Tuesday, December 31, 2013

Buyer Needs Extension to close

Mark Weisleder reminds us that getting an extension date on your closing date has costs and that needs to be addressed;    Who Pays? 
Buyers often need to request an extension to their closing date. The main reasons are as follows:·         The buyers have not yet sold their current home; or
·         The buyers' financing has fallen through or the buyers have not complied with all of the lender's requirements;
The main lesson for everyone is that no buyer is automatically entitled to an extension. If a buyer can't close, the seller can take the position that the buyer is in default, sue for the deposit and any loss that they may suffer in the re-sale of the property.Real estate agents are divided as to whether you should buy first and then sell your existing home or sell first and then buy. No solution is risk-free. Buyers also need to remember that just because you are approved for a loan, you still have to fulfill all of the lender's requirements, such as proof of income or debt repayment, before they will give you the money.When you ask for an extension, here are the terms that you can expect to face from a seller. Remember, your bargaining position is not good.·         The seller will likely request an additional deposit, equal to the initial deposit, to be held by the seller lawyer in trust;
·         The buyer will have to pay the seller's interest costs on any mortgage that cannot be discharged; so for example, if the seller has a $300,000 mortgage and interest accrues at 4% interest or $33 per day, then the buyer has to pay this cost for the full extension period;
·         The buyer will pay the seller's legal fees to do the extension, which can range from $250 - $500, plus HST; and
·         The buyer may have to pay additional costs, depending on when the extension was requested; - for example, if the extension is requested on the closing day, and the seller has already packed up the truck, the seller may request payment of all of their additional moving costs as a result of the request.
One of the main considerations for the seller in agreeing to give an extension is whether they need the money from the sale for their own home purchase closing the same day. This is what occurred to a buyer client of mine who required an extension at the end of October, 2013. Their seller also needed to close a purchase the same day. This seller was able to negotiate an extension of their own sale, but expected my client to pay all of their extension costs as well. Thus my clients had to pay the seller and the seller's seller a total of $2,500 to get a one week extension. This was still a good result for my client, as they could have forfeited their deposit and faced a lawsuit if the seller did not agree or was not able to arrange the extension. If you know that you are going to need an extension, do not wait until the last minute to make the request. Let your lawyer or real estate agent know as soon as possible and make the request, so that no unnecessary costs, such as moving arrangements, are entered into.There is also closing protection insurance available to home buyers and sellers in Ontario. One such company who I work with (full disclosure) is Canadian Home Shield at www.canadianhomeshield.com . They offer insurance coverage for $99 for home sellers and buyers so that if their sale is delayed or cancelled and it is not their fault, they can claim for costs of up to $25,000. I have had several clients take advantage of this policy to collect damages such as increased moving costs as a result of delayed closings.

This Insurance is available here as part of the bundle of services that are available for Purchases and Sales of Homes in the west Toronto GTA.

Call today!

Monday, December 16, 2013

Winning in a Multiple Offer Toronto

When making a multiple offer on a property we have a form available to Realtors, for the seller to sign, that they have actually seen your offer to purchase.  You will know for certain your offer has been presented.

This may not necessarily get you a sign back, or counter offer, but at least will know for sure that they have been presented with your offer.

I recommend making your offer in person, not by fax or email,  I expect you to be standing nearby, waiting anxiously and including a Letter of Capacity from your bank, that you have the funds available to close on this purchase.

This will make a big difference when compared to other people who are all conditional upon financing and have other obstacles to overcome, like the sale of a property. You can firmly give a date for moving in.

I would like to work with you to make it simple to get your next home.

Give me a call 647 218 2414

Tuesday, December 10, 2013

Dave's your best friend when...

David Pylyp is your best friend;
  • when you need pictures for that insurance claim
  • when you are unsure if its a Landlord or Tenant Problem.
  • when a condo corporation raises your Maintenance Fees.
  • when your tenant won't MOVE.
  • when your house won't SELL.
  • when you don't want to live together anymore.
  • when you want Value in your purchase.
You don't have to like me...  but do you need me.


