Documents for the Purchaser - 06/29/08 10:02 PM
Documents for the Purchaser  
By Brian Madigan LL.B.If you have just sold your house, what should you be leaving for the purchaser?Title DocumentsI am assuming that you have already delivered copies of these documents to your lawyer. However, in cleaning up, it's possible that you might have extra copies of the title deed, statutory declarations, survey, committee of adjustment application and so on.Building PlansAlthough not quite title documents, plans for the building drawn up by an architect, or even the copies of the model home from the builder may have some value to the new owner. This might also include … (0 comments)

FINTRAC ~ Identification of Individuals - 06/29/08 05:38 PM
Fintrac ~ Identification of Individuals  By Brian Madigan LL.B.As a real estate agent you are under new legal obligations to collect and maintain certain records with regard to real estate transactions.These obligations arise under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This is federal legislation and has provided for the establishment of the Financial Transactions and Reports Analysis Centre of Canada, known commonly as "FINTRAC". It is noteworthy that breaches under this legislation may be subject to penalties under the Criminal Code of Canada.It is important to realize that the definitions that are set forth in the Real … (0 comments)

Origins and Definition of Common Law - 06/27/08 03:36 PM
Origins and Definition of Common Law  By Brian Madigan LL.B.Frequently, people will ask "what is common law". And, just as frequently someone will provide a simple definition, but somewhat different than the one you heard before. So, let's have a look at the term "common law" in its various contexts.Common Law is basically a description of our legal system. The term is used with a slightly different meaning depending upon the question being asked. It is fair to say that Ontario has a common law legal system.Historically, its origins were in feudal England. The Magna Carta (1215) an agreement between the … (0 comments)

Air Rights - 06/26/08 03:42 PM
Air Rights  
By Brian Madigan LL.B.There are "air rights" and then again there are "air rights", and of course they are two completely different things.So, let's deal with the two concepts:1) common law air rights, and2) zoning air rights.Common Law Air RightsActually, these are probably the types of rights that would easily come to mind. They involve your rights as a property owner to use, have, or restrict the use of the air that is above your property. It is easy to understand your property rights at surface level, but what happens when you go higher and higher?There would appear … (0 comments)

15 Reasons to Buy Title Insurance - 06/26/08 07:58 AM
15 Reasons to Buy Title Insurance  By Brian Madigan LL.B.I thought that I would give you 15 good reasons to buy title insurance. Actually, there are more than fifteen, but if these fifteen are not enough, then you're just not going to be convinced.Until 1997, the common practice in Ontario was to secure an opinion on title from a solicitor. If something went wrong, then you simply sued the lawyer. Now, that's easier said than done! Title insurance has now come to the rescue. Certain identified risks are covered under a policy of insurance. The coverage is much broader than the … (0 comments)

Consumer Reporting Act ~ Ontario - 06/25/08 08:15 AM
Consumer Reporting Act  By Brian Madigan LL.B.The Consumer Reporting Act is designed to afford a certain level of protection to consumers. So, the Act defines consumers and does not apply to businesses.There are requirements with respect to disclosure to consumers relating to credit information and personal information.There are essentially three circumstances in which a consumer must be notified:1) an extension of credit,2) personal information, or3) information used to the detriment of the consumer.In other circumstances, disclosure is not required.What is meant by personal information? First, credit information itself is simply factual information concerning an individual's payment history. Under the Act, there … (0 comments)

Debt Service Ratios - 06/24/08 04:09 PM
Debt Service Ratios  
By Brian Madigan LL.B.Before you can buy property, you will need to qualify for a mortgage. There are, of course, exceptions: you could win the money in a lottery, receive it from an inheritance or have it loaned to you by a friend (when I say friend, I really mean parents, nobody has friends like this).However, if you are like most people, then you will have to qualify for a mortgage. This means having a good credit rating and having a good income.When it comes to income a financial institution (like a Bank) will have some internal … (1 comments)

Five Financial Reasons for owning a Home - 06/24/08 12:25 PM
The 5 Financial Reasons for Owning a Home  
By Brian Madigan LL.B.So, you think that you would like to buy some real estate! In particular, you would like to buy a house.Let's summarize the principal financial advantages:1) use of rental income2) use of leverage3) forced savings4) appreciation in value5) tax free capital gainUse of Rental IncomeLet's face it, you have to live somewhere. So, you will probably start out renting something. Here, you're just paying off someone else's mortgage. In the long run, they own the property, and you have nothing, but you paid for it. So, it makes sense … (0 comments)

