fbpx

HOMEPORTAL

Menu

homebuyer

The Legal Process of an Assignment Sale

Blogs / / / , , , , , , , , ,

The Legal Process of an Assignment Sale Using the assignment clause to buy or sell a pre-construction apartment requires competent legal advice. The services of a lawyer with experience in this field should be sought out. Three years ago, when Stefan bought his two-bedroom-plus-den condo, he worked with a real estate agent and a lawyer who specialised in pre-construction real estate to help him navigate the process, answer his questions, and make sense of the complex legalese contained in his Agreement of Purchase and Sale. Legally, you can sell a property before building has even begun through a process called an assignment, but it’s a bit more involved than a regular selling because there are now (the assignor original buyer, the developer, and the assignee new buyer). Stefan’s condo’s assignment sale clause was included in the Agreement of Purchase and Sale that he signed with the developer. Stefan is now permitted by law to sell the pre-construction contract for the unit to a third party, provided that the new buyer agrees to be bound by the terms and conditions of the Agreement of Purchase and Sale. Yes, the transaction is regarded to be valid if an assignment clause is included in the Agreement of Purchase and Sale and Stefan complies with the terms and conditions specified therein. Although assignment sales are permitted under the law, each pre-construction developer has their own set of rules and regulations that might make each assignment sale different. As the anticipated occupancy date for Stefan’s pre-construction condominium unit approaches, he is considering selling the contract for the apartment. He has decided to engage with the same real estate agent and lawyer to guide him through the assignment sale process and ensure that he complies with all applicable laws and developer regulations. Stefan will need to pay the developer for the assignment sale, which often takes the form of legal and administration fees in order to transfer the contract for the 2-bedroom plus den unit from his name to the new buyer’s name. The Assignment of Purchase and Selling will detail the total price of the pre-construction sale assignment.

The Legal Process of an Assignment Sale Read More »

A New Purchaser of a Condo Under Construction

Blogs / / / , , , , , , , ,

A New Purchaser of a Condo Under Construction In the pre-construction real estate market, an assignee is the new buyer of a home or condominium who has legally transferred the contract for that property through an assignment sale. A contract for a yet-to-be-built property is being offered for sale or assignment by the original buyer to a potential buyer (or assignee). At this point in time, the buyer assumes full legal responsibility for the contract’s ongoing performance. The seller (assignor) has transferred the contract to the buyer (assignee), who is now legally bound by the terms of the agreement. Consequently, the assignee is the buyer in an assignment sale and, in the end, the legal owner of the house. Catherine wants to find a new place to live just outside of Toronto, where she presently resides and works, so she talks to her real estate agent online about possible pre-construction townhomes in Vaughan. Her real estate agent recommends a new townhouse in the city, one that is convenient to a wide variety of services and transportation alternatives. Free parking is provided, and homeowners association dues are inexpensive. Catherine is in luck because the sale of the unit is an assignment prior to construction, which means she can haggle for a lower price and potentially save a lot of money. The home, neighbourhood, and sales incentives are all appealing to Catherine. She gets an excellent price reduction and signs the contract to buy the new townhouse. In this transaction, Catherine is the new buyer, or assignee, of the pre-construction contract. She takes over the ownership of the pre-construction contract and assumes the assignor‘s rights and obligations under the agreement. To rephrase, once the assignment sale closes, Catherine will be the official owner of a brand-new house.

A New Purchaser of a Condo Under Construction Read More »

How to Sell a Pre-Construction Condo

Blogs / / / , , , , , , , , , , ,

How to sell pre-construction condo It is the obligation of the original buyer to abide by the conditions of the Purchase and Sale Agreement. At the conclusion of a pre-construction assignment sale, the new buyer takes over the obligations. Due to the complexity involved, the process must be closely monitored till completion. For instance, an individual is trying to unload the contract he signed three years ago for a one-bedroom condo in a downtown Toronto building that is nearly ready for occupancy. He decides to consult with a real estate agent who specialises in pre-construction assignment sales as well as a pre-construction attorney who has experience with assignment sales so that he may fully understand his legal obligations before, during, and after the transaction. The concerned person should check with the developer and his purchase and sale agreement before advertising the contract for sale. Next, he must follow the specific guidelines his developer has set down in the contract for assignment sales. His developer has specified in the contract that he must pay the developer’s administrative and/or legal fees if he assigns the pre-construction contract for the unit in dispute. Finding a buyer for the contract is now his responsibility as well. That individual further plans to get the sale advertised on venues where interested parties congregate by engaging the aid of a real estate agent who specialises in pre-construction assignment sales. The seller’s continued participation is essential because he is the one who decides on the selling price (and whether or not he is open to bargaining) and who must approve the final sale price. The person will no longer be the owner of the contract for the unit once the pre-construction assignment sale is finalised and the contract is passed to the new buyer. He is no longer entitled to any of the benefits promised under the contract or the use of the unit in question. The new owner is responsible for all fees associated with the pre-occupancy, closing, and mortgage. However, he needs to be wary because he might be held responsible for the new home’s costs and obligations if the new buyer defaults on the contract. Typically, the individual will collect his earnings once the closing has been completed and the new buyer has obtained the title to the property. Seller’s rights and duties are a significant factor to consider when selling an assignment during pre-construction.