Monday, December 9, 2013

New Fees for Landlords in Mississauga

Effective the beginning of January 2014 you will need a license to rent your basement apartment. The City of Mississauga has finally made a response to Bill 140 and the affordable Housing Act.  As of January 2, 2014, legal second units must have a City of Mississauga licence per City By-law 204-13 

The Mississauga City Council approved a plan to permit second units on July 3, 2013. The plan includes official plan policies, zoning regulations and licensing requirements. It will be in full force in January 2014. 

‘Second units’ are self-contained apartments within existing homes. They have their own kitchen facilities, a bathroom, a bedroom and sometimes have a door that separates the unit from the rest of the home. They are often called basement apartments, in-law suites or secondary suites. 

The Second Unit Implementation Strategy includes: 
Official Plan policies permitting second units in detached, and semi-detached homes as well as townhouses 
Zoning By-law regulations including parking and distance from the property lines for entrances and stairs 
A licensing program to ensure zoning, building and fire codes, as well as property standards, are met 
An Education Program that will include information materials and sessions to help the public understand what is required for a legal second unit in the City and 
Partnerships with professional and organizations interested in second units 

An existing second unit will only be legal if it complies with the official plan and zoning by-law, meets building and fire codes, and there is a license for the unit. 

The initial second unit license will cost $500 for owner-occupied properties and $1,000 for investment properties . The annual license renewal will cost 50% of these values. 

Any person who is charged with an offence under this By-law and found guilty is liable to a fine of not more than $25,000 or $50,000 (for corporations).

Back Grounder  City of Mississauga Feb 25, 2013.


Keeping it or Selling it?

Sunday, December 8, 2013

The Internet Makes it Easier - Not simple

I agree that the internet has made it easier for buyers to find homes they “want” online this is where my leniency ends. Online property search is simply an entry point into the discovery process and in no way guarantees a home search will take less time than working with a buyer who had no internet access at all. Some buy quickly, others take 4 - 6 months to look at dozens of Homes.

Do you trust the real estate advice on Yahoo Answers?! My  Answers are of glossed over, muted, by the advice of a woman with a tattoo for her favourite Dixie Chick.  

You deserve an experienced negotiator on your side. Prior to my 25 year career in real estate, I worked for over 6 years in the area of corporate finance and lending negotiations. In addition, I have bought, sold  and managed numerous properties so I understand the joys and challenges that are part of owning and selling real estate.

Don't get sucked in by online answers and quick fixes.  Solutions are obvious when they are revealed, often not because they are simple.

I can make it Ridiculously simple and provide Huge Savings
Call me

Sunday, December 1, 2013

Condo's Biggest Concern? Maintenance Fees

Ongoing Maintenance costs are the biggest concern for ALL condominium buyers.  The largest categories are Hydro Electric, Heat, Security Staff, Water, Garbage Disposal, Management and then the mandatory  Reserve Fund Contribution  mandated by engineering studies of how long things should last [Remaining Economic Life] Many of these issues are not within the control of the building or management as Rates and Schedules are set by outside parties.

The largest expense by far is Heat and Hydro. In a hi Rise structure we share Common Elements and a garage.  We can eliminate heat as an expense and build in a Condo Building Long Term efficiency tool.   

How? Using a Heat Pump and Ground Loop Geothermal Heating

The ground loops operate by utilizing the ground to provide heating or cooling energy to the building. In the winter, the pumps draw energy out of the ground to heat the building. In the summer, the process is reversed, with heat from the building being returned to the ground. http://www.4e2.ca/index.php?option=com_content&view=article&id=44&Itemid=12

Where? On the Go in Mimico
Let's combine  Neighbourhood and Community,  Mimico, then add access to Rapid Transit at the Mimico Go Train Station with protected entry.... a 12 minute train ride to Union Station via the Go!

Then you have ... On the Go Mimico 
Floor plans, price list and Limited Time *Special Offers that are available here;

  • 3 years No Maintenance Fees
  • Free Parking Spot Included
  • Island included in Kitchen design....   

*Contact me for details and Current Price List.

416 233 9000 or direct at 647 218 2414