What is Title Insurance?

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Title insurance is supposed to provide comprehensive insurance coverage for the certain of the title-related risks associated with home buying. Risks such as zoning issues, claims of mental incapacity, lack of an up-to-date survey and the legal services provided by your lawyer (i.e. title certification). It insures against such defects in title, which may occur from conflicting ownership claims, liens, undischarged mortgages, consents and the like. It will cover compliance and access issues i.e. work orders, permit violations, fences, boundaries, tenancies, rights of way, certain easements etc. It is supposed to be in force for as long as the purchaser or his/her heirs own the property. Title insurance will, purportedly, outlive the certification of your lawyer, whose insurance stops if he or she dies or stops practice.

OK, first of all title insurance provides an insurable title not necessarily a marketable one. What does this mean? It means that if something is wrong and a prospective purchaser will not accept a new title insurance policy at no cost, and provided the insurer does not go broke (this has happened in recent memory), the insurer will pay out in accordance with the policy or will, if possible, repair the defect. In the great scope of life I guess eventually it won’t matter what the title says if people are content to rely on insurance coverage. I sure wouldn’t be happy, but then again most people are very cost conscious and why pay for all the expensive parts of a full search if you can just buy a policy. Most, if not all, of the title insurance companies currently operating in the GTA are the same U.S. title insurers that dominate the market south of the border and have seen the possibilities and moved to Canada.

One of the big advantages to title insurance relates to older homes registered under the registry system, where a 40-year search to a good root of title and adjoining property search is still required (certain searches such as corporate status, escheat and in some instances zoning and executions can be eliminated with title insurance) and for certain new-home deals. In addition TitlePlus has made arrangements with certain builders to insure whole subdivisions. TitlePlus then took on as many of the certified user lawyers as wished to participate and set a low priced, title insurance deal with an all-in disbursement figure. All of the lawyers had to take a bunch of courses and go through a long, long, long seminar before we were able to get the software to be part of this.

Title insurance has its place, but I personally would only take the TitlePlus insurance offered through the Law Society of Upper Canada. Their loyalty and mandate is to protect the public and to govern lawyers. As a consumer, these two facts would certainly make me feel better.

In conclusion every lawyer has an obligation to make you aware of your title insurance options so you can choose which way you want to go. Think through your options carefully and choose wisely.

Jan 12, 2009 / Brampton Real Estate

2,600 sales in December

TORONTO, January 9, 2009

–Toronto Real Estate Board Members reported 2,577 sales in December 2008, compared to the 4,646 recorded during the same month in 2007, and the 4,447 recorded in December 2006, TREB President Maureen O’Neill announced today. “Sales for the whole of 2008 were 74,552, compared to the 93,193 recorded in 2007, and the 83,084 recorded during 2006.”

The average price in December of 2008 came in at $361,415, compared to $394,931 in 2007, and $336,217 in December of 2006. For 2008 as a whole, prices averaged $379,347, compared to the $376,236 recorded in 2007, and the $351,941average recorded in 2006.

The City of Toronto (416) recorded 1,105 sales in December, compared to 2,302 in December 2007 and 1,827 in December of 2006. For all of 2008, there were 29,878 sales, compared to 39,052 in 2007 and 34,404 in 2006. The average price in the city was $387,482 compared to the $425,842 recorded in December of 2007 and the $350,139 recorded in December 2006. For all of 2008 the average was $410,271. In 2007 the comparable figure was $412,480, and in 2006 $378,776.

The 905 area saw 1,472 sales in December, from 2,344 in December of 2007 and 2,620 in December of 2006. For all of 2008, there were 44,674 sales in this region, versus 54,141 in 2007 and 48,680 in 2006. The average price in the 905 was $341,847 in December, compared to $360,307 in 2007 and $326,509 in 2006. For all of 2008, the average was $358,665, as compared to $350,092 in 2007 and $332,976 in 2006.

Breaking down the total, 993 sales were reported in TREB’s 28 West districts and averaged $338,855; 473 sales were reported in the 14 Central districts and averaged $479,095; 491 sales were reported in the 23 North districts and averaged $381,975; and 620 sales were reported in TREB’s 21 East districts and averaged $291,488.

Median Price

The median price for December was $305,000, compared to $320,950 in 2007 and $290,000 in 2006.
The Median for the year as a whole was $325,000, as opposed to $318,200 in 2007 and $299,000 in 2006.

Source: Toronto Real Estate Board

Jan 10, 2009 / Brampton Real Estate

Brampton real estate – Past sales

Below are some Brampton homes I sold recently where I represented the sellers and saved them a bundle of money! If you have Brampton real estate to sell or looking to buy a home in Brampton please click here to contact me for great service and affordable commissions. I return all calls within 15 minutes!

