10 Steps to Starting a Successful Business - 09/30/08 05:30 PM
10 Steps to Starting a Successful Business   By Brian Madigan LL.B.1 PeopleYou need good people. You can't do it all yourself, so you better find them now. Possibly, you will have a business partner who can share some of the workload. If not, then hire the best. Get people who know more than you know. They will make a better contribution than someone who lacks both experience and education. Don't worry, you'll still be the boss!2 SystemsThis is the time to set up proper systems. If you start running the business without any proper business systems, you'll soon be in … (0 comments)

10 Steps to Successful Business Financing - 09/30/08 12:36 PM
10 Steps to Successful Business Financing  
By Brian Madigan LL.B.1 Right LenderYou will have to find the right lender for your business. This might be yourself, family, friends, business partners, former owners or institutional lenders. Remember that you can lend money to your own business and register security by way of a chattel mortgage. This option is not simply restricted to third parties. As for institutional lenders, many will have a great deal of experience with your particular type of business. Here, you can obtain expert advice for "free" as part of the financing. Take advantage of this opportunity and … (0 comments)

10 Steps to Buying a Successful Business - 09/29/08 04:51 PM
10 Steps to Buying a Successful Business  
By Brian Madigan LL.B.1 Right BusinessYou will need to find the right business for you. This is one that you like. This is in a field where you are comfortable. You have experience and enthusiasm that you can bring to the table. If you are a chef, then buy a restaurant! 2 Growing BusinessMake sure that this business is in a field that is expanding. There are new and opening markets. There may be competition, but there is more than enough business for everyone. You don't want to buy into yesterday's business. How … (0 comments)

The Housing Crisis ~ September 2008 - 09/26/08 03:46 PM
The Housing Crisis ~ September 2008  
By Brian Madigan LL.B.You might be quite concerned about the present housing crisis. Could it happen in the GTA?The crisis in the US stock market, and world financial markets occurred because of deflation in the US housing sector. In large measure this was due to the fact that houses were built and sold to consumers who could not afford them. They were financed in no money down transactions. The more that were sold, the more that were built. Vast sections of the US, Florida in particular were overbuilt. From an economic perspective, there was … (0 comments)

September 2008 ~ First Half Performance - 09/24/08 07:16 PM
September 2008 ~ First Half Performance  By Brian Madigan LL.B.I thought that you might want to see some of the numbers for Toronto and vicinity real estate. This is simply the first half of the month. It is noteworthy because of the significant stcok market crash in every major market around the world.The numbers set out simply compare September 1 through September 15 in 2006, 2007 and 2008. You might remember that 2007 was a record breaking year. 2006 bwas far more typical.September 2008 ~ First half SalesHere is the actual volume of sales just for the first half of September … (0 comments)

Power Negotiating for Realtors - 09/24/08 01:06 PM
Power Negotiating for Realtors  By Brian Madigan LL.B.
Sometimes, too much is too much! A realtor's ability to negotiate a particular transaction is often based upon the client's bargaining position. Often, this is overlooked.Naturally, if the client is in a very strong position, then few, if any, concessions will be granted. A client in a weaker position will have to offer some concessions in order to get the deal done.The problem most commonly encountered is the failure on the part of the negotiator to realize and appreciate their own client's bargaining position.Let's assume that the client wishes to rent a small … (0 comments)

Sales By Non-Residents - 09/23/08 04:36 PM
Sales by Non-Residents  By Brian Madigan LL.B.You have to be careful if you're purchasing property from a non-resident. If you don't, you may end up paying their income tax.As part of every real estate transaction the purchaser should obtain proper evidence in the form of an affidavit that the vendor is "not a non-resident of Canada within the meaning of Section 116 of the Income Tax Act".The correct way to approach this issue is unfortunately to use the double negative, that is the person is NOT a "non-resident". There are several categories for tax purposes, including both residents and non-residents. However, … (0 comments)

