August update

While the Toronto real estate market had another record month with sales of 9,989 homes, (best July in history) and the average sale price rose to $718,422, the big news for the Toronto market actually came from Vancouver. The BC Liberals passed a new 15% tax on foreign buyers as part of the government’s plan to slow foreign speculation that many blame for making the region’s homes the most unaffordable in Canada. The new legislation also gives the City of Vancouver the power to implement a vacancy tax.
Between June 10 and June 29 2016, 14% of the transactions closed in Richmond, 11% in Burnaby and 5% in Metro Vancouver were not Canadian citizens or permanent residents. In total over four weeks in June and July foreign citizens who were not permanent residents bought more than 1 billion dollars’ worth of real estate in British Columbia.

This new tax means an extra $225,000 in taxes for people from abroad buying an average home in Vancouver for $1,500,000.

While Ontario is not currently considering such a tax, it’s quite obvious that many foreign buyers will now choose Toronto instead of Vancouver. This will lead to further increases in Toronto prices.

While there is no need to panic, prices will not jump overnight, there is no question that the sooner one can purchase the better the price terms and conditions will be.

While no one can predict the market and something may trigger a slowdown in purchasing whether it’s a war or some other event we cannot even imagine (no one expected BC to pass this new tax), right now there’s nothing on the horizon and its full steam ahead!

If you are considering a purchase or know of someone who is, give me a call, I will be happy to put my experience and expertise to work for you.

Your Friend in Real Estate
Steven

Termination of the Listing Prior to Expiration

Termination of the Listing Prior to Expiration  

What if you have a real estate agent you don’t like? How do you get rid of them? 

You don’t want to be a complainer, you don’t want to report them, and you don’t want your property “black-listed”. So, what do you do? 

If you are like most people, you’ll do nothing and just wait for the listing to expire. But, that’s just “silly”. What should you really do? 

Let’s have a look at the obligations of the real estate agent. According to the Real Estate and Business Brokers Act, the agent: 

  • Loyalty and Obedience
  • Best interests
  • Confidentiality
  • Accounting
  • Conscientious and Competent service
  • Market Knowledge
  • Disclosure 

These are the basic duties. The question in any set of circumstances is whether the agent is “doing the job”. And, like everyone else, the agent can be terminated for poor or inadequate performance. 

Listing agreement 

Ok, you signed the standard form listing agreement. Now, that’s just great, but what services did you buy? If you are only paying a 1% commission with a discount broker, then maybe you are just getting what you "bargained for”. 

Let’s be clear about commissions. The top producers and best agents are not the deep discounters. Brand new agents without experience often charge very little. You generally won’t find this elsewhere in the market. However, there are no fixed rates. In fact, both the Competition Bureau and the Real Estate Council of Ontario (the regulator) want to bring to your attention that there is plenty of competition in the marketplace. That’s true from a technical perspective, but are all services the same? You need to know that the best agents don’t come “cheap" They won’t work for free, unless perhaps you’re family. 

They need to make a living wage and there’s a lot of work involved in properly marketing a listing. You have to remember that the agent is using their own money for advertising your property, and if there’s no deal, then that’s simply money down the drain.  Also, if there’s very little by way of commission, then there’s really no budget for advertising.

Let’s assume that you have an agent who is simply doing a poor job of marketing your property. Let me first ask you several questions: 

1) Is the listing price fair? 

This is a basic and crucial question. If the price is too high, you’re not going to get any action, and you’re going to be dissatisfied.  

2) Has the agent had the property long enough? 

Let’s give the agent at least two weeks to get started. Sometimes properties derive a lot of attention when the first come on the market. This might be your second agent, so you’re under pressure, but provide the agent with at least a two week period to get started with their marketing campaign. 

3) Does the agent have enough time left on the listing? 

Let’s say your listing has one week to go, and you haven’t given your agent an indication that you’ll renew. Here, the agent may be somewhat reluctant to spend money for advertising only to find that next week, you’ve turned your property over to a new agent. 

Broken Promises 

This is really the only reason for terminating a contract early. There has to be a breach of contract. Otherwise, the listing agreement will simply continue like any other contract. 

So, let’s have a look at the broken promises. First, go back to the listing presentation. Here, it would be helpful, if you had some notes. What did the agent promise you about the following: 

• Listing on MLS
• Lawn sign
• Advertising on brokerage website
• Posting on companion websites
• Distribution of “just listed’ flyers
• Agent’s Open House
• Neighbours’ Open House
• Public Open House
• Advertising in local, low circulation newspapers
• Advertising in regional mass circulation newspapers
• Distribution of targeted neighbourhood flyers
• Brochures for Prospective Purchasers 

While I’m not suggesting that any of those possible advertising venues necessarily make sense for your property, the question is “what did the agent say to you”? If it was important at the time of the listing presentation to get you to sign on, why is it not important now? 

