Do we care if Ontario sells off Land Registry?

Why we need public input on the land registry system

Ontario’s new Electronic Land Registration Services Act appears to be an attempt by the provincial government to raise cash by selling off registration access rights, and potentially even registration data, to address its budgetary needs.

The Act received royal assent on May 18, and will come into effect on a day to be proclaimed by the provincial government — without debate or public input. It was introduced on March 25 as part of one of the government’s budgetary bills, and passed through the legislature without any real public knowledge, no publicity and no input from users of the electronic land registration system.

The Act was introduced and administered by the Ministry of Finance, rather than the Ministry of Government Services, which normally oversees the land registration system. During the last 30 years, the Ministry of Government Services and its predecessors have proactively sought and responded to input from the major stakeholders prior to virtually all legislative and regulatory amendments to the electronic land registration system. The system we have now is far more user friendly, and operates far better, as a result of this input from the major stakeholders and the corresponding cooperation from the ministry involved.

In other words, this convention of prior stakeholder consultation works well and the public is much better off for it. Why the change in procedure?

This new Act provides for the government to enter into “service provider agreements” where it will license to a service provider the access, use, copying, selling and other dealings with the land registry and writs data, and the resulting sublicensing to the end user. The Act also creates the office of the Electronic Land Registration Services Commissioner to oversee and regulate the financial and operating relationships among the government, the primary land registration services provider and the subsequent end users. This Act also exempts these agreements and the information provided to the new commissioner from public scrutiny under the Freedom of Information and Protection of Privacy Act.

Shortly after the passage of the new Act, the public became aware that the Ontario government was seriously considering creating one big “SuperCorp” by amalgamating Ontario Power Generation, Hydro One, Ontario Lottery and Gaming Corp. and the LCBO in order to sell 20 per cent or more of this large entity, thereby raising cash to address the current liquidity needs of the government. The new Act seems to be another attempt by the provincial government to raise additional cash by selling off access rights, and possibly the registration data, to address the cash needs in the current budgetary cycle.

One need only consider what happened with the sale of Highway 407 or the sale by the City of Mississauga of a portion of its hydro corporation, to appreciate the potential problems and long-term pain that can result from such decisions by the government.

The current electronic land registration system was built in a joint venture with Teranet Inc. and the provincial government subsequently entered into an exclusive license for the operation and management of the electronic land registry system with Teranet Inc. This license expires in 2017, and the government has until at least 2014 to decide whether it will renew Teranet’s exclusive license on its expiry in 2017.

Other alternatives to consider at that time include having the province operate the land registration system itself or, more likely, inviting competitive bids from multiple third parties for the subsequent operation of the electronic land registration system. There does not appear to be any reason to have this new piece of legislation passed and service provider agreements negotiated now.

A number of real estate practitioners and other electronic land registry system users have started to question the fees charged by Teranet, especially in view of the corresponding fees being charged in other provinces for access to their newer electronic registry systems. Although we may be faced with the current exclusive license for its remaining term, there is no reason not to open this service to competition after the expiry of the current license.

This concept of the partial sale of public assets to raise money to invest in current budgetary items is problematic in several ways.

The first concern is that any potential buyer will only invest significant dollars in all or some of these assets if they gain a reasonable degree of control over such assets. That loss of control generally hurts the public, since there are significant increases in access fees and other costs, and a reduced ability of the government to make decisions in the public’s best interest.

Money raised by selling public assets is, for the most part, only partially used to pay down debt or for long-term infrastructure projects which will benefit the province. Large portions of the money raised from prior asset sales by the province have been used to subsidize current services to the public which have no long-term financial benefit. Some skeptics have alleged that these subsidized services serve only to buy votes for the government in the next election. What we end up with is short-term gain in exchange for long-term pain.

At the very least, the government’s decision regarding the electronic land registration system should be the subject of an open consultation and public debate well in advance of any final decision. This would allow the public and all stakeholders to be fully informed and express their views.

At the time of writing this article, the negative publicity and public outcry appear to have caused the provincial government to reconsider the creation and sale of the so-called “SuperCorp.” We can only hope that similar pressure will cause the government to reconsider any rash decisions about the electronic land registration system.

Steven Pearlstein is a partner at Minden Gross LLP in Toronto and a certified specialist in real estate law.

David Pylyp This is definitely worth some long term conversation. What are your thoughts?

FSBO in West Toronto, Etobicoke,Mississauga

With the explosion of the internet in users and websites, it would seem that real estate agents may be compared to being in the buggy whip business according to byowner websites.

While agents are required and responsible to provide accurate property records, exact and post factual data on their listings. Professional experienced real estate agents are very careful in how they answer questions or make promises because they are held to a higher standard that is enforced by any of the 3 or 4 real estate boards they may belong to as well at RECO the provincial licensing authority.

The FSBO sites are plentiful (and embellish their readership and success claims to help you part with your advertising dollars) and I even sponsor a dedicated space on one nationally based website to assist FSBO's marketing efforts, they cannot replace the realtor based MLS.ca (recently rebranded as REALTOR.ca) website when it comes t0 finding MOST the properties that are for sale. When looking thru a sampling of "available" listings for Listing Prospects, I realized that more than 95% has ultimately listed with a brokerage.

If the sites were that successful why was this ratio so high? This was for a sampling of 100 homes located in the Etobicoke, Mississauga west Toronto (GTA).

Yes, I will concede that NO ONE, knows the house better than the owner, but after that, is the owner as versed about the local employers, best mode of transit access, schools, community centers, local information and lore, community action groups, future planning developments and homes/neighbourhoods under construction, financing, special offers from LENDERS, home staging, candid advise about dressing your home for success and pricing your property correctly into the market based on SOLD competition. Who will hold the hand of the Buyers in the car for the next half hour driving thru the neighbourhood and pointing out the last sales and describing or showing the details from their neighbourhood comparible data.

After the concept of SAVE SAVE SAVE the commission, the Buyers who are skilled to buy a private listing are looking to ALSO save save save on the purchase price. Real Estate agents are negotiators; to bring parties together, fascilitors to encourage a transaction, hand holders to nervous buyers, rain makers to bring prospects to your listing, showcase and feature your property both online with IMPACT advertisings and Google search responses.

There was another thought that came to mind after reviewing many of the FSBO sites. The majority of SELLERS were selling the first house they had ever owned; often purchased new from the builder, in heavy traffic neighbourhoods for new construction. Once away from the high traffic areas for buyers its a much tougher road to attract prospects to see your home. In my 20 years of selling real estate and more importantly helping family's fulfill their housings needs, I have rarely come across a FSBO who has sold multiple times.

