Want to Build Your Dream Home?

“There are thousands of builders in Canada, ranging from small companies building a few houses a year to large builder-developers constructing thousands of homes annually. Whether you live in a large urban area or a smaller community, you will have a number of builders to choose from. Each company may offer a different selection of homes. Some may focus on specific market segments or neighbourhoods. Others may specialize in particular types of homes or have certain distinctive expertise, such as adult lifestyle design or energy efficiency. And every company does business in its own unique way.” ¹

Wow, so in all this mess, how do you find a good custom home builder?

1) The List. Develop a list of builders (10ish). Talk to family, friends, neighbours, and coworkers etc. Also talk with people with homes being built –just knock on a couple doors. If you’ve hired an architect, or sold your home with a realtor, they should be able to recommend someone; most professionals have a network of industry associates, but keep that in mind that the quality of the network mirrors that professional’s quality. It’s also a great idea to talk to some subcontractors and ask them how they feel about working with the general contractors. Contact the local and Canadian Home Builder’s Association, the new home warranty provider(s) in your province, and homebuilders in British Columbia and Quebec must be licensed, so you can find lists here too. Try going to home shows to see who has and is the latest and greatest. One word of caution, look for builders operating under the same company name for a long time. Steer clear of firms that incorporate under different names and entities.

2) Research. Using your list, research the builders online. Sites like the Better Business Bureau, or forum-type review sites, like New Homes Review, are great. Check out the builder’s record with local home building organizations, contractor associations or your province’s licensing board.

3) Initial Interview. Using your newly shortened list, call each potential builder and do a phone interview. Describe your project and ask the builder if they would be interested and able to do it. There are a lot of questions so ask him or her up front if they have time. If they are in a rush, your questions won’t be answered well. Here are some questions you should ask: ²

Click here to see a sample Interview Questions Sheet

4) Reference Check. Make sure you check into the references without the builder present. When you do, ask about any hiccups or problems, and the builder’s response. Was the builder cooperative, even-tempered and helpful? Did he listen to what you wanted or did just do it his own way? What happened when you wanted to make a change? What were his good points and bad points?

It’s also a good idea to find other homes the company has built and check them out. Try to find a good range, some older, and some newer. Go and talk with the owners and ask the same questions. Also look at the house — exterior for sure and interior if they let you. Especially with the older ones, see how they are holding up: Are there cracks in the concrete or in the brick? Are there stains coming down from any metal items or white chalky stains on the brickwork? Does it already look like a fixer-upper after only 4 years? If so, this may happen to you and your unbuilt baby. Oh and remember to bring a camera with you – a picture is worth a thousand forgotten words!

5) Site Check. Ask if you can visit some of the builders’ construction sites. Look at how the job site is maintained; a neat site shows organization. If you are allowed in, test the builder’s work: listen for sounds carrying through walls, see if the doors and windows are installed properly, check the baseboards and trims to make sure there are no visible seams or gaps, jump up and down on the floors to see if they are stable and solid, pull out drawers or doors to make sure they work smoothly, check that the insulation is plentiful and well installed etc. If you don’t know much about construction, bring someone who does!

6) The Proposal. Narrow your list to 4 builders, then invite them to the site (make sure you bring them to the site because once they see it, they may be able to identify site-specific issues or costs) and provide them with your construction papers and any other ideas. Share all of your ideas up front, don’t wait until the last minute because they could change the cost or even go beyond the ability of the builder. The proposal has to include at the very least: costs, staffing, alternatives, a schedule and potential problems they can foresee. Also, make sure the proposals cover the same items, you can’t compare apples to oranges! Also ask the builder to include the PST/HST in the quote.

7) Evaluation. Go through the proposals, your architect can help if you have one, and find the builder that most fits your needs, price range and personality. Never assume though, that the most expensive builder is the best or vise versa. Price quotes depend on a lot of different factors, such as builder’s schedule, efficiency, overhead and distance from the job.

8 ) Secondary Interviews. Conduct your post bid interviews. This involves asking each builder all the smaller questions. For example, what possible pit falls they see in your project, how do site visits work, what is the tentative schedule, and all the other questions you need to ask (and there will be lots)

9) YAY! You should now be in a position to select the right builder for you!

10) The Contract. Spell out every little detail together with your builder and you are ready to start! The contract has to include: A) The payment schedule (and make SURE you make all your payments right on time!) B) A clear start and end date, and insist on a penalty or late fee if completion is delayed past a given grace period (notwithstanding situations outside the builder’s control) and C) A clear rule about dealing with changes to the plans and cost overruns (i.e. make sure you have to ok a cost overrun. Finally, include a clause allowing you to hold a percentage of the price in escrow until all disputes have been solved; this gives the builder incentive to solve problems quickly.

