelle, Oshawa The Brokerage will likely not cancel the contract but as long as you're not planning to sell your house, that's not really a problem. What you can do is instruct your Brokerage to withdraw your house from the MLS system, and not allow any further showings. Your house won't sell, which is what you want, but you'll still be in the contract until it expires. In a standard listing contract, there is no charge for taking your house off of the market. Some discount or flat-rate Brokerages do have extra charges for all kinds of things though. That's how they advertise the low rates but still stay in business. If you're not using a full-service Brokerage, you'd have to read your listing contract to see if you agreed to a cancellation or withdrawal charge. |
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I purchase a house 12 months ago and have just discovered that details on the listing and feature sheet were wrong, dates of work done is way off, ie, told 2 parking pads, turns out only one legally and now have to pay to have soft landscaping put in. Told windows were 3 yrs old, turns out they are 20, roof 5 yrs, turns out to be 12, furnace 1 year, turns out to be 7. These were all written up on the listing. Did the seller's and his realtor lie, misrepresent, give false information. What are the realtor's obligations to check these facts before putting them in writing. is the realtor breaking the law, code of ethics, etc. This is gross misreprensation on his part. i am shocked. Should he not have asked the owners to show proof of the dates these things were done. can realtors just write anything they want to entice a sale and have no obligation to the buyer. Can u please give me some direction on this and what I should do. I relied on those facts being true when buying the house and would have gone a different route had I know it would cost me money to landscape, the city is really on my back about this and I have to comply even though I did not convert the pad and believed as informed in writing that the parking was legal and for two cars, I may have to put in new windows, and have less life on my roof and furnace. Is this a breach of contract. do i have any recourse. Please help. 1st time buyer. Anne. Toronto What a cat's breakfast! The real estate industry is slowly evolving into a more professional state and at the moment there is a kind of double standard for Realtors. The gold standard is in the RECO code of ethics which says it's the Realtor's obligation to "discover pertinent facts" about a property. I'm among the people who believe that it is the seller's Realtor's responsibility to check the facts and find out things like whether the house is approved for one or two parking spots, or none. I also believe it's the buyer's Realtor's responsibility to check the facts all over again just in case the seller's Realtor didn't. (I'm not sure if you had your own Realtor or if you bought through the one that listed the house.) When you get into court, the judge will try to determine what the average Realtor would do in a similar situation. That's the UNgold standard. The average Realtor today doesn't see themselves as an investigator or detective working on their client's behalf. You would have to prove that the average Realtor in Toronto, working for either the seller or buyer, confirms the parking approval on every property. But back to the RECO people I mentioned. They're the Real Estate Council of Ontario. They licence Realtors in Ontario and establish the standards we strive to meet. They can also issue fines against Realtors and take away our licence if it's warranted. I will suggest that you contact them and file a complaint against the Realtor or Realtors that you dealt with. I'm not suggesting your Realtor(s) did anything wrong, I'm saying RECO can review the facts and make a ruling. You can find them at www.RECO.on.ca Unfortunately they can't make awards for restitution. They can't make the Realtor pay for your landscaping. For that, you need to take the Realtor and the seller to court. In situations like yours, the lawyers sue everybody involved. In most cases of misrepresentation, the Realtor is usually deceived by the seller just as much as the buyer is. When we write up the listing details we have to assume the sellers are being honest about the information they are providing. I learn from every Email I get and, from yours, today I learned not to date a renovation or improvement in a listing unless there is documentation to back it up. Thank you for increasing my knowledge. The documentation for the age of improvements is often right in front of our eyes. There are dates inside the thermal windows if you look for the label. There is a date of manufacture and installation on the furnace. We often use them to figure out when a house was built if it's older. Physical condition is also evident. A 3 year old window does not look like a 20 year old window. That should have been evident to the Realtor who did the listing, but a Judge would think it would also have been obvious to a typical buyer touring the house. If the windows need to be replaced, that's considered a patent defect, visible to anyone looking at them, and a Judge would likely find you partially responsible for your plight. You might not recover enough in court to pay for the renovations. I'm not a lawyer and I've gone out on a limb to say what I have so far. You should take all of your evidence to a lawyer and get a professional opinion on your chances of recovering damages for the structural stuff. For the parking/landscaping issue, I suspect you could make a call to city hall to research the parking status of the property, and take that information to small-claims court to get the Realtor(s) to pay for the landscaping. Parking approval is unique to Toronto, just like streetcars on rails. A typical Realtor there would likely check parking status as a normal part of doing a listing, but I don't know that for sure! I haven't given you a direct answer but I've hopefully given you enough information that you can decide what to do next. |
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I purchased my home about 6 months ago. We have what is considered a "mutual driveway". The neighbours that we are currently sharing the driveway with are renters (it is a semi). They tend to block my vehicle in sometimes and we have not been able to contact. Visually the driveway appears to be completely on my property and the measurements of the lot would have it on my property. On my deed it says "mutual". How can I go about determining whether the driveway is really mutual? Ideally, we'd like the driveway to be ours and put a fence up. Valerie, Welland ON Mutual (shared) driveways are often a source of aggravation, to the point where someone would sell to escape it. Yours is just about the worst scenario I can imagine, where the other party is a tenant, and not the home owner. I think there should be a question on the Seller Property Information Statement about ongoing disputes with neighbours, but that would be a perfect world I guess. Mutual driveways are also complicated. Does your deed and their deed document an easement creating the shared use of each other's land? Or was there an error by the builder, and the shared driveway was created under the old land registry system by the other owner's use of your land? How does the driveway appear on the survey for each lot? It's so complicated that you can't even figure out where you are, never mind what your options are, without having some legal help. The lawyer who handled your purchase would have been responsible for explaining the implications of your mutual driveway. They might have done so but, in the excitement of buying your new home, you weren't tuned in to what they were saying. I think your next step would be to run your concerns, about your neighbour's tenant, past that lawyer to see what your options are. They might not charge for the advice. If you think you have problems now, wait until it starts to snow! I hope you can resolve this issue quickly, for your own sanity and cardiac health. In the worst case, there is still some steam left in the market and you might be able to sell the house now for what you paid for it. |
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I have a dispute with my neighbour in regards to whether or not an easment exists over the driveway between our house. In the meanwhile, I have ground water seeping into my basement that I need to fix and neighbour is refusing to allow repair vehicles on the driveway. This is not a problem with city pipes or drainage. Can my neighbour prevent me from repairing my house? I am afraid that if I wait until our other dispute is resolved that the cost to fix the problem and repair damages will be high. Shannon, Mississauga Unless you have a deed or survey showing that you have an easement over your neighbour's property, I doubt that you can go onto their driveway. I'm not clear on the situation though. Is it a shared driveway, or is it their driveway and the only way you can do the work on your house is to park the equipment on their driveway? You have more options if it's a shared driveway. You should discuss your situation with a lawyer. Maybe you can get a court order from small claims court to allow access to do the repairs, provided you restore the neighbours property to the state it's in now, or better, after using their driveway. I suspect that's what their objection is all about, no matter what the situation is. You should be able to negotiate something with them, which means you keep asking them "What is it about..." questions (starting with "What is it about us using your driveway temporarily that you have concerns about?") until you find out what their objection is really about, and then resolve it so that they will agree to your request. Good luck with your repairs! |
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Can you borrow money to build a house, when you own the land out right? Joyce, Barrie You should be able to finance the project through a bank, provided the land has not been used as security on other debts that you have. They will advance funds in small amounts until the house is completed, rather than giving you a lump sum at the beginning of the project. Banks do not generally finance the purchase of land, but it is possible to finance the purchase of land through private mortgages arranged through a Mortgage Broker. Are you building for your own use, or to sell as soon as it's completed? |
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I currently own a house with a mutually shared driveway---my neighbours are putting their house up for sale---my questions is----can I buy the "driveway" from them before they sell? Debbie, Welland I'll assume that you've come up with a scheme to convince the neighbour to sell their half of the driveway to you and I'll just concentrate on the logistics of doing it. The survey corner posts that you share with that neighbour would have to move away from your house so that the lot line moves over to their side of the driveway instead of being in the middle of it. The only legal way to move the posts is for them to "sever off" that strip of land under their half of the driveway and sell it to you. They would have to be granted a "severance" by Welland's Committee of Adjustments to make that happen. That Committee makes its decisions based on Welland's Zoning Bylaws. In the older parts of Toronto, there are houses that don't have driveways. In most other places, the zoning bylaws spell out how many parking spaces must be allocated per lot, with a minimum of one. Your first stop is at Welland's City Hall. Severances are usually restricted to larger lots, like as in 100 acres larger, so there are likely limits on the size of the lot that is being severed. If you get past that hurdle, do your local zoning bylaws permit single family dwellings to NOT have driveways? If it's allowed, it's possible that you could buy your driveway. If it isn't, you'll be sharing that driveway with the new neighbours, unfortunately. Look at the bright side. Maybe the new owners next door will think the same way you do, and you'll never have issues over the driveway again.Think positively! |
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I need a clarification on property rights.... I jointly own a cottage property (8 acres) with my brother. We are stalemated on the property, neither wants to sell or agree on any changes. There is no joint ownership agreement. I wish to place a small sauna on the property, it is a package that requires no foundation or building permit (<10 sq. meters) and can be easily removed. Do I have to have my brother's permission to place this personal property on the cottage land? I do not intend to place it where it would interfere with any travel on, or use of, the property? David, Thunder Bay I had an authentic log-cabin Sauna in the backyard of my house on the lake north of you in Manitouwadge. It's the thing I miss the most. I was lucky enough to be raised where my Finn maternal Grandmother lived. Her Saturday night routine included a stop at the Kangas Sauna in Hornepayne, until Gramma Kangas burned it down. I'm still researching to see if the Kangas Sauna in TBay was started by the same family after the fire. My point is, I share your enthusiasm for the experience! Unfortunately, you're more likely to get your sauna erected by persuing family therapy than through any property rights remedy. The courts and laws focus on protecting an owner's property rights against other non-owners, i.e.; neighbours, squatters, the government. What multiple owners do on, or with, the property isn't really covered anywhere unless they break the don't-grow-pot laws, or similar ones. I'll be Dr Phil for a minute. You guys need to get drunk and have a serious talk about what kind of relationship you want to have when your old and dying. Do you want to still be enemies, causing all kinds of rifts between the other siblings and the tons of cousins? Or do you want to be the ones who got smart long ago and resolved whatever shit happened between you, and then went on to create a happy extended family that gets together, generation after generation, for big loving family parties for all of the holidays? It's Christmas. Be the one to make the peace effort. Everyone is sappy at this time of year, including your brother. Then you'll get your sauna! |
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My sister in law is always saying you can't flip houses in Canada. Is this true or is it something she heard incorreclty and is passing on as fact. Does it have something to do with capitol gains. If you really don't want to have to write me a novel, I understand, could you point me in the right direction. Waiting to flip in Brantford Ontario, Lisa Who knew the government was just as frustrating on the Internet as they are on the phone?! I've been trying to find something official in writing to confirm the length of time you have to own a house for it to qualify as your "principal residence" and be free of capital gains tax, but I've been completely frustrated. From courses, I think it's 6 months, but 12 months sounds right too. Call a tax accountant to confirm it before you choose any action or inaction based on my comments if avoiding capital gains tax will affect your decision. To defend my confusion, the capital gains thing does not come up often in a market like Barrie or, I suspect, Brantford. Most people, even renovators, own the property long enough that it's not an issue. Your sister in law is probably right, not because there's a law preventing flipping, but just because of the reality of the marketplace. In order to have money left over as a "profit" after you pay the land transfer taxes, legal fees on the buy and sell, real estate commission on the sale, and the costs of moving in and out, the market has to be rising faster than the space shuttle. Those costs, as a percentage of the sale price, have to be less than the percentage that sale prices are increasing during the time you own the property. To cover those costs in downtown Toronto, with a house worth $400,000, the market doesn't have to be rising as fast as it does to cover the same costs for a house in downtown Brantford. Flipping a condo or luxury property in downtown Toronto might be possible, but flipping a starterhome in Barrie or Brantford might leave you with an empty lootbag. The boom is over, unfortunately. Prices in some areas, like Barrie, are actually going down. Prices in your own town might be going down too. They tend to drop first out in the country, and drop last in downtown Toronto. It's a population/supply and demand thing. Flipping is possible. Flipping at the right time and in the right place is the challenge. |
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What is a dry closing? Laquita, Lafayette, LA On the closing date, usually the money and keys change hands and the buyer takes possession of the house. With a "dry closing" the lender does not have the buyer's money ready, and the keys and ownership don't change hands. The sellers don't get their cash when they expect it and have to change their plans, and the buyers don't get the house they were planning to move into, and have to make other plans. Maybe they should call it a "cry" closing. |
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Can a person with good or excellent credit cosign for more then one apartment rental agreement involving different tenants? Tamara, Oxnard California I'm not aware of any way that someone could find out how many people you have co-signed for, so the only thing that limits the number is which number would be in your own best interest. Let me explain: When you co-sign, you're signing a binding agreement that says you will come up with whatever money is owed to the other party if your friend is a loser and doesn't pay what he owes. If you co-sign for 6 friends, and if they all don't pay their rent for three months, do you have enough money in the bank to pay all of the rent that all of them owe? That's basically what you're setting yourself up to do if you co-sign on a rental application. It's even worse if you co-sign on a loan or mortgage. In that case, you're agreeing to repay the total amount of the loan in a worst case scenario. |
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My wife and I went to view a property and by the time we wanted to put in an offer (that afternoon) our agent checked and told us that one was already sent that morning.Eventualy it was accepted (two days later) conditional on financing. Question is, can't we offer our offer?It seems unfair that we cannot even put in our own offer? Is there some sort of rule that once an offer was submitted they all have to be submitted at the same time? Paul, Mississauga I'll give your Realtor the benefit of the doubt and say that there must have been some direction from the sellers that they only wanted to deal with the one offer. Normally though, you could have directed your Realtor to prepare and present an offer. Every time there was a counter-offer from the other buyers, the sellers had the opportunity to consider other offers and yours could have slipped onto the table. That would have been to the seller's advantage and I'm not sure why they wouldn't want to entertain other offers. I don't know what all of the circumstances were. In a situation where the sellers are committed to an offer, like the situation your sellers are in now, they can still entertain other offers. Most Realtors think, 'why bother if the house is sold?', so they say you can't do it. You can. Your offer just has to include a clause making it conditional to the sellers being released from any existing binding agreements of purchase and sale. If the other deal falls through, your agreement makes you the buyer. There are a lot of reasons why that is not the best option for you. What if you find an even more perfect house while you're waiting for the first deal to fall through? You're locked in. You'll definitely pay more for the house by creating a multiple offer situation. You'll pay less if you wait for that first deal to fall through, and then come in a few days later with an offer, to give the seller time to lose his confidence. It might have been easier for your Realtor to just say you couldn't put an offer in, rather than trying to explain why it was possible but not in your best interests. Some have a "Just trust me, I know best," attitude. |
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My lot extends from one street to another. For as long as I have leved here (30 years), my tenants and myself have been able to access our parking spaces along the pathway in between my house and my neighbour's house. Unfortunately, my new neighbour has decided that we could no longer access our parking spaces this way. Can I claim an easement of access, and if so, how does one go about processing one? Françoise, Ottawa. Unless your house is in violation of the local zoning bylaws, there should be enough space between your house and the lot line to allow you to have a metre-wide pathway on your own property. The setback rules ensure that you have space to move around your house, and to keep fires from spreading from one house to the next. If your house does not comply with the setback rules, and if there is no other way to access your back yard, and if you get a zoning amendment, you might be able to have an easement declared so u can cross the neighbours yard. You would have to take your survey to a lawyer and have him review the circumstances. It's difficult to know what your options are without seeing the property and what's going on there. If there is a way for you to get to your back yard without using the path you're using now, you likely can't get an easement over someone elses land. |
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My husband and I purchased a 50 acre property with a 5 year old Cape Cod style on it. We had a professional home inspection done and everything was fine. We removed all conditions on the purchase as each one was found satisfactory. We have since been informed that this property was possibly used as a dump site and there is the possibility of contaminated soil. We did not request soil tests as the seller stated on the SPIS that there was no contaminated soil to the best of his knowledge. We have not yet taken possession. What do we do? This is our dream home that is turning into a nightmare! Ann, Peterborough I love Cape Cods! I love acreage! It sounds like my dream property too! Except for the contaminated soil. If you buy contaminated land that has the house of your dreams built on it, and cleaning up the soil under the house means demolishing the house, do you buy the property? This is a deal worth struggling to get away from. I have a gazillion questions though: Is it really contaminated land? Who told you that it was a dump site? Did they have proof?; is the land a part of the municipality of Peterborough, in which case the city would have records of the approved use of the land (can you sue the people who dumped in an unapproved area?); or if it's in an unorganized township outside of Peterborough, with Crown Land around it, does the Ministry of Environment have records of testing on the property?; what was dumped? Cardboard, old wood, CPB transormers? I'm not sure where you are in the buying process. Have you waived your financing clause? If you tell your lender that it's a dump site, they will deny you the mortgage, and then you'll be out of the deal. This is a deal to walk away from. I'm not sure if you're able to. Please get back to me if you can. |
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When property is sold in the middle of the year, who is responsible for paying the land taxes? the previous or the new owner? Jacob, Williamsport, Tn In reality, they both do. The seller pays for the months when he owned the house, and the buyer pays for the rest of the year. If the seller has already prepaid the taxes for the entire year, the attorneys do an adjustment on closing, and the buyer pays to the seller the amount that was paid on his behalf by the seller. If the seller hasn't paid at all, an adjustment is made so that the seller gives the buyer the amount that he should have paid for his occupancy period. and then it's up to the buyer to pay the taxes for the whole year after closing. |
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What happens if a person cannot come up with the downpayment on the specified date? Our offer has been accepted on a house but we are having more trouble than anticipated arranging the money for the downpayment. We have until the 15th of April to come up with it. Our mortgage has been approved providing we have this money and the bank has told us by May 2 we will have 7 percent of the mortgage back. Jennifer, Ont The longer you leave it, the more trouble you'll be in. Getting to the closing and not having the money to pay for the house is a legal can of worms and a homebuyer's worst nightmare. You don't actually have a mortgage yet, just an approval for one if you meet certain conditions. If you know you can't meet them, then you'll be negligent not to do something about it now. I'd suggest that you go back to the lender and explain the situation. It's possible to buy a house, with CMHC backing and a line of credit, with no money down. There should be a way to put together financing to allow you to complete the deal. |
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My friend and his brother co-own a house together.one of them lives in the house while the other is with his wive in another house.the problem/question is the one who lives with his wive wants to sell the house while the other does not.the one with a wive is threating to get a lawyer to force the other to sell.is this possible?what are the laws governing this situation?can you help with some advice on the current problem between the fueding brothers? Jim, Calgary Nobody seems to listen to me, even though I keep saying: If you're buying a house with someone other than a person you're married to (and don't do that without a prenuptual agreement) then you should treat it as a business partnership. Get it all in a contract that spells out what you will do if all goes well, and what you will do in the many scenarios if things go wrong. If your friend has an written agreement with his investment partner brother on that house, then the agreement should have laid out the steps that the partners would take if one partner wanted their money out of the house. I suspect that did not happen in their case. The good news is that property values in Calgary have been rising fast enough that your friends's share of the house might be worth enough that he can leverage it to borrow the money to buy his brother out. Once they move out, he can sell the house, pay off the loans, and find someone better to buy a house with, with a contract next time! If they can't negotiate some buy-out situation, or a rent to own, then there isn't really any authority that they can go to. This is one they have to negotiate and resolve face to face. |
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Thinking of buying a house the basement is fineshed and it is a two family. i will be getting rents from one floor can i rent the basement for extra income ? what is the risk? and the law rigarding that?and please direct me to find the answer if you do not know it Thanks a lot. Carol. Medford Mass The first thing that might prevent you from renting out both parts of your house is the mortgage. It might say that you must live in part of the house in order to get the mortgage. If you don't intend to live in the house, and are buying it as an income property, make sure your offer is conditional to you and the house being approved for a mortgage. You'll likely need a larger downpayment if it's an income property. When you negotiate with the lender, you can work out the downpayment and rates etc for both scenarios to see if it even makes financial sense for you to live in it or not live in it. The second obstacle is the zoning of the property. If it's zoned as a single family dwelling you can rent out the house to one family. If it's zoned as a multiple family dwelling, you can rent the basement and above-grade sections separately. Basement apartments are more of a challenge than just renting out the whole house. In some cities they are completely illegal. If they are legal in Medford, there will be regulations on their construction and design either in the fire code or the building code that covers your area. The restrictions are designed to keep fires from spreading from the basement apartment to the main house, and to ensure that the people in the basement have more than one way to evacuate in case of a fire. I'd suggest that you start by visiting City Hall in Medford. Tell the receptionist that you want to put an apartment in your basement, but you don't know anything about them or who to talk to. They will direct you the proper departments. You'll have to talk to several people to get all of the information you need, but that's your first step. This house might not let you do what you want, but there are others out there that will. It might be worth looking for a property that already has good tenants in a legal basement apartment, or a duplex with sidebyside rental units. There are a lot of landlords out there living off the rents that are coming in from the properties that they own. If they can, why not you? |
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On October 31st, 2006, my husband and I bought an older home and we bought it from people who had been living there for over 17 years. Prior to closing on the home, we had a home inspection and the real estate agent "representing US" was there. During the inspection, the home inspector noticed some signs of water damage on the walls in the basement. At the time, he noted that there was no water leaking but suggested that we ask the homeowners about this. We spoke with the real estate agent who said he would contact the homeowners. A few days later, he informed us that the homeowners had said that the water stains were from a hose leak. We ask him to confirm this because we were unsure. Again, the real estate agent contacted the homeowners and he told us that it was from a hose leak. We closed on the house. On December 1, 2006, there was a lot of rain and my husband was home. He found that the walls were letting in water like Niagara falls! I will recommend that you file a complaint againt your Realtor with RECO, the body that licences us in Ontario. Go to RECO's website to begin. They will investigate the circumstances and determine if his actions contravened the Code of Ethics or the Standards of Practice. They can fine the Realtor, or reprimand him, but they can't make him pay you any money. You can also file a complaint against him through the local real estate board, ( likely the Toronto Board or the Mississauga Board ). They will investigate and take punitive action against the Realtor if it's warranted, but all they will tell you is that the Realtor has been "dealt with." What you need, though, is money, not moral satisfaction. Your lawyer has already given you good advice on how to proceed in small claims court, so if I say something the contradicts his advice, remember that he's right, I'm wrong. I will touch on something that you might or might not have discussed at length with your lawyer. In order to convince a judge that you should be awarded "lost rental income" you will have to demonstrate that your property is zoned as multiple residential, that basement units are legal in your part of the GTA, that the apartment meets all of the fire and building code requirements for secondary units, that you had a tenant available to move in, and that the rental rates for similar units in your neighbourhood substantiate the money you estimate you've lost. If you only had a notion that you might be able to put an apartment in the basement, don't even mention lost income to the judge. It sounds likely that the sellers knew the basement leaked. If there is no written statement or representation from them saying that the basement is dry, it will be your word against theirs. Was there a Vendor Property Information Statement for the house? Wet basements are covered in that document. If they signed it and it says the basement is dry, that's your evidence for court. The document that you DO have is a report from the Home Inspector which indicated that there was water in the basement. That's a patent defect, i.e. one that is obvious to the average person and not something the sellers have to disclose. The sellers do have to be honest in discussing a patent defect when questioned about it though. The judge will be wondering if, having become aware that there was water, you took reasonable actions to investigate the source of the water, and whether or not the information provided was falsified. He'll also wonder, was it reasonable, for such a serious problem, to rely on a phone message relayed through the Realtor? That's where your Realtor's testimony will help you or hurt you. How much trust did you have in your Realtor? Was the Realtor negligent in making inquiries on your behalf, or was he misled by the sellers or the seller's Realtor? If RECO investigates his actions, and finds him negligent, you might be able to use that as evidence against him in court, so that you can go after both the seller and the Realtor (ask your lawyer.) I'm not a legal professional, so I've gone out on a limb to say what I have. I am a good Realtor though and I believe that other Realtors should be accountable for their errors or disservice, if they exist. I'm not sure what your time lines are like for court, or how long it will take for RECO to investigate your complaint. It might only be a longshot. |
