The table shows how many real estate sales there have been in Muskoka so far this year, compared to 2008 sales. Price ranges and this months sales are included to show you who is in the market for buying property.
It is interesting to see that those who have 1 million plus to spend, have bought more properties compared to 2008.
Notice that the other price-point increase has been between $260,000 - $500,000
Overall there has been a definate 'bounce-back' in the real estate market since last year. Lower mortgage rates has helped, along with consumer confidence levels being alot higher than that 12 months ago.
For a more detailed report on homes in your local area, please contact Sasha Dear via email.
Sasha Dear - salesperson
Royal LePage Lakes of Muskoka Realty - Brokerage, independently owned and operated.
Statistics courtesey of Haliburton and Muskoka Real estate Board
If you've been thinking about purchasing your first home, but haven't yet made up your mind, now is an ideal time to think about taking the plunge into homeownership.
Your first step in the home-buying process should be to talk to a licensed mortgage professional. These experts have access to a vast array of lenders - up to 90+ institutions, including big banks, credit unions and trust companies - which enables these professionals to negotiate the best possible mortgage products and rates on your behalf. In comparison, if you approach your bank with a mortgage request, they can only offer you a narrow choice - namely, their own products.
Mortgage professionals can get you pre-approved for a mortgage so that you know how much you can afford to spend on a home before you start shopping.
And thanks to the latest federal budget, there are a couple more reasons why now is the optimal time to purchase your first home.
First, the budget proposes a $5,000 increase to the RRSP Home Buyers' Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment - tax- and interest-free.
The budget also proposes a $750 tax credit for first-time homebuyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.
The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009 (ie, the closing is after that date).
An individual will be considered a first-time homebuyer if neither the individual nor the individual's spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.
If you're thinking of buying your first home, Dominion Lending Centres mortgage professionals can answer all of your mortgage-related questions.
Contact Shaun O'Flynn for more information 705-791-4685
The Bank of Canada held its benchmark overnight lending rate steady at 0.25 per cent at its setting on October 20th, 2009. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 0.5 per cent.
The Bank acknowledged that recent indicators point to the start of a global recovery, and that economic and financial developments have turned more favourable than it had previously expected. While recognizing that the Canadian economy is rebounding, it expects the recovery to be weak by historical standards.
The Bank downgraded its forecast for Canadian economic growth this year, while keeping its forecast unchanged for 2010. It also lowered its forecast for economic growth in 2011.
In its September announcement to hold interest rates steady, the Bank forecast that inflation would return to its two per cent target in the second quarter of 2011. The Bank has now moved that date out to the third quarter of 2011.
The Bank's commitment to keep interest rates on hold until the second half of next year is conditional on the outlook for inflation. Since inflation is not expected to pick up sooner than it previously expected, the Bank repeated its commitment to keep interest rates on hold. "Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target."
The Bank pointed to the rapid rise in the Canadian dollar in recent weeks as a risk to the Canadian economic recovery, saying "Heightened volatility and persistent strength in the Canadian dollar are working to slow growth and subdue inflation pressures." The Bank now expects that the domestic economy will be a greater source for economic growth, at the expense of weaker net exports.
The Bank expects the output gap to close in the third quarter of 2011, one quarter later than it had projected in July when it said production would reach capacity in mid-2011.
"The Bank threw cold water on recent speculation that it may raise interest sooner rather than later," said CREA Chief Economist Gregory Klump. "By highlighting the recent rapid rise in the Canadian dollar while intentionally failing to mention the rebound in the Canadian housing market as sources for concern, the Bank aimed to end recent speculation that it will hike rates before its repeated pledge of not doing so until at least July 2010."
As of October 20th, the advertised five-year conventional mortgage rate stood at 5.84 per cent. This is down 1.36 per cent from one year earlier, but stands 0.35 per cent above where it stood when the Bank made its previous interest rate announcement on September 10th.