So, you get the sales pitch, the agent promises you the world and then fails to deliver, can you do anything about this? Well, of course you can! There are three initial steps: 

1) contact the agent directly and get a response (you might be quite satisfied),

2) contact the brokerage and inquire about switching agents,

3) contact your lawyer and proceed with early termination. 

Real estate agreements fall under various pieces of legislation including the Statute of Frauds. This simply means that real estate agreements must be completely in writing. Verbal representations don’t count. But, that’s just the real estate transaction. It doesn’t apply to the listing agreement. 

Legal Reasons for Early Termination 

There are two basic justifications: 

1) unfair practices, and 

2) unconscionable representations. 

Unfair Practices 

Have a look at the Consumer Protection Act. The following matters apply to representations by the real estate agent to induce you to sign the listing. Here is the list of applicable unfair practices (often referred to as false, misleading or deceptive representations) under the Act: 

1. A representation that the services have sponsorship, approval, performance characteristics, benefits or qualities they do not have. 
2. A representation that the person who is to supply services has sponsorship, approval, status, affiliation or connection the person does not have. 
3. A representation that the services are of a particular standard, quality, grade, if they are not. 
4. A representation that the services are available for a reason that does not exist. 
5. A representation that the services have been supplied in accordance with a previous representation, if they have not. 
6. A representation that the services or any part of them are available or can be delivered or performed when the person making the representation knows or ought to know they are not available or cannot be delivered or performed. 
7. A representation that the services or any part of them will be available or can be delivered or performed by a specified time when the person making the representation knows or ought to know they will not be available or cannot be delivered or performed by the specified time. 
8. A representation that a service, is needed or advisable, if it is not. 
9. A representation that a specific price advantage exists, if it does not. 
10. A representation that misrepresents the authority of a salesperson, representative, employee or agent to negotiate the final terms of the agreement. 
11. A representation that the transaction involves or does not involve rights, remedies or obligations if the representation is false, misleading or deceptive. 
12. A representation using exaggeration, innuendo or ambiguity as to a material fact or failing to state a material fact if such use or failure deceives or tends to deceive. 
13. A representation that misrepresents the purpose or intent of any solicitation of or any communication with a consumer. 
14. A representation that misrepresents the purpose of any charge or proposed charge. 
15. A representation that misrepresents or exaggerates the benefits that are likely to flow to a consumer if the consumer helps a person obtain new or potential customers.  

Unconscionable Representations 

In addition, there is also a prohibition against unconscionable representations, which include the following; 

1. that the consumer is not reasonably able to protect his or her interests because of disability, ignorance, illiteracy, inability to understand the language of an agreement or similar factors; 
2. that the price grossly exceeds the price at which similar goods or services are readily available to like consumers;
3. that the consumer is unable to receive a substantial benefit from the subject- matter of the representation; 
4. that there is no reasonable probability of payment of the obligation in full by the consumer; 
5. that the consumer transaction is excessively one-sided in favour of someone other than the consumer; 
6. that the terms of the consumer transaction are so adverse to the consumer as to be inequitable; 
7. that a statement of opinion is misleading and the consumer is likely to rely on it to his or her detriment; or 
8. that the consumer is being subjected to undue pressure to enter into a consumer transaction.  

Court Application

There are instances when an agent fails to comply with one of the terms of the Listing Agreement. For example, the agent said “I will host Open Houses every week until the property is sold”. First, this representation should have been reduced to writing and placed in a Schedule to the agreement. Often, these things are talked about but they are not elevated to a contractual term. If they are in writing, then the Courts can provide a remedy including early termination by way of cancellation or a declaration that the agreement is null and void. This is also the case, although much more difficult to prove if the statement is simply a verbal statement. If viewed as an inducement, the Courts can conclude that it was indeed a term of the agreement and afford you the same remedies.

Conclusion 

Any one of the above ought to be sufficient to enable you to terminate early. A consumer is provided with the right under the Act to rescind the agreement. And that right is in addition to any other rights (ie. damages). That is basically a laundry list of 23 separate items. Surely, if you are so displeased, there must be something on that list! 

So, if you have an agent who has “over-promised” and “under-delivered”, you are not without a remedy. Cancel the listing, and move on! 