Brampton sale
Brampton real estate by Mclaughlin / Wanless. It sold for 98% of asking price in 17 days. Owners saved $5,820.

Brampton real estate by Sunny Meadow / Sandalwood. House sold for 99% of asking price in 2 days.
Owners saved $4,920.

Brampton real estate by Edenbrook / Bovaird. It sold for 98% of asking price in 33 days. Owners saved $4,600.

Brampton real estate by Edenbrook / Sandalwood. It sold for 99% of asking price in 12 days. Owners saved $5,400.

Brampton real estate by Main St / Queen St. It sold for 97% of asking price in 25 days. Owners saved $4,575.

Brampton real estate by Chinguacousy / Wanless. It sold for 98% of asking price in 28 days. Owners saved $4,695.

Brampton real estate by Rutherford / Williams Pkwy. It sold for 102% of asking price in 16 days. Owners saved $4,220.

Brampton real estate by Creditview / Wanless. It sold for 99% of asking price in 38 days. Owners saved $5,430.

Brampton real estate by Hwy 7 / Mcvean. It sold in 4 days for 97% of asking price. Owners saved $4,575.

Brampton real estate by Torbram / Sandalwood. It sold in 2 days for 99% of asking price. Owners saved $5,475.

Savings are based on 5% commission. Important note: These were all my listings where I was representing the sellers.

Click here for more past sales

Jan 5, 2009 / Brampton Real Estate

Brampton home for sale – #10

This house is located by Edenbrook and Sandalwood in Brampton. It is approx 1500 sqft with ceramics and hardwood on the main floor. 5 appliances are included along with the Central A.C unit. The 3 bdrms are very spacious and the master bedroom comes with a 4pc ensuite and a walk-in closet. Premium paid by sellers to be right in front of a park.

This is one of the most sought after neighbourhoods of Brampton – very family oriented. Walk to schools and parks. Asking only $305,000. Identical house few months ago was sold for $315,000. House is vacant and ready for immediate possession. Virtual tour and more pics to follow very soon.

For more info on this great Brampton house drop me an email. Thanks.

Jan 4, 2009 / Brampton homes for sale / Brampton Real Estate

Georgetown real estate stats – December 2008

Number of houses sold in Georgetown in December 2008 = 34
Number of houses sold in Georgetown in December 2007 = 54

Breakdown of the type of houses in Georgetown:
Detached = 25
Semi detached = 1
Condo apartment = 1
Condo townhouse = 2
Freehold townhouse = 5
Other = 0

For more information on the Georgetown real estate market drop me an email.

Jan 3, 2009 / Brampton Real Estate / Georgetown real estate statistics

Real Estate collapse?

Here’s a really informative article from CTV

Real estate prices in decline, but no collapse in sight

Updated: Fri Jan. 02 2009 6:56:52 PM

Bill Doskoch , ctvtoronto.ca

The big question for any Toronto property owner is this: Will my home be worth more or less by this time in 2009?

And for any aspiring property owner, the big question is: Is this the right time to buy — assuming I think can keep my job through this economic turbulence?

The answer in both cases is: No one knows.

“There is a segment of the Toronto real estate community that is exuding a level of optimism, dictating that the market may pick up again next year and values may pick up again next year,” Arun Mehta, president of the Richmond Realty Group, told ctvtoronto.ca.

“My approach is that we are in very uncertain times. … The first quarter or six months will dictate the severity of this marketplace.”

What is known is that Toronto’s red-hot real estate market for the first nearly eight years of this decade started turning icy cold in October and November.

Statistics Canada estimated in a report released Dec. 16 that Canadians lost $191 billion in net worth in the third quarter of this year, a period between June 1 and Sept. 30.

Most analysts say the numbers will be even grimmer for the fourth quarter, when the full effects of the brutal stock market meltdown in October — and declining home prices — will become known.

That being said, Toronto and GTA house prices, while declining, aren’t in collapse.

An average GTA home fetched $368,582 in November, compared to $393,747 one year earlier. The price is still above the 2006 figure of $355,727, according to the Toronto Real Estate Board.

In the first half of December, the board said the average GTA price was $360,652, compared to $404,707 in 2007 and $343,048 in 2006 for that same period.

“Real estate values have receded about 10 to 15 per cent, depending on which part of the city you’re in,” Mehta said, adding he thinks the 416 prices have a potential for higher volatility than 905 homes.

Other measures the board gives are median price, which the price at which 50 per cent of the price for homes sold is higher or lower, and year-to-date average.

The median for November 2008 was $312,250 — compared to $325,000 in November of 2007 and $298,000 in November 2006.

