Purchasers Archives - Levy Zavet Law

Real Estate Law: Closing a Real Estate Transaction

Choosing a closing date The closing date can be whenever the parties agree upon, however selecting a closing date on a weekend or statutory holiday will prevent your transaction from being registered because the land registry offices and the electronic registration system are unavailable. If parties so choose to close on those days, alternative arrangements such as closing in escrow can be made with caution. Other days such as the last day of the month or Fridays are typically very busy for real estate transactions for various reasons such as having the weekend to move in and concluding payment cycles. Therefore, if possible, avoiding those days may be prudent especially if someone is planning on selling and buying on the same day.

Assignment of leases, rents, non-disturbance, and attornment

Assignment and Assumption of Contracts General RulesThe lease is a mixture of benefits and obligations, which can be unilateral or bilateral. The “assignor”, or a party to a lease, can assign the benefits to a third party, the “assignee” but cannot assign the obligations without the consent of the other contracting party or the non-assigning party. The assignee can assume the obligations without the consent of the non-assigning party, but this does not relieve the assignor of its primary liability for the obligations. Nor does it enable the non-assigning party to sue the assignee for a default. In the event of default, the non-assigning party can sue the assignor who could in turn sue the assignee who had assumed the obligations and either expressly or by implication agreed to indemnify the assignor for the assumed obligations. The point here is that benefits can be assigned without consent of the non-assigning party, but obligations cannot. Nonetheless, if the benefit is expressly not assignable or because of its nature is not assignable, or if the lease provides a mechanism for its assignment, then these express provisions would modify the right of the assignor to assign a benefit. This is known as the Doctrine of Privity of Contract, and it has value in some instances, like other contractual rules, but causes unnecessary complexity and rigidity in relation to assignments.

Assignment of Rents: Potential Conflicts and Exceptions

In the previous instalment, we discussed the difference between lease and rents and left open the manner of their registration. It is a fait accompli that an assignment of rents could be registered in Land Titles. As the right to get rents is a chose in action, it has to be registered under the P.P.S.A. With regard to an assignment of leases, it could and should be registered normally, because the lease is a property interest. It follows therefore that it cannot be registered under the P.P.S.A.Conflicts So, the question is whether or not to register an assignment of rents against the land. That is when conflicts with the P.P.S.A. begin. Because an assignment of rents is a chose in action and the right to receive rent is personal property, it can be registered under the P.P.S.A. Theoretically, under the P.P.S.A, an assignment of leases being an assignment of a contract as security for a loan can also be registered. This is contradicted in Section 4(1) of the P.P.S.A., which states that it does not apply to an assignment of an interest in real property, including a lease of real property. Hence, an assignment of leases cannot be registered under the P.P.S.A. and priority would not be affected by such registration if carried out after all. Priority would be affected by land registrations only.

Understanding Municipal Tax Sales: Legal Challenges

Other Legal Challenges Earlier we have discussed three Municipal Tax Sales clauses, which if applicable, leads to cancellation of sale. Besides cancellation by the treasurer, the tax sale could be challenged by others as voidable for neglect, omission, or error as provided in s. 382 (1).21RedemptionThe statute states that the cancellation price has to be paid within one year from the date of registration of the tax arrears certificate because the tax arrears certificate is required to announce that the land will be sold by public sale if the cancellation price is not paid within one year following the date of its registration. In addition, the tax deed has to include a statement that the cancellation price was not paid within one year following the date of the registration of the tax arrears certificate.It has been seen, however, that a treasurer has the discretion under s. 12(6) of the Rules to cancel a tax sale any time up to registration of the tax deed. The failure to exercise such discretion is a lapse against which a court can grant relief. This, however, is of no consequence as the Courts have found that a municipality has no obligation in law to complete the tax sale.

Construction Liens: Obtaining Liens and Restrictions Placed on Them

We have discussed earlier one of the two methods by which a contractor working for a tenant is able to get a lien on the freehold of the property. The second method will now be discussed.The Freehold Owner Deemed “Owner” Under the CLAWithin the meaning of the CLA, there are circumstances, when the owner of the freehold may be considered an “owner”, even if the work was performed on leased premises. The definition of “owner” given in Section 1(1) of the CLA is as follows:

COMMERCIAL LEASING: All About Zoning, Renewals, and Extensions

Zoning Disputes concerning the Smartcentres have been in the spotlight for much of this past year, illustrating the significant hurdles developers face when seeking approval for a large scale, primarily retail development. The cases have shown that proposals for large scale retail developments from now on must take into account policy directives developed under a municipality’

REAL ESTATE BASICS: What Every New Immigrant OR First Time Home Buyer Should Know About Buying Real Estate In Canada

Canada remains one of the countries attractive to the eyes of the people who plan to migrate. Currently, Canada has maintained its open doors to immigrants. This gives chance to people in any part of the globe to experience the Canadian way of life. And with this, real estate, especially residential, continues to grow in demand. These immigrants are investing in Canadian properties for a place to live in.

STATUS CERTIFICATE REVIEW – A Way Out of the Deal?

Last week, one of my clients called to inform me that the sale of his condo unit failed to firm up because the purchaser’s lawyer advised the purchaser not to waive the condition in respect of the condominium status certificate review. My client said that the reason the purchaser did not waive the condition was because the status certificate disclosed that the unit is a bachelor, which it originally was before my client

COMMERCIAL REAL ESTATE: A Brief on Real Property Acquisition & Disposition

Since the onset of the global economic struggles that hit the international business scene; trade and industry have been greatly affected. Commercial real estate in Canada is not spared from the global economic crisis. These economic challenges tend to lower the growth of business establishments that affect the acquisition and disposition of properties for commercial purposes.

Competition Bureau and the Canadian Real Estate Associations (“CREA”): More Private Deals on the Horizon?

Recently the Canadian Competition Bureau requested that CREA open up the Canadian real estate market by making the Multiple Listing Service (“MLS”) open to the public and thus allowing for greater public access to market properties.CREA sets the real estate industry’s standards and practices, including setting commissions of five percent (5%) of a home’s total sale price,

Tag: Purchasers