March 23, 2008
Young homebuyers savvy
Today’s young adults aren’t about to let lingering student loans, uncertain career tracks and stratospheric housing prices stop them from finding their first home sweet home. This investment-savvy generation of 20- and 30-somethings knows a hot market when they see one, and many have developed creative strategies to reach home ownership at a younger age, often without the benefit of a spouse’s salary.
Some buy their first home jointly with a friend or sibling. Others become small-scale landlords, renting out basements or extra bedrooms to tenants whose rents offset the mortgage.
It’s something that a lot of people have to turn to because housing prices are just sky-high, particularly in a lot of the larger cities,” says Brenda Bouw, author of Home Girl: The Single Woman’s Guide to Buying Real Estate in Canada. “I think a lot of people have been influenced by their parents, whose best investment has been their house. They’re feeling pressure to get into the market any way they can.”
About one-quarter of Canadians aged 18 to 34 are homeowners, according to a recent survey by the Canadian Association of Accredited Mortgage Professionals.
See story in the Windsor Star »
March 22, 2008
Is Title Insurance Right For You?
Title insurance is growing in popularity in Canada. But what is it exactly? Should you get it? Do you need it? Whether title insurance is right for you is something you should discuss with your lawyer, as it depends on the circumstances of your transaction. This article will provide you with some background information about title insurance to help you make an informed decision.
Title to Property
Title insurance is unlike any other kind of insurance. It is not house insurance which only protects the contents of your home or its structure and for which you have to pay a monthly premium. Rather it protects your ownership to the property and protects you against many factors. Unlike house insurance, you only pay a one-time premium with no deductible. Title insurance usually covers all legal expenses related to restoring title, meaning that you do not have to take time off work and deal with the added stress needed to defend yourself.
Title is the legal term for ownership of property. Buyers want a “good and marketable” title to a property. A good title means that the property is appropriate for the buyer’s purposes and a marketable title means the buyer can convey this title to someone else. Public records are usually “searched” before the closing to determine the previous ownership of the property, as well as prior dealings related to it. The search will reveal very valuable information such as existing mortgages, liens for outstanding taxes, and utility charges, that may be registered against the property. The buyer usually expects to buy a property that is free of such claims. This means that such problems must be cleared up before the closing. For example, the seller’s mortgage will be discharged and outstanding monetary expenses will be paid for at closing.
However, problems regarding title may not be discovered before closing, or are not remedied before closing. Such defects can make the property less marketable when the buyer tries to sell it and, depending on the nature of the problem, they can also cost money. For example, the survey might have failed to show that a dock and boathouse built on a river adjoining a vacation property was built without legal permission. The buyer of the property could be out-of-pocket if he is later forced to remove the dock and boathouse. Or, the property might have been conveyed to a previous owner fraudulently, in which case there is the risk that the real owner may come forward at some point and demand their rights with respect to the property.
What does the Title Insurance protect?
There are a series of matters which are covered by a title insurance policy that deal with events that occur after the date of the purchase. These include fraud and forgery after the policy date, matters that are obviously not protected by the lawyer’s usual title opinion given effective as of closing. There may also be some cost savings that can be achieved from title insurance.
Title insurance policies can be issued in favour of a purchaser (on new/resale homes, condos and vacation properties), a lender, or both the purchaser and lender. Lenders will sometimes require title insurance as a condition of making the loan. Title insurance is made to protect purchasers and/or lenders against loss or damage sustained if a claim that is covered under the terms of the policy is made.
In addition, there are many types of risks that are usually covered under a title insurance policy such as survey irregularities, forced removal of existing structures, unregistered easements and rights of-way, lack of pedestrian or vehicular access to the property and many more. For a risk to be covered, it has to have existed as of the date of the policy. However, as with any type of insurance policy, there are certain types of risks that might not be covered, such as, native land claims and environmental hazards. Before obtaining a Title Insurance, discuss with your lawyer or real estate agent what risks are covered and what are excluded.
How Long is the Insurance Coverage?
In the case of title insurance covering the purchaser, title insurance remains in effect as long as the insured purchaser has title to the land. Some policies also protect those who received title as a result of the purchaser’s death like certain family members to whom the property may have been transferred for a nominal consideration.
