Tag: Real Estate

Levy Zavet Lawyers – Are restrictive covenants always totally and completely enforceable?

For most buyers purchasing real estate, it is common practice to check municipal by-laws to determine whether their intended use for a property will be permissible. What they may not know however is to check for any restrictive covenants – which are often even stricter than municipal bylaws. What is a restrictive covenant? Restrictive covenants are conditions of use and […]

Why Would One Need a Real Estate Lawyer?

For most Canadians, the purchase of a home is the largest single investment that they will ever make. Not only is the purchase of a home a large investment, but oftentimes it can be an incredibly complex one. It is of the utmost importance that all documentation is in order and that financial transactions are protected. By working with a […]

What happens when Home Trust now needs to borrow money to advance you a mortgage loan?

What do you do when your mortgage lender now has to pay a higher interest rate to their own lender on the money they loaned to you?Home Trust in crisis!”Home Trust would be required to pay a non-refundable commitment fee of $100 million and make an initial draw of $1 billion. The interest rate on outstanding balances would be 10 per cent, and the standby fee on undrawn funds would be 2.5 per cent, Home Capital added.Gloyn said this translates to an effective interest rate of 22.5 per cent on the first $1 billion, declining to 15 per cent if fully utilized.””Home Capital Group Inc. said Wednesday its subsidiary, Home Trust, has seen deposits drop by nearly $600 million in recent weeks and it is seeking a $2 billion credit line to mitigate the impact, which it expects to accelerate.

The Ontario Real Estate market meets its April 2017 Budget; are we in crisis?

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 and the 15% foreign buyer tax!

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.

Levy Zavet Real Estate Lawyers

MICs: The Technical Aspects of a Mortgage Investment Corporation

TYPE OF ENTITY FOR A MORTGAGE INVESTMENT CORPORATIONA Canadian Corporation throughout the taxation year where its business only undertakes to invest its funds, and thereafter qualifies as a MIC, is deemed to be a public corporation under the ITA, and therefore must have its financials audited. Depending on which province your MIC is registered, it will have to comply with securities legislation in that province;Depending on which province your shareholders or investors are, it will have to comply with securities legislation in that province;TYPE OF ACTIVITY & INVESTMENT/ASSET BASEMortgages secured against real estate in CanadaMortgagors can be individuals or corporateMortgagors can be Canadian non-residents

What Is A Heritage Building in Toronto, Ontario?

The City of Toronto has been experiencing a shift of rapid development, and the scarcity of property resources accessible for further growth have led developers to be creative with readily available structures such as heritage properties. The Ontario Heritage Act governs the provincial and municipal identification and protection of properties with what are considered as “heritage attributes”. These “attributes” are described in Section 1 of the OHA as characteristics of certain properties that contribute to the “cultural heritage value or interest” of the municipality. The general guidelines for designation can be found under s.29 of the OHA, and more detail-specific guidelines can be found in the Ontario Regulation 9/06 titled “Criteria for Determining Cultural Heritage Value or Interest”. If you’ve recently moved to Toronto, make sure you have a list of local contractors such as absolutedp.com in case of emergencies.Heritage Preservation Services (HPS) is the authority that protects heritage designated properties and guides the Toronto Preservation Board and City Council on matters relating to the OHA. The HPS typically manages heritage designation applications, the review of proposals regarding the development of heritage sites, maintenance of designated properties, and providing the policies, as well as

My Two Cents on the Canadian Real Estate Market and Housing Prices in 4 Minutes

Every other day I get asked “what’s the deal with the Canadian Real Estate market and housing prices is there a cap? Will there be a bust/crash? What will be the floor?” After spending 4 minutes thinking about it; the following is just my two cents! Over the past few years, I wake up every morning and on the news I usually hear or read a combination of a few of the following:Greece is bankrupt;Europe is on shaky grounds with an ongoing debt crisis;North Korea has nuclear capability;India has nuclear long range capability with not just China on their list;Iran has or will have nuclear capability;Syria is in the middle of a revolution;Libya is crippled;In Africa there are 24 countries each dealing with some kind of war, and 88 countries with war between militias-guerrillas and separatist groups, there are 6 provinces struggling for independence;

REAL ESTATE LAW: Condominium Basics

WHAT IS A CONDOMINIUM? The term “condominium” refers to a specific, legal form of owning real estate; not to the physical style of the building, or the particular use of the building.Condominiums are a means of dividing property into some parts which are individually owned, and some parts which are owned in common.A “condominium” can be any kind of building, including a highrise apartment, a low rise apartment, a semi-detached house, a townhouse or commercial unit such as a store or an office.Owners can sell their units, along with their share of the common property.The property taxes, and mortgage, as well as a proportional share of common expenses for each unit, are the responsibility of the owner.