The year-to-date average from January to November is $379,489 compared to $375,445 for the same period in 2007.

Mehta said November sales volumes were the worst in the past six years.

The end of the boom?

Maureen O’Neill, president of the Toronto Real Estate Board, told ctvtoronto.ca in a Dec. 4 interview that 2007 had been a record-breaking year, and came at the end of a decade-long boom.

Mehta noted that in 2007, he had one client bid on a home in Moore Park, located in the Eglinton Avenue and Mount Pleasant Road area, for $100,000 above the list price of $850,000. At least 10 other people submitted offers on the home, which eventually sold for about $400,000 more than the listed price, he said.

“Now, just about a year later, who knows what that property is worth? So the market has turned upside down.”

So the market is correcting and prices have fallen. With the bad economic news continuing, one could say that more of the same is probable in the short term.

Toronto has gone through real estate swoons before, most notably in the very early 1990s when a vicious recession struck — although one big difference is that interest rates are currently at much lower levels.

Mehta tried to put on his optimist’s hat for a moment.

There are some cash-rich people who want to get out of renting or to acquire in more desirable neighbourhoods may find some opportunities in 2009, he said.

However, that will depend on how fundamentally confident they feel as consumers, correct?

“There are two buckets of people,” Mehta said.

One bucket is full of people who have lost their job or fear they might lose their job, so they aren’t prepared to purchase a home. The others are people who are confident in their prospects despite the turmoil, he said.

But if the economy appears likely to remain soft, are you better off waiting to see if prices decline further?

“The problem is, how do you know when (the market) has bottomed out?” Mehta asked. “You cannot predict the best timeframe to purchase a property.”

Much of it is buyer intuition and tolerance for risk, he said.

“Now is the time to study the market and to make sure that when you’re ready to purchase something in 2009, that you’ve done your due diligence and you’re ready to make that transaction,” he said.

“This is a positive time, to a certain degree, for a purchaser — definitely not for a vendor.”

Source: CTV news

For information on the Brampton real estate or Georgetown real estate market drop me an email.

Jan 2, 2009 / Brampton Real Estate

Happy New Year!

Just wanted to wish everyone a Happy New Year! Thanks to those who have been following my blog and requesting interesting articles. I’ll keep you updated on the Brampton real estate market next year and let’s hope it recovers fast!

Dec 31, 2008 / Brampton Real Estate

Closing the deal on your Brampton house

Your negotiations were successful and you have a legally binding agreement. But, is the house truly sold? Not quite yet. It’s time for the vital final steps known as “closing”.

Your REALTOR® and lawyer will do most of the work

Thank goodness. Closing a deal involves many, many complicated and time-consuming legal maneuvers. That’s why you’ve hired pros.

Canada’s Money Laundering Reporting Requirements

By the time you accept an offer, your REALTOR® will also advise you of reporting requirements by FINTRAC, the federal agency responsible for administering Canada’s Money Laundering and Terrorist Financing legislation and regulations. Your REALTOR® is required by federal law to complete a client identification form, and must ask you as the vendor or seller for verified ID such as a drivers licence or passport. You can find out more on the FINTRAC web site www.fintrac-canafe.gc.ca/

Your closing checklist.

You still have plenty to do yourself, and here’s a comprehensive list.

Contact your lawyer and notify them that an Agreement has been signed. Make sure they’re ready to close the transaction.
Immediately begin satisfying any conditions of the agreement that require action on your part. They have definitive dates for completion and failure to do so can result in a lot of hassles, or even spoil the whole deal.
Notify your lawyer and lending institution if the buyer is assuming your mortgage.
Contact the utilities, telephone and cable companies about transfer or removal of service. Note: Your lawyer will often handle the transfer of utilities.
Call your insurance agent and arrange cancellation or transfer of your homeowner’s insurance.
Contact a moving company to arrange your move on or prior to closing date.
Send out your change of address notices and advise the post office. Notify the Ministry of Transportation about your new address for driver’s license and registration.
Notify your REALTOR® immediately if anything changes about your property or your situation.

Contact with your lawyer.

If you plan to “discharge” or pay off your mortgage with proceeds of the sale, your lawyer will obtain a statement from your lender showing your outstanding balance on the mortgage, and any penalties you’ll have to pay to discharge the mortgage.
A few days before closing, your lawyer will ask you to sign the paperwork that enables the title to be transferred to the buyer.
On closing day, your lawyer will receive and distribute the proceeds from the sale, pay off your mortgage and other costs, and give you a cheque for the net proceeds.

Congratulations!I hope this was helpful. For more information on the Brampton real estate market or selling your Brampton house drop me an email.

Dec 28, 2008 / Brampton Real Estate / Tips for sellers

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