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Why do we not see prices on for sale signs? Even when buying a car its nice to see a price in the window! People look at houses and figure its out of their price range and never bother.What's wrong with putting the price on the realty sign in the yard? Ken, Barrie Unfortunately, most Realtors have not studied Marketing 101, as I have, and don't think like a consumer as you do. Give the customer what they want and they will buy your product! That's my vision for what I do with buyers and sellers. But in the real real-estate world, it's a whole other ballgame. The real reason is, the Realtor wants you to call them up to find out the price. If they put it on the sign, you'll drive away. If it's not on the sign, then when you call them to ask about the price, they can feed you some information on some other houses that are in your price range.Bingo! Sale. Fortunately for you, you've found a Realtor who isn't just out to make a buck out of dealing with you. |
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Is there such thing as having no legal fees? Sherrie, London Unfortunately, the legal stuff is not something that a homeowner can do themselves. The opportunities for errors are too numerous, and the consequences of those errors are too expensive. As the lawyers say, you can pay them now to do it properly, or pay them twice as much to fix what you screwed up trying to do it on your own. In theory, it's possible to do the legal stuff on your own, but in reality it's not advisable, especially with mortgage fraud, identity fraud, and title fraud being so prevalent today. |
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I was e-mailing about the legal implications of buyers purchasing a duplex and converting it back to a single family home. Are there taxes they have to be concerned about? George, Embrun People often buy big old century homes, that have been chopped up into apartments, and restore them back to their original glory. I have never heard of any tax issues related to doing that, and I can only think of two taxes that might be involved. Your Municipal Tax assessment would probably change, which would affect the amount of property tax you would have to pay after the renovation. I'm not sure though if the taxes would be higher prior to the renovation, as a duplex income property, or after the renovation, as an upgraded but single-family older home. I guess it would depend on the type of home, and how much upgrading you do during the renovation. Your local city hall can give you some ideas on that, then you can tell me what they say! I don't know the answer. Your other concern is the Goods and Services Tax. As a landlord, you would have been using input tax credits to offset your rental income. Because of that, you will have to pay GST on the sale price of the house when you sell the property. If only the previous owner was filing GST returns, and you have not, then you don't have to pay GST on your sale price when you sell. GST issues are so complicated that even the people at the Ministry of Revenue have a hard time deciding when you have to pay, or not. I'll strongly suggest that you talk to your tax accountant to get a more precise answer on the GST implications of your own situation. I'll keep thinking about it, but that's all I've come up with so far. Addendum to emailed response: I was so busy thinking about the tax consequences that I didn't notice you also asked about legal consequences. There might be some quirky local bylaw that is designed to maintain affordable housing in your community, and that prohibits the conversion of a multiple family dwelling back into a single family dwelling. I've never actually seen one. If you spoke with your local municipal office about the implications to your taxes, hopefully they would have also told you if such a bylaw prevented the conversion. |
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My wife and I bought a new (off the plan) house in Fall of 2006. We of course need to sell our house that we have been living in for 7 years. I have had a real estate agent make an offer on my house. Her intentions with the property are to rent it out at first and perhaps relist on the market. On the offer she presented, beside GST, there are two choices to type in "included in" or "in addition to". Right now it reads "included in". If I were to sign on the dotted line, would I be facing GST charges on this transaction? My fear is that because she wants to use it for profit, that wording would come back to haunt me. Am I wrong to think this way, is it ok to leave the wording as is? Is the Gst applicable or not in this case? Mark, Toronto You're right to question what it means, but you're probably OK to accept the offer with that wording. The GST liability is based on what the current owners (you) have done with the property, not what the buyer will do with it in the future. GST is applicable if the owners have been using part of the home for business purposes, and using that cost as an input tax credit to get GST refunds. GST would be owed on the sale and the buyer and seller would adjust the sale price, through negotiations, to either raise the price and include GST in it, or lower the price and say that GST is in addition to it. That's assuming both parties know it's going to be paid. "Included in" is the default position for most resale home offers. By writing the offer so that GST is included, the buyer is protected in a case where GST is owed, but the sellers haven't mentioned their business use of the house. It means that if GST has to be paid and it's a surprise, it's coming out of the sale price of the house. The issue for you then is, have you used all or part of your house for business purposes and filed GST claims using those expenses as input tax credits? If you have, you should consult with a tax accountant to figure out how you will be impacted by the GST, and what the implications are if you have filed income tax returns claiming part of the house as a business expense to offset your income. If you have only been living in the house like normal people, don't worry about it. You won't have to pay GST, so whether it's 'included in' or 'in addition to', is irrelevant. It won't come up. |
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We purchased a house 3 years ago in Hillsdale.. The first rain we had the basement leaked. we phoned the previous owner and the admitted that they had a leak previously. They signed the real estate document that stated that they had no previous knowlegde of a leak or foundation problems. well we removed the drywall recently and found that the drywall had been removed and replaced and that the outside of the house had been patched and the problems hidden from our knowledge. Do we have recourse or what can we do, or who could you recommend. Mark, Hillsdale Hi Mark. Thanks for visiting my website and for sending your question. There was a problem with your Email address, so I'm posting my response here. I'm not a lawyer so, when you're reading this, please consider everything I say as suspect until you get it confirmed by a lawyer; it's just my opinion after hearing a lot of bad stories from good people who bought from bad people. I can't find your house on the mls system so I assume you bought privately. I'm not sure if you bought an older house or a new one, a modest one or a big-bucks one, or if you had a home inspection done. I'd have a different answer for each scenario. If the house is fairly new, you would have a remedy under the Ontario New Home Warranty Program. Aside from that, this is my generic answer to your situation. When your sellers lied about the wet basement, that was a fraudulent misrepresentation. There are frauds that the RCMP or OPP get involved with and press charges for because laws were broken. Unfortunately, fraud in real-estate deals isn't covered by any legislation. Cases like yours end up in civil court, i.e. law suits. I'm an honest guy and I still have trouble wrapping my head around the fact that there are tons of people out there who can sleep at night knowing that they lied to good honest people and made money from it. When sellers lie about things like leaky basements, they evidently are assuming that you'll choose to spend your money fixing the problem they sold you instead of spending even more money trying to sue them to get them to pay to fix it. I suspect that, after considering the costs of a law suit and the odds of winning, most people like you just chalk it up to getting screwed over (yet again) by life, put it behind them, and concentrate their energy on fixing the house so that they can sell it with a clear conscience when the time comes. Have you figured out why you have a wet basement? In a surprising number of cases, it's just poorly directed downspouts on the eavestroughs and surface water running towards the house instead of away from it. On the other hand, your foundation might be sitting on top of an artesian well. Until you know where the water is coming from, and what it will cost to remedy the infiltration, you won't know what it will cost to fix it. If the cost to fix it is small, swallow your pride, and fix it. It's not worth the costs of going to court just to get the satisfaction of having a judge scold them for being fraudulent. If the cost to fix it is huge, then find a good lawyer and go get your money back! If you didn't use a Realtor, you also might not have used a Home Inspector to assess the property before you bought. If you did use one, he might also bear some responsibility for your costs, and your lawyer will suggest a lawsuit against him too. Please let me know what you find out, and how it works out. Thanks again for your interest in my website (tell your friends!) and for getting in touch. |
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We accepted an offer to purchase on our home with 10 banking days to waive condition to financing and home inspection. The first deposit cheque they left went NSF. Does this nullify the offer? We have little confidence in this buyer and would prefer to avoid dealing with them as a result of the fact that we anticipate nothing but problems. Lisa, Wallaceburg I'm not a lawyer but, under contract law, I'm guessing their nsf cheque probably nullified the contract. You should get an opinion from someone with legal expertise on that though, rather than believing me. My expertise as a Realtor doesn't include knowledge in legal matters, just a passing interest. They likely won't get their financing and the deal will fall apart. Why wait until then though to get it back on the market? I would suggest that you throw a Termination of Agreement form at them and staple the bounced cheque to it. That should make them realize they're over their heads. |
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Can a property owned by two people in "joint tenancy" be changed without both parties consent and signature? Don, Stoufville I'm not a lawyer, so please consult with one before chosing and action or inaction based on my comments. Having said that... The principle behind joint tenancy is equality of ownership. The owners must have bought from the same person by the same document, at the same time, with simultaneous possession, and have equal ownership of the property. If any of those things change, at any time, then it automatically changes to a tenancy-in-common by default. That only matters if one partner dies. If it's a joint tenancy, the surviving owner(s) inherits the dead partner's share. If it's a tenancy-in-common, the dead partner's share becomes an asset to be bequethed in his will and you will have a new partner. So, to answer your question, that doesn't sound like something that could be changed if only one partner wanted to make the change.Well, legally that is. Don't get me started on mortgage and deed fraud. |
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How long; or can you cancel an agreement of sale if you were told by your agent that there is no GST on your house and then they sent a coworker to close the deal. I noticed after we had signed that the buyer wanted the GST included. If the GST is included, then I will lose a lot of money. How can I deal with this? The buyer has until the 3rd of April to back out. Thankyou, Tanya, Deseronto The standard wording in an offer is that the GST is included in the sale price, as opposed to being in addition to the sale price. There normally is no GST on a resale home so it's not really an issue. The clause is there to protect the buyer if there happens to be GST owing on the sale, meaning it's going to come out of the sale price, and not be on top of it. GST is only paid on a resale home if the seller has been using the house for business purposes and has been claiming input tax credits on GST tax returns. If you have not been using your house for business purposes, relax, there is no GST payable on the sale of your house. |
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I listed my house with a broker, but I have found a buyer on my own. Do I have to pay the the realtor the all of the commission amount? Sharon, Apex NC If you signed a side-agreement with the Broker allowing you to market the property privately at the same time the Broker was listing it on the MLS system, then you only have to pay the commission that was outlined in that side-agreement. If you used a standard listing agreement, you're pretty much going to have to pay the full commission. It gives the Broker the exclusive right to act as your agent in marketing the property, and to be compensated for doing that if it sells. The Broker can convince a judge that you only found that buyer through the Broker's marketing efforts, and he will be awarded his commission. If you look through your listing contract, you'll find a "holdover" clause. It says that for a period after the listing expires (60 or 90 days usually) if a buyer who was "introduced" to the property during the listing period buys the house, you have to pay the commission. If your buyer is willing to wait out the holdover period though, you can cancel the listing now, take it off the market, wait out the holdover period, and then do the deal. You would not have to pay commission in that scenario. However, be careful. Those private buyers are usually buying privately because they want a deal of some sort. You might go through with all of that, and then not be able to come to an agreement to sell when you sit down and negotiate with your buyer. You should get your private buyer to sign a contract with you now, with your attorney's assistance. That contract MUST have a clause in it making it conditional to you being released from any existing offers to purchase AND your listing agreement with the Broker. If you can get your buyer into an acceptable contract now, with a closing well after your holdover period expires, then go for it. I know the industry, and I'm an honest guy. You really are better off selling on the MLS system, with hundreds of buyers, rather than selling privately, with one buyer. Stick with your Realtor. You'll be better off in the end, honestly. |
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I have purchased a home on condition of selling my home. Its only been a week on the market and have had two showings. What if I change my mind and dont want to sell? I am in a stressful situation in my personal life and have realized this is not the right time for a move, can I get out of my listing and offer without any legal action against me? Angela, Barrie The night that I submitted the offer on my first house, I was physically sick from nerves. I went to sleep hoping that they would reject my offer. I thought, "What have I done!?" It turned out to be the best property I ever owned. I wish I was still in it now. You put your house on the market because you were trying to get out of the situation that you're in. You put an offer on the other house because you thought you could build a better life for yourself with it. Trust your first instincts. If you think it over though, and decide that staying in your house is the right thing to do, then yes you can. You can reject any offers that come in, even if they are overpriced, and you can suspend the listing on your house. Your Realtor will make noises, but their Broker won't take legal action to collect a commission if they think you're a source of future business. Your own offer on the other house will fall through because you didn't sell your house. Give it a few days. Change is unsettling and scary. If there are other things going on, like a marriage breakup, or a death, it complicates the emotions. Even if you let your buyer's offer expire and reconsider your options in a few days, and then decide that the offer really was acceptable, your Realtor can contact the buyer's Realtor and submit your offer to them. Yes, you can make an offer to a buyer. Sleep on it. Your choices will seem clearer tomorrow. |
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Bought my home in October, I didn't know the downstairs, had a preexisting leakage problem, water leaking from ground through foundation. After 3days of rainfall one of my downstairs bedrooms flooded. This was not disclosed at closing. I'm getting the run around from realtor and seller. Mold is now growing in the room, and I haven't had the carpet removed that I had to pull up from the floor, to wet vac over 2 inches of water. My homeowners ins. stated the costs are not covered. What is my legal recourse? Chantal, Brooklyn Park, Mn. If the previous owners knew that the basement leaked, which seems likely, they had an obligation to disclose that information to their buyers before an offer was prepared. If their Realtor knew of the leak, and helped them cover it up, there was an ethical breach as well a civil liability on his part. You're in the States, and things are done differently down there with respect to real estate, and law suits. Luckily, you can be awarded for pain and suffering, and inconvenience I guess. Up here, they only award for the proven financial loss; no million dollar awards for spilt hot coffee in Canada! You will first need to determine the costs of fixing the existing damage and remediating the mold issues that you currently have. Then, determine the costs of fixing whatever is wrong with the property so you prevent future basements floods. It might be as simple as redirecting the downspouts from the roof, or as complicated as digging all around the house, installing new weeping tiles, and reparging the outside of the basement walls with a waterproof membrane. Or worse! You need to know all of that before you can weigh the costs of repairing it yourself, and the legal costs of taking the sellers to court to TRY to recover damages. If it's a cheap fix, it might not be worth suing, or it might be something that you can handle yourself in small claims court. In either case, you'll need a good attorney who routinely handles real-estate issues. Even if it's a small-claims case, you should consult with one to ensure that you're building your case properly as you gather information about the fix. Instead of trying to talk to the Realtor and seller now, you should be talking to the attorney that handled your sale and escrow. That's what the attorney's are there for. They handle the problems that crop up. You didn't mention whether you had a Home Inspector in to review the property before you bought. If you did, your attorney will be adding them to the list of people you're suing. If you didn't, the judge might wonder why not, and conclude that you share some of the responsibility for not consulting with an expert who could have detected the dampness behind the drywall. Having said all of that, I'll remind you that I'm a Realtor, not a legal expert. Even worse, I'm not even a Realtor in your country. Please don't chose any action or inaction based on anything that I've said without first consulting with a legal expert/attorney. |
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We bought a house in East Vancouver a year ago. The owner had a certificate that no oil tank could noy be found and our inspector claimed that there was no indication however we have found a pipe bihnd the clothes dyer and one outside. It was not hard to find. Should I get a further inspection and if we do find one what is our position - is the pervious owner or inspector accountable? Jane, Vancouver Thank you for waiting for a response. I was stalling and hoping I could think up a new angle on buried oil-tanks, but no luck. It's a complicated issue. I'm not sure how much you've learned about it so far, so I'll think out loud for a bit and hopefully either confirm your conclusions or open some new doors to explore. Oil tanks are handled in different ways by different provincial governments. There's a Vancouver website that might be of some help with the regulations and remediation; if you haven't already done so, go to housesmartcentre. I'm an honest guy and it always surprises me that other seemingly average people are not. Sellers lie about all kinds of things, even when they know their buyers will find out about it later on. The common train of thought seems to be that the buyer's will conclude that the cost of accepting defeat and remedying the problem on their own will be lower than the financial and emotional costs of taking the sellers to court. Buried oil tanks can definitely be in the "worth suing for" category. Insurance companies are denying coverage to purchasers of properties with underground oil tanks. The costs of remediating a leak can run into the millions if it gets into a local waterway. So, the immediate issue for you is to define the scope of the problem. If it's a dry tank that never leaked, you'll probably just chalk up the costs of removing it (required by law) to normal home maintenance, and get back to your life. If your house is sitting on a substrate contaminated with furnace oil, you'll either be going to small claims court, or hiring the best lawyer in town and putting his kids through university with your legal fees, depending on the scale of the leak. If you don't smell furnace oil around the property, it's a good bet that you're only faced with a dry tank removal. The first step is to have soil testing done around the tank to find out which scenario you're dealing with. The expensive way to do that is to hire an environmental consulting company to do testing. Who pumped oil into the tank? Ask the neighbours, or the previous owners, which oil company brought oil to the property. You might have to make random calls to companies and ask them if they ever supplied the property. When you find that supplier, tell them you want to know if your underground tank is leaking, after reminding them that they filled it. You're asking them because they bear some responsibility, so to speak, for pumping oil into a leaking tank. It's not a new issue for heating oil companies, and the better ones will have an action plan in place for just such a scenario. They might be able to share the costs of the testing, have an arrangement with an environmental engineering company, and have a contact in the government. At the least, they can recommend a remediation company to do the soil testing and define the scope of the problem. After the testing you'll be able to get an estimate of the costs of removing the tank. If it turns out to be a costly leak, you'll be looking for people to blame and help you pay the costs of the remedy. Lawyers like to sue everyone, and spread the blame around, thereby increasing the odds that someone who actually has money can pay their share of the costs. Judges like to spread the blame around too, and that usually includes the person bringing in the lawsuit. Would the average competent Home Inspector have recognized the signs of an underground tank? Would the average competent BC Realtor search his buyer's property on the oil-tank registry? Would the average buyer's lawyer search the oil-tank registry? If they searched, but the tank wasn't registered, who was responsible for registering it (the owner, the fuel company?) and what penalties are there under the law for not registering it? Was the owner even aware that there was an underground tank? When was the last date that the tank was filled, from the fuel company records? Did your sellers own the house at that time? Your case, to the judge, will be that all of those people failed you, and that they should be helping to pay to bring the property back to compliance with the law. The only fly in the ointment is that, as you say, the pipes were visible in the basement and against the basement wall outside. A judge will say that you had the opportunity to ask what the pipes were for before you bought. Some judges might think that it constituted a "patent defect," meaning that a typical buyer would have spotted the defect and that the seller had no responsibility to point it out. The sellers do have an obligation to answer honestly though when a buyer makes inquiries about a patent defect. You'll have to prove that they knew the tank existed when they signed a document that there wasn't one. Having said all of that, I'm obligated to remind you that I'm not a lawyer or a legal expert and you should not chose any action or inaction based on anything I've said without first consulting a lawyer. I hope I've helped resolve some of your questions, or steered you in the right direction. |
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Me and my husband are thing about saleing our home next year. My question to you is when we brought the house there was evidence of water leakage in the basement. I told my husband that I woould like to fix this problem before we sale. What do you thing? I don't want this to be someone else problem. Thanks Anne, CT If you don't want to end up in court, the best course of action is to disclose everything that you know to your buyers. In a best case scenario, you will have never had water in the basement during the time that you've owned it. Presumably, there was a leak before you owned it, but someone fixed the problem but didn't think the stains were an issue. In that case, you would have your buyers sign an acknowledgement that they have been told that you cosmetically covered evidence of old water leakage, and then you would warrant in the agreement of sale that the basement has never leaked during your period of ownership. If you've had water in the basement while you've been in the house, that's a whole other story. If the basement leaks when you're in it, it will leak when they're in it. Who do you think they're going to call after the first rainstorm? If you guessed their lawyer, you're right. Disclose, disclose, disclose! And get evidence that you told them! People sue when they think something was hidden from them. Tell them everything that you know, and everyone will sleep better, except for a few lawyers who won't have legal fees to put their kids through college with! |
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Hi Bill, I am inspired as to what you are doing. My goal is to sell my land and house in Newnan Ga to gang funds to invest into other properties, but at the same time I have been trying to get rehab loans but my credit score is not good enough. The City has condemned my house but I need money to bring it up to code before May 22nd. Therefore, they will demolish it and what do I do then. Help! Anonymous, GA It's fun to buy a rundown property, fix it up, and sell it at a profit, but there has to be money to pay for the fix-up part of all that. If you can't afford to fix up the property, you're going to have to sell it as it is, to free up the money you have tied up in it. Put it up for sale. Your buyer will be a builder looking to tear it down and build on the land, or a renovator who has the money to fix it and flip it. Either way, you'll get your money out from under the house and get to use it for something better. Well, that's assuming it's in a neighbourhood where there are buyers for an expensive new house or a less expensive renovated one. Once you have your cash in your hand, then you can decide where to invest it. You're lucky that it's the bottom of the market in the USA. Houses are as cheap as they are going to be, and nobody wants them. That's when you want to be buying. Good luck with your adventure! |
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I'm on a rent to own basis for a trailer and land. He did this lease where at the bottom itsays other: rent to own for 15 years. Am i responsible for the repairs needed to fix the trailer, especially the roof. He was suppose to fix the roof but what he did was useless. Now I need a new roof. Am I liable for this as well? Also, by the property still being in his name, but I'm on a rent to own, who is responsible for paying the annual property tax, and property insurance. Where can I go to get more information on this matter. Is there any way other than a loan, in which I'm not qualified for, get the property deed placed in my name? Shanda, GA I have a question before I get into answers: most trailers are on leased land, meaning the owner of the trailer only rents the land, and doesn't own it. That's a typical trailer-park scenario. Sometimes the zoning bylaws for a property allow an owner to put a mobile home on it. That usually happens out in the country. You said you're buying the trailer and the land. Are you sure you're buying the land? You might be paying for something you're not really getting. Have you seen a deed or something that confirms that your seller owns the land the trailer is sitting on? As for who pays for the repairs on a rent-to-own, there is no rule-book to refer to. Each situation is different, and the buyer and seller on each one come up with a contract that covers their specific "sale." There are no standard rent-to-own contracts. I encourage everyone who enters into rent-to-owns, or property sharing scenarios, to consider every possible bad thing that can happen, and sign an agreement that spells out how each of those bad things will be handled if they happen. In most rent-to-owns, the contract says that if the tenant ends up NOT buying the property, everything they have paid is considered rent and the seller keeps the money. Why would anyone sign a contract saying that they would pay to repair and maintain a property that they might not end up owning? It seems logical that as long as the deed for the property is in the seller's name, the seller would pay for repairs. There isn't really any authority to refer to when you make your case with your seller, other than common sense. In a worst case, you'd go to small-claims court and hope that a judge would be smarter than your seller, and order him to make the repairs. |
