Adoxographist's Blog

8 considerations for Sellers…

John Grasty (Prudential Sterling Realty) — Thu, 24 Jul 2008 22:33:50 -0500

Understanding what is important to a buyer can provide insights for the marketing of a home for sale.

When deciding whether to purchase a particular home a buyer will typically consider the following factors (in order of importance):

1. Price - no surprise here.
2. The type of home.
3. Privacy from neighbours.
4. Parking facilities - garage.
5. Condition - work required.
6. The age of the home.
7. A large backyard - lot.
8. A view.

Of course this list isn't exhaustive, neither is it secret.

What insights might this provide for a seller? More here [...]

John in Port Moody

Real Estate Evolved

A personal tribute to "My Hero"...

John Grasty (Prudential Sterling Realty) — Mon, 14 Jul 2008 02:35:01 -0500

Today is Monday, July 14, 2008. Twenty eight years ago quite early in the morning of Monday, July 14, 1980, I sat on the south of Lakeshore Blvd at the base of Walkers Line in Burlington, Ontario.

In full view was an image now indelibly cast in my memory of this determined young man running in a double-step and skip style suited for his prosthetic leg, on his way from Oakville to Hamilton.

All of a sudden I was completely overcome by uncontrollable emotions that I had never quite experienced before. I was only one of a few who were there to offer support to Terry Fox as he came by, and after I feebly roused a "Go Terry" he waved over to me; that's when I totally lost it. More here [...]

John in Port Moody

What to consider about Defects: the Disclosure and Due Diligence…

John Grasty (Prudential Sterling Realty) — Sun, 13 Jul 2008 20:00:38 -0500

Defects: the Disclosure and Due Diligence...

Providing misleading information or concealing known information during a home sale would make a homeowner highly susceptible to lawsuits, and it happens.

A disclosure statement is a statement in which the sellers reveal to potential buyers (whether the buyer asks or not) specific information about the condition or other aspects of real property that would affect the property's value or desirability.

Patently obvious defective conditions ("patent" defects) in a home that must be reported are those, known, openly exposed, and easily found on inspection.

In most jurisdictions the process of listing a home requires us as REALTORS® to obtain a signed and dated disclosure statement from the homeowner, and this will often form a part of the contract of purchase and sale. More here [...]

John in Port Moody

"Market activity offers awaited relief for homebuyers"

John Grasty (Prudential Sterling Realty) — Fri, 04 Jul 2008 01:28:21 -0500

This afternoon the Real Estate Board of Greater Vancouver issued a press release entitled:

"Market activity offers awaited relief for homebuyers"

Well it's now official, "Increased property listings and moderating home prices have eased the Greater Vancouver housing market into a buyer's phase". (...as in buyers market)

Every market, high or low, has its opportunities, and right now Sellers are still of the mindset that their property will sell for more than it will, and it won't!

In the past few months, and by being honest with potential Sellers, I have lost a number of listings and expect this to continue. Two of these I simply wouldn't accept, and in every case the home was listed considerably higher than I had suggested and all of them remain on the market today.

I'm sure these Realtors who accept over-priced listings don't use the popular marketing line (or a derivative): I'll sell your home in the shortest time, for the best price, and with the least problems. I'd sure like to know exactly what their marketing plan is though. more here [...]

John in Port Moody

Post Canada Day...

John Grasty (Prudential Sterling Realty) — Wed, 02 Jul 2008 11:51:38 -0500

Canada Day was celebrated in the usual way with parades, picnics, parties, and of course pyrotechnics.

Although Canada actually became independent from Great Britain in 1867, this party only started in 1879, and was intermittent thereafter until becoming mainstream in 1958.

This year the Provincial Government of British Columbia decided to rain on our national parade by adding a carbon tax on all fossil fuels effective July 1st. What lousy timing! The bottom-line is that today we pay more at the pump.

For my 40^th Canada Day it seemed appropriate to paint my face red to celebrate Canada Day. What makes this face painting ritual so special for me is that I am able achieve this without the use of paint or a paint brush (weather-permitting).

Despite being eco-friendly some might call this idiotic; I call it patriotic.

With a temperature of 26^o and a half an hour dosage of vitamin D from overexposure to the accompanying sun's ultraviolet radiation, I upheld the Canada Day tradition with my face appearing as red as the Maple Leaf on our flag.

John in Port Moody

Fewer than half of B.C.'s leaky condos fixed so far, says report

John Grasty (Prudential Sterling Realty) — Tue, 24 Jun 2008 13:44:38 -0500

It is interesting to read that more than $460 million has been approved by the Homeowner Protection Office (HPO) for no-interest leaky condo loans from the launch of the program to date.

The Tri-City News June 21, 2008

Since only about 20% of victims pass the HPO means-test for a no-interest loan, and there have been 13,226 loans approved, this means that over 66,000 families in BC have already been directly affected by builder fraud.

It also means that the direct costs to BC families for the various types of fixes, many inadequate, have exceeded a staggering $2.3 billion to date; read again, $2.3 billion to date.

Is my Secret Service badge and pay in the mail?

John Grasty (Prudential Sterling Realty) — Mon, 23 Jun 2008 17:18:20 -0500

Over the weekend I read in the Vancouver Sun how a retired Richmond homeowner lost title to his bungalow to con artists. The fraudsters also got away with a mortgage scam worth $400,000.

