Tuesday, June 28, 2011

Powers of Attorney and Real Estate Transactions

Powers of Attorney and Real Estate Transactions
                                   
Power-of-attorney
A power of attorney can often be a useful tool when a party is unavailable or does not have capacity to sign real estate documents whether they be transfer or mortgage documents.  However, there are a number of pitfalls, including those discussed below, of which all parties involved should be aware to ensure that the transaction goes as smoothly as possible.

First, not all lenders will accept documents signed under a power of attorney.  As a result, where mortgage documents are involved, it is best to consult with the lender early on to determine whether a power of attorney is an acceptable tool.  In other cases, the lender may require that the power of attorney be prepared by a lawyer and be limited to the particular transaction involved. It is best to know these requirements ahead of time so that no problems arise when it is time to execute and register documents.

A second issue that arises with a power of attorney is dependent on who the property is being transferred to.  A party who acts as the attorney under a power of attorney cannot transfer an interest in the property to themselves unless the power of attorney specifically contemplates such a transfer being made.

Third, a power of attorney must be properly drafted in order for the Land Title Office to accept it.  It is important to try to get the power of attorney registered as early as possible to ensure that it meets the Land Title Office requirements.  This can be done prior to the documents being signed by the attorney and, if possible, this is the best way to make sure the power of attorney will work. 

Although powers of attorney can be useful tools it is important that they be prepared properly and that any applicable issues be considered to make sure the transaction proceeds as expected.

This article includes general information only and should not be relied upon.  It is recommended that you should seek specific legal advice relating to your transaction.  If you have questions about this or any other real estate matter, please contact Trever Florko of Century 21 Assurance realty (contact info below) or Una Gabie at Pushor Mitchell LLP by phone at (250)869-1230 or gabie@pushormitchell.com

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
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PS. Your referrals to friends and family are always greatly appreciated and rewarded.

Monday, June 27, 2011

#painting with my girl on the deck on a summer night

What could be better!

Photo1

Sent on the go from my iPhone
TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
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Litigation against Strata Corporations: The Impact on Purchasers and Real Estate Transactions

Litigation against Strata Corporations:  The Impact on Purchasers and Real Estate Transactions

About
In addition to any concern or interest a purchaser may have with respect to litigation by or against a strata corporation for a property they are interested in buying, if a strata corporation is involved in litigation, purchasers, mortgage brokers and realtors should be aware of the potential complications that can arise in the completion of the transaction.  


As part of the lawyer’s process in acting for a purchaser, the lawyer obtains a Form B Information Certificate from the Strata Corporation which provides some basic information about the strata corporation including, among other things, the balance of the contingency fund, strata fees paid with respect to the unit and whether strata fees are up to date.  


In addition to those items, the Form B Information Certificate includes a question of whether the strata corporation is involved in litigation.  If this question is answered in the affirmative, there can be difficulties with obtaining financing for the purchase of the property.  In some cases, such outstanding litigation can be a concern for both the lender as well as mortgage default insurer (if applicable).  


In circumstances where there is outstanding litigation, it is very important to identify these issues and raise them with the lender and mortgage default insurer as early as possible and prior to removing a financing condition.  Where approval of such circumstances is obtained prior to removing the financing condition, it will help prevent issues arising when the closing date is looming.  


In situations where these issues are not brought to the attention of the lender and default insurer ahead of time, there is a potential for the lender to refuse to fund with very little notice thereby potentially leaving the purchaser in default of his or her contractual obligations to complete if they are unable to secure financing at such a late date.    

This article includes general information only and should not be relied upon.  It is recommended that you should seek specific legal advice relating to your transaction.  If you have questions about this or any other real estate matter, please contact Trever Florko of Century 21 Assurance realty (contact info below) or Una Gabie at Pushor Mitchell LLP by phone at (250)869-1230 or gabie@pushormitchell.com

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
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Follow my BLOG

PS. Your referrals to friends and family are always greatly appreciated and rewarded.

The view from the listing I just sold to some very excited buyers!

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Great view of the 4th green at 2 eagles golf course, mission hill winery and lake Okanagan! WOW STELLAR!! Sent on the go from my iPhone
TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
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Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

Friday, June 24, 2011

I just turned over keys to some very happy buyers! Welcome to Peachland!!