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My boyfriend and I split up and we bought a house together. My parents gave me the downpayment and he has agreed to take his name off the land title and has agreed to take his name off the morgage. He does not want any money from the home just to walk away. I have hired a lawyer and he has drawn up the title transfer documents which we will sign later his week. If I do all this than is the house legally all mine or can he still get money out of it. Cindy, Saskatchewan In pure real-estate terms, once his name is off of the deed, he has no claim to the property. (To settle your mind, ask your lawyer to explain how your Title Insurance policy - which you should have - protects you from him or anyone else trying to mess with your deed or take out a mortgage against it without your consent.) Your ex isn't just anyone though, he's your ex. Presumably you've come up with some kind of separation agreement, since you both sound so agreeable about the breakup. That separation agreement, and all of the laws that influence a marriage / relationship break-up, might give him some claim to any of your assets, including your house. I don't know about the legalities of divorces. Your "divorce" lawyer can tell you if there are ways that he can still come back at you, but to answer your question, once the deed is in your name, the house is all yours. Well, you and the bank, if your read your mortgage documents. |
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Hi Bill, I was wondering, if a property that is condemned and repairs total more than fifty percent of the houses value new, does a disclosure statement have to be provided at sale when there is too much to disclose, and is there any case in which a disclosure statement could be skipped? Brad, Springfield, IL To avoid an ugly lawsuit, you should always disclose HIDDEN defects in a house. The buyer will find out about them eventually anyway. If you're up-front with them, they can factor in the defects and adjust their offer. If you don't tell them, they're just going to feel like they were ripped off, and want revenge. Judges usually rule that the UN-hidden defects would have been obvious to a typical buyer, and the seller doesn't have to go overboard to point them out. It's always safer to disclose than to not disclose when you're faced with the choice. In your case, it should be enough to disclose that the structure has been condemned, and disclose any costly repairs that are hidden. The rest, which is visible, should be apparent to the buyer and their home inspector. Some Realtors put "for land value only" in the MLS listing to cover any problems that the buyer has later on with the house. Good luck with selling your house! |
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Does the buyer or the seller pay for surveying the land in Illinois. Mark, Princeton IL There aren't really any rules to follow. If the survey has not been done already, then it becomes another point to negotiate when the offer is made. It's up to the buyer and seller in each particular deal to figure out who's paying for it. Generally, I encourage my sellers to remove any objections that the buyers can come up with. The survey should be done before the house is put on the market, at the seller's expense. I also recommend having a home inspection report, from a large reputable national home inspection company, available for the buyers. Well and septic reports, fireplace/woodstove inspection reports, and a 1 year home-services warranty on the furnace and other equipment should all be available, all at the sellers expense. You want to remove any doubts from the buyers' minds. The only thing they should be thinking about is whether or not they want the house. In the ideal situation where there are 2 or more buyers making offers, having all of the above done for the buyers can mean the difference between getting more than your asking price, and having all but one buyer walk away because they were afraid to make an offer. It's expensive, and a pain, but it's an essential part of preparing the property to get the best price for it. You do get your money back in the end by getting a higher selling price. |
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I made an offer on a house with conditions of home and EFIS (Exterior Finish and Insulation Systems or EIFS: Exterior Insulation and Finish Systems) inspections. The closing should have taken place on May 31st. Repairs to EFIS had not been done and closing was delayed, the seller refused to let me out of the deal. Final inspection came back two weeks after closing should have happen and conditions of addendum had not been met. I signed a release which included the signature of my broker. The seller signed in the wrong place and her broker "cannot be found" for a signature. It is now 18 days after closing should have happened and three days after I signed the release. I would like to make an offer on another home. How long can the broker legally make me wait for their signature to release me from this deal? Heather, Richmond, VA, USA Any reasonable person (and hopefully a judge) would conclude that the seller's signature on the release, even in the wrong place, indicates that the seller intended to release you from the deal. It's the Realtor/Broker involved who is trying to delay things for some reason. Was this deal the only chance that they had to do a deal with you? I suspect it is and they're clinging to it. Your contract is between you and the seller, and does not involve the Realtors or Brokers. In my country, the release only requires the seller's signature and any witnesses' signature. The witness doesn't have to be the Realtor/Broker, although it's usually them because they're in the room when the sellers sign. You'll need to get legal advice from an attorney there who does real-estate law. Ask them to get you released properly from the deal, and to also explain your obligations to that Realtor/Broker. Hopefully you haven't signed a buyer-agency agreement with them and can start working with a buyers-agent Realtor who is committed to your best interests. You've had a bad experience and on behalf of Realtors everywhere, I apologize. Don't let the experience take away the fun of searching for and finding your next house! |
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So glad I found this website! My common Law spouse and myself purchased a home together 2 years ago. My name is NOT on the title, but we would like to add my name. How do we go about this? and how quickly can it be done? Rhonda, Courtney BC Your lawyer can make the arrangements to have your name added to the title. If there is a mortgage, the lender might have to agree to the change; you'll find out by reading the fine print on the mortgage documents (or asking your lawyer.) If there are no other liens on the property, it should be a simple matter. It's not simple enough, though, that you should try to make the changes yourself. Mortgage and title fraud are a huge problem in the real-estate world today. You need to make the changes so that you have protected yourself, rather than making it easier for the crooks to take your house or attach a fraudulent mortgage to your property. It's a job I'd only let a lawyer do. Since you just bought, you likely have Title Insurance on your property. Ask your lawyer if you're not sure. If you don't, use this opportunity of meeting with your lawyer to have a policy set up for you. My mother has been in her house for 30 years and I just had one set up to protect her from the crooks. I hope that helps! |
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I have a co-signer on my house. It is up for renewal and she wants to come off. Please tell me the process that that involves. I appreciate. Sylvia, Brampton The co-signing thing is all between you and your lender. It's the lender's document that your friend signed to back you up. You will have to talk to your lender to see if your equity in the house or your financial situation, reputation and credit history have improved enough that you can qualify for your mortgage without having a co-signer. If you can, you can have new mortgage documents drawn up with only your name on them. If not, your friend deserves an estimate of how long it will be before she can be released. What is her concern about being your co-signer? Maybe she's worried about something that really isn't an issue. The co-signer has no responsibility until the owner defaults on the loan. Co-signing for you doesn't prevent from doing other things on her own. |
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I am selling my house and it is on a sandpoint well. We replaced the pressure tank in the fall of last year, and all of a sudden we had very little water. We called a local plumber who said the only remedy was to replace the well with a drilled one. My husband decided to do some research, and it turns out that the pump wasn't primed correctly. Now our water has returned to the way it was for the last 3 years. Thing is, it is a sandpoint well, and still is not as efficient as a drilled I am told. When filling up the bathtub, you sometimes have to turn off the water and let the pump catch up (about 5 minutes), then continue. But like I said, for my husband and I and our son and 2 dogs, we are used to it and have no problem. I filled out a SPIS statement saying that it was adequate water supply and worked well (pump and pressure tank are both less than a year old). Now, according to me it does. I am afraid that if the city dwellers who bought my house don't think so, they will turn around and come back at me. Do they have any recourse? My other concern is that it is a small community, and my neighbors saw the plumber working on our well last year. What if they tell them we have a plumber come and give us advice? Even though it was an installation issue? I will be the first to admit that the pressure isn't the best, but it has suited us just fine for the last 4 years.... Louise, Ottawa, ON I spend the summer of my 17th year helping my father hammer a 30 foot pipe into the hill next to the cottage that we built with our bare hands. We hit an aquafer. We had a never-ending supply of fresh water. If you hit the perfect aquafer, unlike ours, water gushes out of the pipe (an artesian well.) Sandpoints can deliver the goods. Because you rectified the problem without replacing the sandpoint, I suspect you had mistaken advice from a good plumber, honest advice from a bad plumber, or a nudge from a plumber drumming up work for his well-drilling buddy. If gallons per minute from the well were an issue for the buyer, it was up to the buyer's Realtor to make the offer conditional to the well producing a specified amount of water. If he didn't, and the well dries up, the city buyers will be suspicious of you, but they'll sue their Realtor first. You were honest when you answered the SPIS. The well provided an adequate water supply for you. It's all relative. How could you know that "adequate" in the buyer's minds meant doing 12 loads of laundry per day? If you can tell a judge that you thought the water supply was "adequate" in your mind, then relax. As for questioning the neighbours, they saw the plumber at your house because you were getting ready to sell it. You had the plumber come in to replace the well pump and pressure tank. It's not unreasonable that the plumber would check in to see that everything was working properly, or to see if the overall plumbing in the house needed to be upgraded. I generally tell sellers to be honest and disclose what they know. If you cover up a fault, the buyers are going to find out when they move in and get a judge to give them back the difference, so what's the point? You didn't cover up. You were honest, so I don't think you're vulnerable. |
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My husband and I recently bought a home and used a lawyer to take care of all the necessary tasks involved. About 6 weeks after moving into our new home, we received a notice from our Town informing us that the previous owners had an unpaid water bill for aprox. $700 and that they were putting a lien on our home. My question is, was it my lawyer's job to have known and inform us about this outstanding bill before closing on this home? We were under the impression that the lawyer would be making sure all bills by the previos owner were paid . Annette, Aurora ON Checking for unpaid taxes and water charges is such a basic part of what the lawyers do that it's almost guaranteed that your lawyer did it. The problem is most likely a bookeeping error at the lawyer's office or at the Aurora town hall. If you look at the papers that the lawyer gave you, you should find a "statement of adjustments," or something similar, that shows where you were given credit for things like unpaid taxes. The unpaid water bill should be mentioned there. If it is included, your lawyer reduced the amount of money paid to the seller by $700 and either gave you the $700 or sent the money to the Town on your behalf. It's possible that there was a bookeeping error at the lawyer's office and the money was never sent to the Town, or the money was sent but it was credited to the wrong house. Mistakes happen. You should call your lawyer. Part of what you paid them for was to answer your questions about the transaction. Now you have one. They should be eager to resolve the issue for you. If it turns out that the lawyer didn't check at all for unpaid bills, you shouldn't have much trouble in small claims court recovering the $700 from the lawyer. Lawyers are sued more often than any other group of professionals are. |
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I would like to know the process of closing on a house after the due date has passed. I had sold my house, went to hand in the keys and sign all documents to close only to find nobody knew where the buyer was. How far in advance should the buyer be in with the lawyer and sales agent with the mortgage papers all signed and ready to go. The day before closing our lawyer told us the buyer was not his client but the real estate agent told us he was his lawyer. Shouldn't all papers mortgage arrangements and agreements been signed long before the closing date. Now we are being pretty well ignored I woke up the other morning to see that my house had another for sale sign on it and nobody had spoke to us on how we wanted to handle this. (portion of email omitted) This buyer (apparently) went to Ireland to see a sick brother is what we were told. But he works here. Aren't the agent lawyer somebody suppose to do something to track him down because the lawyer says he's on hook legally but have said nothing else to us. (portion of email omitted.) Whose job is it to make sure the paperwork was signed before the closing date as we were given instructions on what we had to do on our end 3 weeks before closing (portion of email omitted.) Helen, Bowmanville ON What a great story! What a bizarre scenario though! My I-know-a-guy lawyer tells me that, theoretically, it's possible to get a judge to order a buyer to fulfill their obligations in a home-purchase contract (assuming you can find the buyer) but the judge will only do that if it's a unique property and if no other buyer could potentially step in to buy it instead. A judge would likely rule that it makes more sense for you to put your house back on the market and sell it to someone else, rather than waste the court's time trying to make your lawyer buy your house, or whatever you would sue for now. I'll refer you to your lawyer for legal advice on what your options are for resolving your current position. Instead, I'll concentrate on what the Realtors could have done, and the danger that I think you're in now. Despite what you see in the TV ads for real-estate companies, the typical Canadian Realtor doesn't work closely with the buyer's lender, or lawyer, unless the buyer is having problems. We will suggest a mortgage broker or lawyer to the buyer, but once they have a client relationship with those professionals we back off and let them work together unless we are asked for our assistance. Early on in the deal, when the buyer's offer has been accepted, there is a flurry of paperwork as the conditions are waived or fulfilled. The buyer is usually given a copy of the agreement to take to their lawyer. There is usually a request to fax the agreement to the buyer's lender. After that, there isn't really any paperwork that would be missing and raise suspicions that the buyer had bailed. If a buyer told me that he had secured financing (waiving his financing condition) and was working with a lawyer, I would not think it was strange if I was not contacted by those professionals, or the buyer, during the final stages of the deal while it was moving towards the closing date. If the buyer disappeared after the lender was satisfied, most Realtors would likely not be aware of it. The buyer's lawyer would be aware if his calls weren't answered, but if the buyer hadn't engaged a lawyer yet, they could just evaporate into space as your buyer did. After hearing your story, I'm going to assume the responsibility for ensuring that my future buyers are still around as the transaction progresses towards closing. Thanks for educating me! I've been talking about the average Realtor's actions because, if you end up taking the buyer's Realtor to court, the judge will compare your buyer's Realtor's behaviour to the average buyer's Realtor's behaviour. If yours did what most do, you'll have a hard time getting compensation for their actions causing your harm. I'm not sure what's going on with the Realtor saying your lawyer is the buyer's lawyer. Lawyers generally refuse to work for both sides in a deal. If your lawyer says he doesn't know the buyer, believe him. The dirt is with the agent and the buyer. I'm a bit disturbed by your comment that there's a for sale sign on your lawn when you don't know anything about it. If your listing with the Realtor expired, it shouldn't be there. If it hasn't expired, you should have at least had a call from the Realtor explaining why your house is back on the market. The Realtor might be dirty, but the real culprit is the missing buyer, and your concern should be what the missing buyer's motivation was. They now have a document with your signature, and the legal description of your land, in their hands. Who knows what your buyer is really up to? I'd recommend that you call your lawyer immediately and have him put Title Insurance on your deed. If you bought recently, you likely already have it. If not, you're in a very vulnerable position right now. I apologize for dropping that on you on a Saturday on a long weekend when the lawyer isn't working. The Land Registry Office is also closed until Tuesday, so the bad guys can't steal your house out from under you over the weekend either, but they can on Tuesday if they haven't already. This needs your attention. |
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(Abridged email:) My wife and I sold our home. A couple of days after the home inspection the buyer says he not able to follow through with the purchase of our home due to the fact that his mortgage company , who approved him 2-3 weeks earlier, said that a Tax Lien came up on his most recent credit report and they are not able to approve his loan anymore. We lost 5-6 weeks with our house off the market which now we are going to incur extra cost do to this. Did I mention that we bought a house with a settlement date most likely going to come before we can now sell our home. Now with my question, the buyer put down a $5000.00 deposit at time of signing contract. The buyer is now demanding we sign off of his deposit so he can get his $5,000.00 back. All this said I dont belive I will be signing off on anything soon, I believe we are entitled to keeping his deposit, the only problem is he wont sign off ether. How does one go about forcing him to release funds to us.The letter from the Mortgage co was signed by the President of the Mortgage Company. We have found out that the President of the Mortgage Co. is a bussiness associate of the buyer. Now we think the Pres forged a document to get his associate/freind out of this contract. Brian and Valerie, Delaware Thank you for visiting my website and for sending your questions about keeping your buyer's deposit. Your Agreement of Purchase and Sale spells out what you can and can't do, and what your rights are under the contract. If it doesn't say you can keep the deposit, then you can't. Before the Agreement was a binding contract, it started out as an offer. Offers are always written to the advantage of the person making the offer, which in most real estate deals is the purchaser. I would be very surprised if there was something in it saying that the seller (you) could decide whether or not to return the deposit. You're in an unfamiliar State in a different country though. Maybe things are done differently there. Your attorney can review your Agreement to see if there are provisions allowing you to keep the deposit. After Enron and the other scandals, it's not difficult to jump to the conclusion that bank officials are corrupt and would falsify documents. If you think about it though, what Bank President would risk his job, his reputation, and his career to help a friend or business partner do something that was illegal, and didn't provide any financial gain to the Bank President, just to save the friend a few thousand dollars on a deposit? It would be too easy for someone to uncover the deception. I don't doubt that there is a flaw in his credit that popped up between the pre-approval and the mortgage application. It doesn't happen often, but it's an occassional unpleasant surprise in real-estate deals. After discussing this with your attorney, you'll probably conclude that you're shooting yourself in the foot by trying to withold the deposit. You can't re-list and sell you house until the buyer releases you from the contract because you can't have two Agreements of Sale at one time. He's not going to release you until he gets his deposit back. He can't buy another house now anyway, so he doesn't need the money back right away. He can dig in his heels and wait it out. You can't. Every day that ticks by moves you closer to owning 2 houses. It's in your best interest to get rid of the current buyer and move on with finding a new, better, one. You're suspicions are the biggest obstacle to doing that now I suspect. People are generally not intelligent enough to be as crooked as we think they are. Cut the loser loose and concentrate on your goal of selling and moving. |
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I am in the middle of a divorce..in my separation agreement I signed over 100% of the house to my ex and all the responsibilities of the house to her. The house is now sold, with me signing the house over do i still have to sign off on the house in order for the divorce to go through. Sandy, The Soo My condolences on the breakup! I'm not a legal expert so please consult with a lawyer before choosing any action or inaction based on what I have to say here: Up until the time the divorce is finalized, and you both have your separation agreements, both spouses' signatures are required on the listing and sale contracts for the matrimonial home, even if only one name is on the deed. The spouse without the house always has a claim to the property right up until the divorce is a done deal. If you signed the separation agreement, and then refused to sign the sale documents for the house when the ex found a buyer, you could be violating the terms of your separation agreement. It's in the fine print, if it's there at all. As a non-lawyer, I'm not sure if you have to sign the Agreement of Sale and Purchase in order to finalize your divorce but, as a Realtor, I know that before your divorce is finalized, you do have to sign the sale documents in order to finalize the sale of the house you shared. Regular people talk a different language and I'm not sure if 'signing off' and 'signing over' mean to you what they mean to me. If I didn't get what you meant, please get back to me! |
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My sister signed a purchase agreement and for some reason agreed to cross out a clause which allows her deposit to be refunded if the mortgage did't go thru. Now the closing date is tomorrow and she is short on the down-payment. Is her deposit forfeited? it is quite a large amount,$40,000.She said there were lots of bidders so to outbid she placed a large depoist.Pls give us some advice. Meaghan, Toronto I don't think your sister is really short on the downpayment. I'll explain why in a minute but, first, I want you to scold your sister for crossing out that clause. I've never heard of anyone putting their life savings at risk like that. When the bank approves a mortgage, they have to approve both the borrower AND the house. It's not uncommon for a borrower to be approved for a house up to a certain price range, but then be turned down for a house at that price when they make an offer. It's usually because the bank's appraisor tells the bank that the house they're buying isn't worth the asking price. Or it might be priced right, but there have been many insurance claims on the property and it can't be insured, meaning the bank will deny the mortgage. What would happen to your sister's money if the HOUSE didn't qualify for a mortgage? Well, I'll tell you; the bank would turn down her mortgage and, because she altered the offer, the seller would keep her deposit, put the house back on the market and sell it to someone else after reducing the price later on. What's worse is, if the seller KNEW it was overpriced they'd be laughing at the offer and accept it knowing they were going to make a quick $40,000 and then be able to sell it to one of those other buyers who had offers on the table. Offers are drafted to the advantage of the people making the offer; the buyers. They are full of protections for the buyers. You can't remove those protective clauses without thinking through the consequences, and NO house is worth forfeiting your deposit if the deal falls through. As for the downpayment, when your sister was pre-approved, the bank based their decision on her savings, her monthly cash flow, and a maximum price for the house. She evidently had $40,000 in a bank account because she wrote a cheque for that. It's possible to buy a house with only 5% down. Her $40k would have qualified her for an $800,000 house. If she bought over her approved price, she wouldn't have been crazy enough to make the deposit nonrefundable in a mortgage denial. If this house she is buying is worth less than $800,000, or whatever she was approved for, then she is not short on her downpayment, and I'm wondering if there's a misunderstanding about the deposit and the downpayment. They're confusing. The bank is going to lend a certain amount of money to help pay for the house. That's the mortgage. The difference between the mortgage and the sale price of the house is the owner's equity, or "downpayment." That includes the deposit that the seller's Broker holds in Trust. If your sister's deal goes through, the $40,000 is still sitting there for her to use as all or part of her downpayment. It's still her money until the deal closes. If the mortgage isn't approved, she's going to lose her deposit unless her lawyer can find a way to get around the damage she did to the offer. If the only thing that would stop her from getting the mortgage is the "downpayment" then I suspect she has enough cash and the mortgage will be approved. I'm afraid to ask what she did with the Home Inspection clause! Yikes. |
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We are about to lose our home under power of sale and will be declaring personal bankruptcy. What is the legal consequence of selling off some of the pool equipment we recently purchased and other moveable upgrades like kitchen island, ac unit etc. French doors etc? Since any deficit what be under the bankruptcy can we be legally charged for doing this? Ontario You're living the nightmare that we all dread. I hope I can help. Your mortgage says something to the affect that if you don't meet your obligations outlined in the mortgage, the bank can take the "property" that you financed under the mortgage. The "property" includes all of the stuff that is nailed down, like the land, and the house obviously. Inside the house, it becomes harder to define. We run into the same problem with sellers who want to keep stuff. The law makes a distinction between fixtures and chattels. The fixtures stay, the chattels go in the moving van. Anything that is screwed to the wall is a fixture, and has to stay. A painting hanging on a hook is a chattel. You can take the painting. The hook it is hanging on is a fixture and stays with the house. As for the pool equipment, they are in a grey area. Will the pool operate properly without the equipment you're planning to take? If not, it's a fixture. If it's only an accessory, like a pool skimmer, that's something that you could take. But back to your predicament... If there's that much equity in the house, why are you walking away from it? You should be able to refinance unless there is a mountain of debt not related to the house that you're using as collateral. What's going on? Thanks for your quick response. There is no equity in the house. If we weren't going bankrupt I would be concerned obviously with being sued for the deficit which will most probably be on the 2nd mortgage since there will be enough to pay out the entire first. To be frank we needed to sell off the pool equipment and some French doors and kitchen island (free standing) just to put food on the table. So as bad as what I did, and I don't for one minute expect to justify this, what I did was out of necessity. My question is can I be charged with something legally for what I did or would the deficit just be rolled into the bankruptcy or could they possibly go after me outside the bankruptcy for selling these items? When the house is sold under a Power of Sale, it's sold AS IS. The buyers get to tour the property and make an offer based on what is there. If you took stuff out AFTER they toured the property, you'd be sued by everybody. If the stuff was missing when they toured the property, they'd buy only what they saw. So, the bank doesn't care that the stuff isn't there. They just assume there will be less money coming in when it sells. You can subtract the value of the stuff that is necessary for the house to function (like the pool equipment) or to finish it off (the french doors) from your estimate of what the house will sell for. I'm not sure if you've discounted the sale value because it's a Power of Sale. Under a Power of Sale, you still own the property but the bank is forcing the sale. (As opposed to a Foreclosure where the bank takes over ownership.) Because you still own it, the bank is required to sell it at its full market value. If they sell for less, they are obligated to top up the sale revenue to give you the full market value. Is it really worth only $500k or did you assume it would sell for less than its market value because it was a "bank sale?" |