I merely ask a humble question, after you have sold your home privately, will you be using a REALTOR? The answer always surprises the owner in replying that they would be using an agent.

Mark Argentino articulated a point very well recently when he said "there are four people involved in your real estate transaction; the Seller, The Buyer, and usually two agents. It is inevitable that the person with the strongest arguments, best presented details, negotiation and persuasion skills will take the business to his side.

Having more unorganised FSBO websites with limited content does not detract from MLS.ca or RE/MAX.ca where your listings are prominantly displayed or showcased on my own websites. Your listing can have its own domain name such as the address, or merely a page that is pointed within the website. The result is the same, YOUR HOME is featured online to find a buyer, (regardless of their locale) showings occur and hopefully your home will go under contract.

If you are the Buyer I add a satisfaction guarantee.

When it comes to property's paranormal history, it's buyer beware

In the real estate field, when the value of a house is, or could be, affected by a history of murder, suicide, ghosts, hauntings or other unexplained happenings, it is said to be stigmatized.

This may occur when the real estate becomes psychologically affected or tainted, even if the perception is based on non-physical, non-scientific or even irrational perceptions.
In the marketplace, the big issue has always been whether there is an obligation to disclose the nature and existence of the stigma to potential buyers.

In the early 1980s Dorris Reed purchased a house in California from Robert King. Neither King nor his real estate agents told Reed that a woman and her four children were murdered there 10 years earlier. Reed learned of the gruesome episode from a neighbour after she moved in. She discovered that no one wanted to buy the house because of the stigma, and sued to set aside the sale. The California Court of Appeals ruled in Reed's favour, declaring that there was a duty to disclose facts known or accessible only to the seller if the information has a significant, measurable effect on market value.

Quoting Shakespeare's The Merchant of Venice (Act 2, Scene 2), the judge said, "Truth will come to light; murder cannot be hid long."

Shortly afterward, California became the first state to pass a law defining the disclosure responsibility of an owner and real estate agent when selling stigmatized property. The law requires an agent to disclose the fact of a murder on the property for a period of three years after the event.

A similar case occurred in 1989 when bond trader Jeffrey Stambovsky put a deposit on a $650,000 house overlooking the Hudson River in Nyack, N.Y. Unknown to him, the vendor had published stories in Reader's Digest about the home's ghost, a cheerful little fellow in a revolutionary war uniform. The house had also been included in local walking tours and described as a "riverfront Victorian (with ghost)."

The court said the real estate broker, as agent for the seller, was "under no duty to disclose to a potential buyer the phantasmal reputation of the premises," and admitted that Stambovsky hadn't a "ghost of a chance" of proving fraud.

Nevertheless, Stambovsky got his deposit back because the house had a prominent reputation and the non-disclosure of its history struck at the very essence of the contract between buyer and seller due to the reduced value of the house.

The lesson to be learned from the Nyack case is that if the public believes it to be real, it is real – whether the ghost exists or not.

About half of all American states have laws requiring disclosure of property stigma, as does Quebec. Disclosure rules in the rest of Canada, including Ontario, are weak, and in general, the rule is caveat emptor, or buyer beware.

Barry Lebow is a Toronto land economist, arbitrator and educator who lectures on haunted and stigmatized houses. He believes Ontario law should be amended to protect buyers and require disclosure of paranormal happenings. Frequently, says Lebow, the realtor becomes the ``fall guy'' for failing to disclose the history of a house, even if the seller is not totally honest with the listing agent.

There is no shortage of haunted houses in Ontario. In his 1996 book, Haunted Toronto, and in his newly released The Big Book of Canadian Ghost Stories, John Robert Colombo details the locations of many haunted properties, inhabited by made-in-Canada ghosts. For the whereabouts of more haunted premises, I also recommend torontoghosts.org, the website of the Toronto and Ontario Ghosts and Hauntings Research Society.

Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818. Visit the column archives at http://aaron.ca/columns/toronto-star-index.htm for articles on this and other topics.

Western Canada on verge of housing slump

Updated Fri. Aug. 8 2008 CTV.ca News Staff Western Canada is on the verge of a housing slump with almost every major city suffering from inflated market prices, according to a new study by a pair of Merril Lynch Canada economists.

The report shows that homes in Regina, Saskatoon, Vancouver, Victoria, Calgary, Edmonton are all overvalued by more than 10 per cent. In B.C., Victoria and Vancouver's market prices are estimated to be inflated by about 35 per cent. Saskatchewan's housing market is said to be overvalued by about 50 per cent.

Part of the problem is that too many homes have built over the last six years, leaving a surplus on the market.

In nearly every western province, there are twice as many homes for sale as there are being sold. As the new home market slows down, there are worried that there may be layoffs in western Canada's busy construction sector.

But Pamela Alexander, a real estate analyst with Re/Max, said she believes the market will settle soon.

"That economy is super strong, oil and other commodities have really just helped drive the prices up," she said in an interview with CTV Newsnet. "Real estate is cyclical in nature. In Vancouver and Victoria, I don't think they've had any type of correction in more than 20 years.
"There is a chance things will settle down, that there will be more listings on the market and that prices and growth will ease the next year or so," she continued.

The rest of the country, including Toronto, is better balanced, the analysis concludes. However, Sudbury and Montreal are also similarly overvalued.

Alexander said that while housing prices in Ontario have been high, the increases have been steady and the market has remained stable.

The calculation was done by economists David Wolf and Carolyn Kwan who looked at current prices, affordability and long-term trends. The report was released the same day Statistics Canada revealed data that showed residential and corporate construction had dropped.

"Our conclusions show that we think we've peaked in terms of the housing valuations and we're in a period of sustained decline going forward," Kwan said.

The economists predict Canada's housing market will mainly suffer from a cut in demand for an excess of housing available. The market will also stall as new buyers choose to hold out from buying homes at a high price. The suburbs will feel the impact as higher fuel prices will likely discourage commuters from buying a home too far from their workplace.

Kwan says that the housing market decline could affect other areas of the economy as well.
"As people buy fewer homes, we'll also expect them to buy fewer of the things that go into new homes, for example drapes and furniture and things like that," she said.

Canadians are at an advantage because of the country's stringent credit conditions that applicants need to meet before being approved for a loan. In the U.S. a flexible credit plan allowed many people to buy homes who otherwise wouldn't be able to afford it.

The market downturn will not be as detrimental as the housing slump that has plagued the markets in the U.S., the economists say.

