THE Destination for Canadian Real Estate Information that MATTERS!

We're moving!

2008-12-17T11:43:00.003-05:00

To make my life a little more effective I will now be exclusively using http://INSPIRationByKarim.blogspot.com.

I have exported all my postings from here to there so you will not miss out on anything. Any real estate thoughts you can find on my del.icio.us. Follow me there at karimkanji.

Use Twitter? So do I - @karimkanji! @RealCash is also available for following!

Talk to you later!

http://INSPIRationByKarim.blogspot.com

What to do when business is slow.

2008-12-05T12:28:00.007-05:00

Lots.

There are lots of things you can do when business is slow.

However, there are probably things you should do when business is slow. Today, I'm going to share with you just a few things you should be doing. So, let's get started, shall we?

READ. And I don't mean the daily newspaper. It's news that is over a day old and probably with nothing good to say anyways. Start reading books, articles, magazines, and even blogs about success, marketing, business and, of course, real estate. (If you're reading this and you're not in the r.e. business, then read up on stuff pertinant to your industry/profession) Why? Ideas. There may be little things these folks will suggest or present that you may not be doing right now, that maybe you should. For example, if you're thinking about having your own blog but don't know what to do then reading Chris Brogan would be a brilliant start.
GIVE. Your time, resources, and especially expertise. My friends, Tim Sanders and Sameer Vasta have recently talked about giving. Remember, what goes around comes around. Give and it shall be given unto you.
COMMUNITY. Or you can say, associate. Whatever term you use, it is more important now to seek the counsel of your manager, associate, mastermind group and/or mentor. Thousands of successful entrepreneurs have already survived and thrived through a recession. Find out what they did. Inquire about there thought process on what it takes to succeed in today's marketplace. There is strength in numbers!
WORK. But you knew that already, didn't you? Then why aren't you? Continue to market yourself. Continue to make phone calls. Continue to plant seeds so that you will have something to grow and harvest. Hundreds of people are leaving your industry today. There will be less competition tomorrow. It's up to you if you want to win.

Please don't consider this the extent of what you should be doing. It is far from that. However, I believe that if you follow my suggestions you will have a brighter tomorrow.

To your success!

(picture courtesy of www.musicforchange.com)

Guest Column - Stan Albert - Yellow Pages canvassimg and other wacky ideas

2008-12-02T11:48:00.004-05:00

Years ago in the mid ’60s, I became involved in a partnership to buy up properties in my home territory in the Belleville/Trenton area. I had the task of finding tenants for a nearly vacant commercial building in downtown Belleville, without a clue as to how to do it! My partners gave me the area phone books, the Yellow Pages, a desk, a phone and lots of coffee, and told me to canvass the surrounding area from Cobourg to Kingston to Peterborough. Within two months of solid canvassing the firms listed in the Yellow Pages, we found enough tenants to completely fill our building.

This memory of marketing/canvassing came to the fore during the first recession that I faced in the mid-’70s, after I’d received my broker’s licence and opened my first brokerage. If you think things are bad now, you should have been around then!

Anyway, here’s what I taught my agents then and am practising now in the 2000s.

I called the largest advertisers in the Yellow Pages and asked a series of questions, not unlike what we would normally do when seeking listings on the residential side. When phoning, always ask if it’s a good time to call or if there’s a more convenient time for the discussion.

“Hello (great opening!), this is Mark Sales from Bigreal Estate, is this the owner? Great, I just wanted to take a few minutes of your time to let you know that I’ve decided to add your name to my list of investors.”

Wait for answer – usually it will be, “Really, what do you have in mind?”

“Well, although we all know the marketplace is down, there are still opportunities for investors like yourself perhaps, who will take the time to view some of the properties that may interest you.”

If the answer is positive: “Great, when would be a good time to drop by to visit with you, or could you come to my office for a coffee so that we could chat informally and get to know each other?”

If the answer is negative: “If investing in real estate at this time is not in your plans, do you need a CMA for the future?”

Some other questions you can ask:

Do you need re-financing?

May I send you a list of some real estate opportunities that may be of interest to you?
Would you like me to send this by email or should I drop it off?
Are you interested in meeting with other professional and/or business-minded people like yourself?

Would you be interested in attending a real estate investment seminar with noted business people in our market area?

Not all of these questions will lead to a positive result, but sometimes they turn into a success story, like this one that recently happened in my office. One of these calls went out to a business person who by chance had just sold his business and building. He had a substantial amount of money to invest. A meeting took place and the new client paid for lunch and presto, my agent had a new client. It doesn’t all come together at once, but most marketing of any kind is a numbers game.

Once you establish a rapport with a new client, you can proceed to develop your relationship. If it is a rental property, commercial/residential, you can offer your services to the client to manage the property for five per cent of the monthly rental. (Note that after three years of doing this, I had 14 properties that I was managing and supplementing my income by several thousand dollars annually).

So, start at the As for Accountants and work your way through until you get so busy, you will never have to pick up the phone again. The successful people you meet through the Yellow Pages system usually have equally successful people as their friends. Some of them may have relatives out of town that may use your services as well. As stated so many times before, “Do a good job and your actions speak volumes!”

Another example of the success of this system repeated itself in the ’90s, when I first came to the Re/Max organization. A new agent came to my office and she knew virtually no one in Toronto, because she and her husband had immigrated to Canada the year before. So, I set her on the task of the Yellow Pages system. The first call she made was to a glass company specializing in auto and home repairs.

The conversation went as stated above. She asked if the owner needed any additional space or was interested in buying another location. The owner said no, but his sister, who was his bookkeeper, was interested in a condo in North Toronto. She sold her the condo and to my knowledge, she is still using the system today.

Even in a recession, there are still people who need to buy and those who need to sell. Forget what the media hype has to say. Be like the late and great Prime Munster of England, Sir Winston Churchill: “Damn the torpedoes and full speed ahead!”

As P.S. to my last column, How to market yourself successfully in the recession, you may also want to try this out: Many home owners have received their new tax assessments. So, why not offer your services to appeal them? In Ontario it only costs 75 bucks. Say you will do it for them for free (you have to ask them to appoint you as their agent to do so. Who better to know the property values than us?) So you appeal and the worst-case scenario is that you lose, but you win the respect of the owner, who may just be interested in selling or buying real estate or giving you a referral or two along the way.

I know a broker who canvasses the condos in his area and has offered this service for years. Many units are out of the country owners and obviously not knowledgeable about property values. So, you do your “good deed,” and guess what, you may be listing the property eventually, or starting your own property management income flow!

The newest Brian Buffini 100 days to greatness course offers an eight-week program that addresses this idea in full. However, I’ve been teaching it for years.

I sincerely hope that this system will help the many agents who have written to me over the past 60 days, to put something down on paper.

This system is only as good as your follow-thoughs with emails, information about real estate, and business meetings with other future investors and eventually, “thank you parties” at the end of the year.

With good wishes for a great holiday season and a prosperous and healthy New Year.

For more info, contact Stan Albert for a one-on-one coaching session. Fees to be discussed when you call. Stan Albert is celebrating his 39^th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

(photo courtesy of www.salescareertraining.com)

Guest Column - Stan Albert - The tough get going

2008-11-24T16:01:00.001-05:00

Are we recession proof? I don’t think so. As I mentioned about two months ago, beware of the big ‘R’ word.

The cycle has returned – no surprise! Let me see, the last time was in the late ’80s into the early ’90s. It was bad and a lot of agents left the industry to go and sell Amway or whatever. But it wasn’t as bad as 1981 to 1985, where we saw interest rates as high as 28 per cent. Can you believe that? Some of us old-timers can and we survived to tell the tale.

Yes, it was even fun to work the market then, with Vendor Take Backs (you newer agents remember taking this in your mortgage courses, but I bet you’ve never done one).

So, the USA debacle has finally caught up with the staid, stable Canadian marketplace. Is it any surprise that we are not bullet-proof? What happens south of the border usually takes longer to hit us here in Canada. But not this time.

I just returned from a holiday in the Baja Peninsula in Mexico and visited several Realtors and developments. Tourism has been badly hit as well as investment in homes and condos in Mexico.

Some of the Yanks I met were worried about their investments, as we all are. Many were thinking of investing, but shied away due to the Wall Street debacle. However, some of the time share presentations were well received and people were still buying – just not at the rate that they did in years past. This is no surprise.

Is this article all about doom and gloom? No. There’s an old adage: “When the going gets tough, the tough get going.” Yes, it’s a little on the schmaltzy side, but it’s true.

I’ve always been mystified when the market does a downturn, that there are still people who have cash reserves they haven’t invested in the stock market, and they come out of the woodwork to buy and sell properties.

Do any of you think that we’ll have the landslide of foreclosures that we see south of us? Let me know and tell me why.

Who will survive in our industry? Here’s who will:

Those who diligently have been in touch with their sphere of influence.

Those who hold seminars for first-time buyers. Yes, they still want to buy!

Those who read about the recession and how the agents who lived through it managed to maintain their sales. I recently talked to a manager of a large market niche office, and their sales are the same as last year.

Those who investigate the new Accredited Seniors Course – yes, seniors still need to sell and buy.

Those who look into recession-proof prospects (you can reach me on email for these – don’t have room here!).

Those who continue to run open houses on a regular basis.

Those who tighten their belts on spending and resist the urge to splurge.

Those who seek the advice of their manager, not their coaches, because most coaches are too young to give advice on this type of market.

Those who attend mind-building seminars, not the rah-rah type.

Those who take time to read REM, which will celebrate its 20th anniversary next year.

My late dad, Jake Albert, always said to me, “Hard work never killed anyone, only those who were idle usually died poor and miserable.”

Stan Albert is celebrating his 39^th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and on the MLS Rules and Communication committees at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

Known dangerous defects must be disclosed by vendor

2008-11-13T10:26:00.000-05:00

Does the doctrine of "buyer beware" allow a seller to conceal the mere possibility that there is a potentially dangerous condition in a house? That was the issue in a case heard earlier this year in Edmonton.

In April 2005, George and Lisa Gibb bought a house in Leduc County, Alta., from Earl and Sherry Sprague. Prior to signing the purchase agreement, the buyers inspected the house three times, and found nothing wrong except some issues with the electrical panel.

Upon taking possession after closing, the purchasers discovered that there was an infestation of carpenter ants in the ceiling of a bedroom and in the roof of the house. As a result, they had to remove the entire roof of the house and replace it with a metal roof.

In the fall of 2005, the owners' son became ill with a headache and cold-like symptoms. The family pediatrician suggested that the symptoms might be due to mould in his basement bedroom.

On inspecting the basement drywall, the owners discovered mould to a height of three feet on the exterior walls, and rust on the bottom of the metal basement support posts.

At about the same time, the Gibbs found that the basement wiring did not comply with the building code, and that the circuits were overloaded.

Unhappy with the condition of the home, the Gibbs sued the Spragues for repair costs alleging that the sellers knew about the defects and fraudulently misrepresented their existence.

In law, whether or not a vendor is responsible for repairing defects in a home depends, to some extent, on whether the defects are found in law to be patent – or obvious, or latent – meaning hidden.

The case was tried before Justice Donald Manderscheid in Edmonton last April.

In his written decision, the judge ruled that the electrical defects were patent defects, and the doctrine of caveat emptor – buyer beware – applied.

The judge ruled that the buyers failed to take reasonable steps to determine the full extent of the electrical problems. As a result, they had to bear the cost of the repairs.

Based on the evidence at trial, the judge was satisfied that the basement leaks and roof infestation were hidden defects because it was unlikely that they could have been discovered on a simple visual inspection of the house without removing portions of the roof and basement drywall.

"I believe," wrote the judge, "that the (sellers) were neither subjectively aware as to the existence of the roof defect, nor did they act in a reckless manner in regards to the roof defect." As a result, he dismissed the buyers' claim for replacement of the roof.

On the issue of the mould in the basement, the judge ruled that the active concealment by the vendors of the mould and a false statement by Sherry Sprague about previous water in the basement amounted to the making of a fraudulent misrepresentation.

The judge wrote that when sellers have experienced a flood in their basement, "it is ... reasonable to expect (them) to advise potential purchasers of the property as to the circumstances (of the flood) ... The Defendants' failure to fulfill this expectation and to advise the Plaintiffs as to the existence of the basement defect amounts to a reckless disregard for the safety of the Plaintiffs and their family."

As a result, the Spragues were found responsible for their "reckless behaviour" relating to the history of flooding in the basement and the resulting possibility of the presence of mould. They owed a duty to the buyers to disclose the defect and they did not. Despite the caveat emptor doctrine, the sellers were ordered to pay the buyers damages of $12,186.45 for repairing the drywall.

It's clear from the ruling in Gibb v. Sprague that there is a duty on a vendor to disclose a known but hidden defect which makes a home dangerous, and to disclose any known circumstances which are likely to result in danger.

Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818. Visit the column archives at http://aaron.ca/columns/toronto-star-index.htm for articles on this and other topics.

Guest Column - Stan Albert - We need our ombudsman

2008-10-21T09:45:00.002-04:00

“A successful person is one who can lay a firm foundation with bricks, so that others may throw at him or her.” -- David Brinkley, NBC News.

From Wikipedia: “An ombudsman is an official, usually, but not always, appointed by the government or by parliament, who is charged with representing the interests of the public by investigating and addressing complaints reported by individual citizens. An ombudsman need not be appointed by a legislature; they may be appointed by a corporation, a newspaper, an NGO, as an organizational ombudsman, or for the general public in a city, appointed by a mayor, like the executive ombudsman. In some countries, an inspector general may have similar duties as or have overlapping duties with an ombudsman appointed by the legislature.”

Okay, so now that we have a firm grasp on the meaning of the word, why on earth would I think that we Realtors need one?

Sure, in each province/territory we have regulatory authorities, who dole out discipline and fines whenever necessary and relevant. But who protects us from dishonest sellers and buyers? When either the provincial or federal courts dole out the required verdicts and/or disciplines, they usually satisfy the unhappy buyers or sellers and sometimes the Realtor is vindicated (but not often enough). This is one of the most common complaints we receive as broker/owners and/or broker/managers.

I guess that to illustrate my point, over the years I’ve come across some tremendously unlawful sellers and buyers, who seem to stake out the Realtors in hopes of obtaining financial gain, and their claims are totally without merit. How many of you readers have received complaints from your provincial authority or your local board in respect to unsubstantiated claims against you? The authorities have to hear the claims, unless they deem them “no jurisdiction.” In the meantime, we have to answer the claims and await a decision of whether the claim will be heard or not.

Most of us go through an unnecessary period of angst waiting for the decision(s) and waste a great deal of energy coping with the claim, which may result in “no jurisdiction”. I know that some of the members of our board and regulators will say that we are given fair and just reviews and decisions, and that the various rules and regulations protect us from being sued, fined, disciplined, suspended or even lose our licences. With these elements in place, should we be able to rest easy?

It is my belief that certain fundamentals of client and agency relationships are taken for granted by the public. Otherwise, why would boards and provincial authorities be saddled with frivolous claims and allegations of Realtors being dishonest?

Here are some of the ridiculous claims from over the years that Realtors have had to deal with – of course, many never went to any authority, but as Realtors, we have to answer them.

1. You should have known there were cockroaches in the home. (So we are expected to be exterminators?)

2. The seller won’t give me back my deposit (maybe you shouldn’t have lied about your finances!)

3. The agent misled me on mortgage financing (but I got a letter that approved me, and then bought higher priced home.)

4. The agent should have told me that there were raccoons in the adjacent parkland. (We’re supposed to be Forest Rangers?)

5. The tenant you gave me went bankrupt in the third month. You should give me the commission back! (We’re supposed to be forensic auditors for our clients?)

6. You looked at all my sensitive documents (in a tenanted property. This actually went to the Rental Tribunal.)

7. My new neighbour cut down my fence without asking! (Are we supposed to investigate the neighbour’s ongoing disputes?)

8. There was mould under the kitchen sink area and you should have known. (Even a diligent home inspector would not have discovered this, only a certified inspector who specializes in mould.)

9. As my listing agent, you should have known that the cheque from the other agency would not clear. (Yeah, sure.)

And Number 10 on my all time “hit parade,”

10. How is it that if your brokerage sells more homes in our area, that ours hasn’t sold? (Well, whose price was it anyway?)

Now, as stated, many of these silly claims or allegations never go anywhere. But for those that do, what happens to the Realtor who really was an innocent bystander in some of the claims/allegations that do result in fines or penalties?

Usually the Realtor, if he has been unjustly penalized, has two options. He can sue in the courts or just walk away shaking his head and wonder why he’s paying fees. My advice to all Realtors: make yourself “judgment proof,” by seeking advice from a good litigation solicitor and a C.A. or C.G.A.! This action may save his investments and holdings from being seized by the courts in the event of an adverse decision by the courts.

I’d like to hear from you if you feel that Realtors across Canada need a provincially appointed ombudsman – one who could answer with impartiality to the public and Realtors alike to resolve specific claims without a great deal of costs involved.
What do you think?

Stan Albert is celebrating his 39^th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

Guest Column - Bob Aaron - Health card acceptable for voting but not for mortgage

2008-10-14T12:46:00.001-04:00

Oct 11, 2008

Why is an Ontario photo health card not a valid form of identification for purposes of a real estate transaction, but it's perfectly acceptable for the federal election next week?

Whenever clients sign mortgage documents with their real estate lawyers, virtually all lenders require the lawyer to confirm the client's identity by making a photocopy of the ID documents and signing a form certifying that the lawyer has personally examined those documents.

Most lenders even provide a list of eligible, and ineligible, documents. Lawyers can choose two documents from the list in column A (photo ID documents), or one document from column A and one from those in column B.

Eligible documents include a passport, citizenship card, credit card, driver's licence and identity cards from "well-known" employers.

Those mortgage lenders who provide lists of eligible documents uniformly exclude the Ontario health card, but never explain why it cannot be used.

In my practice, I have had a number of borrower clients who have no driver's licence, passport or photo ID other than the health card. This inevitably creates a problem complying with the bank's identification requirements, since the health card is unacceptable.

In light of the long-standing prohibition on using health cards, I was surprised when a brochure from Elections Canada arrived at the house recently advising voters that they must prove their identity and address before being allowed to vote next week.

The Ontario health card was listed right there on the Elections Canada form in the lists of acceptable identification documents. Thinking there must be some mistake, I resolved to find out why I cannot use a health card to identify myself when signing a mortgage, but it would be perfectly acceptable when voting for my Member of Parliament.

I had always thought that a health card was unacceptable since there were more of them in circulation than there are citizens of Ontario, but that may well be an urban (and suburban) legend.

After some research, I eventually discovered Section 34 of the Personal Health Information Protection Act, 2004 (online at www.e-laws.gov.on.ca).

The stated purpose of the legislation, among other things, is to establish rules to protect the confidentiality and privacy of personal health information.

In Section 34, the legislation says that a health information custodian (in other words, a health-care practitioner) or his or her agent shall not collect or use another person's health number except for the purposes of providing provincially-funded health resources to that other person.

Otherwise, it's against the law to require a person to produce his or her health card. Even if they produce it voluntarily, however, it's illegal for a lawyer to "collect or use" the health card number for the purposes of proving the client's identity in a real estate transaction.

So, on Election Day, it seems that a voter may identity him or herself to an election officer by voluntarily producing an Ontario health card as long as the official does not write down the number.

For Ontario residents without driver's licences or passports, it's clearly easier to vote than it is to sign mortgage documents.

Also on the issue of identification, new Law Society rules come into force at the end of this month requiring lawyers to verify client identity in every matter, not just real estate purchases and mortgages.

The rules have been made at the urging of the federal government to deter money laundering and the financing of terrorist activities.

The Law Society of Upper Canada has issued a 28-page "guideline" to assist lawyers in complying with the new rules.

Similar identification requirements are already in place for clients of real estate agents.

Bob Aaron is a Toronto real estate lawyer whose column appears Saturdays. He can be reached at bob@aaron.ca. Visit his website at aaron.ca.

Starting - The First Step Toward Success

2008-10-08T13:20:00.001-04:00

2009 is fast approaching. Today's economic unrest has many people running like chickens with their heads cut off (not that I've seen this happen...). Hope the article below helps all of you.

Starting - The First Step Toward Success

By John C. Maxwell

Salespersons are coached in the power of a first impression. Orators devote hours to opening statements. Journalists are admonished never to bury the lead. Sprinters practice racing out of the starting blocks. Interviewees are taught the importance of their initial handshake with a potential employer.

In leadership, as in many other areas of life, the beginning often determines the end. False starts and weak foundations can be ruinous. Here are five insights to help you start successfully.

HOW TO START SUCCESSFULLY

1. Start With Yourself

As Gandhi famously said, "Be the change you want to be in the world." By starting with yourself, you build the self-confidence needed to attract and inspire others. Leading yourself well is a precursor to accomplishment, and accomplishment earns respect. In order to make deposits in the lives of followers, you have to have a beginning balance in your leadership account. Start leading by proving your mettle - to yourself and to prospective followers.

2. Start early

Sadly, many leaders squander their early years and spend the rest of their careers trying to make up for lost time. In leadership, as with finances, decisions made early in life accrue the most interest. When we choose poorly or establish bad habits, we put ourselves in debt. Then, we must not only repay our loans, but the interest on them as well. On the flip side, when we invest our time and talent wisely from a young age, we reap the benefits of compounding interest on our leadership.

Specifically, where should leaders start? What areas should take precedence at the beginning? From my experience there are 10 things you should do as a leader prior to reaching age 40:

Know yourself
Settle your family life
Determine your priorities
Develop your philosophy of life
Get physically fit
Learn your trade
Pay the price
Develop solid relationships
Prepare for the future
Find purpose for your life

If you're over 40, it's never to late to make improvements. Unfortunately, an old dog doesn't easily learn new tricks. Undoing years of misplaced priorities and poor self-management will take extra effort.

3. Start Small

Don't expect to understand what it takes to get to the top, just take the next step.
Think big, but start small. Doing so encourages you to get started, and keeps you from being frozen by the magnitude of the vision in front of you. When you accomplish a small step, you gain confidence that you can accomplish the next step.

The success found in starting small comes when you diligently apply the lessons you learn. As my friend, Dick Biggs, has said, "The greatest gap is between knowing and doing." Commit to mastering the details under your control, and follow through when experience has given you instruction.

4. Start with the end in view

"Most people spend more time planning their grocery shopping than designing their future."
~ Tom James, Personal Development Coach

To start with the end in view, you need energy and direction. Let your passion pull you forward, and let your planning give you guidance. In order for passion to be a driving force in your life, you must identify a purpose for you life. To locate your purpose, consider your strengths, interests, and past successes. What roles do you find most enjoyable? What brings you the greatest sense of satisfaction? Examine the areas that make you feel strong and angle your career toward them. Also, find people who have been successful in the area of your interest. Listen to them and watch their lives.

For planning to give you direction, you need to write down goals. Goals lend structure to your purpose, and they keep you leading "within the lines." They focus your action and move you toward your overall vision.

5. Start Now

We exaggerate yesterday, overestimate tomorrow, and underestimate today. Embrace action daily. Don't wait until it's too late before you begin to pursue the visions implanted in your heart. Make each day your masterpiece; you'll be surprised where you end up after stringing together a few months of superb days.

I'll leave you with one final thought:

"How wonderful it is that we need not wait a single minute before starting to improve ourselves and our world." ~ Anne Frank

Review - Five Steps to Starting Successfully

Start Early
Start with Yourself
Start Small
Start with the End in View
Start Now

About the Author

John C. Maxwell is an internationally recognized leadership expert, speaker, and author who has sold over 16 million books. His organizations have trained more than 2 million leaders worldwide. Dr. Maxwell is the founder of EQUIP and INJOY Stewardship Services. Every year he speaks to Fortune 500 companies, international government leaders, and audiences as diverse as the United States Military Academy at West Point, the National Football League, and ambassadors at the United Nations. A New York Times, Wall Street Journal, and Business Week best-selling author, Maxwell was named the World's Top Leadership Guru by Leadershipgurus.net. He was also one of only 25 authors and artists named to Amazon.com's 10th Anniversary Hall of Fame. Three of his books, The 21 Irrefutable Laws of Leadership, Developing the Leader Within You, and The 21 Indispensable Qualities of a Leader have each sold over a million copies.