How to Sell a Pre-Construction Condo Read More »

Testing for Radon: 5 Frequently Asked Questions

Blogs / / / , , , , , , , , ,

Testing for Radon: 5 Frequently Asked Questions Certainly, you could have heard anything about radon before. You might even be aware that excessive levels of this naturally occurring gas can be harmful to your health if allowed to accumulate within your home. That’s a fantastic place to begin. However, if you’re worried about the security of your home and just know that much, you’re missing out on important information. Radon levels in a home can only be determined by conducting a test. Learn the answers to some of the most frequently asked questions regarding radon testing and take your radon knowledge to the next level. When should one conduct a radon test? Taking a radon test in the fall or winter will give you the most reliable estimate of how high the radon level is in your home. When we close our windows to block out the chilly air, we also reduce the airflow through our homes, which can lead to radon buildup. Therefore, this November is a great opportunity to start planning how you will address the risks posed by radon in your house. how do I run the test? It’s possible to pick from a few alternates. A DIY test kit is available at most hardware and home improvement stores. You might also visit your neighbourhood library (yes, you read that right). Borrowing radon detectors is possible from a wide variety of provincial libraries. Finally, if you opt to have a third party perform the test for you, double-check that they are a member of the Canadian National Radon Proficiency Program. If my numbers are higher than the Health Canada threshold, what happens then? Your radon levels should be reduced as quickly as possible if they are higher than Health Canada’s recommended level of 200 becquerels per cubic metre. In a fortunate turn of events, radon mitigation services can be found readily and at a reasonable price. If your home is less than seven years old, the new home warranty will pay up to $50,000 for radon mitigation costs. If you want to know how to receive help from the warranty service for the radon problem, click here. Can I skip the test if I just bought a new house? Yes is the short and straightforward answer. To find out if your new home has high radon levels, you should have the soil tested as soon as possible because radon is more related to the soil underneath your home than the age of your property. If you need to lower radon levels, you’ll be happy to know that many brand-new homes already have rough-ins for mitigation systems. What if my home has low radon levels? You don’t need to take any action to reduce radon if your levels are below the Health Canada limit of 200 becquerels per cubic metre. The key is to keep an eye on them throughout time because of the potential for change. After around five years, experts advise repeating the exam.

Testing for Radon: 5 Frequently Asked Questions Read More »

Paperwork requirements for pre-construction homes

Blogs / / / , , , , , , , , ,

Paperwork requirement for pre-construction homes It takes a significant amount of trust and dedication to purchase a house or condo before construction has even begun. If you’re buying something online without seeing it in person first, you’re putting your faith in the builder to deliver exactly what you ordered. There will, of course, be much paperwork involved with a deal of this size. Even if you haven’t broken ground on your new house or condo yet, it’s still in your best interest to familiarise yourself with these contracts so you can make an educated purchase and safeguard your investment. Your purchase agreement is the most crucial document because it is a legally binding contract between you and the builder. You may feel intimidated by this lengthy document full of legalese if this is your first time purchasing a home. However, there are three essentials you should look for and make sure you fully grasp. Addendum Pre-construction homeowners and condo buyers frequently have worries regarding the completion date of their property and the consequences of any delays in construction. As such, an annex is necessary. Your closing or occupancy date and the maximum amount of time your builder can delay it for are specified in this agreement. With sufficient written notification, your builder is within their rights to push out the closing date for your property based on the sort of closure date agreed upon in the Addendum. Check out Tarion.com for further details on possible compensation and notification periods in the event of delays. You can find out how your deposit will be handled in the event of a purchase agreement termination and what those conditions are in the addendum. Specifications Sheet for Warranties You must be aware of the specifics of your new home warranty in order to safeguard your investment. Newly constructed homes are required, as of February 1, 2021, to include a warranty information page with each sales contract. This sheet is specific to the home being sold, making it easy to understand and read, and informing buyers of the vital coverage to which they are entitled. It briefs buyers on the fundamentals of warranty protection (such as deposit protection and reimbursement for closing or occupancy delays), stresses the significance of the pre-delivery inspection, and points them in the direction of further resources for learning more. Details about Condominiums Brochure An information sheet outlining the pros and cons of purchasing a condominium must be included in any purchase agreement for a condominium unit. For instance, it details early termination circumstances that would allow a builder to cancel a project and the possibility that pre-construction condominium developments may never be finished. Buyers should be informed of the following: The status of the project (e.g., zoning permission, date of commencement of building); Any restrictions on the builder’s land title that may prohibit the project from going forward; A buyer’s right to terminate a sales agreement within 10 days; and, The estimated date when a buyer can take occupancy of their condominium. There’s no denying that there’s a lot of paperwork involved in buying a new-construction house or apartment. However, it is essential that you are an educated purchaser; a competent real estate attorney can walk you through the paperwork and provide you much more assurance and peace of mind.

