Toronto Condo and Real Estate Blog

Younger Canadians are looking at condos as more than just starter homes — many are willing to stay and raise families in them. That’s one of the findings of a recent Ipsos Reid survey conducted on behalf of TD Bank which surveyed 2,125 adults aged 25 to 59 living in Toronto, Vancouver, Montreal, Calgary and Ottawa.

Respondents were asked if they would consider living in a condo if they were planning to start a family and raise children. Canadians aged 25 to 44 indicated they are much more likely to consider raising a family in a condo than are those 45 to 59 (22% vs. 13%).

In the survey, conducted from April 27 to May 12, people 25 to 34 were the most likely to agree with the statement “Living in a condo is suitable for families with very young children” (46% vs. 40% among those aged 35 to 59).

“Attitudes towards families and condos may be shifting among younger people in urban centres,” said Chris Wisniewski, group product manager, real estate secured lending, TD Canada Trust. “Younger Canadians who bought condos as their first step into the housing markets have grown accustomed to the numerous benefits of the condo lifestyle, and many are considering extending them into the next phase of their lives.”

Condo popularity is growing.

The survey also found 35% of those polled are likely to consider purchasing a condominium as their primary residence. Their reasons:

* condos are easier to maintain (69%)

* affordability (57%)

* attracted to the “condo lifestyle” (45%)

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Contact the Jeffrey Team for more information - 416-388-1960

Finding the perfect Toronto condo or house doesn’t happen in one day. There are a number of things you can do to simplify the process, including defining financial parameters, potential neighbourhoods and the desired features in your next home.

Do you need an extra bathroom, a garage, a fenced backyard, or lower utility bills? Do you want a fireplace, a short drive to work, or maybe minimal yard work? Once your list is complete, decide what is most important to your lifestyle.

Then it’s location, location, location. Where you live in Toronto affects your day-to-day living and is one of the most significant influences on value. Your choice of location may be limited by the price you can afford. Even so, make sure you consider such things as distance to work, schools, shopping and entertainment.

What type of property do you want? A single-family detached home is attractive to many people because it typically provides more living space and land. On the other hand, a Toronto condo may be a more appropriate choice for you, with an emphasis on maintenance-free living and affordability. With the recent boom in Toronto condos, this seems a very popluar option.

A Toronto Realtor can help you analyze all of these buying issues. A local real estate agent working as your buyer’s agent works to find the connection between homes available in the market and the needs and financial capacity of you, the buyer. Talk to and compare the services of real estate agents to help you navigate through this complicated business transaction. Be comfortable and confident with the real estate agent you are selecting as your business partner.

As your real estate agent, the Realtor owes you the duties of utmost care, integrity, confidentiality and loyalty. Make sure you discuss agency with your Realtor. In most provinces, if a Realtor is showing you homes in the Toronto area, they are automatically deemed to legally be your real estate agent, and owe you all of the associated obligations.

A real estate agent will use various tools to try and find properties that meet your specifications including the MLS service. One of the important search tools will be the Toronto MLS system. By sitting down at a computer the real estate agent can key in your needs, choice of neighbourhoods and price range and immediately come up with a list of suitable properties available through the MLS system. You can also view listings posted to the national mls.ca web site. However, the national mls.ca site is not updated as regularly as the Toronto MLS system - which means you are better to let your real estate agent do the main searching.

When you select a property and decide to visit a house or condo, there are many things to consider. Does it have all the features you wanted? Is the neighbourhood what you expected? Try to picture your favorite furnishings in a room. Remember all of the technical considerations:

* what type of wiring does the house have?
* what type of heating system does it use?
* what about the roof and foundation?
* what condition are the windows in?
* what about the plumbing?

There are other things to look at as well. If you don’t have time or don’t feel comfortable doing it, home inspection services are available for a reasonable fee. Having a qualified home inspector look at the house is always a good idea. The older the home, the greater the need for professional inspection.

Once you find the Toronto house that you want to make your new home, work with your real estate agent to develop an offer. In the offer, you should specify how much you’re willing to pay. State when the offer expires, and suggest a closing date for the transaction. You can also propose some conditions on the offer. Some common types of conditions are:

* getting a suitable mortgage (include the amount, interest rates and any other figures you feel important)
* selling your current home (the seller may continue to look for a buyer, but will give you the right of first refusal)
* the seller providing a current survey, or a “real property report,” showing the location of the house on the property owned by the seller and that there are no encroachments
* the seller having title to the property (your lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions)
* if there is a septic system, the seller should have a health inspection certificate, stating the system meets local standards
* if you still have any doubts about the home’s safety and construction, you may wish to make the purchase conditional on an inspection by a qualified engineer
* any inclusions - basically, what stays and what goes.