Agents: New Rules for Compliance with FINTRAC - 06/23/08 08:17 PM
Agents: New Rules For Compliance with FINTRAC  
By Brian Madigan LL.B.Effective 23 June 2008, real estate agents must be aware that there is an obligation to comply with the provisions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. This Act is federal legislation and it is administered throughout the country by FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada).So, who are they looking for? Actually, they are looking for both terrorists and money launderers. The method of enforcement is: not to allow them to hide among everyone else. The result is that everyone gives up … (0 comments)

False and Misleading Statements ~ Agents - 06/23/08 11:06 AM
False and Misleading Statements ~ Agents By Brian Madigan LL.B.We are all aware that sales agents like to pump their products, merchandise and services. That has been going on for years and the public who be naïve to think that there is never any “puffery” involved. However, there are times when it simply goes too far!The Consumer Protection Act offers somewhat of a solution to this problem. The former Business Practices Act has been transferred to the CPA.There are two types of representations that are prohibited under the Act:1) false, misleading or deceptive statements, and2) unconscionable statements.First of all, the Act … (0 comments)

June 2008: the first half statistics - 06/22/08 03:22 PM
June 2008: the first half statistics  By Brian Madigan LL.B.For those keeping an eye on the market, the June numbers seem to confirm the trend. The prices have levelled off, and the market is showing signs of decline. Once it was HOT and now it's NOT.Why would I say this? First, the height of the market in terms of prices occurred in April of this year, the end of May and mid June numbers are lower. Second, the volume of sales are off by 14% across the GTA. Third, new listings are up by 17%.So, this means more sellers, fewer buyers … (0 comments)

Install Hardwood Floors - 06/22/08 12:14 PM
Install Hardwood Floors  
By Brian Madigan LL.B.The interesting thing about hardwood floors is that it is one of the few improvements that you can make to your house where the resale value may exceed the actual cost of the improvement.There are all kinds of other improvements including renovations and additions to kitchens and bathrooms that simply add a percentage of their cost. Hardwood floors are exceptional in this regard. The return can easily amount to 150% to 200% or even more.They can bring rooms together and create an expensive look of quality at the same time. Today, this is one … (2 comments)

Front Yard Landscaping - 06/21/08 09:22 PM
Front Yard Landscaping  
By Brian Madigan LL.B.Where is your front yard? Sometimes, this can be a problem. You want to landscape, but you are not quite sure where to put the brick lamppost and the blue spruce.There are a few things to consider. First of all, the municipal road is 66 feet in width. The paved portion of the road is about 22 feet in width, and to make matters worse, it's not always in the middle of the 66 foot road allowance.In most subdivisions, you will find a boulevard and frequently a sidewalk adjacent to the paved portion of … (0 comments)

Money Grows on Trees! - 06/21/08 09:02 AM
Money Grows on Trees!  
By Brian Madigan LL.B.If I were to tell you that I have an investment for you that will provide you with a tax free return of over 1,000 per cent, you'd think that I was crazy.However, this opportunity is available to many homeowners. What is the best improvement that you can make to your house? The one that will provide you with the greatest return?Now, just about everyone is going to say "kitchens and bathrooms". But in most instances, they only return about 70 to 80 per cent of their original value. So, what kind of … (0 comments)

Fix Up the Basement - 06/20/08 09:05 PM
Fix Up the Basement!  By Brian Madigan LL.B.Let's assume that you have decided to sell your house, but you have never finished the basement.In the case of a two-storey house, one third of the potential living space is in the basement and for a bungalow it's half. That's a lot of space and if you can convince a buyer to pay for it, then you can substantially improve your selling price.The problem is that you don't want to spend more money fixing up the basement than you're going add to the selling price. So, let's keep the renovations to a bare … (1 comments)

Allodial Title as explained by Thomas Jefferson - 06/19/08 09:32 PM
Allodial Title as explained by Thomas Jefferson  
By Brian Madigan LL.B.Just what is it and where does it come from? In English common law, the concept seems to have lost its meaning. Not too many people seem to know what it means, just legal scholars and historians have an interest in the subject.Today, there are really two different definitions of the term, and it depends upon whether you are discussing public or private property.In respect to public property, the concept has ancient origins actually predating the common law and the feudal system in the Middle Ages.Property which was occupied and … (10 comments)