David Pylyp The problem with continuous new releases like this is that the media posts both sides of the story to sensationalize the headlines. Toronto Market watch is posted for you to decide for yourself. IMHO, after 20 years of selling homes, families want the stability and pride of ownership that creates a long term (financial equity) nest egg. With many cultures joining Canada, families all want the same long term home ownership goals.

"The only values in real estate that can accurately be forecast or predicted are historic."

Phantom Bids

Phantom Bidding? Give it a rest!
I'm not sure who to blame for the latest rant about phantom bids. Is it Michael Manley, Owner/Broker of Prudential Properties who ran unsuccessfully for President of the Toronto Real Estate Board (TREB) last year, or The Toronto Star? Regardless, yesterday's article on the subject was another case of a reporter or an unsuccessful candidate making something out of nothing.

A phantom bid occurs when (I presume) an agent takes it upon him/herself to lie about an offer that doesn't really exist thereby potentially driving up the price of the real offer. RISKY indeed. This could back fire big time. Ask experienced agents how many times an existing offer is withdrawn because they are now in competition. Many buyers simply refuse to compete and choose to back off instead.

Besides, as I've mentioned before here in this blog, it would be very easy to confirm the existence of an offer if something was smelly and suspicious. Highly skilled agents have a nose for this kind of skulduggery.

The article stated that "many agents agree (the practice of phantom offers) is widespread in Toronto" and yet in all my years of selling houses in the city, I've never met one of these agents. Come to think of it, I've never encountered a phantom offer. What's all this fuss about?

TREB concluded after studying the issue that this kind of unethical activity is governed by the Real Estate Council of Ontario (RECO) and no further action was required. It seems to me this is true. We are governed pretty strictly by RECO and they'd pursue this with enthusiasm I'm sure.
Manley on the other hand wants an online registration system. However, as TREB president Maureen O'Neill points out, this would be "cumbersome and unworkable. For instance, it wouldn't allow for last-minute bids" and believe me folks, last minute bids not only happen frequently, they're often the highest offer. I don't feel like sitting in front of an eager Seller and saying, "sorry, we can't look at this offer because it wasn't listed on the TREB online registration system that we set up to prevent phony bids that are so rare, few of us have seen them". Nope. That's not a chat I'm going to have anytime soon.

I'd be more inclined to pay heed to this complaint if Manley and his brokerage were bigger players in the local market. As it is, compared with RE/MAX and others, his share of the market is pretty tiny.

Come to think of it, I'd like to hear what the other companies have to say about this. Duncan Fremlin RE/MAX Hallmark Ltd.

Toronto Star Article that revived this topic string; http://www.thestar.com/article/459084

SPIS form could spell rocky legal ride for buyers

An Ontario court decision released last month serves as a potent reminder of the dangers of using a Seller Property Information Statement (SPIS) when selling real estate.

In December 2003, Paul and Judith Riley signed an agreement to buy a home in Tavistock from John and Kimberley Langfield.

Prior to signing the offer, the sellers completed and delivered to the buyers an SPIS on a standard real estate board form.

The form, in wide use throughout parts of Ontario, asks questions about the condition of the home. It states that the answers are being provided for information purposes only and are not warranties. It also warns that sellers are responsible for the accuracy of all answers.
In the Tavistock transaction, the sellers stated in the SPIS that there were no defects in any included appliances or equipment, that the fireplace was in working order, and that the sellers were not aware of any problems with the swimming pool or any moisture or water problems in the basement.

After the closing in April 2004, the purchasers discovered a "flood" in the basement and some of their possessions were destroyed or damaged by the water. They also found that the swimming pool filter and pump were not working.

That summer, a public health inspector visiting a house under construction next door discovered a pipe coming from the Riley property containing raw sewage. He also discovered an abandoned well.

The inspector ordered the Rileys to install a new septic system and fill in the abandoned well.

Fortunately, the Rileys' title insurance policy paid for those costs.

When the extent of their other losses became clear, the Rileys sued the Langfields for damages of $97,500, claiming misrepresentation and breach of contract. The trial took place in February in Kitchener before Justice Donald J. Gordon.

After hearing all the evidence, the judge dismissed the claim for damages to the basement and awarded the Rileys $2,100 for the costs of repairing the pool and the gas line to the fireplace. Legal costs for the lawyers on both sides for the five-day trial could easily have reached $100,000.

The most interesting part of the judge's decision is his criticism of the realtors for each of the parties, for their lack of "any due-diligence inquiry" and especially their failure to take action with respect to the possibility of water problems.

"Realtors are expected to provide advice and direction to their clients," the judge wrote. "They are paid to act as professionals. They are not simply tour guides walking through a residence. The cavalier attitude of both realtors with respect to the SPIS is troubling. The purpose of the SPIS is not to protect realtors from liability. They have a due-diligence obligation."
Lawrence Bremner practises real estate law at Gowlings in Hamilton and is an authority on the use of the SPIS form in Ontario. He is also a director of the Real Estate Council of Ontario, the governing body of Ontario real estate agents.

Bremner emailed me last week to say that the SPIS forms "are used in most of Ontario, in part, to protect agents – but they fail miserably in that regard.

"They are litigious," Bremner wrote, "as they ask simple questions that require complex answers and ask questions that many lay people don't understand and they ask sellers to disclose more than they are required to do.

"The simple fact is that if the seller gets sued, then the agent and the broker will be joined in the action" for their role in using the forms.

I've said it before, if your agent insists on an SPIS, get another agent or hire a good litigation lawyer. Based on the flood of new cases involving the use of the SPIS, chances are increasingly good that you'll wind up in court.

Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818. Visit the column archives at http://aaron.ca/columns/toronto-star-index.htm for articles on this and other topics.

Why Dealing with a Full Service Bank Makes Sense

In the competitive mortgage market with Toronto Real Estate purchases, clients are chosing Virtual Lenders to get the lowest rates possible. In principal this makes sense.

"Over 30% of all my June closings have required bridge financing" said Lindsay Doke, Trusted Mortgage Adviser with Royal Bank.

Bridge financing occurs when the client is moving into their new property prior to the closing of their existing home. With homes now staying on the market longer than they were 6 months ago this is a huge issue.

"This has been a blessing for me and my branches given many of my deals which had been approved conditional on the sale of their home but did not firm up till within weeks or some instances days of the purchase closing" continued Doke.

With a mortgage broker, a bridge loan takes much more time and is far more complicated. The broker is paid a commission to secure the deal with the many institutions he can place it with, also since many of these are virtual lenders the client has to drive out to offices in remote locations to sign bridge loan documents. i.e.. MCAP a large provider of mortgages broker sourced which is located in Kitchener, Ontario.

