Can Home Sellers Back Out Of A Deal To Sell Their Home?

351 West 21st Street, North Vancouver  Modern Living in Central Lonsdale!Purchasing and selling a home is a very emotional process. Normally one hears of buyers backing out of real estate contracts, but there are situations when the seller can and will back out of a sale.

Why would a seller back out?

A Lack of a suitable home to move into.

This arises when the sale is contingent upon the seller finding a suitable alternative property to upsize or downsize.

B A higher bid may come in at the last minute.

This can happen and can be costly to the seller if he /she is willing to pursue further.

C The seller does not want to make repairs.

Most homebuyers get a home inspection done before they sign on the dotted line. The report may contain flaws that the seller is unwilling to repair.

D An unexpected life event.

There could be a sudden death in the family or the sudden loss of employment that could make it hard for the seller to move.

E The buyer does not adhere to terms of the contract.

If the buyer fails to live up to his/her part of the deal, for instance secure financing within a certain time frame, the seller does not have to wait.

Consequences to the seller.

When a seller backs out of a contract, which is a legally binding contract, he or she is exposed to certain legal ramifications as the jilted buyer can sue for damages and breach of contract.

The major risks facing a seller backing out of a deal are financial risks, which may include:

  • Any fees incurred by the buyer such as inspection costs, survey fees etc.
  • Temporary housing costs
  • Storage costs
  • Legal costs

When a seller decides to sell the home, it is important to ensure that the sale contract contains stipulations that provide a contractual out for the seller, if for some reason the decision to sell has been rescinded.

It may seem a little unfair when the homeowner legally still owns the home but has to pay a fine in order not to sell it. It is always a good idea to consider these things before a contract is signed. Once a signature appears on the contract, the terms have been agreed upon, and there may be very little that can be done to get out of the deal.

If you are looking for your first or next home, but don’t know where to start, then visit our website and browse through our database of over 70 homes.

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REBGV Market Update For August 2018 – Housing Market Calmer.

1050 King Georges Way, West Vancouver  Paramax Masterpiece!All housing types are continuing to see reduced demand as was made clear in the August 2018 market report released by the Real Estate Board of Greater Vancouver (REBGV). August 2018 sales were 25% below the 10 year August sales average.

“Home buyers have been less active in recent months and we’re beginning to see prices edge down for all housing types as a result,” Phil Moore, REBGV president said. “Buyers today have more listings to choose from and face less competition than we’ve seen in our market in recent years.”

Home Sales

There were only 1.929 residential property sales registered in August 2018 for the region. The same period last year registered 3,043 sales and July 2018 registered 2,070 sales.

- The number of detached properties sold was 567, 334 units less than what was sold in August 2017.

- The number of apartments sold was 1,025, 588 units less than what was sold in August 2017.

- The number of attached properties sold was 337, 192 units less than what was sold in August 2017.

Home Listings

In August, there were 3,881 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver.

This was an 8.6% decrease compared to the 4,245 homes listed in August 2017, and an 18.6% decrease compared to July 2018 when 4,770 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,824, a 34.3 per cent increase compared to August 2017 (8,807) and a 2.6 per cent decrease compared to July 2018 (12,137).

Sales-To-Active-Listings Ratio

This ratio gives a better understanding of the relationship between supply and demand in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for sustained periods.

For all property types, the ratio in August was 16.3%. When broken down by property types, the ratio was:

-       9.2% for detached homes  - still firmly in buyer market territory.

-       19.4 % for townhomes  – remaining in seller market territory, but gradually moving towards buyer market territory.

-       26.6% for condominiums – in seller market territory, but also trending towards buyer market territory.

Home Prices

In August, the MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,083,400. This was 4.1% higher than August 2017 and a 1.9% decrease since May 2018.

“With fewer buyers active in the market, benchmark prices across all three housing categories have declined for two consecutive months across the region,” Moore said.

Click here for a full report.

The real estate landscape in Vancouver is changing. If you are buying or selling a home, you need to get in touch with an experienced real estate company such as ours to navigate this transitional market. Contact us by email or call us on 604 913 1000.

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If You Are Planning To Build A New Home, Here Are Some Important Tips You Cannot Ignore

It may seem a daunting task, but building a new home can be a rewarding experience.  You can truly make it your own: you get to choose colors, cabinets, flooring and fixtures without having to deal with the design choices or shortcuts made by previous owners.

