A $10,000 temporary, one-time refundable income tax credit for first-time home buyers who purchase a newly constructed home, effective today, February 21, 2012 through to March 31, 2013.
HST Threshold being raised to $850,000 effective April 1, 2012
Government announces the transition rules for the HST early
The Honourable Kevin Falcon, Minister of Finance, held a press conference today in Victoria to announce transition rules for the harmonized sales tax and the affect it will have on the home building industry. Effective April 1, 2012, the threshold for new housing rebates will be increased from $525,000 to $850,000. Furthermore, this rebate will not be available for secondary homes (outside the Metro Vancouver and Capital Regional District).
The Victoria Real Estate Board was present for a pre-briefing with Minister Kevin Falcon, along with other key stakeholders from BC’s housing sector in the province.
Be reminded that if your clients are considering amending existing agreements as a result of this announcement, they should seek legal advice before doing so.
BCREAis working with legal and tax experts to prepare draft contract language that REALTORS® can include in their listing agreements and Contracts of Purchase and Sale, as well as a series frequently asked questions. This material is expected to be available the week of February 20, and will be posted on the BCREA website as a resource for both REALTORS® and their clients.
-The B.C. new housing rebate threshold will be increased to $850,000, effective April 1, 2012 with a maximum rebate of $42,500.
-A provincial grant of up to $ 42,500 will be available for purchasers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000, effective April 1, 2012.
-For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the seven per cent provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of two per cent on the full house price.
-The temporary housing transition measures will be in place for two years, until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.
The Canadian Ministry of Finance has also released its transitional rules, with examples related to the sale of real property. The rules note:
-In the case of a sale of real property, tax generally becomes payable on the earlier of the day on which ownership is transferred to the recipient and the day on which possession of the property is transferred to the recipient under the agreement of purchase and sale. However, where the property supplied is a residential condominium unit in a condominium complex which has not, at the time possession is transferred, been registered as a condominium, tax is not payable until ownership of the unit is transferred or, if earlier, 60 days following the date of registration.
Property Assessment Appeals Drop 25 Per Cent for 2012
VICTORIA, Feb. 10, 2012 /CNW/ - British Columbian property owner satisfaction is up significantly in 2012 as BC Assessment announced today a 25 per cent decrease over last year's property assessment appeal rates.
Both public inquiry and Notice of Complaint (appeal) statistics decreased for 2012 when compared to the same time period in 2011 (January 1 to January 31):
39,084 general inquiries were received province wide at 16 BC Assessment area offices, an 8 per cent decrease over last year's total of 42,562.
12,823 formal Notice of Complaint appeal letters were received requesting independent assessment reviews by a Property Assessment Review Panel (PARP). This is a decrease of 25per cent from last year's total of 17,080 letters requesting reviews.
84 per cent of appeals were submitted using either BC Assessment's convenient online appeal form or via email, up from 77 per cent in 2011.
A total of 398,404 property owners visited www.bcassessment.ca (up 15 per cent from 2011).
A total of 3,076,418 searches were performed using BC Assessment's free online service, e-valueBC, to compare property assessments (up 28 per cent from 2011).
Any person is entitled to file a Notice of Complaint (or appeal) about an assessment on the grounds set out in Section 32 of the Assessment Act and to have that assessment reviewed by an independent PARP. An important note is that the final number of 2012 appeals is likely to further decrease as some property owners opt to withdraw their appeals during the PARP process, February 1 to March 15.
Year to year, over 98 per cent of property owners accept their property assessments without proceeding to a formal, independent review of their assessments. As a percentage, less than one per cent of property ownershave appealed their assessments for 2012.
BC Assessment values over 1.9 million properties in nine separate property classes. The value of all real estate on the annual provincial assessment roll is $1,106,710,671,771 for 2012, an increase of over 6 per cent from 2011.
Over the past decade Victoria home prices increased by 128 per cent. Not only have they outperformed equity markets, but also almost any other type of investment one could have made at the end of 2001. Real estate returns in this area represented a sizzling 8.5 per cent average annual compounded rate of return.
If, after a decade of living in his home, an owner sells today, hoping to bank some cash, he’ll have to move to a lower-cost area, downsize his home, or both.
Many of us can attribute our increasing net worth largely to this unrealized, historical increase in the value of our home. But, will this trend continue for the next decade? Not very likely.
Whenever assets, be they gold, equity markets, or real estate, increase dramatically in value, the risk of a significant correction in value also increases. Real estate prices in Greater Victoria specifically now epitomize such risk.
In Canada today, it is estimated that some 43 per cent of total household income is needed by an average family solely to finance their mortgage, property taxes, and utilities. In British Columbia this figure exceeds 70 per cent. In Vancouver, it’s a horrendous 92 per cent. For Greater Victoria, a specific number is not available, but since our home prices are second only to Vancouver’s, we know that our costs are much higher than the Canadian average. Such costs are clearly not sustainable.
