Sounds simple right? You just... start looking. Right? Pick up a newspaper, start calling everyone in it. Or check out Realtor.ca, all the listings are on there, why bother with a realtor?
Well sure that is one way to do it, but since my high school teacher introduced me to the concept of "work smart, not hard" I can't get it out of my head! I will give you an example: I received a call last week from a young man asking about one of my listings, he had seen it on MLS and wanted to know more. I had to tell him that unfortunately it was sold. Then two days later they called me again, wanting to know more about the same house. I had to tell them again that it was still unfortunately sold. They wanted to know why it was showing as active on MLS then. Well, I find sometimes MLS is behind a little bit, whereas our system is in real time. I also did inquire both times to them that if they would like I could set them up on a home search for their area of choice, thus eliminating the work they are putting into all the calling and waiting. They declined stating that they could not afford a Realtor. When I tried to tell them that as a buyer they did not pay for an agent they said that they preferred calling around until they found a house that was still available that they liked.
While that is fine, and certainly an option... it baffles me why a serious buyer would not want to hire an agent that works just for them? We have access to real time listings, and all they have to do is sit back and let the homes come to them. Certainly shop around until you find an agent you are comfortable with and knows the area you want to live in. Also, since it is really free for you as a buyer, why wouldn't you want all that knowlege and experience for free? Believe me, you are missing out on a lot of places by thinking that they are all in the newspaper, online or having open houses. I understand that some people are "go getters" and love to be involved in the hunt:) however, why not have the best of both worlds? Often I recieve daily emails from clients with a list of addresses or MLS numbers they want me to check out... so a few clicks later and all the info they need is in their inbox to peruse at their convenience. No making 20 phone calls and recieving the call back when it is not convenient for you... no waiting to hear back from someone who may not have time to call you back at all. We make it about convenience for YOU.
Some objections that I have gotten to people who say they don't want a realtor are as follows:
- They can't afford it, and I have already mentioned that this is free for buyers
- They are not really serious about looking right now.. they just want to be casual and don't want any pressure. Hey, I can understand that! I have lots of people on my mailing list that are casual, I just email them homes, check in every few months. Then when they are ready to buy, they can call. I too hate pushy salespeople too.
- They are afraid of getting a 'bad' realtor. Well, I say get a referral from a friend, or during your own hunt feel out different agents to see if you can find one that you connect with and knows her stuff. Then when you feel ready to buy, you feel more confident and excited. Buying is stressful enough... why make it harder?
So the easiest way? Trust me, just hire a realtor.
Wednesday, April 1, 2009
Monday, March 23, 2009
a '79 Kind of Flood
And we await. As Alf Warkentin says: "The moment of truth is upon us". It sounds very doomsday doesn't it?
The general worry and fear that flood is upon us can be unavoidable. For those living south of the perimeter close to the United States we are sure your worry is greater than ours up here in Winnipeg's windy corridors. General concerns in the city here have centered around ice covered manholes and sewers that are not draining and therefore create large lakes of water in the city. As well, accumulation of water from rain, melting snow and ice means our backyards and streets are a slushy yucky mess. I don't know about the rest of you but I have a sincere appreciation for my sump pump right now!
Thankfully I even have a sump pump to be appreciative of! What if I didn't? What if I didn't have one and it resulted in basement flooding?
Hmmm... a double pain I would say. For one, flooding creates a mess, things have to replaced, torn down, rebuilt...etc. Number two is once you have water issues in your basement, this is something you will always have to disclose if you intend to sell your home.
Disclosure has always been a hot topic in real estate. The term "Caveat Emptor" or, 'Let the Buyer Beware' is a common term (or should be!) for sellers and buyers alike because it holds a lot of truth. There are simply some things about a property that the seller may not know or have any control over. So how can that be disclosed? Of course it can't, but things that the seller is aware of can and must be disclosed, things like water in the basement, leaky roofs, permits not taken out on work completed. It is a bit involved but the basic rule is that if there is a defect in your home that you are aware of... just disclose it! You cannot cover up defects and hide them if you know about them. If there is a defect in your home that you are aware of and you cover it up and not disclose it, then the buyer discovers it... you might be in some trouble with that one...! Also, if it is something that a buyer could see readily with their naked eye, like a broken window, then that doesn't necessarily need to be pointed out. However, since flooding is a huge thing... even if you had water stains halfway up your basement wall I would make a point of telling your Realtor about it, why not be safe? It is kind of like sandbagging yourself and liability against further issues.
