I have another Q & A today…

Q: Many years ago, we decided to share the expenses with our next door neighbor and drill a well. The well is on our property and our neighbors have free access to maintain their lines if necessary. Now we are thinking of selling our acreage and I wonder if we should do something about it before we sell. James B.

A: Hello James. This sounds like a good question for a lawyer. Over the years I have come across similar situations and from my perspective this looks like an issue of an unregistered easement. Your neighbor has been using part of your property for the purpose of supplying water to their property and even though you don’t have anything in writing, it is likely that the easement exists (implied easement).

My advice to anyone in this circumstance would be to inform the listing agent about this and make sure this is properly disclosed in writing to all potential buyers. However, the best thing to do would be to visit a Real Estate Lawyer for advice, because they may suggest that you register an easement on title.

Do you have a Real Estate question? Call me or email me your questions

Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408

Q: With the recent legalization of cannabis, any person can legally grow 4 cannabis plants per residence for personal use. I know that lenders have strong policies on issuing mortgages that were growing Cannabis. Have lenders updated their policies in this regards? – Peter

A: Thanks for your timely question Peter. I called Mr. Pat Pelletier from Dominion Lending Centres to help me answer this for you and here it is:

In lieu of the recent legalization of Cannabis the lenders have updated their Standard Mortgage documents to reflect their position on the issue. They have changed their Standard Mortgage to include the following. Whether it is enforceable in court is unclear, but here it starts.

“You certify that you have made reasonable investigations and inquiries and that, to the best of your knowledge, no part of your property or any land next to your property is, or has been, or will be, used to manufacture, refine, handle, treat, store, dispose of or in any other way deal with any substances, except as allowed by laws, regulations and orders, provided any growing, manufacturing, refining, handling, treating or storing of marijuana on your property is strictly prohibited whether permitted by law or otherwise.”

Pat Pelletier Dominion Lending Centres
http://patpelletier.com/

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Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408

B.C.’s finance minister has introduced legislation to move ahead with a controversial speculation tax on vacant or underutilized properties.

The bill ends months of speculation about how the province planned to use the new levy to help deal with runaway housing prices in some B.C. communities, outlining a range of tax rates from 0.5 to two per cent and a number of exemptions.

If the legislation is passed, the new tax will apply to all properties in designated regions of B.C. These include most parts of Metro Vancouver and the Capital Regional District (excluding the Gulf Islands), along with Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo and Lantzville.

Homeowners who live at their properties — or rent them out — will receive an exemption by filing an annual declaration form.

To read the full article, click the link below: https://www.cbc.ca/news/canada/british-columbia/speculation-tax-tabled-by-bc-government-1.4865185

Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408

I came across an interesting article by Kelleway Mortgage Architects…

Recently I was invited to attend an all-day financial planning seminar hosted by Custom Plan Financial located in Vancouver, BC. From a presentation by Manulife One and several conversations with financial planners, here are a few thoughts to pass along.

1) In Canada, 50-60% of mortgage borrowers automatically sign a renewal with their current lender after their mortgage term expires (e.g., most commonly 5 years after the original funding date).

2) As a mortgage broker, I have heard many times from borrowers that the rates their current lender (e.g., big bank or credit union) were offering at renewal were 0.5% to 0.75% higher than mortgage rates currently available elsewhere.

3) Even after negotiating with their current lender at renewal, borrowers often received a mortgage rate higher than a new customer would receive from that same lender at that same time.

In addition, some borrowers discover that their current advanceable mortgage (which allows them to easily borrow money from their home equity) has a collateral charge attached. A collateral mortgage cannot be transferred to another lender – even at the end of your mortgage agreement – without the help of a real estate lawyer to break your agreement, thus incurring legal costs. Also, on paper, the collateral charge can make it look like you have more debt than you do as the lender can register your mortgage for up to 300% of the value of your home. In effect, there may be no “equity room” left for another lender to offer you a second mortgage secured by your property.