Improving credit market conditions have enabled lenders to reintroduce discounts off posted mortgage interest rates. Discounts of up to a percentage point can be negotiated, depending on lender-client relationship.
In today's economic climate of tighter credit requirements and increased unemployment rates taking their toll on some Canadians, there's no doubt that many people may not fit into the traditional banks' financing boxes as easily as they may have just a year ago.
Your best solution is to consult your mortgage professional to determine whether your situation can be quickly repaired or if you face a longer road to credit recovery. Either way, there are solutions to every problem.
Mortgage professionals who are experts in the credit repair niche can help credit challenged clients improve their situations via a number of routes. And if the situation is beyond the expertise of a mortgage professional, they can help you get in touch with other professionals, including credit counsellors and bankruptcy trustees.
If you have some equity built up in your home and still have a manageable credit score, for instance, you can often refinance your mortgage and use that money to pay off high-interest credit card debt. By clearing up this debt, you are freeing up more cash flow each month.
In the current lending environment, with interest rates at an all-time low, now is an ideal time for you to refinance your mortgage and possibly save thousands of dollars per year, enabling you to pay more money per month towards the principal on your mortgage as opposed to the interest - which, in turn, can help build equity quicker.
Following are five steps you can use to help attain a speedy credit score boost:
1) Pay down credit cards. The number one way to increase your credit score is to pay down your credit cards so you're only using 30% of your limits. Revolving credit like credit cards seems to have a more significant impact on credit scores than car loans, lines of credit, and so on.
2) Limit the use of credit cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score - credit formulas don't take into account the fact that you may have paid the balance off the next month.
3) Check credit limits. If your lender is slower at reporting monthly transactions, this can have a significant impact on how other lenders may view your file. Ensure everything's up to date as old bills that have been paid can come back to haunt you.
Some financial institutions don't even report your maximum limits. As such, the credit bureau is left to only use the balance that's on hand. The problem is, if you consistently charge the same amount each month - say $1,000 to $1,500 - it may appear to the credit-scoring agencies that you're regularly maxing out your cards.
The best bet is to pay your balances down or off before your statement periods close.
4) Keep old cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable - even though you have had the cards for a long time. You should use these cards periodically and then pay them off.
5) Don't let mistakes build up. You should always dispute any mistakes or situations that may harm your score. If, for instance, a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.
If, however, you have repeatedly missed payments on your credit cards, you may not be in a situation where refinancing or quickly boosting your credit score will be possible. Depending on the severity of your situation - and the reasons behind the delinquencies, including job loss, divorce, illness, and so on - your Dominion Lending Centres mortgage professional can help you address the concerns through a variety of means and even refer you to other professionals to help get your credit situation in check.
Feel free to contact Shaun O'Flynn Mortgage Agent
Tel: 705-791-4685
or go to www.sashadear.ca and email me for more information on how I can help you become a home owner
Just an update on what's going on in the Muskokas regarding number of sales compared to last year. You will be pleasantly surprised that there has been an overall increase this year compared to 2008. The statistics are broken down into price range, so it is eay to recognize which markets are bouncing back!
Provided by The Haliburton and Muskoka Real Estate Board
The current mortgage rates will be posted on a regular basis to keep you informed. Please feel free to contact Shaun o'Flynn to see how he can help you with your mortgage needs, or contact Sasha Dear for more information.
As you can see, rates are still very good, so if you are 'on the fence' about whether or not you should buy a home, then now is still a great time. Take advantage of making low mortgage payments now!
I simply HAD to make mention of a mortgage specialist who, in my experience, goes above and beyond to satisfy Clients requirements! Not only does Shaun O'Flynn have the expertise to obtain a mortgage that you want, but he also delivers it with flair!
Definately worth getting in touch with him to see how he can fullfil YOUR mortgage or re-financing needs!
He will be supplying us with some really interesting and useful information, so make sure you subscribe to my blog, or keep checking back on a regular basis.
I asked him to introduce himself.......