"This article is used by permission from Leadershp Wired, Mi's premiere leadership newsletter, available for free subscription at www.maximumimpact.com."

Guest Column - Stan Albert - Change is in the wind

2008-09-17T10:41:00.001-04:00

“They’ll be some changes made.” Some loyal readers will remember that great tune by the Barlow Sisters from the late ‘40s! (My goodness am I dating myself or what?)

So, here we are again looking at the big R word in 2008 and Realtors from all over are reeling from the economic news in the USA, which is having a profound effect on our economy.
We’ve been here before several times since the ‘70s and through the ‘80s and ‘90s, and some of us actually survived to continue our profession and make money. Others dropped like flies.

Here in Ontario as I ponder this article, it’s sunny and warm. We just returned from a friend’s cottage in Georgian Bay and on the way up, my wife and I remarked at the numbers of cars, SUVs, trailer homes and trucks on the road. It was bumper to bumper, and the same way on the way home on the multi-lane highway.

So, how is it that with the price of gas, people aren’t staying put? Canadian average gasoline prices have risen from 60 cents in 1998 to the current price here of $1.30 a litre. The automobile industry is in the pits and yet we still love our cars and SUVs. What would we do without them?

What exactly are most Canadians who still have a job doing without? For starters, the food and beverage industry is suffering as people are not using their expendable income to go out as much. They’re also not spending on boats, trailer homes and luxury cars as much as they were in the past.

But, as Realtors, we’re still in the right profession. Canadians still want to own their own homes.

Yes, the “times they are a-changing” and those of you who take the necessary steps to keep abreast of how to deal with these changes, will survive. More stress coming, keep reading.

Most of you don’t remember the awful ‘80s, with interest rates hitting 28 per cent, and how great it was to put people into homes with vendor take-back mortgages. But look at the interest rates now. I paid six per cent in 1961 when I bought my first property. What are rates now?

Bill Johnson’s multi-part columns in REM about relationships are worth a close look (they are available at www.remonline.com). Johnson’s well-written articles on building relationships are most timely in light of the recent federal FINTRAC regulations, and the coming Do Not Call list regulations. Bill, put your recent articles into a CEU course if you haven’t done so already. Realtors are ready for this course! I’ve been expounding this forever in my columns as well, but Johnson really has it down to the “nth degree.”

This week, Toronto Star columnist Michael Geist (www.michaelgeist.ca) wrote about the Do Not Call list. He tells us who can call and who can’t call those who are registered on the list. He also goes on to tell readers that they can go on to HIS OWN website at ioPTOut.ca to imbed their names on the list. Over a cup of chamomile tea this afternoon, (to calm my nerves), I read and re-read the parameters of this newest legislation to hit our industry.

Geist’s column says, “The National DNC contains a wide range of exemptions that will require Canadians to individually opt out from hundreds of organizations if they want to completely stop unwanted calls. Political parties, registered charities, newspapers and businesses with prior consumer relationships, all enjoy exemptions.”

I recently asked my sales training group if they would opt into the DNC. One hundred per cent said yes. So, what is the general public going to do?

At the bottom of the newspaper page is the Star’s Business Calendar for those who may wish to sit in on a lunch for business development or with a professional real estate investor. Talk about an inexpensive method of expanding your spheres of influence!

Realtors, wake up! You will soon realize that with all of these regulations facing us, the options are limited. If you persist in flaunting the government’s rules and regulations, you will be eventually caught and fined/and or even worse – imprisoned!

To survive – no, excel in the later part of this year and for the next several years, expand your network now! This is how the top achievers in our industry continue to succeed every year. It’s not rocket science.

You can be happy doing what you’re doing or you can be right in doing something else that is more positive. But you can’t be both!

Thought for the month: “The more committed you are, the more credible you become.” – G. Cohen, Brixton Real Estate.

Stan Albert is celebrating his 39th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

Guest Column - Bob Aaron - Oil storage tank leak a cautionary tale

2008-09-15T11:23:00.001-04:00

September 13, 2008

Oil storage tank leak a cautionary tale

A scary tale of an oil leak in an Ottawa-area home provides a valuable lesson for homeowners whose homes are heated by oil.

In early 2006, an exterior oil storage tank next to the residence released approximately 900 litres of fuel oil onto the ground.

The owner's insurance company called in Ottawa-based Canadian Disaster Restoration Group to respond to the environmental contamination.

Not only was the site of the house contaminated, but the leak posed significant immediate risk of contamination to neighbouring properties. The potential liability was a matter of great concern to the owner's insurer.

The lot size was 450 square metres and there were nearby neighbours in all directions. The property was near the top of a downward-sloping street of residential properties. The Ottawa River lies at the bottom of the hill.

A shallow aquifer beneath the property was comprised primarily of sand and so the potential for rapid flow of contamination in the flowing water was very high. The leak occurred in cold weather and the downhill flow of oil through the site was sure to accelerate as the spring temperatures began to rise over the weeks after the leak.

A speedy reaction to the leak was essential. Concentric Associates, a part of the disaster restoration team, analyzed the situation and decided that the owner's young family had to leave the property immediately for their own safety and to allow faster remediation of the damage.

From a practical viewpoint, everyone involved agreed that demolition of the house was the best option and the insurer purchased the house from the owner. This allowed the family to relocate to a new home without delay.

In March 2006, a demolition permit was obtained and the house was demolished. Eastern Building Restoration began remedial excavation the same day.

On the surface, the oil had spread out to cover an estimated 50 square metres or about 538 square feet. Underneath this area, a plume of fuel oil had leaked into the aquifer which was underneath and around the residence and all of it had to be removed.

Over the next two weeks, almost 2,000 metric tonnes (4.4 million pounds) of contaminated soil were removed.

By mid-April 2006, the site had been fully backfilled and a post-remedial groundwater sampling program was undertaken during the following months.

Eventually, the site was approved by the Ontario Ministry of the Environment and it was resold for construction of a new home.

Total cost for the remediation came to about $500,000 –plus the cost of buying the house.

Fortunately, the disaster recovery team kicked into high gear fast enough so that the neighbouring houses were not affected by the flow of oil underground.

The insurer's decision to purchase the property relieved the homeowners of a tremendous burden while allowing the restoration crew to get at the contamination quickly.

This protected the surrounding neighbourhood from contamination and the insurer from liability to the neighbours.

Had the house not been demolished, or if the cleanup hadn't occurred so quickly, the costs could have been exponentially higher.

The scary part of the whole tale is that the cause of the oil spill was due to a corroded oil tank. The hole in the tank was about the size of the tip of a ballpoint pen.

Jean-François Raymond is the marketing director of the Canadian Disaster Recovery Group. For homeowners with oil tanks – interior or exterior – he recommends checking oil tanks and lines yearly, or even more frequently, especially if they are old.

Strict requirements govern the use of residential oil tanks. Information is available from the Technical Standards and Safety Authority, www.tssa.org, or phone 1-877-682-8772 or 416-734-3300.

The truth

2008-09-15T10:43:00.003-04:00

I don't consider myself an expert in things financial. That said, things are very weird today.

Massive financial companies are teetering on extinction. Lehman Brothers, Bear Stearns, Fannie Mae, Freddie Mac, Merrill Lynch and AIG. What is going on? All of this apparently brought on by irresponsible lending and greed.

And yet, today's PROFIT magazine highlights Canada's Hot 50. The #1 company with a two-year growth of almost 4,000%? www.MortgageBrokers.com.

What does all this mean for regular citizens like you and me?

What are the implications for homeowners, new and old?

The truth? Maybe we can't handle the truth?

Guest Column - Bob Aaron - Bylaw sinks pirate ship playhouse

2008-09-08T11:09:00.000-04:00

September 6, 2008

Bylaw sinks pirate ship playhouse

After architect Andrew Dewberry and author Jayne Seagrave bought their house in Vancouver three years ago, they decided to build a tree fort for their two young sons.

In September 2006, the fort was constructed in a tree located a few feet inside the property line of their front yard. It was built in the shape of a large pirate ship, complete with plastic tubes resembling cannons for launching chestnut "cannonballs" and a fire pole for a quick exit in the event of a hostile attack.

The "ship" measures about three metres by two metres, and one end is curved like a prow of a boat. Total cost was about $2,500.

Shortly after construction began, the next-door neighbour asked Dewberry whether he had obtained a permit for the project. Not long afterward, the city received a complaint about the tree fort.

After meeting with city officials, Dewberry was told that he would have to apply for a development permit for the structure. Under the city bylaw, the fort was classified as an "accessory building," and as a result it would need a permit.

In early January 2007, the owners' application for a development permit was refused, and their appeal was denied the following month. The city then issued an order requiring removal of the structure, and when the couple refused to comply, charges were laid for breach of the order.

The trial of the charges took place before provincial court judge Conni Bagnall over the course of five days in April, May and June of this year. It was probably the longest trial over a pirate ship – or tree house – in Canadian history.

Dewberry and Seagrave anchored their argument by saying that the pirate ship was neither a building nor a development within the meaning of the relevant legislation, but that position was shot down in the judge's ruling when it was released in July.

They were also unsuccessful in arguing that the city had engaged in "selective prosecution" and that it had never before required permits for "play equipment."

The couple also claimed that the bylaw discriminated against children and encouraged adult-only pursuits, such as gardening, in violation of the Canadian Charter of Rights and Freedoms. Bagnall tossed out this argument, as well.

Finally, Dewberry and Seagrave came up with the creative argument that the attack against the pirate ship was a breach of their freedom of expression guaranteed by the Charter of Rights and Freedoms. Bagnall sank this argument, writing: "The defendants argue that the meaning conveyed by the tree fort is, in essence, an invitation to play. I do not agree with this proposition. The fort has, in itself, no meaning, no content of expression. It is not play in itself, it is a plaything."

In the end, Bagnall found the couple guilty as charged and fined them $500 each. The family is removing and donating the pirate ship this month, to an auction to benefit the Boys and Girls Clubs of Greater Vancouver.

The court ruling in Vancouver v. Dewberry and Seagrave contains some valuable lessons for anyone planning to build a gazebo or garden shed and more:

Check with the local municipality for size and height restrictions.
Permits may be required if the structure exceeds a maximum size.
Verify setback requirements from property lines.
Don't build it in the front yard.
Be sensitive to the neighbours' privacy if the structure overlooks their yard.

Guest Column - Bob Aaron - Foreclosure tale is coyote ugly

2008-09-04T11:54:00.001-04:00

Bob Aaron bob@aaron.ca

August 30, 2008

Foreclosure tale is coyote ugly

Ronald and Ann Bonnar owned a house in Cape Breton, N.S. The house had two mortgages registered against it – a first to Royal Bank of Canada, and a second in favour of Canada Trust Company as trustees for the owners of various registered retirement savings plans.

The Bonnars fell into arrears on their mortgages, and the Royal Bank sued them for foreclosure and possession of the property. Last October, the Supreme Court of Nova Scotia calculated the mortgage debt at just under $125,000 and ordered the local sheriff to conduct an auction sale of the house on Oct. 31 at 11 a.m.

Counsel for the Royal Bank in Dartmouth hired Elliott Fraser, a local lawyer in Baddeck, to attend at the sheriff's sale and buy the house back for the bank, so it could resell it and recover its debt.

Fraser was instructed to be at the sheriff's sale and bid up to $135,000 on the house.

On the morning of the auction sale, no one showed up representing the Royal Bank. The sheriff tried to reach the Royal Bank's lawyer in Dartmouth to say that the bank would be unrepresented at the sale, but ended up with the lawyer's voice mail.

The reason no one showed up to bid on behalf of the Royal Bank became clear in a later court hearing. It turned out that Fraser saw a coyote inside his backyard shortly after 11 a.m. on the morning of the sale. He was quite concerned because he has small children and pets and the coyote was inside the fenced-off area.

Fraser contacted the Department of Natural Resources and waited for two of their representatives to arrive and investigate how the coyote got into that restricted area. Shortly before noon, Fraser returned to the office portion of his residence and received a phone call from the sheriff advising him that the house had been sold without anyone being present to represent the Royal Bank.

At the sale, a representative of the Canada Trust RRSP holders bought the house for what appears to have been a bargain price of $70,000.

Not to be muzzled, the Royal Bank was back in court three weeks later asking to have the foreclosure sale set aside. The bank set the fur flying when it argued that the court should not put the bite on the bank just because its lawyer was held up by a coyote.

It said the sale price was too low, the sheriff knew the bank had hired a lawyer to be at the sale and Fraser's failure to attend was reasonable and understandable. The bank also argued that the successful bidder would make an unconscionable profit at the expense of the bank and the borrowers.

In December, Nova Scotia Chief Justice Joseph Kennedy decided that Royal Bank's arguments were toothless. He could find no fault with the actions of the sheriff. It was not unreasonable, he reasoned, for the sheriff to proceed with the sale.

In his ruling, the judge hinted that the former owners would probably not be required to pay for the bank's losses on the mortgage. The implication is that because of his failure to attend the auction, Fraser's insurers might make good the shortfall on the Royal Bank's mortgage.

In Ontario, foreclosures and judicial sales are rarely used. They can be cumbersome, expensive and time-consuming.

The preferred method for handling mortgage defaults here is a power of sale, where the lender sends out notices of sale by registered mail, evicts the occupants and sells the property through a regular real estate listing. Without coyotes.

Guest Column - Bob Aaron -

2008-09-04T11:54:00.000-04:00

Bob Aaron bob@aaron.ca

August 30, 2008

Foreclosure tale is coyote ugly

Fraser was instructed to be at the sheriff's sale and bid up to $135,000 on the house.

At the sale, a representative of the Canada Trust RRSP holders bought the house for what appears to have been a bargain price of $70,000.

In Ontario, foreclosures and judicial sales are rarely used. They can be cumbersome, expensive and time-consuming.

Forget the NFL. Toronto has Monopoly!

2008-08-20T10:07:00.004-04:00

And so it continues. Or maybe it has ended.

Toronto has always had this big city - small city syndrome. Are we world class or not? Do they love us or hate us?

Well, it seems that Toronto doesn't need the NFL. The CFL and the NLL (lacrosse) will do just fine for the folks at Hasbro. Toronto, as well as Montreal and Vancouver will be featured on the new Monopoly Here & Now: The World Edition.

Just don't tell Torontonians that Montreal has the prestigious "Boardwalk" location...

Read the PRESS RELEASE HERE.

Guest Column - Stan Albert - Respect is a two way street

2008-08-13T15:50:00.002-04:00

“I don’t get no respect. Last week my tie caught on fire. Some guy tried to put it out with an ax!” – Rodney Dangerfield

Why is there so much profanity in our business? It’s not professional, and certainly doesn’t show any respect for your clients, fellow sales reps and support staff. The only thing it does is to increase your blood pressure and injure your heart, according to psychologists and psychiatrists.

The late comedian George Carlin used the f-word word some 29 times in one dialogue, so much that it really didn’t make much sense. At the time he was gaining popularity; hardly anyone was using harsh language in film, on stage or in public. Now, it seems that word is the best and only way to embellish one’s anger. Psychiatrists will say that such verbiage is intended to make the recipient feel like mush and the one spewing the language feel superior.

I’ve seen the more than gradual deterioration of good business ethics and the treatment of others in our business and it bothers me. My late mother, Lil, had many great expressions, most of which she claimed to be hers. One of the best nuggets: “You can get more flies with honey, than with vinegar.” Surely your own parents would have passed on to you: “It’s not always what you say, but how you say it.”

Recently, our support desk made an error. It was innocent enough and should not have happened, but it caused the agent to really go overboard on chastising the poor young lady to the point of tears and almost leaving our employ. When things quieted down, it turned out that the error did not have all the ramifications that the agent deemed that it would have. Within hours of this happening, I received a call from the agent. In addition to perhaps flogging the admin person, we should have her fired, he said. Fired, for being human? With about 100 agents, we handle about 1,000 calls per day and administrate close to 1,500 transactions per year. Our error rate is less than two per cent on all business that comes into our office. I challenge our agents to tell me what their error rate is per calendar year.

The use of profanity from agent to agent has increased so dramatically, that it astounds the writer to think that they’ve never visited a Roget’s Thesaurus for other usage of the English language. This is being a professional?

Come on guys and gals. Are we only supposed to be nice when it’s convenient or do we just shoot from the hip/lip whenever it’s appropriate to justify the ends to satisfying our anger? I know these articles are intended to be geared to coaching you on to bigger and better things in the wonderful world of real estate. Let’s not forget those guys and gals who toil for you behind the admin desks weekly, year in and year out. Most managers/brokers hear this common diatribe: “Well, if you paid them more, we’d have more professional staff and fewer turnovers and mistakes.”

Hey! How many of you have run offices? Run them efficiently and effectively so that the work you hand in gets done in a timely fashion – that is of course, provided you hand in all the paperwork that goes into a file so that you can receive your commissions. Efficiency is not a one-way street. And how many of you culprits ever stop to think what damage you do to the psyche of the admin person with your trucker’s mouth? Many of you are unappreciative of the mountains of paperwork they must deal with.

I can’t remember the book this quote came from, but it is appropriate: “Catch someone doing well and praise them for it, rather than always looking for the bad.”

Your brokers invest heavily in your offices in money, time, energy and resources. Running an efficient and effective office is not an easy task. Having had the opportunity to work with two large offices, I can attest to the support given to me and I constantly show my appreciation to my support team with lunches, movie tickets, quarterly awards for efficiency and Tims and Timbits on a regular basis.

In short, always treat your support team as though they were a member of your family.
Quote of the month: “Your friends are God’s way of apologizing for your relatives.” – Dr. Wayne Dyer (from his book Power of Intention)

Stan Albert is celebrating his 39^th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

Social Media in Real Estate.

2008-08-06T09:50:00.002-04:00

Social Media. No matter our knowledge or personal feelings social media continues to play a vital role in our professional and personal lives. Simply put, social media is the marriage of online tools and technology to social interaction.

Social media includes, but is not limited to, discussion groups, podcasts, blogs, email, text messaging, and social networking sites. If we wanted, we could have a discussion that would fill up the pages of this publication. Today, let’s take a look at a few “old” examples and then some new tools that today’s Realtors need to embrace in order to compete within today’s dynamic market.

Email and text messaging. Yes, email is a tool that real estate professionals have just recently (in the past 7 years) started to use to keep in touch with associates, clients and leads. The power of email and text messaging has shortened the time and space between people like no other technology before. Today, with these two simple tools, you can communicate with someone across the world from the comfort of your home. In fact, with wireless access, you can be “in touch” virtually anywhere you are using your laptop, cell phone, Blackberry and iPhone.

You already know the positive impact this has had on your business. Let’s take a look at some new tools.

REMonline. Seriously! Have you taken a look at REM’s online presence? There are plenty of opportunities to network with fellow Realtors and other professionals from across, Canada, and the world. Take a look at the various discussions going on and participate. Your expertise and brand will become recognizable the more you respond and create discussions.

Blog – both a noun and a verb! Create a blog and blog – on your blog and other’s as well. What can a personal blog do for you? With the right type of content can make you the expert in your industry. Social media expert, Chris Brogan (www.chrisbrogan.com) suggests, “Create a videoblog of interviews of people in the community…Build an events page or community site where people can gather, share their stories, post events, and express themselves.”

Answer this: as a consumer, when we are looking for something, what is one of the first things we do? We google it! So, if someone is checking you out, what will they find? A website with no character or stickiness? Stickiness refers to the fact that visitors are very likely to re-visit the site, time and time again. So it’s important to continually update your blog. And don’t forget to post on other blogs as well. This will help in creating your online identity.

www.ActiveRain.com and www.Facebook.com. Interested in Real Estate in Fraser Valley? What about Realtors who hate the Leafs? You’ll probably find it on Active Rain. Guess what? You’ll also find a cornucopia of sites devoted to specific real estate topics on Facebook as well. Both sites are great and I highly suggest you develop a presence on both. To find interesting groups on both sites, just utilize their easy-to-use search functions.

Why is this important to you? If you are an agent in the Calgary area you understand that people are moving in (and out of) your area from around the world. A satisfied client from Toronto will ask her agent to help her. If you’ve properly developed relationships through Active Rain and Facebook you will have a plethora of agents to refer her to!

www.Twitter.com and www.Summize.com. Twitter asks the question, “What are you doing?” Your question might be, “What the heck is Twitter and why should I care about it?” The answer to the second part of the question is that real estate is not really a business regarding properties and buildings. Real Estate is a people business. You might be selling homes, but your client is not 123 Main Street. Your clients are people like you, me and the person who is looking for a Realtor. That’s why you should care. What is Twitter? According to Wikipedia, “Twitter allows users to send updates which are text-based posts…and are displayed on the user’s profile page and instantly delivered to other users who have signed up to receive them.” Have or need a listing? How about answering, “123 Bridle Path for sale at reduced price. Message me.” Or, “Looking for 3-bed in Oakville.” If you’ve created a community on Twitter comprised of realtors as well as family and friends, your message will be read instantaneously.

Even if have not created a considerable following on Twitter, you can follow other conversations on Summize. Summize follows “tweets” so that you don’t have to! For example, search for Moncton home on Summize and you’ll see potential customers you can converse with. Do these tools work? Just ask James Buck. This journalism student was detained in Egypt for photographing a protest. On his way to jail he used his cell phone to post the message, “Arrested” to his followers on Twitter. As a result of the efforts of his Twitter friends, he was released the next day.

Overwhelmed? I was too. Take one step at a time. The point is that there are technologies and online tools available for you to use for your business. Learn about how these can help you. Search out an expert who can help you adapt. New and young agents are entering your industry. They are already using these technologies. Their potential clients are also using these tools. It’s time you did as well. Like the cell phone, social media is a vital tool for your business. Like your cell phone, don’t leave home without it.

Karim Kanji continues to discover the many uses of social media as the Business Development and Client Services Officer for RealCash Bancorp Inc. You can find Karim at www.RealCashCanada.com, Facebook, Twitter, Active Rain….

The Weakening

2008-07-16T15:17:00.003-04:00

I think we can all agree that the Canadian real estate market is weak(ening). It's not that I have an agenda to push or a service to sell as a result of this recent phenomenon. Facts are facts: There are more listings on the MLS, closing times are being increased, and listing prices are coming down.

What does this all mean? In my opinion, it means that if you just bought, you better hold on for the long haul and hope 1) you have a secure job to continue your payments, 2) you have a VRM and 3) that you don't end up with negative equity. If you're looking to buy, RELAX. Wait a while. I guess it depends on your local community but prices are coming down. Your deal is soon to be had.

Are you interested in following some cool articles on real estate? Then follow me on del.icio.us. I'll post articles there instead of links here.

Have fun and stay profitable!

Karim Kanji

Retwitteral Estate

2008-07-10T15:25:00.003-04:00

Are you on Twitter? One of the most popular micro-blogging sites has taken the social media world by storm. And people are participating on conversations here.

People are your business. If people are talking on Twitter, maybe you should be listening.

Are you on Twitter? How are you using it to promote yourself and your business?

@karimkanji

A Poppourri of Items from Stan Alberts Desk

2008-06-12T14:58:00.002-04:00

(The following article has been reproduced here by the permission of the author.)

A potpourri of items from Stan Albert’s desk

It was about the beginning of March when REM Editor Jim Adair and I had a chat about the March article on taxation and I blurted out to Jim: “I’ve got writers block!” I flippantly said that maybe I would write about why I feel that women in our industry make better agents, but not necessarily better and bigger producers. Jim laughed and said I should get a lot of email about that.