Read the full article here: https://goo.gl/Xf7Sfq

Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408

Q: My son wants to buy a condo and we were told it is an Assignment of Contract. Could you tell us what that means, if it is legal, and what we should be aware of? Doreen

A: Hello Doreen,

With the changing market, assignments of purchase contracts are starting to pop up. Currently there are 29 in Abbotsford Click Here to View Listings and only 4 in Chilliwack.

In most cases these are new properties that buyers secured a contract for, during the pre-sale phase of marketing (1 or 2 years ago) and now they want to sell the contract as the possession dates are getting closer.

What’s an assignment? A contract assignment occurs when a buyer transfers their contract to buy a property to someone else before the completion date. The buyer can transfer the contract for any price, even for a higher price than they paid for the property.

Are they legal? Yes. Real estate contracts are assignable under the law unless the contract expressly forbids it. Make sure that the contract stipulates that.

What to be aware off? Since this is a very complex transaction, there are many things to be aware of and I highly recommend that you talk to a real estate professional and lawyer prior to committing to anything.

Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408

The season of windy and rainy weather has begun; be pro-active with house preparations.

Gutters have an important function: they direct water off the roof and away from the home. But gutters are only effective when they’re clear — and Mother Nature ensures those occasions are rare.

Clogged gutters can send water pouring over the sides to pool around the foundation. This causes cracks and damage to the foundation, resulting in wet basements, mold growth and expensive repairs.

Water from clogged gutters also can damage fascia boards, which could lead to interior wall and ceiling damage. And water that spills over gutters can land on flower beds, small trees or shrubs that surround the home’s base.

In addition to landscape damage, standing water can create a breeding ground for mosquitoes and other insects. This is why it’s important to protect your gutters.

What can you do? Of course, the regular maintenance of your gutters is necessary. Besides that, you could invest into products that would prevent the leaves and small branches from getting into your gutters. For example, here is something I saw recently, and I like it. The cost is very low compared to other systems. https://www.gutterbrush.com/

Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408

Owning a home is one of the cornerstones of a solid financial plan. However, making mortgage payments for 20 to 30 years can take a huge bite out of your budget, even with low interest rates. Yet it’s surprisingly easy to reduce your amortization – and the amount of interest you’ll pay. When you’re mortgage free, a big part of your budget will become available to help achieve your other financial goals.

Here are three ways to become mortgage-free faster:

1. Make a lump sum payment. A lump sum payment, or prepayment, reduces your outstanding principal. The sooner you can make a prepayment, the less interest you’ll pay over the long term. Your mortgage agreement specifies the maximum amount you can prepay each year and how often (usually once per calendar year) without penalty. Coming up with a large lump sum – up to $75,000 on a $300,000 mortgage – is next to impossible for most people. But even a small sum – from a bonus or tax refund, for instance – can reduce your overall interest amount.

2. Increase the amount of your payments. Most mortgage lenders allow you increase your payment, but there may be a fee if you change it again during the calendar year. This option is easier than coming up with a large lump sum.

3. Make more frequent payments. Financial institutions offer a number of payment options. The standard ones are: monthly, semi-monthly, bi-weekly and weekly. Many people match the frequency to their pay periods for ease in budgeting. If you decide to make more frequent payments, inquire about an accelerated option. Accelerated weekly and bi-weekly payments can save you thousands in interest charges because you’ll make the equivalent of one extra monthly payment each year. There is very little extra savings if you just switch to a more frequent payment without taking the “accelerated” option.

You can save thousands in interest by paying off your mortgage as fast as your budget allows. Choose any one, all, or a combination of the prepayment options available to you. Contact your mortgage lender for your payment options and any penalties or fees you may be required to pay.

Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408

When selling your home the outcome of the home inspection can make or break the deal. The home inspection fully informs your prospective buyer about the state of your property and makes them aware of any issues they may inherit upon purchase. Here’s a look at three potential inspection outcomes and what each one means to you as a seller.

All Clear After a detailed inspection of all the key parts of your property, the inspector may give you a clean bill of health. This is the best case scenario because this means that your roof, foundation, and electrical are all in good shape. As well as no damage from water leaks were found. This means that the sale can proceed as planned. The original offer that you accepted on your home stands. This is the quickest route to your closing deal. If your home is newer or well taken care of, you can hopefully expect this result. You’ll get the best price for your home.

