Guest Blog: Erica Vincelli, Mortgage Agent with The Mortgage Advisors

Ten DON’Ts When Buying a Home
or Applying for a Mortgage

What not to do can be just as important as what you must do when it comes to mortgages. Think of your application as a snap shot in time. It is a picture of your current financial profile and how you were approved for said loan. Any changes made prior to your profile made prior to your funding date may impact your approval. This doesn’t mean you can’t use your credit card between now and the closing date but what it does mean is don’t make any drastic life changes during your approval period. Here are some of the most common examples:

  1. DO NOT change jobs,become self-employed, or quit your job.
  2. DO NOT buy a car, truck,or van (or you may find yourself living in it!).
  3. DO NOT use charge cards excessively or let your accounts fall behind.
  4. DO NOT buy furniture with money set aside for closing.
  5. DO NOT omit debts or liabilities from your loan application.
  6. DO NOT stop paying your rent or current mortgage.
  7. DO NOT originate any inquiries on your credit.
  8. DO NOT make large deposits without first checking with your Mortgage Broker.
  9. DO NOT change bank accounts or transfer funds back and forth between accounts.
  10. DO NOT co-sign on a loan for anyone.

For more great mortgage tips or to discuss your mortgage needs, please call Erica Vincelli today!

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The Smart Seller

As you may know, there is a lot of planning involved with putting your house up for sale. Thinking of selling in the Spring? Now is the time to start preparing your home! 

Here are some ways you can start/ease into the process:

  • Start decluttering so that buyers can see the potential of the house, not just stuff.
  • Think about starting minor updates and fixes, along with “nice to haves” (paint, flooring, hardware) to ensure you focus on the most important tasks to get the most ROI.
  • We will be happy to provide you with paint colour options to help brighten and make a room feel more spacious.
  • To ensure that every room buyers walk into appear spacious and welcoming, we provide staging furniture as well as suggestions on furniture placement and styling!
  • We also have our recommend resources and help (contractors, painters, etc.) should you require additional assistance.

A well-prepared and well-shown house is no longer something that you should do, it is something that you must do in order to attract the right buyer!

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Stick with these Colours if you want your Home to Sell!

Wait!! Don’t put up that “For Sale” sign just yet. A fresh coat of paint in the right color may help sell a home for more money.  We want you to get the most bang for your buck so check out the seven ways to incorporate magical money-making hues into your home (according to a Zillow Analysis).

A Soft Grey-Blue Kitchen

Paint your kitchen (cabinets or walls!) a soft grey-blue.  The study found that buyers would pay up to $1,809 more for a home with a soft grey-blue kitchen than one in any other colour. 

A Pale Blue Bath

Homes with light pale blue to soft periwinkle blue bathrooms sold for $5,440 more than expected!

A Neutral-Coloured Living Room

Homes with light beige, pale taupe or oatmeal-colored living room walls sell for $1,926 more than expected.

A Cadet Blue Bedroom

Homes with light cerulean to cadet blue bedroom wall colors can come with a $1,856 premium.

A Slate Blue Dining Room

Homes with slate blue to pale gray blue dining rooms also sold for more money — $1,926 more on average than homes with white dining room wall colors.

A Greige Exterior

A home’s exterior color may also have an impact on its sale price. Homes painted in “greige,” a mix of light gray and beige, sold for $3,496 more than similar homes painted in a medium brown or with tan stucco.

Navy Blue Front Doors

For a pop of colour, homes with front doors painted in shades of dark navy blue to slate gray sold for $1,514 more.


https://www.zillow.com/blog/blue-kitchens-sell-for-more-216631/

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Condominiums – 15 Things To Know Before Buying – Part 4

15 Things To Know Before Buying A Condominium Continued…

11. What are Common Expenses? (Monthly Maintenance Fees)
These fees provide the condominium with the cash necessary to maintain the common elements, fund the reserve accounts, pay for property management and generally operate the Corporation. Upon purchasing your unit, you will be responsible for making common expense payments to the condominium corporation. The amount can vary depending on the size of the condo and the amenities.

12. What is a Reserve Fund?
The Reserve Fund is a trust fund established by the condominium corporations to anticipate costs for major repairs to the capital components of the condominium’s common elements.

13. Do you need Insurance?
The condominium corporation is responsible for insuring the common element areas and the unit. This insurance coverage includes public liability for those areas, however, you are responsible for obtaining your own insurance for your contents and any improvements that have been made to the unit since it was first constructed. You are also responsible for obtaining personal liability insurance for your unit – make sure you obtain a proper condominium unit insurance package and NOT a tenant package.

14. Can you make changes to your unit and the common areas around it?
You can decorate or renovate your unit, although the condominium may have rules about the time of day that such renovations can take place. In some cases, you may need permission from the Board of Directors in advance.