But building a new home can be very stressful and time consuming. So here are a few tips that will guide you properly on the new home build path:

1. Know the builder properly.

This is critical and may be one of the most important decisions you make. Ensure the builder is adequately licensed and insured, check into past work by talking to the builder’s clients, and make sure you are comfortable working with the builder because you will be working hand in hand with the person.

2. Read your agreement properly

It is important for you to understand what the builder’s costs will cover and what will not be covered. Carefully check the plans, warranty and insurance information. And don’t forget to pay attention to the payment schedule.

3. Plan properly

Make sure you meticulously plan the details of the house. Nowadays there are a number of online sites that allow you to create realistic designs and floor plans.  Proper planning at the beginning will bring less stress later on.

4. Create a realistic budget

No matter how much you calculate the expected cost of your home, it will always end up costing more. Price increases in the cost of raw materials, items in your builder’s estimates that were omitted, changing your mind on certain fittings or materials will all result in throwing your budget off.

5. Prepare for delays

Be tolerant. Delays in any new construction are inevitable. Have a back up plan for the delays and don’t move our of your current home until you are absolutely certain that your new home will be ready by a particular date.

6. Inspect the new build regularly

Ensure that your builder schedules formal walk throughs the site at regular intervals.  These will give you a chance to inspect the work properly. Make sure you go over the construction carefully and make the builder aware of defects, imperfections and issues you are not happy about.  A follow up is necessary.

Do you have any property related issues? Please contact us. We can advise you on a new home build, a property purchase, a valuation or even a renovation. Our experienced Real Estate professionals are keen to impart their knowledge and expertise.

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Good News For The Self Employed – Buying A Home Will Be Much Easier

211 - 1355 Bellevue Avenue, West Vancouver  Grosvenor AmblesideSelf-Employed individuals have had a harder time qualifying for a mortgage as their incomes may vary or be less predictable. This will soon change as from October 1 2018, Canada Mortgage and Housing Corporation (CMHC) will make changes that will make it easier for the self employed to secure a mortgage.

The self employed make up 15% of the population and they consist of freelancers, commission based workers, entrepreneurs, farmers, Canadian residents running a registered business under their own names, and shareholders of joint ventures or corporations.

According to Romy Bowers, the chief commercial officer at the CMHC, the changes will give lenders more guidance and flexibility to help self-employed borrowers. He went on to say “..these policy changes respond to that reality by making it easier for self employed borrowers to obtain CMHC mortgage loan insurance and benefit from competitive interest rates.”

The CMHC will also accept loan applications from borrowers who have been self employed for less than a year, or have switched jobs within the past two years.

These borrowers would need to show that they have :

  • Acquired an established business
  • Have sufficient cash reserves
  • Have predictable earnings
  • Have previous education and training

In the past, self employed workers have typically obtained a loan through a stated income application, in which proof of income has been validated with a signed declaration.

Now, in addition to the above, additional documentation will be required such as:

  • Financial statements for the business
  • Income tax returns and notices of assessments for the previous 2-3 years
  • An NOA from the CRA to confirm the lack of tax liability
  • Proof of HST and/or GST payment
  • A statement showing projected revenue for the coming years
  • A copy of the business registration or articles of incorporation showing the business license
  • Proof that the applicant is a primary owner of the business
  • Proof of funds for a down payment of at least 15%, as well as other closing costs

The changes will take effect from October 1, 2018.

Our team of real estate professionals has years of experience and first-hand knowledge about the market. We thrive on working with homeowners to help them achieve their dreams, whatever the season or style of home. For more information, please call us on 604 913 1000 or 604 695 1000, or email us.

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Should I Sell Or Should I Renovate? – Important Points To Consider

You have been in your present home for a number of years, the family is growing and you have been thinking about moving into a home that fits your needs.  You want a new home but you love your neighbours, your yard, the schools are close by, the bus stops 15 feet from your entrance,……these are dilemmas that force you as a homeowner to make an important choice – should I move or should I renovate?

If you decide to renovate, keep the following in mind:

-       Renovations cause disruption. You will have strangers walking in and out of your home at all times. There will be dust, dirt and noise.

-       You will face a lot of inconveniences, for example,  If you are redoing your kitchen, you may not be able to cook at home for weeks.