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My questions; 1. IS A REALTOR REQUIRED TO INFORM A BUYER THAT LISTING PROPERTY IS IN THE FLOOD ZONE? 2. CHANCES THAT A REALTOR WILL ADVISE CLIENT THAT 'OFFER PRICE/BUYING PRICE'IS TOO HIGH FOR PROPERTY? Mar, Innisfil In the Barrie area, when a seller lists their property on the MLS system, they are required to fill out a form called the Seller Property Information Statement. On that form there is a question about flooding and flood planes. It is really the seller who is obligated legally to disclose if the property is in a flood plane. The Realtor should ensure that they do disclose it, if they know about it. A good seller's Realtor will do the necessary research to find out if it is in a flood plane, if it's a low-lying area. There are Conservation Authority restrictions on what can be done near waterways and they need to be disclosed. As for your price question, when a Realtor writes up an offer on a house for you, you have two choices. You can either sign a buyer-agency contract with the Realtor, which makes you their client, or you can sign a document saying that the Realtor is working for the seller. If the Realtor is working for the seller, it's like buying a used car. You have almost no rights. He is trying to get the best deal for his client, the seller, and it's up to you to figure out if the price you're paying is too high. It's buyer-beware basically. If the Realtor is working for you, which they always should be doing when you're buying a house, they have to protect you and get YOU the best deal. In that case, yes they have to tell you what a fair market value for the property is. They also have to do research to find out things that could come back to hurt you, such as the property being in an undisclosed flood-plane. |
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Abridged email: My fiancé and I found a house we liked and we were told there was another offer on the house. We put our best offer in (a lot higher than we wanted to go). After accepting and doing some research, we discovered the 5-acre lot was not as potentially valuable as we expected and the house was positioned three miles from and directly in the flight path of a major commercial airport. Also, we had a home inspection that revealed a couple of issues (radon, bacteria in water, AC, pool filter leak). The seller's realtor said they would not fix anything because they had a full-price backup offer. We still put in our request for remedy asking for the items to be fixed, plus reduced our offer due to the land and flight path. They didn't accept our offer. Through the whole process, our realtor seemed to talk with the seller personally and would defend him and his house quite often. Since this deal fell through, I have not heard from her. The seller updated the status of the listing to active and within a week of our deal failing, the seller reduced his price. So, I assume there was never a backup offer either. I feel like both realtors have influenced us as well as the seller and in the end prevented the sale. Since we found out the house has radon, is the seller obligated to disclose this to future buyers (it is on the sellers discloser form)?Is the seller/realtor obligated to disclose the fact they are in the flight path? Was the seller's realtor legally able to mislead us with other false offers? As a buyer, is my realtor obligated to represent me? The listing also overstating the square footage. Would this be considered misrepresentation? I thought it was going to take forever to address all of your issues, but then I realized most of them related to buyer's agency vs seller's agency. Even many Realtors have difficulty understanding the concepts, and I'm not sure if I'm up to the task, but I'll try to explain them quickly and clearly. I'll use the words Realtor and Broker interchangeably to make it easier. Even though you're dealing with a Realtor face to face, the contracts with the Realtors actually have the Broker's (the bosses') name on it, not the Realtors. As a buyer, when you're working with a Broker, your Broker is either under contract to the seller, or to you the buyer. If the seller has one Broker, and the buyer has a different Broker, each Broker is contractually obligated to look out for their own client's best interests. If the buyer doesn't have a buyer-agency contract with one of the Brokers, then both Brokers are actually working for the Seller, and they treat the buyer only as a customer. Have you bought a used car lately? That's what it's like to be a customer, instead of a client, in a real-estate deal. The Realtor/Broker "representing" you when you made the offer was almost certainly working as a Seller's Agent and not as your agent. (You'll see the term "Co-operating Broker" in your contract next to your Broker's name if that's the situation.) If they did have a buyer agency contract with you, they'd still be obligated to you and still be finding you a house to buy, instead of disappearing when the deal fell through. You mentioned that your Realtor was in direct communication with the sellers, which is unheard of in my jurisdiction, unless the selling and buying Realtor are both working for the seller directly. In that case, your Broker wasn't even Co-operating. It was the same Broker and they were definitely working for the seller, not you. So, with your agency relationship with the Realtors in perspective, it's easier to look back at everything that went on and understand the Realtors' actions. They were trying to get their client - the seller - the best deal they could. The questionable competing offer likely didn't exist on paper or, in a worst case scenario, even in the background. I'll answer your disclosure questions in a more general way, and then come back to what the Realtors should have told you. Seller's are obligated to provide buyers with information about hidden (latent) defects in the property without being asked. Witholding information is a recipe for a lawsuit. Once they have information, such as the radon gas problem, they can't pretend they don't know about it. Seller's are obligated to provide as much information as they have about obvious (patent) defects, such as the flight path, but only if they are asked for it. The courts have assumed that the average buyer would recognize faults such as a hole in the roof, or jets passing overhead during the tour. The property has to be properly represented. Anything that can be measured has to have been accurately represented in the listing. The only way to know for sure how the Realtors should have behaved in disclosing who they were working for is to call the Real Esate Board that they belong to, and ask how their members are supposed to handle buyer-agency. In my jurisdiction we have to explain buyer vs seller agency at the first meeting with a buyer and get them to sign a form acknowledging that they understand the concept and the choice they will have to make soon. Different jurisdictions and boards have different rules, and that's even within the same State or Province! The question is, did your Realtors behave as the average competent Realtor would in your location? If they didn't, you can report them. If they did, then you'll be forewarned the next time you make an offer. You might even try to find a Realtor and Broker who are willing to work as a buyer's-agent so that you have more control over the next offer. (Since I'm not a legal expert, or even in your country, I'll recommend that you consult with a local attorney for clarification on any legal issues I've discussed or alluded to.) I hope I've helped make things a bit clearer. You've had a bad experience trying to do something good, and on behalf of Realtors everywhere I apologize. |
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My wife and I just purchased a house in Brantford, and met our new neighbours who we have a shared driveway with. More of the driveway is on our property, but there is a right of way on the driveway so that they can access their garage in the back. The driveway is shaped like an hourglass where the front is wide enough to fit two cars side by side, then it narrows between the houses (not wide enough for two cars) then gets wide again past the houses where we each have a two car garage. The neighbours park a minivan at the front of the driveway close to the sidewalk (leaving enough room to access the back), and claim that because they have a right of way they are allowed to leave the minivan there and we aren't allowed to park beside it because we would be blocking them from accessing the back of their property. Is this in fact how a right of way works? Because of the shape of the driveway it basically forces us to only park in the garage because parking anywhere else will prevent them from getting to the back of the property. That's fine now, but in the winter it might be an issue. Scott, Brantford Without a survey, sketch, or law degree, I have more questions than answers unfortunately, so please humour me while I think aloud for a bit: Your actual written "easement" is on paper down at the local Land Titles/Registry Office. If I had a secluded piece of farmland and I needed to cross your ranch to get to it, you'd grant me an easement and I'd compensate you for that in some way. I'm wondering what your easement says the owner of your lot is getting from the land-crossing neighbours. But back to the minivan. It sounds like it's an easement in their favour, on your land. That gives them the right to temporarily cross your property but only in the area outlined as an easement on your deed. How they get to the access point for the easement is their problem. If you came home and there were no cars parked in front of the houses, could you park in your driveway, on the UNshared part, and still leave them room to get around your car to get to the narrow shared section (easement) of the driveway? If so, then you would not have blocked their access to the easement. They will have blocked their own access to it by choosing to park the dreaded minivan there. If you can't park at the front without blocking their access, then you're going to have to park in the garage, unfortunately. I bought a cute house up north in a mining town. A moose-on-the-streets kind of place. We had pie shaped lots and whoever did the surveying for the construction was on drugs or something. My previous owners had erected a fence next to the driveway. They ran it almost out to the street, on their lot line, and it ran through the neighbour's driveway, cutting the neighbours off from their house and garage. They had enough room to pull their minivan off the road, then they would hit a fencepost. When I moved in, I pulled down enough of the fence that they could get to the house again. They were gratefull and shovelled the "shared" part of my driveway all winter. Being neighbours means more than living next to each other. Your's don't sound like such reasonable neighbours though. As I said, I don't have a law degree. You might have to hire a lawyer to find out what your options really are, or try your own luck with a judge in small claims court. Even better, maybe I've given you enough insight that you can see a way to negotiable a solution with the neighbours. Good luck! |
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If a home has central air and it is put in the offer to purchase that the air conditioner will not be sold with the house, can the central air be removed? Also is it law to have a house inspection done? Thanks, Barry, Pickering. As long as both the buyer and seller have agreed, in the offer/contract, that the air-conditioner is not included in the sale, the seller can take it. If you're the seller though, get your Realtor to get a verbal confirmation from the buyer that the a/c is being removed. Sometimes the wording in an offer is confusing and you and the buyer might have different interpretations of what the contract says. If the contract is ambiguous, it's a lot cheaper to get it sorted out now instead of in court after the closing. The furnace that stays behind must still function properly with the a/c equipment removed. You can't just rip out the a/c components and leave it up to the buyer to put the furnace back together. Aside from that, ya go for it. A lot of people confuse Home Inspectors with Building Inspectors. Building Inspectors work for the city or municipality and make sure that buildings comply with the fire and building codes and city bylaws. They can issue orders that are required by law to be completed. Home Inspectors are just guys (usually) who know a lot about houses and how they should be put together (like Mike Holmes.) They get paid by a buyer to inspect a house to see if there are expensive structural or mechanical problems that the buyer doesn't know about. They have no authority under any law, and there is no law saying that a buyer must have a home inspection done. When I started as a Realtor, 9 years ago, home inspectors were a novelty and maybe 1 in 10 buyers used one. Today they're an integral part of the transaction and probably 9 in 10 buyers use one. The old days of selling a house with problems to an unsuspecting buyer are over. If there's a problem that you think will turn up in a home inpection, you're better off just being upfront about it and pricing the house appropriately. At least that way, it will sell. |
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Can i buy a foreclosed home with a contigency to sell our home, without having to get a bridge loan and all my options- to get this dream home. Jon, Greensburg IN In my market area, my answer would be to forget it. In your market area though, you might be able to pull it off. Lenders in a foreclosure generally do not like to entertain any kind of conditions in an offer. They want it sold AS IS and with no questions asked. Obviously though, nobody would make an offer without making it conditional to being able to finance that particular house, or insure it. Lenders will accept offers with conditions, but they are loathe to do so. The answer to your question then depends on what the market conditions are like in Greensburg. Are houses selling fast, as in a seller's market? If so, the lender will assume that another buyer will come along if they turn your offer down. If you're experiencing the slump that is bringing prices down all over the USA, then you might be able to get a desparate lender to accept an offer conditional to you selling your existing house. If another offer comes in though, you will have to either waive your condition and possibly own two houses, or walk away and stay where you are. Do you know, and trust, any local Realtors who can tell you what the current market conditions are like there? You might even consider hiring one to act as your "buyer's agent" to ensure that your interests are protected as much as possible and that you get the house. Good luck with buying your dream home! It's always an exciting process. |
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A friend of mine bought a home (3 months ago) & has just found out that there's a huge problem with the crawl space that makes the structure of the house unsafe & the house unfit for living. There's an opening from the top of the basement wall to where the first floor starts. That opening was covered with chipboard that has completely disintegrated with rot & ants have been coming into the house from there. This opening stretch through half of the front of the house. Thus, more critically, the wooden structure that support the front half part of the house have started to rot & the vertical struts have started to buckle (twist) under the weight. On the exterior side, soil completely covers the outer wall of the basement & that's where the ants have their nests (!) plus the whole area is located UNDER the large concrete front steps and is therefore not directly accessible. It was the exterminator who came to fumigate the ants who detected the whole thing. The inspector in his report had indicated that he had not been able to inspect the crawl space owing to boxes that had been put in front of that particular wall. On inspection, one finds that the plastic vapour barrier had been cut before & repasted with a red tape. It certainly looks as if the previous owner knew about the problem. Genevieve, Ottawa It sounds like a real-estate nightmare, and a fairly expensive one. Your friend should definitely tell the whole story to a lawyer to see what kind of recourse there is. Your friend would, first, need to know what the entire repair is going to cost. Without knowing that, it's hard to decide if it's worth going to court. Here's why: The lawyer will likely advise you that the judge would probably not make the previous owner entirely responsible for the costs, even if you could prove that they knew of the problem and covered it up, which is a whole other issue. It's obvious, in retrospect, that your friend should not have signed off on the home inspection condition without having the home inspector come back after the boxes were moved by the owner. Did the Realtor recommend another inspection to your friend? If not, the Realtor might have some responsibility for the costs. If the Realtor did advise that, and your friend didn't take his advice, then your friend can't go after the Realtor. Lawyers and judges like to spread the blame around. The Home Inspector seems to have behaved properly, so they're off the hook. The Realtor might or might not be involved. Your friend definitely is responsible for buying the house without having the entire foundation inspected. The judge will likely say he is partly to blame for the situation and let him assume part of the costs of the repairs. Your friend has to figure out if the portion of the costs that he could get from the other parties is going to be more than the legal and court costs of getting the judgment. What will he be left with from the award after paying the lawyer? After talking to a lawyer, he might decide that it's not worth the costs, and the sleepless nights and years, to go to court. On the other hand, if the loss is catastrophic and running close to 6 figures, it might be well worth it. I guess that's kind of a longwinded way of saying I'm not sure what his legal options are and you should consult with a lawyer. Hopefully, though, my ramblings will help prepare you and your friend for the meetings that will be coming up. |
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I recently closed on the sale of my home and the Purchasers are complaining that we took the central vacuum unit and hose. Even though the CVAC was listed on the listing agreement I'm aware that is only advertising. The Purchaser's real estate agent did not include the CVAC in the agreement of purchase and sale. They were specific to include the garage door opener and two controls and the CAC with equipment but not the vacuum. I assumed since they did not include it AP&S it was mine to take. Can they sue me for it. Lisa, Toronto I'll get into the central vac issue in a minute but, to keep you out of trouble the next time you sell, let me first adjust your perception of the data sheet used with the listing agreement. It's not advertising. The data sheet is a part of the listing agreement, and a part of your contract with the MLS system. If you misrepresent something on that sheet, you're guilty of fraud. Back to the vacuum though. When a seller and buyer negotiate a sale, the Agreement of Purchase and Sale is supposed to spell out what they both agreed to do. If it doesn't do that, it's not a proper contract. The buyer's and seller's Realtors are responsible for ensuring that the agreement spells everything out in detail. Fixtures are things that are attached to the house with nails, screws or glue, and always stay with the house. Chattels are things that can be moved without removing hardware, and always go with the seller. In the pre-printed part of the offer, there's a place to specify which chattels are included, and which fixtures are not included. Many Realtors assume that everyone understands those definitions, and they only specify the exceptions in the deal that are obvious to them. Your buyer's Realtor was probably thinking, "They won't take the furnace, which is also attached to the house, so why would they take the central vac?" The central vac was a fixture and would have been included in the purchase price. The central vac has attachments though, which are not really fixtures. That makes them chattels. Can the seller take the hose and brushes? Not if the offer says that the price includes "all mechanical equipment/fixtures and attachments or associated equipment." If it just that all fixtures are included, and all chattels are excluded, except any specified, then it's anybody's guess who gets to keep the attachments. When there is equipment in the house that falls through the cracks like that, a good contract includes a clause that clarifies which chattels, or attachments to the fixtures, are included or excluded. When I'm the buyer's agent, I use a clause that covers everything from the interlocking brick stones in the driveway to the springy tube inside the toilet paper holder. (Everything in the clause has been the source of an I-thought/you-thought lawsuit somewhere in the past.) The clause is annoying to the sellers, but I've never had a seller or buyer tied up in a lawsuit over chattels. Before the closing, if your Realtor had known there was confusion over the central vac and attachments, you could have renegotiated the price and done an amendment that specified that the central vac was being removed for a lower price, or was staying for a higher price. The alternative to dealing with a discrepancy legally before the closing is for the seller and buyer to end up in court trying to get a judge to settle the dispute after the closing. Because the Realtors are partly responsible for the mess, the buyer will likely also involve the Realtors in any legal action. Judges like to spread the blame around. They would likely make you and the Realtors each pay a share of the award, and make the buyer assume part of the vac costs too, for not discussing the central vac with their Realtor at the time of the offer if they really wanted it. Whether or not they sue will depend on how much it will cost them to replace the central vac, compared to the costs of taking you to court and possibly winning an award for half of the value of the central vac. If they can do it in small claims court on their own, you'd better start thinking up a good story for the judge. If they need a lawyer, they'll probably decide that it's not worth it. Next time be honest! One way or another, buyers always find out they've been screwed over and they always want revenge. |
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My wife and I are currently living in her house and want to sell to purchase a bigger home. My questions is with the quick claim deed, when my wife and her previous husband divorced all the paperwork was signed for him to quick claim the house to her, upon trying to sell the house his name is still on the deed with the town records. I guess my question is which lawyer is responsible for filing the paperwork with the city? As it stands now we cannot sell the house without his signature which really is a problem since he does not live in this country anymore. Do we have any legal recourse to hold the lawyer responsible? Steve, Bristol CT You have that whole escrow process in the USA and I'm not entirely sure how it affects changing the names on a deed in a divorce. If it does, that might be slowing down the removal of the ex's name from the deed. I suspect though that, during the divorce process, somebody forgot to do something that would have removed his name from the deed. If that's the case, it seems logical that his instruction and authority to remove his name from the deed (the quitclaim deed) is still on file somewhere at the office of the attorney that represented him during the divorce. You wouldn't have to find him again now to get anything signed if it was someone's oversight back then. Then again, I'm just guessing since I'm a Realtor, not an attorney, and not even a Realtor in your country. The only thing I can say definitively is that you should contact a local attorney, preferably the one who handled your wife's side of the divorce, to get answers to your questions. Please get back to me with an update when it's all sorted out? You can educate me so I can provide better advice to the next guy! |
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I bought a house in Lindsay, Ontario 2 years ago. I was told by the owner (who lived there for 11 years) at that time there was one line of Knob and tube only. His brother's and him did alot of work on the house from setting up a shop in the basement to finishing the attic. He told this to his agents and my Real Estate Agent, it was verbal. Now I have just sold the house and had to get the whole house rewired after a home inspection, to my surprise there was more knob and tube then what was stated. My agent called the previous owner and he said that the second floor was all knob and tube. If I had known that the whole second floor was knob and tube I would not have purchased the property in the first place. I have replaced the knob and tube through the whole house basement to attic. Is there any recorse I can take? Or is it buyer beware. My agent is saying nothing was in writing which I understand but he gave false information to the agents in the first place. Lisa, Toronto To a certain extent, it is buyer beware. A prudent buyer keeps gathering written advice from the experts around them so that the blame gets spread around if things go wrong. When everything is 'verbal' it becomes a he-said-she-said battle for anyone on the outside looking in and trying to figure out who really did what. If there was written evidence of an instruction to your Realtor that you wouldn't buy a house with knob and tube wiring (in your Buyer Agency Agreement for example) you could try to make the Realtor partly responsible for the costs of replacing the old wiring. If you had a Home Inspection Report that said there was no evidence of knob and tube wiring, you could try to make the home inspector partly responsible. If the seller signed an offer warranting that there was no knob and tube wiring, or that it was limited to a specified circuit, you could try to make the seller responsible for replacing it. If the Kawartha Lakes Real Estate Board requires that sellers fill out a Seller Property Disclosure Statement, and your seller refused, you could try to make the seller responsible. I keep saying "try" because you still have to get your evidence before a sympathetic judge who believes your side of the story and is willing to make the other guys pay to fix your problem. Judges like to spread the blame around, unfortunately, instead of making one party entirely responsible for messes that end up in lawsuits. That's where the 'buyer beware' part comes in. The judge's first question will likely be, if knob and tube wiring was such an issue for you, what steps did you take to ensure that there wasn't any? For many of the steps that I mentioned earlier, you would have been relying on your Realtor to tell you that they existed and that you should consider them (property criteria in your Buyer Agency Agreement, getting a Home Inspection, wiring warranty, asking for a SPIS.) You won't get any financial awards from filing a complaint about your Realtor, but if you think your Realtor misadvised you, you could get them in trouble by filing a complaint with the KLREBoard or RECO Whether or not it's worth going to court over really depends on the cost of the rewiring job compared to the total cost of going to court, minus whatever kind of partial judgement a judge would give you. I'm not a lawyer and you shouldn't choose any action or inaction based on my comments. It's something you should discuss with a lawyer to determine what your options really are. If it's a small enough lawsuit to be eligible for small-claims court, it might be worth your time. If it's too large and requires a lawyer and a full civil suit, it might not be justified financially. It depends on the invoices you racked up and your lawyer's advice. I'm sorry that you had such a bad experience doing a good thing. I hope you can get some kind of satisfaction for your frustration and expense! |
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My husband and I have a condo in Belleville, Ontario. We rent it out for 750.00 a month, with the renters paying their own heat and hydro. There was no lease signed when they started renting in Feb of 2006, or was last months rent given. Now the renters are continuously late paying their rent. We listed the unit for sale. When we do sell it what is our requirement to them. Do we have to give them two months notice? Can we give then 1 months notice? Can we go for the last months rent to get them out, and let them use the money to rent a new place.Rosanne When you sell a house or condo with a tenant in it, the tenant goes with the property. The new buyers have to then go through the process of converting the house to "owner occupancy" and give the tenant several months to get out. You can't boot a tenant out just because you want to sell the house. That would be a perfect world! You're lucky though...in a twisted way...because your tenant has been consistently late with the rent. The law allows you to evict them for being late, but there is a process to be followed to do that. You're better off trying to get the tenant out for being consistently late with the rent than trying to get them out as part of the process of selling the property. The Tenancy laws keep changing, and I don't do property management as part of my daily activities, so I'm not an expert on rental properties. You can get better advice by contacting the Landlord Help Centre or by getting advice from a Lawyer who is conversant with the tenancy laws in Ontario. |
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My wife and I recently bought a home (before listing and selling ours). Our home is on the market now, but we have had no offers. We were approved for the financing, but all of my equity is tied into my existing home. I am worried I won't be able to sell before the closing date. What happens if we do not sell by that date. We really want the new house, and hope we can sell in time. In case we don't what can we do?/ What will we be liable for??? Vince in Vaughan If an offer on a house contains a clause making it conditonal to the sale of an existing house, then the buyer is off the hook if their house doesn't sell. From your worry, I assume your offer didn't use that clause. (People who use it usually end up with less money in their pocket though, so you might still come out on top for not making your purchase conditional to a sale.) I don't want you to be sleepless over the long weekend, so I'm not going to tell you what would happen if you aren't able to complete the transaction. Instead, I'll be positive and focus on getting your house sold! I just did a search on the Toronto MLS system of recent activity in your area. Over the last 15 days, 92 sellers in Vaughan have sold their houses. Buyers are obviously still buying houses there, they're just not buying your house. So why not? When a house doesn't sell, it's because the price does not match up with what the buyers ("the market") think the lot, location and structure are worth. If it is priced properly and represented well, a house should sell in the first week. If buyers are coming to see it but are not making offers, it's most likely moderately overpriced. If no buyers are even coming to look at it, then it's grossly overpriced. I recommend that you call your Realtor. Tell them that you want to do a price reduction and that you want the price reduced to the point where the house will sell immediately. If you don't trust them to tell you what that price should be, get them to arrange appointments for all of the houses that are similar to yours and in the price ranges lower than your current asking price. Remember though, those houses haven't sold either. The buyers who are going to come to look at your house will also be touring those houses. Your objective is to price your house so that it looks like a good deal when they come to see it. Check your ego at the door. It doesn't matter if your family and friends find out that Bob down the street has his house priced higher than yours. If your house looks cheap compared to Bob's house, you'll be in your new house next year and Bob will still have a For Sale sign on his lawn. Also forget about how much you're spent on the house, or how much better it's built than Bob's house. The buyers don't care about the heavy duty nails. They don't care that you just spent $5,000 on a new furnace. What they care about is the kind of house they can get for the same amount of money. By finding out what your competition is like, you can price your house to pull in the buyers. Don't worry about underpricing it. An underpriced house always sells for its market value because the buyers recognize that it's underpriced, they start fighting over it, and in the end it sells for what it's really worth rather than the low asking price. Get your price reduced and you will sell your house. |
