What is a Status Certificate?

Hello, David Pylyp with Re/Max, Its a beautiful day on the waterfront in Toronto at Humber Bay Shore, Down by Palace Place and Palace Pier.

I'd like to talk to you about buying a condominium and actually obtaining a Status Certificate.

So the question becomes; What is a Status Certificate?

If you bought a used car, you would find yourself asking for the safety certificate. Well, that's exactly what a status certificate is. Its a snap shot of the financial picture of your condominium unit and your building as at a particular date.

This is usually provided to you by the seller of the unit and encompasses what the maintenance fees are paying for in the building. It gives you an over view of the entire buildings obligations. How much revenue they collect. If there are going to be special assessments, or how they are being assessed. It tells you what programs are going to be repaired or implemented over the next two, three or five year period as capital projects.

The Status certificate also provides an understanding of how many units in the building are rented by investors versus those that are owner occupied. Buildings that have a higher ratio of owner occupants tend to have higher pride of ownership.

If you would like to buy something here, down on the lakefront, on the Etobicoke waterfront, near Humber Bay Shore, maybe Michael Power, give me a call at 647 218 2414.

Work with an accredited Senior Agent that will help you through the entire process so you will know each step. Thank you

Bidding Wars in Toronto west

This is an interesting topic from Mark Weisleder on Bidding up offers and multiple offer protocol. Simply put the ethics and logistics of how and why one offer is selected over another.

http://www.moneyville.ca/article/1013066--caught-in-a-bidding-war-know-the-rules

Most sellers will instruct their agent to tell this anxious buyer to wait until the proper time period. However, if the seller wants to consider the offer, their agent will then change the information on the MLS listing immediately to notify every other agent that the rules have changed, and that offers can be submitted that evening. The agent will also likely call every other agent who has expressed an interest in the property to tell them personally that offers can now be brought immediately.

When a buyer agent has a signed offer, they will usually call the listing agent office to register their offer verbally. There is a protocol that has been established in Toronto that if you were the first to register your offer, you will be given the first opportunity to present it to the seller in person, if there is more than one offer. This is just a protocol, and does not have to be followed by every real estate firm.

However, an offer is not completed unless it is communicated to the seller or seller’s agent, either by personal delivery, fax or email. Therefore, a buyer can still cancel their offer at any time before it is communicated. That is why an offer might be registered but never delivered. The buyer changed his or her mind.

Why can’t we have a silent auction? When buyers make offers through an agent, the agent has an ethical obligation not to disclose the contents of any offer to any of the other buyers. A seller agent can only tell all other bidders how many offers were received. They cannot tell the price or identity associated with any of the offers. However, a private seller could take one buyer offer and just show it to another bidder. This is one of the main reasons private sellers have trouble creating bidding wars.

There is one glaring singular omission; While you purchase the house emotionally and the justify your purchase with logic, the reality of overbidding, Paying over the asking price, needs to be justified to the lending institution with an appraisal.

If you are buying the house with cash and this is what you want to pay, No Problem. If you are financing the property with 15% down and you pay 20 % over the asking price the Mortgage company may ask you to add additional downpayment. ( you over paid) In this senario we see houses that have sold for huge multiple bids, only to be back on the market and embroiled with litigation over the failure to close ( specific performance ) and who gets the deposit.

I invite your comments, add your story to help others understand our local real estate market.

If you are ready to do business, give me a call at 647 218 2414

Hit your clients with the TRUTH STICK

Sometimes you need to tell people things directly

You must convey Acceptance!

If you don't tell the Sellers that your Buyers have accepted their counter proposal within the deal timeline, Do you still have a deal?

No. That Acceptance needs to be clearly relayed to all parties.

However, an offer is not completed unless it is communicated to the seller or seller’s agent, either by personal delivery, fax or email. Therefore, a buyer can still cancel their offer at any time before it is communicated. That is why an offer might be registered but never delivered. The buyer changed his or her mind.