RE: POTENTIAL PURCHASERS, VENDORS and REFINANCES
I would like to take this opportunity to introduce myself. My name is Shaun O'Flynn and I have been arranging Credit in Simcoe, York area, and the Muskokas since 1990.
I would like to concentrate my efforts with professionals like yourself and wish to develop working relationships with agents and owners and managers in the area.
I am a sole proprietor under permanent contract with on of the largest Mortgage networks in the country. I am always delighted in meeting my clients personally to address any of their questions and/or concerns as for most clients, the biggest purchase of their lifetime, is their home.
I recognize that you may have long-standing relationships with other Mortgage Agents and Brokers in the community who, from most accounts, are extremely successful and usually busy. Therefore, if you are looking for a change, or if your current Mortgage originators are unable to meet the demands of your clientele, I would appreciate the opportunity to extend my services.
In rural areas, many homes do not have connections to municipal water and sewer lines. Homeowners rely upon privately owned or communal (shared) wells as their drinking water source, and individual septic systems to treat and discharge their wastewater. Homeowners must ensure that their well water is safe to drink, and that their well and septic system are properly maintained. A malfunctioning well or septic system can pose a health risk to your family and neighbours, and can be expensive to repair or replace. It is therefore important to conduct a detailed inspection of both the well and septic system prior to purchasing a home. This document will describe how wells and septic systems function and how to inspect them.
Wells
When you are purchasing a home with a private water supply (a well), there are three key items to consider:
well system
water quantity
water quality
Well Systems
There are three common types of wells: dug, bored and drilled.
Dug and bored wells (60 - 120 cm/24 - 48 in. diameter) are commonly used to produce water from shallow surface aquifers (less than 15 m/50 ft. deep); and, they are prone to contamination from surface water infiltration and to water shortages. An aquifer is an underground formation of permeable rock or loose material, which can produce useful quantities of water when tapped by a well. Another type of well used in surface aquifers is a sand point well (2.5 - 5 cm/1 - 2 in. diameter), which is a pointed well screen connected to a small diameter pipe driven into water-bearing sand or gravel.
Drilled wells (10 - 20 cm/4 - 8 in. diameter) are commonly used to penetrate deeper aquifers (15 to greater than 60 m/50 to greater than 200 ft. deep), are more costly to construct, but generally provide a safer source of drinking water
Common features of well systems include:
casing - structure around the well hole, which keeps it from collapsing. It could be a steel casing, concrete rings or an open hole in bedrock.
inlet - allows water to enter the well from the bottom. There might be a screen at the inlet to prevent fine particles from entering the well and a foot-valve (check valve) to maintain system prime and pressure.
pumping system - includes pump, piping and necessary electrical connections to pump water from the well into the house, and a pressure tank to maintain constant water pressure in the house. Submersible pumps are usually used in drilled wells, while shallow wells usually use centrifugal pumps, which are located out of the well, most likely in the basement or in a pump house.
surface protection - prevents surface water and contaminants from entering the well. Includes: watertight seal placed around the casing (annular seal), well cap 0.3 - 0.4 m (12 - 16 in.) above the ground, and mounded earth around the top of the well casing to divert rainwater.
Well Inspection Checklist
The well should be inspected before the house is purchased. If there is a problem with the physical state of the well (for example, cracked seals, settled casing) contact a licensed well contractor to correct the problem. Check the Yellow PagesTM under "water well drilling and service" to find a local licensed well contractor.
Well Record - Obtain a copy of the well record from the owner or the Ministry of the Environment. This should include: location of well, date of well drilling, depth and diameter of well, static water level, pumping water level, recommended pumping rate and the recommended pump setting.
Location - (Figure 3) A well should be located at least 15 m (50 ft.) from any source of contamination if the casing is watertight to a depth of 6 m (20 ft.); otherwise, the separation distance should be at least 30 m (100 ft.). Sources of contamination include: septic systems, manure storages, fuel storages, agricultural fields (manure or fertilizer runoff), roads (salt runoff). Wells should be located at least 15 m (50 ft.) from a body of water.
