Archive for the ‘Real Estate’ Category

Speculation And Vacancy Tax – Enforcement

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Categories: Blog, Real Estate, Tax
The Speculation and Vacancy Tax has been in force in British Columbia since 2018 and owners of residential real estate in certain designated areas must file a declaration setting out how they use the property and whether it meets one of the exemptions.

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The Underused Housing Tax: Do You Need to File a Return?

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Categories: Blog, Real Estate, Tax
The Federal Government’s new Underused Housing Tax came into effect on January 01, 2022 and, as a result, owners of vacant properties anywhere in Canada may be liable for the new tax.

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Recent Changes To The Prohibition On The Purchase Of Residential Property By Non-Canadians – What You Need To Know

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Categories: Blog, Real Estate
Amendments are being made to regulations for the Prohibition on the purchase of Residential Property By Non-Canadians.

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Federal Government Prohibits Non-Residents From Further Residential Purchases

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Categories: Blog, Business Law, Real Estate
The Prohibition on the Purchase of Residential Property by Non-Canadians Act, S.C. 2022, c. 10, s. 235 (the “Act”) was passed and came into effect on January 1, 2023.

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Update: Canada’s Foreign Home Buyer Ban & The New Federal Regulations

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Categories: Blog, Business Law, Real Estate
Further clarifications released for Canada's Foreign Home Buyer Ban and the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

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Canada’s Foreign Home Buyer Ban Explained – How It Works, Who Will Be Affected, And What We Still Don’t Know.

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Categories: Blog, Business Law, Real Estate
Beginning January 1, 2023, the federal government’s Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) will come into effect across Canada, resulting in what is being referred  to as the foreign home buyer ban.

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Expanding the Scope of Work: Renegotiate, Capitulate or Litigate

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It is an unfortunately common story in construction litigation: parties agree on a scope of work and price, the scope of work changes and the parties don’t go back to the bargaining table to reach an agreement on the new scope of work.

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Release of Consumer Information Brochure on Pre-Sale Purchases

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Categories: Blog, Real Estate
The Office of the Superintendent of Real Estate (OSRE) has released a new information brochure for consumers looking to purchase a pre-sale condo.

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They Used my Money to Buy that Property. Can’t Encumber it?

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It is a common question: when you lend someone money, they use that money to purchase land and the money is not paid back, can you somehow secure repayment by encumbering title to the land?

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Builders Liens: Can you Lien for Planned Work?

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Under the Builders Lien Act, a statutory right is created to filed builders liens for work performed and/or materials supplied to an improvement.

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Time to Build! Considerations for Residential Construction Contracts (for Both Builders and Landowners)

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Categories: Blog, Business Law, Real Estate
Over the past few months there has been a substantial increase in real estate activity.

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Only BC Courts Can Adjudicate on Real Property in BC

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There is frequent need for parties who obtain judgments in jurisdictions outside of BC to come to BC seeking to enforce their judgments against assets of judgment creditors held in BC.

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Lost Your Duplicate Certificate of Title?

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Categories: Blog, Real Estate
When you become the registered owner of real property in British Columbia that is free and clear of any financial encumbrances or agreements for sale, the Land Title Office has the ability to issue to you a "Duplicate Certificate of Title."

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Failing to Commit a Contract of Purchase of Sale for Real Property to Writing: A Potential Incurable Mistake

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As was discussed in my previous article, Property, Parties, Price – How Far the Court Will Go to Insert the 3 P’s of Real Estate into a Contract, it is critical that parties to a contract of purchase and sale for real property take the time to properly document the terms of their contract.

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COVID-19 Commercial Rent Relief

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Categories: Blog, Real Estate
The Federal Government announced today a new Canada Emergency Commercial Rent Assistance (CECRA) program intended to assist businesses that have been impacted by the COVID-19 Global Pandemic.

