Homes Closing Insurance

Mark Weisleder makes an excellent point in his recent email (August 26th, 2013) about the cascading effect of one purchaser's financing not coming through and the Seller's purchased another home and then could not close.

This follows on the heels of another conversation I had with Stan Gelman about a bank withdrawing the Financing because the house did not appraise for the agreed Selling Price.  We can debate the details, but a BANK issues a Commitment to Finance based on certain conditions being met; in this case appraisal was only one. Since the property did not appraise the Financing was withdrawn and a DOMINO effect ensued for NON closing transactions.

Due to the growing possibility of buyers being declined their financing at the last minute, sellers need some protection in the event their closing is delayed or cancelled and they are forced to carry 2 homes for an extended period of time.
One company that I have dealt with that provides this coverage is Canadian Home Shield. Their President, James Vlachos, who is an insurance broker, advises me that for as little as $99, sellers can purchase a $25,000 insurance policy that will cover all mortgage payments, real estate taxes, utilities and insurance premiums up to a total of $25,000 in the event that the deal does not close through no fault of the seller. I personally have had 2 seller clients recover over $9,000 in costs after a buyer failed to close their purchase agreement.
Buyers can also purchase breakdown insurance protection for their home systems and appliances. Since most real estate contracts provide that sellers only warrant their systems and appliances to the date of closing, this provides buyers with the opportunity to purchase additional insurance protection for a year after closing.
For further information, please see the attached website: 
http://www.canadianhomeshield.com/

http://www.thestar.com/business/personal_finance/2013/08/16/bridge_financing_can_ease_closing_day_stress.html 

The Agents in the transaction should not have waived the Condition for Financing UNTIL the appraisal had been completed.  However, within the logistics of the transaction, a Financing Waiver is prepared 5 days post the Acceptance and Acknowledgement [of a Deal being made]. This has no bearing on the closing date. I am not making excuses or blame, this is exactly how I would normally proceed with a transaction. 

With changing Home Values, spirited Bidding, Slipping Condo Values, Changing Credit qualifying Criteria  there is ever more need for vigilance on the part of Buyers and Sellers. I intend to meet that challenge with West Toronto Homes.

I will be including this Transaction Insurance in all future Listings as a part of my Bundle of Services. If you are buying all cash, none of this applies; it doesn't matter does it? 

Would you take this insurance?

Haggling 101

I know you know the value of an Experienced Real Estate Agent.
Thats why you're looking to work with a Professional.

But as you know, I've only got so much time in a day,
I'd have to rush through this job.

And to be honest, I don't like to rush
Because I like to deliver my best work.

If your budget is a problem, I can offer to do something else in that price point, but at this price for what you're asking,
I am unable to do it.

I hope you understand.

I only have room for 10 clients each month to ensure that I can do my best work for each and every client.

So contact me today to start the conversation. 

http://bit.Ly/CallDavid

Sorry about that Condo Bubble - We were wrong

We have become the Tale of Two Cities

This time around, many wonder whether a specific type of housing could falter while other categories remain strong. Most eyes are on the condo market in such a scenario. Toronto — now the largest condominium market in North America — is the epicenter for the concern and on Tuesday another set of statistics showed that market foundering once again. “A tale of two markets is exactly what we are dealing with. There are different things happening in each market,” said George Carras, president of RealNet Canada Inc., referring to the high-rise versus low-rise comparison. His research company just looked at new homes but he says it is a pretty decent proxy for what will happen to the existing homes market down the road. http://business.financialpost.com/2013/08/20/condominium-prices-falling-while-low-rise-homes-continue-to-soar/

So, to paraphrase Mr. Carras  we have become two distinct camps of inventory;  one of detached houses and the other condominium high rise apartments.  There are many facts, figures and percentages bantered about in this article that culminate in a completion rate of 19,000 units annually that must be absorbed into the market or they will be vacant and could BUBBLE OUT!

A drop in Toronto Condo prices would be preceded by Investors unable to RENT their units, therefore choosing to DUMP,  dispose of,  SHED at a Fire Sale Prices as additional inventory COMPETES Into the saturated market; BUT, This is absolutely in conflict with the continued increases in residential rental rates in condominium units...  because no one is building rental housing anymore.