Request for Repairs In some cases, the inspector’s report comes back with some minor to moderate issues which may affect the sale. For example, a hot water heater may have a leak or there may be cracks in your drywall due to settling. In this scenario, the buyer returns to you with the inspection report and asks that you make the necessary repairs before the deal proceeds. At this point, you have the option to walk away from the buyer; but it’s not usually advised that you do so unless there are other issues at hand. Typically, sellers will simply proceed with whatever work needs to be done, as noted on the inspection report, so the sale can move forward.

Price Negotiations If the issues revealed by the inspection are severe or there are numerous, the buyer may want to negotiate on price rather than have you completed the repairs. In this case, they acknowledge that they will have to shoulder the burden and cost of the work – so as compensation, they may ask you to reduce the sale price of the home. Again, you can walk away at this point if buyers are being unreasonable. However, if you feel the request is fair, you can negotiate an agreeable price reduction. This can be a wise choice if the updates needed require custom design choices like new appliances or flooring. Now that you know what to expect, you can head into your home inspection feeling confident and prepared for any outcome! If you are unsure what the inspection may come back you are able to have a pre-sale inspection done on your property prior to listing your home. This will ensure you will get the best price for your property.

Article by Mr. Home Inspector Ltd.
Toll Free: 1-877-837-3603
Email: [email protected]

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Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408

The latest property transfer data from the B.C. Ministry of Finance, released at the end of July, indicates that foreign buyers have all but disappeared from the Lower Mainland.

The numbers show that just 1% of all real estate transactions in Metro Vancouver and the Fraser Valley Regional District during the first six months of this year involved foreign nationals, down from 3% in the same period a year ago.

Burnaby, Coquitlam and Richmond were the top destinations for foreigners buying property in the first half of 2018, with 3% of transactions in Burnaby and 2% in each of the other two municipalities involving foreign nationals. The sole municipality to see an increase in the proportion of foreign nationals making purchases was the city of North Vancouver, where foreign buyers were involved in 1% of deals in the first six months of 2018.

Those concerned about foreign nationals purchasing agricultural properties will be reassured to know that foreign buyers of Lower Mainland rural properties have fallen from 14% of the total in the first six months of 2017 to zilch in the first half of this year.

To read the full article click here.

Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408

Prices of recreational properties surged during in June 2018 from the same month a year before. The median house price for the said properties (which include waterfront, non-waterfront, water access and ski-in properties) increased by an annualised 13% last month.

“Compared to 2017, when only 55 per cent of regions surveyed had retirees driving the market, this year’s 91 per cent are having a much bigger impact,” said Christopher Alexander, executive vice president and regional director, RE/MAX INTEGRA Ontario-Atlantic Canada Region.

“Combined with the fact that Canada’s senior population is the largest it has ever been, and many of these retirees are using recreational properties as retirement properties, pricing has increased across the majority of markets,” he added.

In particular, British Columbia saw an increase of 19%, with the median price more than doubling in areas like Tofino. The firm said the increase was propelled by a lack of inventory. Meanwhile, Sun Peaks, one of Canada’s largest ski areas, saw an increase of 34%, due to its available services and schooling attracting retirees as well as families.

However, the median price increase was not across the board as the Prairies saw a 4% lower figure from a year before. Changes in mortgage rules and an economic slowdown are factors that contributed to the decrease, the firm said.

The economic slowdown in the Prairies, combined with stricter mortgage qualifications, has affected demand in its recreational market. On the other hand, B.C.’s economy is the fastest growing in the country and its status as a destination market has contributed to the strong growth of its recreational market.

Ontario saw an overall price increase of 15%, with the median price in areas like Haliburton’s waterfront properties almost doubling. Atlantic Canada saw a very modest median price increase of 0.13% amid slow economic growth. Those still recovering from the 2017 market downturn in places like Newfoundland and Labrador are delaying purchases of recreational properties at the moment.

Article link: https://goo.gl/vhgE6L

Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408