-       You need to renovate within the municipal building codes and obtain the necessary permits. These may require existing structures to be replaced to meet current building standards, and may disrupt your plan and your budget.

-       Plan that the renovation is in proportion to your home’s value. There is no point spending $100,000 on a kitchen in a home worth $500,000.

-       If you are increasing the size of your home, it should compare with others in the neighbourhood.

-       If your home has adequate equity,  you could probably tap into it at a favourable interest rate using a home equity line of credit.

-       Rarely are renovations completed on time and on budget. You must have the patience and the pocket book to endure delays and cost overruns.

On the other hand if you decide to move:

-       Getting a new home requires negotiating a new mortgage which could possibly be at a higher rate than you currently have. Your property taxes may rise as well.

-       If you have a strong connection with your local neighbourhood, and emotional ties to your home, it may be better to renovate than move.

-       Moving is stressful, and you may need to make a few improvements to your new home before you move in, which may end up costing you more than you budgeted for.

-       Ask yourself whether you will be in the new place long enough to recoup the costs of taking out a new mortgage and moving costs.

-       Don’t move just for the sake of moving. Work out the pros and cons with your family.

We currently have around 100 homes for sale on our website valued at over $500 million. If you are planning on buying or selling your home, contact us and leverage the benefit of our outstanding marketing and years of experience in this industry.

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The virtual M&A arrangements with technological innovations

It is a general knowledge that the M&A deal-making is prevalent in diverse countries. M&A settlements are connected both with large and small firms. With its aid, people solve diverse issues. And so, it is so widely used. In the present day, people appreciate their time and have a desire to find new possibilities for doing things very quickly. And the M& A process is not an exception. With this in mind, we made up our minds to tell you in what way to make your Mergers&Acquisitions intralinks data room more resultative.

  • Of course, communication is highly important for work. It goes without saying that the most crucial problems cannot be resolved with the aid of the Internet. But still, the routine deals can be completed with the help of the multiplicity of applications and e-mail.
  • Digital phones are always with us today. Thus, it is preferable to get advantage of them for your M&A transactions. You will keep in touch with your customers from other countries, audit your materials, work with your Online Deal Rooms and so on.
  • It goes without saying that first of all, it should be emphasized that the WWW can prove useful to any branches. So, it will also be of use to the M&A deals. What is one of the most crucial details for the M&A deal-boards? It is the materials. All the corporations occupied with the M&A deal-boards have a deal with diverse deeds. It is obvious that they need to exchange these archives and to store these deeds. Presently, it is not obligatory to keep papers since you are free to use computers for it. More than that, you are in a position to work with a lot of file formats. With the aid of diverse, you can send your paper trail to your depositors and so forth.
  • Basically, people prefer the universal instruments which can accomplish several tasks at the same time. One of such tools is the Virtual Rooms . What are Due Diligence rooms? First and foremost, these are the Internet site which will be important for storing the records. On the other hand, we speak not just about storing the info, we talk about keeping the classified archives. All the proficient Online Storage Areas move heaven and earth and develop their security operations to protect your information. More than that, they offer you even more functionalities for numerous fields. It is self-evident that you have the possibility to share your paper trail with your investors with the help of the Questions&Answers module. Upon condition that you worry about the misunderstandings your depositors from numerous countries can face, it is highly recommended to select the VDR services which can offer you the several languages recognition and the electronic interpreter. Besides, in cases of happening on some issues, you and your partners are able to use the around-the-clock customer service. The important detail is that you are in a position to choose any Electronic Repositories you like. There are prevalent and not popular, most valuable and cheap ones. What matters is which positive effects you want to receive from the Digital Data Rooms.

We can say that the virtual M&A is possible. Such things as computers, smartphones, Electronic Data Rooms, and finally the Web can make your M&A dealing more productive. In view of this, it is desired not to drag it out and fall into picking the sublime Virtual Platforms which will offer you all these odds.

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Corporate Secrecy On Landownership In BC May Soon Be Gone

 Barnham Road, West Vancouver  Brand New in British PropertiesIn 2001 when Gordon Campbell became premier of this province, he amended the Business Corporations Act, by declaring a law (Section 49) that prevented the media from visiting a corporate registered records office to find out who owns the company.

This was a thorny issue with Transparency International Canada, which has been saying all along, that owners of shell companies have been using this shield to buy real estate in the province anonymously.