So as spring decends almost too rapidly for us here in the Prairies we Realtors can only ask that you keep yourselves high and dry, and help out the neighbours and those to the south who need it. If your basement floods, make note of it and prepare to disclose that fact in an eventual sale.
The general worry and fear that flood is upon us can be unavoidable. For those living south of the perimeter close to the United States we are sure your worry is greater than ours up here in Winnipeg's windy corridors. General concerns in the city here have centered around ice covered manholes and sewers that are not draining and therefore create large lakes of water in the city. As well, accumulation of water from rain, melting snow and ice means our backyards and streets are a slushy yucky mess. I don't know about the rest of you but I have a sincere appreciation for my sump pump right now!
Thankfully I even have a sump pump to be appreciative of! What if I didn't? What if I didn't have one and it resulted in basement flooding?
Hmmm... a double pain I would say. For one, flooding creates a mess, things have to replaced, torn down, rebuilt...etc. Number two is once you have water issues in your basement, this is something you will always have to disclose if you intend to sell your home.
Disclosure has always been a hot topic in real estate. The term "Caveat Emptor" or, 'Let the Buyer Beware' is a common term (or should be!) for sellers and buyers alike because it holds a lot of truth. There are simply some things about a property that the seller may not know or have any control over. So how can that be disclosed? Of course it can't, but things that the seller is aware of can and must be disclosed, things like water in the basement, leaky roofs, permits not taken out on work completed. It is a bit involved but the basic rule is that if there is a defect in your home that you are aware of... just disclose it! You cannot cover up defects and hide them if you know about them. If there is a defect in your home that you are aware of and you cover it up and not disclose it, then the buyer discovers it... you might be in some trouble with that one...! Also, if it is something that a buyer could see readily with their naked eye, like a broken window, then that doesn't necessarily need to be pointed out. However, since flooding is a huge thing... even if you had water stains halfway up your basement wall I would make a point of telling your Realtor about it, why not be safe? It is kind of like sandbagging yourself and liability against further issues.
So as spring decends almost too rapidly for us here in the Prairies we Realtors can only ask that you keep yourselves high and dry, and help out the neighbours and those to the south who need it. If your basement floods, make note of it and prepare to disclose that fact in an eventual sale.
Sunday, January 25, 2009
In which I share my organizing skills with you...
Its true.
I really am one of the most organized people you will ever run across. I actually like organizing, colour coding things and streamlining systems. Its not even a control thing, I swear! Its a convenience thing. The time I see people waste looking for things... my goodness, create a spot for it, put it in that spot... simple right?
Apparently not as I have observed.
Its not that people are lazy, un-intelligent or simply don't care about organizing their homes. I really think that it is that they don't know where to start. I am going to share with you some simple things that you can do to get started. This will cost little to no money. This is about keeping your life streamlined, clutter free and focused on making YOU more productive. It doesn't have to be pretty, although that is an option if you are so inclined, it just has to WORK.
Ever heard this?: A place for everything and everything in its place. Sigh... genius words!! But if you don't know where to put things... then they pile up. Stuff needs a HOME. If you have a complete lack of a filing system, its not wonder papers pile up! So this is what you need to do. Pick a "problem area" that you want to focus on. Lets say the computer area or home office. This might be a big project to start but don't fret!
Look at the piles of stuff laying around.
What comprises these piles?
Lets say its: bills, bank statements, receipts, greeting cards, paper clips, pens, photos, craft supplies... etc.
Remember that the reason you have a random pile of things is that they don't have a home, not that you are messy. So categorize the items in the piles. Paper is one pile, office supplies (pens, clips, printer ink, usb cords, etc) is another, craft supplies would be one, and there may even be misc things that don't go in a home office (laundry, shoes, toys). So do you see what I mean? It depends on the stuff you have so create your own categories if you don't like these.