Good News for GTA Real Estate - 09/20/08 11:50 AM
By Brian Madigan LL.B.Overall there does not appear to be any difference in the markets over the week. Basically, the TSX is up 1%. If you were away on vacation and had no access to the news, you would say "no big deal".So, we better look at the daily numbers-515.55 Monday-27.04 Tuesday-349.30 Wednesday+186.88 Thursday+848.42 FridayThe markets worldwide exhibited a similar pattern, some more than others. What changed? On Thursday there was a rumour than the US federal government would bailout the banking industry "bigtime", not just one bank here and there, but largely the entire industry. By Friday, came the confirmation. … (0 comments)

Finders Keepers - 09/19/08 09:06 AM
Finders Keepers
  By Brian Madigan LL.B.This isn't just a kids' expression, it's the law. But, there certainly are some rules when it comes to real estate.The current controversy involves the "finding" of cartoons penned by the late Ben Wicks. Ben was a prolific editorial cartoonist and political satirist. While he was a great creative mind and spirit, he was not good at looking after his things. After a lifetime of producing humorous cartoons in volume, he really never cleaned up after himself. He never had a moment to properly organize his life's work.So, he stored it just about everywhere, including … (2 comments)

Real Estate ~ Stock Market or Property? - 09/18/08 07:27 PM
Real Estate ~ Stock Market or Property?  By Brian Madigan LL.B.The TSX has magically plunged through the 20% drop which officially makes it a bear market.In roughly the same time period, the real estate market in the GTA is off by 8.5%. So, by all accounts there ought to be deeper discounts in the stock market.Right now, many real estate companies that are traded are available at substantial discounts to their book value. The TSX has lost 2 years of value. Interestingly enough, the same is true about the real estate market. By comparison, both are back to 2006 valuations.The wildly … (0 comments)

Flying Marble and Old Insurance Policies - 09/18/08 11:06 AM
Flying Marble and Old Insurance Policies  By Brian Madigan LL.B.It was recently discovered that it is raining marble at the single best location for real estate in Canada, the intersection of King and Bay Streets in Toronto.Canada's tallest and certainly one of its most prestigious office buildings is First Canadian Place. It is owned by Brookfield Properties and was named after its prime tenant, the Bank of Montreal.The office tower was completed in 1974 by the developer Olympia and York. At that time O&Y was one of the largest developers in the world. It held massive real estate holdings in Toronto, … (2 comments)

Fallen Trees ~ When Insurance Companies Get Religious - 09/17/08 07:23 PM
Fallen Trees ~ When Insurance Companies Get Religious  
By Brian Madigan LL.B.If a tree falls in the forest, no one cares, except perhaps the termites. But, if your neighbour's tree falls on your house, then there is a little problem.First of all, is your neighbour liable? Let's say your neighbour has a 35 foot pine tree and one day it simply blows over in the wind and damages your eaves trough. Can you recover the cost? You inspect the damage and find out that the eaves trough will cost $215.00 to repair. But, much to your surprise, it will cost … (0 comments)

Resolving Matrimonial Disputes - 09/16/08 06:58 PM
Resolving Matrimonial Disputes  
By Brian Madigan LL.B.You may wonder what this has to do with real estate? However, unresolved disputes really represent the quickest way to eliminate any equity that has accumulated in real estate acquisitions made over the years by either parties to the marriage.Oftentimes, in stressful situations, the house, cottage, or investment properties are overlooked at the outset. It is often thought that a good deal of capital appreciation has accumulated and the equity will be there to divide.Many times, this isn't the case. If real estate is the major asset, then it should be treated as such. … (2 comments)

Be Cautious if You are a Residential Landlord! - 09/15/08 08:04 AM
Be Cautious if You are a Residential Landlord!  By Brian MadiganIf you are a residential landlord or you are contemplating becoming one, you should have a look at some of the new rules.The Residential Tenancies Act came into force in January 2007. Basically, it tips the scales of justice a little further in favour of tenants and particularly professional tenants.Some of the changes are difficult to justify and one might speculate that they are motivated more by politics and perception than they are by necessity.One of the new hotly contested issues is the matter of the eviction process. Under the former … (1 comments)

