This new legislation provides Buyers an opportunity to rescind (walk away from) a contract to purchase a Residential real property.

Points to Remember:

• The Buyer has up to 3 clear business days (not including weekends or holidays) after they have an accepted offer, the Buyer does not have to provide a reason for rescinding and must pay a .25% fee on the accepted purchase price (eg. $1,000,000 would be $2,500.00) directlyy to the Seller within 14 days of rescinding.
• After Day 4 the Buyer can only walk away from the deal if Subject Conditions are not fulfilled nor removed.
• The Legislation prohibits the HBRP being waived by either the Buyer or the Seller.

Federal tax changes including the Multigenerational Home Renovation Tax Credit came into effect on January 1, 2023.

If a family decides to add a secondary unit to their home to allow an immediate or extended family member to live with the, this tax credit will cover the eligible construction costs for the same.  To be considered for the tax credit, the renovation must be completed in the owner's primary residence where they live with a senior or disabled person. 

If the tax credit is approved, it will cover 15 per cent of costs and can be up to a maximum of $7,500.  Eligible expenses would cover the cost of labour, building materials and also, equipment rentals and permits. 

Expenses that will not be covered under the tax credit include furniture, household appliances, construction and equipment tools, routine repair or maintenance costs, and devices and landscaping or security services. 

All expenses for the renovation have to be shown in receipts.

As of November 24, 2022, no strata corporation is allowed to have residental rental-restriction bylaws and all current restrictive bylaws are now, due to legislation just passed, deemed to be invalid. However, bans on short-term rentals such as AirBnBs can still be enforced.
In addition to rental restrictions, the new legislation also states the only age restrictions now allowed are those for 55+. Those stratas who have bylaws stating restrictions to 19+ or 45+ ages etc. can no longer exclude younger residents.

This legislation, Bill 44 and Building and Strata Statutes Amendment Act, passed swiftly and much to the dismay of some, without the usual amount of discussion and debate. It remains to be seen just what affect this will have on the market, housing stability and pricing. Many younger buyers and investors are greeting the news with approval.

Other changes have also been enacted, such as making allowance for online meetings, but the rental and age restriction issues are of the main interest to most.

Read more at BC Gov News news.gov.bc.ca
It will take some time for the Strata Property Act to be updated online.

How to Keep Your Home Safe during a Dry Spell

The Lower Mainland, West Vancouver and the Sunshine Coast are experiencing one of the dryest summer and fall seasons on record.  We're currently at Level 5 drought conditions which is the most severe designation.  Water reservoir levels are low and there's no immediate sign of rain coming any time soon. 

What does that have to do with home owners?  It means fire risk is extremely high.  If you have dry grass, bushes and trees next to your home, deck and outbuildings, you and your home are more vulnerable to the quick spread of flames.  We're seeing fires breaking out in neighbourhood parks, green spaces and ditches.  All it takes is an errant cigarette butt, careless use of fireworks, spark from a firepit ... what may not be a big deal under normal conditions, really matters now.

So along with passing on the fireworks this year, you might want to make a point of cleaning out eaves and flower beds of dry leaves and twigs, cover your outdoor firepit and chimney with a mesh screen and keeping your grass a little shorter this fall. 

For more tips on managing safety during wildfire season, see FireSmartBC.ca  

What to do with all the things the regular recycling outlets won't take?

Cleaning and clearing feels great and looks great too.  But some items aren't easy to dispose of safely.  Regular recycling outlets and street pick up want nothing to do with aerosol cans, herbicides, pesticides, household chemicals, corrosives and other toxic materials with the poison symbol on the labels.  You can't just pour them down the drain or toss them in the garbage.  So what to do?

Here in the Lower Mainland, check out Recycle It Canada at www.recycleitcanada.ca  located at 12202 Old Yale Road.  It's not a government sponsored service so there is cost involved but it's a relief to know that you're able to move those hazardous wastes safely without harming our environment.

Box up your items and take them to the depot.  Staff will look at what you've got and give you a quote on what they charge to deal with it.  Costs vary depending on what you have.  For instance, aerosol cans are $4 each, pesticides $10/litre or 4 lb fire extinguisher is $20.  You can see more examples on-line, email info@recycleitcanada.ca or call 604-587-5865 to ask specific questions.  If you have more than you can bring to the depot, you can arrange to have them pick it up.