Ignore the Landlord at your Own Risk - 06/19/08 04:19 PM
Ignore the Landlord at your Own Risk  
By Brian Madigan LL.B.From time to time, tenants will wish to take advantage of the favourable lease rates under a long term lease.For one reason or another, the property is no longer suitable for them to continue to occupy the premises. So, they decide to sublet. Only one little problem: they forget to notify the landlord. And, the reason is quite simple, the landlord would probably say "no".After a 15 year initial term, and a 5 year renewal, the landlord is anxious to see the lease come to an end so that he … (0 comments)

Thinking of Living Common Law? - 06/19/08 11:30 AM
Thinking of Living Common Law?  
By Brian Madigan LL.B.Often, couples living common law will mistakenly believe that they have equal ownership of the family home. This is not the case. They will only have equal ownership if they are on title, have signed a cohabitation agreement that includes this provision, or a Court makes this determination. Upon a breakdown of this arrangement a spouse will only be entitled to support, not a division of the property.The Family Law Act provides a non-titled spouse with an "equal right of possession" of a matrimonial home. This is the home or homes that … (0 comments)

Conditions and Escape Clauses - 06/18/08 08:57 PM
Conditions and Escape Clauses  
By Brian Madigan LL.B.There is always a great deal of confusion and discussion concerning conditions and escape clauses contained in agreements relating to real estate. But, it is really rather straightforward and the documentation depends upon how the escape clause was written in the first place.There are really just two categories:1) pending deals (which require confirmation), and2) confirmed deals (which include an escape).Pending deals are generally described by a condition precedent clause, and confirmed deals with a provision for escape are evidenced by the condition subsequent clause. The condition precedent clause begins with the words "this … (0 comments)

Gas Shortage and Cottage Prices - 06/17/08 07:56 PM
Gas Shortage and Cottage Prices  
By Brian Madigan LL.B.What is that going to mean for real estate?As this is published thousands of motorists in the GTA line up for gas. They are the lucky ones, others just stay home. They likely passed several stations that had closed because they ran dry.Briefly, there was a fire at Esso's Nanticoke Refinery. CN Rail employees went on strike further complicating deliveries. Gas prices have risen 7% in the week and 17% in the last two weeks.What is that going to mean for real estate?In the very short term, probably nothing. It's just a … (0 comments)

How Would You Like a Free Cottage in Muskoka? - 06/17/08 12:17 PM
How Would You Like a Free Cottgae in Muskoka?   By Brian Madigan LL.B.This may not be as far-fetched as it seems! Well, of course there's a catch, but you don't have to buy a lottery ticket.All you have to do is pay your bills on-time.Let's consider the case of Bob, the general contractor. He pays his bills just shortly after they are due. He's a pretty busy guy getting up at 5:45 am and to the jobsite before 7:00 am. Most evenings he's out of the house doing estimates, and when he's home, he's mostly on the phone lining up … (0 comments)

Legal Non_Conforming Use - 06/15/08 09:49 PM
Legal Non-Conforming Use  
By Brian Madigan LL.B.This is an issue under the zoning by-laws. It is important to note that all zoning by-laws are forward looking. They speak to the future and not the past. They regulate future uses of a property not existing ones. They are prospective not retrospective in nature. They are not retroactive.So, if you have a present use which is legal, then it may continue forever. But, that entitlement applies to that property and that property alone, no others. If a new zoning by-law is enacted, it will apply only to other properties which do not … (0 comments)

Turning Coffee and Donuts into Real Estate - 06/15/08 11:35 AM
Turning Coffee and Donuts into Real Estate  
By Brian Madigan LL.B.David Bach popularized the expression "your latte factor" in his book The Automatic Millionaire.His point was that anyone could find some extra money in their day to day living expenditures if they wished to do so. Some expenditures are indeed a little extravagant. They can be cut out, and the savings realized can be invested. Over time the savings together with accumulated interest will grow into a substantial sum.So let's take the case of Don and Marilyn a young married couple who live in an apartment in Toronto and are … (0 comments)

ORES Real Estate Index for May 2008 - 06/14/08 10:05 AM
ORES Real Estate Index for May 2008  
By Brian Madigan LL.B.I set up the ORES Real Estate Index last year. In many ways it is like the CPI (consumer price index) in the sense that it is designed to track values over a period of time.The Index commenced 1 January 2004. All related prices were converted to 100, so everything to be compared would have a common starting point.Single Family Housing in the GTAWhen you are looking at house prices for single family homes in the GTA, you will find the following:132.11......31 May 2008132.24 .... 30 April 2008127.42..... 31 March … (2 comments)