Paperwork requirements for pre-construction homes Read More »

New data reveals Canadian rentals exceed $2K for the first time

Blogs / / / , , , , , , , , , ,

New data reveals Canadian rentals exceed $2K for the first time In November, the average rental price in Canada topped $2,000 per month, according to a survey issued on Wednesday. Based on the numbers provided, it appears that renters in Canada are forking over an average of $2,024 monthly to cover their housing costs. This number includes anything from studio units to mansions. That’s a 12.4% increase from the same month a year ago, which is far higher than Canada’s inflation average of 6.9%. Vancouver has the most expensive one and two-bedroom rents in the country, at $2,633 and $3,598 per month. It was the second most expensive to rent in Toronto. The median monthly rent for a one-bedroom in the city is now $2,532, up 23% from the same period last year. According to the data, the median monthly rent for a two-bedroom unit is $3,347. Rental costs rose dramatically in other GTA municipalities as well. The cost of living increased by 28% in Brampton and by 19.2% in Mississauga compared to the previous year. Monthly rents in smaller areas west of the GTA also rose, by as much as 27.9% in London and 24.1% in Kitchener. Only one Canadian city, Halifax, had a higher median rent than the cities of British Columbia and Ontario combined. In Burnaby, British Columbia, tenants paid a whopping 32% more for a one-bedroom flat in October 2018 than they did in October 2021. The survey found that rising rental prices have shown no signs of slowing down. Since May, year-over-year increases have been in the double digits, with November’s increase being the largest yet. In a press statement, Urbanation president Shaun Hildebrand said, “Rents in Canada are rising at an extraordinarily fast speed, which is having a dramatic effect on housing affordability as interest rates continue to rise.” “Demand is shifting to more inexpensive locales in regions with rapid population growth,” the article states, because “the most costly cities are experiencing very low supply and the quickest rates of rent increase.” Nova Scotia, Newfoundland and Labrador, New Brunswick, and Prince Edward Island had the fastest annual rate of increase in rental prices, at a combined 31.8%, out of all of Canada’s provinces and territories. There was an average monthly cost of $1,716 for a one-bedroom apartment in Atlantic Canada in the month of November, while $2,032 was the average for a two-bedroom. The survey found that rent rises were slowest in Montreal, despite the fact that it is Canada’s largest rental market. Builders are cancelling ventures, and investors are afraid to put money into future real estate projects because of the high costs of borrowing. “Investment in real estate, especially in the condo area, loses some of its appeal as interest rates rise,” Tal added. So, “if you don’t have those units, that’s another factor pushing up the cost of renting what’s left.” The rising cost of rent is “becoming unaffordable” “We’re getting near to the point when rents are just becoming prohibitive for tenants,” said, Hildebrand. “It appears that a downturn in economic activity may begin sometime in the coming year. It follows that rentals may see a temporary lull in 2023 “the head of Urbania remarked. However, it is very evident that rents will continue to grow higher in the medium to long term due to strong immigration targets and rental building that has been halting recently due to high costs. When the weather turns cold, Hildebrand says renters should start looking elsewhere. There are fewer potential tenants, therefore landlords are often willing to negotiate a lower monthly payment in exchange for your business. Hildebrand argues that governments might introduce incentives to develop purpose-built apartments and make new rental projects more economically feasible, although this won’t help in the immediate term. Rentals.ca’s head of content, Paul Danison, has said that governments need to be more innovative with their zoning policies. One possible use for these buildings is as lofts with amenities like cafes, shops, and galleries. Alternatives he suggests are inclusionary zoning, laneway suites, and infill construction. There are responses to this problem, but governments are moving too slowly.

New data reveals Canadian rentals exceed $2K for the first time Read More »

Discover before building

Blogs / / / , , , , , , , ,

Discover before building You’ve been looking for a new place to call home for what feels like forever, but nothing is quite right. Instead, you’ve made up your mind to commission the construction of your ideal house on land you already own. Even while well-meaning relatives and neighbours may offer to help by recommending builders, you should seek out expert guidance to safeguard your investment before any ground is broken. Consultation with an experienced real estate attorney who is conversant with contract homes is a smart choice to ensure that your rights are safeguarded in the contract you sign with the builder. Verify the builder’s credentials before hiring Whether the prospective builder you wish to hire is licenced should be your first step. Before constructing or selling a home, a contractor must first register with Tarion. That a builder has the resources and expertise to see the project through to completion and back it up with warranty coverage is just one of the requirements for registration. It is unlawful to construct without being registered with Tarion, thus if they are doing so, they have not been properly verified. Put your deal in writing You and the builder should have a binding agreement outlining the scope of work, the costs, and the timelines for both construction and payments. Having a written agreement might strengthen your position in the case of a disagreement. Tarion can help you out if your builder stops functioning on your house or if there is a serious disagreement during the building process. Tarion may award you compensation if you can prove that your builder did not provide the services promised in your contract. What happens if the cost of the construction exceeds the money you paid for it?