Mark Weisleder is a lawyer, author and speaker to the real estate industry. Contact Mark at mark@markweisleder.com

It is imperative that the Acceptance be communicated clearly. The Agreement of Purchase and Sale contains a clause that clearly indicates and the person (Buyer or Seller) that is doing the accepting.

I recently had this exact issue; whereby the Buyer Accepted the sign back from the Sellers but the Selling Agents neglected to advise us in writing that they bought the house. We waited past the deadline of timeline in the sign back. "The Team" had delegated someone to respond who went home at 5 PM.

In a different situation we may have moved on to Buyer B and then accepted their offer. This would have placed Buyer A with a signed contract without conveyance of acceptance in jeopardy. Who would be responsible for not delivering the house you bought? Did we sell it twice? or just Once? What do you think?

Imagine... You could be home already

Have you noticed that the traffic is backed up in both directions every morning. You could be home already if you lived along this strip

You keep passing this high density Hi Rise cluster that encompasses Humber Bay Shore and starts with Park Lake Residence on the south and the Windermere by the Lake and NXT on the north.

Which are the most noticeable? Of course the Twin sisters and Toronto Landmarks that are the Palace Place and Palace Pier towers along the banks of the Humber River.

Living here along the Lake does have benefits; access to public transit, local shops and community in Bloor West and Roncesvalles Village, opportunities for open air parks along the Martin Goodman Trail.

The bigger question we need to ask ourselves is about ECO sustainability. How far and how long are you willing to commute to feel that you have escaped the city prices. Gasoline today was $1.25 per liter, Taxes and Insurance have steadily increased while coverages have been reduced, Hydro and energy costs are also on the rise. Is there a value that you place on time that is consumed in your daily commute?

Would you like to talk about alternatives? Add a comment, Speak your Mind or just call and lets go shopping for something that suits your lifestyle now.

Are we interested in Toronto Waterfront Redevelopment?

Are you interested to see what is being built on the Toronto Waterfront?

What housing related to commercial and the water use becomes the new Toronto waterfront profile?

http://2011.waterfrontoronto.ca/title/9635

Have your say! Add a comment. Forward the link to a friend.

Let's check your Line of Credit

TD’s Customer Retention Strategy - Collateral Mortgages

Last year TD Canada Trust announced they will be registering all of their mortgages as collateral mortgages. What does this mean for the consumer?

TD has instituted some very popular banking changes in the last few years....extended banking hours and opening branches on weekends to name a few. With the announcement of registering all of their mortgages as a collateral mortgage they were trumpeting it in the media as a major win for consumers....but is it really?

First let’s talk about what makes a collateral mortgage unique.

Unlike a traditional mortgage a collateral loan is made up of a promissory note backed by a lien registered against the property. If you have a line of credit registered against your home, chances are you already have a collateral mortgage. They certainly are not new in Canada and have been used for years......mostly for home equity lines of credit.

So what makes a collateral mortgage different? The way the mortgage is constructed is ideal for a line of credit because it allows the balance of the mortgage to float up and down. A traditional mortgage has the terms of the loan (amount, amortization, rate and term) clearly outlined and registered against the property and does not really allow for changes to these terms. As you make your monthly payments the balance of the loan goes in one direction....down. On the other hand, a collateral mortgage allows you to register the value of the mortgage for as much as you want. In TD’s case they will go up to 125% of the value of the property.

This makes it easier for you to access the equity in your home at a future date. Since the loan is already registered at the higher value, it is just a matter of advancing the client more money without having to alter the terms of the registered mortgage which saves time and money.

Sounds great right? Not really. There is a big downside to collateral loans which makes them very unattractive in most situations. Simply, collateral mortgages take away your choice. Upon renewal with a traditional mortgage the client is able to shop around and possibly move their mortgage to a new lender with a more attractive rate or product. The legal work is minimal and is usually covered by the new lender free of charge. However, the more complicated structure of a collateral loan takes quite a bit more legal work and is therefore not covered by the new lender. In short, it is going to cost the customer money to get a better rate. TD is betting most clients will not want to incur this expense and will stay with TD even with a less attractive rate.

