Giving power of attorney to friend : A cautionary real estate tale

Here’s an example of what can happen.

In 2006, Gary Shular inherited ...]]>

Giving power of attorney to friend : A cautionary real estate tale

Here’s an example of what can happen.

In 2006, Gary Shular inherited his mother’s home on Jacobs Ave., in St. Catharines. Shular had a history of mental illness and suffered bouts of depression and lived in the house for two years with his partner. After they split up, Shular moved to an apartment on Parliament St. in Toronto and the St. Catharines property was neglected.

In Toronto, he renewed his acquaintance with an old friend, Michelle Ferraton, whom he’d known for years. She suggested that she and her common law spouse could help him fix the St. Catharines property and sell it. In exchange, she wanted half the sale price. Shular agreed and signed a sales agreement prepared by Ferraton to give her half the money.

A court later heard that Ferraton put $2,115 into the property and then convinced Shular to give her a power of attorney so that she could list and sell it. In 2008, she signed an agreement to sell it for $156,000. Shular still had to sign the closing papers. After deducting fees and expenses, Shular received $140,000. Ferraton expected to get $70,000.

Shular had a change of heart and refused to pay the $70,000, but did give Ferraton $2,115, plus $20,000 for helping him out.

Ferraton sued for the remainder. At trial in November 2012, Shular’s ex-partner testified that Shular had a history of mental illness. He also told the court Shular was vulnerable to exploitation. Shular confirmed to the court that he was very depressed in the summer of 2008.

Ferraton confirmed in court she knew Shular’s vulnerabilities which was why she had helped him with financial matters when he couldn’t earn a living or take care of himself.

By the time of the trial, Shular was on welfare, and he told court all the money from the property sale was gone.

In a decision of the Ontario Superior Court of Justice dated November 26, 2012, Judge J. Wilson decided that the contract was unconscionable and unenforceable. He said an agreement giving Ferraton 50 per cent of the sale was unfair and since she was not a real estate agent, she could not be paid for services related to selling the house. Since Shular had insisted at the trial that Ferraton be paid for her help, he upheld the total payment of $22,115.

Here is what the judge said:

“Ms. Ferraton was well aware of Mr. Shular’s emotional frailties and history, and took advantage of his passivity and listless attitude towards the property during a period of deep depression. What appears to have begun as an act of friendship, matured into a plan to profit from the situation and to take advantage of Mr. Shular’s emotional state and apathy.”

Do not give out a power of attorney or sign any other legal document over any of your property without first obtaining legal or other professional advice. There may not be enough time to get to court to fix it later.

By: Mark Weisleder Real Estate

How smoking at home reduces property values

The survey was sponsored by Pfizer Canada and besides the obvious damage by staining walls and carpets, it can ...]]>

How smoking at home reduces property values

The survey was sponsored by Pfizer Canada and besides the obvious damage by staining walls and carpets, it can leave a smell that is very hard to eliminate.

I remember having a client close a deal and noticed a smell of smoke when they entered the home on closing. I asked why they didn’t notice the smell when they originally toured the home and they said fans were on with electric air fresheners plugged into the walls. That apparently masked the smell that day.

It makes sense that a home with a smoky smell or strong odour will be harder to sell as it will deter most buyers.

Landlords are permitted to include no smoking clauses in their leases. But they can only evict a tenant who smokes if they can prove the smoking has damaged the unit or is bothering the other tenants.

Here’s a case in point. In December, 2006 John Davidson rented a furnished condominium on Scollard St., in Toronto where the lease contained a no-smoking clause. The owner, Chris Cebula, noticed the smell of smoke in the apartment almost immediately, but Davidson refused to stop smoking. The landlord put the condo unit up for sale but his agent said the smell of smoke was hurting his ability to sell it.

The landlord submitted estimates to the board to eradicate the smell of smoke from the apartment. Including staining and painting all the walls, replacing and/or upholstering the furniture, box spring and mattress, linens, drapes and carpets the cost amounted to $8,900. The landlord also claimed an extra one month’s damage of $2,052, since it would take one month to do the renovations.

