Valerie Brewis's $750,000 dream home nearly turned into a night-mare for its owner.
A few months after Brewis and her children moved in in 2009, a City of Toronto building inspector knocked on the front door and asked per-mission to inspect the house. One of the previous owners had made extensive renovations, but the work had not been given final approval. The inspection found that some of the work hadn't been done to code. More work was required to upgrade insulation, drainage, door heights and two outside decks.
The estimated cost was $60,000. "I called my lawyer, and it turned out that she had purchased title insurance for me, and it covered this," says Brewis, a single mother in her 50s. "Thank goodness that she did or I would have had to take out a second mortgage on my home."
The one-time insurance premium cost Brewis less than $900.
Title insurance protects a policy-holder from disputes over the ownership - or title - of his or her property. It also provides coverage for losses from work done before the purchase that is not in compliance with building regulations - as was the case with Brewis's home. Sub-standard work of this kind may not come to light in a typical home inspection.
Title insurance got its start in the U.S., where many states have poor land-registry systems and problems with property title frequently arise. Before it arrived in Canada in the early 1990s, real-estate lawyers did title searches for their clients to reveal undisclosed information about the property.
"They provided clients with an opinion that they had a good and marketable title on the property," notes Ray Leclair, Ontario real-estate lawyer and vice-president, public affairs at LawPRO, a Toronto-based insurance company that insures property purchasers and lenders. "The client who purchases title insurance is relying not on a lawyer's opinion but on the insurance policy."
Title insurance is often bought because many banks accept it as an alternative to a land survey in order to obtain a mortgage, says Usher.
"It's also an alternative to the cost of doing due diligence to safeguard against title problems such as finding that your house is on the neighbour's lot," he adds. Surveys, which show the property lines and the location of buildings on the lot, are not mandatory for the purchase of family homes in many provinces, and purchasers may opt to buy title insurance instead of a survey.
"This decision is often based on cost," he says. "Title insurance often costs less than a survey; its one-time premium is based on the value of the property. So if a survey costs $600 and the title-insurance premium is $300, the purchaser may opt for the latter. Of course, the really prudent purchaser would get a survey."
Wednesday, 28 March 2012
Monday, 26 March 2012
BMO and Canadian Real Estate Association Offer Tips for Buyers and Sellers
TORONTO, ONTARIO,(MARKETWIRE via COMTEX) -- With the busy spring house hunting season only weeks away, BMO Bank of Montreal and The Canadian Real Estate Association are recommending that house hunters get a head start on planning. One of the first steps is to get preapproved for a mortgage.
A BMO mortgage specialist can visit your home or work to help guide you through the process. They partner with a REALTOR(R), who will help you find a home suited to your needs and provide expert insight about location, price, neighbourhood services and amenities.
"Buying and selling your home can be one of your biggest financial decisions. REALTORS are licensed professionals who can walk you through every step of the process. Our website, HowREALTORShelp.ca, is a great starting point for homebuyers and sellers to learn about the process," says Gary Morse, President of The Canadian Real Estate Association.
Getting Advice from a REALTOR:
Searching for a home: Sometimes the property you are seeking is available but not actively advertised in the market; your REALTOR will conduct research to find all available properties that meet your needs.
Assessing the property: REALTORS have access to a variety of resources. They can provide information on utilities, zoning, schools, etc. Top considerations include knowing if the property will provide the environment you want for a home or investment, and when it's time to sell, estimating its value in the local market.
Negotiating the details: There are many factors affecting negotiations, such as price, financing, terms, date of possession, inclusion of repairs and furnishings. The purchase agreement should provide a period of time for you to complete inspections and investigations. Your REALTOR can advise you as to which investigations and inspections are recommended and/or required.
Evaluating/Inspecting the property: Depending on the location and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests. A REALTOR can assist you in finding qualified professionals to do most of these investigations and provide written reports.
Marketing your property: REALTORS can recommend repairs or cosmetic enhancements that will significantly increase the value of your property. They can also market your property to other REALTORS and to the public. In many markets across the country, real estate sales are cooperative sales (REALTORS other than yours represent the buyer). Your REALTOR acts as a marketing coordinator, distributing information about your property to other REALTORS through the MLS(R) System or other networks.
Closing the sale of your home: Between the initial sales agreement and closing, questions may arise. For example, financing may be required to deal with unexpected repairs. A REALTOR can objectively help you resolve these issues and move the transaction to closing.
"BMO's mortgage specialists work closely with REALTORS. They have expertise in the local market and can provide details on property prices and community services," said Laura Parsons, Mortgage Expert, BMO Bank of Montreal. "Buyers should consider choosing a 25-year amortization as a way of significantly reducing the amount of interest paid over the life of the mortgage.