Then I thought of an article in the Toronto Star by David Olive, where he highlights Frank Baum’s well-known Wizard of Oz, where Dorothy is held out as a role model for business leaders. We thought that may hit a few home runs with our readers. I said to Jim, “Well, maybe I’ll just let the brain tell the keyboard what to write and see what comes out in the end!”

As I was about to embark on my latest attempt I was interrupted by my dear wife, Audrey. She asked if I’d seen the morning edition of the National Post – the obituary section. An old school friend of mine called her to see if it was true. What was true? I asked. The friend said that my death notice was in the Post and wanted to know if it was true and where the Shiva (a week of mourning usually held in the Jewish faith) would be. Audrey assured him, as did I later, that as Mark Twain once said, “No one has informed me of my untimely death!”

It was another Stanley Albert, but not the guy writing this article. It took several emails, one to the real estate board, one to the condo corporation, and others, to tell people I was not that guy. The Toronto board was good enough to publish on their web pages that it wasn’t the Stan Albert – Realtor who had passed on. In responding to my next door neighbour at the condo, Audrey assured her that I was alive and well and had been at the office since 8:30 am.

Was the month of March brutal or what? My senses, as yours must have been, were really spiked by all the news of the world and in our own country, spinning doom and gloom. Beware the Ides of March!

I don’t know if Al Gore and some of his warnings about global warming are true or not, but we did have record snow falls here in Ontario, including a massive storm in early March. Headlines to the south were screaming RECESSION! The sub-prime fiasco hitting the real estate industry is somewhat being felt in some sectors in Canada now. Remember that whatever happens in the U.S. usually will come to haunt us in the next five or so years. CMHC, bless them, have come up with 40-year amortization, zero down mortgages for marginal borrowers and a whole new host of goodies for first-time buyers. Can this be a harbinger for things to come? I don’t think so.

We have been through, what, three or four recessions, including the one in 1988-99, which we didn’t come out of until 1995. It’s a long accepted fact that when the market weakens, the strong agents and brokerages get stronger because they know how to survive and prosper.

Those of you old enough to remember the early 1980s when the mortgage interest rates hit 25 to 28 per cent will recognize that regardless of rates, economy and world issues, that fact remains: people need to sell and people need to buy. These coming months may not be easy for newcomers to this business, but if they have strong coaching and a passion for meeting people, they will not only survive, they will thrive.

I promised a potpourri, didn’t I? So back to the Wizard of Oz, and the view by Carol Stephenson, dean of business at the Ivey School of Business, who identified Dorothy as an ideal role model for contemporary business leaders. Stephenson says Dorothy displays all the necessary elements of great leaders. Writing in the Financial Times (U.K.), she says Dorothy is “inquisitive, compassionate, consultative and courageous.”

Now guys, don’t get your Irish up yet. I’m not saying we don’t have those qualities. But the main reason to why I feel women make better salespeople than guys, is that they, for the most part, exemplify Dorothy in the Wizard of Oz. Most women that I’ve managed or coached respond better than their male counterparts in caring for and counseling of their clients. I don’t expect that will impress the men reading this column, but hey, I’m not here always to appease and please! I must close off this article with some comments about Bob Aaron’s recent shot at Seller Property Information Statements (SPIS) in the May issue of REM.

He wrote: “If your agent insists on an SPIS, then get another agent or hire a good litigation lawyer.”

It’s interesting that a lawyer who does a ton of real estate continues to flog this issue of SPIS and the dangers it’s fraught with. I don’t know why he continues to bash the real estate industry’s attempts to make the seller accountable, without providing an alternative. What protects us, the agents, from being sued, without the SPIS? For years, the brokerages that have come under my supervision have never had a solitary case go to litigation – and that may include some 15,000 transactions!

As mentioned before, when Mr. Aaron and I exchanged a few literary barbs, I don’t dispute for one moment that many cases do go to litigation. Many are handled quite well by individual provinces’ E &O insurers, so my investigation showed. If the agent in the case described in Aaron’s story last month was truly diligent, the case would never have been in court. He erred in his directive to the sellers. We should always disclose all the facts that are known to us without restriction, unless otherwise directed by the seller’s solicitor. Since I am aware that Mr. Aaron is an avid reader of this paper, I am sure we’ll hear from him soon.

Last but not least, when attending our annual awards gala recently, I was truly flattered by all the agents who read my column in REM. But what is more important, is that they read this wonderful publication across Canada.

Oh, how I digress! So much for writer’s block.

Quote of the month: “Hell, there are no rules here...we’re trying to accomplish something.” – Thomas Edison.

Stan Albert is celebrating his 39th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com,

Commission Advances - U.S. Open Style

2008-06-12T12:18:00.003-04:00

So, Tiger Woods is favoured to win this year's U.S. Open. As I write this, he is already on the course with the world's best golfers.

Hold the mustard! Did I just say Tiger is favoured to win the Open? Yes I did. Even with his knee that just got 'scoped? Yup. That's the power of the Tiger Package.

You see, Tiger is not just a one dimensional golfer. Like you didn't know. Tiger is the total package. So when his putting is suffering (which is not often) he makes it up with his long game. I think you get the picture. This is why he is favoured and the others are just long shots.

And this is why commission advances are so important to your "game" as well. Think of advances as a club in your bag. You might not need it today or even tomorrow. However, you might need it next week or next month.

As a self-employed business person there will be months where things are just cooking! Appointments fill your calendar and closings fill your bank account. Then there are those months when the roof leaks, your daughter gets married and your husband and you want to travel to a nice quiet place somewhere across the ocean. It just so happens that there are no closings and your bank account is drying up. Do you quit?

Never! You still have closings in 2 months! So what do you do? Postpone your life? Or attack it and live it to it's fullest? This is where RealCash Bancorp can help you live your life. Don't wait for your paycheck to decide to have fun or pay those important expenses.

Contact RealCash and experience why thousands of Canadian Realtors are happy they did.

Fore!

Latest news on Canadian Real Estate

2008-06-10T15:33:00.003-04:00

"The general economic slowdown and declining consumer confidence in Ontario is starting to be felt by home builders, who are reporting slower traffic." To find out who said this and to read more on Ontario's housing situation READ HERE.

Guess who else is victim to high gas prices? Cottage Prices. Tony Wong of the Toronto Star weighs in HERE.

Did you hear that the Bank of Canada has left the prime at 3%? What does this mean for consumers? Well, it seems the Bank is more concerned with inflation (hello, gas prices) than consumer confidence. This means (in this humble observer's opinion) that increased rates are on the horizon. How far out though is anyone's guess. All I know is that the costs of carrying a mortgage is going to go up. Start locking in your variable and if you HAVE to buy a house then follow the same advice. Also, stay away from reading Garth Turner. Your welcome.

Karim Kanji

www.RealCashCanada.com

On With The Show, This Is It!

2008-06-09T10:19:00.003-04:00

Just spoke to a good friend of mine who is a landlord of a few properties around the GTA. He says the market is softening and it's giving him a headache.

And now our FEATURE PRESENTATION.

There's a Social Networking event happening tonight for interested Realtors in GTA and Durham (Ontario). No, it's not on Facebook. At THIS event, you actually have to show your face.

Most affordable "Metro" home? Not Calgary. Duh! The great metropolis of....Moncton!

The median cost of housing in the Moncton region was $8,323 a year -- or $693 a month -- in 2006, Statistics Canada reported yesterday in a new report on shelter costs across the country.

John Pasalis chimes in on the "Buy One, Get One FREE" Houses HERE.

Housing's 10 year boom sees prices double. Report on Business.

An unprecedented 10-year boom in the market, which ended earlier this year, saw the price of a two-storey detached home rise by an average of 129 per cent in urban centres to $522,999, according to a study released today by Royal LePage Real Estate Services.
In the 10-year period ended March, 2008, the price of a similar property in the suburbs has appreciated by 110 per cent to $334,380.

London Free Press finally heard about Garth Turner's book. Geez. Who hit the snooze button a few times too many?

Speaking of Turner, here's his latest...

Dream, Dream, Dream. Whenever I want to, all I have to do, is Dream.

Toronto Home Sales fall for 5th straight month. Ssshhhhhh!

Toronto Condo market cools off. So, no more ridculous line-ups?

Hello June. I thought you'd never make it....

2008-05-30T12:48:00.003-04:00

5 months have gone (ok, in a day!) and do you know where your 2008 went?

It seems that the 5 months have brought to Canada a little of the doom and gloom and initiated in the States. High gas pump prices, higher costs at the Chinesse restaurant and higher housing costs with lower home values. But hey, what goes up, must come down! So here we go...

Work for CIBC? Own CIBC stock? Have a CIBC t-shirt? So sorry.

Running away to England? Maybe you'll get a DEAL on a house. Yeah, prices are coming down across the pond as well.

Lose a few bucks on the lottery? So did U.S. Banks....$37 BILLION! Ouch.

Here's some good news....Prices up in early May. Shoot! Sales fall though. Oh well.

Chris Chelios knows a thing or two about winning Stanley Cups. He's on the verge of winning another one with the Detroit Red Wings (sorry Pens). But Chelios also knows real estate. Kinda.

Karim Kanji
www.RealCashCanada.com

Indy 500 Weekend Edition:

2008-05-23T11:27:00.002-04:00

Scotiabank suggests that a "big drop" in housing prices is "very low". My question is what defines a "big drop" and "very low"? I know Scotiabank has a number in mind. But guess what? They won't tell you because a low chance of a big drop keeps you in a positive mindset. Therefore, you spend more money on renovations (via a loan from Scotiabank) and maybe even sell your house and get a new one (with help from a Scotiabank mortgage product).

Why won't the Canadian housing market follow what has happened in the States? No one says why. Except Garth Turner.

Housing slump continues in the States, by the way. Oh, Happy Memorial Day to my American neighbours!

And if things weren't bad enough, a Realtor in the...wait for it now....Scarborough area (shudder) was robbed last week. That sucks.

Does anyone know why mortgage rates are dropping? At present they are lower than a pregnant ant. That's low.

And finally, this weekend is Doors Open Toronto. If you happen to be in the area check it out. You'll have lots of fun and get a new appreciation for culture and architecture in the Greatest City in the World!

Karim Kanji
www.RealCashCanada.com
http://InspirationByKarim.blogspot.com

Real Estate Food for Thought.

2008-05-22T12:39:00.004-04:00

Curtis Rush of the Toronto Star is reporting that resale housing activity is slowing down across the Greater Toronto Area.

John Pasalis (a Prudential agent in Toronto) also provied a copy of the Toronto Real Estate Board's press release.

Read Garth Turner's article entitled, Condo Crack.

Is there any good news to be found? Well, Re/Max offers the following food for thought. Seems that longer ammortization periods and other lending and housing alternatives are keeping this 'soft market' afloat.

I would be really interested to know what US Realtors have to say about their housing slump and if they see Canada heading the same way with the advent of 40 and 50 yr ammortizations. Thoughts anyone????

Hamid Azizi of HomeLife Arianna has developed a new site that he hopes will become the "Google" of real estate. Check it out at www.ResaleMLS.com.

Buyer soaked with vendor's final water bill. You're kidding?!?! Bob Aaron reports.

And the final word goes to Stan Albert - manager with Re/Max in Woodbridge, ON.

So, some good news sprinkled with bad news. Or is it the other way around? And is change really a bad thing?

Karim Kanji
www.RealCashCanada.com

The Unpredictable World of Real Estate!

2008-05-05T11:39:00.003-04:00

This is what makes the real estate business so interesting. The unpredictable nature of it all. It's not just having a roof over your head. It's the investment choice of the masses. Ever heard the saying, "Look what the masses do and do the opposite."? That's what I'm doing. I'm staying away from 40 year mortgages, over inflated prices, bidding wars and the like.

What am I waiting for? The sell-off. Till it's not sexy anymore to buy a house just because everyone else is. I could move out of the city (or the country for that matter but I kinda like it here).

On with the show.......

Hey! It looks like the Bank of Canada agrees with me! Amazing!

I went to the not-so-green Green Show last weekend. Saw the "canu" home. Here it is.

ALL the real estate marketing companies say that housing prices remain strong. Serious. Why do they say this? So there won't be panic. So people like you will continue to invest and buy homes for renters and themselves. So they can continue to hire salespeople. Get my drift?

Alberta is slowing down. And again.

The mortgage guys know the market is slowing. You've heard of the Reverse Mortgage, right? This is the response to the slowdown. It's not meant to help your grandparents. That's your job.

Finally, the following is some advice from Garth Turner:

As for your buying intentions, I hope you’re prepared to wait until the end of the year, since current sales declines will take that long across most of the Toronto region to translate into widespread price reductions. The erosion starts first in vulnerable high-end suburban homes and will actually get to starter-type homes last. That, of course, is what you should be buying, and not some granite-and-stainless palace. Debt kills. Even vultures.

That's all for now folks!!

Karim Kanji

Floods, Interest Rates and the Great Canadian slowdown

2008-04-21T13:17:00.002-04:00

Hey! I'm just a messenger so please don't shoot me. However, I do have an editorial bias.....

And now, on with the show!

As you may know by now, Peterborough has been flooded again! Our thoughts and prayers are with you.

So mortgage rates are going down. What does this mean? Maybe that people who could not afford to buy a house will now be able to. Doesn't make sense to me either. And they say that a housing correction/collapse won't happen in Canad-duh.

Sick and tired of all this doom and gloom? Check out the WORLD's best upcoming real estate markets...

Garth Turner, Bob Aaron, Stan Albert

2008-04-15T10:46:00.003-04:00

Hey folks! I'm still here. I hope you are too. Here are 2 great pieces on the current real estate outlook. The third article comes from Stan Albert and is a little "lighter fare" for you.

Hope you enjoy!

Karim Kanji

http://www.greaterfool.ca/2008/04/14/no-money-no-problem/

http://www.aaron.ca/columns/2008-04-12.htm

http://www.remonline.com/remonline/detail.aspx?menu=26&app=153&cat1=473&dt=1089365&tp=12&lk=g

The Housing Market - a Canadian Analysis

2008-03-28T11:03:00.003-04:00

Okay. so this really insn't an analysis. In fact, I was never even good at math in high school. So you will not get any "super crunching" from me.

However, I will try to shed some light on this HOT topic by introducing you to many experts and articles. Some will say things are HOT. Many will say, the sky is falling. What is the truth? Probably somewhere in the middle. But that is for you to decide. Today, I am just a messenger.

So, here we go....

Remember Garth Turner? I used to quote him alot in these part here. Well, not only has he written a new book, but he is also back on the "sky is falling in real estate" tour. Seriously though, he is a very interesting read. and alot of his stuff makes sense. Just remember this: he is a self-made financial success story.

Here's Garth on VRMs, in the Ottawa Citizen (read this one. Very insightful!), and finally a post he borrows from CTV.ca.

Gath-ed out? Me too. Let's continue, shall we?

Are you living in Toronto? Is the market cooling or still burning hot? John Pasalis of Prudential gives his take on the matter. Seems likes he's sitting on the fence. Pick a side John. It hurts too much.

How about Alberta? Many folks are already saying that Alberta is in bust mode. However, this investor likes to think thinks are going smooth in "Canada's Powerhouse."

High Carb Condos. It's a great piece from Garth. I couldn't help myself! Then Globe & Mail reports on a study that states that condo sales will SLOW in 2008.

This one comes from Florida, but is still applicable here in Canada. Boomers are starting to DOWNsize.

Sometimes I just get confused about all the talk. Boom or bust? Who do we believe? Housing experts are split and confused. Who is right? Who is wrong?

Benjamin Tal claims that Canada will dodge the US credit problems in the housing market. He works for CIBC, by the way. Maybe you got your mortgage from them? Seriously, Ben's a nice guy.

Cute article from Globe & Mail.

Real Estate

2008-03-18T14:36:00.002-04:00

A very interesting conversation with Garth Turner by the Globe and Mail.

Ever heard of The Learning Annex? It used to be a night course institution. Now its home for get rich quick and real estate schemes. Again, the Globe and Mail reports.

Stan Albert: Time for some Spring Cleaning

2008-03-12T11:36:00.002-04:00

Are you angry at your routine? If you’re really interested in increasing your business, it’s time for a spring house cleaning.

Recently I read a fascinating magazine, The Canadian Entrepreneur and was really impressed by the content. Especially of note was the editorial by Rick Spence.

Most of us deem ourselves as free spirited, cutting-edge businesspeople or maybe even entrepreneurs. If that’s true, why is it that there are so few of us that really operate that way?

I wonder how many registrants have all the tools of the trade, which the modern-day sales professional truly needs.

’m puzzled when I hear a sales rep say, “I’ve got some great strategies for this year and am going to go out and achieve the greatest year I’ve ever had!” Yet, when I ask how they are going to accomplish this feat, they have no idea whatsoever about how to do it in a professionally planned method – let alone WHY they want to achieve this lofty goal.

When asked how they are going to increase their business by 25 per cent, the answer is usually: “I’ll have to get more listings and/or buyers.”

So they wish to increase volume, but what will they have to change first?

In a sailor’s vernacular, “We’re in ‘irons.’” That means no wind, for you landlubbers. That’s correct; you’re on a sale-boat. (Ha!). Nothing creative has occurred in your mindset since you received your first award for becoming a top achiever.

Imagine being with other professionals in other non-related fields, once a month. Discussions with other business people gives bent to new ideas and new sources for business. Oh my gosh, here Albert goes again with the “R” word – referrals. Yes, referrals.

I mention this idea about 20 to 30 times a year in coaching my agents, yet less than 10 per cent ever get to do it. Those who do receive not only referrals, but also form new friendships and they learn how other businesses operate successfully and consistently by planning and innovating.

How much of your day do you spend dreaming about how to create additional business for yourself on an ongoing basis?

An article by Rick Spence in The Canadian Entrepreneur magazine says that Google’s engineering staff is encouraged to spend 20 per cent of their time working on projects that they feel passionate about. That philosophy is credited with the development of Google News, Google Suggest (try it!), and Ad Sense for Content (On line ads triggered by the content on the page).

Spence goes on to share other tips, such as track your time, keep a to-do list, and keep a don’t-do list. The best thing from Spence’s column: Do the worst thing first, whether it’s calling potential clients, or dealing with an obstreperous individual agent or the public.

Visit Spence’s blog at http://canentrepreneur.blogspot.com.

It’s all been said before, I know, but start by operating out of your comfort zone. As Spence says: “That’s where the real work and the real success is waiting.”

Quote of the month: “Entrepreneurs are supposed to be the new Knights of Columbus, so why are so many such “sticks in the mud?” – Rick Spence

Ask a mentor: Do you have a question about the real estate business that you’d like to ask Stan Albert? Write to Stan with any coaching/real estate business questions you have, and he’ll answer the best ones in his column in REM.

Stan Albert is celebrating his 36th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com

Real Estate Apocalypse

2008-03-10T16:03:00.002-04:00

Well, well, well.

Time has come today. No not the 1970's hit song. Today's Toronto Star has another interesting article about the upcoming real estate bust. Quoted in this article are MP Garth Turner and Re/Max agent Jim Common among others.

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Speaking of media favourite, Garth Turner, check out this latest blog with information on real estate and his newest book, Greater Fool.

Special Agents

2008-02-27T10:21:00.003-05:00

Rakshande Italia of the Toronto Star has penned a very insightful and interesting article about Realtors. The article focuses on the Greater Toronto Area. However, I am sure the same tales can be told from municipalities throughout Canada.

Excellent article Rakshande! Keep up the great work!

Karim Kanji

A View from February 25th 2008

2008-02-25T16:03:00.002-05:00

Well, here I am. Back again. Stirred but not shaken. So, here we go. News and views from everything real estate in Canada and maybe from other places.....

Did you know that Toronto is Toronto's biggest landowner? Neither did I. and to think these guys are running short on their budget. Did they not know we are 10 years into a Real Estate boom?

Looking for a 78% return? Well, you're 10 years late. Or maybe not. If you have a roof over your head and you own that roof you may be richer than you think.

Calgary seems to be crowded because now they are looking to the sunny U.S. south for vacation homes.

Toronto seems to be slowing down. February is not over but here's the news so far.

Non-Descript East York lowrise stars in Hollywood thriller, JUMPER. I wonder if Juno lives there....

Toronto is slowing down. What is happening in Calgary? How is a 35% jump sound to you? Nice!

2 interesting articles about the U.S. housing/mortgage slump/disaster.

Canadian Realtors may be getting into MMA soon. Why? Because they are becoming targets of more and more violence.

Sharia Loans. Scam or Not? I dunno really. Some say scam. Others feel a need is being met. I think they are a scam because ALL loans (even if they are dressed as sheep) charge interest.

Now that you have read this far you get a treat. CMHC's 1st quarter Outlook.

Cheers!

Karim Kanji
www.RealCashCanada.com

Guest Column - Stan Albert

2008-02-21T12:32:00.002-05:00

Stan Albert: A new door opens for Canadian agents

Sometimes being a pest can turn out for the best. Some years ago I got wind of a course in the United States that trained salespeople about how to capture their share of the escalating mature and seniors markets. I liked the concept, saw some of the material and started to bug my friend Barry Lebow to bring the course to Canada, since his school is associated with REBAC (NAR).

Barry liked the concept but he told me that he had reviewed the material in the U.S. at a conference and did not like the course content. For the next few years, whenever Barry and I discussed various real estate matters I would bug him about the seniors’ market and what was he going to do about it.

Some time last year some new material pertaining to the senior’s market came into Barry’s hands. Again, he just did not like it and told his assistant Ida Kolenc, “I can write a better course than this one,” to which Ida replied, “Why don’t you?”

Barry has done just that. It took him most of a year – he retained experts in law and taxation and worked with various professionals, and he has created what I believe is a dynamic education course, the new Accredited Senior Agent professional designation.

Barry took a step rarely taken by Canadian real estate educators. He convened a beta test group made up of 11 Realtors of various backgrounds (small towns, big cities, major franchises, independent) and I was privileged to have been included in this group. Close to 350 years of combined experience sat for two full days as Barry taught his new course to us. We offered criticism and input. At the end of two days, the biggest criticism we gave him was that he had priced the course too low! It is without doubt one of the finest education courses for Canadian agents ever offered. It is intensive but well stated and taught in straightforward language. Thanks to Ida, it is well presented and laid out.

The best parts of the course? Barry has focused on how to make money, how to best serve the public and how to become a niche player, making business come to the designated member. As a former national director of the Real Estate Institute of Canada and other associations, Barry felt that getting a designation in real estate is important – but none of the organizations really have done a solid job in branding or making the need to work with a professional strong in the eyes of public. He is determined to change that. His goal is to brand the new designation into the public’s mind with a strong public relations campaign that never will stop.

Do you realize that in the next 20 years, many communities across Canada will have more than 50 per cent of their population over the age of 55 and that number will increase? Did you know that most seniors live in their own homes and that they are buyers and sellers? And it has been estimated that this generation of baby boomers will inherit trillions of dollars and they will be the first senior group in history that is affluent, well educated, in good health and yes, in many cases, spoiled! They may be aging, but they are living well and well-positioned players are going to make more money from the aging demographic than from any other sector of the buying or selling public during the next two or three decades.

First-time buyers? If prices increase, if the economy hiccups, if interest rates rise, their numbers are diminished. For seniors, many will have to sell and the second home market is going to rise as well as they inherit money that will allow them to indulge in the lifestyle that they always wanted.

I am proud to have bugged Barry to the extent that he wrote this great course. As a reward I was given the first Accredited Senior Agent designation, and made the only honourary life member.

Barry is now gearing up teach this course across Canada, create new instructors in various provinces and this summer start to translate the material into French so that it becomes a true Canadian course. The first courses kick off in January and February in the Toronto area and British Columbia is now being planned for April. Having known Barry for more than 30 years, I can tell you that when he becomes determined to do something, it gets done and well. Given his 40 years of extensive real estate experience, he is determined to make the Accredited Senior Agent designation the most desirable and most publicly accepted designation in Canadian real estate. He will do it, as his drive is amazing, I don’t believe that this man truly sleeps, just dozes. For information about the new course, visit www.thesenioragent.com.