In a decision dated February 25, 2008, Landlord and Tenant Board adjudicator Egya Sangmuah found that Davidson’s smoking did damage the unit and awarded full damages to Cebula.

The Non-Smoker’s Rights Association published their own study demonstrating that the average costs for a landlord to clean an apartment is two to three times greater when it was occupied by a heavy smoker. They also quote statistics from Canadian Fire Marshals demonstrating that cigarettes, lighters and matches remain one of the top causes of residential fires.

Similar statistics are found with resale cars where the prior owner was a heavy smoker and it is difficult to remove the smell from the upholstery.

Smoke or pet odours, such as cat urine, can cause headaches when trying to sell a home. There are solutions and companies that can solve these issues.

Restoration companies such as Winmar Disaster Restoration, Medallion Healthy Homes of Canada and Biosense Environmental offer solutions that can assist with these problems. The process involved is using concentrated ozone gas to get into all areas of the home, including the walls, to assist in cleaning out the smell, even when the home was occupied previously by heavy smokers.

There are, of course, household products such as vinegar that you can use for minor problem odours or an over-the-counter product such as Nature’s Miracle, to remove pet odours.

Buyers, be suspicious if you notice the fans going or electric air fresheners whenever visiting a home for the first time.

Sellers, don’t try to cover up or hide odour issues that you know about. Get rid of any foul odour before putting your home for sale, to maximize your return.

By: Mark WeislederReal Estate, Published on Sun May 19 2013

Travel : Golf Getaways

These eleven hotels put guests virtually within putting distance of some truly spectacular courses, and the post-play accommodations are the clinchers.

Beachcomber Dinarobin Hotel Golf & Spa, Mauritius

If you’re going to hit your ball ...]]>

Travel : Golf Getaways

These eleven hotels put guests virtually within putting distance of some truly spectacular courses, and the post-play accommodations are the clinchers.

Beachcomber Dinarobin Hotel Golf & Spa, Mauritius

If you’re going to hit your ball into a sand trap, it might as well be the soft white sand of a secluded palm-shaded beach on a tiny tropical island in the Indian Ocean.

The 18-hole course at Beachcomber Dinarobin is called Paradis, a name that could just as easily apply to the all-suite, colonial-style resort.

Isle of Eriska, Scotland

What would our list be without an entry from the game’s birthplace? It’s more about long views than long drives at Isle of Eriska’s 9-hole course, that and the love of the game. Fortunately if you finish early, you’ll find yourself in a sixteen-room hotel that looks more like a castle, with plenty of comfy nooks for settling in with a snifter of single malt, another proud local tradition in these parts.

Argentario Resort Golf & Spa, Tuscany

Imagine a golf resort on the Tuscan coast and a visually arresting, environmentally friendly design hotel may not be the first thing to come to mind — but that’s just what you’ve got in Argentario, whose rooms face a course that follows the contours of the coastal hills.

The Address Montgomerie Dubai, Dubai

In addition to the Colin Montgomerie championship course that gives the hotel its name, this twenty-one-room boutique surrounded by lakes, gardens and links has a floodlit par-3 for off-hours practice, plus a full complement of training and coaching facilities. And this being Dubai, the small-scale hotel is long on luxury.

Kauri Cliffs, New Zealand

Set on a cliff overlooking the Pacific and flanked by four thousand acres of rolling farmland at the northern edge of the North Island, Kauri Cliffs and its stunning David Harman–designed course feel like they’re at the end of the earth. With guest cottages lining the edge of the course (and facing the Pacific), a game is always close at hand.