Well Cap - The cap should be at least 0.3 m (12 in.) above the ground. The well cap and seal should be securely in place and watertight. A locking cap would give some added security against tampering. Well caps are on drilled wells and well covers are on dug wells. Both types should be inspected.
Well Casing - No cracks or settling of the casing should be visible. The ground should slope away from the casing.
Drainage - Surface water should drain away from the well and water should not pond around the well casing.
Well Pump - The well pump and distribution piping should be in good condition.
Grass Buffer - A permanent grass buffer of a minimum 4 m (12 ft.) width should be maintained around the well head. Fertilizers and pesticides should not be applied to the grass buffer.
Abandoned Wells - All abandoned wells on a property must be decommissioned (plugged) by a licensed well contractor. Ask the owner if there are any abandoned wells on the property and if they have been properly decommissioned.
Inside the House - Check for sand or grit in the faucet strainer which indicates a corroded well screen. Verify that the pressure tank reads between 250 to 400 kPa (40 and 60 psi). Ensure that the check valve (or foot valve) is able to sustain the system pressure by drawing no water for 30 minutes to an hour and monitoring the pressure. The pressure should not drop nor should the pump start up during this dormant period.
Water Quantity
Wells draw water from aquifers, which are zones of saturated permeable soil or rock. Some types of soil make for good aquifers, such as gravel and fractured bedrock that can support high water pumping rates, while other types of soil make for poor aquifers, such as silty sand and clay that cannot support high water pumping rates.
Wells can run dry for the following reasons:
The pumping rate is higher than the groundwater recharge rate.
The water table (level of saturated water in the soil) has dropped to below the pump suction or inlet.
The well screen has become plugged by fine sand, chemical precipitation, bacterial fouling or corrosion.
If a well vent becomes blocked, a negative pressure may occur (in the well) during draw down and reduce or stop the pump from drawing water.
If there is a water supply problem, a licensed well contractor should be consulted. Solutions may include: water conservation in the home, digging a deeper well, unplugging a fouled well screen or replacing a corroded well casing or screen. The cost of fixing the problem should be considered when negotiating the sale price for the home.
There are three sources of information to help determine if a well can produce a sufficient quantity of water:
local knowledge
well record
water recovery test
Local Knowledge: The best indication of whether there is sufficient water supply is to ask the owner, neighbours or local well drillers if there have been any problems with wells running dry on the property and in the area. Generally, shallow wells are more likely to have problems with water shortages than deep wells, as shallow wells draw water from surface aquifers, which can fluctuate greatly depending upon the amount of precipitation.
Well Record: Obtain a copy of the well record from the previous owner or the Ministry of the Environment. The pumping water level indicates if the well is shallow or deep (less than 15 m/50 ft. is considered a shallow well). The recommended pumping rate should be greater than 14 L/min (3.6 US gal/min).
Water Recovery Test: A licensed contractor can be hired to conduct a recovery test which involves pumping water out of a well and then giving it time to recharge. This can help you determine how much water you can draw from the well. A well should be able to pump 14 L/min (3.6 US gal/min) for 120 minutes or 450 L/person/day (119 US gal/person/day) (Source: MOE, Procedure D-5-5, 1996). A recovery test can cost $200 - $300 (Source: Gilles Bourgeois Well Drilling Ltd., St. Albert, ON, 2003).
Water Quantity Checklist
Ask the owner, neighbours or a local well contractor if there have been any problems with the well or area wells running dry.
Verify the depth of the well and pumping rate from the well record. A surface well is more likely to run dry in times of drought.
Have a licensed well contractor conduct a recovery test, if necessary.