We deal with "Paper" first.
F.A.T
F = File it
A = Act on it
T = toss it
Each piece of paper MUST fit into F, A, or T. Be ruthless!!
Buy a filing cabinet or small filing system, label each folder according to what you need to put in it. For example I have one for bank statements and credit card statements. One is for Insurance (any and all kinds), one for Warranties, etc. Once you have done this file all the paper in the "F" category into its proper category. Now put this away, either in the filing cabinet or on shelves designated for this use. If you are using shelves try to use ones close to the main desk so you will actually USE the filing system you created.
The "A" category requires that you keep this "in sight, in mind". Its where currently due bills would go, or other time sensitive items, papers, etc. Those handy mini stacking shelves made of metal or plastic do the trick!! Keep them on top of the desk for easy access. Then once a bill is paid, FILE IT away.
Toss it is easy, recycle away!!
Now the office supplies.
If you use it often, keep it near you, if you use it seldom, keep it away yet accessible, if you never use it, WHY do you keep it?
My system is good so I will share what I do: I have one large yet somewhat shallow desk drawer. I pile everyday things according to type: notebooks with notebooks, clips with clips, pens with pens, etc. You can use drawer dividers to help keep things separate. If you want you can use a basket, old coffee mug or plant holder for holding pens on top of the desk if you like too.
My seldom used items are things like markers, extra printer ink, extra usb cords. I have a box for each of these things, they stack neatly together in my office cupboard. A great tip is using old shoe boxes or go to the dollar store, they have great stuff there! Always remember to keep things together though, like me and my cords, my usb cords, camera cord and charger, I Pod cord... all those go together so I know if I am looking for a cord of any kind, it is most likely there.
And Crafts? Scrapbooking supplies?
Easy. Again, buy a shoebox, photo box, whatever. Label what is in there and place neatly on a shelf. You will be extra motivated to work on these projects because the items are sorted and right there! How you choose to sort your art supplies is your choice of course, I would settle for you just keeping art supplies with all other art supplies in one place.
But if you want to get creative, use see through plastic containers for small items (ribbons, stamps, stickers). You can place these smaller containers within a larger box if you like or just on the shelf. If you decide to place on a shelf, label the shelf "Scrapbooking Supplies" in red ink, then label each small container or box in red ink. Then you know in a pinch where stuff goes, as does the rest of the family. Do gift wrapping supplies in blue ink, kids art stuff in green... etc.
Rogue Items!!
Now that all the important stuff is filed away, colour coded and boxed appropriately we have random items that don't go in the office.
Get an empty laundry basket and fill it up with the stuff. Now visit each room of your home and take out everything from the basket that belongs in that room and put it away. Do not simply place it in the room, put it away. Do this until the basket is empty. Done!
Actually the laundry basket things works for all rooms, I do this on a regular basis. It allows me to carry lots of things at once. As I visit each room and put away items that belong there, I can pick up things that don't and bring them to their rightful spot. The first time you do this it may be time intensive, but that is usually the hardest time.
These tips apply to all areas of the home: If the garage tool area is messy, the kitchen cupboards have no system or the kids play area is a disaster zone... apply my tried and true techniques and let me know how it goes!
I really am one of the most organized people you will ever run across. I actually like organizing, colour coding things and streamlining systems. Its not even a control thing, I swear! Its a convenience thing. The time I see people waste looking for things... my goodness, create a spot for it, put it in that spot... simple right?
Apparently not as I have observed.
Its not that people are lazy, un-intelligent or simply don't care about organizing their homes. I really think that it is that they don't know where to start. I am going to share with you some simple things that you can do to get started. This will cost little to no money. This is about keeping your life streamlined, clutter free and focused on making YOU more productive. It doesn't have to be pretty, although that is an option if you are so inclined, it just has to WORK.
Ever heard this?: A place for everything and everything in its place. Sigh... genius words!! But if you don't know where to put things... then they pile up. Stuff needs a HOME. If you have a complete lack of a filing system, its not wonder papers pile up! So this is what you need to do. Pick a "problem area" that you want to focus on. Lets say the computer area or home office. This might be a big project to start but don't fret!