The failure of the banks, lawyers, land title office, etc., to verify both parties to the transaction is scandalous in itself.

Since there is clearly challenges at the above, and other institutions (FINTRAC, CSIS, RCMP, etc.), Realtors and Brokerages have been enlisted, effective June 23, 2008, as intermediaries to help raise suspicions and for the discovery of proceeds of crime in real estate transactions. more here...

John in Port Moody

Real Estate Evolved

Introducing REALTOR.ca

John Grasty (Prudential Sterling Realty) — Tue, 17 Jun 2008 21:42:42 -0500

The mls.ca public web site, which is now one of Canada's most popular web sites, is sponsored by The Canadian Real Estate Association (CREA) and was launched in 1996. As the Internet research gateway to all residential real estate in Canada, the mls.ca web site attracts an average of about three million unique visitors each month.

To avoid public confusion around the use of "mls", the website name and address is now scheduled to be changed to REALTOR.ca on June 30th. Read more here...

John in Port Moody

Real Estate Evolved

Questions for Sellers ...

John Grasty (Prudential Sterling Realty) — Sat, 07 Jun 2008 15:06:47 -0500

You probably won't find the following questions on your average real estate brochures:

Sellers, do you:

know to what extent that you want to be involved in the sale?
have a coherent strategy?
know how to attract the serious buyers?
understand what a stale property is?
know the consequences of not disclosing properly when selling?
have a plan if your home doesn't sell?
want to minimize your stress (from the uncertainty)?
expect to get (at least) what you pay for?

We want you to feel confident that your home will be sold, and properly. We will customize and personalize a plan for you using proven and different techniques to help you secure the best value in the given market.

You will be provided the important information required as a seller or buyer.

John in Port Moody

Real Estate Evolved

Questions for Buyers ...

John Grasty (Prudential Sterling Realty) — Sat, 07 Jun 2008 11:48:07 -0500

You probably won't find the following questions on your average real estate brochures:

Buyers, do you:

take real estate ads at face-value?
know how to properly target your future home?
have the experience required to negotiate favorable (including safe) terms and conditions, and a fair price?
know how to do your own due diligence?
have the upper-hand in a multiple offer situation?
know that many single homes were built with the same technology as "leaky condos"?
want advantages that other buyers probably don't have?
have a proper strategy?
want to avoid buyers remorse?

-Real Estate need not be risky!

You will be provided the important information required as a buyer or seller.

John in Port Moody

Real Estate Evolved

"MLA wants regulations for home inspectors"

John Grasty (Prudential Sterling Realty) — Wed, 04 Jun 2008 00:48:37 -0500

Letter to the Editor:

Homebuyer beware - Coquitlam NOW - Friday, June 06, 2008

Re: "MLA wants regulations for home inspectors" Friday, May 30.

The "neglect in protecting homebuyers" is widespread, and Coquitlam-Maillardville MLA Diane Thorne's concern is shared by many.

Home buying is fraught with risk and claims far too many victims; whether resale or presale.

The home inspection is one of the many ways a homebuyer is left unprotected.

The home inspection contract has as many disclaimers, exclusions and limitations as the 2-5-10 new home warranty insurance program. Often the inspectors used by the warranty providers are unqualified to give an opinion; how can they possibly dispute a homeowner warranty claim?

It was recently revealed here in the Tri-Cities that unqualified city officials ordered a homeowner to make home improvements as a result of an inspection.

Protecting the homeowner and homebuyer is a wide-ranging issue which needs some political will and leadership to be dealt with seriously.

It will be very interesting to see the outcome of the (Premier Gordon) Campbell administration's initiative to certify and regulate home inspectors, especially since they failed to deliver on their vote-buying, pre-election promises to leaky condo owners.

As a homeowner advocate, I hear many of the buyer horror stories of families whose dreams have been shattered, just like the devastated owners of leaky condos.

It is sickening.

The issue is broad, but the goal of government is simple: to promote a fair, safe and informed marketplace -- one in which your rights as a homebuyer are fully protected.

We can only hope that legislation is introduced soon to achieve this. Meanwhile, let the buyer beware.

John in Port Moody

Real Estate Evolved

Warning to those researching reputation of builders...

John Grasty (Prudential Sterling Realty) — Fri, 23 May 2008 23:43:21 -0500

"Development is a tough game and United Properties has been at it for some time, so it is quite unique to have such a developer run into this kind of difficulty," said real estate lawyer Ron Usher.

http://www.cbc.ca/canada/british-columbia/story/2008/05/21/bc-the-anvil-in-trouble.html

What a frivolous review; who the heck is this guy (mis)representing anyway?

The Matsqui Group of Companies claimed to have "earned a sterling reputation in the building and development industry" prior to the Brio in Abbotsford collapsing 3 months ago.

The Bosa's, Polygons, etc., all built multiple leaky condos but paid only a fraction of the remediation costs, and then only with a "Gag Order". They also passed on their ‘difficulties' to the owners, who paid the lion's share of the costs, and it appears things aren't likely to change soon; neither is the quality of construction by the way.

I believe that United Properties themselves developed and sold leaky condos before going into and coming out of insolvency to finish and begin new projects.

The fact is that doing research into the reputation of any builder in BC is impossible, and worse if relied upon.