The collateral structure allows the bank to change the terms of the loan after closing. This can be helpful if you want to borrow more money, but can also be quite helpful when the bank wants/needs to change your interest rates. In some cases, missing a payment can trigger an increase in your rate.

As well, for some, having easier access to the equity in their home can be a slippery slope. TD would like people to think the collateral mortgage is all about customer service, but in reality is about customer retention. With any mortgage you should always read the terms carefully and know exactly what you are getting.

For more information on collateral mortgages please visit www.YourLowMortgage.ca or contact Invis Mortgage Broker, Brad Compton at 416-671-2183.

David Pylyp This was a small change that has gone un-noticed by a number or people until they need to adjust their lines of credit or change lenders. It is always advisable to have your financing reviewed by an independent third party. Always great advice.

Is Bloor West for you? Homes west Toronto?

How about Bloor west Village or Baby Point for you? I have a duplexed detached property with a mutual drive and single garage at the rear with additional parking available. It is a 24 X 120 foot lot. Immediately at west of Jane at Annette.

The UPPER level has been divided into a FLAT with separate entrance from the front door and is simply Living Room Bedroom and Kitchen Downstairs is a two bedroom open concept with sauna in the basement and a knock out 4 pc bath

ASKING is $625,000

Photo stream for the complete Property is here;

https://picasaweb.google.com/DavidPylyp/Methuen?authkey=Gv1sRgCMP9hZv_pu-zuQE#slideshow/5613293224954282402

Video Virtual Tour is available and searchable on youtube.

http://www.youtube.com/watch?v=xA7ehWcjhcA

Showing are available at this weekends OPen houses Both Saturday and Sunday.

This property is tenanted so there are some rules.

If not this property, we could find you something else.

Complete the dream home criteria available here to start your home search;

http://www.eleganthomesinwesttoronto.com/agentprofile/homefinder.cfm

or http://www.humberbayshore.com/agentprofile/homefinder.cfm

David Pylyp

Accredited Senior Agent Toronto Realtor

RE/MAX Realty Specialists Inc., Brokerage

905 272 3434 or direct at 647 218 2414

East Oakville bungalow Homes west Toronto

East Oakville Bungalow nr Ford Drive and Dunedin for your Homes west Toronto

Spacious well maintained three bedrooom bungalow on a 60 x 100 foot lot,

Two car garage with inside entrance to your home, Very Private Back Yard, fully fenced and gated, Full mature flush landscaping from your personal deck.

http://davidpylyp.com/search/feature.cfm?ml_num=W2124844

Additional Property Pictures are available here; Just make it Play!

https://picasaweb.google.com/teddip/OakvilleBungalowBrookmill?authkey=Gv1sRgCMbBks6Gyc3XWw#slideshow/5615922762675951746

Video of Property and Virtual Tour searchable and available on youtube

http://www.youtube.com/watch?v=OyoLdHkmrHU

Property has brand new broadloom over parquet hardwood flooring, Rec Room is glorious!

Drop by and have a look see.

If not this property, we could find you something else.

Complete the dream home criteria available here to start your home search;

http://www.eleganthomesinwesttoronto.com/agentprofile/homefinder.cfm

or http://www.humberbayshore.com/agentprofile/homefinder.cfm

David Pylyp

Accredited Senior Agent Toronto Realtor

RE/MAX Realty Specialists Inc., Brokerage

905 272 3434 or direct at 647 218 2414

Avoid Buyer Representation Mistakes

Buyer Representation Agreements: Make sure buyers understand what they’re signing
The most common complaint to the Real Estate Council of Ontario (RECO) is from consumers who say they didn’t understand what they were signing when they entered into a Buyer Representation Agreement.

Hundreds of telephone inquiries are fielded by RECO on this topic each year, according to Registrar Allan Johnston, who adds that consumers and registrants need more education and awareness around this particular document.