Either wages must rise dramatically – a highly unlikely event – or house prices must soften, if not drop drastically – especially in B.C. In Greater Victoria three years ago, about 20 per cent of active listings sold in any one month. Today that number is close to 10 per cent. With interest rates at rock-bottom levels propping up house values, we know rates can only move upward, eventually further dampening market activity and home values. Because of the premium location we enjoy in Canada, we are more likely to endure moderate pricing squalls over the next decade, rather than the devastating monsoon that has occurred in the U.S., but I would keep an umbrella close by.
A retired corporate executive, enjoying post-retirement as a financial consultant, Peter Dolezal is the author of three books. His most recent, the Smart Canadian Wealth-Builder, is available at Tanner’s Books.
by Victoria Real Estate Board on Mon, Jan, 9, 2012 01:58 PM
You have decided to buy a home. You've analyzed your budget, talked to a REALTOR® and figured out what kind of house you want. But, the most important step may have been left until last: picking the right neighbourhood.
Choosing not only the proper community, but also the right neighbourhood, can have a tremendous impact on your family's happiness and the value of your investment.
The first thing many people do when considering a move is drive around various communities gaining a sense of which areas they like. Buyers find out how close the major highways are and if the neighbours keep their yards tidy. Most will make sure they know the location of the closest mall. But what about public transit, colleges, schools, libraries, parks, recreation centres and fire or ambulance stations? Is the local police station close to your prospective neighbourhood? All of these factors can make or break a decision to buy a certain property.
Your REALTOR® can provide you with a wealth of general information on different neighbourhoods. For detailed information, it's a good idea to contact the appropriate agency directly. Here are a few suggestions to consider:
Contact the municipality
Municipalities have a wealth of information on hand. Some distribute brochures and booklets containing the locations of colleges, libraries, ambulance stations, hospitals, parks and transit stops. It's also a good idea to check the location of recreation centres, swimming pools, ice rinks and the like, along with the programs they offer.
Call the local police and fire departments
Ask them how many stations service the community and their locations. Also ask about response time to emergencies.
Contact local School Boards
The Greater Victoria, Saanich, Sooke and Gulf Islands School Districts will be able to give you information on the locations of elementary and secondary schools within their jurisdictions. It's a good idea to mark the routes your children would take and then walk them yourself.
Your REALTOR® and MLS®
Your REALTOR® will be able to offer you general advice and information on many of the above topics. Remember, your REALTOR® has access to the Multiple Listing Service® (MLS®) and can provide you with a customized list of properties available for sale in the neighbourhood of your choice that meet your needs, wants and budget.
by Ratesupermarket.ca on Tue, Dec, 27, 2011 02:07 PM
Mortgage Rate Outlook Panel
Our panel of mortgage experts share their views on Canadian mortgage rate trends each month by answering this question: What is your outlook for Canadian mortgage rates over the next 30-45 days? View this month's answers below.
Panel Consensus Our panel's final verdict for this month's fixed, and variable mortgage rates.
FIXED RATES
Down
VARIABLE RATES
Unchanged
Summary
Can fixed mortgage rates get any lower? This month our panel members aren't ruling out a decrease to fixed rates in the short term. At the same time, they feel quite strongly that variable mortgage rates will stay at current levels well into 2012.
Fixed Rates: Down
With no quick fix on the horizon for the European debt crisis, the global economic outlook continues to be pessimistic causing downward pressure on longer term bond yields. Couple this with decreased demand for home loans during the busy holiday season, and it is likely that fixed mortgage rates will stay low or even drop further over the next 30-45 days.
Variable Rates: Unchanged
Recent GDP numbers were surprisingly strong, inflation is near the target range, and a global economic meltdown could be on our door step. The last thing Governor Mark Carney wants to do is shock consumers during the busy holiday buying season with news of an interest rate increase. As a result, our panel members agree that the Bank of Canada will hold rates steady at their next meeting.
Stable and Balanced Real Estate Market Predicted for 2012
Carol Crabb, 2012 President of the Victoria Real Estate Board, says that stable and balanced market conditions are expected to continue in the Victoria area housing market in the New Year. Crabb noted that real estate sales have been generally higher in recent months compared to last year and with little change anticipated in interest rates balanced market conditions should continue for the foreseeable future. "Despite global economic uncertainty, the local real estate market has shown remarkable stability. The Victoria area remains a destination of choice for many people and there is every expectation that stable market conditions will continue in the coming months," said Crabb.
Crabb added that while the number of properties available for sale has been declining in recent months from record highs over the summer, prices should remain stable with little significant change for the foreseeable future.
The 2012 Board of Directors is as follows: Carol Crabb -- President; Dennis Fimrite -- Past President; Shelley Mann -- President Elect; Mike Nugent -- Secretary-Treasurer. Other Directors are Tim Ayres, Guy Crozier, Mike Holmes, Wendy Moreton and Andrew Plank.
The 2012 Directors take office effective January 1.
by Propertywire Canada on Tue, Dec, 13, 2011 07:06 PM
Is there such a thing as a best time of year to sell a house? Certainly, seasonal factors come into play when trying to sell a home, but there are other things to consider as well, like the tug and pull of supply and demand, as well as unique local market conditions.