The fact that condo rentals continue to outstrip actual resale transactions of condo units — just 4,689 condo apartments were sold via MLS in the second quarter — is a sign that “demand for condominiums in Toronto remains very stable,” said Shaun Hildebrand, vice president of the condo market research firm.“There’s this notion that investors could be bad for the condo market, but what we’ve seen so far is they’ve been providing an essential service — much-needed rental supply to a market that continues to see increasing demand for rental.”Many condo watchers believe the number of condos coming on the rental market is a strong indicator that investors intend to hold, rather than flip, their units and look to make gains over the longer term.http://www.thestar.com/business/real_estate/2013/08/19/rents_jump_4_per_cent_despite_surge_of_condos_on_market.html

So lets take a look at the money supply;

• Continued tightening of credit criteria
• Modest Rise in Interest Rates with more threatened
• Shortened Amortizations**

**THE NEED TO QUALIFY your borrowings on the five year posted rate, means that fewer prospective purchasers are entering the market. This means that as a landlord you are dealing with a minimum of 20% - 25% down on a rental unit that you will have and hold for a few ( we hope longer ) years.

The Toronto Real Estate Board's Market Watch bares out the fact that detached home buyers are moving to the surrounding 905's both Durham, Northumberland or Milton to avoid the higher prices at a ratio of 3:1   Go west young Man! [East and North]

The additional Toronto Land Transfer Tax [calculator] does not encourage staying in the 416 when the average Purchase Price of a detached home is $793 vs $597 in the 905.*
*http://www.torontorealestateboard.com/market_news/market_watch/2013/mw1307.pdf

IMHO There is a  Balancing of Values or equalization between condo complexes as buyers look at their perceived values and ongoing operational costs.  They examine amenities, walk scores, maintenance costs, examine the Status Certificate to understand special assessments, contemplated repairs, MIX (how many are two bedroom vs One bedroom and one bed plus den) and how much is in the Reserve Fund and hopefully find someone experienced to guide them.

Prices will adjust between neighbourhoods in a similar fashion. Values will be better in outlying areas and Toronto continues to grow and prosper as a destination for schools, business and lifestyle. Where is your Doctor's office?  Downtown. Will real estate Collapse? Sorry, They lied.   They need to keep your attention on the News at 11 or selling more papers.

Would you like to talk real estate   I'm at 647.218.2414 and answer my own phone.
Add your comments below.

Should you know if it was a METH LAB or Grow OP?

If a Toronto Home you are considering as a purchase was a GROW house and forfeited their hydro meter, required a ESA re -inspection to have their occupancy permit reinstated then paid fines; Do you have the right to know?

HomeVerified Home and Neighbourhood History Reports
OREA has received member inquiries about privacy issues arising from HomeVerified home and neighbourhood history reports. These reports disclose the history of insurance claims and reported incidents of marijuana grow-ops and methamphetamine labs at subject properties. They are currently available for purchase by listing brokers through Teranet's GeoWarehouse.
In response to these member inquiries, OREA reviewed sample HomeVerified reports with outside legal counsel and met with HomeVerified and Teranet. After carefully considering the matter, we have concluded that use of these HomeVerified reports by our members raises significant privacy law concerns.
Specifically, we concluded that if a privacy complaint is made, Canada's Privacy Commissioner would most likely decide that the HomeVerified reports contain personal information under Canada's Personal Information and Protection of Electronic Documents Act. That law requires the consent of the individual before you may collect, use or disclose their personal information for commercial purposes. Despite our efforts, we received no assurances that the necessary consents are being obtained from the individuals whose personal information is provided in these reports.
As a result, OREA would like to advise its members that, at the present time, their commercial use of HomeVerified home and neighborhood history reports without the consent of each individual whose personal information is in the reports, places them at risk of contravening applicable privacy law. Complaints made to Canada's Privacy Commissioner could result in the member being ordered to cease this practice, and in some cases could lead to a court ordering the member to pay monetary damages.
To date our members' inquiries have been limited to HomeVerified's product. We understand there is at least one other provider offering home history reports to our members in Ontario. We will take similar steps to consider whether our members' use of other available home history reports also puts them at risk of contravening privacy laws.
OREA will continue to monitor this issue and will keep its members informed of any further developments. For further information, please contact Ontario Real Estate Association. 

