Archive for the 'Definitions' Category
What You Should Know About the Rental Disclosure Statements
September 2nd, 2010 Categories: Definitions, Real Estate, Vancouver
The Real Estate Council of British Columbia points out that there have been recent changes to the Rental Disclosure Statement, as of June 2010, which is part of the Form B that is provided to Vancouver Condo Buyers , from the strata building’s property manager, and is incorporated into the strata docs.
The exemption from a rental bylaw that occurs for all strata lots identified on a RDS has been significantly extended for those developments where the RDS is filed after December 31, 2009. The RDS will apply to exempt all strata lots named in the RDS from the application of a rental bylaw until the RDS expires. In other words, during the period the RDS is valid, a Strata Corporation will be unable to enforece a rental restriction. Read the rest of this entry »
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Date of Final Acceptance on Contract of Purchase and Sale
January 8th, 2009 Categories: Definitions
Contracts of Purchase and Sale often contain a clause that the deposit is due within a certain time after acceptance of the contract. Therefore, the final acceptance date becomes important as to when the deposit is due for deposit in the brokerage’s trust account.
WHEN THE OFFER IS INITIALLY MADE BY BUYER it’ll be open for acceptance until a certain time. There should always be a time inserted.
IF SELLER ACCEPTS ALL TERMS, EXCEPT PRICE, they sign and date their acceptance and counter the price. Seller’s counter-offer is open until a specific time.
BUYER REVIEWS COUNTER OFFER and counters back the price, with an open for acceptance date.
SELLER ACCEPTS BUYER’S COUNTER OFFER and initials the price change and time change. This then becomes the final date of acceptance and starts the clock with respect to the requirement for the deposit. For instance, the clause “$1000 deposit upon 24 hours of acceptance of offer”.
Real Estate Council of BC requires that the managing broker ensures that all parties to an agreement giving effect to a trade in real estate are immediately notified if a) a deposit has not been received as per the contract or b) a deposit cheque received by the brokerage has not been honoured. Council Rules require a Notice must be given in writing.
Have a question regarding deposits? Contact Maggie, an experienced realtor marketing Vancouver homes since 1981
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Honest Answers to Property Disclosure Statement
January 1st, 2009 Categories: Definitions
Edward L. Wilson of Lawson Lundell wrote this article for BCREA regarding the full an d honest answers to the property disclosure statement that sellers must complete when selling a property in British Columbia.
In a recent Ontario decision the Court considered the Ontario Seller Property Information Statement (SPIS). As a result of ice build up a house had water damage that had been largely , but not completely, repaired. When selling the house later that year the Seller completed the SPIS with the following 3 questions that addressed the issue of water problems or damage:
*are you aware of any moisture and/or water problems? *are you aware of an damage due to wind, fire, water, insects, termites, rodents, pets or wood rot? *are you aware of any roof leakage or unrepaired damage?
The sellers raised the water issue with their agent, who dissuaded them from disclosing and making two points: the language of the question was in the present tense and there was no water damage at the time of signing the form.
The buyers found out about the water damage prior to closing and refused to complete the transaction. The house subsequently sold to another buyer at a lower price and the seller sued the first buyer for damages for failure to complete.
The Court found no rational argument for a “present tense” or “current” interpretation of the questions above and said the answers had to be complete and accurate and concluded the questions should be given a plain and common sense reading. The ourt concluded the answer “no” to the 3 questions was untrue but implied that if a “no” was checked off and further information about the damage and repairs had been added in the additional comments section, a different conclusion may have been reached. The Court found that, in light of the sellers’ failure to disclose the damage, the buyers had a right not to complete the transaction.
The purpose of the PDS is to put the purchaser on notice of a problem. If there is a problem, the PDS raises questions and concerns, rather than providing detailed answers. If in doubt whether something should be disclosed, it probably should be disclosed and, if appropriate, further details added to the additional comments section.
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when you’re ready to buy or sell Vancouver real estate, contact Maggie, an experienced realtor marketing homes since 1981
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Tax Benefits of Losses
November 25th, 2008 Categories: Definitions
The Canadian Institute of Chartered Accountants provided the below information relating to Tax Benefits of Losses.
Taxpayers may use losses to reduce their tax liability in the same, earlier or later taxation years, subject to certain limits and conditions. The limits and conditions largely depend on the character of the particular loss, with different rules applying to the particular type of loss.
This article discusses some considerations in the tax treatment of: allowable capital losses, allowable business investment losses and non-capital losses.
Allowable Capital Losses you have an allowable capital loss when you sell, or are considered to have sold, a non-depreciable capital asset (say an investment or real estate) for less than its adjusted cost base plus the outlays and expenses involved in selling the property. In other words, the capital loss arises becuase the amount realized from the sale of the asset is less than its purchase price. The allowable capital loss is deducted against any taxable capital gains you have. Generally, one-half of the capital loss can be offset against one-half of the capital gain. Hoever, allowable capital losses usually cannot be offset against oher income sources, such as business income or earned income.