No matter when a home goes on the market, one should take a few things under consideration that will likely affect not just the ability to sell a property, but more importantly the ability to get your asking price. Timing, it seems, is everything.
The Economy
While the economy does not follow the predictable ebb and flow of the seasonal changes in real estate and in buyer attention, the economy, it’s state and it’s prospects boil down to property values, and consumer confidence. When the economy is under fire, people are nervous about their jobs. There is generally a reluctance to spend, accumulate debt or make major purchases.
The market will tell you what a home is worth. The problem is, during an economic downturn, the market may value your home lower than you had hoped, or than from when you started.
That may succeed in removing a number of buyers from your pool. For those that must buy a property though, the economy will play less of a factor in the decision to purchase, but it may give them power at the bargaining table, and it may be more difficult to get the desired price. Interest rates figure into this as well. The lower they are, the more your pool of buyers may increase as well, as the cost to borrow comes down and people, in theory can borrow more.
Springtime
In a country like Canada, where there are four distinct seasons, seasonal influences play a large part in creating good selling conditions.
Wintertime brings with it a series of challenges, among them the weather, holiday distractions and lack of interest from buyers.
When the snow thaws though, and greenery re-emerges from the ground, buyers tend to re-emerge as well. The spring tends to be the peak of the market, simply because the timing suits people in general. The weather is more favourable, properties generally can be better displayed, and moves and property closings can more reasonably be managed through the summer months, so for those with families relocating is less disruptive.
According to data, home sales begin in February, with closings peaking through late May, June, July and August- and this has been a consistent trend since the early 2000’s. For sellers then, they will likely have the opportunity to engage more traffic and interest in their homes.
Patience is a Virtue
While the springtime may typically be a more optimal time to sell, there will typically be more competition on the market. Sometimes, if a seller is flexible on their dates, it may be advisable to wait until the spring market to list, simply because of the flood of buyers onto the market. Often, a property will sell for more, and sell much faster because of volume.
As there will be more properties on the market, the seller really needs to take time to make their property stand out, using the slow winter months to actively prepare their homes to list. For some, it can take weeks, or even months to de-clutter and re-organize their properties to best reflect the space, and the positive attributes.
Advise sellers that, even though you may list in the spring, the selling process begins now- behind the scenes. Think staging before selling.
by Peter Dolezal Peninsula News Review on Tue, Oct, 4, 2011 11:45 AM
Over the past few months, bargaining power in residential property transactions throughout the Greater Victoria area has rather clearly shifted in favour of buyers.
Looking for proof? One needs only examine real estate statistics, as published by the Victoria Real Estate Board. In July and August, while the total number of listings increased to around 5,000, sales numbered just over a tepid 500 units throughout the region. At the current rate of sales, this represents a 10-month supply of inventory in our local market — a 15-year record, I believe.
As can be expected, the increasing imbalance between supply and demand is showing up in a lower price trend across all types of residences. While average prices have fluctuated up and down dramatically, the primary cause has been the varying numbers of very high-end homes that sell from month-to-month. More indicative of price trends is the median price. For a single-family dwelling in Greater Victoria for example, the 2010 median price was $562,000. By July and August of this year it was down to $541,000, a decline of 3.7 per cent.
A few months of slower sales and rising inventories is not a definitive indicator of long-term price softening. But sellers would be foolish to ignore these early warning signs. It’s important to note that this early downward trend has emerged even as five-year fixed-mortgage rates are available for as low as 3.44 per cent.
Eventually the North American economy will pick up steam. Mortgage rates will rise. When they do, we can expect more downward pressure on buyer demand.
Despite these indicators, some organizations, including the B.C. Real Estate Association, continue to predict prices “inching up” in 2012. Don’t count on it.
I continue to believe that although we are not destined for a major drop in prices, a modest downward correction is highly likely. Investing in residential real estate today should not be done with the expectation of significant capital gains over the next three to five years.
If you are a buyer, there’s much product to choose from, and little urgency to close an early deal. If you are the seller, be sure to price at the market level — or the only one visiting your home while it’s listed may be your realtor to suggest a price reduction, and perhaps your curious neighbours. Aside from realistic pricing, proper staging of your home and an aggressive marketing plan become more important than ever.
The saving grace for sellers is that more than 500 buyers are looking to purchase a home every month. And they are buying. Despite the dismal summer statistics, of the sales that occurred during that period, I know of two in the past month which sold within a week, and within a whisker of their near $800,000 asking prices. The sellers’ secret? Very realistic pricing and an excellent marketing program, well-executed.
Owning residential real estate in our very appealing corner of Canada cannot help but be a good investment in the long term. The current challenge for sellers is in the shorter term. For those needing to sell their home, ignoring these rather clear market signals will likely lead to lack of success and great frustration.
Remember the facts. No more than about one-tenth of all those listing their home will succeed in selling within any one month. Some 90 per cent will remain without an offer, many not selling even after many months on the market. Price accordingly.