"BMO offers a new 10-year fixed rate mortgage at 3.99 per cent that comes with a maximum 25-year amortization. It is modeled after its popular 5-year fixed rate mortgage at 2.99 per cent with the same maximum 25-year amortization. Both are available to new and existing customers and help customers build equity in their homes faster. Both rate offers are available until March 28th. By getting pre-approved, customers have up to 90 days to search for the home of their dreams and lock in at rates that make home ownership affordable. Locking-in provides certainty with respect to payments and protection against rising rates," added Ms. Parsons.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $538 billion as at January 31, 2012, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
About The Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 100,000 REALTORS working through more than 100 real estate Boards and Associations.
A BMO mortgage specialist can visit your home or work to help guide you through the process. They partner with a REALTOR(R), who will help you find a home suited to your needs and provide expert insight about location, price, neighbourhood services and amenities.
"Buying and selling your home can be one of your biggest financial decisions. REALTORS are licensed professionals who can walk you through every step of the process. Our website, HowREALTORShelp.ca, is a great starting point for homebuyers and sellers to learn about the process," says Gary Morse, President of The Canadian Real Estate Association.
Getting Advice from a REALTOR:
Searching for a home: Sometimes the property you are seeking is available but not actively advertised in the market; your REALTOR will conduct research to find all available properties that meet your needs.
Assessing the property: REALTORS have access to a variety of resources. They can provide information on utilities, zoning, schools, etc. Top considerations include knowing if the property will provide the environment you want for a home or investment, and when it's time to sell, estimating its value in the local market.
Negotiating the details: There are many factors affecting negotiations, such as price, financing, terms, date of possession, inclusion of repairs and furnishings. The purchase agreement should provide a period of time for you to complete inspections and investigations. Your REALTOR can advise you as to which investigations and inspections are recommended and/or required.
Evaluating/Inspecting the property: Depending on the location and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests. A REALTOR can assist you in finding qualified professionals to do most of these investigations and provide written reports.
Marketing your property: REALTORS can recommend repairs or cosmetic enhancements that will significantly increase the value of your property. They can also market your property to other REALTORS and to the public. In many markets across the country, real estate sales are cooperative sales (REALTORS other than yours represent the buyer). Your REALTOR acts as a marketing coordinator, distributing information about your property to other REALTORS through the MLS(R) System or other networks.
Closing the sale of your home: Between the initial sales agreement and closing, questions may arise. For example, financing may be required to deal with unexpected repairs. A REALTOR can objectively help you resolve these issues and move the transaction to closing.
"BMO's mortgage specialists work closely with REALTORS. They have expertise in the local market and can provide details on property prices and community services," said Laura Parsons, Mortgage Expert, BMO Bank of Montreal. "Buyers should consider choosing a 25-year amortization as a way of significantly reducing the amount of interest paid over the life of the mortgage.
"BMO offers a new 10-year fixed rate mortgage at 3.99 per cent that comes with a maximum 25-year amortization. It is modeled after its popular 5-year fixed rate mortgage at 2.99 per cent with the same maximum 25-year amortization. Both are available to new and existing customers and help customers build equity in their homes faster. Both rate offers are available until March 28th. By getting pre-approved, customers have up to 90 days to search for the home of their dreams and lock in at rates that make home ownership affordable. Locking-in provides certainty with respect to payments and protection against rising rates," added Ms. Parsons.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $538 billion as at January 31, 2012, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
About The Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 100,000 REALTORS working through more than 100 real estate Boards and Associations.
Saturday, 24 March 2012
Is Now a Good Time to Buy a Vacation Home?
The month of March has a tendency to bring up thoughts of warmer weather as families head South for some fun in the sun. If you happen to be thinking about a vacation home investment, then you might want to consider Florida!
Not only have Snowbirds been buying up Florida real estate for their own enjoyment, but their younger friends and counterparts are among the growing numbers of Canadian investors snapping up deeply discounted vacation homes with the intention of renting them out until they retire. These are people, known as “endvestors,” are planning ahead, and planning well!
“Endvestors” understand that if they don’t purchase now there is a chance they might not be able to afford a second home when the time comes to enjoy their retirement in a warmer climate. That being said, Florida is an ideal destination due to its accessibility by car, a bonus for those who prefer not to fly.
Throughout Florida, especially areas like Naples, Fort Myers, Fort Lauderdale and Palm Beach where values have seen huge declines in both single family homes and condo prices, opportunities are ever present for the Canadian buyer. Although it appears that prices have leveled off, properties are still selling for less than it would cost to build them today.