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Changes to REDMA Policy Statements – Extension of Early Marketing Period

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Categories: Blog, Real Estate
The Office of the Superintendent of Real Estate announced the release of Policy Statement 17, which temporarily amends Policy Statement 5 and Policy Statement 6 in relation to the nine month early marketing period.

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COVID-19 and Residential Tenancies: I am selling my rental unit to a buyer who would like to evict my tenant and receive vacant possession of the property. How will BC’s temporary eviction ban affect our transaction?

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Categories: Blog, Real Estate
As of March 30, 2020, there are changes to the BC Residential Tenancy Act and BC Manufactured Home Park Tenancy Act that will remain in force until our provincial state of emergency ends.

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COVID-19 and Residential Tenancies: Does My Tenant Have to Pay Rent?

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Categories: Blog, Real Estate
As of March 30, 2020, there are changes to the BC Residential Tenancy Act and BC Manufactured Home Park Tenancy Act that will remain in force until our provincial state of emergency ends.

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Can a Home Inspector Limit Their Liability?

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When would-be homeowners obtain home inspections, they place a great deal of reliance on the inspection report they receive.

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COVID-19 Issues: Frustration, Subject-To Clauses and Contracts of Purchase and Sale

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COVID-19 has resulted in a number of issues which put the performance of purchase contracts for real property at risk.

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Real Estate Purchases: When the Deposit Becomes Non-Refundable

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Subject to clauses, waiver or satisfaction of subject to clauses, deposits and when deposits become non-refundable are issues in contracts of purchase and sale that often become the subject of litigation.

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Construction Disputes: A Contractor’s Right to be Paid vs. Owner’s Claims for Defective Work

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It is one of the most common scenarios in construction litigation: work has completed, the contractor has rendered its final bill and an owner refuses to pay on the basis that there were delays or that there are defects or deficiencies.

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Assignment of a Contract of Purchase and Sale: Get it in Writing

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While a contract can be formed by any combination of communications and oral and verbal agreements, it remains the most prudent course of action to reduce a contract to writing to avoid any ambiguities about what has or has not been agreed to.

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Discharging a Builders’ Lien on Posting of Security: How Much is Enough?

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When a builders’ lien is filed, it can cause all manner of disruptions to financial, contractual and business relations

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Builders Liens: The Consequences of Less than Strict Compliance

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In my previous article, Builders Liens: Strict Compliance or Lose Your Lien, I explored how a family company lost its lien rights by making the mistake of pursuing its lien in the name of its principal rather than the company.

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Changes to REDMA: Developer Obligations for Assignments of Purchase Agreements come into Force

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Categories: Blog, Real Estate
The Province of British Columbia has approved the amendments to REDMA and the Real Estate Development Marketing Regulation in order to facilitate the disclosure of information to provincial and federal authorities

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Property, Parties, Price – How Far the Court Will Go to Insert the 3 P’s of Real Estate into a Contract

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The Statute of Frauds and Canadian jurisprudence require that for any contract of real property to be enforceable, it must contain an agreement with respect to three essential elements knowns as the 3 P’s: parties, property and price.

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What Happens When A Commercial Tenant Does Not Follow the Proper Procedures to Renew a Lease?

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Categories: Blog, Real Estate
A recent case from the Ontario Court of Appeal sets out an interesting chain of events.

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Contracts of Purchase and Sale: Removing Subjects

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Most people familiar with the purchase and sale of real property are familiar with subject to clauses, the full legal significance of such clauses can be a source of confusion.

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Which Contract to Use When Buying a Home on WFN Lands

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Did you know that there is a different contract that is used when buying and selling a home on Westbank First Nations Lands?

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Amendments to BC’s Residential Tenancy Act: What it Means for Property Owners Seeking Exemption from BC’s Proposed Speculation Tax

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Categories: Blog, Real Estate
Do you own recreational property in Kelowna or West Kelowna? Thinking of renting it to avoid BC’s proposed speculation tax, but still want to enjoy it yourself for some parts of the year?