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My wife and I just moved into our new house and have found that the previous owners have left everything behind. We were informed they were coming to get it the day after we moved and that never happened. We were then told that they would make arrangements the next day and again, that never happened. How long must we keep there possessions before we can discard them? Mike, Oshawa My understanding is that, as long as your offer used the term "vacant possession" (the standard OREA forms do,) then anything left in the house is considered to be your property. You can keep it or trash it and you don't have to hang onto it for the sellers. I'd recommend that you discuss the situation with the lawyer who handled your side of the transaction. They can confirm whether or not what I just said is true with your offer, plus they tell you if there is any recourse for the expense you incur taking the seller's stuff to the dump. I'm sure it's not the first time it's happened. There must be some kind of common protocol for dealing with a situation like yours. Congratulations on finding your new home! I'm sorry that your move-in and the long weekend were spoiled by the obstacles the sellers left behind. It should have been a happy experience and instead you've probably been lying awake all weekend stewing over it. It will get better! Trust me. |
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My mother in law is dying and has a reverse mortgage on her home. She wants my husband and i to purchase the home after she passes which will be soon. How do we go about doing this? She states the house mortgage at this point in time is $105,500. Neither my husband or I have a good credit standing. Beth, Portland. First let me offer my condolences on her illness. Luckily though, she's still well enough to be able to discuss her wishes for her assets. There are so many variables in her circumstances, and your financial position (now and after you inherit all or part of her assets) that you need professional advice from someone who can do more of an investigation. You need to know what is in the contract that she signed to get the reverse-mortgage. What does it say must happen to the house if she dies? Can she leave it to her family, or does it have to be sold. Is the mortgage company willing to co-operate by granting you a mortgage, or do they only do reverse-mortgages? Even if she can leave it to you, someone has to pay back the money that she borrowed. If the house is worth $200,000, the money might have to come from the sale of the house to someone else. If it's worth a million dollars, there should be enough equity left in the house that you can borrow enough to keep the house. After you find out what your options are under the terms of the reverse-mortgage, you then need to bring in an attorney to talk to your mother. Should she will it to you, if she can, or should she sell it to you before she dies? There are so many scenarios that only a local attorney, and maybe a tax accountant if it's a large estate or if your own finances are complicated, can give any kind of usefull advice in enough time to get things organized before she dies. It's a big job, I know. Doing the work now though will be a lot easier than trying to deal with it later when you're also dealing with your grief after she dies. |
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My common law has up and moved leaving the province and i have no idea how to reach him, he will not return my emails and his family will not tell me where he is, i can't even sell the house unless i have his approval, both our names are on the mortage. what are my legal rights? Diane, NFL It's more or a family-law issue than a real-estate issue. The house is just a part of the co-owned assets that you have to figure out what to do with. Who gets what part of it all? That's something that would be settled in a divorce separation agreement. Even though you weren't married, the divorce laws still affect you, and him. He can't buy another house unless he has a final separation agreement with you. He hasn't realized that yet, but eventually he will, and turn up at your door with a divorce lawyer in tow. If you have to sell before that happens, I suspect that there are provisions in the divorce laws that allow you to sell the house and keep his portion in trust for when he does show up. I really don't know though, I'm just guessing. Realtors aren't usually involved with divorcing couples unless they are both willing to sign the papers to sell the house. In any other situation, the lawyers work everything out. I'd suggest that you contact a family law lawyer there and set up an appointment for a consulation. They can give you an answer specific to your situation with respect to your provinces divorce laws. |
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I put an offer for a property with a 5000.00 dollars deposit on 18 of september 2007 also get the house inspected at our cost.there was some minor repairs also i asked for proof of the new roof repair that was done in 2004 .its been 9 days now and our real estate rep hasnot got back to us whether the offer is good or not neither if they will fix or comply with my request for proof on roof.our rep been telling us he cant get hold of sellers rep.right now we think that we are getting screwed and we want our deposit back so we can look elsewhere(we do have a contract with our rep )please advise .we are nearly out of our mind right now. B. Brampton When we put conditions in an offer, the clause has to have a date when it will run out in order for the contract to be valid. Your home inspection clause should have had a date when the deal would collapse if you didn't send a "notice of fulfillment." Nine days is a long time to allow for the home inspection, so I'm wondering if you are already legally out of the deal. You should have a copy of the offer that you're talking about. Please read it over and find the home inspection clause in Schedule A. If the date in it has already passed, you are already legally out of the deal and should be getting your deposit back. If it's later than today, the Realtors should be trying to keep the deal together and should be talking to each other, and to you and the seller, to keep it together. |
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My husband and I are looking to purchase a home from his brother, the house was inherited by all of them but his brother bought everyone out and refinanced and gave each a small portion. Now my brother-in-law is splitting with wife and wants to sell home to us to get out of it. We have come to find out the home has been re-financed twice, they owe around $89,000. His wife has filed a chp 13 bankruptcy which includes the house. But they are really pressing the issue of having us buy the home, but we don't know if it would be good for us and our future. Also the house needs some work done to. Kawawn, Nashville If you did try to do a private deal, I'm not sure if you could even transfer the title if it's involved in a chapter 13 bankruptcy. There is probably some kind of lien on the deed from the creditors. I'm a Realtor, which makes me an expert at selling and buying houses. I think you need some legal advice, to figure out what your situation really is there. Please consult with an attorney to find out what your responsibilites are towards the house as it stands now. There are tons of houses in the USA selling at bargain prices right now. It's a buyer's market, which means you can pick the property that is best for you and hold out for the best price. You don't need to buy from family in that kind of a market to get the best deal for yourself. If a family member is trying to get you to buy, the benefit from the deal isn't going to be to you. It's going to be to the family member. Don't do it. |
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If u assume a mortgage in alberta and it goes into default before the first year of payments who is resposible for the balance owing upon point of sale. the original person that took out a brand new loan or the person that assumed the mortgage. Richard, Calgary Back in the day, when it was hard to sell a house, sellers would be willing to "transfer" their mortgage to the buyers as a way to help get the house sold. When the markets crashed in the early 1990's, many sellers found out, the hard way, that they were still responsible for the mortgage. That's why assumable mortgages are as rare today as Elvis sightings. Even though the buyer assumes responsibility for the mortgage payments, the original borrower is ultimately still liable to the bank for any money owing if the mortgage goes into default. Are you on the buying end and assuming a mortgage or on the selling end and considering letting a buyer assume yours? |
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My husbands parents gave us their house and put our names on the deed to their property, with them having just living interest. My husbands dad died ten years ago and my mother in law is unable to care for herself so she is in the hospital awaiting for an opening in a nursing home. We had a mortgage out in the past which is now paid off. Because their names were on the mortgage they had to sign too. My concern is she has her mental capacity right now, there is no power of attorney, if we wanted to take equity out in the house a couple of years down the road I can't see how we will be able to do it, as she still has living interest on the deed. If her mental capacity has goes down hill. What recourse do we have? Can she sign something at land registry to take her name off the deed before we get to that point. Its inevitable. Thankyou so much for your help. Debbie, New Brunswick Most people don't know about or understand life interests. That your inlaws did is encouraging. They might have also made provisions in their wills for a "living will" that outlines what you can do if they are mentally impaired. A bright lawyer might have forseen the circumstances that you're worried about and have made provisions in the will, or on the deed, for you to assume control of the land and title. Is the lawyer that set up the life interest still around? He or another lawyer can advise you on your legal options, and how to take steps now, while your mother-in-law can still co-operate, to proactively deal with any future disability she has. I can't because it's not my area of expertise. Finally, my condolences on the loss of your father-in-law and the decline in your mother-in-law's health. I'm at the same stage with my own parents. Us babyboomers are all either dealing with it, or dreading having to deal with it I guess. Maybe this is when we all finally grow up, leave the flowerchild from Woodstock stuff behind, and realize we're just old! |
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What is the difference between a collateral loand and a mortage? Deb, Huntsville Most people think they're buying a building when they buy a house. What they are really buying is the land under the house. That land has four corners and they are defined by a metes and bounds description somewhere on paper. They're sort of the same co-ordinates that your GPS locator uses to figure out where you are when you're in your car. Hours and minutes north and south, latitude and longitude and all that. Mortages are used to back loans when the borrower is putting up a piece of land with those land-based co-ordinates to back up the loan. When the borrower doesn't have land to use as equity, they can use other stuff that they own to back up the loan. The bank is basically looking for stuff that they can take, and sell, to recover the money they lent out if the borrower doesn't make the loan payments. "Collateral" is stuff that isn't nailed to the ground by a GPS description. If your car is paid off, you can use it's full resale value as collateral to back up a loan. If your expensive European stereo has a lien against it because you financed it through the store, it's collateral value is it's resale value minus what you still owe on the loan. You can use your share of the ownership of many assets to back up a collateral loan. The collateral loan isn't as guaranteed as a mortgage, so you're going to pay more for it. Are you buying a mobile home? It's when a collateral mortgage usually comes up. If you're buying on leased land, you can often pay more than it's really worth. If so, let me know. |
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Our real estate listing has expired...how long do we have to wait to sell privately? Grace, Comber, Ont You could technically sell privately tomorrow, but you'd have to be able to prove that the buyer didn't know anything about your house being for sale before the listing expired. If the buyer just got off the plane from some foreign country, you'd be safe. For any other buyers, the listing Broker could easily make the claim that it was their marketing activities that got you an offer from the private buyer, and that they were entitled to their commission. In your listing contract, there is a "holdover" clause that specifies how long after the listing expires that you still owe your Broker a commission. It's usually 60 days or 90 days, depending on which real-estate board your Broker is on. That sounds like a long time, but the lawyers usually want 6 or 7 weeks to search the title and do their other stuff before the house changes hands. That eats up 42 - 49 days in a typical transaction. If your buyer is willing to wait 10 days more before you firm up on the offer (assuming a 60 day holdover) it's not so much of an issue to wait for the holdover to expire. That's my generic answer though. I haven't seen your listing contract with your Broker so I'm obligated to recommend that you spend 10 minutes with your lawyer to find out what your options really are in your listing contract. You'll already be spending tons of time with your lawyer if you're negotiating a deal privately, so it's not that much more in legal fees to get the answer. |
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We just built a home. We're not in yet. Builder said we were going to get a "walk-out basement." Nothing to the contrary showed on blue prints without being advised. No diagrams etc We have a stairwell with stairs up to the ground level. I call it a cement pit. Builder says their definition of a basement walk-out is what we got, but it's a walk up, costing me $100000!! That's not what I wanted. What recource to I have? Bev, London. (Hi Bev. Your email address didn't work so I'm posting my response here instead of emailing it.) I'm not sure what good it will do, aside from making you feel better, but I'll confirm that yes you do have a walk up basement, not a walk out basement. The local fire marshall might be able to offer some support if you get into court over the same question. They understand the definition the way you and I do, and have some authority that a judge would not question. The judge will be more interested though in what you agreed to accept in your Agreement of Purchase and Sale. The words that worried me were "their definition." That suggests that there is something somewhere, either in your agreement, or referred to in, or attached to your agreement (wow I sound like a lawyer except I didn't say notwithstanding) where they said a walkout was really a walk up. Before you involve some expensive legal help, ask them to show you where your contract says that you were buying a walkup with a description that sounds like what you actually ended up with. If they can, there's isn't a lot that you can do. If they can't, you're either going to put a lawyer's kid through college with your legal fees, or negotiate an out of court settlement with them so they build you another house for the same price with a walk out, or get a rebate on your house. When you go to see the builder in that case, take that fire marshall with you. |
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I own a 2 family house i rented it out for a few years inow live in it for 6 months can i sell it put all of my profit into a new house for myself or will i get hit heavy on taxes ? or how can i find out? Eddie, New Jersey I had to do some research to find out what the tax laws are like in your county. What I discovered was: the tax laws in the USA are just as convoluted and confusing as the tax laws in Canada! If you lived in a single family home and sold it, there would be no Capital Gains Tax (CGT) on it. If you have a rental home, there usually is CGT on it, but there are exceptions. Sometimes, even an owner-occupied home has CGT on it, but there are exceptions to that exception too. After all of that, I concluded that the real purpose of the tax laws is to ensure that there will always be jobs for the bureaucrats who make the decisions about who qualifies and who doesn't! I'm obligated to recommend that you meet with a tax accountant in your state to get a legitimate answer to your question. The income from the second residence is what really pushes it over the top. I bet even the bureaucrats will have to have several meetings over that one! |
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My son and husband co own as house.. My husband and son both on title and my husband co-signer for the morgage..Now my husband wants off as promised by my son for over a year..My husband and i have no real equity in the home but my son ownes us money and we would like to know if we can force the sale of the house and just get back what he owes us..thks Anna, BC I always encourage people to treat co-ownership of a house as if it was a business. There should be a contract that explains what each side will do if everything goes well, and what each side will do if things go wrong. If you had such a written agreement, you would now be initiating whatever process is described in that agreement if one side wants to sell the house. I suspect that, because it's family, you don't have a written "partnership" agreement. The only options that you have, to force a sale now, are going to involve the courts and lawyers, and money. Your money. Lots of money. But the money isn't the biggest loss you will suffer. Imagine that it's 5 years from now. You're sitting at home at Christmas (or your own religion's big night) dinner, and your son isn't there. You haven't spoken to him for years, in fact, because of all that legal trouble with the house. The hell of it is, he's still in the house and you're still out the money. The only happy ones are the lawyers. Was it worth it? Most litigation lawyers would be out of work if people just talked to each other. If the money that he owes you is causing you a financial hardship, you need to communicate that to him. If it's not really a hardship, but more of an ego thing, you also need to communicate that. Whatever the situation is, you need to talk about it. He might have the ability to pay you back, but I suspect that's he's having some financial troubles of his own. If he was ...excuse me... a little prick, you wouldn't have backed him on the mortgage and helped him buy the house. He's probably a good kid with generous parents who were willing to help him get his own place, but he got in over his head. He's living in a different and much more expensive world that you or I did when we bought our first house. So I guess my answer is a question: Can you and your son talk about what's going on, in each of your worlds, and come up with a plan to get you off the mortgage, and you off his back? It's going to be a lot cheaper than forcing a solution on him. Was that helpfull? Please let me know if my advice helped resolve the situation. |
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A friend recently made an offer to purchase a home... (Abbreviated) ...He thought he had purchased a home until the day he went to move he was told he didn't own a home because a lien holder was rejecting the sale of the property. Originally, he was told by his lawyer that a mortgage was showing on the house for $100,00 and the city had a registered lien for outstanding taxes and water services. At the time he was informed the taxes and lien holder would be paid by the monies that were being held in trust from the sale of the home. The day he was suppose to take possession he found out that the seller had re-mortgaged his assets six months earlier and the $100,000 that was registered as a loan was no longer owing, but rather as a result of the refinancing the seller owed a different finance company $183,000 that was a result of upgrades to several different properties. The company that refinanced the seller never dissolved the original $100,000 lien and failed to register a lien on the property until after the sale agreement. In fact, the lien was not registered until the day after he was to take possession of the home. These actions abandoned the deed transfer. Everybody involved appears to be at a loss and the realtors and lawyers are all saying they have never seen this before. He can't determine who could possibly be at fault , or even what to do next. The only response from lawyers is you better find a place to live. Here he stands homeless, a truck load of boxes and furniture. A house that is equipped with utilities in his name that now apparently he doesn't own. His first project was to gut the kitchen where he already spent thousands with contractors to start renovations. This situation certainly has taken the fun out of being a first time home owner. Do you have any suggestions on where to turn under these circumstances. Heather, Halifax The small print in the offer says that the seller will deliver the title "free and clear" so, if that can't happen, there is no sale unfortunately. It sounds like your friend found an unusual case of mortgage fraud. (It happens all the time and it's costing the rest of us a lot of money. It's like shoplifting. The other shoppers have to pay for the stuff the shoplifters steal, otherwise the store goes out of business. Us honest people are paying more for our mortgages to cover the losses at the bank from fraudulent mortgagers.) If the lawyers have looked at what has happened and are scratching their heads, that's a bad sign. It's pretty much a sure thing that he's not moving into that house. He could try, in court, to recover the money that he spent on the renovations, although I'm not sure what you meant. Was it a deposit that he paid for a job on a house that he didn't own yet? OK there's another lesson for homebuyers! Whether or not he gets his money back depends on the seller's financial position. You can sue and win and never get your money. There might be a local Realtor who has short-term rentals. Your friend could rent a place and unload those boxes until he gets his money back and can then find another house to buy. It's a mess for sure! That's the best I can come up with for now. Please let me know how it develops. Maybe I can see a solution where others can't! |
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We sold our house on december 10th...buyer knows that we have water coming in basement which is partially not finish the house is about 100 years old..but we had someone look at the foundation and he made us an estimate which will cost about $23000 thousand to repair..my agent told me not to tell guy what should we do...he has only to the 17 december to have house inspect which he should be doing tomorrow...should we tell them and show them estimate If your Realtor told you to disclose that the basement leaked, when a buyer might not have known, then you have a good Realtor and can trust their advice. If there's a little river of water, it was pretty obvious to the buyers already I guess. If a fault is obvious, like the little river, you don't have to point it out. If it only leaks now and then, you DO have to have proof that you told the buyers about it, to keep from getting sued. If they use a Seller Property Information Statement in your area, and yours is attached to the offer and says that the basement is wet, that's all you have to have. You said that your buyer knows that it's a wet basement, so it's up to them to figure out how much it will cost to fix it, and then decide if they can afford to buy the house and make the repairs. However, you can use your estimate to your advantage. After the home inspection, if the buyers come back and say they have an estimate of $100,000 to fix the leak, you can pull out your estimate and say "Um, no. It will cost $23,000." Even then, it's not like buying a dented fridge at Sears. They don't get to subtract the cost of the repairs from your For Sale price. There are no perfect 100 year old houses. They all have faults. If you have priced your house properly, your house is for sale for the same price as typical properties with similar faults in your area. Your best resource isn't a renovation contractor. It's a local appraiser. With a property as unique as yours, you have to find out what the bank's appraiser will say it's worth. Instead of a renovator/contractor, I'd bring in an appraiser to find out what the real market value of the property is. Maybe all of the basement in your neighbourhood have little rivers in their basement, and you don't have to settle for less to get it sold! The local appraiser is your best friend and can get you the most for your house. |
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Is the holdover period in a listing agreement negotiable? Looking over a couple of old listing agreements we see one at 120 days and one at 90 days. We also read an opinion by a real estate lawyer that anything over 30 days was excessive. Do you have any information on this? Jean, somewhere in Ontario They vary in different locations, depending on what the local real-estate board has on their pre-printed contracts. The conventional wisdom is that they are set by the real-estate board, but they are not. Some boards, and the Ontario Real Estate Association, have started using "____ days" on their forms. So, yes, they are negotiable, just like any aspect of the listing contract. As in negotiating any aspect of any contract, the Realtor's first question should be "What is it about a 60 day holdover that is a problem for you?" The holdover clause doesn't say you can't sell your house privately. It only says that you can't sell to someone who became aware of the property because of the Realtor's efforts. If you sell privately to a buyer who just off the boat from Sweden or who wasn't looking at houses when yours was listed, then you don't owe the listing Realtor a commission. The holdover period only matters if you plan to screw the Realtor out of the money they deserve by selling privately to someone they're going to promote your property to. The holdover period is negotiable, but it never comes up because it's pretty hard to explain why you want to negotiate it. |
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I am in the process of buying a home and I am needing a co-signer. My mom stated she would co-sign and has very good credit A-1. My question is can she be a co-signer even though she doesn't have a job. I have the income and she has the credit. Takiyah, Greenville, NC I had to take a day or two to do some research to get an answer for someone living in the USA. The answer has two "it depends." It depends on how much of an investigation your lender does on their cosigners. Lenders do a credit check on the borrower, but how heavily they investigate the cosigner varies from lender to lender in the USA. It also depends on how rich your mom is. If your mother has no income, and owns no property, she might not be able to cosign. If she owns a house that is paid off though, she has assets that the bank can seize if you default on your payments. Then she would be able to cosign. But that means if you don't make your payments, they'll take whatever your mother owns, sell it, and pay off the mortgage that you failed to pay. You both need to understand the burden she is assuming when she takes on the role of a cosigner. Good luck with your new home! You're buying at the right time in the market. It might go down in value a bit more, but over the long term, you'll make money. |
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I bought a house last week. The sellers have 14 days to get their belongings out. Do I own the house? I have a key. Can I go into the house and begin a painting project? I have insurance on the new home, the utilities have been switched over to me also. Donna, Donalsonville, GA It's unusual for a seller to be able to store their stuff in a house after they sell it. Usually, the buyer gets to keep whatever is left in the house when they get the keys. The offer says "vacant possession." There might have been some clause in your offer that said your sellers could do that though. Anyway, if you got the keys and were able to insure the property, then you own it. You can't do those two things unless you are the legal owner. What else you can do depends on your contract with the seller though. Since you might have had a wierd purchase agreement, it might say something about when you can go into the house. It might say that their stuff can stay in and you can't go into the house for 14 days. You have to get someone to read your Agreement of Purchase and Sale to find out what you can and cannot do. Even if you can't go in, it's only 2 weeks. You'll soon be in your new home. Congratulations! |