Look at the piles of stuff laying around.
What comprises these piles?
Lets say its: bills, bank statements, receipts, greeting cards, paper clips, pens, photos, craft supplies... etc.
Remember that the reason you have a random pile of things is that they don't have a home, not that you are messy. So categorize the items in the piles. Paper is one pile, office supplies (pens, clips, printer ink, usb cords, etc) is another, craft supplies would be one, and there may even be misc things that don't go in a home office (laundry, shoes, toys). So do you see what I mean? It depends on the stuff you have so create your own categories if you don't like these.
We deal with "Paper" first.
F.A.T
F = File it
A = Act on it
T = toss it
Each piece of paper MUST fit into F, A, or T. Be ruthless!!
Buy a filing cabinet or small filing system, label each folder according to what you need to put in it. For example I have one for bank statements and credit card statements. One is for Insurance (any and all kinds), one for Warranties, etc. Once you have done this file all the paper in the "F" category into its proper category. Now put this away, either in the filing cabinet or on shelves designated for this use. If you are using shelves try to use ones close to the main desk so you will actually USE the filing system you created.
The "A" category requires that you keep this "in sight, in mind". Its where currently due bills would go, or other time sensitive items, papers, etc. Those handy mini stacking shelves made of metal or plastic do the trick!! Keep them on top of the desk for easy access. Then once a bill is paid, FILE IT away.
Toss it is easy, recycle away!!
Now the office supplies.
If you use it often, keep it near you, if you use it seldom, keep it away yet accessible, if you never use it, WHY do you keep it?
My system is good so I will share what I do: I have one large yet somewhat shallow desk drawer. I pile everyday things according to type: notebooks with notebooks, clips with clips, pens with pens, etc. You can use drawer dividers to help keep things separate. If you want you can use a basket, old coffee mug or plant holder for holding pens on top of the desk if you like too.
My seldom used items are things like markers, extra printer ink, extra usb cords. I have a box for each of these things, they stack neatly together in my office cupboard. A great tip is using old shoe boxes or go to the dollar store, they have great stuff there! Always remember to keep things together though, like me and my cords, my usb cords, camera cord and charger, I Pod cord... all those go together so I know if I am looking for a cord of any kind, it is most likely there.
And Crafts? Scrapbooking supplies?
Easy. Again, buy a shoebox, photo box, whatever. Label what is in there and place neatly on a shelf. You will be extra motivated to work on these projects because the items are sorted and right there! How you choose to sort your art supplies is your choice of course, I would settle for you just keeping art supplies with all other art supplies in one place.
But if you want to get creative, use see through plastic containers for small items (ribbons, stamps, stickers). You can place these smaller containers within a larger box if you like or just on the shelf. If you decide to place on a shelf, label the shelf "Scrapbooking Supplies" in red ink, then label each small container or box in red ink. Then you know in a pinch where stuff goes, as does the rest of the family. Do gift wrapping supplies in blue ink, kids art stuff in green... etc.
Rogue Items!!
Now that all the important stuff is filed away, colour coded and boxed appropriately we have random items that don't go in the office.
Get an empty laundry basket and fill it up with the stuff. Now visit each room of your home and take out everything from the basket that belongs in that room and put it away. Do not simply place it in the room, put it away. Do this until the basket is empty. Done!
Actually the laundry basket things works for all rooms, I do this on a regular basis. It allows me to carry lots of things at once. As I visit each room and put away items that belong there, I can pick up things that don't and bring them to their rightful spot. The first time you do this it may be time intensive, but that is usually the hardest time.
These tips apply to all areas of the home: If the garage tool area is messy, the kitchen cupboards have no system or the kids play area is a disaster zone... apply my tried and true techniques and let me know how it goes!
Friday, January 9, 2009
So... is the sky falling?
For those of you unfamiliar with the fable of "Chicken Little" I will give you a brief re-cap: an old fable about a Chicken (or a Hare in early versions) who believes the sky is falling. The phrase, "The sky is falling" has passed into the English language as a common idiom indicating a hysterical or mistaken belief that disaster is imminent.