Welcome to the Sunny Okanagan!!! I just turned over keys to some very happy buyers! Welcome to Peachland!! They are thrilled at their new home and the super price they got it for! I love my job!!!
Beach_2
Top floor condo, SEMI-WATERFRONT complex "Lakeshore Gardens" lakeviews from the deck, vaulted ceiling, gourmet kitchen with maple cabinets & granite counters, gas F/P, 2 bdrms, 2 baths 1187 sq ft 2 decks with SW exposure, laminate floors, nice layout, laundry room, large master bedroom with a walk-in closet and french door to the deck, a private 2 nd deck off the other bedroom, the complex has an outdoor pool & hot tub, gym, 2 guest suites, beautiful landscaping, secured entry & parking, storage locker

Beach

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
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PS. Your referrals to friends and family are always greatly appreciated and rewarded.

Thursday, June 23, 2011

New Listing! 5bed 3bath .70acres ONLY 400k! 2342sqf

To View 21 High Resolution Photos Please Visit:
www.1705HollywoodRoadSouth.com

Spacious 5 bedroom, 3 bathroom home on 0.70 acres.  Totally finished 2342 square feet up and down with full double garage. Bright, Fresh, Clean  and move in ready! Short walk to the Mission Greenway and the new Mountain Bike Skills Park.  HUGE private fenced yard with two sheds, rock gardens, grape arbor and very PRIVATE deck. Connected to sanitary sewer.  Price includes all appliances, built in vacuum and window coverings. Close to bus and schools; convenient to shopping, downtown, beaches and skiing. An ideal family home in a great location. To set up showing call Trever (250)859-5990 or Jason (250)808-7700. To View 21 High Resolution Photos and get tons more informations visit: http://www.1705HollywoodRoadSouth.com

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK
Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

PS. Your referrals to friends and family are always greatly appreciated and rewarded.


Wednesday, June 22, 2011

There may be over 1,000 condos for sale in the Central Okanagan but this beauty is no longer one of them! ;-)

Sky

There may be over 1,000 condos for sale in the Central Okanagan but this beauty is no longer one of them! ;-)
If you have a condo you want to sell give me a call! 

Kelowna's Downtown Living At Waterscapes

Check out this North West Corner unit at prestigious SKY Tower at Waterskapes. Enjoy the Stellar views of Lake Okanagan, the wildlife reserve, the park and Downtown Kelowna from this 7th floor condo through the many floor to ceiling windows! This huge unit boasts 2 oversized bedrooms plus a very large den. The kitchen is fully upgraded and includes all stainless steel appliances and gas range. The complex come equipped with a large number of amenities to give you that ‘on vacation’ feeling which is so sought after in the Okanagan. Amenities include a pool, 2 hot tubs, a gym, billiards room, common kitchen and entertaining areas. SKY is also located right across the street from Sandy beach and walking distance to many restaurants, wine bars, clubs, sport and concert venues, galleries, parks, shopping and most importantly Lake Okanagan and the beach! This unit is the best priced unit and is just waiting for you to move in and live the dream...Impress your friends...buy this home!!

Walking distance to: Cultural DistrictPublic Library,Prospera PlaceCasinoShoppingFine DiningWaterfront ParkKnox Mountain and Public Beaches.

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
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PS. Your referrals to friends and family are always greatly appreciated and rewarded.


Wednesday, June 15, 2011

What Documents will you need to get together for your Mortgage Broker/Specialist or Banker to help secure your Pre-approval?

What Documents will you need to get together for your Mortgage Broker/Specialist or Banker to help secure your Pre-approval?

Mortgageapp

When buying a new home or refinancing your existing mortgage, some documentation is needed to support your mortgage request. By providing your Mortgage Broker or Mortgage Specialist with the documents on this list below, you can finalize your mortgage more efficiently.

Buying a home?
Information that describes the property you are buying: 
__ Purchase and sale agreement 
__ MLS listing with photo
__ Name, address, telephone number of your solicitor/notary. 
(As your Realtor I will get most of this to your Mortgage Broker.)