Lighting Tips

The hours we have to view outdoor amenities ...]]>

Lighting Tips

The hours we have to view outdoor amenities and landscaping is when it is dark. As William Locklin, a pioneer in low-voltage lighting puts it, “Lighting the natural visual elements of landscaping and architecture at night dramatically enhances and extends the optimum viewing hours of property”

Night lighting overcomes an objection to investing in landscaping — lack of time to enjoy it. Nightscaping, as Locklin calls both the field and his company, is as important to the landscape contractor who installs it on his projects as to the person enjoying the end result. And, because the power source is low-voltage electricity, additional licensing and permits are usually unnecessary.

Like irrigation, another closely-linked specialty of landscape construction and maintenance, low-voltage lighting requires a core of knowledge. An understanding of electrical resistance, transformers, types and location of light fixtures, waterproof connections, and light intensity is required to successfully design and install low-voltage lighting systems. Once you acquire this knowledge, the extent to which you work with licensed electricians is no greater than that of locating and supplying power to irrigation controllers.

Backyard Design

One tremendous advantage of low-voltage lighting is its flexibility. As landscapes mature, low-voltage fixtures can be relocated or adjusted without a great deal of trouble. Whether fixtures are placed on walls, suspended from trees, buried in the soil, or staked in the open, they must be located with both maintenance and light effect in mind. Access to the fixtures for cleaning, adjustment and lamp replacement is critical. If exposed to traffic and landscape maintenance equipment, the fixture should be durable and protected from tampering.

The skilled lighting designer uses a number of effects to achieve a dramatic result. Professional installations usually include a combination of effects and fixtures. Among them are:

Accenting – This technique directs beams of light to highlight particular elements of the landscape, such as a prized ornamental shrub or statue.

Downlighting – As simple as illuminating a path or walkway with low fixtures, or as complex as a floodlight mounted on a pole, building or tree, this technique lights a larger area than accenting.

Uplighting – More dramatic and the reverse of downlighting. Fixtures on the surface or well lights shine upward to highlight leaves, bark, or statues.

Silhouetting – Lights located behind and beneath a landscape feature to show the general shape or silhouette without revealing details.

Shadowing – Lights located in front and beneath a landscape feature to throw a shadow on a wall, fence or building behind the feature.

Moonlighting – A type of downlighting using soft diffused light from fixtures located in a tree or pole to resemble the glow of the moon through the plant canopy.

Grazing – This technique shines light on surfaces to reveal interesting textures, such as brick, rough wood or tree bark.

The purpose of lighting is frequently safety as well as maximizing a landscape investment. The two goals can work together to help you sell low-voltage lighting systems. For a small additional expense, you can turn your customer?s safety system into an effective landscape system. Illumination of paths, steps and walls for safety purposes can and should be balanced with the techniques listed previously to disguise the practical safety aspects of the system. Such measures might also lower or control liability insurance costs for your customers.

Power Source

The heart of a low-voltage system is the transformer that converts 110-120 line voltage to a safer 12 volts. Transformers are available in a range of sizes, generally from 100 to 600 watts. Picking the right size of transformer for a project entails adding up the wattages of all the fixtures. The sum of these fixture wattages is called the total nominal wattage. You also need to consider the power lost to the resistance of the wire based on its gauge and length. Connections are important because poor ones will sap the voltage of the transformer.

An analogy is irrigation. Each sprinkler (fixture) has an application rate (wattage). The size of the pipe (gauge) restricts the amount of water (wattage) available to the sprinklers (lamps). If too many heads (fixtures) are in a zone, the application rate (wattage) will be below design specifications and the coverage will be poor. Extremely long lengths of pipe (wire) also result in a loss of pressure because of the friction (resistance) of the inside pipe wall (wire) to the water flow (electricity). Leaks also reduce the performance of an irrigation (lighting) system.

Plan for future expansion when selecting a transformer. However, do not install a transformer that exceeds the total nominal wattage of the fixtures by more than a third. Excessive wattage can shorten the life of the lamps in the fixtures. If the transformer is too small for the TNW of the lamps, there is a good chance it will overheat and trip circuit breakers. The light(s) furthest down the wire will also be noticeably dimmer than the others.