Water Quality
The quality of the well water is very important. Poor water quality can lead to health problems, unpleasant taste and odour, and costly treatment systems and/or the costly use of bottled water. Well water can be contaminated with bacteria and chemicals. Common sources of contamination include infiltration from septic systems, manure runoff, pet waste, or road chemicals as well as dissolved chemicals naturally present in the groundwater such as calcium, sulphur, chloride or iron.
Water Sampling
Your offer of purchase should always include a requirement that closing is conditional upon an acceptable water quality evaluation. It would be ideal to take three water samples, about a week apart, with one of the samples taken after a rainstorm when surface water contamination is most likely. If possible, take the water samples yourself. The three samples should be analyzed for: total coliform, E. coli, and nitrate (~ $30 each time) while one of the samples should also be analyzed for: sodium, hardness, sulphate, chloride, lead, iron, manganese and pH (~ $80). Ask the laboratory to indicate the drinking water standards along with the results. Additional analyses can be conducted including: metals scan (~ $70), pesticides if the well is in an agricultural area with heavy pesticide use (~ $250), or gasoline and solvents if the well is near a gas station or industrial area (~ $70).
Contact your local public health office for instructions on where to obtain appropriate sterile sampling bottles and where to submit water samples for testing. Bacteria and nitrate are analyzed free of charge in some provinces through local public health or Ministry of Environment offices, while the additional parameters will have to be analyzed at a private analytical laboratory.
If possible, samples should be taken from a tap between the well pump and any water treatment units and/or pressure tank. Follow the directions on the sample submission form for proper water sampling procedures.
Test Results - What They Mean
If concentrations are higher than the limits described below, consult a water treatment systems supplier to determine if a water treatment technology is appropriate. It is preferable to get several quotations.
Health Indicators
Escherichia coli (E. coli) or faecal coliform: These bacteria are found only in the digestive systems of humans and animals. Their presence in your well water is usually the result of contamination by manure or human sewage from a nearby source such as a septic system or agricultural fields. Drinking water contaminated with E. coli or faecal coliform causes stomach cramps and/or diarrhoea as well as other problems and can even cause death. The drinking water standard for both E. coli and faecal coliform is 0 counts/100 ml. A value of 1 or more indicates that the water is unsafe to drink.
Total coliform: This group of bacteria is always present in manure and sewage, but is also found naturally in soil and on vegetation. The presence of these bacteria in your well water may indicate that surface water is getting into your well. A total coliform value of 1 - 5 suggests that the safety of the water is doubtful, while a value of greater than 5 indicates that the water is unsafe to drink.
Nitrate: The presence of nitrate in your well water is usually the result of residential yard or agricultural fertilizers, or seepage from septic systems. Infants less than six months old can become sick from drinking formula made with water high in nitrate (greater than 10 mg/L). If you have an infant less than six months old, it is recommended to use bottled water.
Sodium/Potassium Chloride: Individuals who are on a sodium- (salt) reduced diet should consult with their physician if the level of sodium in their well water exceeds 20 mg/L. Domestic water softeners typically use sodium chloride and this increases the level of sodium in the drinking water. Potassium chloride is an alternative to sodium chloride for softening water. However, individuals suffering from hypertension, kidney disease or congestive heart failure should consult their physician prior to using drinking water containing high levels of sodium or potassium. A separate, unsoftened water supply (by-passing the water softener) can be installed for drinking and cooking purposes if sodium or potassium is a health concern.
Sulphate: At concentrations above 500 mg/L, sulphate can have a laxative effect and give a bitter taste to the water.
Lead: Lead concentrations in water are likely due to lead piping. Concentrations as low as 0.01 mg/L could cause long-term health problems.
Aesthetic indicators
Hardness: Hardness is a measure of calcium and magnesium in water. These elements precipitate with carbonate in boilers and pots to form scale. Hardness also makes it difficult to form lather, requires more soap, and creates a soap scum. Many homeowners decide to purchase a water softener, which replaces calcium and magnesium ions with sodium or potassium ions. Hardness (as calcium carbonate) above 80 mg/L could require a water softener.