In this instance deferring in favour of criminal activity seems wrong.   If you have a Criminal Charge but the charge was withdrawn or dismissed  I guess that the MOLD in the walls and ceilings will self repair.

I think that Buyers are entitled to this information  http://BuyinginToronto.ca

So they lied about the flooding....

You bought it...   They said the basement was dry.  You have an SPIS.

Cellar flood among wave of lawsuits from disclosure formSeller Property Information Statement has prompted over 200 court cases since 1997 In the wake of widespread flooding in Toronto last week, I’ve had a number of phone calls and emails from people trying to sell their properties. They ask about their legal obligation to advise the buyers of a flood which occurred after the signing of a purchase and sale agreement, but prior to closing.
.... After inspecting the property, Adam and Olga Soboczynski submitted an offer which was prepared by an agent who was a friend of the Beauchamps — the sellers of the home. The offer was accepted with a price of $290,000.
Before the offer conditions were waived, the sellers delivered to the buyers a Seller Property Information Statement (SPIS) which was provided to them by the agent. The form is published by the Ontario Real Estate Association (OREA).

In the SPIS, the Beauchamps stated the property was not subject to flooding and they were not aware of any moisture or water problems. At the bottom, the form states that the sellers will disclose any “important changes” to the buyers before closing. 

After receiving a favourable home inspection report, the buyers waived the conditions making the offer firm and binding.http://www.aaron.ca/columns/2013-07-20.htm   

Litigation  [suing people] is incredibly expensive. All of this could be avoided with the purchase of a Home Verified Report that we offer to all our home purchasers as part of their due diligence. 

Are you ready?   Lets get started   http://BuyinginToronto.ca or call 647 218 2414

We don't have this problem - Park Lake Residences

Toronto's recent experienced unprecedented  flooding that resulted in a loss of hydro power and flooding in many underground garages.  Additional Pictures and Photo Cred http://www.blogto.com/city/2013/07/what_the_toronto_floods_looked_like_on_instagram/

Park Lake Residences has above Grade Parking on four levels ALL ABOVE GRADE.   The building has 230 parking spots for the 278 suite owners  and 30 parking spaces for visitors.   Additional parking is available at the Municipal Green P Parking along Lake Shore Blvd. 

Many of these new tower construction buildings have back up generator systems for lights in stairwells and common areas and to operate mechanical systems like the elevators. 

If you want to work with a Realtor who is intimate with buildings in west Toronto / Etobicoke  give us a visit at http://BuyinginToronto.ca 

David Pylyp
647 218 2414

Cliff Dwellering - In the Digital Age

Photo Cred BlogTo

The hydro power (electricity) has been out for 10's of thousand of Torontonians for the last two days, going on 3 days a results of a large storm cell that brought rain and world wide attention to our plight on CNN.

The reliance of city living and the simplest things that we take for granted;

• Elevators and underground parking
• Diesel Power generators for backup power systems
• The coffee machine
• The electric razor
• The Hot Shower in the morning before work
• Charging your phone and ipad
• Your TV in the evening
• Food in your fridge and cooking
• The internet connection
• Laundry

A young mother lamented this morning in the elevator; "It's not just the food we're throwing away or the sleepless nights with the heat,  Our daycare center for our daughter is also without hydro and closed.  We just don't know what to do."

We could listen to the radio for Hydro One updates of rolling black outs in Etobicoke, but my radio plugs in and I'm busy cleaning out everything from my fridge today.

If someone had asked just a few weeks ago what the greatest achievement for our society was, I might have answered the ISS International Space station; Google glasses that placed a computer in your glasses, a medical marvel or mechanical heart.
Today, I say that single step in mankind was harnessing and generating electricity.

Toronto had deferred for too long the required improvements in infrastructure that prevent us from truly being considered a World Class City.

When we go looking at houses we need to request their insurance report for the drains backing up and flooding their basements in this rain storm #FloodTo 2013.   You will see its in the thousands.

Want to go looking at houses or condos?

Let's wait till the power is back on  ok ?