There are many technical issues and requirements that buyers and sellers must be aware of when signing real estate agreements.
Under the Ontario Statute of Frauds, real estate agreements are only valid if they are in writing and signed by all parties, therefore a handshake agreement to sell your property will not be enforceable.
The standard resale agreement provides a spot for the buyer and seller to sign as well as a witness. What happens if the witness does not sign the agreement? Can the seller or buyer cancel the agreement?
There is no requirement in the statute for a witness to sign beside the signature of the buyer or the seller. The main reason for the witness is to prevent either of the parties from later denying that it was their signature. But if the witness saw the party sign, they could also give evidence later as to what they saw, even if there was no witness signature.
As a result of the increase in mortgage fraud, many lending institutions now require that all real estate agreements be witnessed in writing or else they will not advance the mortgage loan. As a result, buyers and sellers are cautioned to always have a witness available. This can become problematic when agreements are signed by fax late at night and witnesses may not be available.
Some of the questions that buyers and sellers may have include:
• If two spouses are signing the agreement, can they witness each other’s signature? While technically they can, this may also offend a lender’s policy and so care should be taken to have an independent third party available, over eighteen years of age, to witness the signature.
• Can someone witness a signature if you fax the document to them after you sign it? The answer is no. The witness must be physically present to see you sign the document in order to sign as a witness.
• How is an offer or acceptance communicated? Under most standard agreements, the offer must be delivered or faxed to the other party to prove communication. Therefore, if an offer is delivered to the seller and it is open for acceptance until 11 p.m., then not only must the seller accept the offer before 11 p.m., but the accepted offer must be either delivered or faxed to the buyer before 11 p.m.
• Can you communicate offers and acceptances via email? Most agreement of purchase and sale forms in use today do not provide for communication via email. One of the main reasons is that there is a fear that you may send the email today, only to be notified tomorrow that there was a server error and the email was not delivered. Or perhaps you referred to the agreement as an attachment to your email but then forgot to include the attachment. In order to avoid problems, a clause should be inserted into your agreement to permit communication by electronic systems such as email. In addition, when you send the email, always ask for a reply communication from the other party to confirm that they have received the email. Then print the reply and keep it for your records.
The real estate agreement of purchase and sale is a serious contract, and may be the largest financial investment that you might ever make. Make sure to have it properly witnessed and that every clause is properly explained to you before you sign it. This is what a professional real estate salesperson or lawyer will do whenever they prepare and witness your signature to an agreement of purchase and sale.
Mark Weisleder
July 16, 2010
Mark Weisleder is a lawyer, author, course developer and public speaker for the real estate industry.
Sunday, July 18, 2010
Boxing moves, made easier
For environmental lawyer David McRobert, his 20-year-old Rockports say it all about how we should reduce our waste.
Enough with the cardboard already.
That loathsome task of digging up boxes to move from a house or office can be a distant memory, thanks to some GTA companies making packing easier and more eco-friendly.
You can also forget about buying them, assembling them, dealing with packing tape and getting rid of them afterwards.
“People move every day and cardboard boxes are not the best technology for that application,” says Philip Harbut, an owner of Frogbox, a company that rents plastic boxes that have many strengths, besides durability.
“You need something with handles, that’s weatherproof and stackable.”
For a price based on the size of your abode, you can use plastic boxes that come assembled, are a uniform size, easy to close and can boast a near-zero footprint.
Made from plastic garbage, these boxes can be delivered to one home and picked up from another.
Frogbox, which originated in Vancouver in 2008 and soon added Seattle to its territory, is a Canadian company with plans to expand across North America (they appear in the upcoming season of CBC’s entrepreneurial hit Dragon’s Den). A person can have boxes delivered in any one of their cities and picked up from the same city or another, Harbut says.
There are at least four GTA companies in this business, all start-ups within the last couple of years. Companies vary in their pricing, but most charge upwards from $99, depending on the number of boxes and length of time needed.
The boxes last about 200 uses and can be recycled again, says Richard Yu, of Good Boxes.
“We wanted to do something for the environment that would actually make an impact,” Yu says. “And we wanted to promote reuse.”
July 18, 2010
Barbara Turnbull
LIVING REPORTER
Enough with the cardboard already.
That loathsome task of digging up boxes to move from a house or office can be a distant memory, thanks to some GTA companies making packing easier and more eco-friendly.
You can also forget about buying them, assembling them, dealing with packing tape and getting rid of them afterwards.
“People move every day and cardboard boxes are not the best technology for that application,” says Philip Harbut, an owner of Frogbox, a company that rents plastic boxes that have many strengths, besides durability.
“You need something with handles, that’s weatherproof and stackable.”
For a price based on the size of your abode, you can use plastic boxes that come assembled, are a uniform size, easy to close and can boast a near-zero footprint.
Made from plastic garbage, these boxes can be delivered to one home and picked up from another.