The adjusted cost base is usually the cost of a property plus any expenses you incurred to acquire it, such as commissions and legal fees. The cost of a capital property is its actual or deemed cost, depending on the type of property and how you acquired it. Cost also includes capital expenditures for additions and improvements. However, you cannot add current expenses, such as maintenance and repair costs, to the cost base of a property. Read the rest of this entry »
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The Pros and Cons of Longer Versus Shorter Amortizations
July 4th, 2008 Categories: Definitions
Choosing the length of your amortization period, which means the number of years you will need to pay off your mortgage, is an important decision for Vancouver home buyers that can affect how much interest you pay over the life of your mortgage.
Historically, the standard amortization period has been 25 years. However, shorter (10 or 15years) and longer (up to 40 years) time frames are also available. A shorter amortization saves you money as you will pay less in interest costs over the life of your mortgage. Your regular mortgage payment amount would be higher than if you had selected a longer amortization, as more of your payment goes towards paying down your principal balance. However, the benefits are that you build the equity in your home faster and are mortgage free sooner.
A longer amortization provides you lower monthly payments and because of this it is appealing to many people. However, it does mean that more interest will be paid over the life of the mortgage and you will build the equity in your home at a slower pace. Read the rest of this entry »
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Should I Sell My Vancouver Condo First And Then Buy? Or Vice-Versa?
July 3rd, 2008 Categories: Definitions
What is the best way to sell and buy another Vancouver condo?
It’s a first time sellers dilemma. When you left the rental market and bought your first condo it was easy. Now you must figure out how to get your equity out of one condo so that you can purchase another one. A recent client experienced this situation, so I thought it would make a good blog post.
Buy first then sell? Sell first then buy? It is a question I am often asked by first time sellers.
My answer to you is that your decision depends on a number of considerations.
What is your personality? How risk adverse are you? What are the current Vancouver market conditions, is it a buyers or sellers market? Are you purchasing a brand new condo or a resale condo. can you secure bridge financing at the bank? Read the rest of this entry »
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Latent vs. Patent Defects and Property Inspections
May 21st, 2008 Categories: Definitions
The BC Supreme Court case of Cardwell v. Perlien provides an interesting overview of the current state of the doctrine of caveat emptor (”let the buyer beware”)
The distinction between latent and patent defects is important, because sellers are obligated to disclose material latent defects that they are aware of, but buyers are expected to discover patent defects on their own. Patent defects are described as those that can be discovered by conducting a reasonable inspection and making pertinent inquiries about the property.
Significantly, however, the judge goes on to say that a “defect which might not be observable on a casual inspection may nonetheless be patent if it would have been discoverable by a qualified person…In some cases, it necessitates a purchaser retaining the appropriate experts to inspect the property…” Read the rest of this entry »
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Three Facts You Should Know About Vancouver Condo Fees
May 1st, 2008 Categories: Definitions
In Vancouver, condominium fees are paid monthly and cover all the expenses that relate to the condo corporation’s expenditures.
These expenses include insurance on the building, property manager’s fees, gardening, garbage collection, water, maintaining the common property, concierge, upkeep of the amenities, caretaker’s salary, repairs and maintenance to the building and a contribution to the reserve fund. These items are set out in an annual budget and voted on by the condominium owners.
Did you know you can search for condos on this site? Read the rest of this entry »
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10 Questions to Ask a Seller’s Agent Before You Hire Them
April 13th, 2008 Categories: Definitions
Selling your home or investment property?
Perhaps it’s been a while since you last did this and you no longer have a working relationship with a realtor, so you need to find another one. No doubt you will interview 2 or 3 Realtors. I have made a Top Ten list of questions to ask a seller’s agent. Read the rest of this entry »
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Two Easy Vancouver Condo Improvements For a Faster Sale
March 31st, 2008 Categories: Definitions
Paint is your best improvement investment for getting a greater return on your money
Paint makes the whole property smell clean and neat. If your house has chips, exposed wood or looks faded, it is time to paint. If your carpet is worn, dirty, outdated or an unusual colour, you may need to seriously consider replacing it. Many houses do not sell because of this problem. Don’t think that buyers have more money than you have to replace it. They don’t…they simply buy elsewhere!!
Think of prospective buyers as your guests and prepare your home’s interior accordingly. Keep these points in mind…
*fresh paint
*clean up clutter
*clean kitchen
*make bathrooms sparkle
*clear out closets
*clean the fireplace
*roll out the welcome mat
*add special accents to make your house appear comfortable and inviting. Think of prospective buyers as your guests and prepare your home’s interior accordingly.
Clean Facts – Most people are turned off by even the smallest amount of dirt or odour when buying a resale home!
Sellers lose thousands of dollars when they sell because they do not adequately CLEAN! The perception in the buyer’s mind…lots and lots of work which translates into money!
If your house is squeaky clean, you will be able to sell your house faster and net hundreds, or thousands, of dollars more. If you are planning on moving, why not get rid of that old junk now, so that your house will appear larger? Make more space. Odours must be eliminated, especially if you have animals, or smoke. You may not notice the smell, buy buyers do!
Most realtors have a difficult time communicating to their sellers about odour. By employing me to get the most amount of money for my sellers, do not take offense if I must confront you about odour problems.
Freshen your kitchen by sending a lemon through your blender or garburator. Sweeten your fridge with a box of baking soda. Add some fresh flowers to the living room. Spray the bathrooms with lavender!
If this is too much for you to do, hire a staging company.
Weigh in! What improvements work best for you?
A clean home is a saleable home!
when it’s time to sell your Vancouver condo, talk to Maggie
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