If a customer intends to significantly expand his low-voltage lighting system in a second phase of work, you might want to recommend a two-circuit transformer. Use one circuit for the first phase and save the second circuit for the next phase.

Experienced low-voltage lighting installers will place the transformer in the middle of a chain of lights rather than on one end. Cable can also be looped to begin and end at the transformer. Pros typically avoid straight cable runs more than 100 feet long and looped runs over 150 to 200 feet. Twelve gauge double wire is standard, however 10-gauge and 8-gauge cable is handy where cable runs or fixture numbers might present resistance problems.

Low-voltage cable can be buried directly in the soil without conduit. It should be deep enough to avoid damage from traffic or maintenance equipment. Conduit or PVC pipe is recommended where surface disturbance is likely or under pavement where additional cable lines might need to be installed in the future. Waterproof connectors are strongly advised for buried cable.

Controllers

A controller can be as simple as a wall switch regulating a socket or as complex as a motion or light detector. Remote control is also available on some controllers. You might consider the possibility of hooking a lighting system into a central home or office security system.

Many controllers are a combination of a transformer and a clock timer. The customer might want the system to come on at dusk and shut off at midnight. He may also want it to come on before dawn and turn off at daybreak. You could use a light sensor to turn the system on and off. The customer is the one who will operate the system, so select controllers that are easy to understand and are accessible. Part of a professional lighting installation job is mounting the controller and/or transformer so it isn?t an eyesore and won?t be subject to vandalism or tampering.

Types of Fixtures

There are four major considerations with fixtures. The first is does the fixture provide the type of lighting effect you planned for in the design? Secondly, what type of lamp does the fixture have? Also, is the design of the fixture suitable to the customer and does it blend into the design of the landscape? Finally, is the fixture durable and relatively tamperproof?

In most cases, you will be installing a variety of fixtures on the same site. They should be compatible from both appearance and power consumption standpoints. An assortment of well-chosen fixtures is more effective than a large number of one or two types of fixtures.

Make a list of priorities for the installation, and match the fixtures to these priorities. Go through catalogs and contact a distributor who specializes in low-voltage lighting fixtures. Evaluate the fixtures you will recommend before you present the customer with your plan. Show the customer sample fixtures and photographs of the lighting effect from the them at night.

Some contractors have small light systems to give customers demonstrations. All these costs must be recouped in the price of the system.
Generally, a fixture will be able to operate a range of lamps, depending upon the capacity of the system, the intensity of light desired, and the type of lamp used. Low-voltage systems use incandescent and halogen lamps. Both of these types of lamps generate large amounts of heat. Keep this in mind when locating fixtures. Avoid placing them in areas where leaf debris collects or near sensitive plants. There is a difference in the appearance of plants when they are illuminated with incandescent lamps or halogen lamps. It depends upon the effect sought by you and your customer.

Lamp life varies considerably based on conditions and power supply. When operated at the manufacturer’s rated wattage, bulbs should last 1,000 hours or more. Lamp life is shortened when wattage is above the rated level. Halogen lamps can last longer than incandescent under ideal conditions.

Maintenance

An annual spring lighting system checkup is recommended. Wait for the plants to leaf out so you can evaluate whether adjustments in direction and location are needed. If you maintain the system, consider changing out all similar lamps after one or two have burned out. You don?t want to run to the job every time a lamp burns out. Information on how long the lamps burn each night is helpful in planning replacement.

Use the maintenance call to promote system expansion, controller upgrades (like light sensors), and highlighting a few dramatic landscape features. Leave behind a brochure that shows model night landscapes, extras like step lights and moonlighting, and related landscape elements, such as water features and outdoor furniture. It’s all part of landscaping. Night lighting can be a profitable added income stream.