So, I ask, is the sky falling in Canada? Will we have a repeat of the 80's when mortgage rates rose so swiftly seemingly overnight that people were losing their homes in the blink of an eye? Will home values crash?
One of the more common themes in the media over the last few months is the progression of the mortgage meltdown debacle in the United States, the "economic crisis" and how that has parlayed into a Canadian recession that we have yet to feel the real brunt of here. Its a disconcerting thing to read all those reports isn't it? Yet for every doomsday report on a National level, there is one detailing how Winnipeg's housing market is still holding strong. I do not discount we are heading into financially trying times, however I think we are living in a unique city in that we seem to be "bucking the national trend" as media outlets have put it.
The most recent report released by Royal LePage echoes the one released by RE/MAX. The report suggests that Winnipeg is holding strong entering 2009. How is this possible some people ask? Well, Winnipeg's home prices have risen dramatically over the last half decade or so, however comparing our statistics to those of other major city centres such as Vancouver, Calgary and Toronto we are still way below the national trend. This fact is helping us avoid a major crash in our market. What you can buy for $200k here, will most likely cost two to four times that in other major cities. So, what you can buy here in Winnipeg, with all the comforts, services and benefits of a major city, we are not doing too badly!
So this is my challenge to you home buyers and sellers on the Manitoba home front. Try to think critically about what facts the media is presenting to the public as a whole. Remember that a lot of those articles are spin offs from the associated press in other provinces, and are also often national reports that don't focus on our unique situation here at home. Read the local reports, talk to local agents and brokers to see their thoughts on the market. Make up your own mind as to what is going to happen. We do not deny that we are facing economically trying times, that we will feel the squeeze eventually is inevitable.
Lastly, don't put off buying a home if you can afford it. If you want or need to move, there is no sense letting anxiety take over; fearing that we will all be thrown out into the streets because of an impending recession will do nothing for your current quality of life and sanity. Are bidding wars over? Most likely. Is the market headed for a balance? I think so.
Here is to happy house hunting and selling for everyone! Cheers!
So, I ask, is the sky falling in Canada? Will we have a repeat of the 80's when mortgage rates rose so swiftly seemingly overnight that people were losing their homes in the blink of an eye? Will home values crash?
One of the more common themes in the media over the last few months is the progression of the mortgage meltdown debacle in the United States, the "economic crisis" and how that has parlayed into a Canadian recession that we have yet to feel the real brunt of here. Its a disconcerting thing to read all those reports isn't it? Yet for every doomsday report on a National level, there is one detailing how Winnipeg's housing market is still holding strong. I do not discount we are heading into financially trying times, however I think we are living in a unique city in that we seem to be "bucking the national trend" as media outlets have put it.
The most recent report released by Royal LePage echoes the one released by RE/MAX. The report suggests that Winnipeg is holding strong entering 2009. How is this possible some people ask? Well, Winnipeg's home prices have risen dramatically over the last half decade or so, however comparing our statistics to those of other major city centres such as Vancouver, Calgary and Toronto we are still way below the national trend. This fact is helping us avoid a major crash in our market. What you can buy for $200k here, will most likely cost two to four times that in other major cities. So, what you can buy here in Winnipeg, with all the comforts, services and benefits of a major city, we are not doing too badly!
So this is my challenge to you home buyers and sellers on the Manitoba home front. Try to think critically about what facts the media is presenting to the public as a whole. Remember that a lot of those articles are spin offs from the associated press in other provinces, and are also often national reports that don't focus on our unique situation here at home. Read the local reports, talk to local agents and brokers to see their thoughts on the market. Make up your own mind as to what is going to happen. We do not deny that we are facing economically trying times, that we will feel the squeeze eventually is inevitable.
Lastly, don't put off buying a home if you can afford it. If you want or need to move, there is no sense letting anxiety take over; fearing that we will all be thrown out into the streets because of an impending recession will do nothing for your current quality of life and sanity. Are bidding wars over? Most likely. Is the market headed for a balance? I think so.
