The Ontario Home Builders' Association welcomed the announcement by the Harper government to provide tax incentives to Canadians performing home renovation projects. However OHBA President Frank Giannone cautions homeowners to do their homework before they hire a renovator.

"Too often, homeowners leap into agreements with unprofessional renovators without knowing anything about the company or quality of work they perform," says Giannone. "Homeowners need to interview professional renovators and make informed decisions before they jump into anything too quickly." OHBA Renovators' Council Chair Michael Martin, of Michael J. Martin Luxury Renovations in Ottawa, recommends the following tips when hiring a renovator:

o Ask for the company's history: how long have they been in business; how many projects do they do a year; what types of projects they specialize in.

o Ask for and check references. It's one thing to ask for a list of references, but if you don't follow through and ask the reference's experience with the contractor, you are taking a big leap of faith that they will be right for you. Find out from the reference if you can visit their home to see the work that was done.

o Make sure the level of quality of the renovator is up to your expectations and ask about their warranty.

o Check to see if the renovator is a member of a professional organization like your local Home Builders' Association and, if applicable in your area, Renomark. Visit www.renomark.ca for more information on this professional designation program.

o Do not hire a contractor for cash or without a contract. Long gone are the days when you can seal a deal with a handshake. Protect yourself and your investment with an agreement on paper stating what work is to be done; an agreed upon completion date; and an amount; and be sure to have two signatures and a witness. A contract does not have to be a fancy document drafted by lawyers to be an effective means of protection.

o Beware of the door-to-door salesman offering to replace your windows or roof. This is one of the oldest scams running and, unfortunately, these characters tend to prey on seniors or those most vulnerable.

o Keep receipts or any paperwork associated with your renovation. You may be required to produce documentation to obtain your tax credit,

o Most renovations require a building permit. Don't cheap out. When in doubt, check with your local municipality. Building permits also come with inspections from your local municipal building inspector. If you are not comfortable inspecting your own renovation, you may want to consider hiring a certified home inspector to assist you. Adds Martin, "There has never been a better time to renovate your home. Interest rates are at an all-time low and now, with the federal government's announcement for tax credits for eligible home renovations, you can finally get going on that project you've been putting off."

There is a time-honoured custom to handshake deals. But, as they say, the devil is in the details, and there is nothing civil about the breakdown of an informal agreement - particularly when it comes to purchasing custom-built homes. Some of the most complex and contentious files Tarion tries to resolve are those where the buyer and the builder fail to sign a proper purchase agreement.

There is a mantra that I often repeat: Never buy a home without signing a purchase agreement that has been thoroughly reviewed by a qualified lawyer. That is the only way you will understand what you are getting, how much it is going to cost you upon closing and when you can take possession of your new home. If you're purchasing a model home or condo, the purchase agreement is usually fairly standard. Just ensure that all extras or substitutions are clearly written down. But if, for example, you own a piece of land and want to contract with a builder for a custom-built home, you need to pay particular attention. Depending on how you and your builder spell out the details of the agreement, you could contract yourself right out of warranty protection. How is this possible? Under the Ontario New Home Warranties Plan Act, a builder is essentially defined as a person who performs all the work and supplies all the materials necessary to build and complete a home.

This is the case whether he builds the home to then sell himself or builds it under contract for someone else to live in or sell. The difference with respect to the Act is that if the builder moves into the home, no matter for how long, there is no warranty coverage. Coverage only applies when a new home is sold directly to a new owner. Those are the parameters within which Tarion operates. How does this apply to our custom-built home scenario? If you are handy and wish to take responsibility for completing such essential elements as exterior cladding , the foundation, the plumbing, heating or electrical work, under the Act this could define you as the "builder" and void your access to warranty coverage. Supplying your own finishing work or high-end upgrades may also impact warranty coverage. Who ordered the building permit? Who managed the tradespeople? You or your builder? The answers to these questions may make a difference to how your home is defined under the Act.

The only way to be sure you have warranty protection in these cases is to make a detailed list of each of your responsibilities, write them into a purchase agreement and have a lawyer review it. And make sure your lawyer reviews it with an eye to the definition of "builder" under the Ontario New Home Warranties Plan Act. As mentioned, in Tarion's experience, there are no homeowner/builder issues that result in more disagreement than those where there was no contract or purchase agreement at the outset. If issues arise and the relationship breaks down, handshake agreements and word-of-mouth promises do not amount to anything. If you would like to talk to someone about what constitutes a builder under the Act or what we would consider to be "essential elements," please do not hesitate to contact us at 1-877-9TARION. To learn more about your new-home warranty in general, visit our website at www.tarion.com.