Urgently needed Forest Hill, Annex or Rosedale newer property

NO INVENTORY SUCKS!  I couldn't pull together 6 potential deals that were all conditional on finding a Forest Hill, Annex or Rosedale newer property with a 2 car garage and an elevator in the 5 million dollar range for the last piece / seller of the puzzle. The Sellers stayed put... for now.  Any leads would be much appreciated?
Your Friend in Real Estate Steven


There are things a seller can do to help get the most out of an open house and to help it run smoothly.

If you and your Realtor decide to host an open house, summer time couldn’t be a more perfect time to showcase the property.
Preparing for your open house
First, you and your family should be prepared to leave for the duration of the open house. Prospective buyers will be distracted by your presence, and the same can be said for pets as well!
Also, make yourself reachable should your Realtor have any questions from prospective buyers. Following the open house, your Realtor may have gathered some feedback that you may wish to address before you host another open house. Keep an open mind, and remember to be patient, it can often take 24 to 48 hours before a buyer will express interest in a property following their visit.
An important piece of advice I would give is to declutter your home as much as possible. Keeping both inside and out clean and clutter free will help make the property look as spacious and inviting as possible. For example, you might remove some clothing from your closets, so buyers can envision hanging their latest purchase, or wash your windows and plant some flowers for added curbside appeal. Also, walk around the property to ensure there are no potential injury hazards.
Protecting your property
First and foremost, it’s important that you not let others into your property without a Realtor present. Even with your Realtor present, it’s best to take extra caution to be safe and it’s advisable to secure or lock away your valuables. When you return home following an open house, ensure all your doors and windows are locked and all your valuables are safe. Many of the tips below may also be useful to keep in mind for any showing appointment for your property.
It might also be a good idea to remove or lock up any prescription medication, extra sets of keys and pets. Perhaps have a “go bag” of items that can’t be locked up, so you can easily remove them from the home in the event of an open house or showing.
You may also want to take precautions to protect your personal information. Google your address to ensure no one has posted a fake ad about your property, and don’t leave your passwords, mail or bills out in the open. It might also be a good plan to remove any family photos to protect you and your family’s personal safety.
So, there you have it. Hopefully these tips will help you be more prepared for your next open house or showing and help sell your home a bit faster this summer. Good luck!

Long-lost friends passionate about good business.



Noah Maislin and Marko Lindhe don’t pretend to be passionate about minute-taking. But they are clearly passionate about good business.

“If we saw a niche for basket weaving in another city, we’d learn the ins and outs of that and sell baskets,” says Lindhe, co-founder of Minutes Solutions.

Maislin says he’s always had the spirit in him. From selling magazines at camp to his peers, shaving kids’ heads, and helping his uncle sell shoes at a flea market, he seemed destined to run his own company. Years later, his Dalhousie University professor would agree, nominating him for an entrepreneurship award, which he won.

The opportunity he eventually discovered was in minute-taking: primarily for condo board meetings, but also for non-profits, law firms, professional organizations and associations. “Every corporation needs to take and keep minutes, by law,” he says. More recently, Minutes Solutions has started offering meeting newsletters and summaries and will soon be offering training webinars as well.

Maislin explains that not having proper minutes can get boards into a lot of financial and legal trouble, and relying on a board member to take the notes introduces bias and essentially removes a contributing member of the team. “It’s easy to skew minutes and either forget to incorporate important items, or incorporate items that shouldn’t be included.”

While contracting out minute-taking is the norm in Toronto, Minutes Solutions is expanding into southern Florida, where they spotted a significant opportunity after visiting family there.

With the business growing rapidly, Maislin brought on his old friend Marko Lindhe, who he first met as a kid when they played hockey together. As linemates for the Toronto Colts, Maislin says Lindhe “always stood out to me as a natural leader.”

“You don’t remember a lot of kids at that age but he popped into my mind every once in a while because we shared a genuine bond.”

The two lost touch until a mutual friend reconnected them when they were both studying at Dalhousie, and they seemingly haven’t parted ways since.

The pair say they complement each other well. “We both have very similar mentalities. We don’t always agree on everything but we challenge each other,” says Maislin. “And we want to see each other succeed.”

The two acknowledge that they are not the typical type to start a minute-taking business and say they enjoy the reaction from other entrepreneurs at Enterprise Toronto’s Starter Company program.

“We consider our business a vehicle that allows us to create innovative ideas and put them into play right away. Our passion at end of the day is about developing and expanding business and being in control of our own destiny,” says Maislin.