Bridge loans can take up to 5 days to be processed for this reason and that puts huge stress on the purchaser and the relationship he has with his or her agent. "I saved a deal this week which was anchored with a broker who was taking too much time to complete bridge financing. I closed the deal in less then a week during the busiest time of our year and saved the transaction." continued Doke.

A bank mortgage specialist such as Lindsay Doke, works with his branch partners, liases between the lawyers, so the client signs the bridge documents when they sign the mortgage documents. In some cases they even drive the bridge loan documents to the lawyers! Think about this next time you are looking to send a deal to a broker whether he is on-house in your office or someone you do business with.

If you are not using my services perhaps its time you thought seriously to try me. Lindsay Doke is a Trusted Mortgage Adviser with The Royal Bank in west Toronto thru to Oakville.
Doke, Lindsay [lindsay.doke@rbc.com] or call him direct at 416 464 6423.

Realtors brace for backlash

NEW RULES: Ottawa requires property buyer, seller info

Canadian realtors are bracing for a customer backlash starting today, as they become new foot soldiers in the battle against money-laundering.

Federal regulations that kick in today will force realtors to start asking property sellers and buyers personal information never before required.

In Ontario alone, 47,000 realtors will be expected to fall in line or face stiff penalties.
"We know there is going to be consumer rejection on this and we are just following the law," said Gerry Weir, a London realtor and president of the Ontario Real Estate Association (OREA).

Realtors will be required to ask for the name, address, date of birth and occupation of property buyers and sellers, plus ID such as a driver's licence or passport.

Weir said Ottawa has made little effort to educate people about the changes, and realtors feel they're being forced into an uncomfortable enforcement role.

He said realtors will have to keep the information for seven years and submit it on request to the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC), a federal agency set up to track suspicious transactions that could be related to money- laundering or terrorism.

If the buyer is foreign or from another part of Canada, the real estate broker will be required to hire an agent in the buyer's community who can confirm the buyer's ID.

If a client refuses to disclose the information, Weir said, a realtor would have to walk away from the deal or report the person to FINTRAC.

"Even if I have known you for 30 years, I still have to ask for that information," he said.
Weir said it could get even worse.

He said Ottawa also wanted to require a receipt-of-funds record, with information on anyone who actually supplied money for sales, including relatives or friends.

Weir said the government backed down on that, but he expects it will only be temporary.
"That is the next step; that will happen," he said.

FINTRAC officials appear confused about the new rules.

Spokesperson Peter Lamey at first said one piece of ID was needed from buyers and sellers, and information such as date of birth and occupation wouldn't be required.

He later said the information wouldn't only be required from buyers and sellers, but also from anyone who contributed money to a deal as part of the receipt of funds record, contradicting Weir's belief that Ottawa had backed down on that provision.

Negotiations on the rules were handled by the federal Finance Department and not FINTRAC, Lamey said.

Weir said he understands the need to deal with the problem of money laundering.
For years, realtors have been required to report any suspicious financial transactions to FINTRAC, especially those involving cash payments of more than $10,000.

Weir said he's reported three transactions in recent years, and two involved someone trying to buying a house to set up a marijuana growing operation.

Still, he said only a very small number of real estate transaction are suspicious.
Weir said the government will only do spot inspections during the next six months to ensure realtors and brokers are meeting the requirements.

After that, any realtor or broker who doesn't meet the requirements could face hefty fines or jail time.

Weir said the OREA wants to educate people about the changes, but there've been long negotiations with the government and the rules weren't firmed up until last week.

"We have 47,000 realtors in Ontario that we have to educate by (today)," he said.

Sample forms are available here

FINTRAC Guidelines

Common Law or Married

Another Reason to Tie the knot.

Even though common law marriages are becoming commonplace, the law is still more protective of the rights of married couples. Currently, Ontario law gives special treatment to a home in which a married couple resides- their "matrimonial home". If only one of the spouses ownes the matrimonial home, then he or she needs to have the other spouse's consent to the sale. ( This consent is given both on the Offer at the time of the sale of the home and again on the Deed at the time of closing.)

In the case of a couple. who have been living together long enough to be considered "common-law spouses" , the home owning spouse does NOT require the consent of the other common-law spouse to sell.

FSBO Myths

I recently came across an ad for a For Sale by Owner site.

In their Myth's about real estate section they made remarks about all the reasons to sell you home by yourself. For only $695 they will "list" your house. * all savings based on 5%, 6% and 7% commissions. SAVE SAVE SAVE

They are indeed all tempting points. You can earn the portion of the commission you pay by dealing with the lawyers, bankers, mortgage company, insurance company and property appraisers. Attend every showing at an hour's notice, keep the home sparkling clean all the time. Dealing with Buyers and their objections or comments. Your lawyer can draft a contract.

All, while you're at work...

Then they went on to discuss how 50% of the market is now FSBO?

Their websites receive thousands of hits?? The Elegant Homes websites receives close to 10,000 hits per month, people from other Canadian cities considering moving here.

How does that compare with Millions of Hits at MLS.ca (soon to be renamed Realtor.ca May 28, 08) received on a monthly basis. Searchable properties by Neighbourhood and pricing. All property Details have verified Data.

The site gave an example of how a home sold in Toronto at $16,000 had a real estate fee of $960.00, many years ago. My father, new to Canada, bought a house in 1954 at $16,000. In the heart of Roncesvalles Village. This was more than 4 times his annual blue collar wage, we had no family car, there was no cable, there was no TV till '68. [He] was concerned with earning a wage and providing for his family and future education.

I would like to see what gas prices were in 1954. I remember filling up the family Beetle for $4.00 (that was in '71 when gas was 49 cents per gallon).

Please, consider some of the unsubstantiated and outrageous claims with a grain of salt.

Real estate results and sales are tracked and reported (because taxes are collected at each sale)

Realtors need to comply with myriad regulations that puzzle buyers and sellers. Legal disclosures, multiple offer acknowledgements, Consent and awareness of Agency Laws. Buyers Agency and Representation, and you haven't seen any houses yet.. Confirmation of Representation, prior to signing an offer to Purchase.

Buyers who are cruising FSBO's are also looking to "Save the same commission' and usually are looking for undervalued properties and unsophisticated Sellers.

Newest is the FINTRAC Reporting. If you use cash.... we need to tell.

I am obligated to obtain and retain photo ID or passports. (photocopy)

More for Sale by Owner Myths

Is it time to "move up?"