If you saw Condo Crunch on CBC Marketplace you would have seen Jasmine Wong and Kenny Chang, from Burnaby publicly showing documents with what appears to be Rennie Marketing letterhead. They said in the show that their Vancouver condo didn't turn out to be what was portrayed in the floor plan they saw when purchasing the unit.

In a previous post I wrote, "With so many multifamily developments failing, ‘weasel word' warranties, and the legalized ‘bait & switch' tactics, the general business acumen and morality of builders and the home building industry leaves the consumer with an overall lack of confidence."

Unfortunately, through the Anvil in New Westminster, and so many other miserable failures, the home building industry continues to prove it.

Meanwhile the actions and words of senior governments are only superficial when it comes to protecting the public. Do you really think politicians care?

There is no political will to cut off the hand that feeds them, and let's face it the developers have always owned the politicians.

Let the buyer beware prevails...

John in Port Moody, BC

Real Estate Evolved

How far over the market value constitutes an overpriced property?

John Grasty (Prudential Sterling Realty) — Fri, 02 May 2008 22:59:32 -0500

We can all relate to the timewasters which "The Ethics Guy", Kim Spencer, touches on: "Time, it's not on our side; tick-tock, tick-tock"

One of my peeves is showing misrepresented properties; the ‘one bedroom and den being represented as a two bedroom' example Kim raises wastes my time, my client's time, and skews the information for anyone doing a CMA on a two bedroom.

Chances are you won't know about this misrepresentation until you arrive at the showing and see it, unless of course you're very familiar with the specific property itself.

Perhaps the biggest misrepresentation and timewaster of all (yet least discussed) is overpriced listings.

Unless you know the individual nuances of the entire housing inventory of a neighbourhood, it is unlikely you will be able to recognize an overpriced listing without spending time comparing.

It would be interesting to know how many contracts are prepared and presented but never accepted. I recently read that over 20% of listings expire because they don't sell (source forgotten, sorry; please correct me if you have reliable source).

You can read hundreds of articles and blog posts, most written by Realtors, warning about the perils of overpricing, and yet there can be little doubt that bidding the highest price for a listing is still practiced.

In our agency relationships we continue allowing Sellers to overprice when we have an obligation to work in their best interest. How can the practice of overpricing therefore be considered protecting the best interest of the Seller?

It appears to me that the frequency of overpriced listings is in direct correlation to a downward trend through a balanced market and into a buyer's market. The Sellers expectations are notoriously high at the best of times, so in a declining market overpricing is exacerbated; at least until reality sinks in.

While establishing a realistic listing price will depend on many factors, and keeping in mind that we accept a listing with the idea of selling it, the discussion of declining market conditions and overpricing raises an interesting question:

What do you think; how far over the market value constitutes an overpriced property?

John in Port Moody, BC

Real Estate Evolved

Leaky Condo Study Disputed?

John Grasty (Prudential Sterling Realty) — Thu, 17 Apr 2008 14:41:37 -0500

Re: http://realtytimes.com/rtpages/20030828_leaky.htm.

The above Realty Times article refers to this research report by Nancy Bain: Re-Sale of Leaky Condos: Did the Buyer Know?

Here is a letter (with specific references removed) I wrote to a Realtor in 2006:

Hello Realtor, You mentioned to me that you had sold units in this building before, and that this was a "good" building. I am concerned that this may not necessarily be a reasonable representation. This past weekend I, along with my clients, reviewed the minutes that you provided. It appears to me from reading these minutes that:

1.    this is by definition a leaky condo, according to the opinion of professional engineers who provided a proposal;
2.    the owners have chosen to do a partial (targeted) fix vs. the recommended complete rainscreen replacement;
3.    a risk exists for future failure in areas not targeted;
4.    structural changes were completed; and,
5.    no legal advice or opinion was ever received.

The owners decision to do a partial fix may have caused: the professional engineers to quit; the Homeowner Protection Office not to participate; and, future high ratio mortgages to be unavailable for this property if proper disclosure is made to the mortgage lender.

On the Property Disclosure Statement dated 2006, that you provided, your client represented:

V.       Are you aware of any special assessment(s) voted on or proposed? NO
2.B.    Are you aware of any additions or alterations made without a required permit? NO

The disclosure regarding the special assessment (V), doesn't appear to have a statute of limitations regarding commencement or period of time. When you sold this property to the present owner just over one year ago, you and or they would or should have known that there had been an engineering report completed by professional engineers in 2004 requiring a special assessment. I would therefore question the response provided on the disclosure statement.

Regarding the response for (2.B.), the repairs described by the company doing the partial fix includes references to structural work. I believe that a permit is required for any structural work. I have attended City Hall on behalf of my clients and discovered that no building permits have been issued for this building since its original construction. Without having made this enquiry, it is understandable that the disclosure statement might be completed quite innocently. I am surprised that the strata management wouldn't have requested a file copy of a permit.

Had a complete fix been done using a professional engineer, a certificate of completion would have been issued. I believe that you are therefore unable to fulfill this requirement of the subject conditions on the offer dated 2006.

I also bring this information to your attention because I am unsure how comfortable you might be in the future representing this as a "good" building.