An outdoor deck is a great place to gather with friends and family to enjoy your yard and each other.  Regardless of the type of deck material you have, you should do a thorough annual inspection to ensure it's safe.  Here are 10 areas you can include in that annual inspection:

Splitting, Warping and Rotting

Lack of protection from moisture allows wood to swell and then shrink which leads to splitting and warping which can be a tripping hazard. It could mean your wood doesn't have the proper stain/sealant or that you'd don't have the proper drainage away from your deck. Use a strong screwdriver to explore any soft areas for wood rot and keep an eye out for any signs of bugs boring into the wood.

Signs of Mold and Mildew

Mold, mildew and rot can be cause by inadequate water drainage or the type oil-based stain you've used that can be a food source for mold and algae.  In addition to being unsightly, mold and mildew can be slipping hazards and promote wood rot.

Water Drainage

Ensure your deck has the proper pitch to keep water from standing on your boards and that the ground underneath your deck has the correct grade to drain water away from the deck.  Make sure roof gutters aren't blocked and allowing water to splash onto your deck. 

Conduct a Splash Test

Splash some water on your deck.  Wait 15 minutes to see if the moisture beads up or if it absorbs into your wood.  If the water gets absorbed, it's time to re-seal or re-stain the give it the protection it needs.

Loose nails or screws on the deck surface

Walk the deck with a hammer (or screwdriver if that's how the boards are fixed) and fix any places where they have come up.  Loose nails and screws are tripping hazards.

Railings and balustrades

Check to make sure they are still strong and firmly attached.  Any that are loose need to be fixed immediately to prevent accidents.

Support Posts

Ensure there aren't any loose connections between posts and deck beams.  Tighten bolts as needed.

Flashings and Ledger Boards

Flashing is the sheet metal where your deck meets the walls of your home and is there to deflect water to keep it away from the ledger boards which attach your deck to your house.  Repair or re-caulk any damaged flashings and if you can get under the deck, check the ledger boards for bolts that need tightening and any signs of rotting.

Electrical Sockets on the Deck

If you have outdoor sockets near your deck, these shold be protected by Ground Fault Interrupters (GFIs). Press the buttons on the GFI to see if they are operating properly.  If not, they need to be replaced immediately.

Trees Hanging Over the Deck

Consider pruning limbs of trees overhanging the deck to reduce sap stains, pollen accumulation and reduce risks of limbs falling and damaging it.

One of the first things I do when Spring Cleaning time rolls around is check my smoke and CO2 alarms.  No problem; an easy switch of batteries and I was good to go.

This year it occured to me it had been a while since I looked at my fire extinguisher.  It looked fine - arrow is in the green portion of the dial.  However, I noticed that you could check to see if there had been any recalls on them at cpsc.gov/recalls  So I did.

And it was a good thing I did!  My extinguisher is a smaller one and has a plastic handle and tip.  Turns out those plastic handles have been known to jam and the tip is a danger for flying off and hurting people.  There had been one death reported due to problems.  So it has been recalled and needs to be replaced with a better one!  

So, long story short - check your fire extinguishers.  There would be no worse feeling than trying to put out a fire and have your extinguisher not work or injure someone.

You've found the home of your dreams but unfortunately, these days a whole lot of people seem to have the very same dream!

Here are some tips for success in this Sellers' Market where multiple offers on the same property are the norm, not the exception.

1.  Work with an experienced agent who is familiar with the area and knows the other realtors in that area.  Offers that come through someone with a great reputation and good rapport with their colleagues gives you a headstart.

2.  When you get a call to come and look at a property, don't delay.  These days there is a short window of opportunity.  If you want to have a second visit and time to get your ducks in a row, act fast.

2.  Write an offer with as few conditions as possible to make it very attractive.  Make sure you've done your homework by:

     a) Having your financing all lined up with a pre-approval letter from your lender in hand showing that you are a capable buyer that can complete the deal without any hiccups.  A good mortgage broker can run your numbers taking taxes and maintenance fees into account to let you know your "bidding" limits

     b) Bring an inspector with you to your viewing if possible to sort out any possible challenges with the property's condition.

     c) Look at as much the documentation prior to viewings as you can.  Your agent can do a title search for you if one isn't available.  Ask for Strata Documents in advance (most listing agents will have them and if they don't, your experienced agent may well be able to lay their hands on at least some of them.)

     d) Check on insurance costs, proximity of fire hydrants, property conditions to ensure your ability to insure at a reasonable rate.