Confirmation of your down payment:
__ Savings or investments statement from within the last 90 days
__ Sale of an existing property - a copy of the sale agreement
__ Gift letter 
__ Withdrawal from RRSP through Home Buyer’s Plan

Employment verification:
__ Copy of latest pay slip 
__ T4 
__ Letter of employment 
__ T1 General and Notice of Assessment
(NOA) if self-employed

Do you currently own your home?
Information that describes your existing property: 
__ Recent mortgage statement 
__ Current homeowner insurance policy 
__ Most recent property tax
bill/statement 
__ Legal description of your property (you can find this on your original purchase agreement or your property tax statement)

Other information we may require
As part of your application process, we will ask you questions relating to what you owe and own, what some of the projected expenses relating to the property are, such as taxes, heating costs and condo fees, and whether you will be using the property to generate income.

__ Void cheque 
__ ___________________________
__ ___________________________

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
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Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

PS. Your referrals to friends and family are always greatly appreciated and rewarded.

Tuesday, June 14, 2011

NEW PRICE!! This Home is STEPS to the BEACH and only 75K!!!!

2 Minute walk to the BEACH!!!

To View 21 High Quality Pictures Please visit http://www.261SandyBeachResort.com

This 3 bedroom 1128sqf mobile is just steps to the beach in fact it is only a 2 minute walk to the lake! Enjoy the Okanagan lifestyle on the extra large deck or entertain guests in the updated and open concept Kitchen. This mobile boasts large bedrooms, a huge yard, AC wall units, stainless steel appliances, built in stove and oven, a wood burning stove and a great 16x14 foot shop! Call today to set up a viewing!

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK

Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

PS. Your referrals to friends and family are always greatly appreciated and rewarded.


Housing Affordability Update

Housing Affordability Update

Images

Canadian housing affordability eroded in the first quarter of 2011, following improvements in the last half of 2010, according to the latest Housing Trends and Affordability Report
 report released by RBC Economics Research. Home price gains in the majority of Canada's key markets were the main driver of the decline in housing affordability, while flat mortgage rates played a neutral role this time. In the previous two quarters, declines in mortgage rates were the principal source of improvement in affordability.

"We expect that the Bank of Canada will soon resume its campaign to normalize its’ interest rate policy, which will adversely impact housing affordability in Canada," said Robert Hogue, senior economist, RBC. "Continued growth in household incomes, however, will likely soften the blow."

The RBC housing affordability measure captures the proportion of pre-tax household income needed to service the costs of owning a specified category of home. During the first quarter of 2011, measures at the national level inched higher thus representing a decrease in affordability.

What does this mean for you?

If you are looking to buy a home in the near future you should consider getting pre- approved for a mortgage.  A pre-approval provided by an mortgage specialist, will guarantee your rates on fixed term mortgages for up to 120 days.  Not only will you know how much you can really afford, but you’ll have our guarantee that if the rates increase in the next 120 days your rate will not. Then give me a call or send me an email

 list of what you are looking for in a home I will get the search started. Things like price range, area, number of bedrooms/bathrooms, age of home, suite(y/n), view(y/n), and basically anything else that would be important to you in a home would help me out immensely.


I am often made aware of homes that are not yet listed or are soon going to be listed for sale a few days before they hit MLS so I can alert you to any deals before the rest of the crowd of buyers are even aware of them…I also hear of deals from many other sources and if they make sense for you I will pass them on. Thanks for your time and I hope to hear from you soon. 

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK
Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

PS. Your referrals to friends and family are always greatly appreciated and rewarded.

Sunday, June 12, 2011

You don't see these everyday. Super cool and I want one!!

Photo1

Sent on the go from my iPhone
TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK
Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

Saturday, June 11, 2011

Easter Seals 24 hour relay!

Sending special needs and disabled kids to summer camp!

Photo1

This is my view while running laps for a great cause! Easter seals sending special needs kids to Summer camp at camp Winfield! Century 21 assurance realty kelowna has been the biggest money sponsor of easter seals in kelowna for over 5 years! This is my fourth fifth Easter Seals 24 hour Relay at the apple bowl in kelowna and it is a super fun event fir everyone! .... And of course it's all for a great cause!!!