John

In another situation close to home in the Tri-Cities, a well known Metro Vancouver management company arranged for a professional engineers assessment report which concluded the entire building envelope would need replacing. This was raised at the SGM of a ‘55+' building in 2004. I became aware of this as a potential buyer in 2005 while reading the minutes, and subsequently, the executive summary of the engineers report.

To the best of my knowledge this remediation has not been done to date. The Property Disclosure Statement (PDS) questions are worded in the present tense "Are you aware...", so a negative answer does not mean that there has not been a problem in the past or that a past problem will not recur. Furthermore the recommended two years of minutes would be insufficient in uncovering this for the buyer (or the Realtor).

Despite paying for a professional opinion and being advised by qualified engineers to replace building envelopes, many strata corporations have chosen not to follow that advice, often doing something less. Experience now tells us that fixes referred to as, "targeted", "partial", "band-aid", "spray-on", "Volkswagen", or, "cheap", take your pick, are rarely adequate, and even the mortgage providers consider them "high risk".

How can a buyer possibly determine the risk of future reoccurrence in the other areas not remediated? Only if an issue is discovered during an inspection does the buyer still have options.

There is an opportunity to protect buyers with an expanded role to be played by strata management companies. In my opinion, until a certificate of completion for the scope of work originally prescribed by a professional engineer has been filed at the municipality, the Form B should be completed by the management company to reflect that work prescribed remains outstanding.

This also raises two interesting questions for me: What obligates (via the SPA or reg) the strata corporation to fulfill the prescribed repairs, and what is the role and responsibility of the strata management company in advising the strata corporation of their obligations?

Without specialized knowledge and understanding the buyer is left to ask the right questions and to ask for the right documents to discover what was done and what wasn't. Before considering doing these assessments without professional help, buyers must be true to themselves on their personal limitations, constraints, and ability to manage the risks.

Let the buyer beware prevails.

Take care,

John in Port Moody, BC

Real Estate Evolved

Holmes On Homes: 70,000 requests for help this year...

John Grasty (Prudential Sterling Realty) — Wed, 12 Mar 2008 12:20:31 -0500

70,000 requests for help is an awful lot of letters. It makes one wonder how many people don't even bother to fight (or report) a system that favours the building industry rather than protect consumers?

I suspect many of these requests never end up scored in the statistics collected by either the provinces, or the organizations to which the responsibility has been downloaded in some cases. The result is skewed reports fed to the media on how well the building industry is doing; NOT!

This is a very sad commentary on the state of the home building industry. While the role of Holmes On Homes, informing consumers on weekly TV, is useful and greatly appreciated, it is time for the industry and government to get their heads out of the sand.

Below is an email response from the Story Producer of the TV renovation show Holmes on Homes to an enquiry in February asking if poor workmanship issues of a builder would be suitable for a future show.

This excerpt is interesting: "If you need an unbiased assessment of your current renovation, or the condition of your home, an inspection by a licensed Structural Engineer, in your area, might be an appropriate place to start"; I'll let you draw your own conclusions, but not recommending the use of a home inspector seems to be telling.

John in Port Moody, BC

Real Estate Evolved

From: Brian
Sent: Tuesday, March 11, 2008
Subject: Re: Holmes on Homes

Dear Friends,

Thank you for your email. As the Story Producer for Holmes On Homes, I wanted to let you know that I do read all the story submissions. It is personally very heartbreaking for me to know that there are so many people in desperate need of assistance. We have received more than 70,000 requests for help this year, and it is only possible for Mike Holmes and our crew to complete 12 renovations in the same span of time.

Holmes On Homes is now being broadcast in many countries around the world, and consequently, we have been simply overwhelmed with requests. Unfortunately, it is no longer possible to personally respond to each and every letter as we did in the past. For the time being, we have to resort to sending this form letter, and I do sincerely apologize. If your story meets all of our selection criteria, our production office will personally contact you by phone within the next 4-6 weeks to request further information. Only those stories being considered will be contacted by phone.

I hope some of the following information will be helpful:

Renovation Advice: We feel very strongly that we are unable to confidently give proper advice without fully understanding all the factors involved in a given situation. This would require inspecting the renovation in-person. Due to Mike's full-time commitment to making this program, he is unable to make personal inspections, and consequently, cannot help those looking for specific information about their own house. If you need an unbiased assessment of your current renovation, or the condition of your home, an inspection by a licensed Structural Engineer, in your area, might be an appropriate place to start.

Legal Advice: We suggest that you contact an attorney or legal representative who specializes in housing issues.

New Home Advice: We suggest contacting Canadians for Properly Built Homes, a not-for-profit, Canadian national consumer protection organization for advice on how to manage your new home construction issues. You can reach Canadians for Properly Built Homes at www.canadiansforproperlybuilthomes.com

Contractor Referrals: A current list of all our recommended contractors can be found at www.holmesonhomes.com under the heading, "Contractors". We only refer contractors that we have personally worked with, and trust to consistently uphold our professional and ethical standards.

Employment/Volunteer Opportunities: All of our licensed contractor positions are currently filled. The overall well-being and safety of our contractors and film crew is paramount. We do appreciate the kind and generous offers of help from our viewers, but unfortunately, we cannot allow visitors or volunteers on our work sites/film sets.

Renovation Questions: If you have specific questions about renovations, the TV program, or Mike Holmes, we suggest posting them on the Mike Holmes Fan Forum. We also suggest reading Mike's new book entitled, "Make It Right" for detailed renovation information.