3.  Enclose a letter with photo (or even a short video!) of you and your family outlining why you love this property and how it so perfect for you.  Sometimes a tug at the heart strings is the deciding factor between two very similar offers.

4.  Go in with your strongest possible offer.  Don't be reckless but it's unlikely you'll get a second chance to win this home of your dreams so give it your best shot.

The days of wandering leisurely through a weekend afternoon's Open House just to browse at houses are gone - at least for the foreseeable future.  Here at HomeLife, our agents are asking all potential viewers to read, agree to and sign conditions that show they are indeed serious buyers and willing to take appropriate precautions to keep the homes they view safe for themselves and the sellers.

In order to be allowed to enter a home during this COVID19 pandemic, potential buyers need to have done a lot more homework to make sure it is in actual fact one they really need to see.  Selling agents are all doubling down on getting professional measurements done with floorplans for buyers to preview. Photos and video tours are provided to fully show a property's features.  Municipality bylaws and guidelines for a property's use should be pre-examined.  For strata properties all documentation needs to be ready prior to listing so prospective buyers can read through to see if there is any reason why they wouldn't be interested in buying the unit.  

Sellers and Buyers are all expected wear proper gloves and usually masks as well as use hand-sanitizer while in the home.  Properties will be pre-prepared for viewing by having lights on, doors and cupboards open so noone needs to touch anything.

In some instances, listing agents are doing Virtual Open Houses by walking through the home by themselves with a camera describing the features and answering questions as they come in.

It's different - very different.  But it's working to keep all of us safe while people who really need to buy or sell can reach their goals.  

This general Information relating to Deferred Mortgage Payment Programs was provided by Lynn McLellan, Dreyer Group Mortgages with Verico  I hope it's of some help in understanding the situation a bit better.  For more in-depth knowledge, contact your lender or mortgage professional.

     Lenders maintain the legal right to timely repayment of their mortgages and mortgage payment deferral programs are offered at their sole discretion and each lender has different policies on how they handle these requests.  Note: These programs are generally restricted to "institutional" lenders only.  Private mortgages do not qualify.

2.  No lender is going to forgive your mortgage payment.

     A deferred payment program allows you to roll a defined number of mortgage payments into your mortgage, however, you are still expected to ultimately pay all of the money you owe, with interest.

3.  True financial hardship must be demonstrated.

     These programs are for customers who are genuinely struggling to make their next mortgage payment.  They may have lost their job(s) and/or a portion of their income and they do not have the cash reserves necessary to draw on.  If you are not in this group, you are not likely to be eligible.  However, if you do make the decision to request a payment deferral, please be prepared to submit a detailed breakdown of your personal assets, current income and expenses.

4.  If you do not currently fall into this distressed category, please do not call your lender at this time.

     Lender phonelines are overloaded right now with many calls being from customers who are worried but are not in a situation as per #3 above.  If you are still receiving your normal income and have enough money to make your next mortgage payment, please delay a call to your lender until you are in that situation.  Or better yet, contact the mortgage professional you originally worked with when you obtained your mortgage.  They will be happy to review all of your options with you!

5.  Deferring mortgage payments will not hurt your credit score.

     A lender-approved deferment is not a missed payment and it will not appear on your credit bureau report as such.  Lenders are also typically offering to waive any fees associated with these types of programs during the Covid-19 crisis.

6.  Deferred Payment Programs are typically capped at six months.

     Deferring the first payment will be easier than deferring the second one, and so on.  Right now, six months is about the longest deferment you should expect to receive, but no lenders will do this all at once.  Most of them will require that you reach out with a request for each individual payment that you are going to miss.

7.  Communication is key.

     If you are going to miss your mortgage payment, contact your lender first!  Be honest with them about your circumstances and have a plan for how you are going to get back on track.  If you are about to miss a payment and cannot get through on the phone lines, send your lender an email.  Lenders may waive NSF fees if you miss a payment but can demonstrate that you attempted to notify them in advance.