Sent on the go from nh iPhone
TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITEm nyjyyy
Follow me on TWITTER
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Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

Tuesday, June 7, 2011

NEW PRICE! 1 BEDROOM TOWN HOME IN THE LOWER MISSION NOW ONLY 164K

3175 De Montreuil Court 207
Kelowna, BC V1W 3W2

$164,900

Property ID: 100683340

Willowbrook Gardens In The Lower Mission

Come see for yourself why Willowbrook Gardens offers the lifestyle you want without the huge price tag to go with it! This amazing 1 bed, 1 bath condo is centrally located to all the amenities. Recent upgrades include: laminate flooring, light fixtures, paint and more. Truly an ideal investment property for a student or first time home buyers! Conveniently located across from Okanagan College.

Nearby amenities are: H2O Adventure CentreCapital News CentreMission Creek GreenwayKelowna General Hospital, Boutique Shopping, Strip Malls off Gordon Drive and Lakeshore Roads, BC Transit , Public Parks and Beaches.

Nearby Schools are: Raymer ElementaryKLO Middle School and Kelowna Senior Secondary.

TO SET UP A VIEWING OR GET MORE INFO PLEASE CALL TREVER @ 250-859-5990
TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK
Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

PS. Your referrals to friends and family are always greatly appreciated and rewarded.


Monday, June 6, 2011

GREAT NEW LISTING 250 Gemini Road...HUGE PROPERTY WITH TONS OF PARKING!!

GREAT NEW LISTING 250 Gemini Road...HUGE PROPERTY WITH TONS OF PARKING!! Only $425,000!!

Your search ends here as this is the home you have been waiting to buy!  Clean nearly 2,000 sq/ft 4 bedroom, 2 bathroom home in quiet family friendly neighbourhood.  Massive fully fenced yard with enough room to park an RV, Camper, Boat and more!  Lots of natural daylight and ample storage. 

Nearby amenities include: YMCAYWCABoys and Girls ClubRutland ArenaBMX TrackOkanagan Gymnastics,McCurdy BowlingGrand 10 TheatreEnergy PlexRutland ParksPublic TransitOff Leash Dog Park and so much more!

Local schools are located across the street:Belgo ElementaryRutland Middle School and Rutland Senior Secondary.

To view 21 high definition photos and get tons more info please visit http://www.250GeminiRoad.com

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK
Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

PS. Your referrals to friends and family are always greatly appreciated and rewarded.


Sunday, June 5, 2011

Kelowna actors studio performance of "into the woods"!!!!

Might be the best one I have seen yet!!! If there are tickets to be had I would suggest getting some ASAP!!!

Photo1

Sent on the go from my iPhone
TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK
Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

Saturday, June 4, 2011

What a fantastic review of my new real estate app! If you are looking to buy you gotta check this out!

Thanks to Canadian Real Estate Listings - Social Media Marketing For Realtors - for writing such a great blog post about our new app!
The-bc-real-estate-locator-app

What a great review of my BC REAL ESTATE LOCATOR iPhone/iPad application!! It is really nice to see that someone took to time to test our BC REAL ESTATE LOCATOR app and write a nice blog post and review about it! We are really proud of this app and we have seen first hand how it can make searching for real estate in British Columbia super easy and fun for buyers. Please have a look at this independent review (The BC Real Estate Locator App For iPhone & iPad) and/or try the app yourself! Simply click this link BC REAL ESTATE LOCATOR and download the free app to your mobile device...then start searching!


TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK
Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

PS. Your referrals to friends and family are always greatly appreciated and rewarded.

Friday, June 3, 2011

What Does An Offer to Purchase and Sale of Real Estate Mean in Simple English?

Realestatecontract

Contract of Purchase and Sale.pdf Download this file

Contract of Purchase and Sale

What Does An Offer to Purchase and Sale of Real Estate Mean in Simple English?