Chances are when you bought your first home you were thinking of it as a "starter home" and dreamed of owning a larger and better home one day.

With today's mortgage rates in the lowest range they've been for almost 30 years, you might be pleasantly surprised that you can afford that "move up" house now. Using the equity you've built up in your current home, your carrying charges may not be much larger than what you've been used to paying. If you're curious to find out, ask David Pylyp to help you calculate carrying costs on a "move up" home.

There are many reasons why you may wish to have a larger home including a growing family, the desire to have more bedrooms so the kids can have their own space. Or maybe you want a larger yard, a garage or a home with a private driveway. Whatever your reasons, moving up to a new home can be very satisfying.

It's also a smart move because the equity in your home will continue to grow and the value of a bigger and better home will be ultimately greater over time. As well, the pride of ownership in a bigger house will probably be even greater than you had when you bought your first home.
When you decide that moving up is the way to go, be sure to enlist the services of a REALTOR®. Your options can be confusing at times, but a REALTOR® can help you make the right choices.
David Pylyp will help you determine the market value of your current home and therefore the price range you should be considering in a move up home. You'll need to determine where you want to move. Do you want to stay in the same neighbourhood or move on? There are almost as many individual choices on location as there are homes. David Pylyp, a REALTOR® is skilled and knowledgeable in all aspects of a real estate transaction and can ensure you make a smooth move.

Moving up to meet your changing lifestyle and needs can be an exhilarating experience. Your home is probably the best investment you'll ever make so why not take advantage of current market conditions and enhance your investment today. OREA

Call David Pylyp today and let's get started.

Creating Curb Appeal

They say you can't judge a book by its cover. But when it comes to houses, the exterior can be just as important as the interior if selling or buying.

When selling, it is the outside, or the home's curb appeal that often determines whether the inside is ever seen. How a house 'shows' from the street can tell a potential buyer a lot about what it may be like inside. Even if the inside is the sparkling, charming, structurally sound dream home they've been searching for, a buyer is not going to forget a cracked driveway, fallen shutters, overgrown grass and flower beds.

That's why most REALTORS® recommend a house not be seen for the first time at night. If you have no choice but to view homes at night, always be sure to drive past them during the daytime before making any final decisions.

For sellers, there are many ways to enhance the exterior of a home to achieve the curb appeal necessary to attract prospective buyers. Start by taking a close, objective look at your home from the curb. Be sure to view it from different angles. Ask friends and neighbors for their unbiased opinions. What are the appealing features? What's not so appealing? What can you do to improve its appearance?

Are the shrubs untrimmed? Are there broken doors and windows, loose screens and railings? Does the exterior trim, or entire surface, need a paint job?

The interior may be clean, without a leaky faucet, cracked floor or loose door hinge in sight. But if the exterior roof, gutter, walls, driveway, garage and yard look dirty and untidy, chances are you're not going to get a lot of potential buyers knocking at the door.
Creating curb appeal is making your home inviting from the outside -- where first impressions begin. This doesn't mean spending a great deal of money remodeling and renovating. Adding a new front verandah might add a lot of curb appeal, but so will a couple of wicker chairs and potted flowers by the front door - at a lot less cost.

Here are some more tips for making the outside of your home attractive and inviting:
Clean up the yardMow the lawn, trim the hedges, weed the flower beds, get rid of dead trees and shrubs; get rid of any broken lawn furniture; shovel the walk and driveway in winter; rake the yard in the fall.

Repair any problemsIf the roof is damaged, repair it. Also repair any doors and windows that have loose hinges or other damage; fix storm doors and window screens; caulk window exteriors; clean and repair sidings and other structural flaws.

Eliminate clutterIf you have yard and construction debris piled up along the side of the house, or elsewhere, get rid of it. The exterior of your home should be as uncluttered in appearance as the interior. This includes cleaning out the garage - a major breeder of clutter. Be ruthless. If you haven't used something in a year, give it to charity or recycle it.

Give siding a fresh new lookCleaning the exterior surface is all your home may need for a fresh new face. Before rushing to paint siding, try washing it. For painted wood siding and aluminum siding, use a solution of one cup strong detergent and one quart chlorine bleach in three gallons of water. Be sure to wear rubber gloves, goggles and other protective garments. Work from the bottom up and rinse thoroughly.

To spruce up vinyl siding, hose it down, sponge it with a mild liquid detergent and rinse.
Use paint to brighten, re-proportion exteriorA paint job can do wonders for the exterior of a home. A low house can look more graceful and tall from the curb by emphasizing its vertical features. Paint elements such as doors, shutters and corner trim in a color that contrasts with the siding material or color. On a high home, emphasize horizontal by using a contrasting paint color on window sills and fascia boards. You can also make a tall house look lower by painting it a dark color, provided that the roof is dark too. Conversely, a light color will make a home look larger.

Co-ordinate the exterior 'look'The more co-ordinated your house looks from the outside, the more appealing it will be. Co-ordinate the 'look' of your home by painting the garage, tool shed, playhouse and other outdoor structures with the same color schemes as the house. If your house is a mixture of conflicting textures - vertical siding, shingles and brick, for instance - try painting them all the same color, or in two related shades of the same color, to create a harmonious look. Dark tones work best when working with conflicting textures.

Use flower powerWell-placed flowers, trees and shrubs can really make the outside of a home look inviting. Not only does attractive landscaping invite buyers, it can increase the value of a home. Even without major landscaping, flowers can make a yard look colorful and pleasant. Plant them in garden beds, hang them from railings and porch ceilings, add flower boxes to window sills. There is no limit to the power of flowers.

At night, highlight garden features with spotlights and floodlights. Well-lit paths and entrances promote safety, discourage burglars and are an added feature to any home. A pretty wreath on the door and a welcome mat will finish things off.

7 Deadly Homes Sale Sins

Selling a home expediently and profitably takes far more than faith. It takes keen insight. Successful real estate ventures don't happen "on a wing and a prayer," but rather by knowing what specific pitfalls to avoid in working toward closing a heavenly deal.

The following list of "7 Deadly Home Sale Sins" details key offenses sellers should avoid at all costs to get on the path toward the promise land of profitability:

7 Deadly Home Sale Sins

Pride. Buying a house is always an emotional and difficult decision. As a result, resist the urge to "hard sell" and excessively boast about your property. Instead allow prospective buyers to comfortably examine your home - without you present if at all possible. If you're here while a prospective buyer is inspecting, don't try haggling or forcefully selling based on your subjective views of how great your home is. Instead, be friendly and hospitable and largely out of sight. Pointing out any unnoticed enhancements and amenities is fine. Being receptive to questions is advisable, but this is not the time for negotiation and salesmanship.