Combined with the fantastic housing prices in Florida, our strong dollar and low interest rates make for an excellent long term investment.
Over 500,000 Snowbirds enjoy the Florida sun each year. Today, with the strength of our economy and our dollar, the time is right to purchase. For Oakville buyers who are comfortable with the lifestyle that the Sunshine State has to offer, house hunting can be loads of fun when you have your pick of the litter from high-rise condos to single-family homes in luxurious neighborhoods.
Over the many winters I have spent at our own family condo in West Palm Beach, I speak from experience. The buying opportunities in South Florida are still good and prices don’t seem to be rising, so whether you are considering an investment for personal use now or a rental property to serve you in the future, an experienced local realtor can help you through the process. Should you wish to pursue this fantastic real estate opportunity, Re/Max Aboutowne and The Invidiata Team would be happy to refer you to a knowledgeable agent in your desired area.
Not only have Snowbirds been buying up Florida real estate for their own enjoyment, but their younger friends and counterparts are among the growing numbers of Canadian investors snapping up deeply discounted vacation homes with the intention of renting them out until they retire. These are people, known as “endvestors,” are planning ahead, and planning well!
“Endvestors” understand that if they don’t purchase now there is a chance they might not be able to afford a second home when the time comes to enjoy their retirement in a warmer climate. That being said, Florida is an ideal destination due to its accessibility by car, a bonus for those who prefer not to fly.
Throughout Florida, especially areas like Naples, Fort Myers, Fort Lauderdale and Palm Beach where values have seen huge declines in both single family homes and condo prices, opportunities are ever present for the Canadian buyer. Although it appears that prices have leveled off, properties are still selling for less than it would cost to build them today.
Combined with the fantastic housing prices in Florida, our strong dollar and low interest rates make for an excellent long term investment.
Over 500,000 Snowbirds enjoy the Florida sun each year. Today, with the strength of our economy and our dollar, the time is right to purchase. For Oakville buyers who are comfortable with the lifestyle that the Sunshine State has to offer, house hunting can be loads of fun when you have your pick of the litter from high-rise condos to single-family homes in luxurious neighborhoods.
Over the many winters I have spent at our own family condo in West Palm Beach, I speak from experience. The buying opportunities in South Florida are still good and prices don’t seem to be rising, so whether you are considering an investment for personal use now or a rental property to serve you in the future, an experienced local realtor can help you through the process. Should you wish to pursue this fantastic real estate opportunity, Re/Max Aboutowne and The Invidiata Team would be happy to refer you to a knowledgeable agent in your desired area.
Thursday, 22 March 2012
A seller's market in Oakville this spring?
After the last few years - these are the words that Oakville homeowners were waiting for - "seller's market". This was driven by a shortage of inventory, low interest rates, the rebound of the TSX and NYSE, and a stronger economy in the U.S..
Over the past week 35% of Oakville homes have sold at or above the list and 50% of the property leased. For the first time we see in south Oakville sell properties and the properties listed in the north of the QEW. Two-thirds of the 70 homes sold were above the QEW. There are only a total of 705 active listings that are converted to 10 weeks of storage.
So what you need to do to take advantage of this new reality - depends on whether you are a buyer or seller. As a buyer - you will need to work with a realtor. Very often owned by Time to make the MLS, homes sold is strong. There is a delay of approximately 24 hours.
The best advice to sellers is to make your home look great - so give your agent at least one week prior to the listing to help you prepare. They will give you the advantage. Remember that there is more than 60% of households that do not sell above list. A $ 40 can of paint is a $ 1000 on the walls.
Oakville real estate market has really heated, and probably will continue to do so for the rest of the spring. So if you are looking to buy or sell - stay focused - and enjoy the ride ....
Over the past week 35% of Oakville homes have sold at or above the list and 50% of the property leased. For the first time we see in south Oakville sell properties and the properties listed in the north of the QEW. Two-thirds of the 70 homes sold were above the QEW. There are only a total of 705 active listings that are converted to 10 weeks of storage.
So what you need to do to take advantage of this new reality - depends on whether you are a buyer or seller. As a buyer - you will need to work with a realtor. Very often owned by Time to make the MLS, homes sold is strong. There is a delay of approximately 24 hours.
The best advice to sellers is to make your home look great - so give your agent at least one week prior to the listing to help you prepare. They will give you the advantage. Remember that there is more than 60% of households that do not sell above list. A $ 40 can of paint is a $ 1000 on the walls.
Oakville real estate market has really heated, and probably will continue to do so for the rest of the spring. So if you are looking to buy or sell - stay focused - and enjoy the ride ....
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