Frogbox, which originated in Vancouver in 2008 and soon added Seattle to its territory, is a Canadian company with plans to expand across North America (they appear in the upcoming season of CBC’s entrepreneurial hit Dragon’s Den). A person can have boxes delivered in any one of their cities and picked up from the same city or another, Harbut says.
There are at least four GTA companies in this business, all start-ups within the last couple of years. Companies vary in their pricing, but most charge upwards from $99, depending on the number of boxes and length of time needed.
The boxes last about 200 uses and can be recycled again, says Richard Yu, of Good Boxes.
“We wanted to do something for the environment that would actually make an impact,” Yu says. “And we wanted to promote reuse.”
July 18, 2010
Barbara Turnbull
LIVING REPORTER
Sunday, July 4, 2010
Report Mid-Month Resale Housing Figures
TORONTO, JUNE 16, 2010
Greater Toronto REALTORS® reported 4,139 sales through
the Multiple Listing Service® (MLS®) during the first two weeks of June 2010.
This represented a 20 per cent decrease compared to the 5,185 sales recorded during the same period in 2009. New listings increased by 21 per cent annually to 7,985.
“The pace of existing home sales in the GTA has slowed to more normal levels following a record-setting start to 2010,” said Toronto Real Estate Board President Tom Lebour.
“Due to higher mortgage carrying costs, sales in the second half of 2010 will not be as high as what was experienced during the last six months of 2009.”
The average price for June mid-month transactions was $437,039 – up seven per cent compared to the average of $407,716 recorded during the first 14 days of June 2009.
“The seller’s market conditions experienced during the first few months of the year have given way to more balanced conditions. Home buyers are experiencing more choice,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “With more choice in the market place, price growth is starting to slow.”
Greater Toronto REALTORS® reported 4,139 sales through
the Multiple Listing Service® (MLS®) during the first two weeks of June 2010.
This represented a 20 per cent decrease compared to the 5,185 sales recorded during the same period in 2009. New listings increased by 21 per cent annually to 7,985.
“The pace of existing home sales in the GTA has slowed to more normal levels following a record-setting start to 2010,” said Toronto Real Estate Board President Tom Lebour.
“Due to higher mortgage carrying costs, sales in the second half of 2010 will not be as high as what was experienced during the last six months of 2009.”
The average price for June mid-month transactions was $437,039 – up seven per cent compared to the average of $407,716 recorded during the first 14 days of June 2009.
“The seller’s market conditions experienced during the first few months of the year have given way to more balanced conditions. Home buyers are experiencing more choice,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “With more choice in the market place, price growth is starting to slow.”
Canadian consumer optimism is up, but so are concerns about rising interest rates...
Canadian consumers have gained more confidence about the economy, although a large majority of them remain concerned about rising interest rates, according to a recent survey.
While 67 per cent of Canadians say they believe the overall outlook of the economy is good, up from 54 per cent last quarter, the exact same number, 67 per cent, indicates they are concerned about rising interest rates, according to the June RBC Canadian Consumer Outlook Index.
In addition, 84 per cent of the survey’s respondents expect to see a rise in the next six months, a 15 percentage point increase from March.
Looking ahead, 55 per cent of Canadians believe the national economy will improve over the next 12 months; however, this figure is down by two points from March as a result of four regional decreases, suggesting there is still concern among Canadians about the sustainability of the recovery.
For instance, the index found that only 34 per cent of Canadians feel their ability to save money for things like retirement or education had improved from three months ago, which is a five-point drop from last quarter.
Thirty-seven per cent indicated they have less money left over after they pay their bills compared to three months ago, and looking ahead to the next three months, 20 per cent remain concerned that this situation will worsen.
On a positive note, only 20 per cent are experiencing job anxiety, down seven points from its height last November.
Still, the index remained flat at 108 points from last quarter.
While 67 per cent of Canadians say they believe the overall outlook of the economy is good, up from 54 per cent last quarter, the exact same number, 67 per cent, indicates they are concerned about rising interest rates, according to the June RBC Canadian Consumer Outlook Index.
In addition, 84 per cent of the survey’s respondents expect to see a rise in the next six months, a 15 percentage point increase from March.
Looking ahead, 55 per cent of Canadians believe the national economy will improve over the next 12 months; however, this figure is down by two points from March as a result of four regional decreases, suggesting there is still concern among Canadians about the sustainability of the recovery.
For instance, the index found that only 34 per cent of Canadians feel their ability to save money for things like retirement or education had improved from three months ago, which is a five-point drop from last quarter.
Thirty-seven per cent indicated they have less money left over after they pay their bills compared to three months ago, and looking ahead to the next three months, 20 per cent remain concerned that this situation will worsen.
On a positive note, only 20 per cent are experiencing job anxiety, down seven points from its height last November.
Still, the index remained flat at 108 points from last quarter.
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