Envy. Don't be jealous of what the other homes in the neighbourhood sold for, as the intention to fare better financially with your real estate transaction than others have realized in your community can - and will - negatively impact your judgment and objectivity as it relates to YOUR home sale. As most markets have declined over the past couple of years, it is very common for sellers to covet what others have garnered in the past. Current market conditions play a large role in setting the sale price, so rather than review sales over previous months and years it's wise to consider the currently available inventory of homes comparable to yours relative to pricing, days on market and other such indicators.

Anger. If an offer comes in lower - way lower - than expected, stay cool and consider the opportunity for what it's worth. Don't let a low offer insult and anger you to the extent that your objectivity is impaired and you render an emotion-driven response. Indeed, don't let a bout of righteousness cloud your judgment in considering all of your options. Many deals come together that, at first, seem unlikely to have a chance. When that low offer comes in, appreciate that someone has thrown their hat into the ring. Continue sending counter offers until both you and the prospective buyer find some kind of middle ground - or you feel it's time to fish or cut bait.

Greed. Every seller naturally wants to get the most money for his or her product. The most common mistake that causes sellers to get less than they hope for, however, is listing too high. Listings reach the greatest proportion of potential buyers shortly after they reach the market. If a property is dismissed as being overpriced early on, it can result in later price reductions, which reflect poorly on the listing. Overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price than they likely would have had they been priced properly in the first place.

Sloth. Simply put, complacency and laziness have no place whatsoever in the high stakes game of real estate. When attempting to sell your home to prospective buyers, ensure your home looks as clean, tidy and generally pleasant as possible. Make sure everything looks presentable at all times so that you're ready for last-minute showings. Remove as many personal possessions as you can from around the home, including photographs, so the prospects can better envision themselves living in the space. A poorly kept home, or one with too much clutter, will make it dramatically more difficult for buyers to become emotionally interested in your property.

Gluttony. When selling a home, resist the urge to be penny-wise and pound-foolish. You may need to spend some money in order for the property to realize its full sales revenue potential. Even before you list your home, hire professionals to inspect the roof, pool and other structural elements for termites (yes we do have neighbourhoods in Toronto with Termites) and other important buyer considerations. Make ALL repairs before you list the house on the market. Also, don't forget to stage the home. Plant fresh flowers, apply a coat of new paint, lay new carpet, add furnishings and decor items. Today's buyer is discriminating and has many choices - don't give them a reason to have concerns. Make the best first impression possible.

Lust. An overly intense desire to secure a specific, non-negotiable sale price can - and will - adversely impact your home sale. Sellers should always be willing to negotiate price with a prospective buyer, and resist the urge to improve their profit margin by cutting corners or generally overpricing. Without such price flexibility and a competitively priced listing, the house will languish too many days on the market, which puts it at a strategic disadvantage and may ultimately force the home to sell for a lower price than it would have otherwise.

Let me help you get the most money for your home in the least amount of time with the least amount of inconvenience. Listing Commissions are negotiable.

Special offer for Clients and Customers

I have some rather exciting news to announce.

We have struck a special arrangement with Canadian Floor Coverings Ltd., from Toronto to help people prepare their homes for sale.

Simply put, if you need to re do the carpet, hardwood or linoleum & ceramics, these costs can be deferred until the sale of your home is completed.
In this instance only 35% of the job is required as a down payment. The balance is paid from the proceeds of the sale.

Not only does this make the home more desirable but it directly adds to the sale value. Improves property presentation and puts more money into your pocket.

Take a moment and think about whom, either at work or at home, could benefit from this and forward this email to them, please.

Canadian Floor Coverings over view

In addition, I am seeking Advertising Partners to promote their business or service. The Elegant Homes website has exceeded 12,000 hits since the first of the year.
If you know someone who would like to offer special discounts my clients, I can create a web page for them as Home Resources. This could be a restaurant or a retail brick and glass location but also extended to service providers. I am not seeking people to pay me. These would be Advertising Partners, where we help each other to promote ourselves.

Holmes turns nightmare into dream home

Owners saved from 'contaminated' project
Kerry Moore, The ProvincePublished: Sunday, February 24, 2008
Last year, Mike Holmes received 65,000 letters pleading for his help.

Holmes of HGTV's Holmes on Homes turns his critical eye on home renovations in his weekly series. Of those 65,000 sad cases, he says, "only 13 or 14 make it to the small screen."

The process of selection, he explains, ends up with his staff going to a handful of homes and videotaping the interior and exterior. From what he sees on tape, he says, he chooses "according to how much the owners need me and how much audiences can learn by seeing it on television."

The burly, no-nonsense Holmes was in town last week to receive an honorary doctorate from the B.C. Institute of Technology for his work in improving the building trades.
The Province caught up with him, on his cellphone, while he was taking a tour of BCIT's facilities.
There's a kind of "tell," he says, when he tours horror-homes. "If you see sloppy finishing you can guess that there's also trouble underneath."

On Feb. 28, one of the worst situations Holmes has encountered is the subject of a two-hour HGTV special. "I knew there was big trouble when I first saw the house. I was still in my truck in the driveway and the husband and wife were standing there crying. . . ."

At that time, he says, they were just begging to get an occupancy permit to move back in. "I told them it couldn't be saved."

Holmes doesn't mince words when talking about this home's "so-called renovator/contractor."
"He 'liened' them for $343,000 on top of the $219,000 initial cost. I've never seen anything so contaminated."

After satisfying legal concerns, the Etobicoke, Ont., house was levelled and Holmes started building the new house, calling the project "Lien on Me." In the process, he took the opportunity to build not only a solid house but a remarkable one.

"The (Feb. 28) show featuring this house will knock you off your feet. It was lots of work and time and money, but we put it all together -- it's energy-efficient beyond anything out there.
"Over the years I've seen the different shades of "green" efforts in making houses energy-wise. What we have done is put them all together."

Holmes says he chose to educate himself on what technologies were available before working with the architect. The knowledge and the products are all out there, he says, and it will get easier to find them and apply them.

"I say to people who want these innovations -- and I hope you do -- that if something goes wrong, you can't get an average contractor to fix it." When they are installed, he says, get a list of people to call for assistance. "Whatever you do, don't play with them."
Or you may find yourself writing a begging letter to Mike Holmes.

kmoore@png.canwest.com

One person can make a difference. I have been asking the Toronto Real Estate Board and RECO to provided seminars on the Contractors Construction Lien Act for Realtors to assist clients. When commiting to a job get a contract in writing.