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Dear Bill, I am going to sell my house by myself. I plan to get a comparative market analysis from 2 realators and then ask about $10,000 less, in attempt to split the saving from the realator's commission between myself and the buyer. The house is about 50 yards from the ocean and has a great view, which some buyers may find desirable and underestimated in value by the market analysis. If I add the words, "or best offer" to my asking price, will it allow me to delay accepting an offer that meets my asking price? For example, if I ask $100,000 and get 3 offers for $100,000 on the first day, can I delay a week to see if I get a "best offer", which is more than my asking price? I want to avoid asking a very high price to start with, which may discourage buyers from viewing the house, but on the other hand I don't want to give it away because I misgauged what the house was worth because of the ocean view. Do you have any advice??? thanks Len, Kodiak Alaska Thank you for waiting so long for an answer to your questions about selling your Alaskan property privately. It struck a cord with me because I had a similar property in northern Canada. When I needed to sell it quickly, because of a restructuring at work, I had just graduated as a Realtor, but I wasn't licenced yet. Even with all of that knowledge, I didn't consider selling it privately because I knew that I needed the MLS system to bring in the buyers. I'm not sure what your motivation is in selling privately. A good Realtor can put more money in your pocket after it's sold than you can by selling privately. Perhaps, if you fill me in on what your objections to using a Realtor are, I can help you understand how they manipulate your local market and other Realtors to get you more money. If you do choose the For Sale By Owner route, you shouldn't use a Realtor's free market valuation to pick your price. You'll need to hire a local real-estate Appraiser instead ($300-400 most likely.) The Appraiser will factor the ocean view into the price. More importantly, they are the same professionals that the banks hire to value the house before they approve a mortgage. You'll know if a buyer can actually get it mortgaged at your price. Your private buyer should also hire their own Appraiser to value the house. They should have their own professional opinion of what it's really worth before making an offer and going through all of the hurdles in applying for a mortgage on it. You will also both have to hire attorneys to draft, read, approve and coach at every step of the offer process. Realtors do all of that, and more, as part of their service. Now, as for the asking price; honest buyers who buy privately are looking for a deal. Why else would they pass up the free services of a Buyer-Agent Realtor and give up access to all of the houses listed on the MLS system? They are buying privately so they can get the house for the fair market value MINUS the commission that you would pay if you sold using a Realtor on the MLS system. Whatever you price your house at, they're going to subtract the average real-estate commissions in your area from your price, and then subtract some more so you can negotiate them up to what they want to pay for it. To set your asking price, add that commission to whatever you really want for the house, then let them negotiate you down to your real price. Now for the best-offer thing; the short answer is, no. When a buyer submits an offer to you it will say, for example, that you have until 8 o'clock tomorrow night to accept my offer of X dollars and a closing date of X date. If you accept that offer, you now have a legal binding contract with that buyer. You can't disolve the contract just because another with a better offer shows up later on. If you don't accept the offer, but send a counter-offer instead, you're locked into that counter-offer until they either re-counter-offer or let your offer expire. If they accept it, you're locked in. If they reject your counter-offer and send it back with their own changes, then you're free to accept or reject it. At that stage, if another buyer has shown up with a better offer, you can deal with a "best offer" buyer who has just shown up. To summarize, you are only free to accept other offers when offers are coming towards you. If you've sent offers back as counter-offers, you are locked into what you have offered. However, if you're locked in at any stage, you can still accept and negotiate offers from other buyers, but their offer has to have a clause saying that the offer is conditional to you being released from any existing purchase agreements. Many people have trouble understanding the whole offer process. Unless you understand it well enough to explain it to other sellers, you need to have a professional leading you through it. That can be a Realtor, at a fixed price, or an attorney who charges by the minute. I know I sound like the typical self-serving Realtor by saying you should use one, but I say it because it's in your best interest, not mine. It's a mine-field, selling privately. Money laundering, fraud, mortgage fraud. The potential danger massively outweighs the costs of paying a Realtor to get a better price. What is it about using a Realtor that you object to? |
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How do I get a list of foreclosure or judicial homes for sale?? I've been in touch with a couple of realestate agents here in calgary alberta. They send me listings but none that reveal that they are foreclosures or emergency sales. Is there any agent or bank contact that would be willing to send me such material?? thanks Lin, Calgary There are several reports that we can send out to clients. Only the most detailed one includes the mortgage information. Most Realtors wouldn't send that report to someone who wasn't a client. If you call the Realtors and ask them, they'll likely tell you that the listings they sent to you were power of sale or foreclosure listings. It's an easy search on the MLS system for us. For your information, if you're looking for a bargain, look for a foreclosure, not a power of sale. In a foreclosure the bank can sell the house for whatever it wants. In a power of sale, they have to sell it at it's fair market value or the owner can sue for the difference. Unfortunately, most banks use the power of sale process because it's faster and cheaper for them. You'll have a hard time finding a foreclosure. As for tax sales and judicial sales, you could make enquiries at city hall, and the provincial courthouse. I'm honestly not sure what kind of response you'll get. It might be a big secret under the Privacy Act, or there might be a list on a bulletin board in the front lobby. Please let me know what kind of information you get there. With tax sales and judicial sales, I'd have some serious concerns about what the property was used for, and the kind of people who lived there. Grow houses are an obvious concern in a judicial sale; they're unliveable and worthless. The majority of home invasions are a case of mistaken identity; the invaders are looking to collect from the people who used to live there, and break in on the new tenants/owners. A big part of my job is to protect my clients from things that could go wrong. I don't mean to discourage you from your quest for a distressed property. Your bargain property could be out there. Just be aware that, for your protection, you should not buy just any distressed property. |
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My daughter, her husband their 2 year old daughter own a beautiful large trailer in Hanmer. They are growing out of it, as he also has 2 teenage boys on visitation. Anyhow, they want to buy a larger home but have bad credit from a long while ago. she is on ODSP and he doesnt have a job. I cant co-sign. but want to help them. I can vouch for them being, very responsible. Is their any way they can buy a larger home? Are their people who hold the morgage? Thank you. Lynda, Sudbury Just as there are Real Estate Brokers to help you find a house, and Insurance Brokers to help you shop your insurance around, there are now Mortgage Brokers to help you find a mortgage. The lender pays their fees so, usually, it's free for the borrower to use them. I've seen buyers get turned down by a bank, then get accepted by the same bank when they apply through a Mortgage Broker. Even if your kids' mortgage is too risky for a bank, the Mortgage Brokers have private lenders who are willing to take them on. The more risks they take on, the more they expect to get in return, as with all investments. The bottom line is, there is someone out there willing to lend your kids money. You have to decide if what it will cost is worth the gain in space and happiness. It likely is. I did a quick internet search for Mortgage Brokers in Sudbury. There's a Mortgage Alliance office there, and they're a good place to start. You could also try the Yellow Pages under Mortgages to find others and get other opinions. If your kids make the calls they could soon be putting a For Sale sign on the Hanmer mobile home! |
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My real estate agent contract expired 31-jan 08. In my contract is said after it expires 30 days period if someone comes to buy the house my realitor will be able to claim the commission. Please give me add vice. After the 30 days can I sell my house with out paying the commisson. Marie, Virginia Even Realtors are confused by the "hold-over" clause. Its purpose is to protect the Realtors if someone comes through your house with an agent while it's listed, then waits until the listing expires and comes back and does a private deal with you with the intention of cutting the Realtors out of their commission. The clause says that, in that 30 day period, if you sell to someone who became aware that your house was for sale because of your Realtor's marketing activities, then you owe the Realtor a commission. If you are trying to sell it privately now, and your buyer had no clue that it was listed with a Realtor before, then you don't owe the Realtor a commission. If you have listed it again with a different Realtor, and it sells during the 30 days, you don't owe the first Realtor a commission. That's my Canadian answer. Your contracts in Virginia might be worded differently, but it's unlikely. If you have a private buyer with an offer, it would be prudent to have your real estate attorney look at the expired listing contract and advise you on your options. If you're relisting with a new Realtor, don't worry about it. |
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Need to know what the tax repurcussions are for transfering title to a family member, he will be refinancing the home under his name therefore paying off loan under my name. He has been leasing the property for the last 10 years with intention to eventually purchase. Want to make sure there is no gift tax issues by doing it this way. Patty, Redlands,California I am not a tax expert, or a resident of your state or country, so I can't give you specific answers. Generally speaking though, one way or another, somebody is going to take a hit on taxes no matter how you do it. If you sell it to your son for $1.00, you'll be able to claim a capital loss equal to the price you paid back when you bought the house. When he sells it later on though, he'll pay capital gains tax on the full market value at the time instead of his actual gain. It might be cheaper overall to report the sale at its' current market value and pay a gift tax, rather than trying to be clever about it; especially if you get caught and end up fighting tax evasion charges! The right strategy for one family can be the wrong strategy for another, depending on their circumstances. If you meet with a tax accountant in your state, they will review your and your son's overall financial situations, consider your objectives, and offer a recommendation based on the tax laws and how they apply to your individual situations. For a fee of course, but considering the value of the property, and the taxes that you can save with the right approach, it's money well-spent. I hope I've steered you towards the answer to your question! |
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Hi - We are going to remodel our kitchen in an 2800 sqft upscale home in W.Covina, CA. We would like to remove our double oven and add a pantry. We would install a high end oven/stove instead of the double oven and cook top. Will this take away appeal or resale value from the home. Thank You Very Much, Tami, W. Covina, CA My rule when renovating is: the feature that would appeal to the largest number of buyers is the one that would add the most value. There's a slight ergonomic advantage to having a built-in oven, rather than an oven under a rangetop. Only someone who has worked with a raised built-in would be aware of it though. But two ovens? Come on! Who bakes and cooks that much food every day? Where did that trend come from?! It's not something most buyers are looking for. They are looking for space though. One of the hottest features in kitchens, in my market in Canada, is a pantry cabinet or, even better, a pantry closet big enough to walk into. Make it stand out though. Don't hide it behind a wall of cabinet doors. Give it a french-door with frosted glass panels. Backlight it! Go all out on the stove. If you're selling an upscale home, your buyers have already seen the best. The commercial grade stoves are the standard. Buyers are loving brushed chrome appliances with black accents. Add black mirrored backsplashes and dark cabinets, with halogen tracklighting or potlights, and under-cabinet lighting. Now imagine your backlit pantry closet door with the frosted glass, at night. You'll be swamped with offers! Good luck with your renovation. I hope you love it after it's done! |
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I bought a home last summer and part of my contract was that it be in the same condition it was viewed in and that it be reasonably clean. When the previous owners moved out, the damaged the hardwood floors in 3 rooms in places that cannot be covered up. I have been told that as the floors have a coating on them to make them more durable, the boards cannot be filled and must be replaced. It has come to pass that I was told the flooring was readily available at a few wood flooring stores and it is not, it was actually purchased by the previous owners at auction. My realtor has been of NO help in dealing with this despite being alerted to the damage (as was the sellers agent) before we moved in. What is our recourse if we cannot get the same flooring? What is our real estate agent obliged to do for us? Lisa, Victoria, BC I like to keep in touch with buyers as they progress through the legal process of getting the keys, so that I can help them find solutions or resolutions if problems arise. There's enough of a variance amongst Realtors' practices that there really isn't a standard. Your Realtor did work to your advantage though by inserting a clause saying that the house would be in the same condition as at the showing. If your lawyer had been aware of the damage done to the house, before the deal closed, they could have negotiated with the seller's lawyer to come to a settlement to cover the repair costs. Now, after the deal is done, you're going to have to go after the seller in court and try to convince a judge that the seller owes you money. That clause will work to your advantage. I'd suggest that you discuss this issue with a litigation lawyer to find out what your options are, and how much your options will cost. There might be some special law out in BC that I'm not aware of and that actually helps you recover your repair costs (an aftermath of the mouldy condo debacle maybe.) |
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Hi. I am wondering how much of a reduction is reasonable to expect in real estate purchase for cosmetic updating. To clarify, I am interested in a duplex which was on the market last summer with no reductions and no offers. It reappeared about 10 days ago on the market with a $10,000 price reduction. When I viewed it, I saw why it sits on the market. Though it is only 16 years old, there is a big need for new paint (horrible bright colors and dark wallpaper in poor condition) and flooring (owner has 3 cats and carpet is original - some peeling of vinyl flooring). I like this place and can certainly see how to update it easily. However, it appears it is putting a lot of clients off and I am wondering if I can use that to my advantage when making an offer. How much below asking price can I go when this is clearly a huge factor? This is also in a town with a pretty hot ongoing real estate market. Thanks. Liz, Victoria BC Buyers who renovate and flip, as a business, figure out what the market value of the house will be AFTER the fix-up, then deduct the cost of doing the fixup. That tells them the maximum they can pay for the house if they just break even. When the fix-up is only cosmetic, the buying price isn't that much less than the market value. But notice that I said "market value," not "asking price." Since the house didn't sell at the old price, and still appears to be unrealistic at the new price, the seller has different expectations than any buyers about what it's worth. When my buyers are ready to put in an offer on a house, I do a Comparative Market Analysis (CMA.) It compares the subject property to recent sales of similar houses. Despite what you see on TV, it's not all about location, location, location. The value of a property is based on lot size, house size, location and condition. The CMA adjusts for all factors other than condition. Old apples compared to new apples. You end up with a price range, sometimes as much as 10% of the value, from poor condition to pristine condition. If your Realtor does a CMA for you, your offer should be at the bottom end of that range. As long as the systems and structural elements (plumbing, windows, roof, etc) don't need work, you can let the seller negotiate you to a higher sale price. There's a tactical strategy behind offers. If there are no other offers on the table, do this: Usually the home inspection comes after the seller accepts the offer. To scare the seller, I prefer to do the home inspection BEFORE preparing the offer on this type of property. Since it's in bad shape, and they must be aware of it already, the act of bringing in a third party to "judge" it before you even put in the offer scares them. It brings their expectations down. If you REALLY want to scare them, hire an Appraisor (about $300) to tell you what it's worth before you submit an offer. When your offer comes in, their estimate of how much 'negotiating room' there is in your price is much lower, and they're more humble. In practical terms, if the cosmetics of the home are compromised, what else is compromised? The pre-offer Home Inspection Report also keeps you from making an offer on a home that has far more serious problems. Victoria BC? The first concern is mould. If you're buying privately, I will scold you first for not using a free Realtor, then tell you to run away from that house unless you are a fan of late-night home invasions. Never buy distressed properties privately. That was pretty technical, and scary at the end, but I hope I helped! |
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We have made my landlord aware that our vents are filthy (there is a lot of dust and dust "chunks" in the vents. My fiance is allergic to dust mites and all of the dust is making him ill. It is even starting to bother me as well. The dust is everywhere. We have had to place filters in the vents in order to block the dust from coming out, but it still does not catch all of it. When we asked our landlord to come and clean the vents, they refused, telling us that we could contact a company in order to repair the damages and then deduct $100.00 from our rent. This is not acceptable to us and we are thinking of contacting a lawyer. Do we have a case? We live in Raleigh, NC. Wendy. I wasn't sure what the answer was in North Carolina so I did some googling and found a website that can provide you with better answers than I can: http://www.rentlaw.com/northcarolinatenant.htm It spells out what the landlord's (and tenant's) responsibilities are under North Carolina's landlord/tenant legislation. It sounds like you do have a reasonable expectation that the landlord will clean the ducts considering their condition as you describe it. The first step in the remedy process is to advise the landlord, in writing, of the deficiency. You're ahead of the game already! I didn't stick around the website for long, but I suspect there are resources there to help you get what you are entitled to. Good luck with your vents, and your landlord. Buy a house! |
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My mother owns a house in downtown Toronto and she wants to put my sister and myself on the deed. My sister is 65 and I am 60. Will this affect the property tax rebate my mother receives as a senior? Lynda, Little Current, Canada It seems logical that if only 1 of the 3 owners is a senior, then only 1/3 of the taxes will be refunded, but I don't really have a clue. I tried doing some research, but couldn't find a website with the answer. Only a tax accountant, either in Little Current or in Toronto, will know the real answer. I'd suggest you get the Yellow Pages out and set up an appointment with one. It might cost a few dollars, or they might give the advice for free. I'm not sure what your intentions were with the transfer of title. If mitigating your mother's tax losses are a priority for you, the savings from setting up a life estate will far overshadow any losses from losing the senior's property tax rebate. Definitely discuss life estates with your accountant. I'd be interested to know the answer, if you don't mind getting back to me after it's all done. |
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Me and my husband bought a house 4 years ago with my husbands Father on the Mortage as a co-signer. Is he entited to a share of the profit when we sell? Do we need his consent to sell the house? If he is entitled to a share of the profit or we have to have his consent to sell, is there anything we can do to have him remove as a co-signer? We have not missed one payment, and we now have a good credit report! Tanya - Alberta Canada Congratulations on your new house, and on establishing a good credit rating! Whether or not a co-signer can be removed depends on the bank's lending criteria. Even though you now have a good credit rating, the lender might still not be satisfied with the amount of equity (downpayment) you have compared to the total mortgage, or with any of the other things they look at when agreeing to an un-co-signed mortgage. The good news is, you don't really have to get rid of your co-signer. In fact, your co-signer should be more worried than you are. Under a normal mortgage, the co-signer is only agreeing to pick up the tab if the borrower (you) fails to make the mortgage payments. The co-signer has no other rights under the mortgage. Without an side agreement to the contrary, the co-signer cannot influence the sale of a home, or claim any share of the profit. |
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I had the buyer for my house back out the day she was suppose to pick up the keys. She signed agreement 3 months earlier. I was in the middle of a divorce so the sale was crucial as I could no longer afford the mortgage. The bank agreed to hold off taking the home because we sent all the paperwork that the house was sold, the knew they would get their money. When she backed out, the bank took over we now had more fees than imagined I lost about 30,000. Is there any thing I can do to recover what I lost? Dawn, Oshawa My lawyer friend tells me that there is a possibility of legally forcing someone to fulfill the terms of a contract, where you sue them for "specific performance," but in a contract on a house the judges don't usually make the deal happen unless there is absolutely no possibility that the claimant can find another buyer or another house to replace the one they are losing. The legal route is very expensive, very unrewarding, and very frustrating. If you're financially not in a position to keep your house, you will find it almost impossible to afford the lawyers you would need to even try to force the buyer to buy. Your best options are probably not legal, but are financial instead. There are credit counselling agencies that can help you pick up the pieces of your life, come to an agreement with the people you owe money to, and move towards being in a position to buying another house sometime in the future. Try the Yellow Pages, or Google "credit counselling Oshawa" to see what kind of resources are available. There must be quite a few so close to Toronto. The whole issue is complicated by your divorce, and that brings me back to what I always have to say: I'm not a lawyer. Please consult with a lawyer before choosing any action or inaction based on anything I've said here. There might be some angle that your divorce lawyer can use to help you resolve your issues with the bank (but not likely with your missing buyer) or get more money from your ex. I haven't answered your questions, but I hope I've pointed you towards the people who have them. |
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We own a house with a mutual driveway. The house we share the driveway with sold last year and the new owners are adding on a second storey. Having done the same thing several years ago, we are aware that we need to co-operate with their needing to use this shared driveway. They have become increasingly inconsiderate -- most recently erecting scaffolding that blocks the driveway without warning us this would happen, so we are now parking on the street. Also, their power was cut off by the city; they wanted to use our power, and we said no because they couldn't tell us how long they would need to do this. They have since got permission to use the power of the neighbour on the other side of us and now cross our yard (trespassing) to run the cord every day. They never asked us for permission, even initially. Is there a website you could suggest that would inform us of our rights? Do you have any suggestions other than, "Grin and bear it"? Karen, Toronto. Sounds like a good time to move! Shared driveways are a nightmare.Your options depend on local zoning bylaws, and how you're registered provincially. Please check out this Toronto Star article as an example. You'll need the help of a lawyer with this one. The one you used to buy your house should be either able to offer advice or refer you to a colleague in his office. Good luck with the neighbour! Have you tried telling them that you are happy that they are improving the neighbourhood, but not so happy with how their activities are affecting your use of your own property? Some people are so self-centred that they don't know when they're standing on someone else's foot. Talk first, sue later. That's my strategy. |
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My ex and I have agreed on a "fair market value" of our house based on MLS listings in the neighbourhood, for my buyout of his interest. Should the final buyout price be discounted by the 5% real estate commission that we're not paying out but that the MLS listings contained in their "fair market value" selling price? Shelley, Toronto First, my condolences on the break-up. It sounds like you're both being reasonable about it though. Congratulations on that. Secondly, if you don't mind me meddling, the value of your house, unless you're married to a gazzillionaire, is the biggest asset you have to split up. I get asked to value houses for divorces all the time. While it's flattering that people trust me so often, at the same time, I'm disturbed by how often I'm asked. I tell my friends to hire an Appraisor, instead of consulting a Realtor and using MLS listings as an indicator of value. Appraisors are the people that the banks use to value properties. They don't guess, or give you a range. They nail it down to a specific number. They give you a professional opinion that you can take to court. That's important in a divorce because it eventually always gets ugly. You might both be agreeable about the value of your house today, but after you've spent months fighting over custody of the cat, or the George Forman Grill, one of you will come to believe that they were shafted on the value of the house. Thirdly, to finally answer your question thanks for waiting, the market value of your house is the market value of your house. You don't subtract anything from it. The Realtor's commission, or moving expenses, or legal expenses are hypothetical expenses that change depending on how the house is sold. If you sold at full price privately, you'd get it all in cash. That's your market value. Enjoy your new single life! |
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My partner and I bought a house last summer. During repairs to the foundation, the workers dug up several old oil tanks, hot water heaters, and a selection of other miscellaneous garbage next to the house. An old election sign amongst the garbage indicated that it was buried fairly recently and that the previous owners must have known about this waste. Had we been aware of this, we would have made the sale conditional on the removal of this garbage. Were they obligated to disclose this? Also, what recourse, if any, is left to us at this point? Jeff, St. John's Congratulations on the purchase and on having a partner to purchase it with! We should all be so lucky. You weren't so lucky though with the discovery of the oil-tank burial ground on your property. The huge issue is, was there any soil contamination because of the tanks being in the ground? If there was, you should hope that your homeowners insurance covers you for soil contamination. If there wasn't, it's just a typical matter of cleaning up the previous owners garbage, with a twist, and a backhoe. If you have proof that the previous owners buried the stuff, and you want revenge, contact Newfoundland's version of the Ministry of the Environment. They could be charged if they broke the law by burying the tanks. Yes, if they knew that they were there, they should have disclosed that information, unless they wanted to spend the next however many years in court fighting over the costs of cleaning them up. Which brings up back to square one. How expensive will it be to clean up what they buried? If it's minimal, consider it another chapter if the story of your life together and move on. If it's huge, get a lawyer and get ready for a bumpy ride. |
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I am in the process of buying a home that is for sale by owner and I am having trouble filling out the purchase agreement. If you may have a sample agreement that I could see would be greatly appreciated. Jason, Hammond, La. Congratulations on taking the home-ownership plunge. Buying a house privately is not like buying a car privately. It's more like taking out your own gallbladder. At some point, your going to need professional help if it's all going to work out to your advantage. The most important thing that you need in the agreement is a clause saying that your offer is conditional to approval by your Attorney. Write this in: "This agreement is conditional upon the purchaser obtaining, at his own expense, approval of the terms of this agreement by an Attorney of his choice. If the purchaser does not provide written notification that this condition has been fulfilled before 6:00 P.M. on May __, 2008, this offer will be considered null and void and the purchaser's deposit will be returned without interest or deduction." If you were up here in Canada, I could do the offer for you and email it to you, but unfortunately I don't have access to the MLS forms used in your state. Do you have friends who are on good terms with a local Realtor? There might be someone nearby who could help you with the offer. If not, I still might be able to help. Email me with the parts you're having trouble with, and I'll do my best to help. |