8.  A mortgage deferred payment program is for your mortgage payment only.

     Property tax installments and insurance premiums are entirely separate from these programs and must continue to be paid.  If municipalities and insurance programs offer similiar programs (which most municipalities are currently doing), they should be contacted separately.

9.  Other options may be available.

     In addition to rolling missed payments back into your mortgage for a specified period of time, lenders also have the ability to refinance your mortgage to pay out other debt (subject to qualification), restore your original amortization (which lowers your payment amount), hold a payment (during a temporary suspension of income), or offer you a reduced payment for a specific time.  We recommend that you contact your mortgage professional to review these other options.  Note: Interest-only payments are usually not available under these programs.

10. Rental property investors may also be eligible.

Property investors with tenants who have stopped making their rent payments will also be considered; however, they will be assessed by the same rigorous standards as noted in #3 above.  Note:  Some provincial governments have introduced tenant relief programs. Rental-property owners can also encourage their tenants who have been adversely impacted by Covid-19 to apply for these programs if available.

Please remember that these are challenging times for not only customers but for lenders themselves.  They are all working extremely hard to try to provide all their customers with first class service and to help those borrowers who are being adversely impacted by Covid-19.  It may take a significant amount of time to reach a customer service representative at your particular lender, so when you do finally get a live person on the other end of the phone, remember that they are doing their best in difficult times and treat them with the respect they deserve.

It’s a sure sign of the beginning of the New Year when the BC Tax Assessments for our properties arrive in the mailbox. 

For many years, when the market was robust, the values climbed each year … and in some areas, climbed dramatically.  This year, however, we’re generally seeing a decline in the tax assessment values, particularly in detached homes, while some townhouses and apartments are staying the same or rising slightly.  The situation changes from neighbourhood to neighbourhood – Surrey’s property value change is -4% according to the BC Assessment while Metro Vancouver is -11% on average.

The BC Property Tax Assessment is used by tax authorities to determine the portion of municipal and provincial property taxes homeowners will pay and is based on what is considered to be the fair market value of your property as of July 1 in the prior year.  It doesn’t take into account forces that act within the real estate market such as seller motivation, buyer motivation, and variations in the market within the six months prior to release of the tax assessment notice.  The BC Assessment Department doesn’t rely on individual appraisals of properties when making their recommendations as to value; they source information from land titles, permit applications and approvals, zoning changes, drive-bys, models of apartments buildings to ascertain views and other factors not necessarily related to your individual home.

So when pricing a home to sell (or buy), relying on the Tax Assessment isn’t the wisest thing to do.  Oftentimes in years past, the assessment was significantly lower than selling price because the market was hot.  Now that the market has softened, you’ll see selling prices lower (in some cases significantly lower) than the tax assessed value.  Any property’s value in real estate terms is what a buyer is willing to pay for it.

If you have questions about your property’s assessment, go to www.bcassessment.ca  . Or call 1-866-valueBC (1-866-825-8322 or 604-739-8588).  If you wish to challenge the assessment and file a Notice of Complaint, the deadline for your appeal is January 31, 2020.

Trish Fedewich, Notary Public with Fedewich & Witt came to our HomeLife Benchmark Realty sales meeting today to share some tips on dealing with Escrow Closing Agreements.

Escrow Closing Agreements come into play when a real estate contract cannot be completed because all the terms agreed upon can't be met.  In some cases, the contract can be extended to allow more time for those conditions to be fulfilled, if all parties are in agreement.  Here are some examples of when an Escrow Agreement might be used:

1)   Sale of a New Residential Property from a Developer to a Buyer when no Registered title is Available on the agreed Completion Date. 

If a strata plan or subdivision hasn't been registered in time for the contracted completion, the Seller may want to mitigate his risks and ensure the Buyer is satisfied and with an escrow agreement. This allows the Buyer to move into the property and the Seller doesn't receive payment until title is transferred.  Some contracts for new homes already include the terms for an escrow agreement in case it may be necessary.  Both parties' legal representatives draft an Agreement that will protect both sides of the contract.  Special care needs to be given in cases where lenders are providing a mortgage for the purchase.  The Buyer needs to ensure the mortgage won't expire prior to the deal being completed and the Seller needs to ensure there is appropriate insurance taken out on the property seeing as the Buyer doesn't actully own the property outright.