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What One Has Earned – Courts Impose Compensation Where Parties Fail to Solidify a Contract

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Often times, parties will get to the edge of entering into contractual relations, but miss the steps required to form a contractual agreement.

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Public Bidding, Exclusion Clauses and Public Policy Concerns: Contracting Out of Liability for a Flawed Bidding Process

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As discussed in my previous article, Invitations to Tender: Why it is Important Both Bidders and Solicitors to Follow Proper Process, the solicitation of bids for public projects must follow a fair and transparent process.

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Commercial Leasing: Options for Landlords on Default

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Categories: Blog, Real Estate
A landlord entering into a commercial lease should consider the rights it wishes to have if the tenant is not performing its obligations.

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Commercial Leasing: Landlord Not entitled to 6 Months’ Future Rent on Termination for Default

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Categories: Blog, Real Estate
The BC Courts recently had the opportunity to consider the enforceability of a lease clause requiring a tenant to pay 6 months’ future rent on termination for breach of lease.

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Proposed Changes to REDMA: Developer Obligations for Assignments of Purchase Agreements

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Categories: Blog, Real Estate
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.

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Invitations to Tender: Why it is Important Both Bidders and Solicitors to Follow Proper Process

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Government and non-government actors that solicit bids for contractors for management or construction projects must follow a fair and transparent process for doing so.

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Time is of the Essence: When Late is No Better Than Never

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Contracts for the purchase and sale of real property and many other commercial contracts contain a clause that says in respect of certain or all contractual obligations that “time is of the essence.”

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Piercing the Corporate Veil in Construction: When Work is So Bad it Amounts to Fraud

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It can be frustrating for homeowners dealing with inadequate contractors that the controlling mind/primary owner of the company can hide behind their corporation to avoid personal liability.

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Superintendent of Real Estate Releases New Rules

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Categories: Blog, Real Estate
The BC Office of the Superintendent of Real Estate released new Real Estate Rules aimed at consumer protection, which will come into effect on March 15, 2018.

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Posting Security to Discharge a Builders Lien

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A builders lien can be an effective, powerful and inexpensive tool for helping unpaid contractors, subcontractors, suppliers receive payment for their materials and services.

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Proposed Real Estate Changes Result in Ban of Dual Agency

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Categories: Blog, Real Estate
Earlier this month the provincial government’s Office of the Superintendent of Real Estate published proposed rule changes to the Real Estate Services Act.

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Buying and Selling Property in a Hot Market: Flipping a Contract of Purchase and Sale

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It is most likely common knowledge that, for quite some time, the housing market in the lower mainland has been a highly competitive environment.

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Real Property, Legal Title, Equitable Title and the Torrens System: Presumptions as to Ownership

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Real property ownership in British Columbia is governed by a modified Torrens system for title registration.

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B.C. HOME Partnership Program

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Categories: Blog, Real Estate
On December 15, 2016 the British Columbia Provincial Government released information on the B.C. Home Owner Mortgage and Equity Partnership program.

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Party Wall Agreements – Something Old is New Again

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Categories: Blog, Real Estate
Party Wall Agreements have historically been used to manage the relationship between land owners with a common boundary and a wall down the middle of the property line.

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Cooling Markets, Addressing Risk, and Reducing Buying Power – New Mortgage Rules

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Categories: Blog, Real Estate
On October 3, 2016, Canada’s Finance Minister Bill Morneau announced changes to mortgage rules with the introduction of a “stress test.”

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Disclosure Requirements for Real Estate Development : Maybe Not Just Under REDMA

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Categories: Blog, Real Estate, Securities
When real estate developers consider disclosure requirements they commonly think of the obligations under the Real Estate Development Marketing Act.

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Mortgage Enforcement Issues

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Categories: Blog, Real Estate
In my foreclosure practice, typically the material circumstances have already been cast in stone by the time a client comes to see me about going to court.

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Property Disclosure Statements: Buyer Beware (Still)

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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.