15. What else should you ask about?

  • Utilities: In some condominiums, utility charges and cable t.v are included in the common expense – ask the Vendor or the Manager of the building what might be included.
  • Parking: Almost all condominiums have restrictions on the availability of parking. Ask the Vendor, Manager or someone on the board.
  • Pets: Some condominiums prohibit owners from having pets or have rules governing the number, type or size of pets. If you have pets, ask your lawyer or realtor to verify that pets are allowed.
  • Maintenance and Repair: In most condominiums the corporation is fully responsible for the maintenance and repair of the common elements. In some, however, these duties may be shifted back to the homeowner to some extent.
Thinking of purchasing or selling a condo?

contact Terra Firma Real Estate at 613-721-7434!

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Condominiums – 15 Things To Know Before Buying – Part 3

15 Things To Know Before Buying A Condominium Continued…

 7. Get a Status Certificate
Purchasing the “Status Certificate” allows you to find out a great deal of information about a condominium and should purchased before you firm up the offer. They cost $100 and are worth it. The easiest way to do this is to have you agent make the offer conditional for 10 days to allow you to obtain the certificate, review it with your lawyer and be satisfied with its contents and attachments. The certificate will contain the following information, among other things:

  • confirmation of the amount of the reserve fund
  • whether the unit you are buying is up-to-date for common expense payments
  • whether there are any large increases in monthly common expenses being considered
  • whether there are any special assessments being considered
  • whether the corporation is a party to any legal actions
  • a copy of the current budget
  • the most recent audited financial satements
  • copies of the condominiums Declaration, By-laws and Rules

8. The Agreement of Purchase and Sale – Older Condominiums
Local or provincial real estate associations have developed standardized forms specifically designed to be used when purchasing a condominium. Ensure your offer uses the correct document for condominiums and contains a condition allowing you time to get a status certificate. Being pre-qualified for the loan before you make an offer will allows you to be prepared in know what you are able to afford and offer.

9. The Agreement of Purchase and Sale – New Condominiums
Most agreements contain provisions setting out any additional costs may be charged back to the buyer at the time of final closing, called “adjustments”. It may be possible to negotiate some of these charges. These provisions must be read carefully as they can easily increase your purchase price. Make sure to revise this with your lawyer.
Be prepared for additional deposits before you firm up your offer. Make sure you have those funds available.
In a new condominium, it is not unusual for you to be asked to take occupancy of the unit months before the developer is in a position to transfer the ownership of the unit to you. During this “occupancy period” you must pay an occupancy fee to the developer. When budgeting for your purchase, you should ensure that you have at least three – six months worth of occupancy fees available.

10. Disclosure Statement – New Condominium
This is a package of information about a new condominium that is to be built or is under construction. It contains much of the same information as the Status Certificate. When buying a new condominium unit from a developer, a purchaser is guaranteed a 10 day “rescission” period, within which they can review the disclosure package. If you and your lawyer are uneasy about anything within the document, you can rescind your offer to purchase and receive your deposits back.

Stay tuned to read more about what to know before buying a condo!

For further inquiries, contact Terra Firma Real Estate at 613-721-7434!

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Condominiums – 15 Things To Know Before Buying – Part 2

15 Things To Know Before Buying A Condominium Continued…

4. What is the Condominium Act, 1998?
When you purchase a condo unit, you automatically become subject to the provisions of the Condominium Act, 1998, which governs all condominiums in Ontario. The current Act includes provisions that, among other things provides for penalties for non-payment of common expenses or violations of Corporation Rules and Regulations. The Act ensures that the condominium has sufficient funds to operate, that everyone pays their fair share of that cost and obeys the rules.

5. What are Declarations, By-Laws and Rules? (Should you care?)
The Declaration is a document that will contain certain mandatory provisions as legislated by the Condominium Act 1998 such as:

  • specifications of the boundaries of your unit
  • the percentage use to calculate monthly common expenses for your unit
  • other restrictions and obligations that may affect the use of your unit

By- Law’s set the basic organizational and administrative functions of the Corporation, including the duties of its Board of Directors and officers. The by-laws also make provisions for calling owners’ meetings and for the election and qualification for the Board of Directors.

All condominium corporations have rules which form the standards of behavior for the community. These govern the day-to-day use of your unit and the common elements.

You have the right to insist that the Declaration, By-laws and Rules be complied with by all other unit owners, tenants or other residents of the condominium complex and, yes, you should care because the other owners can insist that you abide by them as well.

6. Who are the Board of Directors and what is a “Property Manager”?
The majority of condominiums in Ontario are governed by an elected Board of Directors. The board members are usually other owners in the condominium. They are responsible of administrating the condominiums’ business and financial affairs.
All condominiums are administered by an elected board of directors. However, many condominiums hire professional property management companies to assist them. The Manager’s role, among other things, is to oversee the day to day operation of the Corporation, see to the collection of common expenses, advise the Board of Directors, assist in the preparation of budgets, and attempt to enforce the Rules.

Stay tuned to read more about what to know before buying a condo!

For further inquiries, contact Terra Firma Real Estate at 613-721-7434!

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Condominiums – 15 Things To Know Before Buying – Part 1

1. Are you ready for the condominium lifestyle?
While some people may be concerned about restrictions that sometimes apply to the condominium lifestyle, there are many advantages as well, including

  • relief from maintenance and repairs
  • enjoyment of recreational facilities
  • security
  • a sense of community
  • ability to exercise some control over your living environment by utilizing your voting privileges

2. Knowledge is Key!
Finding a realtor who is experienced and knowledgeable in condominiums is extremely valuable. Retain a realty lawyer who is also familiar with condominiums before you make an offer. You will only have a matter of days to firm up a conditional offer and you can waste precious time searching for one who can help you.