Lindhe says he first noticed the Starter Company program for the grant associated with it. He noticed that mentorship was involved as well and says they were “open minded, open to criticism.” What they got out of it though exceeded their expectations. Learning something in theory in university was far different than learning something they “could literally learn in class and then go apply within an hour.”

They found a lot of “analogous references,” with their program peers and uncovered a lot of best practices they could replicate for their own industry. “It’s a huge tool for resources,” says Lindhe.

Just being able to ask other entrepreneurs about funding sources, accountant rates and recommendations, common speedbumps – “really puts you in a position to elevate yourself.”

“That’s the power of being in a room full of like-minded people.”

Additionally, they say Andrew Patricio, the Starter Company program’s leader, is knowledgeable, frank and fun to be around. “He inspires the people around him and ourselves to grow,” says Lindhe.

“They put us in a position to really push us to that next level.”



Long-lost friends launch minute-taking service together

Long-lost friends passionate about good business.



Noah Maislin and Marko Lindhe don’t pretend to be passionate about minute-taking. But they are clearly passionate about good business.

“If we saw a niche for basket weaving in another city, we’d learn the ins and outs of that and sell baskets,” says Lindhe, co-founder of Minutes Solutions.

Maislin says he’s always had the spirit in him. From selling magazines at camp to his peers, shaving kids’ heads, and helping his uncle sell shoes at a flea market, he seemed destined to run his own company. Years later, his Dalhousie University professor would agree, nominating him for an entrepreneurship award, which he won.

The opportunity he eventually discovered was in minute-taking: primarily for condo board meetings, but also for non-profits, law firms, professional organizations and associations. “Every corporation needs to take and keep minutes, by law,” he says. More recently, Minutes Solutions has started offering meeting newsletters and summaries and will soon be offering training webinars as well.

Maislin explains that not having proper minutes can get boards into a lot of financial and legal trouble, and relying on a board member to take the notes introduces bias and essentially removes a contributing member of the team. “It’s easy to skew minutes and either forget to incorporate important items, or incorporate items that shouldn’t be included.”

While contracting out minute-taking is the norm in Toronto, Minutes Solutions is expanding into southern Florida, where they spotted a significant opportunity after visiting family there.

With the business growing rapidly, Maislin brought on his old friend Marko Lindhe, who he first met as a kid when they played hockey together. As linemates for the Toronto Colts, Maislin says Lindhe “always stood out to me as a natural leader.”

“You don’t remember a lot of kids at that age but he popped into my mind every once in a while because we shared a genuine bond.”

The two lost touch until a mutual friend reconnected them when they were both studying at Dalhousie, and they seemingly haven’t parted ways since.

The pair say they complement each other well. “We both have very similar mentalities. We don’t always agree on everything but we challenge each other,” says Maislin. “And we want to see each other succeed.”

The two acknowledge that they are not the typical type to start a minute-taking business and say they enjoy the reaction from other entrepreneurs at Enterprise Toronto’s Starter Company program.

“We consider our business a vehicle that allows us to create innovative ideas and put them into play right away. Our passion at end of the day is about developing and expanding business and being in control of our own destiny,” says Maislin.

Lindhe says he first noticed the Starter Company program for the grant associated with it. He noticed that mentorship was involved as well and says they were “open minded, open to criticism.” What they got out of it though exceeded their expectations. Learning something in theory in university was far different than learning something they “could literally learn in class and then go apply within an hour.”

They found a lot of “analogous references,” with their program peers and uncovered a lot of best practices they could replicate for their own industry. “It’s a huge tool for resources,” says Lindhe.

Just being able to ask other entrepreneurs about funding sources, accountant rates and recommendations, common speedbumps – “really puts you in a position to elevate yourself.”

“That’s the power of being in a room full of like-minded people.”

Additionally, they say Andrew Patricio, the Starter Company program’s leader, is knowledgeable, frank and fun to be around. “He inspires the people around him and ourselves to grow,” says Lindhe.

“They put us in a position to really push us to that next level.”



Long-lost friends launch minute-taking service together

TREBs Letter to the Mayor.