Chloride: Chloride concentrations above 250 mg/L can give a salty taste to the water and may corrode piping.
Iron and Manganese: Well water with iron concentrations above 0.3 mg/ L and manganese concentrations above 0.05 mg/L could stain plumbing fixtures and clothing; water may appear rust coloured or have black specks in it; can also cause a foul taste in the water and bacterial fouling of the well screen.
pH: pH values of less than 6.5 or greater than 8.5 may cause corrosion of piping.
Drilling a New Well
The cost of a new well depends on the depth of the well and the local market. The following table provides an example of typical well installation costs.
Component
Cost
Drilling
$65/m ($20/ft.)
Casing
$33/m ($10/ft.)
Grout, seal, cap
$400/well
Screen
$1,200/well
Table 1: Costs of Well Installation (source: Chalk Well Drilling Ltd, Napanee, ON, 2003)
Water Quality Checklist
Water sampled on three different dates - preferably a week apart - from a tap between the well pump and any water treatment units and/or pressure tank for: total coliform, E. coli and nitrate.
Water sampled once for: sodium, hardness, sulphate, chloride, lead, iron, manganese and pH.
Obtain copies of previous water quality test results from the homeowner. Ask if there have been any water quality problems: frequent stomach illness (bacteria), odours (hydrogen sulphide, methane), rust spots (iron), scale (hardness), slime growth in faucets (iron or manganese), salty taste (chloride), bitter taste (sulphate).
Review with the owner the operation and reason for any water treatment systems (water softener, disinfection system, reverse osmosis system, chlorination unit, etc.). Ask to see all treatment device operating manuals.
Sample a glass of water for taste (salty, bitter), odours (hydrogen sulphide, methane), cloudiness (small particles) and colour (a rusty colour can indicate a high iron content). Remember you will be drinking this water every day.
Look for scale on fixtures or around the faucets indicating hard water. Lift the lid and inspect the back of the toilet tank (the cistern) for sand, sediment, rust particles, scaling, biological growth and any other visual clues which may indicate water problems.
Is there a "rotten egg" smell from the hot water heater? This indicates hydrogen sulphide gas, which can corrode piping
CMHC acknowledges the contribution of the Ontario Rural Wastewater Centre, University of Guelph and Health Canada to the development of this document. For further information regarding water treatment and water quality, Contact Health Canada at water_eau@hc-sc.gc.ca or call 613-957-2991.
Welcome to the Property Ladder! There is no better investment than in home ownership.
There is a ton of useful information that you will need to know, like the steps you need to take from having the idea of wanting to buy your first home...to actually moving in!
There are also special grants available for First Time Buyers.
Did you know that the stress free way to find your first home is by allowing me to guide you through each step of the way?
I will be your own Real Estate Agent, from helping you arrange a mortgage to negotiating the best price and terms on your first home..... and my services do not cost you anything!
In real estate, there are different forms of agency relationships. Before an agency is established in writing, an agency relationship may be established by the actions of the individual parties. If it walks like a duck and talks like a duck it might be legally defined as a duck, but usually, any relationship before a signed agreement is more likely to be classed a "customer relationship." A customer relationship is generally defined as the agent owing a duty of honesty and reasonable performance, but is not under contract to perform as an agent. All agency agreements define the specific performance required of the agent, how the agent is to be compensated for that performance and the responsibilities of all parties. The different kinds of written agency that are available are:
1. Seller's Agent When a real estate company is a "seller's agent," it must do what is best for the seller of a property. A written contract, called a listing agreement, establishes seller agency. It also explains services the company will provide, establishes a fee arrangement for the Realtor's services and specifies what obligations a seller may have. A seller that enters into a non MLS Exclusive Listing Agreement has great flexibility in the terms and conditions of the contract. A seller entering into a MLS Listing Agreement has somewhat more limited flexibility being required to conform to the standardized rules and regulations of the MLS system. A seller's agent must tell the seller anything known about a buyer. For instance, if a seller's agent knows a buyer is willing to offer more for a property, that information must be shared with the seller. Confidences a seller shares with a seller's agent must be kept confidential from potential buyers and others. Although confidential information about the seller cannot be discussed, a buyer working with a seller's agent can expect fair and honest service from the seller's agent and disclosure of pertinent information about the property.