Remember the last time you sat down with your Realtor to write an offer on your dream home? You were so excited that you did not really pay much attention to the Realtor as he/she reviewed the details of your offer? You know what you offered to pay for the property and when you plan on taking possession but your eyes probably glazed over when your agent started reviewing all the legal jargon. Does this sound familiar? You said “uh-huh” and “Yes, I understand all of that perfectly.” The truth is you probably did understand everything at the time but then you got home and you thought. “So what did I really sign?”

Here is the answer to that question! This is a breakdown of the complete Contract of Purchase and Sale in layman terms. Now you can sit back and read what you signed up for when you were working with your agent.

Paraphrasing the Contract of Purchase and Sale:
We are going to pretend that we are still together while you read this, fair enough? I also am going to pick some arbitrary numbers and facts to put into this offer for the purpose of this explanation.


The language.... “Mr. and Mrs. Buyer, what we are doing is making an offer of $450,000 including a deposit of $10,000. You will pay $10,000 within 24 hours of removal of all subject to conditions.” This means that once you have removed all your conditions, including conditions about financing and home inspections, you will give us $10,000 as a deposit on the property.


Clause #2
explains that we (the real estate company) will be taking your deposit monies and holding that money as a stakeholder. This means that the money is no longer yours and it is not the seller’s either. We are holding it “in trust” for both parties. If the deal is to go ahead, that money will become part of your purchase price.
If the deal does not go through and you do not remove the conditions, that money goes back to you as long as the seller signs off on it. There is very rarely a problem with that, but should the seller have a problem they could hold up the return of the funds. Do you understand this?


Clause #3 describes
T
erms and Conditions. We write in “See attached addendum #__ on pages __ to __” because there is usually not enough space there.


Clauses #4, #5, #6
outlines the dates.
Completion is the date that the title of the property actually transfers into your name. As you can see, the completion date is one day before the possession and the adjustment date. The reason for that is that Land Titles is in Kamloops and it takes an extra day to do the completion.
Possession date is the date that you actually receive your keys and can move into the property.
Adjustment date is the date the lawyers calculate that all of the taxes, levies, and any fees associated with the property due up to and including the adjustment date. Usually, 12:00 noon on the adjustment date is when you will actually start paying for any utilities or taxes and everything that’s involved with the ownership of the house.

Clause #7 (The Included Items:)The Included Items are basically the things you want included in the purchase of the house but are not nailed down or directly attached to the property. This includes things like the fridge and the stove, the washer and dryer, pool cues and the pool table, the built-in vacuum and all attachments. It is sometimes appropriate at this stage to put in things that actually are fixtures like the built-in dishwasher just to make it absolutely clear that they cannot be taken away.

Some sellers, when they’re not informed properly by their realtors, think that if it’s not in the contract they can take it whether it’s attached or not...then you get a nasty surprise on move in day.

Clause #8 is pretty self-explanatory: The property and all included items will be in substantially the same condition at the possession date as when previously viewed by the buyer on (insert date you saw the home).

Clause #9 and #14 are for the Seller. They mean that the Seller is going to give you title, free and clear from any writs or covenants or liens or caveats, or charges against the title. By signing this document, the Sellers are authorizing their lawyer to pay out anything that’s against their title and so that they can give you a clear title.

Clause #10 is for you, the Buyer. What it means is that about three or four days before closing, your lawyer or notary will call you and tell you right to the penny of the amount of money that you need bring in to close the deal. So it will be your entire purchase price, plus all your legal fees, and adjustments and taxes and things that we’ll discuss later minus your mortgage and down payment. You will have to bring that in as a certified cheque, bank draft, or lawyer/notary trust cheque. You cannot just bring in a regular cheque.

Clause #11 This clause is basically for the lawyers. It states that the lawyers will prepare the documents in a form that can be registered at land titles.

Clause #12 talks about time being of the essence. Basically, Mr. and Mrs. Buyer, this clause pertains to you. You must make your best effort to remove your conditions. In other words, the Seller is going to take their house off the market to give you time to do your due diligence, make sure you get your inspection done and you are happy with it. You also need to ensure you get your financing and you are happy with it. By signing this document in clause # 12, it means that you are going to do everything you can to remove all conditions as quickly as possible.