The future? I am betting on the fact that the mature and senior market is ready to explode and only the best educated and positioned agents will get their share. It’s 2008, a time to become a niche player, the time to earn your Accredited Senior Agent designation.

Quote of the month: “Luck is what you’ve left after you’ve given 100 per cent.” – L. Coleman

Stan Albert is celebrating his 36th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

A Real Estate Jerk

2008-02-21T11:56:00.002-05:00

I'll tell you his name in a second. But let me start from the beginning.

I work with a company called RealCash Bancorp Inc. RealCash provides commission advances for Realtors. What this means is that we advance earned but unrealized commissions to Realtors so that they can continue to invest in their business or use the funds for personal use.

My role with RealCash is marketing. In my daily duties I may phone a dozen or so offices to secure appointments. I understand that not everyone needs our services. But to many, the ability to leverage their earnings is valuable to them.

Anyhow, today I called an office called Century 21 Camdec. They are located in Toronto, Ontario. I was told to speak with a guy named Rupert. On paper he is not the broker of record. His wife Camille is. He asked the normal question of how much we charge. I told him and then he starts to rip into me. He doesn;t tell me he'll never use or promote me. That's no big deal. I understand this is not for everyone. What he does is inexcusable.

He calls me a "fucking parasite", "fucking asshole", etc, etc...

I tried calling him back asking him to apologize but to no avail. He continued to tear into me.

Why am I telling all of you this? Because I don't know who he is; I don't think he'll apologize; and I think anyone out there who knows him should let him know to grow up and take ESL classes.

Cheers!

Karim Kanji
www.RealCashCanada.com

The Sir John A. Macdonald signature and it's relationship to Real Estate

2008-02-05T11:03:00.000-05:00

What does the soft American real estate market have to do with Canada's first Prime Minister.?

Duh! Nothing. Trick question, right? Actually, it's pretty simple. If you were a real estate agent in the States and you had a signature that was over a century old AND it belonged to the first leader of Canada, what would you do? Sell it, of course!

And that is exactly what this lady is doing.

Get your eBay accounts up and running and start bidding! Check out THE story from today's Toronto Star.

Karim Kanji

January 24, 2008. I think this is going to be an interesting year.

2008-01-24T16:16:00.000-05:00

In the midst of a weakened North American stock market and real estate industry here are some headlines that caught my attention - Real Estate STYLE!

One of the questions that always comes up is what effect will the American economy have on the Canadian real estate industry: HERE's what the Globe and Mail had to say. And HERE's what CTV said.

Interesting article about 2 realtors moving companies and it's reprucussions.

Real Estate + Parking + Toronto, ON = SCAM!!!

Financial Post reports on a strong 2007 Real Estate market.

Calgary, Victoria, Montreal, Hamilton, Saskatoon, Toronto, and Quebec - some interesting and not-so-interesting news.

A study reported on by the Toronto Star says that the Housing Boom is having a negative effect on our poor.

Dodge says tough times are coming.

Royal Bank of Canada says Housing Affordability will improve in 2008. What the heck does this mean?!?! Will we get raises or will the market crash???

U.S. housing sales drop 13% in 2007. Thanks for the update, DUH!!!

Regent Park - An interesting study.

Guest Column - Stan Albert - 1/17/2008

2008-01-17T10:23:00.000-05:00

Stan Albert: Dealing with mediocre salespeople

Can you be a success in this business, even if you believe you are mediocre?

“Success” – Is it a toxicity that high producers lavish in? Is it something that mediocre producers find problematic in achieving their goals?

When looking over our large office’s production for the year so far, I am quite pleased with our production. When a branch exceeds over 30 per cent market share in our two main market areas, how can a manager or broker be disappointed? Since moving over to one of the largest offices in Toronto as a manager/broker, I see the abilities of the top performers on a daily basis. What I don’t see, and it puzzles me to no end, is why some of our sales team produces less than what they are capable of.

I am not saying that everyone has to make $100,000 in each year. But surely, in order to be profitable to the registrant, they should be making at least one to 1½ transactions per month. That formula would obviously be profitable for the broker as well! If they are not making money, it begs the question: Why invest the time and the money in the courses to attain the licensing and invest the same in ongoing courses (in most provinces)? It makes simply no sense to me as a broker.

Why do some top performers fail at being consistent? In spite of taking all kinds of coaching, courses and memorizing scripts ad nauseam, it is indeed mystifying. It is as well mystifying to most of my colleagues, when the very best “coaching” is available almost 24/7 and all they have to do is ask for an appointment with us. Who better to coach them, when we managers have the years of experience to do so?

Every real estate office has these lovely representatives who attend all the training sessions, take the various coaching courses, but fail to follow through on what they’ve learned, or for that matter what they’re coached on. No disrespect here to Mike Ferry, Richard Robbins or Brian Buffini, but most of us in management can do almost the same as them, and for free!

In another article last year I asked why are there so many mediocre registrants in our business. And here I am again, at the beginning of 2008, still pondering this question.

When I look over the real estate stats, it is amazing to see that with the very best market in years in Toronto, many representatives do less than four or five transactions annually. Many of you will email me and say that there are too many part-timers in the business. That is not up to me to say or voice an opinion on.

The end result of too many representatives entering the industry and finding that it is a really tough and sometimes a frustrating profession, is that many buyers and sellers, as well as brokers, are ill-served. These inexperienced agents have the lack of knowledge to obtain decent marketable listings and lack of skilled negotiating skills that produce the best price for the sellers.

Why does it seem natural for some of these mediocre producers to put limitations on their abilities? In a recent story in the Toronto Star, Brett Popplewell quoted Jason Plaks, a social psychologist at the University of Toronto: “It’s all part of an inadvertent psychological game we play to convince ourselves that there are certain parameters in which we can’t do well. From the meat-headed jock who can’t pass an IQ test, to the artsy-fartsy literai who can’t tweak a carburetor, to the stereotyped four-eyed human calculator, who can’t throw a spiral – it seems only natural for all of us to expect limitations in our abilities.”

As managers, we can either terminate the lower-producing registrants or work with them and encourage them to realize their full potential, by getting them to leave their office and get out to develop relationships with buyers and sellers. Maybe by doing this, they will reap the benefits of a successful and rewarding career – a career that has no age limitations. Look at me! So, fellow managers, before you terminate staff in the new year, give your lower-end people an opportunity to achieve their dreams. But give them a time limit of no more than 90 days to get the idea that they aren’t mediocre, just “stuck in third gear!”

I wish all the readers of my articles a very happy, healthy and prosperous 2008. I also wish the same to my long-suffering editor, Jim Adair and his colleague Heino Molls, publisher of REM.

Quote of the Month: “Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today, as they ever were.” – David Rockefeller.

Stan Albert has been active in the real estate industry since 1971. He is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

House fraud decision rocks industry

2008-01-11T14:51:00.000-05:00

House fraud decision rocks industry

Bank `did not take steps to scrutinize the power of attorney,' judge rules

Jan 05, 2008 04:30 AM

Bob Aaron

It took the better part of 18 months and more than $30,000 in legal fees, but Paul Reviczky has his property back in his own name, with the $337,500 mortgage in favour of HSBC Bank Canada finally discharged.

As reported last month in the Star, the Ontario Superior Court of Justice ruled Reviczky is not responsible for the mortgage that was taken out on his property after it was sold in 2005 without his knowledge. But Justice John Macdonald's decision has ramifications that extend far beyond the parties involved in the Reviczky litigation, and may well affect many future real estate and mortgage transactions.

In the summer of 2005, Reviczky's rental property on Sheppard Ave. W. was stolen from him. A fraudster used a forged power of attorney in favour of Reviczky's non-existent grandson to sell the house to an innocent third party for $450,000.

In June 2007, after months of legal proceedings at his own expense, Reviczky finally obtained a court order restoring ownership to him, but not discharging the purchaser's mortgage in favour of HSBC. Since both the purchaser and HSBC were unaware of the fraud, the court in June declined to discharge the HSBC mortgage, believing it to be valid.

Reviczky then faced the prospect of losing the house again, this time to the bank. At this point, Reviczky became involved in a messy contest among three insurers: Stewart Title, which insured and paid out the HSBC mortgage; LawPRO, the Law Society's insurer representing the lawyer who acted for the fraudster using the forged power of attorney; and the provincial Land Titles Assurance Fund, which protects the public from fraud in the land titles system.

Stewart Title paid out the HSBC mortgage, but under the Consumer Protection and Service Modernization Act, it was unable to recover its loss from the government assurance fund.
If the mortgage was determined by a court to have been valid, Reviczky would have had to pay off the HSBC loan by making a claim against the assurance fund. Stewart Title would be off the hook to the bank and would recover its payout from the public purse by way of Reviczky's claim. In that case, the title insurer would have found a loophole in the law.

In his ruling last month, Judge Macdonald voided the bank's mortgage because it "did not take steps to scrutinize the power of attorney." The bank "chose to put itself in proximity to the unknown fraudster in this transaction by dealing with him, yet it failed to make use of the opportunity to avoid the fraud, which that proximity gave it."

The judge said the lawyer representing the fraudulent seller sent a copy of the forged power of attorney to the lawyer acting for both the purchaser and the bank. Both lawyers were unaware the document was a fake. At this point, the second lawyer failed to "inform himself about the terms, conditions or validity of the power of attorney." Since HSBC, through its lawyer, had an opportunity to avoid the fraud and did not do so, the court decided it could not succeed in its claim that the mortgage was valid.

"The bank knew ... ," the judge wrote, "the person purporting to sell the property was acting pursuant to a power of attorney. The bank had the means of protecting its interests in this circumstance ... (T)he bank must have known (its) solicitor would be in direct dealings with the person purporting to sell, whether through that person's solicitor or otherwise."
Ultimately, the judge decided the issue was not the actions or inaction of a solicitor, but whether the bank had an opportunity to avoid the fraud. Effective immediately, the Reviczky decision will have an enormous impact on how banks, real estate agents, lawyers, buyers and sellers treat any transaction involving a power of attorney.

In every transaction, those documents are now going to be scrutinized, not only by the lawyer for the seller using the document, but by the lawyer for the buyer and the buyer's bank. If a seller cannot provide satisfactory evidence that the power of attorney is valid and enforceable, a buyer and his or her bank could conceivably refuse to close the transaction.

Just exactly how this will happen – especially where the giver of the power of attorney is at the time mentally or physically incompetent, or overseas, or simply unavailable – remains to be seen.

The vast majority of powers of attorney used in real estate transactions are legitimate documents, but from now on it will be tougher to use them to buy, sell or mortgage real estate in Ontario.

Bob Aaron is a Toronto real estate lawyer whose Title Page column appears Saturdays. He can be reached at bob@aaron.ca. Visit his website at aaron.ca.

First Post of 2008 - Predictions, Updates, and stuff...

2008-01-10T15:01:00.000-05:00

B.C. and Vancouver in 2007 and what's in store for 2008?, B.C. homes value worth over $80 billion! Wowee!!

Canada's National News magazine - Maclean's - has weighed in on the great Canadian real estate bubble debate.

2007 was a profitable year for Toronto real estate - so much for the cool down. Wait a minute! Royal LePage is calling for a cool down in 2008.

ONTARIO SUPERIOR COURT PROTECTS ELDERLY FROM MORTGAGE FRAUD.

Dedline has passed. Did YOU avoid the new Toronto tax?

My son is not yet 2. Should I start worrying now or later? Toronto Star reports on an age-old trend.

Happy 2008!

2008-01-02T14:34:00.000-05:00

Below is a post I wrote on the www.REMonline.com website:

Happy 2008!

Dear REMonline Readers,

Happy New Year!

Well, I hope that everyone had a fantastic 2007 and a wonderful and fun time ringing in 2008. I can still remember 1999-2000. Yes, my alarm clock and microwave ovens still work. Although my wife will swear that the alarm clock might as well not work. Yes, I'm a heavy sleeper!

But I digress. Over the past number of months REM has put together this fantastic website. I consider it a tool for my business. And I want to personally thank them. I've had the pleasure of meeting Dennis, Heino and Jim. I've also met a number of the columnists. Great people!

Over the same time there have been some great discussions here. And as many of you know, there have been some less than inspiring conversations here as well. And I guess that's the beauty of living in Canada: We can say what we want. We can even work in jobs and professions that we either love or hate. We can choose to love or destroy. You get my drift. Just read the papers today. People all over the world are killing each other over the position they pray in as well as their positions in politics. So, I'm excited to be Canadian. Excited to take advantage of this amazing forum where we can share constructive ideas and opinions. Excited that I can read insightful articles from the likes of Stan Albert and Bob Aaron. Excited to hear what Tom and others have to say and ask. Excited to read how you passionately defend your business and industry.

So, what's in store for 2008? I'm sure alot of us are interested in what everyone has to say. With the "power" of blogging and these discussion groups, your voice is able to be heard around the world. Is Canada immune to the U.S. problems? Will the Canadian market continue to grow? What about local areas like Victoria, Edmonton, Saskatoon, Toronto, Montreal and Halifax? Is there an affordability crisis in Canadian housing? These and many other questions are waiting to be answered. Here on REMonline.

Cheers!

Karim Kanji
www.RealCashCanada.com
http://canadianrealestateinformation.blogspot.com/

The latest chapter in the Stinson Files...

2007-12-20T10:19:00.000-05:00

Will Stinson every go away?

http://www.thestar.com/Business/article/287279

Second last week of 2007 and here's some late, breakin' news for YOU!

2007-12-19T11:14:00.000-05:00

Royal LePage is forecasting a great 2008 in real estate. You're kidding...

This just in: The Real Estate Boom is over. At least in Edmonton, Alberta.

This just in: The Real Estate Boom is starting. At least in Newfoundland!

With Toronto's new Land Transfer tax coming in 2008 some are wondering if this will force business and real estate out of 416 and into 905. Here's a take on it.

More news on the US Real Estate crash. 2008 may be worse than 2007. (Sell your bank stocks...I'm just saying...)

Chris Bradley is giving back. Although this may be part good stuff and part publicity, this blogger thinks this is a good idea that should be copied.

Congratulations to Women Canadian Entreprenuer of the year...a Toronto based Realtor. Read on!

First time buyers are helping to keep the resale market strong. Century 21 Report.

Guest Column - Bob Aaron - 12/7/2007

2007-12-07T12:06:00.000-05:00

`Arrogant' bank chastised by judge

Dec 01, 2007
Bob Aaron

Whoever said you can't fight city hall – or the big banks – never met Brampton lawyer Ken Hood or his clients Mark and Laura McDonald.

When the McDonalds bought their cottage near Kapuskasing some years ago, they took out a personal loan secured by a mortgage with the Canadian Imperial Bank of Commerce.
From 2000 to 2006, the McDonalds diligently made payments on the mortgage – in some months making double payments. In September 2006, they inadvertently missed one payment of $385.

Shortly afterward, the bank sued the couple for payment of $41,961.92 on the wrong mortgage – the first mortgage on their Brampton home.

Upon being advised that the mortgage had been paid in full prior to the lawsuit, CIBC discontinued its action and had to pay the McDonalds $1,161 in costs.

After receiving the October 2006 payment of $385 on the cottage mortgage, the bank refused to accept any more payments and referred the couple to its lawyers. The McDonalds repeatedly requested a calculation of their loan balance for the period from 2000 to 2006, but were unable to obtain it. Nor were annual statements ever provided to them.

Eventually the bank started a second lawsuit, this time on the cottage mortgage.
In September 2007, Brampton lawyer Edwin Upenieks, counsel for the McDonalds, finally received a statement from Cassels Brock, solicitors for the bank, showing total arrears were $4,647.60 plus legal costs of $10,217.75.

Upenieks then arranged with an employee of Cassels Brock that the mortgage could be brought into good standing upon payment of the mortgage arrears, and the costs issue would be sorted out later.

He immediately couriered $4,700 (which included accumulated interest) to the bank's lawyers, only to have it returned four days later along with a letter stating that the bank would not accept partial payment. A subsequent letter denied that there was an agreement with Upenieks about the court costs. (The figure of $4,700 was a round number as a precaution to cover extra days' interest).
The case came before Justice Douglas K. Gray in Brampton in October. The parties had agreed that the mortgage could be brought into good standing upon payment of $4,879.26, and the McDonalds were prepared to pay the money immediately after the judge's decision.

The only issue in dispute was the matter of legal costs. The bank was seeking a ruling without a trial, based on documentary evidence only. Known as a "summary judgment" request, the bank wanted the borrowers to pay an additional $10,615.50 in costs.

Justice Gray was not impressed with the bank's case. "In my view," he wrote, "the conduct of the bank has been high-handed. To describe it as arrogant is not an overstatement. The uncontradicted evidence is that the cause of the alleged default was the refusal of the bank to accept the McDonalds' payments. Requests for information were ignored, and were met by notices of sale and the commencement of these proceedings ...

"To make matters worse, the Bank reneged on an agreement that it would accept the arrears and try to sort out the matter of costs later."

"If the bank had acted in a more responsible manner," Justice Gray added, "I have no doubt that this litigation would have been entirely avoided ... In my view, not only should the Bank be deprived of its costs, it should pay costs to the defendants."

In the end, the judge ordered the bank to pay the borrowers their court costs of $10,000. Brampton lawyer Ken Hood represented the McDonalds at the hearing. He told me last week that the decision has not been appealed by CIBC.

My advice to clients who have trouble with their banks is to contact the customer care centre, the regional vice-president or the bank's ombudsman.

It's often amazing how quickly problems are resolved when someone up the ladder intervenes.

Bob Aaron is a Toronto real estate lawyer whose Title Page column appears Saturdays. He can be reached at bob@aaron.ca. Website: aaron.ca.

RealtySellers back in court...before they get back in business.

2007-11-26T13:51:00.000-05:00

Thanks to REMonline.com for the following article regarding RealtySellers vs. TREB:

http://www.remonline.com/remonline/detail.aspx?menu=26&app=153&cat1=473&dt=1010442&tp=12&lk=g

Guest Column - Bob Aaron

2007-11-26T13:16:00.000-05:00

`Miller Bite' hangover probably won't drive buyers out of the city document.

Nov 17, 2007
Bob Aaron

Some industry stakeholders are predicting there will be a rush to buy houses in the 905 area code when the new Toronto land transfer tax goes into effect on Feb. 1, 2008.

As I see it, buying a home outside Toronto just to escape the new city land transfer tax doesn't make sense. Here's why:

Let's take a typical home or condominium unit selling at $300,000. The current provincial transfer tax is $2,975 and after Feb. 1, the city transfer tax will be an additional $2,725. Buying outside Toronto will result in an immediate tax saving of $2,725, but every year afterward, the municipal taxes will be substantially higher – eventually wiping out the savings in transfer tax.
Based on a residential property assessed at $300,000 the municipal taxes for 2007 are:

Toronto: $2,558.53
Mississauga: $3,007.56
Oakville: $3,022.01
Markham: $3,061.25
Aurora: $3,356.73
Newmarket: $3,380.66
Brampton: $3,586.267
Pickering: $4,057.87
Ajax: $4,127.80
Whitby: $4,144.08
Oshawa: $5,127.71

Based on these figures, Toronto's property taxes are artificially low compared with neighbouring municipalities, and the city's budget deficit is being foisted onto Toronto property buyers – but that's another story.

The new city tax for one- and two-family residences is not an exact mirror of the provincial land transfer tax. Based on the purchase price, the city tax is calculated at these rates:

On the first $55,000: 0.5 per cent
Between $55,000 and $400,000: 1 per cent
Over $400,000: 2 per cent
On all other property, the transfer tax on a sale price over $400,000 up to $40 million is 1.5 per cent.

In contrast, the existing provincial land transfer tax on residences is calculated at:
0.5 per cent on the first $55,000 of the sale price
1 per cent on the excess up to $250,000
1.5 per cent on the excess up to $400,000
2 per cent on the excess over $400,000

Depending on the timing of the purchase agreement, some buyers will be exempt from the new city tax. Buyers will be eligible for a full rebate of the municipal transfer tax where the agreement is entered into before Jan. 1, even if closing occurs after Jan. 31.

As a result, anyone who buys a Toronto home or condominium before New Year's Day, even if closing doesn't take place for several years, will not have to pay the city transfer tax.

First-time homebuyers are entitled to a rebate on the purchase of new and resale homes priced at up to $400,000. If the city applies the same rules as the province uses, then the first $3,725 in tax for first-time homebuyers will be forgiven even if the price exceeds $400,000. (The provincial rebate of $2,000 only applies to first-time buyers of newly built residences.)

No city transfer tax is payable for agreements entered into after Dec. 31 if closing takes place before Feb. 1. The city tax is payable, however, if the agreement is signed after Dec. 31 and closing occurs after Jan. 31.

Tax is payable through the Teranet electronic land registration system upon registration of the deeds.

While I'm on the subject of the new city tax, it seems to me that the formal name, Municipal Land Transfer Tax, is too much of a mouthful for everyday use, so I've been looking for a nice shorter version.

Back in 1958, the Ontario government under Premier Leslie Frost introduced the province's first retail sales tax, initially pegged at 3 per cent. It was nicknamed the "Frost bite," and was called by that name for many years afterward.

Unless anyone can come up with a better name for the municipal land transfer tax, I am pleased to announce that its new nickname is "Miller Bite," (inspired by a malt-based beverage known as Miller Lite).

This way we won't forget the mayor who is responsible for the misguided attempt to saddle the city's budget shortfall – which belongs to all of us – onto the backs of homebuyers.

Bob Aaron is a Toronto real estate lawyer whose Title Page column appears Saturdays. Email: bob@aaron.ca.

Stan Albert: Put Your Business In Top Gear

2007-11-19T12:38:00.000-05:00

Stan Albert: Put your business in top gear

Are you driving your business in standard gear, or are you driving in automatic?

I just returned from our franchise’s Canadian conference in Whistler, B.C. and was totally blown away – not only by the magnificence of part of Canada that I’d never seen before, but by the magnitude of what some of the higher producing sales reps are doing to create a fantastic career.

The conference venue in itself was totally awe-inspiring. How could it not be, surrounded by the towering mountains and vistas? Kudos to the organizers for what was to me, after attending many of these functions, a well-rounded event that had something for everyone.

I was especially impressed with one of the keynote speakers, John Furlong, the chair of the Olympic Committee for the Winter Olympics 2010. If you get the opportunity to go to the Olympics in two years, it will be a feast for the eyes and moments to cherish forever. The best thing about conferences is not only the leisure/fun time away from business, but also the opportunity to meet up with colleagues from far and wide over lunch, coffee breaks, fun nights and the closing dinner. If you go to these events, be prepared to share your experiences and you will receive back 10-fold some great information about what your colleagues are doing to enrich their careers and give back to their communities.

I was tremendously impressed with the charity works that reps do in all communities, large and small. Many of you know by now, how high I am on referral business. I happened to sit at the closing dinner with a salesperson of some fame, Ken Eddy, of Re/Max Central in Calgary. I remembered him from his presentation at our franchise in March, and he and I discussed many areas of the business. One thing stood out – that over his many years in the business, he has made over $1.5 million in commissions from referrals. No small feat eh? He attends as many franchise functions as possible during the year and still has time to travel abroad for up to a month at time. Of course, he has a sales team of about seven.

So, is your career in standard drive or automatic? (By the way, if yours truly didn’t live in Toronto, I would probably drive a standard shift car.) We all have to face the fact that this business is changing every year. More and more brokerages are entering into franchises. There is more education/training available now than ever before. The websites that compete with us conventional guys are becoming the wave of the 2000s and beyond. Take a look at Zillow.com, which has over 40,000 listings. If you are not planning or involved with one or more websites, you are not in the “automatic” sphere that will make you a wealthy representative.

