Identification Requirements for Real Estate Transactions An important part of preparing for a real estate transaction is making sure that you have sufficient identification documents to satisfy the requirements of your realtor, lawyer and mortgage lender. Each of these professionals will require that you provide documents to verify your identity. The usual requirement is two pieces of valid and unexpired identification documents, one of which must be photo identification. Examples of acceptable photo identification are an Ontario drivers licence, an Ontario Identification Card, or a Canadian Passport. The second piece of ID could be one of the foregoing, a Canadian Social Insurance Card or a credit card issued by a major Canadian financial institution. Your lawyer will document the details from the required I.D, and will also make note of your occupation and the name, address and telephone number of your employer The Non-Resident Speculation Tax imposes a 15% tax on the purchase or acquisition of an interest in residential real estate by non-residents of Canada in the Greater Golden Horseshoe Region (GGH). This includes the following geographic areas: City of Barrie County of Brant City of Brantford County of Dufferin Regional Municipality of Durham City of Guelph Haldimand County Regional Municipality of Halton City of Hamilton City of Kawartha Lakes Regional Municipality of Niagara County of Northumberland City of Orillia Regional Municipality of Peel City of Peterborough County of Peterborough County of Simcoe City of Toronto Regional Municipality of Waterloo County of Wellington, and Regional Municipality of York. In order to be exempt from this tax individuals must provide evidence that they are Canadian citizens or Permanent Residents of Canada. Your lawyer will require that you sign a sworn declaration to this effect, and you may also be required to provide proof of your status in the form of a Canadian passport, Canadian citizenship card or Permanent Resident Card. Prior to entering into a contract to buy or refinance real estate, you should consult with a lawyer and make sure that you have all the documentation required to satisfy the requirements of your realtor, lawyer and mortgage lender. At Devry Smith Frank LLP , we are well-equipped to handle your real estate transaction. We provide promptness, precision and understanding to all our clients, engaging with you from the beginning stages of your purchasing journey to the closing of your dream property. We pride ourselves on our ability to clarify vague or unclear legal terminology, and to communicate with our clients in clear and simple terms. For experienced assistance with both commercial and residential real estate, contact: Louis Gasbarre at 416-446-3318 or by email at louis.gasbarre@devrylaw.ca or Robert Adourian at 416-446-3303 or by email at robert.adourian@devrylaw.ca “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJanuary 18, 2019July 5, 2023
Ontario’s New Standard Lease Agreement Starting April 30, 2018 Padmapper released a rent report earlier this year showing Barrie as the third most expensive city in Canada to rent a two bedroom ($1,650/month), and the fifth most expensive for a one bedroom ($1,250/month). That’s an increase of roughly 15% from rental prices in 2016. With the Barrie rental market heating up, landlords and tenants alike must be aware of the new standard form lease that now applies to almost all residential tenancies in Ontario. As of April 30, 2018, landlords must use the new standard form lease for most private residential rental units. This includes single and semi-detached houses, apartment buildings, condominiums, and secondary units such as basement apartments. This lease must be used by both individual landlords and property management companies. Kathleen Wynne, the then-Premier of Ontario, announced that tenants in Ontario have had to endure illegal and hard to understand provisions in their lease agreements for too long. The new lease is intended to head off those issues by clarifying “understanding between landlords and tenants about what the rules are, what the agreement is and what the responsibilities of each is”. “We’re working to prevent those problems, those kinds of misunderstandings before they begin” Wynne commented. If a landlord is not using the standard lease, tenants can ask for one. The request must be in writing and if the landlord does not provide the standard lease within 21 days of a written request, the tenant may give 60 days’ notice to terminate the lease early. Tenants can also withhold a maximum of one month’s rent upon making a request for a standard lease, but otherwise must continue paying rent for the rest of the term of their lease, or until its early termination. The standard lease form contains: Mandatory fields that must be completed and cannot be altered or removed, including basic information