The following is an overview of our selection process for our seventh season in 2007-2008:

Location of the Home: This year, production will occur in various locations across Canada- We have recently returned from filming on location in northern Ontario, Canmore, Alberta, and Saint John, New Brunswick.

Storyline: The show premise is to help homeowners who have been ripped off by a professional contractor or builder that they hired. We are contractually mandated to stick to this premise. Because of this, we are not actively looking for stories specifically about maintenance issues with existing homes, personal tragedy, DIY situations, natural disasters, and legal transactions. Most commercial projects and condo developments also fall outside our contractor licensing qualifications and/or television production limitations, as we are residential contractors only.

Size and Type of Renovation: Stories are also evaluated by the scope of the project. We have to be confident that any job we take on will be finished in time to meet our scheduled broadcast commitments. As we approach the season 7, we are looking for a range of specific projects and scenarios that could be characterized as small to medium, instead of the whole house disaster type stories produced in previous seasons. Our challenge is to find smaller scale renovation projects that are interesting enough to create a compelling one-hour program.

Cost of the Renovation: We receive many inquiries as to what the costs are to the homeowners featured on Holmes On Homes. Because we don't discuss these costs during the course of the program, there is a misconception by many viewers that the renovation work we do is free of charge. This is not the case. The homeowners are financially responsible for a portion of the work performed on their home. The main reason these costs are not mentioned is because the show is broadcast around the world, and the relative costs for comparable work in other provinces and countries can vary.

Other Considerations: In order to produce the best quality TV show that we can, it is not possible for Holmes On Homes to base an episode on subject matter, or storyline, that we have already covered in a recently produced episode.

Again, I do apologize for responding with this form letter. I hope to personally respond to as many emails as I possibly can.

Kindest regards,

Brian Warchol, Story Producer
Holmes On Homes
Toronto, Canada

Brio, the latest casualty for home buyers...

John Grasty (Prudential Sterling Realty) — Fri, 07 Mar 2008 03:07:59 -0600

It is now official that the planned 28 storey Brio building won't be offering, or blocking, any views soon.

In their pre-sale glitz and glamour marketing, the Matsqui Group of Companies claimed to have "earned a sterling reputation in the building and development industry".

If this is in fact true it would suggest that doing research into the reputation of a builder is impossible and worse, can be misleading.

Last October it was reported in the Abbotsford-Mission Times that $35 million in real estate was announced as sold in one day on October 13, 2007. This hype seems to differ from this: http://www.cbc.ca/canada/british-columbia/story/2008/03/06/bc-briostalled.html, but begs, how many buyers actually read the legal jargon in the thick disclosure statement (during the buying frenzy with red dots being put up by the minute for all to see in the sales office)?

Of course no buyers read it, which means none of them likely even knew the termination clause existed.

In BC, part 2 of the Real Estate Development Marketing Act (REDMA), Sec. 15. Providing disclosure statements to purchasers, reads:

- (1) A developer must not enter into a purchase agreement with a purchaser for the sale or lease of a development unit unless

(a ) a copy of the disclosure statement prepared in respect of the development property in which the development unit is located has been provided to the purchaser,

(b ) the purchaser has been afforded reasonable opportunity to read the disclosure statement, and

(c ) the developer has obtained a written statement from the purchaser acknowledging that the purchaser had an opportunity to read the disclosure statement.

Of course, clause (c) is the loophole (waiver) used. So the obvious question, what is a reasonable opportunity?

Well the only solution seems to be a reservation system that allows the potential buyer to reserve a property, say for a week, to have the disclosure and contract checked out with their lawyer, and before signing a contract (or waiver).

In a previous post I wrote, "With so many multifamily developments failing, ‘weasel word' warranties, and the legalized ‘bait & switch' tactics, the general business acumen and morality of builders and the home building industry leaves the consumer with an overall lack of confidence."

Unfortunately they continue to prove it.

Do you really think government cares? Let the buyer beware prevails...

John in Port Moody, BC

Real Estate Evolved

Investigation into the lack of buyer protection welcomed...

John Grasty (Prudential Sterling Realty) — Tue, 04 Mar 2008 20:31:40 -0600

The Ombudsman of Ontario has just announced an investigation into issues concerning the lack of consumer protection for newly built homes: http://www.ombudsman.on.ca/UploadFiles/File/MGCS-Tarion%20release%20Eng.pdf.

"Our goal at the Ministry of Government and Consumer Services is to promote a fair, safe and informed marketplace - one in which your rights as a consumer are fully protected." (excerpted from the Ministry of Government and Consumer Services web-site)

The Ontario Government conveniently set up the Tarion Warranty Corporation as a private corporation; as such the Ombudsman does not have the jurisdiction to investigate Tarion itself.

As some of you may know, Canadians for Properly Built Homes (CPBH) has been encouraging the Ombudsman of Ontario to investigate on behalf of home buyers.

In a press release today, CPBH President, Karen Somerville said, "We are delighted to advise you that an Ombudsman's investigation is now underway, concerning the Ministry of Government and Consumer Services."

CPBH has stated a particular interest in the following two aspects of this investigation:

- how the Ministry represents itself to the public regarding its relationship with Tarion; and
- the degree of consumer protection new homeowners can expect to receive from the Ministry.