A retired corporate executive, enjoying post-retirement as a financial consultant, Peter Dolezal is the author of three books. His most recent, The Smart Canadian Wealth-Builder, is now available at Tanner’s Books, and in other bookstores.
by First Canadian Title on Thu, Sep, 15, 2011 04:01 PM
Protect your investment. Title insurance offers peace of mind and protection whether you own a home or if you are a first time buyer. One of the most important milestones in your life will be buying your first home. It is an exciting time, and there will be a lot of information that you will be required to understand to ensure everything goes smoothly, and that your investment is protected. Eliminate some of the stress and uncertainty by speaking to your lawyer and ensuring you are protected with title insurance from the beginning. Click here to find out about the Top Benefits of Title Insurance.
If your personal information falls into the wrong hands, a fraudster can use your information to open credit card and bank accounts, run up expenses, or ruin your credit history. FCT offers identity theft protection in conjunction with a new homeowner or existing homeowner title insurance policy. We offer the most comprehensive coverage in our industry. Click here to learn more.
Mortgage Refinancing
FCT is in the business of simplifying real estate related transactions. And, thanks to your lender and FCT, now it's a lot easier to complete your refinance mortgage transaction than it's ever been. Through your lender, FCT has developed a process with your needs in mind as you invest in your future. For more information on how FCT can provide you a fast and convenient refinance experience, contact your lender and ask for FCT.
REALTORS® Participate in Home Energy Ratings Program
Victoria area REALTORS® will play a key role in a Time of Sale Home Energy Labelling Pilot Project that will provide sellers in the Capital Regional District (CRD) with a free (regular cost $150) EnerGuide for Houses rating that will be placed on the Victoria Real Estate Board’s (VREB) Multiple Listing Service® (MLS®) System database. The first 100 homes to register in the pilot will receive a home energy assessment which takes into account a home’s windows, doors, insulation, heating equipment and air leakage.
VREB President, Dennis Fimrite, notes that the program represents Phase II of a similar pilot project conducted in 2010 which offered a BC Hydro rebate of the assessment cost but which only applied to sellers on Salt Spring Island and in the Municipality of Oak Bay. "We are pleased to be part of this much wider program that will benefit more sellers and buyers," said Fimrite. "Today’s consumers are interested in the energy consumption of their purchases. The energy assessment will make sellers and buyers eligible for substantial government rebates for home energy efficiency upgrades; it will also provide sellers with an additional marketing tool by providing potential buyers with important information on the energy efficiency potential of a home," added Fimrite.
The pilot program, which runs from September to December 31, 2011, is a partnership involving the VREB, CRD, City of Victoria, Township of Esquimalt, Town of View Royal, BC Hydro and the Province.
More information on the pilot program is available at www.livesmartbc.ca/energuide or by contacting your REALTOR®.
by Victoria Real Estate Board on Mon, Aug, 8, 2011 10:22 AM
Real Estate Sales and Prices Soften in July
August 2, 2011
A total of 523 homes and other properties sold in July through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down from 618 sales in June but very close to the 527 sales in July of last year. Overall prices, meantime, declined somewhat across all major property types.
Victoria Real Estate Board President, Dennis Fimrite, noted that despite the drop in the number of sales last month compared to June, market activity is now very close to what we saw at this time last year. "In the coming months, we anticipate that market activity will remain relatively stable and similar to what we saw during the summer and early fall months of last year."
Fimrite added that the number of properties available for sale continued to increase at the end of last month with inventory levels currently 14 per cent higher than a year ago. "The available choice for buyers increased further last month with 5,094 properties available for sale at the end of July, up slightly from the 5,050 properties available for sale at the end of June." Fimrite added that the increasing inventory means sellers need to be realistic in pricing their homes in order to attract qualified buyers. "A REALTOR’S® expertise can be invaluable in today’s market to help sellers price their homes to best advantage," added Fimrite.
The average price for single-family homes sold in Greater Victoria last month was $581,117, down from $629,292 in June. The median price also declined to $535,000 while the six-month average declined to $615,439. There were 13 single family home sales of over $1 million in July including two on the Gulf Islands. The overall average price for condominiums last month was $315,371, down from $320,172 in June. The average for the last six months declined to $327,762. The median price for condominiums in July also declined to $289,000. The average price of all townhomes sold last month declined to $412,178 from $444,768 in June. The median price also declined to $385,000 while the six month average declined to $443,341.
MLS® sales last month included 283 single family homes, 147 condominiums, 47 townhomes and 19 manufactured homes.
These documents are stored in PDF format. If your browser already has a PDF plug-in like the Adobe Acrobat® Reader, you'll probably be able to simply click on the document you're interested in to view it here online. You can download and install this popular, free software by clicking the yellow icon below.
The Harmonized Sales Tax (HST) came into effect on July 1, 2010. The provincial and federal governments combined the 7% provincial sales tax (PST) and the 5% federal Goods and Services Tax (GST) into the 12% HST. Some of the transition rules can be quite confusing, so talk to your REALTOR® about the specifics of your situation. In the meantime, we hope the following will help you understand the basics of what is, and what is not, subject to the new tax and how it affects your home purchase.
First and foremost, it is important to note that the HST applies to new homes. It does not apply to resale homes.