The idea that we will follow the U.S. into the doldrums due to the sub prime mortgages is nothing more than some economist waving a red flag. Nonsense. This could be nothing farther than the truth. It is true however, that we are due for a correction. When, only the good Lord knows.

The other biggest trend is the wave of immigration coming into Canada. I don’t for the life of me understand why you, as an entrepreneur, are not taping into this market. If you speak a second language, or your significant other does, then tune yourself into your country of origin’s websites. Check out the real estate offices in your birth country. Take appropriate steps to drive those immigrants to your website(s). I’ll talk more about that in next year’s columns. Attain as many designations as you can. Consumers respect the fact that you have worked harder than most and can offer more in the way of services and knowledge. And that’s the way I see it from my desk this month.

Thought for the month: “Real success comes from loving what you do and doing what you love.” Jacob Albert 1900 – 1980

* * * * *

Here’s a letter to the editor that I recently sent to REM concerning Bob Aaron’s article on Seller Property Information Statements (SPIS)s.

I am somewhat miffed and at the same time flattered that Mr. Aaron would take the time to take my article to task.

Mr. Aaron, it would please you to know that I read your columns religiously, after I see how the Jays/Raptors/Leafs are doing. Have done so since you started writing! I have great respect for your information. However, I do not doubt, as other brokers do, that you have a mound of cases relating to SPIS issues. Over the years that I have been managing offices since the SPIS came out, I’ve overseen nearly 12,000 agreements.

To date, none of my brokers or I have been to court over an issue arising out of SPISs. That doesn’t mean that you, as a barrister/solicitor, don’t have ample “ammunition” to throw out to the public. What other brokers and managers emailed me regarding your article, was that you stated if a consumer signs a SPIS they should get a good litigation lawyer. If this is not fear mongering, I don’t know what is!

Wouldn’t it be better to recommend to OREA that you have some better, safer clauses that you, as a respected lawyer in the industry, could offer to make the form less prone to litigation? As well, the article I wrote stated that there are two views on SPISs. And yes, I totally agree, that it does currently protect Realtors in whichever province they practice in.

Stan Albert is celebrating his 36th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

Stuff in Real Estate that has happened during the month of November.

2007-11-16T10:38:00.000-05:00

I think there is a Condo FRENZY happening. And not just in Toronto. Check out Linda Leatherdale's latest column...Also, Re/Max has weighed in with their 2 cents worth on the whole subject of Canadian condos. But the $2,000 question of the day/week/month/year is...Did YOU line up for yourself or for a realtor friend? Check out the latest on how crazy Torontonians are for Condos! The sky is falling! But is seems everything is back to normal in Vancouver. Whatever normal is...

Scotiabank is not my favourite bank. But I'll tell you this: Their stock is like gold and now you can buy Mexican real estate through them. Go figure! I guess Royal is not the first in something.

Here's a brief update on what's happening around Canada:

Calgary, Ottawa, Regina, Montreal, Toronto, Vancouver, Victoria,

Hey Realtors! Remember the GST? Here's some info on its impact on the Housing market: Now, if you live in Toronto where the Millerites increased taxes these may not apply...Here's an interesting Toronto Star article. More info on GST.

Real Estate Bust? Maybe....Maybe not.

Walked through the Eaton's Centre last night after catching a live taping of The Hour. Seems like I'm not the only one shopping at Eaton's these days...

Hey! Remember Garth Turner. The real estate and market guru turned Politician? Here's his take on real estate et al. Another article from Garth I stumbled upon.

Want to Retire? Better pray the Indian Real Estate industry stays....hot and spicey! Serious! Read HERE. Speaking of retirement, it seems the Canadian boomers are not scared of their American cousins. Good on 'em!

Okay! That's enough for today! Have an XS Energy Drink on me this weekend. It's my birthday!

Cheers!

Karim Kanji
www.RealCashCanada.com

Taxes and Real Estate

2007-10-18T12:01:00.000-04:00

So. I wonder is "So."can be a sentence? Anyways, I have digressed before I began. So, here's what I want to say. Now, That's better. Over the next few days,those of you living in the Toronto area will hear both sides of the great tax debate of our lives. The city below Vaughan is planning to increase the land transfer tax and vehicle registration costs.

But all wehearabout is how the land transfer tax will not help alleviate Toronto's financial woes. In fact, the Toronto Real Estate Board will have all of us beleive that the tax will destroy the home of the Blue Jays. Why? Well, it will increase the cost of buying/selling real estate. Nevermind that Realtors make 5%. God forbid that the City should raise funds to help pay for street repairs, water and hydro repairs, libraries and swimming pools.

You want my opinion? Of course you do. That's why you're reading this.

Mr. Miller - be creative. Take some time and think about what you are doing. Control your spending and look for alternative and creative ways to raise funds to help pay for the operation of Leafs Land.

TREB - Increased land transfer tax will not destroy Toronto. It MAY harm your members income though. But, a broke Toronto is not good for your constituents either.

And that's my take on the issue.

Next time GO VOTE YOU LAZY ONTARIO ELIGIBLE (NON)VOTERS!!!

Karim

Stan Albert - Guest Column

2007-10-09T10:23:00.000-04:00

Seven ways to alter your career

WARNING: Reading this article may enhance your bank account to the point where you will be put into a euphoric income tax bracket -- six figures! Please consult an accountant prior to implementing these strategies.

You know what? Your methods, your attitudes, and your resume all need a tune up. Yes, a tune up. Many of us go through our careers in real estate thinking that what we’re doing has no “date of expiry.”

Here are some thoughts to ponder:

1. Is the resume you include in your handouts up to date? When was the last time you updated your resume and your photo? I am always amused at the photos of my colleagues that belie their current visage. When updating your resume, do you include all of your achievements, your community work, and special events that you have hosted or helped raise money for charities? Have you added members to your team, and added websites of note to the consumer? What new educational courses of note have you recently taken or conferences have you recently attended? Broker-owners take note – this applies to you as well.

2. Give yourself a test. Write down the following: a) What have I been doing differently that makes me more money and creates more referrals? b) Where could I go to learn more about my industry to make me a better agent overall? c) How much time have I been investing in my career to make my life easier and make more time for my family and recreation? d) When do I do most of my constructive work? e) Why am I in business? Is it to be independently wealthy; is it to better myself overall? Am I leaving a legacy that I will be proud of at the end of my career? f) Who would I sell my business to if I decide to retire and how will I do it?

3. Another idea to kick-start your career all over again is to join a professional association, or even better still, become active in your board. Doing either of these things will give you a different outlook on your career. It will enhance your education as well as create additional spheres of influence. At least, if nothing else, you will see how the leaders in your area perform all the tasks necessary to run a board in a business-like atmosphere. You may become so imbued by attending meetings that you might decide to run for director or even as president.

4. References from past clients. Oh my gosh! Have I said this before? It is amazing to me, after so many years of doing sales presentations and courses, how many of us neglect the people who we have helped sell or buy properties. Out of sheer neglect or absence of a program to maintain our relationship with them, we find they’ve moved. By establishing a continuous program of staying in touch, you will be amazed at the business you can create.

5. In your careers, you should be looking to develop an ancillary business that is related to and within the confines of your licensing – such as property management or a concierge service, or buying income property.

6. When is the last time you attended a conference other than a real estate conference? Broaden your horizons and your ideas. You may actually learn something new and revolutionary that may alter your life and your lifestyle.

7. When you look in the mirror, do you like what you see? If you are overweight/underweight, get yourself to a doctor and then to a gym. If you look good, you’ll feel good and better about yourself. Remember that you never get a second chance to impress someone.

These are all interesting and thought-provoking ideas to test out every year. Make up the list and review it with your family, friends, colleagues and broker. Remember this, my dear readers: Change is constant. If you don’t review your career and what you’re doing about it from time to time, watch out for the “newbie” fresh out of the courses. He’ll overtake you eventually, unless you prepare yourself as a professional.

Take nothing for granted in this business of ours. If you prepare for the worst that may ever happen, you will survive.

At least, that’s the way I see it from my desk this month. Thanks for the over 100 emails that I received for my Two views on SPIS column in August. It is always encouraging to know that my articles are read.

My good friend and colleague, Barry Lebow, along with Ron Abrahamson, will be hosting a cruise for CEU courses January 5-12. I’ll be along too! For details: www.jm7seas.com/cruise. Thought for the month: “The person who makes a success of living is the one who sees his goal steadfastly and aims for it unswervingly.” – Cecil B. Demille 1887-1959

Stan Albert is celebrating his 36th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

U.S. house prices to fall further, says Greenspan

2007-10-01T11:46:00.000-04:00

U.S. house prices to fall further, says Greenspan

Oct 01, 2007
06:52 AM

Reuters

LONDON – House prices in the United States will continue to decline as new sales are still barely denting the supply overhang, former Federal Reserve Chairman Alan Greenspan said today.

Greenspan said there were signs the lending crisis gripping global financial markets was possibly coming to end as demand for more risky assets grows but warned the speculative fever must be allowed to run its course to enable a full recovery.

"As in similar situations of inventory excess, I would expect home price declines to continue until the rate of inventory liquidation reaches its peak," Greenspan told an audience at Reuters in London.

"There is little relevant American history to guide us in judging the ultimate extent of home price decline or the timing of a new price recovery, or by extension, the economic impact on the rest of our trading partners.

"All that I conclude is that the process of inventory adjustment has just started and we have a long way to go before residential housing and mortgage markets stabilize in the U.S."

Greenspan said consumer spending and economic growth in the world's biggest economy were also likely to remain under pressure given lower household wealth resulting from housing market weakness.

RBC, Real Estate investments, Vick and Dog Fighting!

2007-09-26T16:16:00.000-04:00

Ever wonder why Bank Fees are so HIGH? I digress. This is a blog about Real Estate. Canadian Real Estate. So then why is Michael Vick in this article? Oh yeah! THAT Michael Vick! Who let this dog out?

Seems the Royal Bank of Canada didn't do their due diligence either. Loaning $2.5 million to a budding dog fighting entreprenuer doesn't seem to be a good business practise, does it? Well, it seems RBC wasn't bankrolling the dog fighting league but rather Vick's real estate investments. I wonder if Vick's business proposal included some info on land purchase for illegal dog fighting?

Hmmm....I guess we'll find out. Or maybe not.

Read all about it HERE.

Karim

More News and Insights on 09-25-2007

2007-09-25T13:23:00.000-04:00

So now that the Canadian Dollar is at par with the American Greenback what does this hold for the Canadian economy? More specifically, will this affect the Canadian real estate industry? If so, how? These and many more questions will be tackled inthe featured articles listed below......

July 2007 saw Canadian building permits fall sharply.

U.S. housing slump hits realty jobs.

Saskatoon and Victoria prices hitting new record highs!

Scotiabank says Canadian home prices are not sustainable. Gee Whizz! Thanks for the update BnS!

RBC - not wanting BnS steal the "duh" spotlight - states that the cost of home ownership is continuing to rise.

Condo construction boosts housing starts AND Condo market is SLOWING! Make up your minds!!!!!

Feesboo's (FSBO) keeping pace with Canadian real estate boom.

Phantom Bids in Toronto.

Opps! Average Canadian resale home price slips $6,600 in August.

Young and Eligible turns into Young and INeligible.

House Poor growing segment of population.

ONTARIO ELECTION - Property-Tax Reform.

www.GuruRealEstateMarketing.com

2007-09-24T10:47:00.000-04:00

Bruno Roldan just launched www.GuruRealEstateMarketing.com the first Free Real Estate Software Initiative providing Free Virtual Tour and Flyer creation for real estate agents world wide!!!

Here is a brief summary of the benefits of the software:

Free Virtual Tour Software
Brochures
Additional Photos
Stats
Send links in emails
Links created instantly
Post on personal websites

USA – post directly to realtor.com – MLS compliant linksCanada – use your links on MLS.ca

Simple – create Virtual Tours online with digital photos

Free Real Estate Flyer's

You can create unique real estate flyers for every listing in minutes on line using the freeweb-based real estate flyer software

54 unique, contemporary real estate flyer templates to chose from.

Easy to do! - Upload photos, enter listing information, select flyer layout and color.

Put your real estate flyers on your website or in emails using the links provided.
Print flyers for open houses.
Know how many people have viewed your on line flyers.
Video tutorials guide you every step of the way.
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Canadian Dollar at Par with American "Funny Money"

2007-09-24T10:40:00.000-04:00

Remember when Canadian Money was called Funy Money because of the different colours and the low value in relation to the American Greenback? Now the tables have turned! Here's a smattering of news headlines and articles from the past few days...

Canadian mortgage market feeling effects of Commercial Paper Market meltdown.

U.S. Realtors feel effects of mortgage credit crunch.

Looking for a Real Estate Deal? What about south of the 49th ?

See! Scarborough ain't all that bad!!! Guilwood Village Profile!

A Real Estate Cancer - Barry Lebow (Guest Column)

2007-09-11T12:57:00.001-04:00

The following is an insightful article written by Barry Lebow

So far, we in Canada have escaped the mortgage default problems that are causing major financial problems in the United States and have escalated to cause problems in money markets around the globe. People in the U.S. are walking away from their obligations and some good-sized lenders have gone out of business. The problems were started by a real estate blight, a real economic cancer known as subprime financing.

A little reality check on a default in a mortgage: depending on your province, a default in a mortgage can result in a power of sale, a foreclosure or a judicial sale. The cancer is what can happen to an area where defaults are too frequent.

Having experienced three major downturns during my four decades in this industry, the problem starts simply. A mortgagor goes into default and the lender takes control and puts the house on MLS in “as is” condition. A buyer looks at this as a way to buy below market value and to get a foot into the neighbourhood. According to the law, a mortgage lender selling under a power of sale action must get the maximum price possible and there can be no such thing as a bargain price. In a foreclosure, the lender owns the property and can blow it out for whatever they can get. Human nature, though, trumps a textbook concept anytime. Buyers know that they are buying “as is” and that alone establishes that they are buying with some risk, a home inspection notwithstanding. So, a house under default sells for below the market value prevailing in the neighbourhood.

One house or condominium unit will not disturb a market but based on what is happening across the United States and what we experienced in Canada just a decade ago, one mortgage default becomes two and three and then they are rampant throughout an area. People who have worked hard, met every mortgage payment and have solid equity in their homes start to see their equity erode as the prices for mortgage default properties starts to set new market prices and hence market value in their areas. (Note that market price and market value are not always synonymous). Poor lending programs, geared to bring in abundant loans to a greedy lending institution, contributes to a loss in value for thousands of decent people who are victims of plain greed by mortgage lenders.

Think that the subprime problem is only an American dilemma? How about the world financial funds that bought stocks in subprime mortgage markets? Stock prices have taken a downturn. A major French banker halted withdrawals from three investment funds, while German banks clubbed together to bankroll a 3.5-billion euro ($4.83 billion) rescue to cover IKB’s potential losses and stem what financial regulator Bafin warned could snowball into the biggest banking crisis in Germany in more than 75 years. The European Central Bank has injected almost 100 billion euros into its money supply because of one factor – a bunch of people who never should have been given credit and had no concept of financial maturity defaulted on their subprime mortgage. As I write this, about 250,000 mortgages are now in default and that number is climbing.

Frankfurt-Trust shut one of its ABS funds to stop panicking investors from withdrawing any more cash. Despite not having any subprime investments, it came under pressure after many worried investors demanded their money back.

The butterfly effect: a butterfly in Africa flaps its wings and that sets off a motion that escalates until it creates a hurricane in the Caribbean. Well, the first subprime default has escalated into a hurricane that is cutting a swathe of destruction through many American communities with secondary but fierce winds spreading around the globe.

As reported by Bloomberg, Standard & Poor’s may cut its ratings on $913.9 million of U.S. mortgage securities backed by Alt A loans because of rising delinquencies and losses that may “exceed historical precedent.”

The Canadian Association of Mortgage Professionals (CAAMP), in a recent press release, tried to assure the public that Canada is not headed for the same fate as in the U.S.; it pointed out that there are many factors that have made the Canadian mortgage scene “a picture of health.”
Average house prices rose by about 10 per cent in both 2004 and 2005 and a further 11 per cent in 2006. Canadians remain optimistic about housing markets. For all of Canada, only nine per cent of consumers surveyed expressed negative opinions about the prospects for house prices in their community. When asked, “Is now a good time or a bad time to buy a new home in your community?” the most positive responses were given in Atlantic Canada and Ontario. The most significant jump in positive responses was seen in British Columbia, where it moved from below national average in the fall of 2005 to almost in line with the average this fall. Alberta had the most negative outlook, where many consumers considered their local housing markets over-heated.

The survey, Consumer Mortgage Choices in a Changing Market, contains a wealth of additional industry data including consumer response to new mortgage options, the age distribution of mortgage holders in Canada, popularity and rates of different mortgage terms, and anticipated mortgage renewals. For a full copy of the survey, visit: www.caamp.org.

In my own view, the subprime lending parameters in Canada are more restrictive than the American practices and better judgment is in place here. We have allowed for longer amortization periods and other options but people with the kind of poor credit and poor work history that easily found loans in the U.S. could not qualify here. The subprime lending market must be kept in check and not allowed to loosen its controls.

Thankfully, Canadians as a whole are generally more educated and more sophisticated than our friends to the south. Cooler heads here should prevail because cooler heads were already in control. Think of being in a car and you see a crash ahead of you. You can take control, apply the brakes and hope not to slide into the debris ahead of you and pray that the guy behind you does not skid into you.

We are fortunate as we can be smug watching the American crash and having the foresight to apply the brakes before we go into a skid. Remember one major factor – people follow herd instincts. The subprime losses are grossly overstated and people are acting on fear and hence the stock market has losses. There is no true basis for this fear. Although 250,000 mortgage defaults may seem high, you must know this one major fact – there are 44 million mortgages in the United States and only about 0.6 per cent are in default. Given those numbers, one should not lose much sleep, because the American mortgage market is stable. Heck, only about 13 per cent of the entire U.S. mortgage market is subprime and most of those are not in default.

Get some sleep, this will pass. Compared to the savings and loan crisis in the U.S. years ago, this subprime media frenzy is a tempest in a teapot.

Starting in real estate in 1968, Barry Lebow calls himself a real estate professional as he wears different hats as an appraiser, arbitrator, Realtor and educator. He is CEO of Lebow, Hicks Ltd. a long established appraisal and consulting firm and CEO of the Real Estate Training Institute, a training company for Realtors. He recently opened his own boutique brokerage, Senior Agent Inc. Realtor. (416) 781-5504; email barry@lebow.ca ; website www.negotiator.ca .

It was nice knowing you.....

2007-09-05T12:43:00.000-04:00

Harry Stinson is leaving Toronto and Canada. At least that what he says. My advice? Don't bank on it. In any case don't forget to send him flowers and a card. I don't think he's taking mail at 1 King West though...

EXIT a Canadian Success Story

2007-09-05T10:55:00.000-04:00

We all know that the Canadian Real Estate market is STILL moving along nicely. However, not many people have heard of success stories that transcend the local or national market. There is one company, however, that is making waves. And they have been for a number of years.

Introducing Steve Morris and Exit Realty.

Steve was recently named one of real estate's most influential people in a well-known industry magazine. To read the article click HERE.

Karim

Guest Column - Bob Aaron

2007-09-04T13:01:00.001-04:00

September 1, 2007

Title insurance policies can differ

Are all title insurance policies the same? Are the coverages provided by the various title insurance companies so similar that it doesn't matter which one you choose?
These questions arise in the wake of a recent article on title insurance which appeared in the Aug. 18 New in Homes. The article quoted Toronto real estate lawyer Bruce McKenna, and Mississauga lawyer Lorne Shuman, who works for First Canadian Title.
"Both Shuman and McKenna suggest purchasers go with the insurance provider recommended by their lawyer," the article said, adding that "while there are small differences between providers, your lawyer will be working with the provider he or she feels is best for you."
McKenna is also quoted as saying that, "basically, the coverages are so similar and the market pressures to deal with claims in a reasonable way are so large that I don't feel the insurer matters very much."
I have to differ, but in doing so I should first point out in fairness that I am an elected bencher (director) of the Law Society of Upper Canada, which owns the Lawyers Professional Indemnity Company (LawPRO). That company insures all Ontario lawyers for errors and omissions, and also owns TitlePLUS, one of several licensed title insurance companies in Ontario.
In my capacity as a Law Society bencher, my legal duty is to assist in governing Ontario lawyers in the public interest. I am not, however, a cheerleader for the Law Society.
I have no role in the operations of LawPRO or TitlePLUS except to approve or not approve their annual reports, along with more than 50 other bencher colleagues. I do not sit on the board of LawPRO and do not attend its meetings.
Having said that, I feel compelled to explain that there is, in my opinion, a significant difference among title insurers. Conventional title insurance policies cover a lawyer's negligence only if the mistake relates to a loss that is listed in the policy as an insured risk.
In contrast, only TitlePLUS routinely makes available comprehensive coverage for the legal services provided by a lawyer, in addition to the listed risks. In other words, any negligence by a lawyer in a real estate transaction is covered by a TitlePLUS policy, whether or not the mistake is an insured risk set out in the policy.
What this means is that in a real estate transaction, if a lawyer makes an error amounting to negligence, the legal services coverage in a TitlePLUS policy protects the homeowner, even if the lawyer's mistake is not related to one of the itemized title risks insured by the policy.
One example of legal services coverage occurred when the buyer of a condo unit told her lawyer she wanted to pay cash, but wound up getting stuck with paying interest on a vendor-take-back mortgage during the interim occupancy period. The legal services provision in the TitlePLUS policy compensated the buyer for her $9,000 loss – even though the policy did not specifically insure against this type of loss.
Without the coverage, the client would have had to sue the lawyer for the loss.
The Aug. 18 article also quotes Lorne Shuman as saying that title insurance costs about $299 for a house purchase with a mortgage, but it varies with properties and price range.
In fact, there is a significant difference in the cost of residential title insurance policies among three companies that I called last week. For a resale house selling at between $200,000 and $500,000, with one institutional mortgage, First Canadian Title (FCT) quoted $322.92. Stewart Title Guaranty Company (STG) quoted $351, and TitlePLUS (TP) quoted $238.80 including the legal services coverage.
For new homes, the premiums drop to $268.92 (FCT), $324 (STG), and $233.10 (TP). In both of these types of policies, Stewart Title rebates a fee of $100 to qualified lawyers who arrange coverage over the Internet. The fee must be disclosed to the lawyer's client.
For resale condominium units in the same price range, the premiums are $193.32 (FCT), $189 (STG) and $184.80 (TP).
Whenever I can, I use TitlePLUS policies for purchaser clients. The cost is lower, and the coverage is – in my opinion – far superior.

Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818.Visit the column archives at www.aaron.ca/columns/toronto-star-index.htm.

Guest Column - Stan Albert

2007-09-04T13:01:00.000-04:00

What makes a champion?