**Small End Note. “Sometimes builders will come with the land that you buy. Builders often buy a group of lots within a new development, then they sell the lot with the stipulation that they will be the company to build the home. If you are in this situation, where you like the lot but you don’t know the builder, you better find out about the builder before you buy the land. If the builder turns out to be bad, you’d better look for a different piece of land.”

15 Mins Can Save You 15% or More on Home Insurance

Quick Fixes

There are lots of things you can add or take away to lower your insurance premiums that involve little or no construction work, so yes all you tool-challenged people out there, this is for you! There are some “improvements” that you should consider standard in your house, insurance or not, include smoke and carbon monoxide detectors, fire extinguishers and deadbolts on all doors. These can not only save you money on your insurance, but could actually save your life! Another of these improvements you should implement to protect yourself along with your wallet is to have your fireplace, flues, and chimney cleaned regularly, which prevents many home fires. A burglar alarm is another great option; find the coverage that is right for you, whether that involves monitoring from a central station, a direct line to the local police station, or floodlights and video cameras.

A bit less obvious is the type of pet you have, for example fish often do much less damage than pit bulls can. Also, many insurance companies offer discounts to non-smokers because of the more than 23,000 residential accidental fires per year started from lit cigarettes.

Construction Gurus

These options are a bit more challenging construction-wise, and are most useful when buying or building a house. The most basic thing to look at is where is the house located. If it is in an area with high crime rates or natural disasters, your premiums will automatically be higher. Also, if you are not near a fire station, or a fire hydrant, you will also be charged more. On the same topic, some companies will lower your premiums if you have a professional instead of volunteer fire department.

Next, look at what your house is made of. For example, typically, wood-framed structures (because they are highly flammable) will cost more to insure. Conversely, cement or steel-framed structures will cost less because it is less likely to succumb to fire or adverse weather conditions.

Now we can start moving into the specifics, like the age of your electrical, heating and plumbing systems. Newer systems (less than 10 years old) will most likely reduce the risk of fire and water damage, and will thus lower your premiums. Looking in your backyard can alsohelp to lower your premiums. Trampolines, pools and any other toys can drive costs up by 10% or more! Try adding netting to a trampoline, or a lockable fence around a swimming pool. Also try ditching the diving board, where most injuries occur. Finally adding storm shutters or reinforcing the roof or earthquake retrofitting can help in high-risk areas.

Land Theft?

People often assume that they need to insure your house for the amount they bought it for, but that is fortunately not the case. If the house burned to the ground, you would still have the land it was built on.  For this reason your house and everything in it needs to be insured, but the land doesn’t.

Deductible

Like any other insurance, the higher the deductible, the lower the premiums. Also, keeping your premiums higher ensures that you don’t call on your insurance when you don’t really need it, which is important because calling in home insurance for a $500 problem could add up to 85% in surcharges for years after, so you are really paying more to insurance than you would to fix it. For this reason, try to match your deductible to the surcharges. Also, check with your mortgage broker first because some brokers only allow a certain limit.

All-in-One

Most insurance companies offer discounts of 10% or more if you consolidate your different insurances under their roof. So when you look for an insurance agency, look at all the insurance policies they offer. This could end up saving not only on your homeowner’s insurance, but on all the others as well!

Burn Baby Burn

Obviously this is easier said than done, but homeowners that pay off their mortgage debts will most likely see their premiums drop. Why? The simple reason is that the insurance company figures that if you own the home outright, you’ll take better care of it.

It’s all Who You Know

Some companies offer discounts for being affiliated with certain organizations, ranging from credit unions, colleges or even credit cards. Also ask about group coverage, some businesses or alumni can work out insurance deals that give discounts for members. Talk to the association heads for more information about whether they offer this.

Loyalty

Choose you insurance company very carefully because if you an stick with them over the years, many companies offer loyalty programs usually involving discounts, which can be from 5-10%!

The All-Powerful Credit Score

Insurance companies are increasingly using credit information to price insurance policies. Don’t have too many open credit accounts, don’t charge close to the limits on your credit cards, and pay all your bills on time to keep your credit score healthy.

Tips on Coverage

So your TV finally died and you only get $50 for it? Well that seems ridiculous, there is no way you could buy another one for $50! Unfortunately it is what you signed up for. Actual-Value Coverage will reimburse you for the price you could have sold the item for today, but it doesn’t account for what it would take to replace it today, which is why Replacement-Cost Coverage is a much better idea.  Replacement-Cost Coverage will basically pay for you to get a comparable one, but this coverage will probably cost more. Also just a note to remember, flood and earthquake insurance is not included in most standard packages, so make sure you check into extended policies if you need that.