about the tenant, landlord and tenancy terms. Optional additional terms where the landlord and tenant can agree on terms that are unique to the unit, provided that terms that are inconsistent with the Residential Tenancies Act will be void and unenforceable, such as prohibiting a tenant from having pets. General information for landlords and tenants on their rights and responsibilities. The purpose of this section is to avoid the problem of common illegal terms in tenancy agreements such as no pet-clauses and damage deposits other than rent deposits. If you are in need of a real estate lawyer, please visit our website and contact one of our real estate lawyers in Barrie, Toronto or Whitby today. In addition to real estate, our firm offers assistance in the areas of corporate law, wills, estates and litigation matters. Contact our Barrie office directly at 705-812-2100, or Cayley Rodd at cayley.rodd@devrylaw.ca. This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs. By Fauzan SiddiquiBlog, Real EstateSeptember 7, 2018June 16, 2020
Landlords Want to Ban Pot in Rentals Some residential landlords want to be able to ban the use of marijuana smoking in rental units when recreational use is legalized. Currently, the Residential Tenancies Act does not include explicit rules about smoking substances of any kind in a rental property. The new marijuana laws do not contain rules for renters engaging in recreational use either. As it stands, Landlords have the right to include stipulations in a new lease banning tobacco smoke. However, they cannot change an existing lease to restrict smoking of tobacco. This will likely apply to smoking marijuana when it is legalized. Amongst the concerns expressed by Landlords in permitting pot to be smoked in rental units are the following: Apartment units are not hermetically sealed allowing the smell of the smoke to travel to other apartments to the discomfort of other tenants; Costs are around $5,000 – $6,000 to rid each smoker’s unit of the smell; Increased complaints of tenants having to deal with marijuana smoke permeating their homes Efforts will have to be made to reach a compromise between Landlords and recreational pot using tenants, as they will otherwise be limited on the places they can smoke. Perhaps such a compromise will be creating a dedicated space outdoors for recreational users to smoke. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Cannabis Law, Real EstateFebruary 7, 2018June 16, 2020
National Housing Strategy On Wednesday, November 23, Justin Trudeau announced the federal government’s 10 year national housing strategy. The federal housing strategy is aimed at ensuring that Canadians have access to affordable homes. The aim is to reduce poverty and homelessness. Trudeau deemed access to adequate housing as a “human right”. The federal government is hoping to make a systematic change that will have lasting effects. The federal government has made a $11.2 billion commitment to social and affordable housing over 10 years, and plans to do some of the following: Build 100,000 new affordable housing units; Repair 300,000 housing units; and Extending housing subsidies that are set to expire. Combined with investments from provincial governments, the total spending could reach as high as $40 billion. The plan relies on the provinces and territories matching funds. Some of the key measures include: A certain number of units will be reserved for Canadians in vulnerable populations, such as people with developmental disabilities, seniors and survivors of family violence; Support for Indigenous people who do not live on reserves and a separate Indigenous housing strategy, which is to be released at a later date; Funding provided directly to low-income families and individuals; Funding to expand and extend the homelessness partnering strategy; Creating new legislation that will require future federal governments to maintain a federal housing strategy; and Creating an advocate for federal housing to help seek solutions to these systemic issues, such as advising the government and the Canada Mortgage and Housing Corporation of possible solutions. The strategy includes a co-investment fund which will provide financial contributions and low interest loans to developers that meet certain criteria. The government will also be transferring federal land to housing providers on a number of conditions. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateDecember 12, 2017June 17, 2020