So Many people in real estate now

CROWDED FIELD

Despite the increased competition in the market, more and more people want to become licensed real estate agents.

» The Real Estate Council of Ontario, or RECO, the regulating body for agents in Ontario, says there has been a 20 per cent overall increase in the number of registrants in Ontario since 2005, with the agency processing more than 400 applications for new registrations each month. In 2003, there were about 300 new applications per month processed by the agency.

In 2005, Ontario had 40,665 registrants with 11,675 of those coming from Toronto (M postal codes) and 26,792, which included Toronto and Brampton, Durham, Mississauga, Oakville, Milton, Orangeville, and York. In 2007, Ontario had 49,429 registrants with 12,472 of those coming from Toronto (M postal codes) and 29,222, which included Toronto and Brampton, Durham, Mississauga, Oakville, Milton, Orangeville, and York.

As of Feb. 1, 50,000 agents were registered with RECO in Ontario. » An increase can also been seen (in the past three years) in memberships with the Toronto Real Estate Board: 2005 – 22,953; 2006 – 24,894; 2007-26,861; 2008 – a further 185, taking the total number close to 27,046.

» ReMax says it has 8,540 agents in Ontario and Atlantic Canada. (nationally 17,600).
In 2007, of the 751 agents it added to its roster, 445 were in the Ontario-Atlantic region, which was the largest growth for ReMax globally last year. As well, in 2006, of the 1,200 new agents, 650 were from the Ontario-Atlantic area. This region has been growing by 400 to 600 agents on average per year, with growth ranging from 5 per cent to 10 per cent over 10 years.
Sources: Real Estate Council of Ontario, Toronto Real Estate Board, ReMax Rakshande Italia

Having had a carreer in corporate finance on Bay Street, I have thrived on the flexible schedule capability of being in real estate yet I am determined to be a valued asset and resources to my clients. Many now are looking for advise in dealing with parents, their homes, and elder care. each situation requires tact and patience. It's interesting to see my clients children now buying their first home.

With almost 20 years of real estate experience in the Toronto West Market, I must always upgrade my skills to meet the market's expectations. This now includes a strong website presence, innovative presentations via email and video marketing. The market requires a balance of doing it quickly, getting the best price, or doing the cheapest possible. In life, as with many things, usually you have to settle for two out of three.

Is this the year to upgrade homes?

Toronto Real Estate Board reports sales near 3,000 at mid-month

February 20, 2008 -- Resale home transactions in the Greater Toronto Area declined in the first two weeks of February, Toronto Real Estate Board President Maureen O’Neill announced today.
The first half of the month yielded 2,775 transactions, down 14 per cent from the 3,240 sales recorded in the same timeframe last year. The moderation in sales was more pronounced within the City of Toronto--down 18 per cent to 1,066 from last February’s 1,308—than in the 905 suburbs, which saw transactions off 11 per cent.

“It’s important to recognize that the mid-month report provides an indication of market conditions based on a very brief period,” said Ms. O’Neill.

“However, we believe the harsh winter weather we’ve experienced in the early part of the month has had a negative impact on both sales and inventory levels. If you can’t get buyers out to your open house, then you are less inclined to list. And fewer listings means less appealing product for the potential home-buyer. It’s a compound effect.”

Although sales eased, several positive factors were also noted. At $385,735, the average price in the GTA rose seven per cent compared to $358,533 recorded in mid-February 2007. Within the City of Toronto, the average rose 11 per cent to $434,657, although pockets within the East end (Agincourt, for example) rose at the more affordable pace of around five per cent. As well, properties are remaining on the market fewer days.

The average number of days on market is currently 31 versus 35 days at the same time last year.

Furthermore, a few neighborhoods both within and outside of the 416 area code saw increased sales over the first half of February, 2007.

In Ajax (E14) sales were up 11 per cent compared to mid-February 2007, based mainly on an increase in detached home sales.

In the West region, the W3 (York South) district saw a 41 per cent increase in transactions, driven by strong sales of semi-detached homes.

Central Richmond Hill (N04) also experienced a notable increase in sales compared to the same timeframe last year. Transactions were up 21 per cent, primarily due to an increase in attached row sales.

“We are optimistic that we will see a strong spring market because the economic fundamentals remain in place,” said Ms. O’Neill. “Prices are still particularly affordable in Toronto’s East end.”

On the same day RE/MAX released a Decade report thats looks at major Canadian cities and their growth in real estate values.

I invite you to email me, your thoughts on How the Miller Tax (Toronto LTT) will impact Toronto sales, The BC Carbon Tax (only 2 cents per liter now) imposed on fuels, that may spread across Canada as a green tax and what is seen on our media as a North American Economic overview of slowing sales in general.

Top 10 bathroom renovation tips

Consider some important points before updating the look of your bathroom.

An effective bathroom design should address all your needs, physical and spiritual. Here are the most important tips to consider when considering bathroom renovations.

1 Choose elegant fixtures.A pedestal sink with graceful lines is more attractive than a blocky cabinet vanity. A classic claw-foot tub is like bathroom sculpture. Even enclosed in a deck, the simple lines of the lip have an inherent beauty that surpasses most acrylic versions.

2 Sit in a bathtub before buying it.Bigger isn't always better. A 60-inch tub is fine for most people. It offers enough room to stretch out and provides a secure foothold, so you don't float into oblivion when the tub is full. Assess the angled back and lip for comfort and neck support -- a tub for two people slants at either end and has taps in the middle. If you only have enough space for a small tub, buy an extra-deep one.

3 Select durable flooring. Ceramic, marble and stone tiles are all excellent durable and water-resistant choices for a bathroom. Subfloor heating coils will make these hard surfaces warm. Well-sealed hardwood floors offer natural warmth and act as a foil for the other hard, cold surfaces in a bathroom.

4 Hang a stylish mirror. One beautifully framed mirror over a sink is more attractive than many surfaces covered with mirror. Supplement it with a wall-mounted adjustable makeup mirror, and consider installing a lighted, mirrored shaving niche in your shower stall.

5 Use found space. Take advantage of space between wall studs by recessing a tall storage cabinet into the wall to maximize vertical storage while saving floor space. The cabinet should have an interior depth of at least three inches and a door flush with the wall.

6 Build a shower area. Consider building an open-concept shower area that doesn't need a curtain or door and is less confining than a standard shower stall. In addition to well-designed drainage, a ceiling-mounted rain showerhead and/or a high wall-mounted showerhead that splashes less water will keep the area outside the shower drier.