In 2016, the executive director Alesia Nahirny said in a news release, “Individuals can use shell companies, trusts and nominees to hide their beneficial interest in Canadian real estate. This makes property attractive for money laundering, deprives the government of tax revenue, and hinders data collection, making it difficult to analyze the impacts these ownership structures have on the real estate market.”

The current provincial government is looking at changing this soon, and there is consultation going on about bringing in legislation to establish a new, publicly accessible registry, on who owns real estate in BC.

A tweet by NDP MLA Bowinn Ma declared  “This fall we’ll be introducing legislation to give transparency over the individuals behind property-owning shell companies and trusts.”

Finance minister Carol James has also announced that her ministry will require more information when a real estate transaction is made through a trust or corporation. Starting September 17, all property transfer tax returns for trusts and corporations will require the beneficial owner’s name, date of birth, citizenship information, contact details and tax information.

If you have any questions on this topic or any other real estate related topics, please contact us.

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REBGV Market Update For June 2018 – Supply Of Homes For Sale Reached A 3 Year High

The highlight of the June 2018 market report released by the Real Estate Board of Greater Vancouver (REBGV), showed that home sales dipped below long term historic averages, and supply reached a 3 year high.

“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” Phil Moore, REBGV president said. “Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”

Home Sales

In June 2018, realtors registered 2,425 residential property sales. This represented a 38% decline from the same period last year, and 29% below the 10 year June average.

The number of detached properties sold was 766, 42% less than June 2017.

The number of apartments sold was 1,240, 34.9% less than June 2017.

The number of attached properties sold was 419, 37.3% less than June 2017.

Home Listings

In June, there were 5,279 new listings of detached, attached and apartment properties added to the Multiple Listing Service (MLS) in Metro Vancouver. This represented a 7.7% decrease compared to the 5,721 homes listed in June 2017, and a 17.2% decrease compared to May 2018 when 6,375 homes were listed.

The total number of homes listed for sale in June increased to 11,947, a 40.3% increase when compared to the same month last year, and a 5.8% increase when compared to May 2018. This is the highest total in the region since June 2015.

Sales-To-Active-Listings Ratio

This ratio is a good indication of the supply and demand forces in the market. Downward pressure on home prices can occur when the ratio dips below 12% for a sustained period, and home prices can experience upward pressure when the ratio is above 20% for a number of months.

For all property types, the ratio in June was 20%, which suggests a balanced market. When broken down by property types, the ratio was:

-       11.7% for detached homes

-       24.9 % for townhomes

-       33.4% for condominiums

Detached homes are entering a buyer’s market zone.

Home Prices

The MLS Home Price index composite benchmark price for all residential properties in Metro Vancouver was $1,093,600 in June. This was 9.5% higher than June 2017 and virtually unchanged when compared to the previous month.

Rising interest rates, high prices and restrictive mortgage requirements, are factors that are dampening homebuyer demand.

Click here for a full report.

If you are planning on entering the real estate market with the present conditions, it is prudent to talk to an experienced real estate company, such as ours, to guide you effectively. Looking to buy or sell a home? Contact us by email or call us on 604 695 1000 or 604 913 1000.

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How US President Trump’s Steel Tariffs Can Have Dire Consequences For The Canadian Construction Industry.

The temporary reprieve we wrote about in March was just that – a temporary reprieve. (read our blog “The Steel Tariffs: We Have A Temporary Reprieve, But Will Trump’s Proposed Tariffs Affect Canadian Real Estate?” ) Last month the unthinkable did happen when US President Donald Trump slapped tariffs on some $20 billion worth of Canadian steel and aluminum.

In March when the Trump Administration first touted the tariffs, the National Association of Home Builders  (NAHB) slammed the plan, which proposed a 25% tariff on steel and 10% tariff on aluminum. “Tariffs hurt consumers and harm housing affordability” Randy Noel, the chairman of the NAHB said.

On July 1, in response to the US tariffs on Canadian steel, Canada imposed a 25% tariff on US Steel imports. The Trudeau government is also said to be preparing quotas and tariffs for other countries to prevent a flood of steel rushing in to undercut prices.

The current tariffs in place will jack up prices for everything from rebar used in high rise condos, to structural steel for industrial builds. This does not bode well for a market that is already facing shortages due to higher demand and soaring prices – the Canadian Coalition for Construction Steel which represents 17 steel making companies laments that the price of steel has already soared by about 38% this year due to a booming property market and lack of supply.