In the case of title insurance covering a lender, the policy remains in effect as long as the mortgage remains on title. A lender covered under a title insurance policy is insured under the condition that the lender suffers actual loss or damage with respect to a risk covered under the policy. This means that lenders are usually covered up to the principal amount of the mortgage.
If you feel that Title Insurance is right for you and would like more information, contact a local real estate agent or lawyer. They will be more than happy to answer any of your questions and guide you through making a decision.
March 17, 2008
Know when not to buy
The Top Ten signs that you should not buy this Toronto home:
10 - Your agent has to cut through police tape to open the door.
9 - The listing agent takes time out from a viewing to return fire.
8 – The bats in the attic have solved the bug problem.
7 – The kitchen door frame sports line labelled “high water mark”.
6 – There are chalk outlines on the floors.
5 – Your next-door neighbour is Richard Simmons .
4 – The back yard gate opens onto runway 12.
3 – The hot water tank has been painted exactly like a Bud Light can.
2 – There are 17 deadbolts on the front door.
and the number one indication that you should not buy this home
1 – The Asking Price is: “Whatever”
March 12, 2008
Take the Tedst
Meet Ted Truitt
Ted Truitt is “real estate’s greatest sales legend,” “the king of close,” “the archduke of acreage,” and “the dean of the deal.” Now here’s the real estate coach your agent needs.
Meet Ted and take his “tedst” »
March 11, 2008
Calling their fluff:
How to spot the home stagers’ tricks at work
When you go house hunting in downtown Toronto, you’ll struck by a disturbing similarity in what you see. The furniture at many resale homes looks suspiciously fresh and new, the art hanging on the walls seems all-too-familiar and the rooms are just soooo squeaky clean. After looking at a few of houses, you’ll start to recognize the signs that a home stager has been at work. Let’s face it, how many of us have furniture that matches perfectly? You can tell as soon as you walk into a staged home that this is something that belongs in an interior design shop, not your average family’s home.
Remember: no matter how beautifully decorated a home may be, its true value hinges on practical considerations — how much space it offers, the neighborhood, how many bedrooms and bathrooms it has.
Here’s how to make sure you don’t get taken in by a stager’s tricks:
Beware of old panes
The best tipoff that a home stager has been at work is a beautifully decorated home with old windows. Why? Because a complete set of new windows is expensive — think $10,000 or so — and most stagers won’t bother to put them in. But if the windows are old, you have to wonder what other secrets the house may be hiding.
Measure, measure
Stagers are notorious for making small rooms look larger by renting undersized couches, tables and chairs. “I staged a house in Rosedale that had a great third-floor master bedroom,” says Toronto home stager Debra Gould, “but it was awkward because the stairwell and entrance to the room were really small.” She ended up renting dressers from a kids’ furniture store because she couldn’t get adult-sized dressers up the stairs. Imagine the shock the new owners must have felt when they tried to move in their own furniture. To make sure you don’t have a nasty surprise, pack a tape measure and write down the dimensions of all key rooms.
Avoid showrooms
The showrooms in many new condo developments use pint-sized furniture, large mirrors and other space-expanding tricks to make the units appear larger than they are. “If you’re looking at something in a new complex,” says Feisal Panjwani, a senior mortgage consultant with Invis Inc. of Vancouver, “ask to look at another suite that hasn’t been done up. You’ll get a feel for what the home will look like with regular furniture and appliances.”
View it live
Most real estate agents insist that viewing the house when it’s empty gives you time to examine it at leisure. But a better option is to view it around suppertime when the owners are present. When someone’s in the place, you get a better sense of the house. Is there enough counter space for the dinner dishes? Does the kitchen feel spacious with two or three people in it? You can imagine what it would be like to live there yourself.
Come out of the closet
Stagers often empty out closets to make them look larger than they really are and give the illusion of plentiful storage space. Be aware of the trick and make sure you know exactly how much storage space you’re getting. Ever wonder where all the jackets, shoes and coats are in the homes ypu see because they certainly aren’t in the closets. Ask to see other storage areas.
Tune out the noise
Any good stager tries to create a relaxed, elegant mood. Jazz on the stereo, a roaring fire in the hearth, fresh flowers and homey scents are just some of the tricks you’ll encounter. The only defense? Close your eyes and imagine the same room with kids yelling and yesterday’s newspaper spread out on the floor. Reality may not be as pretty as the staged version, but it’s a much better guide to value.