Condominium Disputes Condominium Law Reforms The tools for resolving disputes under the Condominium Act, 1998 (the “Condo Act”) were mandatory private mediation-arbitration and the courts. The mechanisms provided for under the Condo Act were time consuming and costly. A review of the Condo Act also revealed a power imbalance during disputes as between condo boards and owners. Bill 106, the Protective Condominium Owners Act, 2015, was passed in 2015. It amended the Condo Act to address dispute resolution and enabled the establishment of a condominium authority that would provide more expedient and cost efficient dispute resolution mechanisms. As we stated in a previous blog, the government introduced the new authority, the Condominium Authority of Ontario (“CAO”), in Toronto to oversee and assist with issues or complaints regarding condominiums. The goal of the authority is to provide a faster and more cost efficient dispute mechanism process. New Online Tribunal The CAO launched its first online tribunal service last week in order to “help resolve the complaints that arise in 10,000 condo corporations” more efficiently. Its mandate is to help settle and decide condo related disputes in Ontario. The Tribunal is known as the Condominium Authority Tribunal (“CAT”) and provides access to mediators and adjudicators, with an initial fee of $25 for the first step in its process. As of November 1, CAT will only be addressing condo record access issues, but will expand as the months go on. Currently they have two disputes that have been sent to the online tribunal. The online tribunal will work in three phases: Negotiation – this will cost $25 and will give users the opportunity to try to resolve the dispute as amongst themselves; Mediation – this will cost $50 and a tribunal mediator will get involved to help resolve the matter; and Adjudication – this will cost $125 and a tribunal member, different from the mediator, will decide how to resolve the dispute. As mentioned in our previous blogs, the CAO will be providing training and education to condo board members and managers and will require that all condo corporations be registered with the CAO by December 31st of this year. Currently, they only have 2,700 condo corporations registered to date. By: Marly Peikes, Student-at-Law “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateNovember 15, 2017June 17, 2020
September Home Prices and The National Index There has been a lot of discussion lately around the recent slow downs to the real estate markets in Toronto and surrounding areas. A number of factors can be said to be contributing to the changes in these previously hot markets, including a number of measures introduced by the Ontario government earlier in the year intended to have just such an effect. These include the new foreign buyers tax – under the Non-Resident Speculation Tax (NRST) there is now a 15% tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region by individuals who are not citizens or permanent residents of Canada or by foreign corporations and taxable trustees. Changes to the mortgage market introduced last year have also affected the market by increasing the qualification requirements for buyers with a down payment of less than 20%, effectively reducing the size of mortgage that these buyers are able to qualify for. Changes to the financing market have also hindered the ability of many non-bank lenders to compete in the mortgage market, thus stifling overall competition in the financing sphere. We have also seen increases to interest rates offered by lenders in conjunction with the recent Bank of Canada rate increases. The icing on the cake appears to have come today with OSFI releasing its revised final guidelines setting out new mortgage qualification requirements which are set to take effect January 1, 2018 and will affect all borrowers. Details can be found here. With so many recent changes factoring into the market in a relatively short period of time, it is difficult to predict how the market will react in the longer term. There has not been enough time to adjust to one change before the next one is being implemented, making it impossible to gauge how significant the cumulative effect will be. For now however, the market in Toronto (and surrounding areas) has clearly cooled off and the national composite house price index has suffered due to the falling home prices in Toronto. According to the Toronto Star, the national index fell 0.8% compared with the previous month – the largest month over month drop since September 2010. In the month of September the price indexes of the 11 cities included within the national index moved as follows: Toronto (fell 2.7%) Quebec City (fell 2.3%) Hamilton (fell 1.9%) Halifax (fell 0.4%) Ottawa-Gatineau (up 0.3%) Calgary (up 0.7%) Montreal (up 0.3%) Winnipeg (down 0.3%) Victoria (flat) Vancouver (up 1.3%) Edmonton (up 0.2%) Devry Smith Frank LLP has experienced Real Estate lawyers in Barrie. If you require a real estate lawyer or have any questions, call us directly at 705-812-2100. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateOctober 17, 2017June 18, 2020