The retaliatory tariffs imposed by the Canadian government have been widely criticised by the steel industry. “If the government’s not careful, they will protect one at the expense of ten times that elsewhere,” said Walter Koppelaar, CEO and Chairman of a large Ontario based steel construction company, Walters Inc. “If they apply duties to broad-spectrum steel or metal of any shape, size or description, our industry would be decimated – it could be thousands of layoffs and it’s going to shut down projects right across the country” he added.

Domestic mills supply roughly 10% of structural steel and about 50% of rebar. Their margins on imported steel are very slim, and the 25% tariff would lead to a lot of hardship and possible bankruptcies.

Locally, the tariffs on steel would hit BC very hard as historically the province has relied on imports for more than 60% of its annual consumption. Expect the cost of building to go up and the increase to be passed on to the consumer.

Buying a home is one of the largest financial transactions you will ever make in your life. So why wouldn’t you trust a professional to do it for you? After all , the seller pays the commission. When you decide to do so, contact us and one of our experienced real estate professionals will help you find your dream home.

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Network marketing business Opportunities As A Virtual Helper

The term electronic assistant as well as job subject therein, is actually a new name that includes developed into a popular business in today? s web-based society. Mainly because the name signifies, a virtual assistant handles a company? t administrative work without taking on any work place at all their work environment. Basically, a virtual assistant is somebody who works of their own home-office, providing professional services to companies, caring for their magazine job and submitter all of them via the world-wide-web. The? online wave? features converted the part of a va into a large industry, with many companies favoring the responsibilities of a va over conventional personal colleagues. What makes the purpose of your electronic assistant better in the corporate environment? There are numerous factors, plus the benefits are definitely two on the sides. The benefits company receives involve: - Saves the problem of hiring permanent personnel and allocating office space for the kids - Excludes the payment of edge rewards highly regarded as healthcare, insurance, income taxes and teaching - Save on equipment purchases such since computer systems, fax, cell phones - Ability to use them may be temporary, pertaining to several tasks, when ever and as necessary Is a person required to contain valuable abilities to enter the virtual helper business? In which skilled skills in writing, data base managing, office administration and net surfing around will definitely end up being fruitful, you can without difficulty chance in to the virtual assistant business with basic abilities that may be increased through experience. As very long as you are own encouraged, concentrate on driven and have very good organizational capabilities, all of which doesn? t need special teaching, you can succeed very well to be a virtual assistant. Could it be a great discipline just for a work from home mom? Most virtual colleagues work from their homes, on their own schedule, on a project delivery basis. Meaning the possibilities for at-home moms in the marketplace is big. In the event you do not have the time meant for a day work that requires standard job hours, this can be a greatest option in your case. As long as the deliveries are timely, the customer doesn? p care whether you work on night, all things considered your children have become to sleep, or if you do the job on the other hand amidst your home chores. All your mate needs is a perfect job that complies with their criteria and, most of all, prompt appointment of deadlines. How to start a virtual associate organization of your own personal There are numerous points to consider ahead of you go out advertising and marketing your offerings. First of all determine the kind of function you intend to give. This should be opted centered on your skills, skill sets and ability. Investigate the many services required by businesses in the area, featuring your potential target marketplace and motto an advertising campaign depending on these requirements. Funds the first purchases, primarily based on your investigations, and place up an enterprise plan about attaining your requirements. Make rough estimations on expenditure and potential expansions. Once all these kinds of specifications are entire, you can start looking for clients. This kind of brings you for the virtually all crucial area of the organization, advertising yourself. Ideas for marketing the virtual assistant business? This definitely will generally count on your finances and customers. If you plan to begin big, you are able to spend extra on marketing, such for the reason that classifieds advertisements, yellow pages, banners and flyers. You can also create a website for the organization and pull in web based consumers. You can sign up for various media groups about virtual assistant companies and advertise yourself by means of their particular websites also. Various other, much less costly advertising and marketing methods contain word of mouth, testimonials and community notices. First few clients are going to be tough to accomplish, although once you get started, and acquire a name for your offerings, the client move will definitely increase. In addition to zero time, you will find a profitable virtual assistants business, working smoothly, from the comforts of your personal home. To read more read below

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