You will need to present a deposit along with your offer. An appropriate deposit will show your good faith to the seller. The seller’s real estate agent is bound by law to bring all offers to the seller’s attention.

After your offer is accepted and all the conditions are met, the offer becomes binding on both sides. If you walk away from the deal at that point, you may lose your deposit - and you may also be sued for damages! Make sure you understand and agree with all of the terms of the offer before signing.

No matter what type of home or property you’re buying, plan on some extra expenses. In Toronto, you will have to pay the Ontario land transfer tax (a sales tax on property). See our land transfer tax calculator for how to calculate the amount.

You may also have to pay:

* a mortgage broker’s fee
* an appraisal fee
* surveying costs (if the seller couldn’t come up with a current survey)
* a high-ratio mortgage insurance premium
* an interest adjustment (mortgages are normally calculated from the first of each month: if your closing date is the same as the beginning of your mortgage, there will be no adjustment. However, if your closing date is July and you move in on June 15, those last 15 days are the interest adjustment period. Your lender will expect you to cover the cost of the interest during that time).

You’ll also have to reimburse the seller for the unused portion of any prepaid property taxes or utility bills. As well, you must also pay any legal fees to your lawyer for handling your end of the sale. Be prepared to furnish proof to your lender that you have insured your new house as well.

Before the your new Toronto property can formally change hands, there are still a few things to do. On or before closing day, your lawyer and the seller’s lawyer will arrange to transfer title of the property from the seller to you. The mortgage money will be transferred to your lawyer’s trust account, and then to the seller, and your lawyer will bill you all additional expenses such as land transfer taxes or outstanding legal fees.

At this time, be sure to check with your lawyer that everything is as stated in the offer-to-purchase. Once you’re satisfied and the keys to the front door are in your hands, there’s nothing else to say… except welcome home!

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Contact the Jeffrey Team for more information - 416-388-1960

Excerpt from an article by Bob Aaron

A group of unhappy condominium owners has commenced a class action against the developer of their Thornhill condominium project, claiming that the common expenses shown in the sales materials were significantly understated.

Between 1999 and 2002, Cantertrot Investments was marketing condominium units in The Residence of Beauclaire, on New Westminster Dr., in Thornhill.

Before entering into the agreements, purchasers received a flyer indicating that maintenance fees for the units were “estimated at $0.32 per square foot,” including utilities, visitor parking, concierge and one locker.

Before signing agreements, the purchasers also received a disclosure statement as required under the Condominium Act. The statement indicated that $413,000 were the “total funds required” to be contributed by all owners in the form of common expenses during the first year following registration of the condominium.

Based on the proposed budget and the draft condominium declaration, monthly common expenses for units in the project would range from $171.42 to $421.65, depending on unit size.

The condominium declaration was registered on June 28, 2002 and, by law, the developer was responsible for any shortfall between the proposed budget and the actual budget for the first year of operation.

A year later, the new board of directors reviewed the finances of the building and had no choice but to approve a budget showing increases of more than 62 per cent in common expenses for the second year of operation.

Even after the increase, the new budget implemented a deficit of $48,000, which was funded by a special assessment of about $15 per unit each month for four years.

In 2004, a group of the original purchasers retained Samuel Marr and Vadim Kats, of the Toronto law firm, Landy Marr LLP, to launch an intended class action against the developer, its principals and the real estate brokers involved in marketing the condominium units.

In order to start a class action in Ontario, a judge must be satisfied that certain tests are met and the legal proceedings would be more efficient if handled under one umbrella rather than having dozens of individual plaintiffs each commence their own lawsuits.

After months of legal manoeuvring by both sides, Superior Court Justice Maurice C. Cullity recently certified the action as a class proceeding, allowing it to proceed with two plaintiffs - Solly Lewis and Hersl Kalif - representing themselves and those with similar interests.

The allegations in the claim of the plaintiffs is that, as a result of the alleged understatement of common expenses, the original buyers from Cantertrot suffered increased maintenance fees after the condominium’s first year, loss of the services that had to be cut back to keep the budget in line, and diminished property values.

Read the full article

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Contact the Jeffrey Team for more information - 416-388-1960