7 Share space for added function.In homes with back-to-back bathrooms, a shared shower with access doors to each of the bathrooms maximizes limited space. Or turn a closet located next to a bathroom into a small ensuite with access to the neighbouring bath.

8 Design lighting that works. Good lighting is imperative. Combine halogen pot lights with wall sconces beside or over the mirror for lighting with no shadows. Always install dimmers.

9 Buy a quality toilet.When buying a toilet, it's not necessary for you to spend big bucks, but you don't want to scrimp too much, either. You can get a good-quality one-piece toilet for about $400. Models with elongated bowls and seats are usually most comfortable.

10 Incorporate luxury into your room. If you're fortunate enough to have lots of space to work with, indulge yourself with an expanded spalike bathroom that includes a dressing room -- a haven for privacy and relaxation. Outfit it with a television, fireplace, exercise equipment, makeup vanity and even a large comfortable occasional chair upholstered in thick white terry-cloth.

Give Homebuyers a Break

Toronto Land Transfer Tax Takes Effect, REALTORS® Call On City to Give Homebuyers a Break

February 4, 2008 -- With the City of Toronto’s new land transfer tax coming into effect last week, even as City Council considers a property tax increase, Toronto’s REALTORS® are calling for City Council to give homebuyers a break.

“Toronto’s REALTORS® and the public continue to believe that a Toronto land transfer tax is an unfair way for the City to raise revenue,” said Maureen O’Neill. “The City’s land transfer tax took effect last week, even as current and future homeowners face a property tax increase at double the rate of inflation. The City can’t have its cake and eat it too. Homebuyers deserve a break.”

TREB’s statistics of housing sales have shown an interesting trend since City Council’s approval of a Toronto land transfer tax last October. When City Council approved the Toronto land transfer tax, it also decided to exempt home purchases made by December 31, 2007. In both December and November of last year, there was a significant increase in market activity. For example, although the month of December typically sees less market activity because of the holidays, in December 2007 housing sales in Toronto were up by 26 per cent over December 2006, significantly higher than the 6 per cent increase for the GTA as a whole. TREB will be releasing market statistics for January 2008 on February 5.

“Clearly, there has been tremendous market activity in Toronto since Council’s approval of the land transfer tax. Council’s decision to grandfather home purchases made by the end of 2007 means that those homebuyers will avoid the City’s tax,” said O’Neill. “With the City’s grandfathering period over, and the Toronto land transfer tax taking effect last week, we are continuing to watch the market.”

TREB is paying close attention to the City’s 2008 operating budget, which proposes a residential property tax increase of 3.75 per cent, almost double the 2007 average Toronto inflation rate of 1.9 per cent.

“The City can’t keep raising tax after tax on homebuyers. Enough already,” said O’Neill. “The proposed budget released by the City last week is like a weight around the ankle of Toronto taxpayers. The new land transfer tax on top of a proposed property tax increase, at double the rate of inflation, sends the wrong message to homebuyers. The land transfer tax should be rolled back immediately.”

TREB will be providing input to City Council with regard to the City’s 2008 operating budget and hopes that City Council will use it as an opportunity to give homebuyers a break.

“We look forward to working with City Council as they debate the budget. We hope that the panel appointed by Mayor Miller last fall will recommend some real options for savings and that the City will move quickly to prioritize its core services,” said O’Neill. “The Toronto land transfer tax is an unfair way to address the City’s financial challenges. At the very least, we expect it to be rolled back as savings from uploading and other revenue sources are realized, as was approved by City Council last October 22,” said O’Neill.

Municipal Spending is out of control

Even before Toronto announced its latest property tax hikes yesterday, Toronto took the dubious honour for having the highest property taxes in Canada, according to a detailed report issued by the city of Edmonton. Together with Ottawa, Brampton, Hamilton and London, Ontario municipalities take five of the top six spots on the list.

This is something most homeowners in these cities know intuitively every time they pay their tax bill. Now they have it confirmed by an objective report that compared more than 30 municipalities across Canada.

Toronto ranked first with the highest taxes paid at $3,912, followed by Brampton at $3,826. Ottawa was third at $3,532; Hamilton and London were fifth and sixth at $3,305 and $3,078 respectively. St. John's, Newfoundland, deserves credit for taking last place with the lowest average tax at $1,540, and Surrey, BC was second last at $1,814.

This sad but helpful property tax news is timely as city councils across Ontario prepare their budgets. As well, Premier McGuinty's freeze on assessments for homes expired at the beginning of 2008. Not only will tax rates be going up, but for the first time in a few years homeowners will take a second hit if their home value reassessment shows an increase above the average increase. Assessment changes will take effect for 2009 property tax rates.

What is especially helpful about the Edmonton report is that it compares property taxes in a dollar value instead of as a percentage. Some mayors, like Toronto's Mayor Miller, try to defend high property taxes by hiding behind what appears to be a lower rate than other cities. This is hiding because the average value of a home is high in Toronto so the total taxes paid for a Toronto homeowner are higher. When paying taxes one cares less about the rate paid or the details of the complicated formula used. Instead, one cares about how much money is being taken year over year. That is the only comparison relevant to a taxpayer, not whether the rate is 0.82 in one city versus 1.15 in another city.

The main reason for high and growing property taxes in Ontario is that municipal spending is out of control. Municipalities have a spending problem, not a revenue problem. While mayors continue to clamour for more and more money from many sources, their appetites for spending grow unchecked.

Data from Statistics Canada shows that municipal revenue across Ontario has been running at three times the rate of inflation. In 2006 municipal revenue was up 6.3% while inflation was only at 2.0%; in 2005 revenue was up 7.2% and inflation was only 2.2%. Despite Ontario municipal revenues ballooning from higher taxes, more transfers from other levels of government, higher user fees and new taxes in Toronto; mayors continue to complain that they don't have enough.
It is interesting how mayors can work together cooperatively when it comes to demanding transfers from other levels of government or getting new taxing authority from the province. If that same energy were transferred to creating efficiencies and reducing costs, the report out of Edmonton might show a different -and welcome -conclusion.

- Kevin Gaudet is Ontario director of the Canadian Taxpayers Federation.

This is in addition to the New Toronto Land Transfer Tax now in place. A home of $500,000 in Toronto will cost $6,475 Ontario LTT plus $ 5725 In Toronto LTT.

No one wants to kill the construction engine in the South Ontario real estate market but they sure are trying.