New Housing Rebate
You may be eligible for a provincial New Housing Rebate if you buy, as your primary residence:
a new home together with land;
a new home together with leased land;
a new mobile home or float home;
a new home purchased through shares in a housingcooperative; or
a home constructed or substantially renovated (more than 90%) by the owner-builder.
Buyers of new homes are eligible for a rebate of 71.43% of the provincial portion (7% of the HST’s 12%) of the HST paid on the new home up to a maximum rebate of $26,250. Homes priced at more than $525,000 are eligible for a flat rebate of $26,250. This rebate is limited to primary residences. Recreational property not used as a primary residence does not qualify.
If you buy a presale property and the agreement is dated on or before November 18, 2009 and you take ownership or possession after July 1, 2010, you will not pay the HST and will not be eligible for a New Housing Rebate. You will pay the GST. If the agreement is dated after November 18, 2009 and you take ownership or possession after July 1, 2010, you will pay the HST and may be eligible for the New Housing Rebate.
Buying either a new or a resale home
The 12% HST is now charged on a range of goods and services including:
home renovations;
energy efficient appliances, insulation, windows and doors;
heating and electricity bills, telephone, cable;
closing costs such as appraisals and inspections;
moving costs; and
REALTOR® fees or commissions – note that the HST will apply to REALTOR® services performed on or after July 1, 2010. If 90% or more of the services were performed before July 1, 2010, the HST will not apply.
The HST is not the PTT
The Property Transfer Tax (PTT) is a separate provincial tax on all property transfers. The rate is 1% on the first $200,000 and 2% on the remainder of the fair market value of the property (usually the selling price) and is charged on the fair market value (usually the selling price) of the property before the GST/HST is applied. Eligible first-time home buyers may qualify for a PTT exemption. Information about the PTT can be found here.
by Victoria Real Estate Board on Wed, Jul, 6, 2011 04:39 PM
Current MLS® Statistics
July 4, 2011
A total of 618 homes and other properties sold in June through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), up from 572 sales in May and very close to the 625 sales in June of last year.
Victoria Real Estate Board President, Dennis Fimrite, noted that market activity has returned to
comparable levels of a year ago. "Overall sales so far this year are down 21 per cent compared to a year
ago. It’s important to note, however, that the first few months of last year were very activecompared to
this year and we are now seeing a return to similar market conditions of a year ago."
Fimrite added that the number of properties available for sale continued to increase at the end of last
month with inventory levels currently seven per cent higher than a year ago. "The available choice for
buyers increased further last month with 5,050 properties available for sale at the end of June - the
highest monthly level in 15 years." Fimrite add that there were 4,857 properties available for sale at the
end of May.
The average price for single-family homes sold in Greater Victoria last month was $629,292, up from
$628,462 in May. The median price also rose to $569,900 while the six-month average declined slightly
to $619,568. There were 23 single family home sales of over $1 million in June. The overall average pricefor condominiums last month was $320,172, down from $328,345 in May. The average for the last six months rose to $329,402. The median price for condominiums in June also rose to $300,000. The
average price of all townhomes sold last month declined to $444,768 from $466,845 in May. The median price also declined to $399,000 while the six month average rose to $448,159.
MLS® sales last month included 348 single family homes, 177 condominiums, 62 townhomes and nine manufactured homes.
Are you thinking of buying or selling a condominium, townhome or other property covered by the Strata Property Act? If so, it's important to be aware of the documentation Strata Corporations must provide or you need to obtain to ensure you are making informed decisions. Some of the key documents that Strata Corporations must prepare and / or maintain under the Strata Property Act, and which the Strata Corporations would be asked for when a property is listed for sale by a REALTOR®, are outlined below -- note that this is not an exhaustive list.
Strata Corporation Records
Minutes of annual and special general meetings, including the results of any votes
Strata Council bylaws and rules
Budget and financial statements
Correspondence directed to the Strata owners by the Strata Council
Resolutions that deal with changes to common property
A list of Strata Council members and owners
Names of tenants and assignments of voting or other rights by landlords to tenants
The registered strata plan and any strata plan amendments
Access to Records
Under the Act, the Strata Corporation must make these and other records available upon request and provide copies to an owner, a tenant (who has been assigned a landlord's right to inspect and obtain copies of records and documents), or to a person authorized in writing by an owner (such as a REALTOR®) or a tenant as outlined above. The Strata Corporation must comply with such a request within two weeks unless the request is for copies of the bylaws or rules in which case the Corporation must comply within one week.
Information Certificate
Within one week of a request by an owner, buyer or authorized person, the Strata Corporation must provide an Information Certificate disclosing a wide range of information. This includes, but is not limited to, the following:
Monthly strata fees
Any special levies that have been approved
Any amount by which the expenses of the Strata Corporation for the current fiscal year are expected to exceed the expenses budgeted for the year
The amount in the contingency reserve fund
Any amendments to bylaws
Remember, your REALTOR® has the training, knowledge and expertise to guide you throughout the buying or selling process so be sure to check with him or her should you have any questions.
by Canadian Real Estate Association on Mon, Jun, 6, 2011 01:57 PM
Code of Ethics
CREA’s Code of Ethics and Standards of Business Practice has been the measure of professionalism in organized real estate for over 40 years. The first code was approved in 1913 at the convention of the National Association of Real Estate Boards held in Winnipeg. The first Code of Ethics specifically prepared for members of The Canadian Real Estate Association was approved by members in 1959.