Here is to happy house hunting and selling for everyone! Cheers!
Tuesday, December 30, 2008
To Have and Have Not
Perusing book store shelves recently had me coming across the section on Ernest Hemingway. I stopped short at one book entitled: "To Have and Have Not". While this book doesn't focus on real estate, it does bring to mind some sound advice I wanted to pass along to all my favorite buyers out there.
Let me pre-face by saying that I do not begrudge you your dreams, I want the amazing restored character home on the river with the re-done hardwoods and brand new kitchen too! While most savvy home-buyers make a wish list and stick to a budget, some buyers have a dangerous tendency to lean towards that mindset of having it all, whether they can afford it or not.
Often I find myself in the situation with a buyer who has fallen in love with a type of home or home "ideal" that they simply cannot afford. It happens! They are out for a Sunday stroll to the cafe and happen upon an open house featuring a restored brick beauty from 1920, or maybe they visit a friend who just built a brand new home full of light and space, or the chic warehouse condos on the waterfront. Some buyers can view these places as homes they will have one day, or simply wonderful pieces of art, architecture, and dreams. Then they can continue on with life and regular home hunting with positive gusto, never once comparing the home they can afford to the one they could not.
That is group one.
Now group two. Another story... Not that I don't love the zest for life, and the visceral appreciation for amazingly beautiful homes that I get from this camp, but often a painful reality check is in the works for these wonderful home buyers. Its not an easy thing to do, convince someone that if their budget is $200 000, homes that would otherwise be worth more are simply not a viable option. Value is value, and while wiggle room can exist, its best not to count on it.
My advice for you: Don't look at what your friends have, or what your parents think you should have, or the pretty house down the street that you really want but won't work in your budget. Its a tempting thing to think you are willing to sacrifice Tim Horton's coffee, football tickets and shopping trips just to have that brand new kitchen you are drooling over. But just stop!
Remembering what is truly important in life should be a daily venture, never living to regret something should be another one. So in this instance, appreciate beauty and dream homes for what they are, put owning one on your to do list for sure, but make sure to remember to live in the here and now. There is nothing wrong with just starting out somewhere, working your way up in the world.
Remember that owning a home that needs some work, or is not "perfect" is one of life's adventures all on its own.
Let me pre-face by saying that I do not begrudge you your dreams, I want the amazing restored character home on the river with the re-done hardwoods and brand new kitchen too! While most savvy home-buyers make a wish list and stick to a budget, some buyers have a dangerous tendency to lean towards that mindset of having it all, whether they can afford it or not.
Often I find myself in the situation with a buyer who has fallen in love with a type of home or home "ideal" that they simply cannot afford. It happens! They are out for a Sunday stroll to the cafe and happen upon an open house featuring a restored brick beauty from 1920, or maybe they visit a friend who just built a brand new home full of light and space, or the chic warehouse condos on the waterfront. Some buyers can view these places as homes they will have one day, or simply wonderful pieces of art, architecture, and dreams. Then they can continue on with life and regular home hunting with positive gusto, never once comparing the home they can afford to the one they could not.
That is group one.
Now group two. Another story... Not that I don't love the zest for life, and the visceral appreciation for amazingly beautiful homes that I get from this camp, but often a painful reality check is in the works for these wonderful home buyers. Its not an easy thing to do, convince someone that if their budget is $200 000, homes that would otherwise be worth more are simply not a viable option. Value is value, and while wiggle room can exist, its best not to count on it.
My advice for you: Don't look at what your friends have, or what your parents think you should have, or the pretty house down the street that you really want but won't work in your budget. Its a tempting thing to think you are willing to sacrifice Tim Horton's coffee, football tickets and shopping trips just to have that brand new kitchen you are drooling over. But just stop!
Remembering what is truly important in life should be a daily venture, never living to regret something should be another one. So in this instance, appreciate beauty and dream homes for what they are, put owning one on your to do list for sure, but make sure to remember to live in the here and now. There is nothing wrong with just starting out somewhere, working your way up in the world.
Remember that owning a home that needs some work, or is not "perfect" is one of life's adventures all on its own.