Discover before building Read More »

Three Tips For Resale “New” Homeowners

Blogs / / / , , , , ,

Three Tips For Resale “New” Homeowners You’re not exactly a first-time homebuyer, but you are fairly recent to the market. That’s because the condo or house you bought secondhand was probably constructed within the past year. There’s a strong possibility you’re still covered because Tarion provides a seven-year warranty on every home built in Ontario. Questions like “How does the warranty get transferred from the previous owner to me?” are reasonable at this time. as in “What if there are pending warranty claims?” Consider these three points before you make some of the same mistakes that other owners make Exchange of keys by hand A transfer of the warranty is not implied. The Property’s Age Although “old is gold,” at what point does it become unusable? For the most part, homes older than 40–50 years should be avoided. The building and the house may have sustained significant structural damage by now. You’ll need to spend significantly more money than you planned on due to the extensive remodelling and unanticipated repairs. The Bylaws and Regulations of the Association Buying a house in a community always involves joining an association that has control over the running of the community. To find out if any alterations or additions to the home you’re looking to buy are prohibited, you should contact the relevant authorities. Some communities set restrictions on what kinds of renovations can be done, when such renovations can be done, etc. Before purchasing a home that will require extensive repairs, it is wise to seek the blessing of the local building association. Insurance premiums and a deposit on a house It’s important to remember that the insurance payout you receive when purchasing a previously owned property will be less than if you were purchasing a brand new home. You’ll need a larger down payment to purchase a resale home than you would for a brand-new home, typically 20% or more.

Three Tips For Resale “New” Homeowners Read More »

Sustaining a Safe and Sound Environment at Home

Blogs / / / , , , , , , , ,

Sustaining a Safe and Sound Environment at Home There has never been a time when it was more vital to take care of our health. Many people forget that keeping up with house repairs can help keep you and your family healthy, even while health professionals recommend doing things like washing your hands frequently and covering your mouth and nose when you cough or sneeze. Initially, let’s talk about how well your home ventilates. Changing the filter in your furnace is essential. The cleanliness of your air filter directly impacts the air quality in your home. A dirty filter is useless for removing airborne contaminants like dust, mould spores, pollen, dander, and more. Changing the filter on your furnace frequently helps it run more smoothly and efficiently. An increase in the cost of heating your home is a direct result of a dirty filter that forces the furnace to work harder to disperse air. The frequency of filter replacement is equipment-specific and will vary with the type of furnace you have. Before purchasing a new filter for your furnace, it is recommended that you consult the owner’s manual to determine the correct type and size of filter for your system. Likewise, you should clean and check the functionality of any and all ventilation systems.Home office setup featuring a desk plant Regular cleaning and vacuuming can help remove allergens and dust and keep it out of your lungs, in addition to keeping your furnace in good working order. Do not forget to remove the covers from the vents and ducts before giving them a good vacuum. Air-purifying plants are another option for bettering indoor air quality and adding a pleasant natural element to the home. Listed below are some attractive plants that serve a dual purpose of purifying the air and enhancing the interior design. Now, let’s move on to the topic of dampness. Mould can grow in a home if there is too much moisture there. Mould, a fungus that may grow on any material in the presence of moisture, is a major contributor to the development of asthma and other respiratory problems in the house. Be sure to get any plumbing leaks fixed right away. Humidity levels can also be managed with the help of your home’s ventilation system. The same goes for the kitchen range hood fan, which should be turned on whenever cooking or baking. The humidity levels in your home can also be tracked with a hygrometer, which is available for purchase. Caulking and weatherstripping should be repaired if they are damaged (cracked or separated) or checked for any wear and tear to ensure that no water is allowed in. Check for dampness or leaks in the basement, crawl space, and roof as well. Outside, make sure water is channelled away from the house by clearing eavestroughs of debris and extending downspouts. There’s mould in the window sill Finally, make it a habit to test your smoke alarms and carbon monoxide detectors once a month. You should also have your home checked for radon levels and have it fixed if they are high. Following even a handful of these suggestions for upkeep can improve the quality of your life at home and in the long run, your health. Have a look at these seasonal maintenance checklists for more information on how to keep your new house in good shape.

Sustaining a Safe and Sound Environment at Home Read More »