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We live in Michigan and purchased a home after being told the total taxes for village, township and county were $1,500 per year. Our loan was set up to include those in the monthly payment. Now 1 year later the mortgage Company is raising our payments by 33% to cover taxes.Our realtor forgot to file for Homestead Property Tax Credit and our taxes are now over $6,000 a year. Is our realtor responsible for seeing that the credit was applied at the closing? Can we hold her or the company she works for responsible for the credit not being filed properly, and recoup the difference in the taxes? Is it the realtors job to file all the necessary paper work? Kevin, Marcellus, MI Generally speaking, when Realtors don't advise their buyers about the taxes that will be paid on their house, the buyers can go after the Realtor. The money comes out of the commission, so it's not like the Realtor would pay the taxes forever though. It sounds like your Realtor did advise you that, with your Homestead credit, your taxes would be $1,500 instead of $6,000. Making that happen wouldn't usually be something a Realtor makes happen. Having said all that, you're in a different state, and a different country than me. I don't know how the documents are normally filed for the Homestead credit in Michigan. It sounds like something that the buyer's attorney or tax accountant would look after. Realtors don't normally deal with that kind of paperwork. You might try asking around to see what a buyer's attorney normally does in Michigan when the buyer is elligible for the Homestead tax credit. Then ask your own attorney to explain how you ended up not filing the papers. Maybe you can blame your attorney, maybe not. Please let me know what you find out? |
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I no 2 people that own homes and they are forclosing on them. They are renting both homes out to renters that have no idea the home is being forclosed on. Is this legal to forclose on a home , not pay any morgage on it and rent it out for profit? Chris, Florida I'm not sure what the laws are like in Florida, but I doubt that they are much different on this topic than in my country, or anywhere on earth. Most countries have tenant-protection laws. In Canada, if someone rented out a property that they didn't own, or knew they wouldn't own in the future (and therefore couldn't fulfill the terms of the rental contract,) that would be some sort of fraud, and likely would be judged a breach of contract. I doubt, though, that the people who bought the houses your friends' rented intended to default on the mortgages. They most likely bought them because they thought they could put a small amount of money down, rent the houses out, and make a big amount of money after the increase in the house's values and taking in the rent for 10 years or so. That's the American way! I suspect, though, that they were caught up in the same sub-prime mortgage debacle that put your country into a recession and has the rest of planet Earth shaking in it's boots. Having said all of that, there most likely are laws in Florida that protect tenants when a house is sold or foreclosed. I don't deal with tenancies, but I think that, in my part of Canada, the law says the bank or whoever bought the house from the bank, would have to take on the tenants and not be able to boot them out before the sale. After the sale, there is a legal process for getting the tenants out of the house as long as the buyers are moving into the house themselves instead of having their own tenants move in. But that's Canada. Smoking pot and gay marriage are legal up here too. I suspect that there are laws in Florida that protect tenants when a house is sold or foreclosed, but I'm not sure. You would have to consult with a legal expert (attorney) there to find out what your friends' options are. Let me know what you find out!? I'm a shop vac of new knowledge :-) Chris wrote back: I did speak to a sherif in florida, and he told me as long as its still in the process of a forcloser they can rent it out w/ a month to month rent payment, w/ no contract. Once the forecloser goes through tenents will have to vacate the premises, and the house then belongs to bank. Its unfortunate because allot of people are being thrown out of homes they were living in because the landlord never informed them it was in forcloser. thanks for writng me back. christine Christine's response inspired me to do further research on what her friend's rights would be in Ontario. If it's an apartment building, the law here is clear. The bank becomes the new landlord. For other properties it gets murkier. If it's a house, the bank or the new owner can usually evict the people renting the house. If there's a tenant in the basement, and the defaulting owners are living on the main floor, the tenant might or might not come with the house. There are parts of the Mortgages Act that overide the Tenancies Act, and vice versa. This is why I sell houses instead of renting them, or practicing Law. Short answer: call a Lawyer. |
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My neighbour had a furnace oil leak and there was some contamination of my property. My property has now been remediated to "residential standards" but not pristine. In addition the neighbour's property has been partially remediated, however remaining high contamination is being managed through an underground ground water collection system connected to an oil seperator. Can you tell me how this will affect the sale value of my home. (Name withheld) If the property was still contaminated, the great unknowns, of how extensive the spill was and who was going to pay for the remediation after it was all over, would adversely affect the value of your property. In most markets, you would not be able to sell it. Fortunately, your house is now sitting on ground that is no more contaminated than the average house. The previous contamination, by itself, should not affect your property's value. (Resist the temptation to keep the property's history from a buyer though.) The concern for a buyer now is that there is contaminated ground next door. A buyer might have trouble getting insurance on your property because of the potential for another contamination of your property if the pump and filtration system fail in some sort of flood episode. If most insurance companies are willing to insure your property for a buyer, your property value will not be affected adversely. If they won't, you've got a problem. I assume your remediation was paid for by your neighbour's insurance company. Your quarrel with them might not be over. Your own Insurance company is your best resource in this. The insurance companies have a shared data-base of problem-properties. If yours is not on it, your buyers should be able to get insurance with no problems, and you should be able to sell for full market value. If yours is on the "bad" list, you might be looking at a lawsuit against the neighbours for the reduction in market value because of their spill. Please let me know what you find out, and how it all turns out. In our courses, they always talk about the house with the oil tank. I've never heard anyone discuss the perils of buying the house NEXT to a house with a leaking oil tank. Thank you for opening my eyes up to that one! |
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I bought a house 2 years ago with my sister on the Mortage as a co-signer. Is she entitled to a share of the profit when i sell? Do i need her consent to sell the house? If she is entitled to a share of the profit or i have to have her consent to sell, is there anything i can do to have her remove as a co-signer? I have not missed one payment, and I now have a good credit report! Minda - Alberta Co-signers really have no rights. Being a co-signer is a really nice thing to do for a friend, but the worst thing that someone could do for themselves. The mortgage documents say that the co-signer is only agreeing to take on the borrower's obligations if the borrower doesn't make the mortgage payments. There is nothing in the mortgage documents saying that co-signing gives them any power over the borrower or the property, or a share of any profits. To remove the co-signer, you would have to have a new mortgage drawn up but, since the co-signer isn't a problem, it's not usually worth the trouble or expense. The one who should be in a rush to get the co-signer off of the mortgage is the co-signer! Until you have a new mortgage, the threat of your default is going to be hanging over your sister's head. She's the one who should be worried, not you. It's not going to hurt you if you just leave things as they are. |
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My husbands mother has to sell her house (per her divorce) she wants to remain in the house she has asked my husband to co-sign with her boyfriend. She has stated that in one year she will switch the house in to her and her boyfriends name and remove my husbands name. I am not sure about this action. what are some issues that could arrise and potentially cause problems for my husband and i? Jenny, Massachusetts I have more questions than answers, but figuring out where to find the answers will lead you to the professionals who can advise you. I'm not sure if you have same-sex marriage laws in your state. If the two men whose names are going to be registered on the deed are not married, then it should be treated as a business partnership instead of a family purchase. Either way, there has to be a 'partnership agreement' that spells out what everybody is putting into the house, who is doing what while they own it, and what happens if things go wrong and one party wants out. Because it's your mother, there are some estate issues that cloud the waters. I'm not sure what your ages are. If Mom is 45 the issues are different than if Mom is 85. If she's younger, she only needs your short-term help to keep the house for now and maybe sell it later. If she's elderly though, you could consider setting up a 'life estate' which lets her live in the house until her death, while someone else owns it. It's beneficial if she dies, compared to leaving it to you in her Will, if your state has inheritance taxes. Capital Gains Tax is another issue to consider. If the value of the house goes up, your husband would be paying tax on the increase in value of his share of the property. If it goes down, the tax loss could be beneficial if you have income to write the loss off against. It depends on you own situation. If you buy the house the way you described in your Email, the elephant in the room is, what happens if you go on the deed with the boyfriend and then they split up? Who moves out; Mom or the guy who legally owns it? Before you do anything, you need to have a plan for that scenario. Are there other family members who could buy the house with you, so that the boyfriend isn't involved until later on when he and Mom buy it back from you? If you can't do it without involving the boyfriend, make sure you get that business agreement in writing and make sure that it specifies what is going to happen if things go wrong. To answer the tax and estate questions, you should meet with a Tax Accountant in your state, and an Attorney, to determine what options are available to you, and which are your best choices in your particular circumstances. I hope my questions help you prepare for meeting the attorney and accountant. I'm sorry I couldn't be more definitive. Good luck with it all. |
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I have put my farm (100 acres) on sale a month ago.No one even came to look at it? Should I wory about that?? or is it common with the rural properties. Will I be able to sell it?? Please advise. BB, New Tecumseth, ON I don't see it on the Barrie MLS system or on the Toronto MLS system. If you're not on an MLS system, it will never sell. Where, and how, are you advertising that it is for sale? It won't sell unless buyers know it's for sale. How are you letting them know it's available? Farm properties are always a challenge to sell. Farming is generally a hardship business (although I know a family who has done well farming potatoes in New Tecumseth) and farm buyers are more likely to be rich city-slickers looking for a place out in the country. Selling to them takes skill and finesse. If you fill me in on what you're up against there, and what you've done to sell it, I can be more help. |
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I live in Ont. I built my home my self ,moved in jan 2008 how long do i legally have to live in it befor i can sell it with out a tarrion warranty. Mel, Niagara Falls My understanding is that the house does not have to be registered with Tarion if the builder lives in the house, or rents it out before selling it. I haven't been able to find a specific amount of time that has to pass before it can be sold, but in practicality there is a time imposed by the buyer. What I mean is, after 7 years, no house is covered by Tarion. If you wait for 7 years to sell, it wouldn't make a difference to a buyer that your house wasn't covered because no other house of that age is covered. If you sell after only 1 year though, your house would be on the market in competition with other 1 year-old houses that still have 6 more years of Tarion protection. In that situation, the buyers will not be willing to pay as much for your house as for the ones that are covered by Tarion. I'd venture to say that the costs of registering with Tarion (even after the house is built) are smaller than the discount you're going to sell at if you don't have Tarion protection. The problem is that today's buyers are too well educated, or think they are. They have all watched Mike Holmes on TV. Whether or not you think he's an asshole, he's done an amazing job of scaring buyers about bad builders and renovators. Every buyer who walks into your house will assume that, if you didn't register with Tarion, you're one of those incompetent builders. Otherwise, why didn't you? Countering buyer's scepticism is the first obstacle in selling a resale home. I encourage renovators and builders to have permits and inspection reports available, and one or even two Home Inspection reports available. You're going to have to go that far to convince a buyer that it's safe to buy your house without Tarion. I'd recommend that you discuss your situation with a lawyer who is familiar with Tarion and the legislation. It's possible to register after it's built, but I'm not familiar with the process. I can advise you on how to get it sold, but they are the experts on your obligations under the law. Good luck with the sale! |
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I've listed my house with an agent,two months ago.I've had only had one client.What do you thing the problem is? Paola, Manitoba I see that there's quite a price range in Belair, from under $50,000 to approaching $300,000. I assume the higher end properties are on the water. I'm not sure which one is yours. If you're on the higher end, but you're not on the water, that might explain the lack of showings. Did you list at the price your Realtor recommended, or at your own price? Generally speaking, when there are no showings in a busy market area it means the house is so overpriced that buyers feel insulted by it, and won't even come to look at it. I'm not sure how busy your market area is though. 1 showing in 2 months might be the average there, or it might be a sign of trouble. I'd suggest that you ask your Realtor, or his Broker, how many showings similar properties have been getting during the same period. If they won't give you the answer, call a competing Broker, tell them who you're listed with, and ask them for the stats. They'll be happy to provide them. What you need to know is: are buyers going to see all of the other houses for sale, but not coming to yours? If other houses are getting a lot more showings, you've got a price problem, or a Realtor problem. If everyone else is getting only 1 showing in 2 months, sit back and relax, and don't start packing yet. |
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I own 25% of one acre of land and want to sell my share.What do i do to sell it without a realtor. do i have to get a surveyor first? Marlene, Charlston The way you're going do it depends on how you came to own it. If you bought it as an investment with other people, your attorney most likely drew up a partnership agreement that explains, in detail, what any of you will do when you want to sell. If, instead, it came to you and the other 3 owners as an inheritance, it gets less predictable. There might have been some provisions in the will to prevent you selling your share, or spelling out how you can sell it. Assuming you can legally sell, if the other 3 people want to sell too, you would all sign a listing agreement with a Realtor, or all find a private buyer and sell the property. If you're the only one who wants out, you're going to have to deal with the issues of leaving the "family" on the property, and negotiate something with them. Having done that, how easily you can find someone to buy your 25% depends on the property. If it's a 1 acre commercial property with a office tower on it in downtown Charleston, it's going to be easier than trying to sell a 1 acre piece of farmland on a dirt road out in the country. There are a lot of "what-ifs" in your question. I hope I've hit on one that is close to your reality. Let me know! |
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My question is not about buying a home, I just want to ask if you know if a misdemeanor exempts a person for becoming a realtor? Petit Theft to be exact Jackie, Polk County FL In my part of Canada, when we apply for a Realtor's licence, they ask about past criminal convictions. I always assumed that if someone had one, they can't get a Realtor's licence. Now that I think about it though, I don't know that it's really the case. Don't be shy about calling the Florida Division of Real Estate office and asking them if your misdemeanor is an issue. The people there only have jobs because people like you and me are willing to take the courses and pay the fees. They shouldn't intimidate you, and they can tell what you have to do to get your licence. I encourage you to persue your dream of becoming a Realtor. It's a great way to help people achieve their goals, but not a great way to get rich, despite the public's perception. Do it if you love working with people. |
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I bought a house with a closing date of August 01st. Late that day, my lawyer informed me that the owners had a lien on the house and wanted an extension for the possession date. I agreed. The extension date came and went and my lawyer then informed me that there were several liens on the house. Now, I want to withdraw the agreement. I don't think my lawyer did the necessary background checks on the owners. Do I still have to pay all the legal fees? Can I ask for some compensation from the owners? Sam, Ottawa Lawyers like to have at least 6 weeks to search the title on a property for a buyer. If you had a "quick close" you might have compromised your lawyer's ability to dredge up those liens. Honestly though, even with longer closings, nobody seems to be surprised when the lawyers call at the last minute with lien problems. I suspect that most of them leave it until the last minute so that the search is as up to date, and inexpensive to them, as possible. In a perfect world, it seems logical that they would do one search earlier on, and a second one later on to turn up any liens that have been registered in the last few days before the house closes. Budgets, staff shortages, and who knows what other obstacles prevent that from happening in a typical lawyer's office. And that's the crux of the problem in getting compensated by the lawyer on the basis of a court judgement. You'd have to convince a small claims court judge that you lawyer's search was substandard by industry standards. Good luck with that one. If you're on good terms with your lawyer, you might be able to cajole them into knocking your bill down a bit. The carrot, instead of the stick, in other words. As for the owners, it sounds like they owe more on the house than they have in equity in it. The bank will likely be the next one at the door, and then it will get crazy. You're best option right now it to get a "mutual release" signed by the sellers, and walk away from it. Go buy another house that you can actually get. However, if this house is the house of your dreams, you'll die it you don't get it, etc, keep your offer on the table. It's going to get ugly for the sellers if it goes Power of Sale, and very stressful for you, but hang in. Since you're ready to "close," I assume you've got your financing approved for that particular house, and the home inspection and insurance verification are done. If there are any other searches or questions pending on the house, get them taken care of. Your objective is to be ready to say "yes" when the bank's agent calls and asks if you're ready to resubmit an unconditional offer on the house to the bank. "The bank" might turn out to be an accountant preparing a plan to get the non-banking creditors off the seller's backs, but the principle is the same. Having an offer in play will get you the house. Pulling your offer now and coming back when it's under Power of Sale will put you in competition with the vultures. Under the second scenario, you could lose it, or pay more than you are paying with your current offer. That was a lot of information, and a lot of "ifs." I just went through this though with a young couiple. They are now living in the house they fell in love with and paid the price they originally wanted to pay for it. It works! |
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My brother is selling a home in CT. The original selling price was 389k and dropped to 349k and then to 300k. He is now being told that it is his responsiblitiy to by his realtor that the buyer expects him to do some minor things i.e. spray for carpenter ants and termites. I told him his contract was "as is" and he should not have to do anything else after dropping his price 89k. Please advise me if there is any CT law that requires him to do this.Stephanie, Connecticut I did a quick search on the internet and didn't find any references to such a law. I'm in Canada so my knowledge of your laws is limited. Well, non-existent actually. I did find this website with a Q&A feature though: ctrealestatelaw.com Generally speaking, the seller's and buyer's obligations arise from the wording of their Agreement of Purchase and Sale. If it says in that document that your brother has to spray for termites, then he has to. If it says the buyers are taking the property "as is," then he doesn't. You'd have to have an attorney review the actual sale contract to see what your brother agreed to when he accepted the offer. I apologize for not having a definitive answer, but I hope I've helped you in your search for an answer. |
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My husband and I just purchased a home, and used a realtor- a buyers agent- to help us with the process. Our realtor ended up giving up part of his commission-$3000, to help us get the deal. Everything went fine, and now I want to know the protocal in thanking the realtor. I told him that I would give his name out to people we know who will be moving in the near future, and he told me not to tell everyone that he gave up part of his commission. From talking to people though, it seems that him giving up commission is not an uncommon thing, esp now that the market is so slow. How do I thank him appropriately? A thank you card? And am I allowed in it to say "thank you for giving up part of your commission"? Should I also send a small gift- like a gift card to a nice restaurant- and if so, for what amount? What is appropriate? Please advise me. Stacey, MD If you send your Realtor a thank-you card, he will be the only one to see it. You can be specific about what you are thanking him for, i.e.: the commission reduction, or whatever else you liked about his services. Thank-you cards are rare. Gifts are even more rare. I treasure them when I get them and the more personal they are, the more it means. A $20 bottle of wine that I mentioned that I love, or Mike and Jill's trendy metal water bottle to replace the trashy plastic one that I carted around while showing them houses, mean more to me than a bunch of money. The perception usually is that the Realtor's gift is the commission, and the one deserving the gift is the buyer who facilitated the commission. (I generally give the buyers back 10% of my own commission but would never expect that much from a client.) If you're only wanting to thank him for giving up part of his commission, the card and a small gift will suffice. If you were truly satisfied with the way he dealt with you overall and the commission reduction was the icing on the cake, then the best way to thank him is with your original thought - tell your friends how satisfied you were. Realtors live and die by referrals, or a lack of them. Draft a 'we're-moving' letter or Email and send it to as many people as you can think of. In that letter, mention that you had an awesome Realtor that you would recommend to anyone on Earth, and the reasons, and then provide his contact information. (Don't mention the commission cut though.) Then send your Realtor a thank-you card. Enclose a copy of that letter, and a list of all of the people you sent it to. Add a hand-written note telling him that he can quote what you said in the letter as an endorsement of his services on his website, or in any advertising he does in the future. That would be $3000 worth of thank-you's for any Realtor! |
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I bought a house in may of 2001 and on the listing paper with the realty it said the house furnace and central air was 4 years old and we just had a major breakdown with furnace(400 dollar band aid) and the original installers came and worked on it and said it was 20 year old this year so doing the math the unit was about 13 yrs old when I bought the house! My question is what can I do because I will have to buy a new one next year that is if it makes a year. Is It a legal Issue? Or should I just eat the cost and go about my life? Robert, Mattoon, Ill You will have to go to court to recover the repair costs. How easily you can do that depends on your evidence and your State's legal system. Most often, the costs of recovering your loss in court are much higher than the money you would have to lay out to do the repair. Your own situation might be different though, for a variety of reasons. I'd recommend that you spend a few dollars upfront and pay an attorney to review your paperwork and then advise on your rights under your local laws, and on your options in small claims court (assuming your costs are under the limit for small claims court in your state.) Fraudulent sellers are a chronic issue and it's because of them that we now have Buyer's Agents in most of North America. The fraudulent sellers assume that getting revenge for their lie is more expensive that the costs of the repair, and therefore most buyers won't persue legal action. That's a logical conclusion in Canada, where I am, because our courts don't award judgements for suffering. Your courts award millions to people who spill their own coffee on themselves. That attorney might have an angle on how you can get some pain-and-suffering money out of a lawsuit and take it out of small-claims on a consignment basis. |
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I have a friend who, recently worked with a realtor to sell her house, which was basically forced by divorce. Said realtor, even after numerous requests to cease relaying information between my friend's ex-husband and my friend, continued to involve herself in "he said" "she said" conversations with my friend while they were still going through court hearings regarding said divorce. My question is, "Is this not unethical"? I am not inquiring to bring any legal action against the realtor, I am just appalled that the realtor continues to engage in such practices and it has caused a disagreement between my friend and me. I say it is unethical, she disagrees....Can you give me an answer? Whether it be your professional opinion or an actual (un)ethical realtor pratice does not matter.....Thanks for your time...Denise Thank you for visiting my website, and for submitting the details of your friend's experience with a Realtor. You didn't provide your E-ddress, so I'm hoping you are coming back to my website to watch for my response: I'm not shy about identifiying my colleagues' unethical behaviour. By definition, that makes me unethical because our Code Of Ethics says we can't undermine another Realtor's reputation or criticize them in public. As Realtors, under "agency" laws, we are our client's eyes and ears. We are obligated to relay, to the client, any and all information we become aware of that affects their situation. We are also obliged to protect the client's interest, and not divulge, to others, information that would diminish our client's negotiating position. There was a divorce involved, in your friends situation. If both spouses names were on the deed, then both of them were the Realtor's client. The Realtor's efforts to keep the lines of communication open were not only ethical, but essential to the transaction. If the house was deeded to only your friend, and the ex was some sleezebag who came and went, there's still the issue of the spouse having a claim to the asset. It can't be sold without the spouse's signature. In an ugly divorce, for the Realtor, that can be comparable to walking on hot coals on an island in the South Pacific. Painful but necessary to complete the journey. Keeping the lines of communication open either means being a conduit between the spouses, or trying to communicate through the lawyers. The former is far more preferable. Since your friend disagrees with you about the Realtor's behaviour, I suspect the Realtor did an exemplary job of explaining their agency duties, and how it would affect communications with the ex. I doubt that there was unethical behaviour. That's my best ethical answer based on the information you provided. It might change with more dirty information. Thanks again for your interest in my website, and for getting in touch! |