My last great tip to saving money in your coverage is: make sure you don’t’ buy what you don’t need! For example, don’t get earthquake coverage in a non-earthquake zone, or a jewelry floater to your policy if you don’t own expensive jewelry. Read the fine print and make sure you are paying only for what you need.

Home Inspections? What to do and Why

So it’s time. You’ve done your homework and searched until you couldn’t move that mouse-clicking finger any more. You wandered through too many homes to count or remember (except that really gross one, eww!). You’ve finally made your choice, so you want to make an offer. This is arguably the biggest purchase you will make in your entire life (unless your retirement plans include a jet or maybe just an island).  The only problem is that even though this is the biggest and most important purchase, it‘s also the most risky. There is no return policy or money-back guarantee; once you buy it, it’s your problem. For this reason, getting a home inspection is not just a good idea, it is a necessity.

What Is a Home Inspection?

A home inspection is a non-invasive visual examination of the condition of the systems and components of a home, i.e. they don’t have x-ray vision, so can’t tell you about the mold in the walls, or faulty flooring unless there are visible signs. A home inspection should include:

• Interior
• Flooring/Ceiling/Walls/Windows
• Plumbing
• Electrical
• Heating/Air Conditioning
• Ventilation/Insulation
• Exterior (chimneys, gutters, downspouts, walls, windows, doors, etc)
• Foundation (and the grading around it)
• Roofing

It may also include checks for:

• Improper building practices
• Some fire and safety issues

This typically takes about three hours depending on the size of the house and how many problems are found. This is a fairly long time, but you can use this time to your best advantage. Go through the house with the inspector, you can hear first hand about the potential problems, and maybe find out some of his tips or solutions, as well as familiarize yourself with the house.

After it’s all done, the inspector will give you a written report (so no, you don’t have to remember everything he says in those hours, hurray!). This will condense the whole inspection into something that should be easy to read and understand. If there are problems beyond the scope of the investigation, the inspector may also recommend further evaluation. Remember, a home can’t “fail” the inspection – this isn’t an appraisal or compliance inspection.

What Isn’t a Home Inspection?

An inspection is just what it says, they inspect, but nothing more. Inspectors are often confused with a lot of different professionals: They are not appraisers, i.e. they don’t tell you the value of the property. They are not contractors, so they won’t be able to give you an official quote on the repair, and they definitely can’t repair it for you (it’s against their Code of Ethics). Finally, they are probably not your mother, so they won’t be able to make any purchasing decision for you, sorry. They can only give you the information to help you make an informed decision.

Home inspectors also have different qualifications, so check before you hire one. For example, a home inspector is not qualified to inspect any wood-burning appliance unless they are WETT certified, so if you need that service ask first.

Home inspections also do not provide guarantees or warranties – talk with your builder about that. Also, there are also a lot of things that a home inspection doesn’t cover, including:

• Code or zoning violations
• Permit or title searches
• Property measurements or surveys
• Boundaries
• Easements or right of way
• Proximity to environmental hazards or noise interference
• Soil or geological conditions
• Well water systems or water quality
• Buried piping
• Underground sewer lines and/or waste disposal systems
• Underground water tanks and sprinkler systems etc.

How To Find an Inspector?

So where do you find an inspector who can do all of this for you? Well, check the Yellow Pages™ or housing or home trade magazines, ask friends and family, or check association websites or Google. Also ask your real estate agent for suggestions, they can provide you with a list of good inspectors, but may not be allowed (due to their code of ethics) to suggest just one, but beware of affiliations. Also check the online Canadian Directory for Home Inspectors.

The best place to find inspectors would be in the provincial or regional industry associations. Associations have standards or codes of ethics, although they differ provincially and regionally. Another great association is the Canadian Association of Home & Property Inspectors (CAHPI), which is the most widely recognized standard of quality for home inspections nationwide. It is a voluntary national accreditation and certification program that ensures the competency and professionalism of its members. Members should be able to show you that they are National Certificate Holders. On a side note for any of you looking in BC, it is provincially mandated that inspectors must be licensed so that is a huge weight off your shoulders. This is only in BC though, anyone can become a home inspector in other provinces.