Ontario Legislature moves to regulate Life Leases in bid to protect Seniors Bill 155, introduced in the Ontario Legislature on September 20, 2017, proposes a new law to regulate, so-called, ‘life leases’, a type of lease arrangement that lasts for no less than 50 years. Life leases are a form of leasing arrangement that has become increasingly popular in Ontario thanks to a rapidly growing seniors population. A life lease is similar in concept to condominium ownership, whereby a group of people own units in a community or building and pay fees for the use of common areas and maintenance. Unlike a condominium however, a life lease does not confer an ownership stake in the property; rather, the lessee owns an ‘interest’ in the property that allows them the right to live in the unit. A prospective lessee typically enters into a life-lease by paying a lump-sum up front followed by monthly fees for amenities and maintenance. This is an attractive arrangement for seniors, who can still live independently but are not able to maintain a single family home. The Bill proposes certain payments in respect of life leases and requires the disclosure of information relating to life leases. Under the proposed rules, the landlord is required to disclose to a prospective tenant the estimated entrance fee, the projected completion date, information regarding governance and management of the residential complex, the estimated amount of other fees, including monthly occupancy fees, and the estimated refund that a tenant would receive upon termination of the lease. Landlords are also required to maintain a reserve fund to pay for any unforeseen major repair to or replacement of assets of the complex, and to hold adequate insurance for such. It is unclear what effect the rules this will have on the life lease market, but new regulations could well increase costs that are ultimately passed on to seniors. The Bill’s sponsor, MPP Ann Hoggarth, said: “This bill provides that life leases be given protection, similar to renters and condo owners, by providing clear disclosure to leaseholders and improving communication with their sponsors”. Are you thinking of purchasing or selling a life lease? We can help. If you are in need of a real estate lawyer, please visit our real estate page and contact one of our lawyers today. For any other legal services or inquiries, please contact Devry Smith Frank LLP directly at 416-449-1400 or visit our website for more information. By: Stuart Clark, Student-at-Law “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateOctober 16, 2017June 18, 2020
Toronto Home Sales Continue to Tank This Fall Data shows that September continued to be a month of decline for the Toronto real estate market, with sales falling between 38 and 45 per cent compared to a year earlier. This marks the fifth month in a row of declining sales, which not too long ago had high home values and crazy sales numbers. Once the government stepped in to try and cool the market with new housing rules, such as the 15-per-cent foreign buyers’ tax, May was the beginning of the decline. In the current market, depending on the value of the home and the neighbourhood, some are selling quickly while some continue to sit there. Lauren Haw, CEO of Zoocasa says that “homes around $500,000 are on fire and selling very quickly,” while things are slower in the higher price ranges in the city. In the current market, Haw suggests, if you “miss the mark with your initial pricing, your house will go stale.” Haw also believes that the next 6 months will continue to be slow in Toronto, with no price collapse in Toronto’s future. Haw sees prices stabilizing, while other analysts see pressure on Toronto’s housing market due to rising interest rates, mortgage rule tightening which would require borrowers who put 20 per cent down or more to go through a “stress test” to see if they can afford their mortgage if rates were to increase by two percentage points. If you are in need of a real estate lawyer, please visit our Real Estate Page and contact one of our Real Estate Lawyers today. For any other legal services or inquiries, please contact Devry Smith Frank LLP directly at 416-449-1400 or visit our website for more information. By: Nicolas Di Nardo “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateOctober 4, 2017June 18, 2020