Recently I was visiting Mike Donia, one of our franchise’s leading Realtors. I looked around at the walls of his office, which features sports memorabilia and photos of the great sport professionals of this and bygone eras.
Something of an epiphany hit me between the goal posts of my eyes! Here I sat, surrounded by so many photos and memorabilia of the great athletes in sports from baseball, hockey and racing, all giving off an aura of success. Deep feelings arose in me – one of awe, and one of supreme admiration for their achievements.
Zig Ziglar, at one of the many presentations that I had the privilege to attend, impressed upon his audience that in order to succeed in life, you must have a positive approach. There was no “room for stink’n think’n!” So often, we broker/managers hear many negatives about the industry and not enough of the pluses that make us successful.
Now, I doubt very much if many of the great athletes represented in Mike’s office read any of Zig’s books or attended any of his seminars. But here’s what I know from what I’ve read and heard first-hand about the true champions in sports, including some memorable discussions with Johnny Bower, Bobby Orr and Bobby Hull: 1. They’re committed to winning. 2. They’re willing to sacrifice and go the extra mile. 3. They’re coachable. 4. They have the vision of being the best of the best. 5. They practice, practice, practice. 6. They study their craft and educate themselves daily.
So whether it’s Mario Andretti winning the Indy 500 or Mario Lemieux winning the Stanley Cup, it is a composite of attitude and ability to improve their “game” that they bring to the forefront. They are not prepared to settle for second best, although many times a better team, a better driver or a better server will beat them out for the championship.
They respect those who reach the top of their field and at the end of the day they say, “Wait ‘til next year.”
I wish that I had $10 for every time I’ve heard, “I was only short of X dollars on the offer,” or that “I was short x dollars to make it to the top producer level!” Get over it. You will live to fight another day and if you work with professional acumen, you will fulfill your dreams and goals.
We in real estate, in order to develop the “winning attitude,” must adopt the characteristics of the champions in sports. It doesn’t mean that we win at all costs. It is with true sportsmanship that athletes win. As real estate people we must be true to the codes that guide us in all our endeavours, as do the successful athletes.
Those athletes who are caught cheating or gambling usually pay the price of relinquishing not only their fame, but their fortune as well. I never understood why Realtors get themselves in such trouble over what seems a little bit of money. There is no fame in getting caught. Only shame and perhaps banishment, as sometimes happens in major sports.
Some of our Realtors have come before various disciplinary bodies to answer complaints. Here in Ontario, the results of the hearings are posted on the RECO website for some time. What a horror!
Sometimes Realtors even lose their right to earn a living in real estate. And that is a shame, in light of all the effort and hard work that they may have incurred over the years in real estate.
So, when Realtors think that they can skirt an issue, sneak in a phony offer, submit an incomplete listing information or speak disparagingly about a colleague, perhaps they should be thinking more as a professional should. They don’t really think about the consequences. They think only of the deal and the commission, and not what will hurt their fellow registrant.
It is time, I firmly believe, that all brokers and their broker managers exerted more effort to prevent such amateurish actions. Let’s take a bold step forward and encourage a more professional approach to being a top professional without any unprofessional actions or activities.
It’s simply not enough to think that credit courses given by our various provincial regulators will enforce Codes of Ethics and the rules of the boards and provincial and federal guidelines and regulations. There is no perfect organization to assist in this work.
But, hopefully over the years to come, able minds will come forth to create a better system. The public demands it of us and they should receive it!
It is my belief that individual boards must take a more defined role in assisting the provincial regulators in monitoring codes of conduct. Having mandatory updates as part of a registrant’s renewal process is simply not enough, in my opinion. I believe that there is a better way to enforce current and future rules of conduct.
Registrants must be more responsible and accountable for their actions or their inactions. Most of us realize that brokers are responsible for the actions of our registrants. But there has to be a balance in the relationship between brokers and their Realtors.
So, I challenge all of you to put on your professional gear, as we head into the latter part of this decade. You can do it by taking a more active role in your board and by emailing the director who represents you in your own province about what we can improve on.
Make the effort to be more professional in every part of your business practice. It is not enough to just say: “Practice the Golden Rule.” We have to establish in our minds, that no amount of money, no amount of fame, is worth besmirching our fellow registrant or support person. Those who practice this unacceptable conduct will eventually have their fate decided the disciplinary authorities.

And that’s the way I see it from my desk this month.

Quote of the month: “Nobody got anywhere in the world by simply being content.” Louis L’Amour, 1908-1988.

Stan Albert is celebrating his 36th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

1200 to be Laid off In Oshawa from GM plant.

2007-08-31T12:18:00.000-04:00

So, you must have heard the news that 1200 people will be out of work in Oshawa. They work and will soon be laid off from the GM plant there. That's the place they make trucks for the US market. Seems Americans are buying less trucks these days?

What does this have to do with Real Estate in Canada?

Well, according to Thomas Walkom of The Toronto Star, A Lot!

READ HERE.

News and Views from the Week that was....

2007-08-27T11:57:00.000-04:00

I think that it is very interesting what is happening in American real estate. With people 'walking' away from 'unaffordable' homes, there seems to be many deals to be had. Al of a sudden the real estate market down south is a buyers market...STILL! Only thing that has changed is that the sub-prime mortgage fiasco will keep interest rates low. So housing continues to be an investment opportunity for many new and eager home buyers.

And what about here in Canada? Well, the market continues to boom. And not just 'out West'. Even here in my hometown province of Ontario, the market continues to reach new peaks even though many experts disagree on the pace of the industry. Is it slowing down? Is it still heating up? Flip a coin and pick your poison.

As for me. I'm waiting for two things before I jump into the buyers market. First, paying down debt. Second, waiting for the real SALE.

Now, on to the news....

I thought you might be interested to know that a local real estate outfit is offering a Ferrari to a co-operating broker:

Markham, ON, Canada August 17th, 2007 - Arun Mehta, President & CEO of the Richmond Group of Companies announced that Richmond Realty Group will offer a Ferrari 355 Spider to the co-operating broker for a day in appreciation for the sale of 35 McKenzie Avenue, Rosedale.

"We felt that due to 35 McKenzie Avenue being in the price category, and in the location of Rosedale that it was incumbent on our part, to initiate marketing efforts that reflected the financial stature of the house, and location. We are quite fortunate to team up with GTA Exotic Car Rentals who are providing this car. They have been very supportive throughout this marketing campaign. The response from our clients and the brokerage community has been very positive. We are also quite pleased to be selected not only for the disposition, but also for the property management of this truly magnificent home," said Arun Mehta.

Richmond Realty Group (Ontario) Inc. (RRG) is a full serviced real estate company. Its sister company Richmond Advisory Services Inc. (RAS) is a multi-disciplinary management consulting firm which provides real estate, risk management, and workforce mobility consulting services.

Both RRG and RAS are headquartered in Markham, Ontario.

For more information on the Richmond Group of Companies, please refer to the following link:

http://www.richmondrealtygroup.ca/richmondadvisoryservices

Richmond Advisory Services Inc.
Richmond Realty Group (Ontario) Inc. Brokerage

Mary Corrado
Communications Director
mccommunications@richmondrealtygroup.ca
Phone: (905) 370-0216

Tell an American that you're Canadian and they'll ask you how you heat your igloo. Serious! Maybe it's because they watch too much Fox and CNN News. But seriously, there's only one left....Igloo that is.

La-La Land is taking notice of the red-hot Canadian market. Kinda late dudes!

If you didn't notice, GREEN is sexy. And 401 and Kennedy is bring sexy back! Yeah!

Leona Helmsley - Rest In Peace. A Character in Real Estate that will be missed but not forgotten.

Indian Real Estate Symposium coming to Canada!

Someone in Edmonton believes that Canadians may soon suffer the same fate as those poor Americans.

From Ugandian refugees to Ottawa's new landlord....

More stuff about Toronto's Donald Trump - Harry Stinson.

Floating Homes? Well, according to CNN.com it's the 'wave' of the future.

Another Stinson article. Makes me feel sorry for him...just a little...

Relying on municipal records too risky - Guest Column - Bob Aaron

2007-08-21T11:27:00.000-04:00

Relying on municipal records too risky

In last week's column, I wrote about a client of mine who signed an agreement to purchase a property on Burgess Ave., in the Beach neighbourhood. The lot size was advertised as 36 feet by 96 feet, but when I pointed out to my client that the real lot size was only 24 feet by 90 feet, he backed out of the deal.

Afterward, the agent who was responsible for the error in the property listing told me, "I didn't know I was supposed to verify it with MPAC (the Municipal Property Assessment Corporation)."

Several readers responded to the column and pointed out that it is actually quite risky to rely on information in the MPAC records, or the municipal tax rolls that are based on the MPAC data.

Mary Balsdon, a real estate broker in Lindsay, wrote, "Sad to say, it's not always correct there. Personally, I have had major problems for clients twice due to incorrect information in the assessment."

Derek G. Graham, a professional land surveyor in Fergus, was more succinct. "Yikes," he wrote, "The MPAC reference is a bit troubling."

They're both right.

My own favourite tale about errors in the municipal tax rolls went all the way to the Supreme Court of Canada in 1994.

The case involved two islands in Georgian Bay. Island 99B is described as Rock Island because it consists of bare rock and Island 99D is described as Cottage Island because it has a cottage on it.

Years ago, the same person owned both islands. She confused them, and referred to Rock Island as 99D instead of 99B. Similarly, she referred to Cottage Island as 99B instead of 99D.

The islands changed hands over a period of 40 years after the first sale in 1954, with succeeding owners unaware that they had title to the "other" island.

Although the tax records of the Municipality of Georgian Bay properly identified the location and owner of each island, they showed the undeveloped property assessed at a higher rate than the developed property. As a result, the owners of Rock Island were taxed as though they had a cottage on it, and the owner of Cottage Island was taxed as if the island was unimproved.

In 1964, Jean Strain bought Cottage Island but believed she owned Rock Island. In the 1990s, she stopped paying taxes on it, presumably in belief that it was undeveloped and without much value.

In response, the municipality conducted a tax sale of Island 99D, Cottage Island. Strain received notice of the sale, but the Zeitel and Henning families, who were actually occupying the island in the belief they owned it, were never notified of the sale.

Had the error been pointed out to the municipality before the sale was concluded, there is no doubt they would have rectified it and not proceeded with selling Cottage Island. But that's not what happened.

Susan Ellscheid and Donald Simmons placed a successful bid for $999 on the island, and bought it sight unseen, thinking they were the proud new owners of a piece of rock in Georgian Bay. In fact, they became the registered owners of Cottage Island.

When Ellscheid and Simmons arrived to take possession of their island, the mistake came to light and the parties headed off to court. The trial judge declared the sale was void, but in 1991 a split decision of the Ontario Court of Appeal upheld the sale.

The case reached the Supreme Court of Canada in 1994. In a 3-2 decision, the court ruled the sale was valid.

The court said it would refuse to interfere in a tax sale where the municipal records mistakenly confused the property sold with a property occupied by other taxpaying citizens.

The court noted that the legislation provides that a tax deed, once issued, is final and binding.

As well, the court said that a survey certificate of the islands would have removed the possibility of a mistake.

The Zeitel v. Ellscheid case makes clear that it is risky to rely on municipal tax and assessment records to verify land size or location.

The Supreme Court has spoken. Make sure you know which property you are buying. Get a land survey.

Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818.Visit the column archives at www.aaron.ca/columns/toronto-star-index.htm.
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Two views on property disclosure forms - Guest Column - Stan Albert

2007-08-21T11:19:00.000-04:00

Two views on property disclosure forms

Sometimes my readers must think I am a self-appointed ombudsman for registrants from coast to coast.

I wish to comment on a recent article by Toronto lawyer and frequent REM contributor Bob Aaron, which appeared in the Toronto Star on May 12. (You can read it at www.aaron.ca.) In it, he says, “Sellers should never sign what is called a Sellers Property Information Statement (SPIS) in Ontario.”

Aaron, a well-known and respected real estate lawyer, writes: “I’m not sure why it happens, but when ordinary, honest citizens are selling their homes and large amounts of money are involved, they sometimes succumb to an overwhelming temptation to become less than candid in signing the paperwork for the transactions.” He cites a case where homeowners declared a specific amenity to be in good working order. When the agreement was signed it was claimed the amenity was working, although later the homeowner admitted it was not working. The seller and the registrant were found 50/50 per cent liable.

Then Aaron cites another case in Nova Scotia, where the seller warranted the water supply in an accompanying Property Condition Disclosure Statement (PCDS), which is similar to the Sellers Property Information Statement in Ontario and to British Columbia’s Property Disclosure Statement.

The Nova Scotia buyers sued successfully and won a large settlement from the sellers. “Justice Gordon Tidman provided an interesting comment on the disclaimer in the disclosure form,” writes Aaron. “ ‘The court is satisfied,’ he wrote, ‘that this disclaimer is for the benefit of the Realtor only and not for the vendor.’ ” The judge said that “Makes clear that the vendors are responsible for truth in their statements.” It is interesting to note that England and Wales have made a similar disclosure mandatory for sellers.

I feel that most sellers are truthful, as are the majority of registrants in all provinces. There are relatively few cases that come before the courts in relation to the vast number of successfully completed transactions. The many happy sellers and buyers that we service can readily attest to this. But there are rotten apples in every barrel.

I remember taking a Buyer Agency course in the mid-90s with Merv Burgard, Q.C., when he emphatically stated: “Discover. Do it. Document it. File it.” I strongly believe that most professionals in our business are prudent enough to do these things as it applies to all our documents.

In Aaron’s column he says, “Sellers signing SPIS forms should keep the name of a good litigation lawyer handy. They may well need it.” He also acknowledges that he has heard from several people in the real estate community, like me, who disagree with him.

I don’t think the form is really that difficult to comprehend, although there are parts that people may not know or understand. If this is the case, they could simply write down that they don’t know, or get in touch with their lawyer to counsel them.

I believe the form was initiated by the Muskoka Real Estate Board, which may have copied it from our U.S. colleagues. Many of the provinces adopted some format of it and use it currently. Some of the boards have made it mandatory. The Toronto Real Estate Board decided not to make it mandatory, because it is a matter of “liability for TREB and it fell under non-jurisdiction under REBBA 2002 for the Real Estate Council of Ontario.”

What protects us as registrants?

I have personally polled 36 registrants from B.C. to Nova Scotia. Not all of them ask the sellers to sign, but most of the full-time professionals do. If sellers refuse to sign, they ask them to draw a line through the form and state that they refuse to sign and initial it. Most of the agents I spoke to agreed that it was a valuable part of the listing agreement.

Aaron suggests that the buyers should get a registered home inspection prior to consummating the transaction. I believe that most of us would do so as a matter of form.

Over the years that I have had the privilege of serving as a manager and a committee member on both RECO and TREB, I do not recall one instance where the sellers have had to “have a good litigation lawyer handy” after signing an SPIS. In talking with many of my peers, this last statement is bordering on “fear mongering,” on the part of Aaron. In the future, I would love to see that solicitors who write for nationally distributed newspapers refrain from brush stroking all parties to a transaction, as being tarnished or dishonest.

An additional note about another of Aaron’s comments, that “it is always a good idea to have the Agreement of Purchase and Sale reviewed by a lawyer before it is signed.”

I think that in some cases, this is a prudent idea. But in a hectic market that most of us are involved with, what happens to “time is of the essence?” Really, is a registrant and his client going to try to reach a solicitor at 11 pm or even later, when some deals are going down?

Most of us are quite professional and astute salespeople who pride ourselves on taking time and effort to ensure our clients are well served. I have yet to see or hear one lawsuit that was a result of SPIS errors or flaws, as a result of a form being signed. It is one form that has been devised to at least assist the registrant in attempting to garner accurate and honest information from our sellers.

In a recent OREA magazine, Burgard writes: “Show the buyers the SPIS.” In a case that he describes where the agent failed to show the buyers the SPIS, the registrant was found liable for his breach of duties. Cost to the registrant and the brokerage was $27,000.

“Agents can be held accountable for failing to protect their clients by informing them of the special risks of a transaction. Warn them. Give them the SPIS,” says Burgard. Two well-versed and respected solicitors: two different opinions!

It is time for the individual boards across the country to seek the assistance of the provinces to step up and make it mandatory to require the forms, to help our registrants become better and more proficient. If the U.S. and England and Wales have done so, what are we waiting for?

It boils down to the ethics of the sellers in most cases. Most are ethical and honest people. What can we do about those who are dishonest? The courts will decide eventually and we, unfortunate souls that we are, will usually be dragged along and found to be at fault somehow.

Honesty is the best policy.

I would like to know your feelings on these issues. And that’s the way I see it from my desk this month.

Thought for the month: “A discovery is said to be an accident meeting a prepared mind.” – Albert Szent Gyorgi 1898-1986

Stan Albert is celebrating his 36th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

CMHC Housing Market Outlook - 3rd Quarter 2007

2007-08-17T12:06:00.000-04:00

Here it is guys! Read 'em and weep! I mean, enjoy!

Who is actually behind the Toronto Trump Tower?

2007-08-17T11:59:00.000-04:00

Well, it's not The Donald. In fact it's Canada's youngest billionaire, Alex Shnaider. And not only is he the muscle behind the vertically challenged Trump Tower but he's also a client. The Toronto Star had an excellent article that you can read HERE. Enjoy!

Did you know there is no such thing as the Ides of August? Go figure...

2007-08-17T11:38:00.000-04:00

Did you know that the average home price in Canada's 25 largest cities has risen to $332,442? According to the National Post report housing prices have risen more than 13% from a year ago. I bet you dodn't even know that Canada had 25 cities! Can you name even 10?!

Even so, the Canadian Real Estate Association (CREA) is agreeing with 'experts' that Canada should have more than 25 cities...just kidding...CREA says that the housing market is cooling. Not crashing. Cooling. Ahhhhh.....

Condos are booming in the 'burbs. I thought that the only thing to be found there was white picket fences and semi-detached shoeboxes? See! You learn something new everytime you visit this blog!

The financial mess in the States as a result of sub-prime mortgages is HUGE news down south. Just don't see that happening in conservative Canade. But it does make ya'll feel good, doesn't it? LOL!

Sorry. I know it's not funny. But if you want to know the history of the sub-prime crash read the following story that I found in the Globe and Mail.

News - Royal LePage and Harry Stinson

2007-08-08T10:31:00.001-04:00

(The second article is of personal interest. As Harry Stinson was developing 1 King West, my wife and I visited the property to take a look at the property. Harry was there. And man, was he rude. We wanted to see a suite, but I guess because we didn't fit the 'profile' were told there was no more viewings. I tried to strike up a conversation but I realized then that Harry was into condos and not people. Well, maybe Harry isn't gonna be into condos anymore...)

Real estate growth boosts Royal LePage

Aug 08, 2007

09:48 AM
Canadian Press

Real estate firm Royal LePage Franchise Services Fund (TSX: RSF.UN) reported today its second-quarter earnings more than doubled to $3.6 million from a year-earlier $1.5 million.

Earnings per unit for the period were 36 cents on a diluted basis, compared with 15 cents per unit in the prior-year period.

Royalty revenue for the April-June period was $8.8 million, up 11.4 per cent over $7.9 million in the same period in 2006 on "continued growth of the Canadian residential real estate resale market," the fund said in a release.
"The growth in royalty revenue exceeded our expectations, reflecting the ongoing expansion of the Fund's underlying network of Realtors, the surprising strength in housing unit sales and steady average price appreciation across Canada," president and CEO Philip Soper said.

Units of the trust, whose revenue comes from franchise and service levies charged to 600 locations of brokers and agents under the Royal LePage and Johnston & Daniel brands, were untraded early Wednesday at $13.56 on the TSX.

THE BATTLE OF 1 KING WEST

TheStar.com

Harry Stinson's nightmare

"We love this building. ... But we've been thrown like pawns onto the battlefield" Mark Russo , 1 King West condominium owner

His patience expired, David Mirvish goes to court to get his millions back

Aug 08, 2007

04:30 AM

Jennifer Wells , Business columnist

"Unfortunately, I have lost a great deal of money, and I have lost all confidence in Mr. Stinson as a person with whom to do business. Unfortunately, he is not competent to run the businesses operated by SHI and Club Corp."
–Affidavit of David Mirvish

David Mirvish is calling on his cell. The reception isn't great, but then, Mirvish would prefer to say little at this juncture.

At the end of last week, just as the city was downing tools for a summer's long weekend, Mirvish filed a notice of motion in Superior Court seeking to have Harry Stinson removed from the operations at 1 King West.

Seeking to have a receiver step in and supplant Stinson Hospitality Inc., which manages the hotel component at 1 King.

Seeking to have certain properties within the development, including the club facilities, turned over to K One Holding Inc., a.k.a. David Mirvish.

Seeking, not to put too fine a point on it, to see the end of Harry Stinson.

"I've been forced to ask for this motion not of my actions, but because of Harry's actions," Mirvish says.

"Harry has not lived up to his agreement."

At his office at 1 King, Stinson answers the phone with a deadening "Hullo."
How is he feeling? "Well," he says, "nightmare would be an appropriate word."

The agreement to which Mirvish refers, little of which has been on public view, was meant, in part, to steer the long overdue resolution of an $11.8 million debt owed by Stinson to Mirvish.

Stinson had purchased from Mirvish certain commercial spaces at 1 King, including the private club facilities and the subground parking spaces.

Stinson first defaulted on that debt in June 2006. Extensions were granted. Last March, Stinson filed for bankruptcy protection. In April, a confidential settlement was reached between the parties. As part of that agreement, an undisclosed sum was due to be paid by Stinson to Mirvish on July 31. That didn't happen.

That's the dry version.

The fuller tale recalls the long-ago loan of $125,000 made by David Mirvish to Harry Stinson, which seeded an unlikely alliance between the theatre impresario and the condominium developer, which grew into loans totalling hundreds of thousands and then millions of dollars, including the Mirvish-backed acquisition of the old Dominion Bank building at King and Yonge, the historic, and somewhat cursed, component of the condo hotel.

Through it all, David Mirvish has repeatedly said that he only ever wanted to see Harry Stinson succeed. Harry Stinson has repeatedly acknowledged David Mirvish's patience in awaiting his payback.

Up until mid-July, Harry Stinson thought he could call on David Mirvish's patience yet again. He says he was "knocking on every bloody door we could think of" in an attempt to tee up financing to buy Mirvish out. When that failed, he hoped to appease Mirvish by sending over three cheques, each for $70,000, dated the first of August, September and October.

The cheques were returned.

There are, as there always are in corporate divorces, stories behind the numbers. In an affidavit filed in late March, Mirvish refers to "a number of events" that caused him to lose confidence in Stinson's ability to continue as chief executive officer of SHI and Club Corp. He cites the sale of a 1 King condo for the sum of $2.4 million. The bulk of those funds, however, were not delivered to 1 King West Inc., but rather to Stinson Properties.

According to the affidavit, at a meeting in March 2005, "Mr. Stinson admitted culpability and assured us that this was the only instance of his misappropriation of funds due and owing to 1KWI."

Mirvish Enterprises ended up covering the purchase price, in exchange for a promissory note from Stinson personally for $2.2 million. As of March 12, no monies had been repaid on the note despite demands made.

In an interview yesterday Stinson would not discuss this matter, nor the affidavit's further assertion of the unauthorized use of residential units as hotel rooms, generating rental income for Stinson Hospitality. "I'd rather not," Stinson said when asked to comment. "They're really complicated."

Bob Verdun, president of the condominium corporation, says Stinson "used the money (from the condo sale) to complete the hotel. ... Mirvish wasn't paying for the infrastructure for the hotel. That's what Stinson used the money for."

Verdun is standing fast in his support of Stinson who, he says, "has been a magician." He's busily trying to rally condo owners to protest Mirvish's attempts to take control of the hotel rental management program. The authority for that, he insists, rests with the board. "It's absolutely devastating to suggest a receiver will do anybody any good," he says.

Mark Russo is one condo owner who sheds no tears for Harry Stinson. But he doesn't shed any tears for David Mirvish either. Together with family members, Russo owns five units at 1 King. He has lived through the broken promises of guaranteed investment returns, and the ongoing battle over the taxation of units used as hotel suites. "We love this building, we want it to succeed," Russo says. "But we've been thrown like pawns onto the battlefield."

Russo would like to see a forensic audit of the whole operation.

In the meantime, Stinson supporters and Stinson detractors will undoubtedly gather to hear David Mirvish's court motion, scheduled for Friday. Harry Stinson himself will be there for what could be his last stand.

The Real Estate Mom’s Back to School Guide

2007-08-03T14:18:00.000-04:00

The Real Estate Mom’s Back to School Guide by: Cheri Alguire

As a long summer of lazy unstructured afternoons comes to an end, Real Estate Moms all across this nation celebrate the return of routine in their families. In order to prepare for that event, you have inventoried the kids’ closets, had them try on their shoes, collected the supplies needed by the new teacher and received the school calendars. How can you as a real estate agent and as a mom get off on the right foot this school year?