Some things to look for are how long the inspector has been in business, how many complaints have been filed against them (check the Better Business Bureau), and what kind of training they have (inspection courses such as: defect recognition, building sciences, and home construction, associations they belong to, CAHPI etc). It’s also a great idea to have the inspector show you a sample report. “If it’s three or four pages long, don’t hire that person. While lengths of reports may vary, comprehensive reports average between 20 and 50 pages and contain color photographs highlighting defects or problems.”¹

Some things to look out for are: (1) Inspectors that offer to fix the repairs themselves. This is usually illegal and also biases the inspector to find more problems. (2) Inspectors who claim they can do the inspection in less time than anyone else (less than roughly 3 hours) this means the job will most likely be rushed and not as thorough as it should be. (3) Check the inspector’s re-inspection policy. It’s considered a courtesy for the inspector to verify a repair that the seller made after the initial inspection without charging for a return visit, but this differs from area to area. (4) Inspectors that won’t allow you to attend the inspection with them, unless there is a REALLY good reason.

check out our website www.canaterra.com for more great tips!

Tips for Home Staging Pt 1

“Staged homes sell 50% faster than unstaged homes and sell for 7% more” says Tammy Cunningham of Kelowna’s Center Stage Interiors.
From Okanagan Home Magazine April/May 2009 – Staging for a Sale

By making a home seem bigger, brighter, cleaner, and tasteful – it touches on buyer’s emotions and makes them feel like they can move right in. It is important to look at your house through the buyers eyes as thought you’ve never seen it or been there before.

Staging a home can be a huge asset in selling a home quicker and closer to the asking price. Make sure you check both inside and outside though!

Inside:

1. Professionally clean the house. Kitchens & bathrooms, inside cupboards & drawers, bathroom fixtures appliances and floors should be spotless.

2. Neutralize the decor in the house by painting rooms a cream/beige colour. The house needs to appeal to the broadest range of potential buyers.

3. Make the house as light and bright as possible by opening the blinds, turning on all the lights, and cleaning all windows inside and out.

4. Furnish key rooms. Empty houses are hard to sell as potential buyers have very little imagination on how their furniture can be set up to effectively use the space.

5. Pre-pack and store all extra clothing, books, toys, and other household items that you and your family will not need in the short term.

6. Put clean, fresh linens on all the beds when showing the house.

7. Have fresh flower arrangements throughout the house in key places such as the kitchen and front entrance.

8. Clear off and put away everything from the kitchen counter, and the top  and front of the fridge and stove. Make sure there are no dishes in the sink and that the sink and taps shine.

9. Put out fresh towels and decorative candles in the bathrooms.

10. Remove all personal and religious items when showing the house. Potential buyers need to imagine the house as their own and emotionally move in regardless of their background.

Outside:

1. Curb appeal is critical to ensure potential buyers look at the rest of the house.

2. Trim overgrown trees, weed gardens, keep the grass cut, and put mulch in the garden beds. In the winter, make sure the snow is cleared from driveways and walkways.

3. Make sure outside of the house is in good condition with the front door and garage door freshly painted to entice buyers to explore the property further.

Check out Canaterra.com for more great tips!

Landlords Need To Know

~ Don’t you wish?

CHMC Rental Report, Fall 2009

Province	Vac %
Newfoundland and Labrador	1.0
PEI	3.1
Nova Scotia	3.1
New Brunswick	3.8
Quebec	2.4
Ontario	3.5
Manitoba	1.1
Saskatchewan	1.9
Alberta	5.5
BC	2.8
Canada	2.8

*CHMC Rental Report, Fall 2009

Residential Landlord Advice

1. Get it in Writing. Get any notices or agreements written on paper with a copy for everyone, including both signatures and the date. This is especially important with the Tenancy Agreement, which should outline exactly what is expected of each party clearly and can be referred to if problems arise. Try to include: – The amount of rent to be paid and when – Who pays for utilities and services like TV – Who pays for repairs – Specific rules (e.g. no pets)

For a bit more help, try this Guide for What to Include in Your Lease.

Furthermore, have proof of all written notices. On many occasions, tenants deny they received written notices from the landlord. To avoid this, have proof that a notice was sent by sending it by Certified Mail. Include the Certified Mail Article # on the document and also send a copy by regular mail, and also keep a copy. Having the article # on the document shows that the notice sent was the same as claimed. ¹

2. Security/Damage Deposit. It’s obvious to everyone that a security deposit is a must, but how much do you ask for? The maximum amount a landlord may ask for can’t be more than one month’s rent and it can’t be increased as rent increases, but make sure you check with your provincial regulations. Interest also has to be paid to the tenant either at the end of each tenancy year or at the end of the tenancy, so it is a good idea to deposit all security deposits in an interest-bearing account immediately so you can use the bank interest to pay the tenants’ interest (in some provinces this may be mandatory). The minimum annual interest rate is determined by a formula set out in the Security Deposit Interest Rate Regulation, check out your provincial Tenancy Board for the current rate (see bottom of page). As a landlord, you are also required to keep security deposit records for at least three years.