Bad Areas are Easy to Spot! - 06/13/08 12:52 PM
Bad Areas are Easy to Spot!  
By Brian Madigan LL.B.This will be an area where the buildings are old and in disrepair. Generally, you don't want to live there. Poor quality buildings, neglected and not well-maintained line the streets. Its architectural charm is lost or hidden by aluminum siding, sheet metal or has simply fallen off. The lawns and landscaping are also neglected. Inside, the homes are often divided to house more than one family. The area becomes congested and intensified with a heavy demand upon the local infrastructure.The commercial establishments are non-competitive with the retailers in other areas.There are … (0 comments)

How to Pick a Good Area! - 06/11/08 09:32 PM
How to Pick a Good Area!  
By Brian Madigan LL.B.This is a common question posed by homebuyers. How do you know a good area and how do you find one?The answer is actually fairly simple. Of course, it depends upon what you are looking for and also what you can afford. But, let's assume you have several neighbourhoods to choose from, in your price range.The Ten Year RuleThe proper test questions all relate to the 10 year rule:1) what was the area like 10 years ago,2) what is the area like now, and3) what will the area be like 10 … (0 comments)

Related Parties under REBBA 2002 - 06/09/08 06:37 PM
Are You Related to Cousin Vinny?  
Related Parties under REBBABy Brian Madigan LL.B.Are you related to cousin Vinny? Well, you were until 31 March 2006 and now you're not. That's the "correct" real estate answer!Who are you related to? That seems to be a simple enough question.However, the entire matter of who is a "related party" under REBBA 2002 is somewhat confusing.So, let me give you the simple scheme: · Lineal Descendants are included
· Lineal Ascendants are included
· Collaterals are included only to the first degree (brothers and sisters)
If that didn't make a whole lot of sense, … (0 comments)

Oklahoma Offers and Mortgage Fraud - 06/06/08 06:54 AM
Oklahoma Offers and Mortgage Fraud  
By Brian Madigan LL.B.What is an Oklahoma Offer!Actually, it's a simple form of real estate fraud. There are variations depending upon how many parties are involved and who is the intended victim.So, let's look at two examples, in the first the victim is the vendor and in the second, the mortgage company is the intended victim.Vendor as VictimIn this case, the purchaser and his agent seek to defraud the vendor.An Oklahoma Offer may be defined briefly as any Offer whereby the vendor takes back a mortgage that is unsecured by the value of the property.Let's … (0 comments)

The Rogue Home Inspector - 06/05/08 07:16 AM
The Rogue Home Inspector  
By Brian Madigan LL.B.Most Home Inspectors are quite legitimate. They are professionals who take their business seriously and conduct their business affairs in accordance with sound ethical practices.Then, there are the rogue inspectors! Who are they? These people are "hired guns", they are "rogues" in the sense that there reports are "for sale". They act for purchasers and it is their role to find something wrong with the property. Anything! It doesn't really matter all that much. But, they will total up the potential repair bills and provide ammunition to a purchaser.Let me first deal with … (0 comments)

The May Numbers Tell the Story! - 06/04/08 03:47 PM
The May Numbers Tell the Story!  
By Brian Madigan LL.B.Traditionally, May has been the highpoint of the real estate Spring cycle. However, this year, it was April. The April average value for a single family home in the GTA was $398,687 and in May it dropped to $398,148. Now, that's only a $539 decline, hardly measurable by any standards, yet the expectation was another significant increase. So, in that regard the results are clearly a disappointment. The next matter to consider is the volume of transactions. Compared to last May, 2008 was off just a bit. May 2007 showed 11,146 … (0 comments)

Unfair Business Practices - 06/02/08 07:41 PM
Unfair Business Practices  
By Brian Madigan LL.B.The Business Practices Act was a very good piece of legislation, but not too many people knew about it, so last year the Ontario Government replaced it with the Consumer Protection Act.When it comes to real estate there are some important provisions. While the conveyance of real estate is exempt from the Act, advertising, the conveyance of chattels and agreements with realtors are all affected.No one is allowed to engage in an "unfair practice" with a consumer, and specifically it is an unfair practice for a person to make a false, misleading or deceptive … (1 comments)

 
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Brian Madigan LL.B.

Toronto, ON

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RE/MAX West Realty Inc., Brokerage (Toronto)

Address: Toronto, Mississauga, Oakville, Brampton, Caledon, Thornhill, Greater Toronto Area, http://www.iSourceRealEstate.com

Office Phone: (416) 745-2300

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