There is no doubt that you need to make a little extra time during those first few weeks to get everything heading in the right direction with the kids. Here is a quick back to school guide that will help you to keep the necessary focus on your business while helping your children have a successful start to the school year.

Schedule for Peace of Mind

One of the most important aspects of getting all of your goals accomplished as a real estate agent is planning and scheduling. This folds into the “mom” part of your life as well. It is important to know how to blend both the business and personal parts of your life. For example, your calendar, such as Top Producer or some other contact database software, is a key instrument for you to use in organizing your business. Not only should you use it to plan your client meetings, but you must also use it to schedule those important events for your child such as parent/teacher meetings, recitals and pick-ups from school. When you keep your family and work calendars separate, you will inadvertently schedule a meeting with a client, over a child’s school activity and vise versa. By color coordinating all of your Realtor appointments and mother appointments on the same calendar you can easily see where your focus is on a daily basis. By syncing your Top Producer with your Treo, you will have all of your appointments, work and personal, with you wherever you go.

Organizing For At Home Success

Next, use your Top Producer system to keep you organized. Take a few minutes to record the teacher’s contact information. Most real estate agents would not leave home or the office without having all of their client’s information in hand and it’s vital that all necessary information for your child’s school be in your electronic calendar as well. Include the school’s phone number and any direct teachers’ numbers, email addresses and details that you need.

Establishing Routine as A Real Estate Mom

One of the most crucial times for you to establish family routines is during those first weeks of school. Set up such things as the after school routine with homework, snacks, and chores. My daughter has her “daily five” that she needs to do everyday after school that includes homework, cleaning her room, cleaning her bathroom, unloading the dishwasher and feeding the dog. Once the foundation of this time of the day is set and becomes a habit for your child, you are more able to focus on your job as a real estate agent with minimal time following up on the “daily five.” Getting them into a routine will also create lasting habits in your children Your job and your clients can be demanding. That doesn’t need to stop you from being a good parent and getting your home life in order. Take the time necessary to organize each of these aspects of your life, by being a real estate agent and being a mom. Spend some time planning, organizing and scheduling by doing the things listed here. A little extra effort now will help in creating a great school year for your child, yourself and your business.

About The Author

Real Estate and Life Coach Cheri Alguire has partnered with hundreds of Real Estate Professionals to help them become more successful in business and in life. Coach Cheri offers Group Coaching for Moms, Working Mothers and Pregnant Women in Real Estate, on how to balance careers with family responsibility. Learn more at http://www.realestatemoms.com, and visit Coach Cheri's Real Estate Moms blog at http://www.realestatemoms.com/blog.

Bob Aaron - Guest Columns (TWO!)

2007-08-01T12:30:00.000-04:00

Warranty plan could be election issue

In April I wrote about Joe and Joanne West, who bought a new home built in Hamilton without a building permit.

As a result of numerous defects in the house and their discontent with the resolution attempts of the Tarion warranty program, the Wests decided to bypass the Licence Appeal Tribunal. They are suing the City of Hamilton and the builder for $1.5 million.

In that column, I asked for reader opinions on whether unhappy new homeowners should have to resort to the courts to get the house they expected.

I received almost 70 emails, letters and faxes – more than I've ever received from any column in the past seven years. With the exception of one letter supporting Tarion, the responses were all negative and many were angry or hostile or both.

Of course, the responses I received would not count as a scientific sampling. The majority of new home buyers never register a claim with Tarion and some of the emails I received are from homeowners who are on the mailing list of Canadians For Properly Built Homes, a vocal lobby group based in Ottawa.

But the number of emails and the intensity of the feelings expressed indicate that there are a great many unhappy buyers of new homes out there. This reflects poorly on the industry and the government that sets the warranty rules.
Typical of the responses I received was one from Brigette Mark, who emailed, "I have learned my lesson the very hard way and I would never recommend anyone buy a new home unless they are into having long battles and unanswered and outstanding repairs."

Ottawa lawyer Heather Austin-Skaret noted, "A revised Tarion program would be better for consumers rather than having to launch a court action."
From Nepean, Ann LeBlanc wrote, "Tarion must be made accountable for ensuring that all homeowners do not have to endure `patch-and-run' quick fixes that builders so often use. We need better management of Tarion."
Dave Wark of Guelph emailed, "After battling with them for two years, we think they stink and the whole rotten organization needs a complete overhaul. Like mortgage fraud, the government is way behind the reality curve."

"Consumer protection in Ontario is a joke!" exclaimed Shahed Nasrullah. "The McGuinty government has made it worse! Why should new homebuyers, who are expected to be protected under the Ontario New Home Warranty Plan Act, have to turn to the courts for remedy? The purpose of the Act should be to mitigate, in a timely manner, the inconveniences and risks a homeowner faces due to the negligent act of a new home builder. The manner in which Tarion operates suggests that it is the homeowner who is guilty and hence they have to prove themselves innocent before the various levels of the judicial system. Is this what we call a society based on rule of law?"

"The worst part about all of this," wrote Walter Pick, from Dundas, "is that I had to pay for this absolutely useless warranty program. I didn't have a choice. If I had a choice I wouldn't have paid a nickel into this program."

Mary McAllister-Diks emailed to say that, "The reality of the situation is, it would be better to know you have no support and are standing alone from Day 1, than to put your faith in a system that has no interest in getting to the root of the problems, or at the very least, fixing the problems."

Based on my flood of emails, public discontent with Tarion is palpable. It could well become an issue in the fall election campaign.

Bob Aaron is a Toronto real estate lawyer.

He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818.

Visit the column archives at www.aaron.ca/columns/toronto-star-index.htm.

Ruling may have major impact on TARION

An appeal decision by the Ontario Divisional Court released in April could result in a significant change in the way homeowner claims are treated under the Ontario New Home Warranties Plan Act (ONHWPA).

Joao Luis DaSilva Cecilio purchased a new home from a builder back in June 2000. After closing, he was unhappy with the quality of the house and made numerous deficiency claims to the Tarion warranty program.

Tarion responded to the complaints in July and October 2005. Cecilio was dissatisfied with their position and appealed to the Licence Appeal Tribunal (LAT) in November that year.

One main complaint was that he heard too much noise from his neighbour's house through the shared wall between their homes. The Tribunal had to decide whether the wall complied with the Ontario Building Code requirements for limiting sound transference.

In January 2006, the Tribunal ordered Tarion to conduct testing to check for any Code infractions and to repair the party wall, if necessary.

Tarion's position was that it had no obligation or authority to do testing after the house was completed and it appealed the LAT decision to a three-judge panel of the Ontario Divisional Court.

At the appeal hearing, Cecilio's lawyer, David J. McGhee, argued that Tarion's position was contrary to the underlying purpose of the legislation, which is intended to protect the homeowner against breaches of the warranty.

Tarion's interpretation, he told the court, "gutted" the protections meant to be in the Act and freed Tarion from its duties under the Act to inspect and test and, if necessary, do work to mitigate the breaches of warranty.

The three-judge panel, in a decision written by Justice Dennis Lane, ruled Cecilio's "submissions make sense out of the Act, whereas the Tarion interpretation does not."

Justice Lane wrote, "(Tarion's) warranties only begin when the construction has been completed. It makes no sense that the power of inspection would exist only during construction ... I conclude that (the legislation) authorizes inspections and tests for all purposes of the Act and is not confined to the construction period."

The purpose of the Tarion legislation, the court wrote, "is clearly remedial consumer protection legislation and should be liberally construed ... Tarion has taken the side of the builder in opposing the homeowner."

The court ordered the case to be sent back to the Tribunal to consider whether the builder or the homeowner ought to have the test performed by an independent tester and the report distributed to the parties.

Janice Mandel, Tarion's vice-president of corporate affairs, says Tarion won't appeal the Divisional Court decision.

As I see it, the Cecilio case is a watershed decision, which should affect the way many Tarion claims are dealt with in the future. It could also open the floodgates of claims for similar noise complaints.

The decision clearly implies that future Tarion decisions, which do not "make sense" in light of the consumer protection mandate of the program, will be reversed by the courts.

The case also establishes that Tarion's inspection obligations extend beyond the completion of the house, and that post-completion inspection and testing could result in a finding of responsibility by the program. I also read the Cecilio decision as a criticism by the appeal court of Tarion's interpretation of the legislation.

The case could well point the way to a sea change in the way consumers are treated under the ONHWPA legislation – if not by Tarion, then definitely by the courts.

Bob Aaron is a Toronto real estate lawyer.

He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818.

Visit the column archives at www.aaron.ca/columns/toronto-star-index.htm.

Stan Albert - Guest Column

2007-08-01T12:26:00.000-04:00

How do we measure ourselves in life?

I have just finished reading Sidney Poitier’s autobiography, The Measure of a Man: A Spiritual Autobiography (HarperCollins).

I read a lot of books. From trade books and historical novels to mysteries, the knowledge that I gain from the reading of books allows me to learn more about life and living.

In Poitier’s autobiography, he writes about being reared on Cat Island, one of the tiny island communities surrounding the Bahamas Islands. His struggles as an aspiring actor were encumbered by his lack of finances, and by the colour issues of the time he arrived on the stage and in front of the cameras.

Over his many successful years, he encountered many issues like many of us do here in Canada. Those issues may be focused on colour, race or religion. And Poitier, like others of colour, managed to overcome them. But the strong character he developed while growing up on Cat Island stood him in good stead for the coming years. He overcame prejudice and other travails. And throughout his storied career, his respect for others in his craft was never measured by race or colour.

His role in To Sir With Love cements what I’m driving at with this article. In one scene with the rebellious class he’s given, he says: “How and what you learn here in class will serve you well in the outside world. If you cannot treat your classmates with respect that you would like yourself, then how can you expect to survive in the outside world?”

As often as not, I am confronted by registrants who manage to paint certain ethnic groups as being of bad character, or being “sneaky.” My response to them is always: “Do you feel that your (our) own race/colour is not guilty of being impure or imprudent in their dealings?”

I personally don’t feel that anyone coming into our industry deserves to be measured on their ability and their integrity. If, for some reason(s) they go “off base,” it is not their upbringing that may be at fault, but how their manager oversees their conduct. How the registrant is made aware of the guidelines that govern us is obviously paramount as to how he will act in their professional careers.

How one behaves ethically, is usually how most of us gauge a person in our business. For example, here’s how I would examine “the measure of the man.”
How he treats his fellow colleague. Is he courteous? Does he treat him with the respect that he would like himself at all times?

How does he treat the support team, the accounting team at his brokerage? Does he treat them with respect and revere all that they perform for him 24/7?
How does he treat his brokerage? With respect and loyalty?

How does he treat the ancillary services that assist us in our dealings with the public – lawyers, bankers, home inspectors?

Does he conduct his business in accordance with the rules and regulations laid down for all of us in our individual provinces or territories?

Does he “fudge” his attendance at the required credit courses by having someone take the course online for him?

“What dreams can be fashioned into reality, what values can send us to bed comfortably and make us courageous enough to face our end with character…that’s what we’re all seeking. That’s what it’s about, you know?” concludes Poitier in his biography.

Being realistic about how you practice this profession leads to how you measure the man.

Quote for the Month: “Personality can open doors, but only character can keep them open.” – Elmer G. Letterman 1859-1907

Stan Albert is celebrating his 36th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.

A Plethora (nice word, eh?) of Real Estate Articles!

2007-07-31T10:46:00.000-04:00

Real Estate Board changes its name to...

A freind of many, Kenneth Robert McClenaghan, passed away in his sleep after complications relating to lung surgery. May his soul rest ineternal peace. Our condolences go out to his family and freinds.

Toronto and Mumbai - A Tale of TWO cities.

AT HOME WITH . . . SINGER/MUSICIAN CARL BERGER

Realtors in Toronto line-up. For a concert? No, for condos that will be ready in 2010...at the earliest! You're kidding me!?!?

An EXCELLENT article on the line-ups mentioned above!

Many of you have already heard about the MONROE HOUSE selling for $600K over asking price but I thought if you haven't its good to know. (Phew! Thank God I passed English in high school!) You mean that ugly house below? Geez!

I read the following article a couple weeks back and am excited to share it with you. It's an interesting tale of the current bidding wars in Toronto. After reading this article I thought to myself, "Thank God!" Wanna see the house they eventually purchased? Look below and shake your head.

Trump gets trumped! The Trump Tower not all it's cut out to be!

July 23, 2007 - View from the Second Floor

2007-07-23T14:51:00.000-04:00

The view from the Second Floor of our palatial executive offices looks like this:

Canadian Cottage prices are going through the roof.

Remember Sam the Record Man in Toronto? Well, it's closed, but here is the real estate story...

$15.78 million Toronto estate! MLS Details HERE!!!

Light-Hearted read with a nice "real estate" story at the beginning.

Looking to invest in real estate in Toronto? I hear there will be a big play on the Honest Ed's real estate holdings.

Saskatchewanmania!! No we didn't find a big hairy beast. Just a booming western real estate market.

Yeah!!! Miller lost...for now... More HERE.

Scotiabank says housing market in CANADA is cooling!

Debate on the proposed new Land Transfer Tax in Toronto rages on....

2007-07-16T11:23:00.000-04:00

Enough with my ranting.

Here are some interesting articles....

After-Tax Exodus to 905-Area predicted.

Toronto Star backs Miller and Tax. (you gotta be kidding me!)

More proof Toronto Star loves Mayor Miller.

Toronto Sun reports on Tax Attack!

Peterborough weighs in on Tax debate.

Service Cuts vs. New Taxes.

Interesting analysis from a fellow blogger....

...more blogger analysis.

Demystifying the proposed Land Transfer Tax.

Globe and Mail calls Tax a recipe for slowing economy.

Open Letter to Mayor Miller.

Real Estate Stuff and More....

2007-07-12T11:30:00.000-04:00

So, Mayor David Miller is saying that Toronto must pay. For what?!?!?! This guy drives me nuts!

Royal LePage is stating that Canada's housing market will continue to be strong. I wonder if this was before Mayor Miller imposed new real estate taxes. did I tell you that this guy drives me nuts!

Canadian's appetite for real estate confounds experts. Do you wanna know why? Because who would want to buy real estate when your Mayor willtax the crap out of you?!?!?!?

Anyways, here's a nice little piece about how to invest in real estate profitably.
(I hope that Mayor Miller doesn't read this!)

Ever heard of Riverdale? It's a nice little part of Toronto. Too bad I may not be moving there. Wanna know why? Read the article!

Hear about Martha Stewart selling her house? She sold it...for 26% BELOW asking price! Man, I missed out on that deal!

Many of you have been asking me about my thoughts on the Calgary Real Estate Market. HERE is an excellent PODCAST on Truths and Myths!

BANG! No, that wasn't the sound of the car smacking into my house yesterday morning. That was the sound of the Summer Market beginning with a BANG!

Golf courses do take a lot of space, ie Real Estate. That's why I decided to include the follwing article about Clublink.

Richmond Hill is driving real estate. So says York Region. And HERE's the article to prove it. Brampton is also doing pretty good.

The Day after the Loooooooong Weekend!

2007-07-03T12:01:00.000-04:00

Happy Canada Day Everyone! Hope that you had a great long weekend!

The blasts are starting to come from inside city hall as well. Many of you know that Mayor Miller of Toronto is instituting drastic changes to the tax code in Toronto that will hit everyone who drives a car and owns a home. For what purpose? We really don't know other than he is appealing to no one with a brain. Read Case Ootes' reaction HERE.

Can you believe there is STILL debate about the investing in real estate versus stock market? Can't we all just get along? Geez! Well, HERE is an article from Sympatico/MSN.

Did you ever like David Letterman? Well, I sure did! And I really enjoyed his Top Ten List! On most nights they were a good source of ab workouts, if you know what I mean. Well, in this spirit, I would like to present to you the Top Ten Reasons to invest in Kitchener/Waterloo Real Estate.......

Top 10 List.

That's all for now folks!

Karim Kanji

As I See It From The Second Floor

2007-06-27T11:36:00.000-04:00

Yes. I am sitting on the Second Floor of our palatial offices here in midtown Toronto. The sun is baking, the sky is threatening and the real estate market is showing no signs of slowing down!

So, here is the news as i see it from here!

When the U.S. sneezes, does Canada catch a cold? Apparently, we have been taking our echinecea. Read an elightening article HERE.

Despite the public outcry from the public and groups such as TREB, it looks like David Miller has gained the necessary approvals for his controversial new land transfer tax.

What does this mean to prospective home buyers?

Well, on a home purchase in Toronto of $400,000, the land transfer tax portion of your closing costs just jumped from $4500 to $9000. This doubling of the effective tax rate will raise the city an extra $300 million per year.

This is a cash grab in the worst possible way. Taxes will be doubled but home buyers will have nothing to show for it. Mayor Miller says that raising these taxes are the only way to pay for the City's massive budget shortfall. Apparently he sees no other solution than to force the entire financial burden of the city upon those willing to invest in purchasing their own home! Go figure!!!

Toronto will soon have the highest land transfer tax rate in all of Canada! Home buyers contribute approximately $2 billion to Toronto's economy. Make no mistake, the city will feel the impact of this new tax.

HERE is a CBC article about the opposition to the City of Tax, opps, I mean, Toronto's proposed taxes.

A nice article about CONDO MANIA in Canada.

This piece of news isn't making much noise. Even on the interenet. Nevertheless, I thought I'd report it HERE for you folks to pick up on and debate. The government of Canada is selling off alot of taxpayer owned buildings. No big deal but at what cost? Guess what? Apparently, nobody knows 'cause PM Harper ain't telling. Interesting....

Little Timmins at the head of the LIST. Serious. Stop laughing!

Funniest Agent's Listings! Will put a smile on your face!

That's all folks! Have a great day!

We have a fight on our hands!

2007-06-26T15:36:00.000-04:00

As many of you read here, or in the Toronto Star, soneone complained that they recently "lost" $60,000 because they were too stupid to do real estate themselves...or something to this effect. Anyways, here's a very well thought out rebuttle!

THE BOTTOM LINE

TheStar.com - Business - Being a realtor isn't easy, or easy money

Being a realtor isn't easy, or easy money

Jun 25, 2007 04:30 AM
Kristan Erner
Special to the Star

Your reader (The Bottom Line, June 11, "$60,000 in real estate commissions gone done the drain") contends that licensing is simply a 90-hour course, and poof, we are super income earning realtors.

Not even close.

First comes Phase 1, 2 and 3, which amounts to about 160 hours (in most cases balancing a full-time job) of classroom time, followed by three separate three-hour exams, in which you must score a grade higher than 75%. Then, within two years three articling courses are required, two of the courses are mandatory, one 60 hours and the other 80 hours.

Plus, a 60-hour elective. All followed by a three-hour exam, again with a 75% minimum grade. Also, all realtors are required to fulfill 24 credits (24 hours of course load) of update credits every two years in order to stay licensed.

So let's forget all of that for a while. Let us talk about the day-to-day activities of a realtor. The advertising, the constant marketing, the 16-hour days, the late-night calls, and most importantly, the missed bedtime stories and vacations with our children.

We are dedicated to our craft and our clients. We never shut down and it never ends at 5 o'clock. We provide for our families with great sacrifice. Why? Passion.

We dedicate ourselves to you, out of passion and a love of what we do. There is no pixie dust here, just dreams that we are trying to help complete.

It is certainly not only about the money. There is very little left after paying our expenses. We pay brokerage fees, franchise fees, advertising costs, on-going marketing fees, costs of signage, not to mention the replacement costs of vehicles and gas prices. What about all the hours spent with clients who do not buy, or the listings that do not sell. Sometimes there is a lot of money spent without ever earning a dime. The list goes on and on. What we go through on a day-to-day basis to make a decent living – it is absolutely insane!

If we make good money, it is because we sacrifice. Your reader must understand all this to appreciate what goes on behind the scenes. He may see 30 hours of work, but in fact it is with many long and sometimes arduous hours spent getting to the point of the sale. We are on your side. We are professionals.
Not every realtor's story will be the same. But I assure you, for the 10% of us who can actually make a living doing this, it is a similar plight. We are realtors and we care.

Kristan Erner is a realtor with Coldwell Banker Case Realty. The Bottom Line is a weekly guest column. Please send your submissions to thebottomline@thestar.ca

Cornucopia of Real Estate.....Stuff!

2007-06-20T15:11:00.000-04:00

A clash of styles. I'm talking about Toronto and Vancouver and the look of their condo projects. In Toronto the look is conservative. In Vancouver, the condos match the style and majesty of the Canadian Rockies. Until now! Vancouver is coming to Toronto! Read all about it HERE.

So...are you excited that the real estate market in Canada is booming? I'm sure that many of you have heard the "horror" eminating from the States. HERE is a very interesting one that has Super Bowl champion Tony Dungy's name on it. I wonder if John Ferguson Jr reads this blog? Maybe he can learn something and trade some Maple Leaf condos for a Stanley Cup.....

Hey East Coasters! Still wanna move to the wild, wild west? Be prepared to spend 70% of your pre-tax income on a 2-storey home in Greater Vancouver. Read about this HERE.

I have already reported on this blog why the Canadian market continues to grow. Some other folks are just reporting on it. Guess they don't read this blog. Well, they should! The public demands it! Ok. My rant is over....

And that's all for now!

Karim Kanji

Warranty plan could be election issue

2007-06-20T10:50:00.000-04:00

In April I wrote about Joe and Joanne West, who bought a new home built in Hamilton without a building permit.

As a result of numerous defects in the house and their discontent with the resolution attempts of the Tarion warranty program, the Wests decided to bypass the Licence Appeal Tribunal. They are suing the City of Hamilton and the builder for $1.5 million.

In that column, I asked for reader opinions on whether unhappy new homeowners should have to resort to the courts to get the house they expected. I received almost 70 emails, letters and faxes – more than I've ever received from any column in the past seven years. With the exception of one letter supporting Tarion, the responses were all negative and many were angry or hostile or both.

Of course, the responses I received would not count as a scientific sampling. The majority of new home buyers never register a claim with Tarion and some of the emails I received are from homeowners who are on the mailing list of Canadians For Properly Built Homes, a vocal lobby group based in Ottawa.
But the number of emails and the intensity of the feelings expressed indicate that there are a great many unhappy buyers of new homes out there. This reflects poorly on the industry and the government that sets the warranty rules.
Typical of the responses I received was one from Brigette Mark, who emailed, "I have learned my lesson the very hard way and I would never recommend anyone buy a new home unless they are into having long battles and unanswered and outstanding repairs."

Ottawa lawyer Heather Austin-Skaret noted, "A revised Tarion program would be better for consumers rather than having to launch a court action."
From Nepean, Ann LeBlanc wrote, "Tarion must be made accountable for ensuring that all homeowners do not have to endure `patch-and-run' quick fixes that builders so often use. We need better management of Tarion."
Dave Wark of Guelph emailed, "After battling with them for two years, we think they stink and the whole rotten organization needs a complete overhaul. Like mortgage fraud, the government is way behind the reality curve."

"Consumer protection in Ontario is a joke!" exclaimed Shahed Nasrullah. "The McGuinty government has made it worse! Why should new homebuyers, who are expected to be protected under the Ontario New Home Warranty Plan Act, have to turn to the courts for remedy? The purpose of the Act should be to mitigate, in a timely manner, the inconveniences and risks a homeowner faces due to the negligent act of a new home builder. The manner in which Tarion operates suggests that it is the homeowner who is guilty and hence they have to prove themselves innocent before the various levels of the judicial system. Is this what we call a society based on rule of law?"

"The worst part about all of this," wrote Walter Pick, from Dundas, "is that I had to pay for this absolutely useless warranty program. I didn't have a choice. If I had a choice I wouldn't have paid a nickel into this program."