“This is very prevalent and is likely the number one issue among RECO officers who deal with complaints,” says Allan Johnston. Disputes arise on points such as the services to be provided, the length or term of the agreement, options available to the consumer, whether early termination of the agreement is available and under what terms, and how complaints will be resolved.

“The more educated that both consumers and registrants are about what they’re signing and what it means, the better the chances are of reducing complaints,” he adds. “It’s much better to prevent misunderstandings at the outset than to deal with the consequences after the fact.”

Most registrants are well aware of this and make every effort to ensure that their clients are protected and understand the document in front of them, says Allan Johnston. “However, real estate is a competitive business and people can be in a hurry these days, so some may not take the time they should to explain things.”

The Toronto Real Estate Board (TREB) ran an advertising campaign to raise awareness and promote the value of Buyer Representation Agreements and the services that REALTORS® bring to the public, says Bill Johnston (no relation), President of TREB. Visit www.BRAfirst.ca to check it out.

“It’s important for REALTORS® to sit down with prospective buyers from the very beginning and have a full, thorough discussion about their wants, needs and desires, and at that time you should also lay out clearly what services you can provide,” he says. “It’s important because you’ll learn whether you want to work with them and vice-versa. At the end of that comprehensive discussion, the Buyer Representation Agreement should be presented and explained thoroughly in order to create an exclusive, mutually beneficial relationship.”

Complaints from a consumer who claims she didn’t know what she was signing can sully the reputation of the real estate profession as a whole, Bill Johnston notes. “It tars us all with the same brush, and if a thousand real estate transactions occur, unfortunately the public will focus on the one that wasn’t done properly rather than the 999 that went well.”

The duration of an agreement can be an issue if the buyers are unaware of what they are signing or if the agreement is introduced at an inappropriate moment, Bill Johnston notes. The document should not be slipped into a stack of paperwork during an offer on a particular property, he says.

“That is unscrupulous behaviour and it cheats the consumer,” he says. “When buyers are putting in an offer on the house of their dreams, they’re so excited that they have stars in their eyes and they don’t care about paperwork, so they may not realize the implications of that document. Then if they don’t get the house and the relationship sours, they may discover that they’re committed to something they didn’t realize. They say they feel like they went on a blind date and ended up in a marriage that they couldn’t get out of for six months.”

Shorter terms on an initial Buyer Representation Agreement are a way for both parties to test the waters, he adds. This agreement can be like a “trial marriage,” says Bill Johnston, and it can be structured initially for 10 days or two weeks rather than three months.

From the REALTORS’® perspective, a Buyer Representation Agreement is beneficial because it demonstrates a commitment on both sides, even if it’s for a short time, he adds. The agreement ensures that the broker or salesperson will put the buyers’ best interests at heart, while committing the buyer to the REALTOR® for a given period. “Without the agreement, the buyers are like second-class citizens who lack the commitment from me that I’m working for their best interest, and meanwhile I’m concerned that despite the hours and effort I’m putting in for them, the buyers may drop me at any time and go to work with someone else. Once both parties have signed, I’m committed to them and they’re committed to me, even if it’s just for a few weeks.

“Many REALTORS® say that prospective buyers won’t be willing to sign a contract, but they will if they are properly approached,” says Bill Johnston, who is also a lawyer with a specialty in agency law. “Explain it thoroughly and get it all down in writing from the outset.”

Verbal arrangements are sometimes the basis by which buyers and real estate professionals operate, but they are non-binding on the buyer and do not benefit either party, he says. Verbal agreements aren’t worth the paper they’re not printed on, he laughs. Without a signed agreement, misunderstandings can develop, he says. The Buyer Representation Agreement outlines in detail the length of the exclusive relationship, the amount and nature of the commission (i.e. flat fee or percentage), and the geographical area to be covered.