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(Abridged Email) I live in Surrey BC in a 16 year old 2350 sq foot 2 story home. I have had a couple of quote for gas furnaces with and without heat pumps. If there were 3 identical houses where one had a regular mid efficiency furnace, one had a high efficiency furnace and the third one had a high efficiency furnace with an air to air heat pump(which also provides cooling in the summer), how would the differences affect the selling price? What about the windows - how much added value would replacing my current (aluminum???) ones with energy star vinyl one? Over the years I have also experienced condensation in the to the extent that at times I have had to soak it up with towels. Laurie. Surrey. BC A seller will get less for a house with older aluminium windows than with updated windows. How much less depends on how important keeping the cold out is to local buyers. Buyers in Fort Nelson likely think the R value of their windows is more of a determining factor than buyers in Surrey. For that reason I'd leave yours as they are, but there's a more practical reason for not replacing them. Unlike the furnace, which nobody can see, the windows are part of the design element of the house. If you're replacing windows just to make it energy- efficient for resale, I can guarantee that you will choose the least attractive and least expensive windows, while your buyers will have visions of a dream home with the most expensive windows. They will be disappointed by your choice, and so will you when they buy another house. You're better off leaving the windows as they are and letting the buyers imagine what the house will look like after they put in the windows they see in their dreams. Every buyer thinks they have the skills to make a house look better than it currently does. Leave the windows as they are and let them discover the real costs of their dreams after they buy. Your larger concern is humidity. Your indoor climate is suffering, and that affects your health as well as the structure. If you're mopping up pools of water, you have to mechanically reduce the humidity inside your house even to continue living in it. Because of where you are though, humidity is a problem generally in your market, and that's something buyers are aware of. Even in Ontario, we're aware of the moldy condo issue on the BC coast. Buyers will be looking for a house that appeals to them physically but that also has resolved the humidity and mold problems that are common in your area. Before you spend money on a furnace, you should find out what damage has been done to the house already. If you have mold issues, it won't sell, with or without a heat-pump. To find out what you're dealing with, and rectify any issues, you should hire a quality local home-inspector from a nation chain (such as Amerispec) to do a pre-sale Home Inspection. (If it's favourable, you can use it that document to speed up the sale of your house.) I have been told that if you have a chimney that doesn't need to be replaced, it's less expensive and more practical to replace an old mid efficiency furnace with a new mid efficiency furnace, rather than a high efficiency furnace. High E furnaces are used in new construction because they don't require the expense of installing a chimney, not because they are cheaper to operate. In your case, resolving your humidity issues might have to involve a high efficiency furnace with a heat pump. On the other hand, you might be able to resolve it with stand-alone dehumidifiers (which would sell with the house) and a new low efficiency furnace. That's where you need the advice of a heating/cooling specialist who is familiar with the issues in your area. I'd recommend that you bring one in to find out what your options are. Then get back to me with what you find out! I'm interested to hear what they say is the best solution is in your situation. Unlike replacing windows, which is more of a "decorating" chore, replacing a furnace is a big headache for a buyer considering a purchase, especially a first-time buyer. It's part of the infrastructure of a house. Buyers will choose a house with a new furnace over an identical house with a furnace that needs to be replaced. That will translate into a higher sale price for you(because it improves the "condition" of the house) but you will not recover the entire cost of the furnace. I hope I've come close to answering your questions, or have at least pointed you towards the experts who have the answers. |
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I entered a rent to own contract to buy my house in October of 2003. My contract is very clear, and I made the final payment in Sept. 2004. The seller was supposed to sign the house over to me when that final payment was made. I have been living in the house ever since. I have never paid or been asked for rent past Sept. 2004. The thing is, he has made absolutely no effort to come to the village office to sign the house over. I've contacted him countless times over the past 4 years, and each time he has an excuse why he can't. Now, I've discovered that his ex-wife's name is also on the title, so he is saying that I have to find her and get her to sign first and then he will sign it. He also claims he hasn't seen her in 10 years, and refuses to track her down himself. The village office told me that the only thing I can do is to get them both to go there and sign them in front of a notary public, but short of physically forcing them there I dont think that's ever going to happen. I dont know what I can do, I just want the house signed over. I feel like he is waiting for me to just give up and move out, is there any other way I can force it, without having to hire a lawyer because I really cant afford it. (From a small place in Saskatchewan) I have more questions than answers for you unfortunately. If his wife's name is on title, he can't enter into a valid rent-to-own agreement to sell the house without her signature. Your rent-to-own agreement was likely not a legal contract and is unenforceable (which he should have known at the time.) I can't see a way for this to work out so that you get the house, unless the ex-wife turns up. The guy will never be able to sell the house until he tracks her down and gets her off title. I'm wondering why he hasn't done that, or found a way to legally divorce her. There might be some way in Sask to get a court-ordered divorce agreement when one spouse is hiding. If there is such a legal process, someone has to pay for that and, since he hasn't pursued it so far, maybe he's hoping that you'll either pay for a private investigator to find her, or pay his legal fees to get a divorce decree. Does he seem clever enough to put you in a position where you would have to either pay his legal fees or walk away from the money you put into the house? The other oddity is that you've been living rent-free in the house for over 4 years. He could likely convince a judge that you owed him rent for that period. The limit for small claims court in Sask is apparently $20,000 (being raised to $25,000 sometime.) If, after paying him rent back to Sept 2004, how much does he owe you? I'm not sure how much of your monthly payments to him was supposed to go towards the house and how much towards rent. Did you pay for any improvements to the property? If you calculate that he owes you less than $20,000, you can take him to small claims court to get your money back (and walk away from the house.) If it's more than $20,000 you'll have to sue in the expensive courts. Either way, you really do need some legal advice and should not chose any action, or inaction, based on anything I've said here. I'm not a lawyer and I encourage you to get advice from one, even if you're going it alone in small-claims court. I hope it works out for you. It's a strange situation and I'm still not sure I've thought of all of the angles. |
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I have a 4 bedroom home. I use one as an office. We are getting ready to re carpet the bedrooms. Would it be better to put hardwood in the office for resale value. Scott. Indianapolis, Indiana Hardwood is always a buyer-pleaser. The issue is, how will it look compared to the rest of the house? If you're not putting hardwood in the other bedrooms (which is what your potential buyers will think the room really is) then the hardwood is going to make the other bedrooms look cheap. Keep it simple and uniform. Either carpet everywhere, or hardwood everywhere. Carpet is less expensive and makes getting out less expensive for you! |
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(Abridged Email) Im in the middle of a divorce. We have sold our matrimonial home thats closing in a few months but my wife and I have a (newly built) house we purchased previously thats scheduled to close the end of this month. Out of good faith I was willing to have my name removed from title before the last day without penalty but my wife declined for her own reasons. She is willing to take over and assume any obligations of the house, which has been outlined in letters between our lawyers (I assume she will eventually be getting a cosigner because she wont be able to obtain a mortgage without a secondary income)but due to her own reasons she wishes to continue to keep me in the agreement I guess till closing. Because I know that she wishes to have the house its obvious though unspoken that the only way to assume responsibility of house is for her to get a co signer, What are the consequences if I choose not to sign the final mortgage papers? Anonymous from Ontario. I'm not a lawyer so I always qualify any thoughts I offer on real-estate law matters. Your situation involves the divorce laws and they are even more of a mystery to me. Your own divorce lawyer has offered you little enough advice in this matter that you're seeking advice from guys like me online. That's an indication of how complex divorces are even for the lawyers. Your wife is on the other side of this complex chess-match. She's wondering what you're up to by offering to remove your name from the offer on the new house. She's asking her lawyer, but she's getting as many non-answers as you are from yours, most likely. The devil is in the details of the divorce laws unfortunately, and that's not something I even pretend to have expertise in. The information that you need from your lawyer is: what are the consequences for your claim to half of the assets of your marriage when A); you don't sign the mortgage papers or B); you do sign the mortgage papers. Your wife might already have that answer and be planning her next move, or she might be as confused as you and I are. That's not much of an answer unfortunately. Real estate matters are trumped by divorce issues and the latter are way over my head. Maybe I've helped you ask the right questions and find a clear direction the next time you interact with your lawyer though. |
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The title on my house is only on my name so is the mortgage. Now, I am having problem with my second mortgage which is due May, 2009. The private lender wants his money back.I have a poor credit. Can my husband buy my house? Will my mortgage lender allow it? Maria, near Toronto. Generally speaking, you can sell your house to anybody as long as you get enough money to pay off your existing mortgage(s). There might be a reason why you can't do that, in your mortgage terms. Some people choose the lowest mortgage rate without realizing that it comes with a price. You might not be able to get out of the mortgage during the current term, or you might have to pay a big penalty. It's all in the fine print in your mortgage. If he buys, you'll also have to go through all of the legal paperwork that you would with a normal sale. Whether it's your husband or not, the legal work, and your husband's new mortgage, all require the help of an expensive lawyer. Your husband will also have to pay the Land Transfer Tax when he buys the house from you. When you add up all of the costs, you might be in worse shape after it's all over. If your husband has the credit rating to get a mortgage to buy your house, then he also has enough credibility to back you up on the existing mortgage. If you have little equity in the house, and he has assets that could back a chattel loan, you could use his clout to get the money to pay off the second mortagee. I would go to the lender who holds your first mortgage and negotiate a new mortgage ( or keep that mortgage and add a chattel mortgage to it) with your husband either as a co-signer, or as a new co-owner and partner on a new mortgage. This is the first time you've been in this situation. Banks lend money for a living. They've seen it all and within 5 seconds of hearing your story they'll tell you what they normally do in your situation. Banks make money by lending money to people and getting the money, and interest, back. They lose money when they have to take someone's house. That was not their objective in giving you that mortgage. Keep the lines of communication open with your contact wherever you got your mortgage. They got you into the house, and they can get you out of the second mortgage as long as your husband is willing to come in too. |
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My son is buying a house in Pa. that has tested positive for radon. Is it legal to sell a home with radon in Pa? Also is the seller obligated to pay any portion of the expense to have it corrected? Bev, James Creek, Pa I'm not aware of any laws that restrict the sale of houses with radon in any state in the U.S.A. or any province in Canada. I'm not an attorney or lawyer, so I could be wrong though. The issue with radon is that it's a health hazard. A house with proven radon emissions would be considered a less desirable property, meaning the average buyer would pay less for it. If your son is paying a price that is lower than an otherwise identical house would sell for, then the radon has been factored into his purchase price. If he negotiated the deal at the higher price, and THEN found out about the radon, he could be justified in going back to the seller and renegotiating the purchase price. At that point, the seller can decide to either reduce the price, participate in the remedy, or let the deal die. If you're not still at the negotiation stage, you'd have to get the attorneys talking to get that done. Outside of the details of the purchase agreement, which is a contract between two parties, there's nothing else that says a seller has to pay to fix things. Consider your son lucky. There a millions of people living and relaxing in radon-infused basements who don't have a clue that it's there. |
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Do I have to tell my real estate agent my basement leaks. s, somewhere in ontario It's tempting to hide the faults in something you're trying to sell, but because of the amount of money people pay for a house, it makes them crazy when they think they were ripped off. You need to make sure that your buyer knows that the basement leaks. If you trust your Realtor to pass that information on, that's great. You might have to cover your own butt though. Your Realtor should insert a clause in your agreement of purchase and sale that says something like: "The Buyer acknowledges that there have been past incidents of water intrusion into the basement. The Seller makes no representations or warranties about the ability of the basement and foundation to repel groundwater in the future." Your house will sell for less than an identical house in your neighbourhood that does not have a leaky basement. The money that you will lose on the sale will be dwarfed by the court award and legal fees (yours and the buyer's) that you will pay if you lie about the leaky basement. The leak won't stop when they move in. The good news is that there seems to be fewer houses on the market right now, but still the same number of buyers out there. It's unfathomable, but despite the state of the economy, it's a really good time to try to sell a house! Even one with a leaky basement. |
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We have a narrow walkway between our two houses in old toronto. The other house extends 9 feet past mine in the back. The owner say they are entitle to 4 feet of my backyard, so they can have room for a wheelbarrel. My survey and original description of the land doesn't show any right of way or easement. They are arrogant and I built my fence along the nine foot part from the cornor of my house on. They now call this their shared fence. During recent work they carried out, we live on a hill, tones of concrete through our narrow walkway. During landscaping and all the soil, grave travelling through this narrow space, I requested that they place particle board along my brick wall to replace it. They felt that this was an unreasonable request . do I have any rights. This back section is my backyard and they feel entitle to do whatever they want even without easement on title. Marj, Toronto When people tell me they are entitled to do something, I say "Show me where it says you have a legal right to do that." If they're wrong, that usually stops them in their tracks. Your neighbours have no legal right to be on your property. If they did, it would be on your deed, and marked on your lot survey as an 'easement,' as you know. If they are coming onto your land, they are trespassing. You will need the help of Toronto Police to explain to them that they can't do that. When you call 911, say that you need help with a "dispute between neighbours." They will send someone who can help. If the neighbours damaged your house in the process of trespassing on your land, you can recover the costs of repairing it in small claims court. You will need estimates from 3 reputable companies. Photographs will help. You don't need a lawyer for small claims court. Yours is the kind of story that scares first-time homeowners and stops them from buying. Most neighbours get along. Sometimes though, you end up with a nutcase next door. The only hope I can offer is: if they're that bad as neighbours, they're also that bad on the job. If they perform that badly at work, they will likely lose their job, and have to move, sooner than later. The average family moves every 5 to 7 years. They will be gone long before that I bet, or you will. If you move first, and buy somewhere else, use a buyer-agency Realtor like me who knocks on the doors in the neighbourhood when his buyers are ready to buy. I ask everyone on the street where the nutcase in the neighbourhood lives. Every street has one. If he's the nextdoor neighbour, we keep looking. |
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I am looking into buying acreage in Nova Scotia or Ontario. I am interested in building my future home using natural materials and alternative technologies- things that are unconventional and not covered in the building code. Because there are great costs in having an engineer involved, and because my partner and I are competent builders and would like to avoid the hassle of dealing with building departments, I am trying to find information on unorganized townships. I gather that in Ontario, being in an unorganized township means that there are no building permits. Do you know if there are any unorganized townships in the Maritime provinces, or places that are less strict about what one builds? Amanda, Stratford. I have only been to Nova Scotia once, on a road-trip with my parents. I remember lots of fog, lots of hills, and lots and lots and lots of seagulls. I was only 8 years old though so I might have missed the more important aspects. We lived in Northern Ontario at the time, which is full of unorganized townships. There are no municipal bylaws to govern how houses are built in them, but the land is under the control of the Ministry of Natural Resources and the Ministry of the Environment. They have their own rules. You can't plunk your outhouse down just anywhere, or build your cabin on a shoreline just because it suites you. In the normal world, zoning bylaws are designed to control growth and keep things uniform. They only control where the house is on the lot, or what use you put the property to. (No cows in a residential zone, etc.) The laws that apply to a wider area (provincial or national fire/building codes) have other intentions. If you don't comply with them, it could cost you money. It could also cost you your life. If you've watched Holmes on Holmes, or similar TV shows, you'll understand how buyers are reluctant to buy a property that has been built or renovated without permits. You can circumvent the system, but unless you're planning to live in your straw-bale house until you die, or until the big bad wolf blows it down, you're going to have trouble selling it if you don't have certificates to confirm that it was built and inspected and passed under the applicable building codes. On a more sobering note, I did a training session that changed my perception of the beaurocracy behind all of these rules and regulations. I learned that every rule and regulation in the Fire Code is there as the result of a death and a recommendation by an Inquest Judge or Jury that there should be such a regulation or rule to prevent that deadly situation from occurring again. I haven't been to a similar session for the building code, but I am confident that it has evolved as a result of construction mishaps, although not with deaths, just collapses, I hope. I consider myself to be a "green" guy and I like unconventional stuff. (I was the first one to have solar panels where I lived up north.) I applaud your intentions to build something earth-friendly and alternative, but I encourage you to build something that is also code-friendly. You'll be able to sell it with those inspection certificates, and it won't kill you, or your descendents. The people who hand out the certificates are human too. They're also not stupid. If the building code doesn't cover the technology you're using, they can help you get the engineering inspections that will get your house passed. You just have to talk to them and get them on your side. |
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I live in ontario canada and am wanting to buy in another province. Could you please tell me if i am better off getting a mortgage her in ontario for it or in the province i am planing to buy in. Randy, Toronto Real estate agents deal with houses. People think we should know everything about mortgages. We know the basics, but the people who are the best at answering questions as detailed as yours are Mortgage Brokers. I'll refer you to one in a minute, but I'll think out loud for a minute so you have more to chew on before you talk to them. In the new province, your first obstacle would be your employment history. Most banks won't accept a substantial mortgage from someone unless they have been on the job there for at least a year. If your mortgage is substantial, you could get a mortgage from a Toronto bank but, if you're planning to change jobs, you would be committing mortgage fraud by not being truthful about that in your mortgage application. If you were, would they finance a house in another province? I have no clue to be honest. My gut instinct is, no, though. If onedieseldog (his email handle) is a long distance trucker, or in some other position where he will be working for the same company, he's good to go with the Toronto bank, or the other province's banks too. In that case, I'm not sure what your best option is. There is someone who does though. If you visit yourmortgageplanners.com and give them a call or send an Email, they can answer your question, and most likely get you the mortgage you need. They don't know me and I don't know them, in case you were wondering. Banks lend out the banks money. Mortgage Brokers deal with the same banks, but they also deal with investors looking for better ways to earn interest on their money. They are a good place to go looking for someone with a square peg mortgage when there are only round holes at the bank. |
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If someone co-signs for you on a house mortgage are they entitled to owning the house after you have passed away? Even if the deed is in your name, and the co-signer is listed only as a co-signer? What are they entitled to. If anything. What rights do they have in the houe when they co-sign??? Thank You. Patricia, New Brunswick The co-signer gets nothing out of co-signing. They don't own part of the house, or have any claim to it at any time. They don't have any right to influence what happens in, or to, the house while you own it. It's a crappy deal for the co-signer when you consider it. If the homeowner defaults on the mortgage, the co-signer is legally obligated to make the payments on the house or pay off the mortgage. Even when they do that, they don't own the house. You still do. I would never in my wildest dreams co-sign for anyone. If you've found someone to co-sign for you, be grateful that they were willing to take on that responsibility. They're a true friend. |
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Apparently my deed has been missing for some time, how can I get a replacement. I live in the Scarborough area. After trying to find the answer to your question online, when I already knew the answer, I can appreciate how frustrated you must have been when you tried to find the answer yourself. Your deed is kept on file, permanently, at your local land registry office. Toronto (Bilingual) Land Registry Office No. 64 & 66 -- REG, LT, ER 20 Dundas Street West, Suite 420 Box 117 Toronto ON M5G 2C2 Tel: (416) 314-4430 Fax: (416)314-4453 I think, but I'm not sure, that that is where the Scarborough records went when they amalgamated the cities to create the Megacity. |
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I recently cancelled my listing with my real estate agent- the listing would have run out on July 3rd- I have an interested buy who came through with that agent and has now cme back to me as I have the home for sale by owner- how long do I have to wait before I can sell without paying any commissions- Shirley, Calgary. Technically you can sell your house without paying commission before the listing expires BUT you have to be able to prove that the buyer did not see the house, or become aware that the house was for sale because of the Realtor's activities. That's basically someone who just arrived from another continent and didn't go looking on the internet before they moved to Canada. In your case, your buyer came through the house while it was still listed. The Broker can sue for the commission if you sell the house to that buyer prior to July 3rd, and then during the "holdover" period after July 3rd. The holdover period is usually 60 or 90 days, depending on which Real Estate Board you're in. You can find that in your listing contract. Congratulations on having a buyer waiting in the wings in such a tough market! Thanks for answering my question on selling to a previous "looker" that came through with the realtor -the home is now for sale by owner- you mention the 60-90 day period where I could still owe commission- I signed a termination agreement-option C- "to be used where the parties want to sever their relationship with no ongoing obligations" does this get me off the hook?? Thanks-Shirley We use termination agreements so rarely that I have to say I have no idea how much of the listing agreement is wiped out when you sign one. You've crossed over from an area that I can comment on to one where only a lawyer can offer advice on what to do with your buyer. If you don't have a lawyer, hiring one to advise you now could keep you from losing that buyer. Make the call before you make a decision based on anything I said! |
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how can our mother protect herself legally if it doesn't work out living beside our brother, her adult son and her daughter in law, if things don't work out and she has to move out? Can our mom get back her downpayment if things don't work out and she ends up moving out of the semi-detached that they want her to pay for the downpayment? Sammy, Ontario I think the solution to your problem is going to be a lack of money. How is your mother going to finance the purchase of two houses in Toronto? When you buy a semi, you don't get both halves. You only own one half. For her to buy a semi for herself, and a semi for your brother, she'd have to come up with at least $600,000 for 2 typical Toronto semi's. How is a retired woman going to make the mortgage payments on that huge mortgage? Even if she could get financing, when she dies, the only way to pay the mortgage down is to sell both properties. Then your brother is out on the street, again. Have her talk to a mortgage broker in Toronto, and find out what the mortgage payments are going to be, or if she can even get one. The obvious solution is to sell in the town she lives in, and buy in the town she lives in. You should be selling your house, and combining your proceeds and hers, and buying a place together. Let me know how it works out? |
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my neighbor had an oil spill , I have been out of my house for 19 days, besides regular expences am I entitled to any other compensation. such as loss of use and enjoyment of my property for that period of time: kevin, nova scotia South of the Canada/USA border, you would be able to sue and get compensation for your pain and suffering and emotional upset. Judges north of the border aren't so sympathetic. They say "Just get over it." I guess they expect us to be tougher up here. Since you're asking me, and not your lawyer, I assume that you're only dealing with your neighbour's insurance company at this point. The passive move is to accept what they offer you. They will pay you for things that you can produce receipts for, such as the hotel and meals. The other extreme is for you to sue your neighbour (therefore your neighbour's insurance company) for compensation for your suffering and inconvenience. That's the path our American cousins would go down, but in Canada your legal fees would most likely be 10 times higher than anything a judge in Canada would award you. There's an option in the middle though, that might be of use to you. You have insurance on your property, and an insurance company with lawyers on staff who go to work for their customers, meaning you. Your insurance company, unless there is a clause in your contract saying they don't, is insuring you for losses from new toxic waste contamination on your property. If the spill next door can potentially drift over and contaminate your land, then your insurance company would want to be involved at the beginning to prevent that from happening. In the process of dealing with the lawyers at your neighbour's insurance company, you own insurance lawyers can try to negotiate some sort of payout to you for your inconvenience, above and beyond the tally of the receipts you will submit. It's surprising what can happen when you get lawyers talking to each other. They're like clubhouse members with secret handshakes, even though they're supposed to be on opposite sides. In a lawsuit, they battle in the courtroom, then go out for drinks together at the nearest bar. Your first step, if you haven't already done so, is to call your insurance agent and get them working on your situation. They can get the ball rolling and potentially get you compensation for your inconvenience. The operative word though is 'potentially.' It depends on who's doing the talking and who's doing the listening, and how well they intimidate each other. You see it in your own work, or life. Some people get things done, and some don't. Having said all of that, I'm not a lawyer. Please consult with one before choosing or not choosing any course of action based on anything I have said here. (My lawyer makes me say that.) |
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The house next door is vacant and up for sale. A Reailtor has the listing. It has been brought to my attention that a huge split oak tree in their side yard is rotten inside and leaning at such an angle that it is in danger of falling. We are now in the hurricane season. I have called five tree surgeions and the city arborists to the site. They all agree that the three needs to be cut down but no one will call the Realitor. I called the agent for the house and she is not cooperating with me. She called the ownsers and stated that I had a problem with the tree and they did not come out to look at the tree. She will not give me the home owners address to send a certified letter. She wants the city or the arborists to call here, which they will not do either. I find her behavior to be bizzare. Where do I go from here. Would my lawyer do any good or should I just wait for the tree to fall and damage my house. I have a high deductible on my insurance. I need advise. Alice, Tampa. The problem so far seems to be that, out of all of the people you've tried to resolve the issue with, you are the only one who will suffer if the tree falls. It's interesting that you mention your insurance deductable in your last sentence. Your insurance company is the only one who will lose more than you will if that tree falls. There is no way the cost to repair the damage from that is going to be less than your deductible! Your attorney can't help much, without wasting a lot of your money. Your next call should be to your insurance agent. They will advise what your best next move is within the laws of your country, state, and city. If it takes legal action to get it resolved, then the insurance company's attorneys will possibly do the work, for free (well, less your deductible maybe.) If you were being sued for something that your insurance would pay for, the insurance company's attorneys would do all of the legal work. I'm not sure if it's just a risk, if it's the same story. Please let me know what you find out, and how it works out?! |
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