The B.C. Government has introduced draft legislation to amend the Real Estate Development Marketing Act that imposes obligations on developers in relation to the assignment of Purchase Agreements for the sale or lease of strata lots.
In virtually all standard contracts of purchase and sale, the parties agree that the vendor will provide a property disclosure statement (“PDS”) and that the representations made in the PDS will survive the completion of the contract.
There has been a lot of discussion in the media, amongst politicians and most likely in your circle of friends recently about the rapid increase in housing prices in B.C. and particularly in the Lower Mainland.
When a purchaser borrows funds to purchase real property (i.e. land and any buildings or structures attached to the land), most arm’s length lenders will require a personal promise to repay the funds, as well as some interest and expenses.
A restrictive covenant is a class of legal “promise” imposing a restriction on one party for the benefit of another. When drafted correctly, restrictive covenants are an invaluable tool to protect your business.
Changes have recently been introduced to the laws surrounding Land Use Contracts (“LUCs”) that could materially affect the right of a land owner to use his land that is presently subject to a LUC. LUCs are contractual agreements between property owners and a local government which were used in BC throughout the 1970s to negotiate the […]
The local housing market appears to be on the rise. While this is a good sign of our recovering economy, it is also an appropriate time for purchasers to remind themselves of some of the risks and their legal rights when purchasing a home. The maxim, “buyer beware” (or caveat emptor), applies to purchasing a […]
A landlord's reaction to a default under a commercial lease is usually determinative as to its ability to collect arrears and to recover future rent under the lease. This first installment of this five-part series will set out some of the important questions that landlords will be asked in assessing an appropriate course of action. The questions are as follows: 1. What is the default alleged? 2. Is there a written lease? 3. Have you [...]
Since the introduction of the Real Estate Development Marketing Act (REDMA), developers have had concerns that any minor or insignificant variance from the strict compliance of REDMA will permit a purchaser to avoid its obligations under a Purchase Agreement.
First reading has been granted to legislation that will amend the Real Estate Development Marketing Act (REDMA) and will bring greater certainty to the real estate development [...]
This post discusses the hundreds, if not thousands, of land contracts in British Columbia that may be negatively affected by section 73 of the Land Title Act, R.S.B.C. 1996, c. 250 and the line of legal authorities stemming from International Paper Industries Ltd. v. Top Line Industries Inc., 1996 CanLII 3340 (BC CA) ("Top Line").
In negotiating the settlement of family property and asset division in a family law matter, particularly in relation to the valuation of the family home, parties often argue about whether or not the parties should deduct real estate commissions when one party is looking to buy the other’s interest in the home. The idea behind […]
The Supreme Court of British Columbia rendered the Tang v. Zhang decision in 2012. That decision has now been overturned by the British Columbia Court of Appeal. In the case, Mr. Zhang entered into a Purchase Agreement with the Vendors and paid a deposit of $100,000. Mr. Zhang failed to complete on the purchase, and […]
A well-drafted and well-negotiated commercial lease is essential to the success of a Tenant’s business. Grey areas can lead to unexpected costs and even litigation down the road – this can be avoided by good drafting and making sure you think about all of the following prior to signing on the dotted line. Here are […]
Buying or selling property is a major undertaking. Markets fluctuate which can lead to very different strategies depending on whether it is a buyers or a sellers market. Real estate laws and practises frequently change. Deals often close quickly which can be both exciting and stressful. Our real estate lawyers help thousands of clients complete […]
Its not often that consumers get a break on new purchases. The Harmonized Sales Tax (HST) New Home Rebate is a BC government initiative which aims to compensate new home buyers for the added taxes associated with the implementation of the HST. The rebate is available for “newly constructed” homes or “substantially renovated” homes purchased as a primary place of residence. A “substantial renovation” [...]
The BC Property Transfer Tax (the “PTT”) is a value added tax payable by purchasers who acquire an interest in property.The actual tax rate is 1% on the first $200,000 of the fair market value of the property being transferred, plus 2% on the fair market value over $200,000. For example, a purchaser acquiring a property with a fair market value of $300,000 will have to pay an additional amount of PTT as follows:
This article addresses a particular challenge that a purchaser of real property in a foreclosure scenario faces with respect to its potential liability for tax (non-resident withholding tax) under section 116 of the Income Tax Act (Canada) (the “ITA”). Section 116 of the ITA makes a purchaser of real property liable to pay tax to the Canada Revenue Agency (the “CRA”) in an amount of 25% or 50% of the purchase [...]
The bleakest year in the U.S. foreclosure crisis has only just begun. U.S. Lenders are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006. About 5 million borrowers are at least two months behind on their mortgages and more will miss payments as they struggle […]
We have recently received a notice from the Superintendent of Real Estate advising of the issuance of two new Policy Statements which require developers to include further information in disclosure statements or amendments filed on or after November 1, 2007. We wish to draw these to your attention at this time in order to allow you to gather any information needed prior to filing your disclosure or amendment. We will be pleased [...]
The Land Title Office recently considered the filing of a “building” strata plan in which a number of the strata lots consisted of a bunkhouse measuring less than 100 sq. ft. Each of the bunkhouse strata lots had designated for their exclusive use LCP which was considerably larger than the strata lot, and in some cases the LCP area measured over 2,000 sq. ft.
On February 20, 2009, real estate developers (“Developers”) will become subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “Act”). Developers will be required to comply with the following record keeping and reporting obligations:
In an economy where credit is tight for certain purchasers of real estate, vendors may want to consider alternative financing arrangements in order to make their property more marketable. Vendors have two primary alternatives: to sell the property to the purchaser under an Agreement for Sale or to sell the property subject to a vendor take-back mortgage.
Pursuant to the Real Estate Services Act (the “Act”), as of January 1, 2009, individual realtors may now form personal real estate corporations. Advice from professional advisors, such as Accountants and Lawyers, is extremely important to ascertain whether incorporation is right for an individual realtor. Every realtor’s situation is different and it is important to remember that tax/legal advice may vary greatly depending [...]