Clause #13 describes a situation where you have to trust your lawyer to take your money before you have registration of your new house. The Sellers have to trust their lawyer to give up registration before they receive their money. Basically, at some point somebody has to trust somebody, and it comes down to the lawyers acting under a trust arrangement in this situation.

Clause #14 has already been covered.

Clause #15 is for you. Clause #15 states that the costs of putting together the mortgage and conveyance of the title are your responsibility.

Clause #16 talks about risk. Simply put, if anything happens to the house or any of the included items like appliances or the furnace or the water heater up until 12:01 am on the Completion Date, it is the responsibility of the Seller. If anything happens anytime after that, it is your responsibility.

So, if the house burns down or the water heater packs it in, or something happens to the washer and/or dryer, if it’s included in the contract, it is the Sellers responsibility up until 12:01 am on the Completion Date. It is your responsibility after that! Caveat Emptor (buyer beware). This is probably the most important clause in the contract from a liability point of view.

Clause #17 Basically what Clause # 17 says is that anyone who signs the bottom of this document is responsible for whatever is written above it. If they pass away, their heirs become responsible for this contract.

Clause #18 basically underlines that the only details that both the Buyer and Seller can be held to is in this contract. We have to do our own due diligence to make sure that everything is verified. Here is an example-if the listing sheet says that there is a water softening system in the home and it isn’t there on Possession Date, you cannot sue the seller to buy you a water softener because it is not outlined in the Purchase Contract.

Clause #19 is about agency disclosure. There are three types real estate relationships.
Single agency means that both the Buyer and Seller have separate Realtors from different companies. When there is a Realtor for the Buyer and a Realtor for the Seller, Mr. and Mrs. Buyer, my responsibility is obvious. My job is to get that house for you at the best possible value possible. It is the other Realtor’s job to look after the sellers.
Dual agency happens two ways. One situation is when both Realtors work for the same company and the other situation is when there is only one Realtor working for both the Buyer and Seller.

In the last situation, the law says that I have to be fair to each person. In other words, if the sellers tell me that they will go to a certain price, I cannot tell you that and vice versa. I actually cannot disclose about price or personal characteristics or motivation. (Remember, you will already have reviewed and signed a limited dual agency agreement and the Working with a Realtor document, paying special attention to the dual agency portion.)

In this situation, there is only one Realtor representing the Buyer and the Seller. There is an obvious conflict of interest. What the law and both of these documents state is that, as a Realtor, I have to back off when it comes to three different pieces of information. They are price, personal characteristics and motivation. In other words, if you tell me that you’re going to make an offer of $440,000 on a $450,000 house but then you tell me that, if you have, to you will go to list price, I can’t tell the Seller that. If they tell me that they want you to come up to $445,000 but if they have to, they will accept your offer of $440,000, I can’t tell you that. I have to be fair to both parties. (“Are you O.K. with that?” I asked that question. You said, “Yes” (most people do). You had already signed the Limited Dual Agency Agreement, and Working with a Realtor before we even wrote the offer, of course. I am sure you understood what dual agency meant when we reviewed it together. This is a topic I would ensure you did understood.

Additional Costs: At some point we will have also reviewed an un-numbered page with a ton of little writing, which itemizes other ‘costs born by the Buyer/Seller’ in the centre of the page. There is an abundance of information on this page that is very redundant to what we just went over. However, I need to explain the costs for you.

First of all, keep in mind that these costs are all approximate. You are going to have legal expenses. The figure you should probably expect to pay is $800 - $1100 for legal expenses. That will cover your legal fees, your drafting documents, your land title registration fees, the conveyance of the title-basically everything your lawyer is going to do for you.

The big cash outlay that you need to be aware of is the Property Transfer Tax (PPT). There is a possibility that you will be exempted from Property Transfer Tax but you have to satisfy all of the following criteria:

1. You need to be a resident of British Columbia for at least a year.

2. You need to finance at least 70% of your purchase price, which means you can’t have a down payment larger than 30% of the cost of the house.

3. This has to be your first purchase. If it’s your first purchase for you and not your spouse, then you are eligible for 50% reduction of the Property Transfer Tax. This is something that you will have to discuss with your lawyer. Unless you are absolutely certain that you are exempt from the PPT, be prepared to pay the tax.