The Code establishes a standard of conduct, which in many respects exceeds basic legal requirements. This standard ensures that that the rights and interests of consumers of real estate services are protected. As a condition of membership, all REALTORS® agree to abide by the Code.
Some of the requirements of the Code include:
REALTORS® must disclose in writing whom they are representing as an agent in the transaction. Parties to a transaction must be told what their agency relationship is to the REALTOR®.
Definitions, terminology and presumed agency relationships vary from province to province. Most jurisdictions have their own forms for complying with disclosure requirements, which have been drafted to accommodate agency relationships as they exist in your province or territory.
All financial arrangements between REALTORS® and others (e.g. referral fees, compensation from more than one party, rebates or profits on expenditures) must be fully disclosed to clients;
REALTORS® cannot acquire an interest in property (either directly or indirectly) without disclosing the fact that they are real estate professionals;
REALTORS® cannot use the terms of an agreement of purchase and sale to negotiate commission.
While the Code of Ethics establishes obligations that may be higher than those mandated by law, in any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence.
A REALTOR®’s ethical obligations are based on moral integrity, competent service to clients and customers, and dedication to the interest and welfare of the public. The Code has been amended many times to reflect changes in the real estate marketplace, the needs of property owners and the perceptions and values of society. For more than forty years, through a variety of updates, the CREA Code of Ethics is unchanged in demanding high standards of professional conduct to protect the interests of clients and customers and safeguard the rights of consumers of real estate services.
1.Dedicate myself to making the process of buying your next home as easy and as successful as possible.
2. Respect you, your needs and be honest and forthright.
3. Hold your best interests in the highest regard throughout the process.
4. Value and respect your time, being as efficient and effective as possible.
5. Understand your needs and respond quickly.
6. Consult with you to determine your particular real estate wants and needs.
7. Use my base of experience, knowledge, tools and the most up-to-date training to best serve you.
8. Explain each step of the process and act as a guide to help you make the most informed decisions.
9. Disclose material facts known about the property and respond to questions concerning the property.
10.
Help determine your purchasing power, while explaining alternative methods of purchasing and/or
financing.
11.
Provide an action plan for locating the right property, at the right price and terms, in an acceptable time
frame.
12. To the best of my ability, show you new properties that fit your needs.
13. Provide a Customized Home Search Plan using our MLS® prospecting services, for locating the right property for you, only showing you properties that will best meet your needs and in accordance with FairHousing regulations and ethical real estate practices.
14.
Use the most comprehensive database of listings in the area, to help you find the home that best meets
your needs, whether that be the Multiple Listing Service and/or other methods.
15. Provide the resources of our Company to offer hundreds of listings, allowing you to easily review homes that are right for you, access in-depth information on neighborhoods, and additional information.
16. Use my knowledge and expertise to promote the most valuable purchase on your behalf. I will assist you in evaluating the market value of properties that are of interest to you and help you obtain the most advantageous price and terms.
17. Provide access to financing that meets your needs, at the lowest possible rates available to you.
18. Advise and assist you in completing your purchase agreement, and present your offer with integrity in a light most favorable to your needs.
19. Upon acceptance of an offer by you, pre-settlement activities throughout the closing process will be monitored as permitted by law or local practice.
20.
Offer to provide you with information regarding other professionals (e.g. lawyers/notaries, accountants, inspectors, contractors) that may assist you during and after your move.
by Victoria Real Estate Board on Mon, May, 9, 2011 03:07 PM
Buying or selling a home can be a little confusing. This glossary of some of the most common real estate terms that you are likely to encounter will help you better understand the language of real estate.
Adjustment Date
The day from which all calculations of interest, tax adjustments, utility bill adjustments (if applicable) are made to the credit of the either the buyer or seller. This is usually (but not always) the same as the possession date.
Amortization
The number of years it takes to repay the entire amount of the mortgage.
Appraised Value
An estimate of a property’s market value used by lenders in determining the amount of the mortgage.
Assessed Value
The value of a property, set by BC Assessment, and used by the local municipality for the pruposes of calculating property tax.
Buy-down
When the seller reduces the interest rate on a mortgage by paying the difference between the reduced rate and the market rate directly to the lender or to the buyer.
Closing
Completion of the real estate transaction when the parties involved agree that all legal and financial obligations have been met and the deed to the property is transferred from the seller to the buyer.
Closing Costs
Expenses in addition to the purchase price for buying and selling a property.
Conveyance
The term used to describe the process of transferring the seller’s title to the buyer and indicates all the necessary steps to complete the transfer. This process is usually undertaken by a conveyancing lawyer (or notary) acting for the buyer.
Counter Offer
An offer made by the seller back to the buyer altering one or several terms and/or conditions of the offer as originally written.