2. Buyer's Agent A real estate company acting as a "buyer's agent" must do what is best for the buyer. A written contract, called a Buyer Agency Agreement, establishes buyer agency. It explains services the company will provide, establishes a fee arrangement for the Realtor's services and specifies what obligations a buyer may have. Typically, buyers will be obliged to work exclusively with that company for a period of time. The buyer agency contract is a contract between an agent and a client and is usually based on the Ontario Real Estate Association's Buyer Agency Agreement. This contract can be modified by written agreement of both parties to their satisfaction. There are no MLS requirements for buyer contracts as there is no Buyer MLS system in place at this time. Confidences a buyer shares with the buyer's agent must be kept confidential. Although confidential information about the buyer cannot be disclosed, a seller working with a buyer's agent can expect to be treated fairly and honestly.
3. Dual Agent Occasionally a real estate company will be the agent of both the buyer and the seller. The buyer and seller must consent to this arrangement in their Listing and Buyer Agency Agreements. Under this "dual agency" arrangement, the company must do what is best for both the buyer and the seller. Since the company's loyalty is divided between the buyer and the seller who have conflicting interests, it is absolutely essential that a dual agency relationship be established in a written Agency Agreement. This agreement specifically describes the rights and duties of everyone involved and any limitations to those rights and duties. Current legislation in Ontario deems all sales representatives and associate brokers working for one brokerage company, no matter how small or large, to be the same agency. This automatically puts all buyers under contract with any representative from that company, who are interested in any of that companies' listings, in a Dual Agency situation for those listings.
Who's working for you? It is important that you understand who the Realtor is working for. For example, both the seller and the buyer may have their own agent which means they each have a Realtor who is working for them. Or, some buyers choose to contact the seller's agent directly. Under this arrangement the Realtor is working for the seller, and must do what is best for the seller, but still may provide valuable services to the buyer. If the seller and the buyer have the same agent, this is dual agency and the Realtor is working for both the seller and the buyer.
A Realtor working with a buyer may even be a "sub-agent" of the seller. Under sub-agency, both the listing agent and the co-operating agent must do what is best for the seller even though the sub-agent may provide many valuable services to the buyer. Sub agency is created when a buyer chooses not to make a contract with a buyer's agent and indicates in writing that they would prefer the agent they are dealing with to be the agent of the vendor and for them (the buyer) to have ‘customer status" only with the agent they are dealing with.
Code of Ethics Realtors believe it is important that the people they work with understand their agency relationship. That's why agency disclosure is included in a self-imposed Code of Ethics which is administered by the Real Estate Council of Ontario. The Code requires Realtors to disclose in writing the nature of the services they are providing, and encourages Realtors to obtain written acknowledgement of that disclosure. The Code also requires Realtors to enter into a written agency agreement with any sellers or buyers they are representing.
Realtors are governed by the legal concept of "agency." An agent is legally obligated to look after the best interests of the person he or she is working for. The agent must be loyal to that person. A real estate company may be your agent - if you have clearly established an agency relationship with that Realtor. But often, you may assume such an obligation exists when it does not. Realtors believe it is important that the people they work with understand when an agency relationship exists and when it does not -- and understand what it means.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Mortgage professionals can get you pre-approved for a mortgage so that you know how much you can afford to spend on a home before you start shopping.
Your best solution is to consult your mortgage professional to determine whether your situation can be quickly repaired or if you face a longer road to credit recovery. Either way, there are solutions to every problem.
The best bet is to pay your balances down or off before your statement periods close.
;)
;)