3. Inspection Report. Always ALWAYS conduct both inspection reports. The inspection report describes the condition of the premises when a tenant moves in and again when they move out. You can’t make any deduction for damages or cleaning costs from the security deposit when the tenant moves out if you didn’t conduct these inspections. These inspections should be done one week before or after a tenant moves in and within one week before or after a tenant moves out. You should always check with your insurance company, though, as some companies require monthly inspections of the rental unit. Under normal circumstances both the landlord and tenant must be present for this but a landlord can conduct the inspection without the tenant if the landlord has offered the tenant two inspection times and the tenant has refused or did not attend. Also a good tip is to take pictures instead of just writing it down, a photo is 100% better than a debatable memory.

4. Rent Increases. Rent can’t be increased until a minimum of one year has passed since the last rent increase or since the start of the tenancy. If the 365th day occurs during the term of a fixed term tenancy the landlord cannot increase the rent until the tenancy agreement expires. Some provinces also limit the amount rent can be increased so check with your local or provincial Tenancy Board for the current rate (see bottom of page). The minimum amount of notice required to increase the rent depends on the type of periodic tenancy as follows:

• 2 full weeks for a week-to-week periodic tenancy
• Three full months for a month-to-month periodic tenancy
• 90 days for any other periodic tenancy

5. Tenants’ Clutter. “Sometimes a tenant moves out … but leaves belongings behind. A landlord has the immediate right to dispose of the goods if the landlord believes they are worth less than $2000, or if the value of the goods will depreciate substantially in storage (e.g. the goods will spoil). If the goods are worth $2,000 or more, the landlord must store them for 30 days. A tenant can reclaim their possessions by paying the landlord for the moving and storage costs. Once the tenant has paid these costs, the landlord must then return the tenant’s possessions. If the tenant does not claim the goods within 30 days, the landlord can sell the goods by public auction or by private sale with the approval of the court. The landlord can use the money from the sale of the goods to pay the costs for transporting, storing and selling the goods … (or) for rent or damaged property. If there is money left after those payments, the surplus is held by the provincial Minister responsible for the RTA…Landlords must keep a record of the storage and disposition or sale of goods for at least three years.”²

6. Shared Living Space. If a landlord shares a kitchen or bathroom or any area in the unit with the tenant, the Residential Tenancy Act (RTA) covers neither the tenant nor landlord. This situation also applies if the owner’s immediate family member(s) lives with the tenants.  In other words, if a parent purchases a home for their son/daughter to live in while attending McMaster, the RTA will not cover any other students/tenants who share this dwelling with the son/daughter. Because of this, the Tenancy Board can’t intervene for either party in any issue resolution.

7. Good Insurance. This is not an option – it’s a necessity. Make sure the unit has not only normal house insurance but also extras like tenant damage and loss of rental income. This way, if a nightmare tenant whirlwinds through, this can lessen the financial impact. An insurance policy is a contract so make sure you read ALL of it, or have a trusted lawyer sum it up for you. The policy should also cover “Injury to people residing in or visiting the premises” which can prevent lawsuits. It may cost more to insure the unit with all these additions, but it can save money in the long-run. Click here to compare rates in your area.

8. Drop By. A good idea, if you can do it, is to inspect the applicant’s current home. Make a reason, for example when handing out an application, tell the prospect that you will come by to pick up the completed application and while there, inspect where they are living. If they live out of town or are displaced and living with friends, and inspection is impossible, the deposit is doubled, with the consent of the tenant (may not be legal in some provinces). If things look good after 2-4 months, and all is going well, refund the extra deposit amount.

9. Make Renting Pay. “Once you have tenants and the rental is established, you will be liable to pay income tax on the rent you receive. However, landlords can offset many of their costs through taxable allowances, which can significantly reduce their tax bill and, in some instances, reduce it to zero. For example, landlords get tax relief on mortgage interest, professional fees such as solicitor and letting agent’s costs and they can also deduct the cost of replacement furniture, white goods and furnishings. For more information, visit the Revenue & Customs website, or speak to an accountant.”³

10. No Gaps. Don’t let a rental property sit with no tenants; these “income gaps” can cost a lot of lost revenue. Make sure to advertise the property BEFORE the current tenant leaves (as soon as they give notice). A sure fire way of having no gaps, and thus not losing any money, is to keep good tenants for as long as possible. Remember, renting properties is a business and tenants are customers, if they aren’t satisfied, they won’t continue using your service — it’s the same as any other business. Good tenants are like gold, keeping them will reduce the amount of rent lost due to vacancy, but also the amount paid for damage repairs, legal fees and anti-anxiety pills! If you have good tenants who are looking after the house, you don’t always have to keeping raising the rent every year – reward good tenants and increase your likelihood of retaining them by giving them a discount. This doesn’t even mean you have to lose money, if the tenant keeps up, or even improves the property, the capital value they are adding to your property may make up for the lower price you are charging.