Debt Service Ratio
The percentage of a borrower’s income that can be used for housing costs. Gross Debt Service (GDS) Ratio is the amount that a lender will permit a borrower to use from his/her gross income in order to quality for a loan for housing costs, including mortgage payment and taxes (and strata fees when applicable). Total Debt Service (TDS) Ratio is the maximum percentage of a borrower’s income that a lender will consider for all debt repayment (other loans and credit cards, etc.) including a mortgage.
Deed
A legal document that conveys (transfers) ownership of a property to a buyer.
Easement
A legal right to use or cross (right-of-way) another person’s land for limited purposes. A common example is a utility company’s right to run wires or lay pipe across a property.
Equity
The difference between the price for which a property can be sold and the mortgage(s) on the property; equity is the owner’s stake in the property.
Foreclosure
A legal process by which the lender takes possession and ownership of a property when the borrower does not meet the mortgage obligations.
Lien
Any legal claim against a property filed to ensure payment of debt.
Mortgage
A contract between a borrower and a lender. The borrower pledges the property as security to guarantee repayment of the mortgage debt.
Mortgage Insurance
Government-backed or private-backed insurance protecting the lender against the borrower’s default on high-ratio (and other types) of mortgages.
Mortgage - Blended
Equal or regular mortgage payments consisting of both a principal and an interest component.
Mortgage - Conventional
A first mortgage issued for up to 75 per cent of the property’s appraised value or purchase price, whichever is lower.
Mortgage - High Ratio
A mortgage that exceeds 75 per cent of the loan-to-value ratio; must be insured by either the Canada Mortgage and Housing Corporation (CMHC) or by a private insurer to protect the lender against default by the borrower who has less equity invested in the property.
Mortgage - Open
A mortgage that can be prepaid or renegotiated at any time and in any amount, without penalty.
Mortgage - Variable Rate
A mortgage for which payments are fixed but whose interest rate changes in relationship to fluctuating market interest rates. If mortgage rates go up, a larger portion off the payment goes to interest; if rates go down, a larger portion of the payment is applied to the principal.
Mortgage - Vendor Take-Back
When sellers use their equity in a property to provide some of all of the mortgage financing in order to sell the property.
Principal
The mortgage amount initially borrowed or the portion still owing on the mortgage. Interest is calculated on the principal amount.
Property Disclosure Statement
This form enables sellers to disclose known material latent defects and other defects. The form also serves as a checklist for buyers enabling them to address concerns about the property’s condition on the spot. The BC Real Estate Association developed the form. Submission of the form is required before any listing is placed on the Victoria Real Estate Board’s Multiple Listing Service® (MLS®) system.
Property Taxes
Location and the value of the property as determined by BC Assessment affect this levy. Local government determines the rate of taxation. Property taxes are payable on an annual basis.
Property Transfer Tax
Payment to the provincial government for transferring the property from the seller to the buyer. Certain exemptions are available for first-time buyers.
REALTORS®
Real estate professionals licensed by the Real Estate Council of BC who are members of the Victoria Real Estate Board and the British Columbia and Canadian Real Estate Associations. Only these professionals can call themselves REALTORS®.
Rights-of-Way
These are indicated on title and the Land Title Office; often for use of utilities or city or municipality in order to make repairs to pipes, etc. No permanent structure may be build on a right-of-way.
Statements of Adjustments
Closing statements in a real estate transaction which set out the sources of funds which make up the purchase price, adjustments to and from the purchase price, the final amount required from the purchase and the amount due to the seller. Lawyers will prepare a statement for the seller and the buyer.
State of Title Certificate
A copy of the title which lists charges against a property, e.g. liens, mortgages, rights-of-way, etc.
Strata Common Property or Common Elements
The portions of a strata development owned in common (shared) by the unit owners, e.g. pool exercise room, lobby, etc. A strata fee is charged to every unit owner for the use of the common property.
“Subject-to” Clause
A statement of a condition to be fulfilled before the contract will become firm and binding; must include a specific deadline for removal.
Title
The legal evidence of ownership in a property.
Title Search
A detailed examination of the ownership documents to ensure there are no liens or other encumbrances on the property and no questions regarding the seller’s ownership claim.
Utility Taxes
Examples may include water, sewer and garbage (may include recycling levies).
Working with a REALTOR® Brochure
A brochure given to prospective buyers and sellers that explains the different kinds of agency relationship that may be entered into with a REALTOR®.
Zoning Regulations
Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.
by District of North Saanich Newsletter on Mon, May, 2, 2011 06:29 PM
Secondary Suite Pilot Update for Residents of the Southeast Quadrant:
Those residents of the Southeast Quadrant living in the area of the Secondary Suites pilot project need to be aware that the pilot is presently in place for one year which is due to expire October 2011. At that time it will be reviewed by Council to determine whether it should continue.
Council has decided to not pursue any enforcement action on existing illegal suites during the pilot project period in order to allow existing suites to secure permits and secure legal status. Please note that once a suite secures its legal status, it will maintain that status as long as it continues being used as a suite, with permits, even if the zoning bylaw is changed to remove secondary suites as a legal use. If an existing illegal suite does not receive a permit under this pilot project, it will be subject to bylaw enforcement after October 2011.