Property Transfer Tax is 1% of the first $200,000 and 2% of the balance. For instance, if you purchase a home for $450,000, you will be paying $7,000 in PPT. If the purchase price is $400,000, you will be paying $2000 on the first $200,000 and $4000 on the second $200,000. That makes your total PPT on a $400,000 purchase $6000.

Because mortgage rules are always changing, things may be a little different today then when this was written. REVIEW YOUR PERSONAL SITUATION WITH YOUR MORTGAGE BROKER/LAWYER.

The next important financial concern is the property tax adjustment. This is very difficult to calculate because #1, we don’t know what your taxes are going to be and #2, you have to decide whether or not you are going to pay your taxes with your mortgage payment or as lump sum at the end of the year. The amount that you pay the Seller or the amount that the Seller pays you in your Statement of Adjustment depends on the possession date that you choose.
The property inspection is another expense you will incur as a Buyer. An inspection will cost anywhere from $250 to $400. Depending on timing, it can take up to a week to book an inspection and have the completed report in your hands.

You may also need to have an appraisal done. If you are putting 25% or less down on your property, you may need to have a CMHC appraisal, which costs about $200. If your down payment is more than 25%, you may have to have a separate appraisal done and that is about $250.

Remember, the inspection and the appraisal costs will be plus HST.

Subjects/Conditions: The conditions (what you may have heard referred to as the 'subjects') are legally called the conditions precedent. What that means is that you have to be satisfied with the conditions you outlined in your offer before there is a firm deal. At this point in time, if the Seller signed this document, they cannot get out of this contract. The only person who can get out of it is you.

We have put a number of conditions on the contract for a couple of different reasons:
1. Our office has a policy that we insist on certain conditions.
2. We want to make sure that you are completely protected and are allowed to complete you due diligence to be certain the home is right for you.

Financing: The first condition is the condition of financing. We have made the offer subject to financing satisfactory to the buyers on or before (the date you agreed to).

Insurance: We also have a condition of obtaining satisfactory insurance. The reason we put that there is that there was a time period during the fires in 2004 that some people could not get fire insurance. So we want to make absolutely certain that you can get insurance. If the property is in town and you as the Buyer is certain that you have insurance, then you can put a waiver that says something along the lines of, “The Buyers have satisfied themselves with any insurance concerns associated with the property.”

Inspection: The next clause is the subject to satisfactory inspection. Again in our office, we either have to have an inspection clause on, or we have to have a waiver by you. If you are satisfied with the house without an inspection, we’ll put a clause in the contract that says the Buyers have waived their right to a home inspection.

Title: The next clause is for you to view and read and be satisfied with the title just to make certain that there is no unusual notes or what they call charges against the title that we are unaware of. You will likely be relying on your lawyer for this expertise.

Survey Certificate: The next clause is for the survey certificate. If there is an existing survey, we are going to ask for it and we are asking the Sellers to give it to us for free. Most often, they are willing to give it to you. It is your responsibility to get a survey if the Sellers do not have one, and make sure you are satisfied with the lot lines and where the house sits on the lot.

Property Disclosure Statement: The next is the property disclosure statement or PDS. The Sellers have filled out this form when they listed their house and it discloses everything they know about the property-the septic system, the wiring, the insulation, are there any roof leaks or basement leaks, and they have to sign that document confirming that what is on there is true. We want to view PDS and approve it before we remove conditions and make the deal firm.

(If it is a STRATA purchase)

Lastly, if this is an offer purchase on a strata property, there is a clause that is subject to a buyers viewing and approving the documents including a Form B. Form B BLAH BLAH BLAH…. Also, if this were an offer on strata property, we would not have put a condition of survey on the offer. The form B covers the condition of survey as well as…….


Terms:

We will also have a document that covers a few other items that are referred to as the 'terms' of the contract. Terms ensure that some other important facts have been brought to the attention of both you and the Sellers and that they are understood. For example, we want to make sure you understand Property Transfer Tax, pine beetles, HST, appliances along with any warranties that may be included, as well as your right to information and assignment, and any number of other concerns that you and/or I thought would be important to include in the contract.