Check out our website for more great information

RateSupermarket

Hey everyone, just dropping  aline to tell you all to check out this great site! RateSupermarket is an independent company that allows you to compare insurance rates, mortgages, credit cards and more. We at Canaterra have teamed up with RateSupermarket to offer our clients the opportunity to find rates in home insurance and mortgages right from our website. Enjoy!

10 Things Nobody Tells Renters

1. Make a list of features you are looking for before you go house or apartment hunting, and make sure to differentiate between want and need. Try using this Rental Search Worksheet to help get you started.

2. Make sure you know all the costs involved! Rent is the obvious one, but also have to consider utilities/amenities, laundry, parking, transportation, appliances, repairs/decorating, and insurance. As a rule of thumb, all this totaled should be less than 30% of your total income.

3. Walk around the neighborhood at different times to see if it’s right for you. Check noise level, crime level, air quality, local amenities and events, distance to work/school/family, access to transit and roads etc.

4. Have a tool kit on-hand, it is great for move-in day, but also great for any other easy repairs or decorating.

5. When visiting a property, come prepared with:

- Pen and copy of Rental Unit Evaluation Worksheet – Cheque for deposit – Your rental history and references – Credit references – A letter from current employer with salary and length of employment or a recent pay stub and contact information – List of questions – Info about pets

6. Consider getting renter’s insurance. Assuming that you are covered under your landlord’s insurance is usually wrong! The structure of the building is covered, but contents aren’t so check out some local companies for quotes. Check out this website for a better explanation of why renter’s insurance is important: Why. Also compare rates at the RateSupermarket.

7. Nobody ever tells you this, but you should get a return on your damage deposit! Ya, that’s right, you get interest on your deposit when or if you get it back. To see the current interest rate, check out this website if you are from BC, or check with your local or provincial Tenancy Board to find the calculator in your area: BC Tenancy Board.

8. Your landlord can only increase the rent after your first 12 months of living there (and the on every 12-month anniversary after) and only by the guideline set each year by the Ministry of Municipal Affairs and Housing (check out this year’s in Brochures by Topic), you should also be notified 90 days in advance.

9. Before signing a rental agreement, a good question to ask is if you can speak to previous tenants, or at the very least, why did they leave. If the landlord seems embarrassed and squirmy or is trying to avoid the question, turn and run as fast as you can! (Also try talking with the neighbors, gossip travels quickly!)

10. A landlord can NOT just lock you out of your unit and consider that an eviction. You must first receive a Notice of Termination that tells you what the problem is, then they have to wait a certain amount of time (dependant on the problem and where you live) for you to fix it. If you don’t fix the problem and don’t move out, the landlord can file an application with the Board and in most situations a hearing will be scheduled. Once the case is presented, then the Board will issue an eviction order, and this is legally binding.

Check out more information at Our Renters Webpage

The What, How and Why of Home Warranties

A home is the single largest investment that most people will ever make. The last thing that any new home owner wants to deal with are costly repairs or the replacement of complex or aging systems. When purchasing a newly built home, make sure there is a home warranty in place and for ‘resales,’ hire a Home Inspector to look over the home.

For information on home warranties, go to the companies & sites listed below:

• Alberta New Home Warranty Program www.anhwp.com
• Atlantic Home Warranty Program www.ahwp.org
• In BC, The Homeowner Protection Act requires all residential builders be registered with the Homeowner Protection Office. For further information on the Act, go to the HPO address at www.hpo.bc.ca.
• Manitoba New Home Warranty Program www.mbnhwp.com
• National Home Warranty – in BC, Alberta, Saskatchewan and Manitoba www.nationalhomewarranty.com.
• New Home Warranty Program of Saskatchewan, Inc. www.nhwp.org
• Pacific Home Warranty www.pacificwarranty.com
• CMHC – across Canada www.cmhc-schl.gc.ca
• Tarion Warranty Corporation (Ontario) www.tarion.com
• The Travelers Guarantee Co. of Canada www.travelersguarantee.com.

Example

BRITISH COLUMBIA – Homeowner Protection Act

The purposes of the Act are to strengthen consumer protection for buyers of new homes, to improve quality of residential construction, and to support research and education respecting residential construction. A further purpose of this Act is to establish a Reconstruction Program to provide financial assistance to eligible homeowners for home reconstruction. Homes built by Licensed Residential Builders are covered by mandatory, third-party home warranty insurance. The warranty is attached to the home, not to the owner of the home, and remains in effect upon the re-sale of the home until the coverage expires.