Suites are subject to requirements of the Zoning Bylaw and other applicable Bylaws and Regulations.
A Secondary Suite is defined as a self-contained dwelling unit, with no more than two bedrooms, located entirely within but clearly accessory and subordinate to a single family dwelling.
In order for a secondary suite to be authorized by the District, a number of bylaw and building code requirements must be met and these are detailed in the Guide to Secondary Suites on the District’s Website. A suite that is built to code and bylaw requirements can provide safe and affordable housing in our community. Secondary suites can also provide an extra source of income for families or enable elderly parents to live independently in the same home. Council recognizes and supports suites for these reasons.
For further information please contact Mark Brodrick, Director of Planning and Community Services at 250 - 655-5470, who will be pleased to assist.
by Elizabeth Weintraub-About.com on Mon, Apr, 18, 2011 02:41 PM
Simply put, buyers' markets exist when there are a lot of homes on the market and very few buyers. If inventory--the number of homes on the market in your neighborhood--has been rising, it's likely that the days on market have been increasing. Couple that with declining sales figures over previous months, and home buyers are in an enviable position to negotiate. Here is how you can write a buyer's offer to your advantage.
1. Request E-Mail Listings & Updates
Almost 80% of home buyers today start a home search online. However, many buyers are unaware that the data they are viewing could be dated. Many Web sites reboot every 24 hours. On other sites, agents sometimes leave expired and sold listings as active, hoping for ad calls. To avoid wasting your time, ask your agent to register your e-mail address so you can receive daily MLS changes of reduced prices and new listings. This is one way to gain access to the same data agents receive.
2. Tour Price Reductions
If you're like most buyers, you will want to offer less than asking price. It's just human nature. But if you plan to low ball, you'll probably be unsuccessful at getting that type of offer accepted if the home was just listed. Instead, tour homes that have had recent price reductions or have been on the market for at least 30 days or more. These sellers are more likely to be receptive to a low-ball offer.
3. Obtain Comparable Sales
When you find a home you want to buy, ask your real estate agent to print out a list of similar homes in the same neighborhood over the last six months sorted by:
Active Listings
Pending Sales
Sold
The list should contain the following specifics:
Property Address
Age
Square Footage
Lot size
Bedrooms & Baths
Sales Price
Compare this data with online home value sites such as Zillow and RealEstateABC, and you'll see first-hand why the data your agent gives you will be more accurate.
4. Request Contingencies
In a buyers' market, you're in control. Write your offer contingent upon the property appraising at the agreed upon sales price and on obtaining your loan. Check with your lawyer to find out if you can ask for a loan contingency that will protect you all the way to closing. Ask for a reasonable period to conduct inspections and to approve title, geological and pest reports. Ordinarily, during contingency periods, buyers can back out without risking a good faith deposit.
5. Ask for an Allowance or Credit
If you find the perfect home but you don't like the color or condition of the carpet, for example, ask the seller to give you a carpeting allowance in your offer. Check with your lender before you write the offer to find out how to word a credit clause that is acceptable to the lender. You can ask for more than it will cost to repair or replace an item to cover your "hassle" factor. Many lenders let borrowers receive up to 6% of the sales price as a cash credit against closing costs.
6. Reduce Your Closing Costs
Depending on your local area, there may be fees associated with closing that are customarily paid by the buyer such as title insurance, property taxes, recording fees or escrow. In a buyers' market, you can ask the seller to pay those closing costs. Typically, those costs can add up to one or two percent of the sales price and are often paid out-of-pocket by buyers. Ask your agent if these fees are negotiable. Then ask the seller to pay them.
7. Renegotiate After Home Inspections
All buyers should obtain a home inspection. Most contracts give buyers the right to cancel a contract if the home inspection reveals repairs or defects that are unacceptable to a buyer. However, if the repairs are minor, you might want to renegotiate the sales price or ask for a credit against your closing costs. Caution: don't ask for a price reduction if the repairs were evident when you first saw the home or the seller might not be willing to negotiate with you.
8. Request Extras
Sellers realize that in buyers' markets, often they have to give a little something extra to the buyers to entice a sale. Don't be afraid to ask for a home warranty protection plan that covers you in the event an appliance breaks down or the plumbing or heating malfunctions. Normally these plans protect you for one full year from the date of closing.
9. Ask for an Item You Don't Want
Did you like the sellers' dining room table? China cabinet? Fish tank? Ask for it in your offer and use it as a negotiating tool. Often this draws the sellers' thoughts away from price and directs those thoughts toward the personal property. If the listing stated the washer and dryer are not included in the sales price, ask for them. If the sellers balk, tell your agent to say, "OK, if we leave the washer & dryer, are you then ready to sign the offer?"
10. Shorten Acceptance Period
There often is no reason to give a seller more than 24 hours to make a decision about your offer. If your agent is presenting the offer in person, she may ask for a decision upon presentation. But don't give them days to talk to Uncle Harry, their neighbor down the street or the coworker who knows everything about real estate. There are a lot more homes on the market and you deserve a fast answer.
Email