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New Tax on Residential Property Transfers to Foreign Entities in Metro Vancouver

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Categories: Blog, Real Estate
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.

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Understanding the Foreclosure Process

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Categories: Blog, Real Estate
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.

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Real Estate Industry No Longer Self-Regulated

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Categories: Blog, Real Estate
Since 2005, the real estate industry has been self-regulated by the Real Estate Council.

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The Art of Restraint

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Categories: Blog, Real Estate
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.

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Dealing with Land? Write it Down

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In British Columbia s. 59 of the Law and Equity Act, R.S.B.C. 1996, c. 253 (the “Act”) essentially requires that contracts dealing with

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Losing Your Right to Recover: The Risks of Firing a Contractor for Deficient Work

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In the case of Jozsa v. Charlwood-Sebazco, 2016 BCSC 78 (CanLII) the Plaintiff, Mr. Jozsa, was a very experienced landscape designer hired by Ms. Sebazco to complete landscaping at her home.

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Notice of Interest under the Builders Lien Act – An Important Protection for Landlords

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Categories: Blog, Real Estate
Section 1 of the Builders Lien Act, S.B.C. 1997, c. 45 (the “Act”) defines an “owner” as anyone with a legal or equitable interest in land.

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Conflicts of Interest Explained – Strata Council Advice

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Categories: Blog, Real Estate
At one time or another, strata councils inevitably have to deal with questions or issues raised by its members relating to conflicts of interest.

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When Municipal Building Inspections are not Enough

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Too often, people mistakenly assume that because the home or renovations are done in accordance with architectural plans and within the requirements of the applicable municipality or district, that the home or renovations are sound.

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Buying a Sublease on Westbank First Nations Land: The Conveyance Process

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“Conveyancing” is the term your lawyer uses to describe the legal process of transferring an interest in land from the seller to the buyer.

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Are BC Tenancy Laws Applicable to Rent Disputes on First Nations Land?

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BC’s Manufactured Home Park Tenancy Act (“MHPTA”) will not apply to tenancy agreements on reserve lands where the landlord is an Indian or an Indian Band.

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Termination of Land Use Contracts

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Categories: Blog, Real Estate
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 […]

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Patent vs. Latent Defects and Caveat Emptor

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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 […]

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Default Under A Commercial Lease – Part One

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Categories: Blog, Real Estate
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 [...]

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Legislative Changes to REDMA: Bringing Certainty to Real Estate Development

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Categories: Blog, Real Estate
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 [...]

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Idle-O

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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").

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Real Estate Commissions Not Deductible In The Valuation of Family Property: The BC Court Of Appeal Weighs In

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Categories: Blog, Real Estate
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 […]

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Ask A Lawyer – Who Gets The Deposit When A Purchaser Fails To Close A Real Estate Transaction?

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Categories: Blog, Real Estate
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 […]

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Considerations for Tenants in a Commercial Lease

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Categories: Blog, Real Estate
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 […]

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New Home Buyer Alert – HST Rebate Available On New Homes

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Categories: Blog, Real Estate
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” [...]

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Home Buyer’s Beware. Property Transfer Tax Applies To Your Purchase.

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Categories: Blog, Real Estate
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:

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Foreclosures and Non-Resident Withholdings under the Income Tax Act

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Categories: Blog, Real Estate
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 [...]

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Are U.S. Foreclosures About To Increase?

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Categories: Blog, Real Estate
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 […]

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New Disclosure Statement Rules

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Categories: Blog, Real Estate
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 [...]

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LCP As Ancillary Use

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Categories: Blog, Real Estate
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.

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New Anti-money Laundering Legislation To Impact Real Estate Developers

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Categories: Real Estate
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:

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Financing Real Estate Purchases in a Tight Credit Market

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Categories: Blog, Real Estate
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. 

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Realtors can Incorporate as of January 1, 2009

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Categories: Blog, Real Estate
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 [...]

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