Coverage

As a minimum, this coverage includes:

• 2 years on labour and materials (some limits apply)
• 5 years on the building envelope
• 10 years on structure

It’s the strongest construction defect insurance in Canada. Some homes have home warranty insurance that exceed this minimum requirement.

Benefits of the program include

• Reduced Liability Period
• Third Party Administration
• Industry Standard Warranty Protection
• Customer Service
• Competitive Pricing
• Quality Assurance Program

Having your ‘dream’ home built

It is highly important that the relationship between the Builder and Home Buyer be one of mutual respect and honesty. It is not necessary that you agree on everything, but you must have an open mind when sharing ideas. It should remembered that the Builder is a building professional and his/her ideas come from a wealth of experience. Other things to consider:

• Share ideas clearly
• Don’t wait until the last minute to make thoughts known
• Find a way to have your Builder give you regular updates
• Schedule on-site visits well in advance and by your Builder’s policies
• And most importantly… relax and enjoy the home building process

A purchase contract exists between you and your Builder regarding the construction or purchase of your home. The purchase contract is that document that fully describes what your obligations are to the Builder and what the builder’s obligations are to you, the Purchaser. In its most basic form, the Purchaser is obligated to take possession of the home at the contracted price and the Builder is obligated to build the home to contractual specifications and then transfer title to you at the completion of the home. It should be noted that there are often “adjustments” to the purchase price and you should discuss these fully with your Builder before you sign the contract. For more information contact Canadian Home Builders Association.

Globe and Mail Article!!!

Hi everyone, check out the article published about us in the Globe and Mail!

The Article

Here is is:

The rush begins to steal a piece of MLS action

“A new front has opened in the assault on organized real estate, as a surge of well-financed companies accelerate their plans to steal business from the country’s most popular listings site.

Emboldened by the Competition Bureau’s attack on the Canadian Real Estate Association (CREA) and its Multiple Listing Service (MLS), websites that have been operating on the fringes are ramping up their efforts to gather and market listings.

CREA runs the country’s most popular listings site at Realtor.ca, and is powered by the MLS data gathered by agents across the country. Web-ranking services place it as the 60th most popular site in Canada, tucked comfortably between the New York Times and the Bank of Montreal.

Realtor.ca is also the key marketing tool for the industry, pointing consumers toward real estate agents who earn billions of dollars of commissions from the referrals. Anyone who lists on the site must employ – and pay a commission to – an agent through the entire process, a rule that is at the heart of the Competition Bureau’s complaint against the association.

Competitors see an opportunity to draw listings toward their more technologically advanced sites by offering lower listing fees and a wider range of services than are available on Realtor.ca. They hope the industry follows the U.S. – where a relaxation in the country’s access to MLS data led to a slew of websites that offered enhanced listings, such as Zillow and Redfin.

“There’s suddenly this conversation about what options are available when you’re looking for a home,” said Walter Melanson, managing director of PropertyGuys.com, an private home sale company.

“It’s an opportunity to really gain some ground and drive traffic to our site. Informed consumers want more choice, and this is an opportunity to tell them about those choices.”

More than 465,000 homes traded through the MLS system last year, where an estimated 90 per cent of the country’s transactions take place. Companies such as Property Guys – which handled 8,000 sales last year – have fought for the remaining 10 per cent.

As technology lowers the barriers to entry and consumers are made more aware of alternatives, upstarts are investing hundreds of thousands of dollars to increase their share of sales. And not every site wants to cut real estate agents out of the process.

“When you think about it, it’s ridiculous that MLS is the only game in town,” said Karen Thompson, who founded a B.C.-focused listings service called Canaterra Property Pages that she hopes to roll out across the country.

When I was thinking of creating the business, “discount realtors told me if I could found [an alternative to MLS] something else they’d list with me.”

Her site – which has cost about half a million dollars to build and now employs four full-time employees – relies on workers who manually scour real estate sites to update data. She also hopes that realtors will pay a flat fee to have their properties on the site.

On the East Coast, ViewPoint Realty owner Bill McMullin has downloaded all of his region’s listings onto his server, and then enhanced them with previous sale prices and maps. The service far surpasses what’s available on Realtor.ca, and he’s counting on it to win his agents customers in a competitive market.

Yet Realtor.ca doesn’t only face competition from outside its servers – the country’s largest real estate brokerages are investigating ways to cross-list their properties on each other’s proprietary websites. It would mean anyone visiting Century 21, for example, would see listings from Royal LePage.

It’s not about stealing listings from Realtor.ca, said Royal LePage chief executive officer Phil Soper, it’s about competing with sites such as Kijiji.ca – which has become the country’s second most popular place to view properties – and ensuring agents remain a key part of any transaction.