This is a chance for members of the Ontario public who have complaints or information relevant to this investigation to try to improve consumer protection for newly built homes by speaking up!

It will be interesting to see how effective the bite of "Ontario's Watchdog" is in getting to the bottom of so many home buyer complaints, but more importantly, what actions are taken to improve consumer protection by the Ontario government from the findings and recommendations.

The lack of proper protection for home buyers in general is well known and reported frequently throughout North America; everyone has, or knows someone who has, a horror story to tell. Do you think an investigation into the lack of buyer protection should take place in your area?

John in Port Moody, BC

Real Estate Evolved

Developer pulls out of project, again...

John Grasty (Prudential Sterling Realty) — Mon, 03 Mar 2008 01:17:20 -0600

A few years ago the Bambu development on Vancouver Island was cancelled.

When the plug was pulled on Riverbend last year, you might have thought that it would be big enough to get some real legislative changes made, especially after making national news:
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20070507/BC_homeowners_070507.

Well now the Eden Group of Companies has cancelled 3 projects; big enough again for national news coverage: http://www.cbc.ca/canada/british-columbia/story/2008/02/27/bc-condosintrouble.html.

"If a proposed development does not proceed and the purchase contract is terminated, pre-sale purchasers are entitled to have their deposit money repaid. However, unless the pre-sale contract requires interest to be paid, the purchaser may not receive interest on that deposit." http://www.hpo.bc.ca/PDF/Bulletins/Pre-Sale.pdf.

If a termination clause is necessary at all, and it shouldn't be, there needs to be a rigourous funding qualification process and standard for the developer to meet, just as is forced on the buyer with a low down-payment.

A first time home buyer (FTHB) in Canada with less than 20% down is put through a rigorous means test to qualify for a mortgage. The FTHB is then required to pay mortgage loan insurance premiums to protect the big banks (lender).

Isn't that big of government to provide such a safety net through the Canadian Bank Act to protect the big banks! Why is there no safety net to protect the general public?

If banks can get mortgage insurance protection, why can't the consumer get insurance protection for high-risk developers? Surely the interests and protection of the consumer should be first?

Do you think that builders dealing with multi-million dollar developments should also be required to:
a)       prove their ability to qualify for development financing through a rigorous means test?
b)       pay an insurance premium to protect consumers who invest in a pre-sale property?

If the banks do their due diligence surely the likelihood of builders going belly-up should be remote.

John in Port Moody, BC

Real Estate Evolved

Condo floor plans can be too good to be true: lawyer

John Grasty (Prudential Sterling Realty) — Thu, 28 Feb 2008 15:08:30 -0600

http://www.cbc.ca/canada/british-columbia/story/2008/01/10/bc-condo.html

With so many multifamily developments failing, ‘weasel word' warranties, and the legalized ‘bait & switch' tactics, such as the misrepresentation of floor space, the general business acumen and morality of builders and the home building industry leaves the consumer with little trust and an overall lack of confidence.

Relying on the developer to build what they promise is a recipe for a disaster. Doing research into the reputation of a builder is impossible and worse, can be misleading.

Government doesn't appear to believe they have an obligation to protect the people that elect them, at least when it comes to homebuyers. Yet I was certain the very essence of government was to protect the citizenry; silly me.

Without the legislative changes required from government, "let the buyer beware" prevails.

John in Port Moody, BC

Real Estate Evolved

For the Adoxographist, conjecture, inferences, suppositions, etc., can be interesting...

John Grasty (Prudential Sterling Realty) — Thu, 21 Feb 2008 18:45:55 -0600

When John Ruskin was writing, "There is nothing in the world that some man cannot make a little worse and sell a little cheaper, and he who considers price only is that man's lawful prey," is it possible that his subjects were builders and new home buyers of the day?

I ask this question based on today's demonstrated inabilities of the home building industry, and a general mistrust in their collective morality.

Since many homes built in the 1800's still stand in London today, it seems Ruskin's words were almost certainly directed at other commodities.

Ruskin also offers us the following: "Quality is never an accident; it is always the result of intelligent effort." How is it that Ruskin understanding of quality so far back was so enlightened, yet the builders today, as seen in their actual performance, are as proscriptive towards such concepts?

An extrapolated version of Ruskin's quote appeared in the June 10, 1939 NY Times, in an ad for a Madison Avenue advertising agency: "Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction, and skillful execution; it represents the wide choice of many alternatives."

Does this help us interpret why today's builders are what they are?

While ‘high intention' speaks of motive, the word ‘choice' is an indication of the behaviour.

IMHO, the dubious motives of builders today manifest predominantly as sociopathic behaviour.

Throughout North America, builders, developers (or sociopaths), or whatever you want to call them, write the rules out of greed, and with a disregard for the rights of buyers.

