April 2017 will possibly go down as the turning point in Ontario/Canada’s economy. Although the brunt of the straws that broke the camel’s back were dropped in Ontario, it’s obvious that this province is Canada’s strongest at the moment. Remember presently, Real Estate, Construction and Mortgage/Finance are pretty much the only above positive performing industries in Canada. To recap collectively what transpired in April here are the following in layman terms (excuse my spelling and grammar, can’t be bothered):1) 15% foreign real estate buyer tax, essentially taxing well to do non-citizens and non-permanent residents investing in real estate in the better part of Ontario. These dollars will no doubt be diverted elsewhere away from real estate entrepreneurs, retirees looking to down size and leave an inheritance to their kids and grandchildren looking to get into real estate themselves, real estate developers employing tens of thousands of contractors and sub-trades, contractors and sub-trades busy building homes for which their contracts will dwindle, tens of thousands of realtors making a living helping others buy and sell real estate, tens of thousands of mortgage brokers helping buyers borrow money, and much more

Ontario’s new real estate cooling off plan has the following changes: 1) 15% Non-Resident Speculation Tax on residential single family dwellings purchased by non-citizens or non-permanent residents that are not subsequently attaining citizenship or permanent residency. 2) Applying Rent Control to all forms of residential rentals capping increasing to no more than 2.5% at a time. 3) Making it more difficult for landlords to evict tenants for their own use of the premises. 4) Uniforming residential leases with additional provisions/explanations for tenants.

The new City of Toronto Land Transfer Tax Rates which are effective March 1, 2017 are as illustrated below. The City has decided to harmonize their rates with the recently announced Ontario, Provincial Land Transfer Tax changes. The difference between the City and the Ontario Provincial rules is that the City’s changes do not include grand-parenting provisions to exempt transactions that are initiated prior to March 1, 2017.In addition to the changes in the Toronto Land Transfer Taxes, also effective for all conveyances and dispositions made on or after March 1, 2017, the maximum rebate for eligible first time purchasers will increase from $3,725.00 to $4,475.00 (i.e. first $400,000.00 consideration is not subject to the tax). The City has also amended the eligibility of the first time home buyer rebate to Canadian citizens or permanent residents of Canada (to be consistent with the provincial rules).

The answer to this question is constantly evolving, with new and conflicting case law addressing specific facts released almost yearly.  The old adage of being able to redeem your mortgage (payout your mortgage) during a power of sale proceeding so long as the mortgagee in possession (being the seller) has not yet entered into a firm or unconditional agreement of purchase and sale with a buyer is no longer clear cut.Today the way I understand it is that there are two issues once the mortgagee in possession (being the seller/mortgage lender) enters into an agreement of purchase and sale with a potential buyer, and whether or not the borrower/mortgagor can still redeem (payout) his mortgage and keep his property:Agreement of purchase and sale has conditions that must be satisfied prior to the agreement becoming “firm”; and

DID YOU KNOW IF YOU DIE WITHOUT A WILL IN ONTARIO?And you are married, have children and your assets are worth more than $200,000, your surviving spouse will not be entitled to your entire estate?It will be up to the Court to appoint someone to administer your estate if you are not married or do not have a surviving spouse?If you are not married or do not have a surviving spouse; if your minor children are entitled to any funds from your estate, the office of the Children’s Lawyer of Ontario (“OCL”) and the Accountant of the Superior Court of Justice of Ontario (“Accountant of the Court”) will decide how those funds should be invested and what amounts should be paid for your children’s maintenance?If both you and your spouse are deceased, it will be up to the court to decide who should act as guardians of your children?

Tips on Being a Home Owner & things you could do to save money:Change the locks and make spare keys, update the alarm with monitoring and a new code.Review your home insurance policy; understand your coverage and how to maintain it. Lots of companies like One Sure Insurance offer online areas where you can access all of your documents so you can take your time reading through them.Setup your utility accounts; understand what is being charged for service and for rental.Make sure your attic is properly insulated; this will keep your home warmer during the winter.Install ceiling fans in most rooms to save energy in keeping your home cool during the summer.For any exposed water pipes make sure to wrap them so that they don’t lose heat.Install a programmable thermostat and learn how to use it.Replace the air filters in your furnace, and have your vents and ducts cleaned.

Sellers should be weary and concerned with agreeing to a holdover period as defined in a typical listing agreement to offer to sell a property.  The same can be said about Realtors (real estate sales representatives, brokers and brokerages) who take over a listing immediately upon its expiry or termination, that was previously listed with a different Realtor.  For illustrative purposes a typical commission and holdover clause found in the Ontario Real Estate Association (“OREA”) listing agreement available for the Toronto Real Estate Board (“TREB”) members is as follows:”COMMISSION: In consideration of the Listing Brokerage listing the Property, the Seller agrees to pay the Listing Brokerage a commission of……% of the sale price of the Property or…for any valid offer to purchase the Property from any source whatsoever obtained during the Listing Period and on the terms and conditions set out in this Agreement OR such other terms and conditions as the Seller may accept.  The Seller further agrees to pay such commission as calculated above if an agreement to purchase is agreed to or accepted by the Seller or anyone on the

Simply put, the answer is “No”.  Unlike other provinces, such as British Columbia, in Ontario Real Estates Salespersons or Brokers cannot self-incorporate as a Realtor and enjoy some of the income tax benefits that an incorporated active business can in Ontario.  The only allowed corporate entities in the Ontario real estate profession are the brokerages themselves.   The benefit of a professional corporation that is available to lawyers, doctors, dentists and accountants to name a few, is that these professionals can provide their services through their professional corporation thus directing all revenues to this entity and writing off all of the matched expenses they incur in the process.  This will allow them to better manage their income, as well as higher other individuals such as their spouse and or children to help – thereby affording them a salary as well.  Essentially then, the professional is able to reduce their what would have been personal income by writing off expenses they otherwise could not. As well as reasonably split their income with family members who are most likely taxed at lower

Annually a MIC that issues its shares through a prospectus and registration exemption under securities law and regulations (e.g. not publicly traded companies),  will be responsible for providing their investors with financial statements illustrating the performance of the MIC for its recent fiscal year end in a set of separate documents.  However, in addition to appeasing their investors with proper disclosure and transparency a MIC will be required to do the following annually:A financial audit (completed by a qualified firm CA or CPA firm, does not need to be IFRS, as MICs are not automatically considered reporting issuers even though they are deemed “public companies” under the Canadian Income Tax Act);Annual resolutions to approve the financial statements;Annual resolutions to declare dividends, and possibly to catch up for dividends declared throughout the year on a monthly or quarterly basis;

Management of the MIC must be vigilant and selective with whom they lend to, and investors can inquire about whether the MIC in question will allow investments within various percentage brackets ranging from low to high risk. This option would provide investors with the opportunity to select an investment according to their level of risk (this option does exist with certain MICs). Also, investors that are researching potential involvement in MICs should be aware that there are some MICs in limited markets, such as smaller towns, that concentrate on specific industries. Considering the location, economy and possible market downturn is essential for investors to decide if they feel that risk is not an option.However the Benefits of Investing in a MIC include: