January 27, 2008
Dual Agency
Dual agency occurs when a real estate agent is representing both buyer and seller in the same transaction. Since the agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent.
If you find yourself involved in a dual agency relationship, before receiving an offer both you and the other party will be asked to consent in writing to this new limited agency relationship.
This relationship involves the following limitations:
- The Agent will deal with the Buyer and the Seller impartially.
- The Agent will have a duty of disclosure to both the Buyer and the Seller except that;The Agent will not disclose that the Buyer is willing to pay a price or agree to terms other than those contained in the Offer, or that the Seller is willing to accept a price or terms other than those contained in the Listing;The Agent will not disclose the motivation of the Buyer or the Seller to sell unless authorized by the Buyer or the Seller;
The Agent will not disclose personal information about either the Buyer or the Seller unless authorized in writing;
- The Agent will disclose to the Buyer the defects about the physical condition of the Property known to the Agent.
For more information on dual agency see »
January 24, 2008
Toronto tax hikes
Ontario property owners will see a double-digit increase on their assessments because of the hot housing market and because the province’s property assessment freeze has lifted, an expert warns. Maureen O’Neill, president of the Toronto Real Estate Board, says the median price of a detached home in the GTA has increased about 20 per cent since the last assessments were done in 2005.
Three years ago, the median price of a detached home in the GTA was $335,000. Today, it’s $403,000, O’Neill said.
"Condominium and apartment owners will also see a whopping 27 per cent increase in their property assessments"
"In 2005, the median price of a condo or apartment was $192,000. Today, it’s $245,000", O’Neill said.
"They’ve seen appreciation and therefore they’re going be taxed accordingly. Property owners are going to experience quite a dramatic shock.”
Homes in east Toronto will be particularly hard hit, as assessments will rise about 31 per cent.
The province’s three-year freeze on assessments lifted on January 1. The Ontario government, however, has introduced a plan to spread out any assessment increases over the next four years.
NDP Leader Howard Hampton, however, said the government’s strategy, including the freeze, has made the housing assessment ordeal worse.
“There’s a big problem here. The property tax is not based upon someone’s income, it’s not based on my ability to pay,” Hampton said.
The Municipal Property Assessment Corporation came under fire years ago for conducting inaccurate assessments. The agency performed 500,000 on-site inspections last year in its bid to boost accuracy.
Property owners will be receiving their new assessments in August and September.
January 22, 2008
Toronto’s Hot Spot
The Toronto Real Estate Board’s district E01 is bounded by Danforth Avenue to the north, Lake Ontario to the south, the Don Valley Parkway to the west and Coxwell Avenue to the east. “In Beaches-Riverdale, there were 63 home sales in December 2007 versus 36 in December 2006 so that’s a 75 per cent increase,” said Maureen O’Neill, board president.
This figure was primarily fuelled by the sale of semi-detached homes, which are abundant in south Riverdale and Leslieville. “Semi sales are up by 58 per cent from December 2006 to December 2007 and attached row houses more than doubled in sales,” she said.
Without a doubt, the primary reason for the explosive number of transactions in the area is due to the City of Toronto’s new land transfer tax, which comes into effect February 1. The new Toronto tax almost doubles the fees for homeowners as the province already has its own land transfer tax in place.
“It’s that obscene new municipal land transfer tax. Our November and December market just revved right up because people want to save that tax,” O’Neill said.
E01 was already doing very well as many of the southern communities in the district are evolving from somewhat seedy working class neighbourhoods dominated by gas stations, auto body shops and dollar stores. Today, E01 is an area full of trendy “destination” communities that feature cool restaurants, cafes and coffee houses along their main streets.
O’Neill said that city living is also growing in appeal as home buyers have had enough of two-hour-long commutes and rising energy costs. “There’s even a DVD called The End of Suburbia. People want urban real estate,” said O’Neill, whose organization publishes monthly market reports and bimonthly news releases on Toronto real estate trends.
“Places like Leslieville are gaining great value but it’s still affordable.” The number of renters in E01 is also on the decline meaning that more people are buying homes and taking pride of ownership in their community.
“It’s an affordable area that’s still close to downtown compared to other neighbourhoods west of Yonge Street,” she said, admitting the cost of buying a home in the area is also on the rise. “It’s a really hot area and people are seeing the value of the neighbourhood.”
The neighbouring E02 district — The Beach — bounded by Danforth Avenue to the north, Lake Ontario to the south, Coxwell Avenue to the west and Victoria Park Avenue to the east – also has a very active real estate market. Last year, a biding war upped the price of one lakeside home by as much as $600,000 over the asking price. The Beach’s lively housing market has a positive effect on its community to the west.