When Ruskin coined the word, ‘illth', as the reverse of wealth in the sense of ‘well-being' (ill-being), perhaps his views on the wealthy had been at the forefront of defining a sociopath; since then the actions of builders have just helped to clarify the meaning, IMHO

More on Illth: "Wealth, therefore, is 'The possession of the valuable by the valiant'; and in considering it as a power existing in a nation, the two elements, the value of the thing, and the valour of its possessor, must be estimated together. Whence it appears that many of the persons commonly considered wealthy, are in reality no more wealthy than the locks of their own strong boxes are, they being inherently and eternally incapable of wealth; and operating for the nation, in an economical point of view, either as pools of dead water, and eddies in a stream (which, so long as the stream flows, are useless, or serve only to drown people, but may become of importance in a state of stagnation should the stream dry); or else, as dams in a river, of which the ultimate service depends not on the dam, but the miller; or else, as mere accidental stays and impediments, acting not as wealth, but (for we ought to have a correspondent term) as 'illth,' causing various devastation and trouble around them in all directions; or lastly, act not at all, but are merely animated conditions of delay, (no use being possible of anything they have until they are dead,) in which last condition they are nevertheless often useful as delays, and 'impedimenta,' (things that impede)..." John Ruskin - from Unto This Last (1862)

John in Port Moody, BC

Real Estate Evolved

How will certifying home inspectors help consumers?

John Grasty (Prudential Sterling Realty) — Fri, 08 Feb 2008 01:01:25 -0600

The BC Ministry of Public Safety and Solicitor General is inviting you to participate in a consultation on licensing home inspectors. The consultation provides an opportunity for British Columbians to be part of the process of developing appropriate regulations to enhance consumer protection.

The move to regulate home inspectors is being met with some cynicism.

"It's good," Grasty told the Straight. "The only problem is, what teeth is it going to have? You certify these people, but how qualified are they? Can consumers sue them? If a person hires a home inspector, they have to sign documents which are full of disclaimers. What they're finding out is they can't rely on the information. There is no guarantee or warranty that that person's opinion can be relied on." http://www.straight.com/article-131213/new-rules-for-home-inspectors

In the past few months I've become aware of two troubling situations with little recourse, if any.

A single Mom in Lake Cowichan buys an older home after having it inspected. Shortly after possession she discovers a cracked heat exchanger, and the filter cartridge missing from the furnace.

A single Mom having to evacuate her almost brand new townhouse in Surrey because, despite hiring an inspector, it was later discovered the home had been used as a grow-op.

What about new homes; think about the pre-sale, pre-occupancy inspection for a minute. This is usually conducted with a builder's rep, often takes less than ½ an hour, and serves to find a finishing flaw, or noting the bulb that is burnt out.

With all of the warranty horror stories in BC, do you believe there is value in having a certified inspector with you to check out the electrical, mechanical, plumbing, etc., for a newly built home?

The Consultation Paper and Questionnaire can be viewed at: http://www.pssg.gov.bc.ca/legislation/current.htm

Please be sure to respond by February 22, 2008.

John in Port Moody, BC

Real Estate Evolved

What you should know before you agree to buy a condo

John Grasty (Prudential Sterling Realty) — Fri, 11 Jan 2008 01:53:17 -0600

This CBC Marketplace piece is a must see for any buyer considering a condo: http://www.cbc.ca/marketplace/2008/01/09/condo_crunch/

In 2001 I became distantly acquainted with Bob Aaron, a Toronto lawyer and homeowner champion. Bob says it like it is, "builders have sway, consumers don't" which just about says it all.

Builders, developers (or sociopaths) or whatever you want to call them, "write the rules for themselves", and with a disregard for the rights of buyers.

Bob started the CBC segment stating, "Consumer protection is horrible", and ex-agent, Charles Hanes, says he hasn't seen any "Condo Police".

Who is supposed to be regulating to protect the Canadian home buying public, like the auto industry is regulated? Why is this "huge marketing machine" allowed to "bait and switch"?

New home buyers are being "hung out to dry" right across Canada; here are examples:

BC: Are Homeowners' Sufficiently Protected?
ON: Tarion: Seriously flawed (2007) homeowner satisfaction survey.
NS: Residential construction industry comes under scrutiny.

CTV is also in on reporting the diabolical state of the Nation with two recent videos on Canadian home building horror stories of their own entitled From Haven to Hell.

Canada Mortgage and Housing Corporation (CMHC) needs to provide more balanced information to consumers.

Our elected officials at every level are so dependent on the political donations and favours of the building (and insurance) industry that we have little hope without a giant public outcry, and sometimes that doesn't even help.

In my opinion there is no political will to do anything that would cut off the hand that feeds them. The fact is that politicians in power don't care and they are not accountable. The leadership void in government is disgusting.

John in Port Moody, BC

Real Estate Evolved

About Leaky Condos: the truth...

John Grasty (Prudential Sterling Realty) — Tue, 08 Jan 2008 01:13:00 -0600

This is a follow up to this previous post which you might want to read as a backgrounder.

The control of rain penetration relies on the exterior layer (the wall cladding) of the building envelope assembly to resist all rain penetration. This requirement has always been a requirement of the building code no matter what the envelope detail is.

Well building envelopes didn't resist rain penetration, and this was clearly a case of widespread building code violations by the builders and the residential construction industry, and indisputably the main cause of leaky condos.

Following the collapse of the New Home Warranty as a result of so many leaky condo claims, James Hoggan & Associates were engaged by the Urban Development Institute(UDI) for an expensive, but well funded, PR campaign to deflect the blame for leaky condos.

Launching the campaign in 1999, UDI issued a press release that September stating, "UDI believes the (building) code is a major cause of the problem".