Agreements "of" and "for" Sale - 09/14/08 01:31 PM
Agreements "of" and "for" Sale  Brian Madigan LL.B.There are actually two separate and distinct documents used to evidence an agreement to convey land:1) agreements of purchase and sale, and2) agreements for sale.The first category is relatively straightforward and is the common document in use. The agreement results from the acceptance of an offer and specifies the terms upon which the vendor will convey title. The closing date is typically, three or four months in the future and the funds are exchanged in return for the title to the property. Well in excess of 99% of real estate transactions are undertaken using … (0 comments)

Construction Liens - 09/13/08 01:17 PM
Construction Liens  
By Brian MadiganIf you are planning on any renovations or you are building a new home, then you need to know about the Construction Lien Act.First, there is a lien which can be registered by anyone who provides work or services or supplies materials which are used for your property. The lien has to be registered within 45 days of the last work being performed or the last supply of goods. Then, the lien has to be "perfected" within 90 days of that same date by instituting an action and registering that on title as well. Many liens … (0 comments)

GM's Gas Crisis - 09/10/08 05:53 PM
GM's Gas Crisis  By Brian Madigan LL.B.If you think GM is having a crisis because of the rising gas prices then you're wrong.GM is having a crisis due to GAS (greed, arrogance and stupidity). In fact, the "Big Three" in the North American auto industry are all suffering the same problems.Greed. This isn't simply wanting too much money. It's failing to take proper measures to reduce costs. It's failing to invest in proper new designs and infrastructure.Arrogance. This is the experience of a sense of infallibility. We are too big to fail. We have too much influence for governments to let … (2 comments)

Do the Fish go with the House? - 09/10/08 09:10 AM
Do the Fish go with the House?  By Brian Madigan LL.B.Who cares? Really, this is a more complicated question than it might appear at first blush.Let's assume you have ten 50 cent goldfish in a tank, does it really matter all that much? On the other hand, I recently came across a situation where a vendor had $15,000 worth of rather rare and exotic fish species in an outdoor pond. At least now, the answer to the rather simple question is worth $15,000.In an agreement of purchase and sale, we also have to assume that nothing was said about the fish. … (0 comments)

ORES Real Estate Index for August 2008 - 09/09/08 03:43 PM
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:123.60.....31 August 2008125.36......31 July 2008131.53..... 30 June 2008132.11......31 May 2008132.24 .... 30 April 2008127.42..... 31 March … (0 comments)

Fannie Mae and Freddie Mac Bailouts: Not in Canada - 09/08/08 09:10 PM
Fannie Mae and Freddie Mac Bailouts: Not in Canada  By Brian Madigan LL.B.Fannie Mae and Freddie Mac are government-sponsored entities.They were formed by the federal government in the United States: The Federal National Mortgage Assn. (Fannie Mae) and the Federal Home Loan Mortgage Corp. (Freddie Mac).Both companies buy mortgages from savings and loans, banks and other lenders to generate additional cash for those lenders to make more home loans. They also guarantee mortgages. Together they hold or guarantee $5.4 trillion in mortgages This represents about half of the home loans outstanding in the United States.Fannie Mae was created by President Franklin … (0 comments)

Sales off by 4% in 2008 - 09/07/08 09:13 PM
Sales off by 4% in 2008  By Brian Madigan LL.B.The volume of real estate transactions is a significant measure of the market. When there are relatively few sales, there is usually an economic recession. When the sales volumes are high, the economy is active.Here's what the Toronto Real Estate Board just reported:"Sales were down 22 per cent from the record-breaking August 2007 of 8,059 single family dwellings, but were only off nine per cent from the more typical figure of 6,976 sales recorded in August 2006."Now, you can appreciate that TREB would prefer to talk about 2006, rather than 2007, because … (0 comments)