3. Know what kind of condominium you are buying
The new Act now recognizes 5 different types of condominiums which are briefly described as follows:

1. Common Elements Condominium: this is a condominium where there are no “units”. Instead an interest in the common elements is attached to an adjoining, piece of land referred to as a “Parcel of Tied Land” (POTL). The POTL is usually a freehold detached home.
2. Vacant Land Condominium: this is a condominium in which there are both common elements and “units” however, the units are actually created as a piece of vacant land, similar to buying a vacant lot in a subdivision, upon which the owner will have a house constructed. The “unit” would then include all of the land in its boundaries as well as any dwelling units or other structures constructed on it.
3. Leased Condominium: this is the condominium in which the ownership of the land upon which the condominium buildings are constructed will remain with a developer or be owned by investors. The owner then lease the land and building to the condominium corporation for a minimum initial term of 40 years. Purchasers will then acquire a leasehold interest in their unit. The corporation will pay rents to the owner form the common expenses.
4. Phased Condominium: is a condominium corporation that is built in stages. When stage one is complete, a condominium corporation is then registered to include the units that have been constructed. The developer can then build the next stage. Once it is completed, it is then merged into the original corporation and so on until all of the condominium units are completed.
5. Standard Condominium: essentially, a standard condominium refers to all condominiums other than the ones noted above.

Stay tuned to read more about what to know before buying a condo!

For further inquiries, contact Terra Firma Real Estate at 613-721-7434!
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GUEST BLOG: New Environmental Obligations Affecting Condominiums in Ontario

GUEST BLOG:

We have asked Nancy Houle & David Lu with Davidson Houle Allen LLP Condominium Law to write this blog post to share their knowledge and expertise with you!

We are seeing governments enact policies with the goal of environmental sustainability in many aspects of our lives. Condominiums in Ontario are no exception. In Ontario, some of the recently enacted changes include:

  1. creating a procedure in which condominiums, or owner(s) can install electric vehicle charging stations in the common elements;
  2. requiring condominiums of a certain size to report their energy consumption to the provincial government; and
  3. allowing clotheslines and clothes trees to be installed at condominiums under certain conditions.

EV Charging Stations can now be installed in Condominiums

Under the newly amended Condominium Act, 1998 (the “Act”), a Condominium Corporation could, at its expense and without an owners’ meeting, install an electric vehicle charging station if:

  1. The estimated cost of the installation is less than 10% of the Condominium’s annual budget; and
  2. The Condominium’s Board of Directors believe the owners would not regard the installation of the charging station to be a material reduction or elimination of their use or enjoyment of the condominium property.

The new provisions and regulations under the Act also allow an owner to apply to install a charging station (at the owner’s expense) at their condominium.

  1. The Board would be required to approve the owner’s application unless the installation:
    1. Is contrary to the requirements of a statute or regulation
    2. Negatively affects the structural integrity of the condominium property or assets of the corporation; or
    3. Poses a serious health and safety risk to an individual or a risk of damage to the condominium property or assets of the corporation.

In addition to the Act, Condominiums also have new obligations under the Green Energy Act, 2009.

Condominiums must soon Report their Energy Consumption

One of those obligations is to report water, electricity, and gas consumption. The dates when these new obligations begin are as follows:

  • Starting on July 1, 2019, Condominium Corporations that are in buildings of at least 100,000 square feet must submit their first report.
  • Starting on July 1, 2020, Condominium Corporations that are in buildings of at least 50,000 square feet must submit their first report.

All areas of the building, including the common areas, are included in the square footage calculation. Corporations in multiple structures find their gross floor area by totaling the square footage of all the structures.

To submit a report, Corporations must first obtain their assessment roll number, property code, and an Ontario Energy Water Reporting and Benchmarking ID (which is obtained from the Ministry of Energy). The Corporation must then register an account through Energy Star’s Portfolio Manager website. Any energy consumption reports would be submitted there.

Clotheslines and Clothestrees can now be installed in certain circumstances

The Green Energy Act also allows clotheslines and clothestrees to be installed even if the Condominium Corporation has a rule prohibiting them.

However, owners can only install clotheslines or clothestrees if the installation:

  1. does not impede safety or access to and from the building
  2. takes place in an area where the unit owner has exclusive use
  3. is installed directly on the ground, or on a deck/platform that is acceptable to and no higher than the ground floor; or on a step stool or similar device that is directly on the ground or a deck/platform (as described above).

These new obligations are certainly arriving at a challenging time as the Condominium industry in Ontario grapples with the many changes that have come through the pipe. Hopefully, as everyone gets more familiar with the new processes and procedures, the new obligations will become a routine part of regular condominium obligations.

If you have any further questions regarding Condominiums please contact us at 613-721-7434/info@terrafirmare.ca or Nancy Houle at 613-231-8222/nancy@davidsoncondolaw.caFacebooktwitterlinkedin

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