First-time homebuyers influenced by commute

Of course, finding a home in a safe neighbourhood is still the top concern, ranking as the first priority for 62 per cent of first-time buyers surveyed, just below the 63 per cent national average among buyers ...]]>

First-time homebuyers influenced by commute

Of course, finding a home in a safe neighbourhood is still the top concern, ranking as the first priority for 62 per cent of first-time buyers surveyed, just below the 63 per cent national average among buyers overall.

But the No. 2 priority for first-time buyers — which has helped fuel the boom of downtown cores and condos in Toronto and other major cities across the country over the last decade — is being near transit, according the BMO survey.

Some 28 per cent of first-time buyers say being near subway or bus lines is a major driving force in their buying decisions, significantly more than the national average of 19 per cent among all other buyers, the report shows.

They’re also not keen to waste a lot of time just getting to and from work, with some 34 per cent of first-time buyers looking for short commutes, compared to the national average of 28 per cent.

That emerging trend has been playing out in Toronto over the last five years in particular, helping to fuel the explosion of highrise condos and the development of burgeoning neighbourhoods like Liberty Village, and also driving up prices and fuelling bidding wars for houses in coveted neighbourhoods within an easy commute of the core.

Being near family and friends, it turns out, is far less important for first-time buyers, with just 20 per cent expressing that as a priority, compared to the national average of 25 per cent.

Not surprisingly, a significant number of those childless young professionals looking to buy their first home are looking to be close to the action, with 28 per cent keen to find a place close to restaurants and stores (compared to the national average of 23 per cent) and just 30 per cent set on being on a quite street, compared to the 43 per cent of other buyers surveyed.

By: Susan Pigg

Travel : Top 5 Spring Break Destinations

What is Mortgage Default Insurance?

If you have a down payment which equals 20% or more of the price of your home, you will qualify for a conventional mortgage and mortgage insurance will not be necessary. ...]]>

What is Mortgage Default Insurance?

If you have a down payment which equals 20% or more of the price of your home, you will qualify for a conventional mortgage and mortgage insurance will not be necessary.

If you have a down payment that is less than 20% of the price of your home, you will need to take a high-ratio mortgage as well as mortgage default insurance.

Mortgage default insurance provides the lender with the flexibility to offer you the same competitive interest rates available to homebuyers with a larger down payment.

It’s insurance, which guarantees the mortgage by protecting the lender should the homeowner be unable to continue their payments for some unforeseen reason.

Mortgage insurance premiums are paid once, but can also be added to the principal of the mortgage.

Travel : Argos in Cappadocia

What Renovation Will Increase Home Value

Budgets play a big part in a renovation and I see too many ...]]>

What Renovation Will Increase Home Value

Budgets play a big part in a renovation and I see too many “all-in” renovations…

In other words, homeowners blow their entire budget on one room and neglect the rest of the home. At “for sale” time this can leave a bad taste in a purchaser’s mouth, mainly due to the renovation of the one room having dated the rest of the home even more so.

Unless you have an unlimited budget, here are some helpful do’s and don’ts that should assist you when coming to the renovation decision.

1. Never…ever…proceed with a cosmetic renovation when there are structural or plumbing/electrical issues with the home. I know these aren’t sexy fixes but they should always be a priority when doing renovations. Let’s face it, there is nothing worse than redoing your master en suite and then having a roof failure and water damage to the ceiling etc. I’m sure you have heard of the expression “good bones”…make sure you start any renovation with a solid foundation/structure.




2. The biggest mistake I see in renovations are the disconnects, an example being granite counter tops installed on 40 year old bathroom cabinets. You may consider this an upgrade but to a potential buyer they see this as putting “lipstick on a pig”. If you are trying to sell the bathroom as updated, good luck, no buyer will pay for poor renovations, especially when they have to be completely redone.




3. On a limited budget? Be smart! – consistent renovations are by far the best bang for your buck. In other words, do some mild updating in all of the rooms. You would be surprised how fresh a home looks with new paint, light fixtures/switches and modern baseboards. In most cases, for the average size home this will cost under 10K but it will most certainly add value when it comes time to re-sell.