Top Intersections for Condos in Toronto Condos have been taking over the Toronto skyline, with more to come not only in the downtown core, but in popular hubs around the entire city. New builds provide a ton of options for prospective buyers because they seem to be popping up all over the city, but it seems that re-sale condos surrounding many of the city’s key downtown intersections have the demand and high prices. Prices are up to 23 per cent higher than the city-wide average, according to TheRedPin. The real estate company looked at 25 key intersections with two bedroom and one bedroom units. Two-bedroom condos at Bay and King Sts., and Bay and Bloor Sts. sold at some of the highest prices between January and August with an average of $1.5 million. Two-bedroom apartments in Yorkville sold for an average of $1.3 million, while one-bedroom units were around $753,735. In comparison, you could secure a one-bedroom at Bay and King for $494,591 and $626,989 at Bay and Bloor. On average, one-bedrooms were selling for $545,000 in Toronto and two-bedrooms at $925,000. Enzo Ceniti of TheRedPin said that “at these busy intersections, value can increase by 20 per cent or more,” if you’re an investor, areas like the ones mentioned above are where you should be looking. For those looking to invest or purchase, here is a statistic that may be helpful to know: 56% of condos at the 25 intersectoins were one-bedroom 30% were two-bedroom Remainder consists of studios and larger apartments For those looking to not spend as much as previously mentioned, TheRedPin has also identified the lowest sale prices and their areas. Two-bedroom units were at their lowest at Yonge and Dundas Sts., averaging $658,234. One-bedroom units could be found as low as $371,444 at Queen and Yonge Sts. Needless to say, condos outside of downtown can be found for less. Yonge St. and Finch Ave. averaged $424,698 during the study, with two-bedrooms costing $583,014 on average. Prices decrease as you move further out of the core. With prices increasing over the past year, entry-level for Toronto consumers has been a condo, rather than a townhome, semi-detached or detached homes. As things are looking to settle in Toronto, with the measures taken by the government, it will be interesting to see if the distinction between the house and condo market will continue to shrink. If you are in need of a real estate lawyer, please visit our Real Estate Page and contact one of our Real Estate Lawyers today. For any other legal services or inquiries, please contact Devry Smith Frank LLP directly at 416-449-1400 or visit our website for more information. By: Nicolas Di Nardo “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateSeptember 21, 2017June 18, 2020
Amendments to the Residential Tenancies Act On Friday, September 1, 2017, changes to the Residential Tenancies Act, 2006 (“RTA”) affected how landlords can terminate a tenancy. Bill 124, Rental Fairness Act, 2017 amended some of the RTA provisions on terminating a tenancy. The amendments provide renters with more protections. Background Under the RTA, s. 48(1), a landlord is able to terminate a tenancy for the landlord’s personal use. This means that a landlord can terminate a tenancy in good faith for personal uses such as: possession for a family member, for his or her spouse, for his or her children, for his or her parents or for his or her spouse’s children or parents or a caretaker of any listed family members. The family member has to live in the unit for at least a year. Here’s an example of how this rule plays out: David owns a rental unit in Yorkville and his oldest daughter, Carly, just got accepted to the University of Toronto. David wants Carly to move into the rental unit so that she can be close to school. Under the RTA, David would be able to have the tenant vacate the unit and have his daughter move in. There are specific timelines for how much notice he would be required to give under the RTA. David can legally remove the tenant as long as this is done in good faith and Carly lives in the unit for at least a year. The Changes When a tenant is evicted under this section of the RTA, the landlord will not get off scot free. Under the new section 48.1 of the RTA, landlords will now have to pay the tenant one month’s rent as compensation or offer the tenant a comparable rental unit. This means that when David is evicting his tenant, he either has to pay the tenant one month’s rent or offer the tenant another unit. The Effects Tenants now have more protections against eviction. Landlords will have to be careful to comply with the new eviction rules. If a landlord wants to move a relative into a rental unit, landlords will have to compensate the current tenant or offer another acceptable rental unit. The relative has to actually live in the unit for at least a year. If the landlord bends this rule in order to re-rent at a higher rate or convert the unit, there will be repercussions. This can be in the form of a fine up to $25,000. So if our friend, David, re-rents the unit to a new tenant at a higher rate, there could be monetary penalties. The Landlord and Tenant Board may award a large fine against a landlord if he or she tries to circumvent the rules. This new rule is a way to deter landlords from re-renting a unit at a higher rate or converting a unit. This comes as part of the government’s housing plan, which was announced this spring. This included a cap on rental increases in 2018 at 1.8 percent. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Planning and Development Law, Real EstateSeptember 19, 2017June 18, 2020