Once an agreement is signed, the REALTOR® is fully committed to putting the clients’ best interests first, and the contractual relationship outlines in detail the rights and duties of both parties. “At that point I’m bound by laws and a code of ethics to look out for your best interests as a buyer,” says Bill Johnston. “One of the key obligations to the buyer is to stay within the confines of the REALTOR’S® expertise. That means if a buyer wants to look in a market area unfamiliar to me as a REALTO®, then I should refer the buyer to an expert in that area.”

Guidelines for REALTORS® on Buyer Representation Agreements
To prevent misunderstandings, use the following guidelines as a minimum to ensure that you are protected and that consumers are fully informed on their Buyer Representation Agreement before they sign.

•Inform them of the type of services that CAN be provided and, once agreed upon, the particular services that WILL be provided under the agreement
•Ensure that the buyer is fully aware of the geographic area to which the agreement applies as well as the type of property and price range
•Make the buyer aware of the term of the agreement and what process is in place to resolve disputes
•Encourage the consumer to ask questions related to the agreement’s content and that the answers provided are truthful and fair
•Be sure that the buyers fully understand their obligations related to any commission that they may be required to pay under the agreement
•Take time to ensure that the consumer has carefully read the agreement, understood its terms and acknowledged the agreement.

This is a worthwhile update from OREA.

The highest complaint is indeed that the Purchasers didn't understand what they were signing and thus did not have the ability to provide INFORMED CONSENT

The real estate agent that has you under contract is entitled to their commission for counselling, educating and helping you select a property; having said that, merely signing you to a Buyers Representation Agreement without fulfilling their portion of duties promised and contracted for under that agreement does not make it enforceable.

An agent may threaten you with legal action but they must prove in their claim that;

• you had an understanding sufficient to make an informed consent,
• Explained the form and obligations clearly
• Prove that they deserve the commission for the work they provided.

Maybe Stan Gelman could give us some Case law;

What Makes a Community

What Makes that special Community in West Toronto

Its a beautiful start to the Summer in Bloor West Village I'm with Michael Krisa and I'd like want to talk about what makes a community worthwhile to live in. Give us your thoughts..

This is a perfect example. You're basically in the corridor of High Park, which is a lovely area in Toronto. Pardon the back ground noise. Its kind of contradictory, but they are doing construction. Look at the ambiance. You've got these trees that are hundreds of years old.

Century Type Homes and this is something that you cannot replicate. You cannot reproduce this.

Then when you ask what makes community, I look at something like this as opposed to a cookie cutter made in a formulae type community that we see happening all across the United States and Canada today.

In the small subdivisions you have great prices for the house and the white picket fence, but here you have the coffee shop on the corner with wifi, you have the pastry shop and the bakery right down the street. You have that infill of business and restaurants and The flavour and character of evenings.

That's a perfect example; The flavour and character because when you live in the burbs, You need a car...

You cannot move

The Big demand is Oh.. lets be green. Let's eliminate the car

How can you eliminate a car when whole subdivions are built around the fact that you have to

get in to the car to drive 10 miles and pick up your mail, or get anywhere and that's in the city Versus when you look at something like this the infrastructure is set up in such a way that that you don't need a car.

Exactly

Stroll to the bus stop, stroll to the bakery Its almost akin to what happens in England,

you have your local pub, you've got little local grocery store, keep in mind the refridgerators are this big. Every has to be within walking distance because the whole day is based around community and getting your meal... versus here where you drive forever but that's what we've grown up with.

It's changing as we become more attuned to aging and demographics, mobility. That People will want services that are inherently in the city I think its going to bring people back in to be closer.

I think you are seeing it now... that there is a big influx of the younger crowd, that did grow up in the burbs, are now coming back into the inner city And you see this whole rejuvenation, Lets call it, the Urban slum what used to be is now being Modernized and turned into Loft apartments and cool areas are being reborn and thats really exciting to see happening in the city. They don't need a car. They are relying on local transportation. Getting Back to your thing.. What makes community?

The people, The people. You need that glue and the glue is the local services the local shops and merchants That's what Makes it.

Thanks for coming down to Bloor west Village in Toronto