Dear Mayor Tory:
Given recent government and media attention to the issue of foreign investment in Toronto real estate, I am writing to provide you with the views of the Toronto Real Estate Board (TREB) on this issue. TREB represents over 45,000 REALTORS® working within Toronto and the Greater Toronto Area. As such, our Members are uniquely positioned to provide knowledgeable commentary on this issue. As you may know, this issue has predominantly been a priority for public policy makers in British Columbia and Ontario because of conditions in the Vancouver and Toronto markets. In this regard, the British Columbia provincial government recently implemented a 15 per cent tax on foreign buyers of real estate. In addition, the Ontario provincial government is working closely with the Federal Minister of Finance’s working group on housing affordability, which has been tasked with reviewing and making recommendations on this issue. TREB is working with the Ontario Real Estate Association to provide input to the provincial government and the federal working group. Given the importance of this issue to Toronto, we believe that it is also important to provide our views to you and all of City Council. In this regard, TREB believes that implementing tax increases on foreign home buyers is a knee-jerk reaction to a problem that is not yet fully understood. Furthermore, we believe that such action would do little to address the growing affordability challenges in Toronto, and could have negative consequences for our broader economy.

 For the following reasons, TREB believes that Toronto City Council should not implement public policy to intervene with foreign investment of Toronto real estate:  Toronto market is intertwined with the GTA market: any City of Toronto Council intervention could have the result of simply persuading foreign investment to invest more heavily in regions surrounding Toronto, which in turn could have a corresponding impact on housing prices in those regions, which would in turn have an impact on Toronto prices. As such, with the provincial and federal levels of government currently reviewing this issue, it would be wise for Toronto City Council to allow those levels of government to make decisions on the need and scope for any public policy changes.  There is a lack of reliable data on foreign buyers: Both at the provincial and federal levels, there is currently a dearth of reliable data on how much of the market foreign buyers actually make up. Before making any public policy decisions, it would be prudent to gather reliable data. In this regard, TREB will be surveying its members in the Fall on the issue of foreign buyers, and releasing the results of this publicly. These survey results could be extremely valuable to the all levels of government before they make any policy decisions on this issue.  Housing supply factors are a real concern: while foreign buyers may be contributing to the overall pool of buyers in the GTA, the demand side of the price growth equation should not be considered in a vacuum. Instead, both demand and supply issues should be considered as contributors to the growing affordability challenge. Of particular importance is what could be done at the local and provincial levels to bring more supply into the marketplace. For example:  Reassess Growth Plan and Greenbelt policies with a goal of responsibly easing restrictions on developable land in the GTA and surrounding areas;  Look at whether or not the Provincial Policy Statement, as it relates to a ready and diverse supply of housing alternatives, is being enforced;  Look at opportunities to re-designate lands within urban areas for low-rise housing development; and,  Reduce, reform or eliminate barriers to the purchase and sale of residential real estate like the Toronto Land Transfer Tax, which, as a significant transaction-related cost, has acted as a barrier to mobility and has thereby played a part in suppressing the number of existing homes being offered for sale. Looking at the GTA in particular, we remain on track for approximately 110,000 residential sales (including condominium apartments) through TREB’s MLS® System in 2016. This second consecutive record sales year will be up against 150,000 to 160,000 new listings – a decline compared to 2015. This illustrates the amount of competition between buyers that currently exists in the marketplace today, which has prompted double-digit annual increases in low-rise home prices (MLS® Home Price Index and average prices) and high single-digit increases in condominium apartment prices. With this in mind, even if a demand-focused policy were to reduce sales by between five and ten per cent, we would still experience seller’s market conditions in the GTA, quite possibly with the continuation of double digit price increases for low-rise home types. As discussed above, the only sustainable way to bring about more balance, and thereby more moderate annual rates of price growth, in the marketplace would be to develop new or modify existing policies to allow for a greater supply of listings. At current sales levels, we would need to see approximately 200,000 to 210,000 new listings per year to achieve a balanced market, based on historic norms. This would require an additional 50,000 to 60,000 new listings per year. On the demand side we also encourage the City Council and the province to consider actions targeted at the segment of the market that is being hurt the most by rising prices – first time buyers. For example, the City should consider modernizing the land transfer tax rebate for first time buyers to reflect modern housing prices. In 2008, when the Toronto land transfer tax was introduced, Toronto first time home buyers paid little or no tax on the average priced home. Eight years later, Toronto first time home buyers purchasing an average priced home are paying a balance of close to $6,000 in Municipal Land Transfer Tax, after receiving the maximum City rebate of $3,725, which has not been adjusted since this tax was implemented. In addition, the City continues to levy the highest land transfer tax of 2 percent on properties beginning at $400,000, which is well below the current average price of a Toronto home, which currently sits at almost $700,000. In summary, we encourage Toronto City Council to take careful and thoughtful consideration of all aspects of this issue before any potential action to intervene. Thank-you for your consideration of our views. We would be happy to meet with you to discuss this issue in greater detail. Mauro Ritacca, TREB’s Senior Manager of Government Relations, will contact your office in the near future to inquire about meeting with you on this issue.