4. Changing a traditional floor plan of a home and creating a more functional one is great for resale. Tearing a wall out can create that “open concept layout” one desires and it doesn’t have to be expensive.




5. Timeless design – when renovating, choose styles and fixtures that will remain current, what you like may not be appealing to the masses.




6. The kitchen is always the most expensive room in the house to renovate, so proceed cautiously! It can make or break the resale of the home so choose your layout, design and fixtures with care and hiring a designer for input, wouldn’t be the worst decision one could make.

So remember to always have a plan before starting a renovation. There is nothing worse than a half finished kitchen and no money left in the budget to finish it!

By: Philip DuMoulin

 

Canada Housing Market : Drawing the Big Money Crowd

Sotheby’s International Realty is seeing a surge in demand from wealthy Syrians, Egyptians and Europeans looking for a safe and relatively stable place to park their millions — Canada’s softening real estate market.

There has been an uptick in “very significant transactions” ...]]>

Canada Housing Market : Drawing the Big Money Crowd

Sotheby’s International Realty is seeing a surge in demand from wealthy Syrians, Egyptians and Europeans looking for a safe and relatively stable place to park their millions — Canada’s softening real estate market.

There has been an uptick in “very significant transactions” in tony areas like Oakville and North Toronto by Europeans, many with young families who originally had planned to settle in the U.S. but fell in love with Canada instead, says Sotheby’s Canada CEO Ross McCredie.

At the same time, Montreal’s exclusive Westmount area has become top of the real estate wish list for high-net worth Syrians and Egyptians looking for a safe haven for their money and families, he added.

Increasingly, many of these deals — especially those over $10 millionthose over $10 million — aren’t even showing up in MLS sales tallies because of buyers seeking the privacy afforded by private or exclusive deals, or finalized under the cloak of a corporate purchase, McCredie noted.

“The lack of inventory is a big problem in the high-end market,” so agents are having to find their own properties rather than look to the MLS system, said Andy Taylor of Sotheby’s Toronto office, which has done more international business in the last 18 months than in the last six years.

“What we are seeing is very wealthy high-net worth individuals who see the Canadian real estate market as undervalued in their world, in terms of what else they are looking at and what else they own,” added McCredie.

“They see this as a stable country. They love our currency. And they see cities that have changed dramatically in the last 20 years and are much more appealing to an international buyer.”

In a bid to better understand who is buying, why and where, the high-end realty company — which just launched into the Canadian market eight years ago — undertook a survey of its top agents in over a dozen key cities and produced what it calls its first Top Tier Trends Report.

While there has been a softening in demand for homes over $2 million, especially in Vancouver and Toronto, since housing sales began their double-digit slump last summer, Canada remains firmly fixed on the radar for the growing number of millionaires and billionaires from Shanghai to Sydney, notes the report released Thursday.

Wealthy Canadians, of course, remain the dominant players in this niche market, but in Toronto, Vancouver and Montreal they’ve been facing more competition, particularly in the last five years, from would-be Chinese, Russian, British and American buyers, it says.

Sotheby’s has seen heightened interest from Europeans, largely in Toronto real estate, since the euro crisis, says McCredie, adding that about 25 per cent of its luxury sales in the Toronto area are to foreigners from the U.S., China, Russia, the Middle East and India.

Its percentage of foreign buyers is closer to 40 per cent in Vancouver and 50 per cent in Montreal, notes the report, according to Sotheby’s agents surveyed for the study.

Most are looking for iconic, spacious homes with very high-end finishes, but others are willing to pay what it takes just to get a great location — even if it means pumping millions more into the place in renovations, said McCredie.

Just six weeks ago, Sotheby’s recorded a record $4 million sale — the highest price ever paid for a semi-detached house in Toronto.

The 4,000-square-foot semi is in Yorkville. The buyer was local, but 30 per cent of those looking at the well-appointed home were international buyers, said Taylor.