“We know in an technological world there will be an increasing number of ways for consumers to find the information they are looking for,” said Mr. Soper, who said agents would have flatly rejected the cross-listing proposal even five years ago. “Everyone is very much interested now – opening access to listings is good for business.” ”

Steve Ladurantaye

Globe and Mail Update

Published on Thursday, Feb. 11, 2010 8:15PM EST

Last updated on Friday, Feb. 12, 2010 7:03AM EST

Tips on Pre Sales

Photography by Photographic  Excellence

Pre-sales have allowed tens of thousands of families to successfully purchase a home. A pre-sale is a contract for the purchase and sale of a unit made prior to the construction or completion of a project. Developers and purchasers enter into contracts that provide for units to be built within a period of time and sold for an agreed fixed price. A certain number of pre-sales are generally required by the financial institutions before they lend money for projects. Purchasers usually pay deposits to the developer’s realtor or lawyer in trust as part of the pre-sale agreement. These deposits are fully protected under the law and are paid back in full to pre-sale purchasers if a project does not proceed.

The purchase of a new home will be the largest and most important purchase you make in your lifetime. Therefore it makes sense to protect this investment by doing proper due diligence. UDI (Urban Development Institute) suggests the following key points when purchasing a pre-sale unit:

Know who you are buying from

Find out the history of the company you are purchasing your unit from. What industry experience do they have? What are their previous projects? Are they a well capitalized company? Do they have any project failures in the past? Ask these questions of your professional advisors (your lawyer or a licensed real estate broker), and do an internet search starting with the company’s website.

Use the 7 day rescission period

When you purchase a pre-sale unit, under the law you have up to seven days to rescind the offer. Use this week to read the Disclosure Statement and Contract and to seek professional advice from a lawyer on the contents and implications of your purchase contract, so you fully understand it. If there is something you do not understand, do not be afraid to ask questions – especially of the developer and your professional advisors. This is the reason behind the seven day rescission period. A Lawyer Referral Service is offered by the Canadian Bar Association.

Know your rights and obligations under the contract

The review noted above should certainly include a thorough analysis of the terms that allow for the cancellation of the project – or delays. This includes whether interest will be paid on the amount of the deposit. There may be other rules in the contract, such as the purchasers obligations and the developer’s rights relating to the termination of the contract, and if (and how) pre-sale purchasers can assign (sell) their purchase contracts or units to new buyers. These issues need to be understood as well.

Know your rights under the Law

Developers must follow numerous rules with regard to their disclosure statements under provincial law. For example, in British Columbia, this information is readily available at the BC Financial Institutions Commission website. There is also a Frequently Asked Questions webpage on the site. Several important questions that consumers should ask are answered, including:

• What information must a developer provide to a purchaser?
• After a purchaser has signed a purchase agreement, can the purchaser cancel that agreement?
• How can a purchaser [give] notice [to] the developer that the purchaser is cancelling the purchase agreement?
• Can a purchaser obtain a copy of the Disclosure Statement and any Amendment from our office?
• Can a developer change the Disclosure Statement without a purchaser’s approval?
• What remedies does a purchaser have if the Disclosure Statement contains an omission or misrepresentation, or is amended after the purchase agreement was signed?
• Can [the BC Financial Institutions Commission] enforce a purchaser’s rights?
• What can be done if a purchaser believes a developer’s Disclosure Statement is deficient and the developer is still marketing?
• How can a purchaser make a complaint about a realtor?
• Can a developer use [a] deposit to construct and market the development units?”

Further information on your legal rights can be provided by your lawyer or contact the BC Financial Institutions Commission. Their contact information is as follows:

Inquiries:    (604) 953-5200

Toll Free:  1(866) 206-3030 – outside local calling area within B.C.
Fax:           (604) 953-5301
General Email:   FICOM@ficombc.ca

Cross Reference List for Presales of Residential Development Properties

The following is a list of important information for buyers of homes under development.  Buyers unfamiliar with such projects may require extensive consultation with knowledgeable REALTORS®, accountants, lawyers or notaries familiar with pre sale investments.

The following list is intended as a starting point for buyers to determine whether enquiries, advice or clarification is needed.  Do you have a clear understanding of these terms:

• disclosure statement,
• purchase agreement,
• homeowner protection office,
• superintendent of real estate,
• project completion,
• handling of the deposit money and any interest earned,
• handling and protection of payments upgrades,
• contractual developer rights to terminate the purchase rights,
• impacts to buyer of increase in costs or market value during construction and
• buyer rescission rights.

Please be aware of these and other equally crucial information prior to deciding to buy a new home in a pre sale transaction. Seek professional and expert advice to protect your investment.

The above information courtesy of the Urban Development Institute – Pacific Region