The Canadian Standards Association (CSA) has just released its latest update to the Canadian Electrical Code, with a number of changes to the requirements for new homes. The Code serves as the basis for electrical regulations in this country but are reviewed and adopted independently by provincial and territorial governments. It is updated every three years. Most notably, the 21st edition of the Code contains requirements for all new homes to have child-proof electrical outlets by means of tamper-resistant receptacles designed to reduce the possibility of inserting fingers or other items, like pins, keys and nails, into the plugs.

The CSA cites a study by the Canadian Hospitals Injury Reporting and Prevention Program (CHIRPP) on electrical injuries in children, which logged 365 children treated in emergency rooms for electrical injuries due to placing a conductive object or finger in an electrical outlet (over a six-year period). Of those injured, 37% needed medical follow-up treatment and 11% required admission to a hospital. There was one reported fatality. Furthermore, two-thirds of all electrical injuries were sustained by children five years of age or under, and 74% of all electrical injuries took place in the child's own home.

The recession hit home where Canadians live last month as a massive 129,000 workers joined the ranks of the unemployed and the country's jobless rate surged to 7.2%. It was the worst monthly employment drop in at least three decades, topping figures seen in either of the two previous recessions in the 1980s and 1990s.

Interest rates are low, property prices haved dropped big time. You would think that buyers would be lined up to buy property. With the above information posted by The Canadian Press it is not hard to see why the real estate market is flat. JOB SECURITY...there is none. What I can't figure out is why investors who have all kinds of money to invest would not be buying up everthing in site.

Despite the reports of economic doom and gloom, it is life as usual for many Canadian homeowners, according to the latest TD Canada Trust Homeowner Confidence Poll. In fact, of those Canadians who had renovation plans, more than half say they are moving forward as planned or doing even more renovations. Further, 92% of homeowners surveyed said that the current state of the economy has not forced them to consider selling their home.

"if you add a little to a little, and do this often, soon that little will become Great"

Home Inspections

Inspections are designed to help you understand the overall condition of a property, potentially saving you considerable time with the purchase process and hundreds or thousands of dollars in repairs. One of the inspections which may be required or recommended by your real estate professional are:

Standard Home Inspection - The areas which may be covered include lot and grounds, roofs, exterior surfaces, garage/carport, structure, attic, basement, crawl space, electrical, heating and air conditioning systems, plumbing, fireplace/wood burning devices, and appliance condition. Remember that your inspection rights are clearly stated in the Contract For Sale and vary from jurisdiction to jurisdiction. In some cases homes can be sold "as-is" even though an inspection may take place.

Real Estate Agencies

It is important that you know the differences between a professional who represents a seller (the "traditional" role of a sales associate), a professional who represents a buyer, and one who represents both. In most areas, real estate professionals are now legally obliged to disclose, in writing, information on the various types of real estate agency relationships that exist. You should assume the real estate professional is working for the seller unless otherwise stated.

Seller's Agent - A real estate professional becomes a Seller's Agent by entering into a listing agreement to represent the seller's interests. Seller representation may also be created when a real estate professional shows a property on the Multiple Listing Service and "buyer agency" has not been created. The Seller's Agent can provide information to assist the buyer, but they must place the interests of the seller first. A buyer should not disclose anything to the Seller's Agent they do not want the seller to know.

Buyer's Agent - A real estate professional becomes the Buyer's Agent by entering into an agreement to represent the buyer. A Buyer's Agent can assist the seller, but does not represent the seller. The Buyer's Agent must place the interests of the buyer first. A seller should not tell the Buyer's Agent anything they would not want the buyer to know, because the Buyer's Agent must disclose any pertinent information to the buyer.

Dual Agent - Dual agency occurs when a real estate professional represents both the seller and the buyer. It can also occur when the Listing or Seller's Agent works for the same real estate firm as the Buyer's Agent. In most states, the buyer, the seller, and the Agent must agree in writing for the creation of dual agency. The Dual Agent is required to treat the buyer and seller honestly and impartially. In dual agency, the professional's duties are more limited and there is potential for conflict of interest. You may hear the terms "transaction broker" and "intermediary" in association with dual agency.