The Toronto August 2008 Real Estate Market - 09/06/08 08:19 PM
The Toronto August 2008 Real Estate Market  
By Brian Madigan LL.B.It's difficult to judge the August real estate market performance on its own. You need to compare it to something else.So, let's have a look at the ORES Index. This index started on 1 January 2004 and made all comparisons start at base 100.As of 31 August 2008, here are some of the numbers:123.60...........the average single family house in the GTA140.62...........the average price for a downtown Toronto condo124.61...........the average price for a east condo119.94...........the average price for a west condo115.93...........the average price for all condos115.58...........the average price for a north … (0 comments)

SPIS ~ The Final Four Cases - 09/04/08 08:31 PM
SPIS ~ The Final Four Cases  By Brian Madigan LL.B.Here are some very short index points for four more cases in our review. The more recent the case, the more relevant it is. The higher the Court, the more important the decision is. The higher the decision is from an Ontario Court, the more binding (in terms of legal precedents) it is.Case.................. Morrill and BourgeoisCourt..................Superior CourtProvince............... OntarioDate....................2007Defect .................basement leakagePart of contract.......noTruthful................noFalse ....................yesMisrepresentation......yesNegligent...............noBuyer Reliance.........noLiability.................noFavours.................vendorCase..................Whaley and DennisCourt..................Superior CourtProvince............... OntarioDate....................2002Defect .................septic systemPart of contract.......noTruthful................noFalse ....................yesMisrepresentation......yesNegligent...............yesBuyer Reliance.........yesLiability.................yesFavours.................purchaserCase..................Cartwright and FournierCourt..................Provincial CourtProvince............... AlbertaDate....................2004Defect .................roof leakagePart of contract.......noTruthful................n/aFalse ....................n/aMisrepresentation......noNegligent...............noBuyer Reliance.........noLiability.................noFavours.................vendorCase..................Hunt and Eagle AutoCourt..................Small Claims CourtProvince............... OntarioDate....................2003Defect .................dishwasherPart of … (0 comments)

Toronto Market Plunges 8.5% in Four Months - 09/04/08 05:30 PM
 By Brian Madigan LL.B.What's happening in the Toronto market?Well if you want to know what the Toronto Real Estate Board is saying, then here it is;"The 2008Toronto summer market is ending on a solid pace," noted the President....... Prices increased marginally in August, with the overall average moving up one per cent to $364,886 from the $361,890 seen last August, and up eight per cent from the $338,192 recorded in August of 2006."So, that doesn't seem all so bad. But, what is really happening now? The Board just released the comparison to last year and two years ago. That information is … (0 comments)

SPIS ~ Seven More Cases - 09/02/08 03:10 PM
SPIS ~ Seven More Cases  By Brian Madigan LL.B.Here are some very short index points for seven additional cases. The more recent the case, the more relevant it is. The higher the Court, the more important the decision is. The higher the decision is from an Ontario Court, the more binding (in terms of legal precedents) it is.Case..................Riley and LangfieldCourt..................Superior CourtProvince...............OntarioDate.....................2004Defect ..................basement leakagePart of contract.........noTruthful..................noFalse ....................yesMisrepresentation......yesNegligent...............noBuyer Reliance.........noLiability.................noFavours .................vendorCase..................Alevizos and NirulaCourt..................Court of AppealProvince...............ManitobaDate.....................2003Defect ..................basement leakagePart of contract.........noTruthful..................noFalse ....................yesMisrepresentation......yesNegligent...............yes (fraudulent)Buyer Reliance.........yesLiability.................yesFavours .................purchaserCase..................Bond and RichardsonCourt..................Small Claims CourtProvince...............New BrunswickDate.....................2007Defect ..................tax deferralPart of contract.........yesTruthful..................noFalse ....................yesMisrepresentation......yesNegligent...............yesBuyer Reliance.........yesLiability.................yesFavours .................purchaserCase..................Taschereau and FullerCourt..................Court of Queen's BenchProvince...............ManitobaDate.....................2001Defect ..................basement leakagePart of contract.........noTruthful..................yesFalse … (0 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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