Mary McAllister-Diks emailed to say that, "The reality of the situation is, it would be better to know you have no support and are standing alone from Day 1, than to put your faith in a system that has no interest in getting to the root of the problems, or at the very least, fixing the problems."

Based on my flood of emails, public discontent with Tarion is palpable. It could well become an issue in the fall election campaign.

Bob Aaron is a Toronto real estate lawyer whose column appears Saturdays. He can be reached at bob@aaron.ca. Visit aaron.ca.

Check, check, check, check it out!

2007-06-19T11:34:00.000-04:00

So, lots of STUFF has happened in the weird and wacky world of weal, I mean Real Estate over the past couple of weeks.

Now, instead of all the boring stuff like how r.e. is the preferred investment choice of investors or that the market will/won't crash, I bring to you the wacky stuff.

And beleive you me. It's all WACKY!

Now this is interesting. Anthony Dorsett, son of Hall of Fame RB Tony Doresett was recently cut at training camp by my beloved Argooooooooooooooooooos! Did you know that he left football and started a successful real estate business? I would not call this a cut. Rather a promotion! Man, with real estate commissions who would wanna play for a mid-level CFL salary? (I hear they DO pay more than Toronto FC!)

Is the Canadian resale industry good for the economy? What about home affordability? Check out some of these interesting facts HERE. You can also look HERE.

READER ALERT! The following is a wonderful little story about a former Montreal area Realtor. Read theis heartfelt story HERE.

This just in....

2007-06-12T15:50:00.000-04:00

Well, not exactly, but it's a very interesting read. Personally, I thought that the title was more interesting than the article.

Ice Shortage in Alberta, Oil Boom bring Soaring Rents.

Realtor's a $60,000 waste of money!

2007-06-11T16:21:00.000-04:00

WOW WOW WOW WOW WOW!!!!!!!

What an article. What's even more amazing is that the Toronto Star has printed such an article. $20 says that there will be a plethora of responses to this one! I am hoping some of those responses will be posted here! (hint, hint!)

THE BOTTOM LINE

TheStar.com - Business - $60,000 in real estate commissions down drain

Jun 11, 2007 04:30 AM

Paul Finlayson

special to the star

After buying and selling four homes in the last 10 years, I seem to have somehow missed the much ballyhooed real estate bonanza. Perhaps this is simple evidence of my idiocy, or maybe there's some "no money down real estate" infomercial that might have done me some good. Furthermore, after clearly having fallen short of real estate riches, a look through my filing cabinet now makes it painfully clear that somebody hasn't – my realtors.

Even with some generosity, it seems that their $60,000 worth of commissions represented no more than 30 hours of work. My slumping head is evidence enough to me of excessive fees, but perhaps a more reasoned examination is required. As free market consumers of services or products, we hope to see pricing naturally evolve to provide value.

Thus, if a company is charging too much, competition will drive the price down and, conversely, if a company is undercharging, the price will be raised or the company will go belly up. We don't have to go far to see an example of competition and technological efficiencies pushing a price down – it has happened in many mature service industries, notably the telephone long distance market.

But why in real estate – with such a large market, with so much competition and with the MLS up on the Internet – have the many attempts at discounting failed to dent the dominance of the full MLS commission? Why do customers pay such a frightening price for such limited service? What do realtors offer? Limited training (usually about 90 hours of classroom training – that's a little more than two weeks education), some pricing counsel, some tour guide service, a little research and a willingness to shepherd the buyer through the requisite paperwork.

How does somehow who might not even have a university degree and who has simply passed a licensing exam earn thousands of dollars for potentially a few hours work? And, finally, with the Internet, eBay and the entrepreneurial savvy of thousands of businesspeople, how has the full-bore real estate commission remained dominant? Why have discounters failed to get significant traction? Can anyone think of another industry where remuneration has increased at a rate equivalent to soaring housing prices? Doesn't competition drive costs down?

Real estate legal fees have declined in real terms in the last 10 years; competition seems to have worked there.One doesn't have to go far to hear the story of the realtor who, after slapping the listing up on MLS and waiting a few days, shows up for a two-hour closing sale meeting to collect his $30,000 paycheck. Common sense dictates something is wrong.

But now the realtors are attempting to persuade us of their value by showing commercials where the nutty mother-in-law wants her childless and looking-to-stay-that-way daughter and son-in-law buy a four-bedroom house and is confronted and defeated by the Yoda-like wisdom of the realtor (she steers them to a condo).

In reality, consumers don't need much handholding – making the largest purchase of your life tends to naturally encourage a buyer to look before they leap. Indeed, consumers are getting more informed, not less, the MLS is no longer a telephone-book-sized paper weight, it's on the Internet and the software revolution has provided for the intelligent mining of real estate data so the consumer could be even more informed and the "full service" realtor even more irrelevant.

But again, the logic of the markets has been defeated – we're still seeing a huge chunk of dough going to the realtors when we sell our homes.

So if the vast majority of the populace believes that realtor commissions are miles away from good value, why have we in this country, with all our entrepreneurial talent, not seen a dip in the price? Solutions?

The services that the realtor provides could be readily separated and provided a la carte. Intelligent online research tools that make use of the data collected by the realtor community could provide appropriate advice on pricing strategy, future market growth, compare area against area, etc.

But the biggest change is to get the ball rolling, and that would have to be enforced by the government.

----------------------------------------------------------------------
Paul Finlayson is a software account manager. The Bottom Line is a weekly guest column. Please send your submissions to thebottomline@thestar.ca

Are you ready for the weekend?

2007-06-08T13:05:00.003-04:00

So? Are you ready? I am! I am going to barbeque at least twice this weekend! I'm going to enjoy the amazing weather and even spend time with my 14 month old!

What are you going to do? I know many real estate agents take this time to meet with potential clients and do open houses. Many others take the weekend off to spend quality time doing recreational stuff and spend time with family. Whatever you choose to do, ENJOY LIFE!

And with that I bring to you some real estate news and views from my second floor palatial office.....

Ever wonder what the Toronto Sun has to offer in terms of real estate insight. Doubtful? Me too. Until I received a note from my service that originated from the Toronto Sun! Go figure! So, get this - with real estate booming and financing deals even more affordable then ever, why would anybody choose to rent (based on affordability) ? Well, lots of people! But the problem is that with vacancy rates at all time highs, rental housing units are still very expensive! My thoughts is that greed has taken over. Why rent a place that you;ve purchased with your blood, sweat and financial tears if you can't make any money? Anyways, HERE'S their report.

I know this has nothing to do with real estate but I did find it on a real estate blog. From North Carolina. What's wrong with people?!?!?

Well, that's all for now!

Have a great weekend everybody!

Karim Kanji

Real Estate Stuff...Things You Knew and Maybe Some Stuff You Didn't

2007-06-06T11:30:00.000-04:00

Interesting title, isn't it? I thought so!

Well, well, well! The real estate market seems to be chugging along quite nicely these days! All over Canada in fact. Makes you wish you invested? You already did? Good! Cause I didn't. Yeah, I'm kicking myself over that one too! Ever heard of Google? Nevermind.....

For you reading pleasure I present to you.....

The Toronto market is booming, booming, booming! Tony Wong, from the Toronto Star (you like the new little size?) has the numbers and analysis. Did someone say cooldown?!?! May 2007 was the biggest month since sliced bread was invented!

But did you know which Canadian City has the strongest resale market? Calgary? Cow's gone home there! Edmonton? Are they still the City of Champions? Vancouver or Victoria? Left Coast has been left out! Toronto? The Big Smoke ain't smoking much! If you guess Saskatoon, you're on drugs. But you are correct! Saskatoon! Amazing! Don't believe me? Take a READ HERE.

Mike Smith has an interesting blog titled http://sellnovascotia.blogspot.com. He has an interesting link and discussion entitled, "Where is the aging population going to live?" If you just purchased a new home, maybe my folks can stay at your place? LOL!

I'm telling you, you real estate folks are confused! The Ottawa Citizen (yeah, I know no one actually lives in Ottawa) is reporting that the Aging Society is Cooling the Housing Market! Well, not in Canada! At least not now! Want to stop being confused? Stop reading the newspaper and start reading and promoting this BLOG!!!! Okay, now on with the news....

Have you noticed something? Real Estate comapnies are saying that the housing market has never been hotter! However, banks are saying there is a cooling off effect happening! Whose zooming who? Here is a report on Royal LePage's latest 2007 survey.

Now, I'm going to go get a coffee!

Karim Kanji

A Cornucopia of Real Estate News!

2007-06-04T16:31:00.000-04:00

Ex-Pats in Calgary and Edmonton may be heading home soon...if they are benefactors of the recent oil and real estate boom. Read HERE for this story.

And you thought Tonawanda was only good for fires, eh? Well, now they may become famous for 'Virgins'. Property Virgins! Get your mind outta the gutter and take a look HERE for more on this...

Now this is a story that should be getting more press. More traditional and even more non-traditional press. It seems that many people have been taking advantage of the real estate boom out west. Edmontan and Calgary have seen record house prices and things don't seem to be slowing down. Now, for me, I'm all for free enterprise and all that good stuff. But the following story sickens me. In Alberta, there are hundreds, if not thousands, of our military servicemen and women living there. For many of these people affordable housing is a major, major issue. Kudos to Andrew Hanon of the Edmonton Sun for his thought provoking article. Please READ HERE and pass it around to everyone you know. Our Provincial and Federal Governments MUST do something about this! NOW!

Okay, I'm better.....

Hey Scotiabank! You're late! This is not a fashion show where it is fashionable to be late! Banjamin Tal already told us the housing market will not crash but will probably slow down. In any case, here's your B(N)S report.

It seems that Toronto is still the center of the universe...at least when it comes to real estate investing. Hey! It's not my words! READ HERE.

And finally....an interesting piece by Ken from Re/Max Hallmark. Interesting artcile from a thought provoking blog.

The Secret

2007-05-31T16:47:00.001-04:00

The Secret.

It's a blockbuster literary runaway success! Why? Because everyone wants to know the secret to success. How can I become more financially successful? How can I have a more successful family life? These are questions that everyone, since the beginning of time, has sought answers to. The Secret is not the first time "the secret" has been written about. In fact, thousands of books have been written and many more speeches have been given explaining 'the secret'.

So, the question is why are we still looking?

I think it's because we all need to be reminded of the steps we need to take to become successful. We know what it takes. We have been taught 'the secret' since we were in Little League and ballet class.

At RealCash, our goal is to help you become successful. To give you the tools you need to create the kind of life you want and deserve! Visit www.RealCashCanada.com and see how you can benefit from a business relationship with RealCash.

To show our committement to your success we would like to send you a FREE COPY of the EBook version of the classic, Think and Grow Rich by Napolean Hill. To receive your copy, please send an email to MoneyNow@RealCashCanada.com and enter: "I Want My Copy of Think And Grow Rich" in the subject line.

That's all for now!

Have a great day!

Regards,
Karim Kanji
Manager - Client Services
RealCash
1.800.265.2694

Another sampling of wacky real estate news!

2007-05-30T12:11:00.000-04:00

Buffalo. The city of could have beens. Now, I'm not slamming the city that made buffalo wings and weekend shopping trips popular. Buffalo could have been Toronto. And in more ways than won. Or should I say one.

So, here's the deal. Buffalo has an NFL team. Toronto doesn't. Buffalo has a talented hockey team that bounced back from bankruptcy. Toronto has a crappy hockey team that just raised it's ticket prices AGAIN after another season without post-season play. Buffalo has a town called Tonawanda. Toronto has Scarborough. You get the picture?

What about the real estate side of this story you may ask. Toronto has a booming, and I mean booming, real estate market. Buffalo has...well, read THIS ARTICLE to finish the sentence.

OK, OK, OK!!! Keep this on in your diary! Has anyone ever seen, in the past 5 years, articles on the real estate BUST? I have. And I'm sure, you have too. So, here's the latest out of Vancouver. Let's see if it's true or not after a few months, or years....

I think the people in the States are getting jealous! Here's a reply I just saw: (original article to follow):

5/29/07
renter guy said:
Keep in mind that the $700 a day increase is in Canadian paper money, which converts to exactly 0 actual US Dollars until the place sells. Good luck Mr. Edmonton condo owner…

And what was "renter guy" referring to? READ HERE.

And finally, some sad news from the reality bites section: Sam the Record Man is closing. Just 'google' this to read the news. The real estate story behind this? I'm not too sure. Will the spinning records above Yonge and Dundas still hypnotize passers-by? Or will some big-box foreign company take over and lead us into Hades? In any case, if you need some downtown real estate, I just might know of a place........

Well, that's all for now! Until next time....

Stop the Presses!!!!

2007-05-28T16:50:00.000-04:00

I know, I know!

The real estate market ain't crashing anytime soon in Canada. But, what would you do if it did? Are you prepared to handle the downswings? Would you tough it out, or just quit?

Well, there is an option. Life insurance!

Read the following thought provoking article HERE.

Karim Kanji

Some interesting Tidbits....

2007-05-28T16:08:00.000-04:00

See, I knew it! Real estate is not a boring industry! Check out some of these latest news pieces and articles:

Here is an article from the Toronto Sun (yeah, the trashy little papaer that could!). As a man, it caught my attention! READ HERE to find out why!

St. Joseph will help you do more real estate business! Is there room for 'religion' in real estate? I know some of you need divine intervention! READ HERE.

Some interesting Real Estate News from around....

2007-05-25T12:55:00.000-04:00

Sometime I wonder why Real Estate Agents are some of the most distrusted professionals in the world? I know some decent people who make a living buying and selling their clients homes. Well, read THIS to find out one of the reasons why...

What does the Stanley Cup and the Ottawa Senators have to do with the real estate market? Well, lots according to Fred Glick! Read HERE for a great article!

Ever wonder if you'll be able to cash out from the CPP? Years ago it was a pipe-dream. Today, who knows. however, what if CPP was into real estate? 2 years ago CPP had less than $1 billion in real estate. Today? Over $5 billion! Who knows.....

Another Hockey Team for Canada.

2007-05-25T12:31:00.000-04:00

Yes! I may finally get an NHL team worth cheering for. Because I live in Toronto, my natural team is the Leafs. However, I am too young to remember the last time they were in contention for the Cup and too old to ever beleive they will ever get the chance. I can't cheer for Ottawa because....well, I just can't.

But, Tuesday's news that Jim Balsille - of RIM fame - had basically purchased the Nashville Predators franchise has put a smile on my face. And I'm sure millions of Canadians fans faces as well. I know the deal is not a slam dunk but in my books it's money in the bank. The team will move to the Waterloo area and will be re-named the Berlin Blackberries!

And so, I can now have my own team to cheer for...Waterloo is only a couple hours drive west of my home!

Now, where is the real estate story in all this? Well, apparantly it is being reported that a holding company related to RIM has purchased a big parcel of land! To read up on this click HERE.

What are your thoughts?

Karim Kanji

When selling home, truth is the best policy - Bob Aaron

2007-05-23T10:35:00.000-04:00

When selling home, truth is the best policy

I'm not sure why it happens, but when ordinary, honest citizens are selling their homes and large amounts of money are involved, they sometimes succumb to an overwhelming temptation to become less than candid in signing the paperwork for the transactions.

Two recently released court cases are prime examples of this phenomenon.

Scott and Sharon Gardiner were buying a property on Church St. in Harrow, a small community not far from Lake Erie in southwestern Ontario.

Future Homes and Real Estate Inc. acted as dual agents for the Gardiners, and for Nathan Mulder, the seller.

For the buyers, one of the most important features of the house was the hot tub, and they made it known that they would not submit an offer for the full asking price unless the hot tub was working. At the purchasers' insistence, the agent inserted into the offer a clause which reads, "The seller declares the hot tub is in good mechanical working order."

At the time the agreement was signed, the seller confirmed to the real estate agent that the hot tub was working, although he later admitted that it had not been operated for several years.
Predictably, after closing, the hot tub was filled with water and found to be inoperative.

Normally, when a real estate transaction closes, the buyers accept the house in full satisfaction of the obligations in the purchase agreement, unless the contract expressly states that those obligations – often called representations or warranties – will survive after the closing.

In this case, the buyers sued the seller because of the defective hot tub. They lost at trial in the Small Claims Court.

The Gardiners then appealed to Divisional Court in February, and Justice Anthony Cusinato later ruled that the representation or warranty about the hot tub in the agreement did not die on closing, but survived. The seller clearly understood, said the court, that the buyers wanted the tub to be in good mechanical order both before and after closing.

The court's decision was based on the fact that all parties knew that the buyers' intention was that the hot tub clause would survive after closing as a "collateral condition" of the agreement.
Damages were assessed at $4,500 plus costs, with the seller and the real estate agent responsible for 50 per cent each. It appears that the agent was found jointly liable for his role in negotiating and drafting the offer.

The second case took place in Fall River, Halifax County, N.S., where Christopher Lang purchased a large six-bedroom house with an outdoor swimming pool for $327,500.

A clause in the agreement of purchase and sale contained a warranty that the seller never had any problems with the drilled well on the property and that the water supply was sufficient for the normal household needs of a family of four. The agreement also contained a warranty that the accompanying property condition disclosure statement (PCDS) was "complete and current."
A question in the PCDS asked whether the seller was aware of any problems with water quality, quantity, taste or water pressure. The sellers, Gary and Lauren Knickle, answered "no" to that question.

As is typical in property information statements, both in Ontario and Nova Scotia, the form cautions buyers that the information is believed to be accurate but may be incorrect. There is also a disclaimer stating that the real estate agents involved assume no liability or responsibility for the accuracy of the disclosure.

The day after the purchasers and their children moved into the house, the well went dry and there was no water supply. A new well had to be drilled at considerable expense.
Last year, Lang sued the Knickles for breach of contract. Following a seven-day trial, Justice Gordon Tidman ruled in favour of the buyer and awarded damages of $26,393 for Lang's actual expenses in drilling a new well, plus an additional $20,000 for loss of enjoyment of the house and reduction in its property value.

The court ruled that the representations made by the sellers as to the water quantity from the well were "untrue, inaccurate and misleading," and that they were negligent in representing that there were no water quantity problems.

Justice Tidman provided an interesting comment on the disclaimer in the disclosure form. "The Court is satisfied," he wrote, "that this disclaimer is for the benefit of the realtor only and not for the vendor. If that were not clear by and in itself, the (preceding) paragraph ...makes it clear that the vendors are responsible for the truth of their statements..."

For buyers and sellers of resale homes, the lessons from the cases of Gardiner v. Mulder and Lang v. Knickle are these:

Sellers should never sign what is called a Sellers Property Information Statement (SPIS) in Ontario. The forms are complicated and call for legal conclusions, which are risky for non-lawyers to complete. I've heard from many real estate agents and their local boards who disagree with me, but I'm convinced that following my advice is, by far, the safer route.
Sellers signing SPIS forms should keep the name of a good litigation lawyer handy. They may well need it.

Buyers should always make their own investigations. These include a home inspection and where there is no municipal water service, a well driller's certificate and a potability test.
Both buyers and sellers should bear in mind Justice Tidman's comments that the disclaimer on the disclosure form "is for the benefit of the realtor only."

It's always a good idea to have an agreement of purchase and sale reviewed by a real estate lawyer before it is signed. There's no such thing as a "simple real estate deal."

Failing to be completely truthful when signing a property disclosure statement or a warranty in a sale agreement can be very risky, and very expensive.

Just ask Nathan Mulder or Gary and Lauren Knickle.

Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818.Visit the column archives at www.aaron.ca/columns/toronto-star-index.htm.

Celebrity Digs: Suzie McNeil

2007-05-23T10:30:00.000-04:00

Don't know who Suzie McNeil is? Well, then you're in the minority.

Suzie has been a musician for many years but earned semi-pop icon status last year when she appeared as a finalist in ROckStar: INXS. She can now be seen as Oz in Queen's We Will Rock You which is playing in Toronto.

Here is an interesting glimpse into the real estate life of a rockstar......Enjoy!

http://www.thestar.com/Athome/article/214774

Karim

Affordable Housing?

2007-05-23T09:19:00.000-04:00

Affordable Housing. Is this an idea whose time has come and gone? Or is it a "concept" that needs our attention more than ever?

My father (a business owner for most of my life) beleives that home ownership is one of the key factors in developing a healthy and strong self image for people. I subscribe to the thought that everybody should have the ability to come "home" after a hard days work and hang their hat and spend time with family and freinds. Whether through renting or ownership this should be available to everyone.

The question then is, should affordable housing be a combination of affordable rental units and affordable ownership units?

I am a believer in the "free" market. Capitalism. However, I like the term Rich DeVos coined called Compassionate Capitalism. No, I don't want to see people living on the streets. But I also don't want to see people have a house "given" to them by the government. This job belongs to charities like Raising the Roof. Why? Maybe it's because I've had to fight to enter into the housing market...and it's a fight I continue to endure because I want to do it on my terms.

However, today's market begs us to look at this problem again. Why? Take a look around you. The Canadian housing market is white hot! Prices for new homes and re-sales continue to climb to record levels. Mortgage rates are still low. And now we have 50 year ammortizations, interest only loans, and God-knows-what-other-bells-and-whistles.

The point is this: to buy a house is more expensive than it's ever been regardless of interest rates. Second, rental prices are skyrocketing as well! Third, I really don't have a clue what the solution is.

But maybe you have some thoughts that you'd care to share? We would really like to hear from YOU.......

Housing Market Outlook - 2007 Second Quarter

2007-05-16T12:07:00.000-04:00

CMHC has just released its 2007 Second Quarter Housing Market Outlook. Some of the things they are forecasting is a market correction in the housing market in 2007/8. But don't call it a crash please. They like to call it a soft landing. Maybe they read my notes from Benjamin Tal's talk? Maybe. The following are factors that they/me/Benjamin predict will impact the housing market which will result in a 'soft landing':

Strong Canadian economic growth
Strong Immigration
Strong Canadian dollar and modest GDP growth
Job growth
Consumer confidence

So there you have it. Everything seems nice! To read the report for yourslef please click on the following link:

http://www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2007_Q02.pdf

That's all for now!

Karim Kanji

Sustainable Condo

2007-05-16T11:47:00.000-04:00

On April 24th-25th, the Toronto Real Estate Board held their annual Realtor Quest at the Toronto Congress Centre. Realtor Quest offers Realtors an opportunity to earn valuable CE credits, networking opportunities with fellow Realtors and a wide range of vendors and associated services.

This year there was an amazing display called The Sustainable Condo. According to their website, "The Sustainable Condo, a full size display suite, demonstrates how human comfort and environmental responsibility can be acheived by combining smart, innovative design with state-of-the-art green building technologies, materials and products that are available and affordable now, from local suppliers and manufacturers."

I highly encourage everyone to visit www.SustainableCondo.com and see for yourself what this amazing project is all about!

If you are a Realtor, I think this is something your present and future clients may be demanding and or looking for. If you are an avid environmentalist, then this is something you'll love! Or if you're just like me, someone who is interested in how a "sustainable" living environment can actually work, then this project will captivate your imagination.

I thank you for reading.

Karim Kanji

Media Release:

2007-05-15T10:18:00.000-04:00

Media Release:

May 15, 2007:

Karim Kanji of RealCash Bancorp Inc. (www.RealCashCanada.com) will be participating in the Annual Easter Seals Drop Zone SuperHero Event on Monday September 17th 2007.

Karim will be experiencing the adrenaline rush rappelling down 16 stories from the rooftop of 175 Bloor Street East!

Easter Seals is a charity which helps Kids with disabilities be Kids! As many of you know, many Realtors proudly support Easter Seals. In fact, Century 21 Real Estate Canada is a proud supporter of Easter Seals and their Drop Zone Event.

Please visit the following secure website to donate:

https://secure.e2rm.com/registrant/personalPage.aspx?EventID=7832&LangPref=en-CA&RegistrationID=303167

Thank you!

Karim Kanji
RealCash Bancorp Inc.
1.800.265.2694