The Coalition Of Leaky Condo Owners (COLCO) challenged UDI and the residential construction industry by preparing a motion in March 2000 calling for a complete moratorium on all new residential construction until the supposed cause (the building code) was fixed.

Despite many efforts by COLCO on behalf of owners, the residential construction industry continued to build under the same building code until the British Columbia Building Code changed on December 15, 2006 [for the design and construction of building envelopes for new home construction in accordance with the introduction of Part 9 (2007 Vancouver Building By-law)].

Considering that the BC Building Code didn't change until 2006, demonstrates how successful the "building code" blame campaign really was in duping the public for the purpose of restoring confidence in the industry. In fact, many people unfortunately still don't know the truth today; that is, building code violations are the main cause of leaky condos.

John in Port Moody, BC

Real Estate Evolved

Reducing the ecological footprint in the construction of new homes...

John Grasty (Prudential Sterling Realty) — Mon, 07 Jan 2008 15:38:49 -0600

While I don't have any expertise on green building, I have some views on how greening the construction process itself might benefit British Columbians.

"Green Building" generally refers to a set of principles that are used in the design, construction and function of homes that are intended to facilitate better performance related to energy efficiency and environmental responsibility.

As the BC Government develops a "green" component to reduce the impact of buildings on the environment, the chaos at our construction sites present "greening" opportunities that require serious consideration.

New homes being built using the traditional construction process model and project management can be very unhealthy, disruptive and extremely resource intensive. Outside of this paradigm are clear opportunities for efficiencies and serious "greening" to support sustainable building practices.

I believe that increasing modular or prefabricated buildings featuring cozy, modern design, functional amenities, and real value for money, would appeal to British Columbian buyers and enable the home building industry to increase efficiencies in ways that other major industries have for years.

There is no doubt that BC has the human assets, economic capital, technological competence and natural resources for more construction prefabricating.

With continuing industry skilled labour shortages, I believe it would just make sense to look at much more off-site prefabrication. This would create more on-site construction assembly jobs that require less-skilled workers.

While the construction site is being prepared the components are simultaneously being built locally in a controlled manufacturing environment in specially equipped factories that ensure superior quality and durability, lower construction costs and waste, and shortened schedules. The wood frame would also be less exposed to wet weather.

Over twenty percent of the material used to construct a typical frame home ends up as scrap. More prefabrication diverts this useful on-site construction refuse material from landfill sites and incinerators.

In addition, I believe that more prefabrication would reduce carbon emissions, have a significant impact on our local water supply and storm-sewers, and energy demands on our power grid.

City Hall needs to develop some incentives for responsible building practices that challenge the traditional model which is broken and desperately needs overhauling. Prefabricated new homes that include more natural, non-toxic and sustainably-derived materials would probably reduce the ecological footprint dramatically. What do you think?

John in Port Moody, BC

Real Estate Evolved

He who has a thing to sell and goes and whispers in a well...

John Grasty (Prudential Sterling Realty) — Sun, 06 Jan 2008 18:54:26 -0600

"He who has a thing to sell and goes and whispers in a well is not as apt to get the dollars as he who climbs a tree and hollers." - Anon

I'm sure you'd agree that sellers and buyers want to know they're working with the most competent and professional Realtor in the area; receiving testimonials is tangible support for marketing efforts and help us substantiate our credibility.

During the Holiday Season my owner/broker received (unsolicited) this from one of my clients:

Subject: Appreciation

I just wanted to drop a quick line to recognize John and Shawn for their efforts in representing us in both buying our new home and selling the old one. I have to admit that we were no big fan of Realtors before due to a number of less than pleasant prior encounters where we were left with a feeling of lack of competence or - even worse - absence of care for our best interest in what usually is one's life long largest investment.

We were lucky enough to meet John by chance as he was showing another property. Back then, my wife and I were looking for our "dream home" for more than a year without a whole lot of success. We obviously had talked to more Realtors than we cared to remember but at the end of the day decided we would be better of looking on our own.

This all changed when we met John. We not only found him to be extremely knowledgeable in the real state market, but refreshingly caring about figuring out what we want (and not what he has and thinks we should want as was usually the case with other Realtors).

As the result of that, the next property that we were interested in we contacted John. Although that didn't work for us, John took us - on the same day - to show other houses that he thought we may like. Needless to say, we had our new home in no time.

Given the great experience of the purchase, we asked John - now teamed up with Shawn, with his can-do attitude and great personality - to represent us in selling our old house as well. We could never imagine selling a house can be made this easy!

Shawn and John researched the market thoroughly, compiled a detailed report that reflected all the facts and data that we required to set a price and launched an advertising campaign targeting what turned out to be the perfect audience for our property. All we had to do was to give them the key and go on vacation and when we came back they lined up the offers for us. It really couldn't get any better than that!

Even after the sale was completed, John and Shawn were still there to help us settle down, resolve minor issues and facilitate the communications. All along, we were delighted to see how meeting our needs - and as was demonstrated to us over and over again - not financial gains are the focus of our Realtors. In our experience and especially in today's market, this to itself is quite a rare quality.

Needless to say, due to our great experience we will highly recommend John and Shawn (which make a great team by the way) to anyone looking to buy or sell their property.

Very truly yours, Nooshin and Ben - Coquitlam, BC

John in Port Moody, BC

Real Estate Evolved