2)  Sale of a New Residential Property from a Developer/Builder to a Buyer where there is no Occupancy Permit issued by the Completion Date:

Sometimes there is no final occupancy permit but the Buyer wants to take possession of the property.  This is extremely risky and generally not recommended.  If the City or Fire Department is not satisfied with the property, they can order the Buyer to vacate the property.

3)  Sale of Home from an Estate where Propbate hasn't been granted by the Completion Date or the Seller becomes incompetent and has no valid Power of Attorney.

Title cannot be transferred after a single owner's death or a couple who hold the property as Tenants in Common without Grant of Letters Probate.  If that owner has a partner in ownership in Joint Tenancy, the surviving partner can sell without Probate.

If a Seller becomes ill and/or incompetent between the time the contract is written and completion, and has no power of attorney, the Completion Date may have to be delayed while an applicaiton for Committee of the Seller is obtained.

3)  Sale of Home and A Mortgage Cannot be Released by Completion Date:

Occasionally a Seller may have a very old mortgage on title to the property that is paid out but has never been discharged.  If the lender was a corporation no longer in business or a private individual no longer alive, there's nobody to sign the discharge by the Completion Date.  

There are definitely risks involved in entering into an Escrow Agreement as well as advantages.  Seeking strong legal advice is the best way to proceed in decision making.  

The most important thing I took away from this morning's discussion was the importance placed in looking even more carefully at the Title of a property prior to listing it.  I always look for easements, covenants and charges.  From here on in, I'll also be looking for older mortgage charges and checking them out with the Seller.  I'll also be asking the Seller(s) and Buyer(s) if they have a Power of Attorney. 

The best way to help my clients solve problems is to do my best to help avoid them in the first place.

You've just received an offer to purchase your home ... and it's low ... really low.  At least it feels really low to you, the seller.  Now what?

1)  Don't take it personally and respond negatively. 

While it may be really difficult to keep your emotions in check, there's no point in getting insulted at a lower offer than you expect or feel isn't fair for your home.  It has been a sellers' market for a few years now but the tide has turned and buyers are in the drivers seat.  Any offer you receive is an opportunity to move on with your plans.

2)  Check again for comparables in your area of homes that are similiar to yours.  

Make sure this offer is  actually a "low ball" offer.  If you've been on the market for a while, there may have been lower sales since your first set your price.  Once you're reacquainted yourself with what current prices and conditiions are, you're in a better negotiating position. 

3)  Assess the offer from all sides. 

Is the buyer's agent a seasoned one or inexperienced? Is the buyer's agent from out of the area and not aware of your property's value in neighbourhood, school catchment, etc.?  Is the buyer an investor to whom this is strictly a numbers game.  (If so, they're likely not going to counter and will just move on)  Are there other factors beyond strictly price that you can work with to be more favourable for you.  For example, moving completion dates up if you've already bought elsewhere or extending them so you won't have to rent while you look for a home and move twice.

4)  Respond with what you'd have used had the offer been acceptable. 

There's nothing to be gained by refusing to talk and quite possibly, something to gain.  The buyer may have just been "trying the price" in case you were desperate.  By responding in a matter of fact manner, you're establishing that you're knowledgeable and willing to negotiate reasonably.  Mention a few relative comparables and features that make your home stand out compared to others.  Be prepared to go back and forth a few times and above all, be patient. 

The other day I stopped by to pick up a copy of the most recent Seniors Resource Directory for a client.  Over the Christmas holidays, it become more apparent to her and other family members that her Mom was having trouble keeping up with housework, grocery shopping and generally just getting out to enjoy life since her husband had passed away.

When she asked my opinion about selling the house and moving her Mom into a residence, I suggested talking it over as a group with their Mom first and seeing if they could find ways for her Mom to stay where she was.  I mentioned that Come Share was a terrific resource for help in many areas.  Everyone (including Mom!) agreed that staying in her current home was the best option for now if she had some day-to-day help with managing chores and activities that she and her husband had shared.  The family will look it over online while Mom is more comfortable with the paper directory to read.

If you are having some challenges with helping an older family member manage daily life, check out Come Share at www.comeshare.ca   The Society has been actively working with and helping seniors and their families since 1977 and doing a terrific job.  Directory resources and more details are available online.