That is pretty much it. I am sure after reading this you are well reminded of all the discussion we went over in detail when you signed your offer! You know the drill...if you have any questions, please don't hesitate to ask!

Thursday, June 2, 2011

SOLD! To another happy home owner!

Getmedia

This great family home features 3 bedrooms on the main with 1 bedroom down. New Kitchen and Baths, hardwood flooring; fenced yard,

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK
Follow my BLOG
Download my free BC REAL ESTATE LOCATOR iPhone/iPad application.

PS. Your referrals to friends and family are always greatly appreciated and rewarded.

Wednesday, June 1, 2011

What Does An Offer to Purchase and Sale of Real Estate Mean in Simple English? Part 5

part 5

Additional Costs:
At some point we will have also reviewed an un-numbered page with a ton of little writing, which itemizes other ‘costs born by the Buyer/Seller’ in the centre of the page. There is an abundance of information on this page that is very redundant to what we just went over.  However, I need to explain the costs for you.

First of all, keep in mind that these costs are all approximate.  You are going to have legal expenses. The figure you should probably expect to pay is $800 - $1100 for
legal expenses.
  That will cover your legal fees, your drafting documents, your land title registration fees, the conveyance of the title-basically everything your lawyer is going to do for you.


The big cash outlay that you need to be aware of is the
Property Transfer Tax (PPT)
.  There is a possibility that you will be exempted from Property Transfer Tax but you have to satisfy all of the following criteria: 


1.  You need to be a resident of British Columbia for at least a year. 


2.  You need to finance at least 70% of your purchase price, which means you can’t have a down payment larger than 30% of the cost of the house. 


3.  This has to be your first purchase. If it’s your first purchase for you and not your spouse, then you are eligible for 50% reduction of the Property Transfer Tax. This is something that you will have to discuss with your lawyer. Unless you are absolutely certain that you are exempt from the PPT, be prepared to pay the tax.


Property Transfer Tax is 1% of the first $200,000 and 2% of the balance. For instance, if you purchase a home for $450,000, you will be paying $7,000 in PPT. If the purchase price is $400,000, you will be paying $2000 on the first $200,000 and $4000 on the second $200,000.  That makes your total PPT on a $400,000 purchase $6000.  


Because mortgage rules are always changing, things may be a little different today then when this was written. REVIEW YOUR PERSONAL SITUATION WITH YOUR MORTGAGE BROKER/LAWYER. 


The next important financial concern is the property tax adjustment. This is very difficult to calculate because #1, we don’t know what your taxes are going to be and #2, you have to decide whether or not you are going to pay your taxes with your mortgage payment or as lump sum at the end of the year. The amount that you pay the Seller or the amount that the Seller pays you in your Statement of Adjustment depends on the possession date that you choose.
The property inspection is another expense you will incur as a Buyer. An inspection will cost anywhere from $250 to $400.  Depending on timing, it can take up to a week to book an inspection and have the completed report in your hands.

You may also need to have an appraisal done.  If you are putting 25% or less down on your property, you may need to have a CMHC appraisal, which costs about $200.  If your down payment is more than 25%, you may have to have a separate appraisal done and that is about $250.

Remember, the inspection and the appraisal costs will be plus HST.

Subjects/Conditions: The conditions (what you may have heard referred to as the 'subjects') are legally called the conditions precedent. What that means is that you have to be satisfied with the conditions you outlined in your offer before there is a firm deal.  At this point in time, if the Seller signed this document, they cannot get out of this contract. The only person who can get out of it is you.

We have put a number of conditions on the contract for a couple of different reasons:
1.  Our office has a policy that we insist on certain conditions.
2.  We want to make sure that you are completely protected and are allowed to complete you due diligence to be certain the home is right for you.

Financing: The first condition is the condition of financing. We have made the offer subject to financing satisfactory to the buyers on or before (the date you agreed to).

And now you fully understand the contract!

TREVER FLORKO - Realtor
Century 21 Assurance Realty (Kelowna)
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105
Visit my WEBSITE
Follow me on TWITTER
Follow/LIKE me on FACEBOOK

Follow my BLOG


PS. Your referrals to friends and family are always greatly appreciated and rewarded.