Monday, July 14, 2008
Showing your ID to your REALTOR
NEW RULES: Ottawa requires property buyer, seller info
By HANK DANISZEWSKI
The London Free Press
Canadian realtors are bracing for a customer backlash starting today, as
they become new foot soldiers in the battle against money-laundering.
Federal regulations that kick in today will force realtors to start asking
property sellers and buyers personal information never before required.
In Ontario alone, 47,000 realtors will be expected to fall in line or face
stiff penalties.
"We know there is going to be consumer rejection on this and we are just
following the law," said Gerry Weir, a London realtor and president of the
Ontario Real Estate Association (OREA).
Realtors will be required to ask for the name, address, date of birth and
occupation of property buyers and sellers, plus ID such as a driver's
licence or passport.
Weir said Ottawa has made little effort to educate people about the changes,
and realtors feel they're being forced into an uncomfortable enforcement
role.
He said realtors will have to keep the information for seven years and
submit it on request to the Financial Transaction and Reports Analysis
Centre of Canada (FINTRAC), a federal agency set up to track suspicious
transactions that could be related to money- laundering or terrorism.
If the buyer is foreign or from another part of Canada, the real estate
broker will be required to hire an agent in the buyer's community who can
confirm the buyer's ID.
If a client refuses to disclose the information, Weir said, a realtor would
have to walk away from the deal or report the person to FINTRAC.
"Even if I have known you for 30 years, I still have to ask for that
information," he said.
Weir said it could get even worse.
He said Ottawa also wanted to require a receipt-of-funds record, with
information on anyone who actually supplied money for sales, including
relatives or friends.
Weir said the government backed down on that, but he expects it will only be
temporary.
"That is the next step; that will happen," he said.
FINTRAC officials appear confused about the new rules.
Spokesperson Peter Lamey at first said one piece of ID was needed from
buyers and sellers, and information such as date of birth and occupation
wouldn't be required.
He later said the information wouldn't only be required from buyers and
sellers, but also from anyone who contributed money to a deal as part of the
receipt of funds record, contradicting Weir's belief that Ottawa had backed
down on that provision.
Negotiations on the rules were handled by the federal Finance Department and
not FINTRAC, Lamey said.
Weir said he understands the need to deal with the problem of money
laundering.
For years, realtors have been required to report any suspicious financial
transactions to FINTRAC, especially those involving cash payments of more
than $10,000.
Weir said he's reported three transactions in recent years, and two involved
someone trying to buying a house to set up a marijuana growing operation.
Still, he said only a very small number of real estate transaction are
suspicious.
Weir said the government will only do spot inspections during the next six
months to ensure realtors and brokers are meeting the requirements.
After that, any realtor or broker who doesn't meet the requirements could
face hefty fines or jail time.
Weir said the OREA wants to educate people about the changes, but there've
been long negotiations with the government and the rules weren't firmed up
until last week.
"We have 47,000 realtors in Ontario that we have to educate by (today)," he
said.
By HANK DANISZEWSKI
The London Free Press
Canadian realtors are bracing for a customer backlash starting today, as
they become new foot soldiers in the battle against money-laundering.
Federal regulations that kick in today will force realtors to start asking
property sellers and buyers personal information never before required.
In Ontario alone, 47,000 realtors will be expected to fall in line or face
stiff penalties.
"We know there is going to be consumer rejection on this and we are just
following the law," said Gerry Weir, a London realtor and president of the
Ontario Real Estate Association (OREA).
Realtors will be required to ask for the name, address, date of birth and
occupation of property buyers and sellers, plus ID such as a driver's
licence or passport.
Weir said Ottawa has made little effort to educate people about the changes,
and realtors feel they're being forced into an uncomfortable enforcement
role.
He said realtors will have to keep the information for seven years and
submit it on request to the Financial Transaction and Reports Analysis
Centre of Canada (FINTRAC), a federal agency set up to track suspicious
transactions that could be related to money- laundering or terrorism.
If the buyer is foreign or from another part of Canada, the real estate
broker will be required to hire an agent in the buyer's community who can
confirm the buyer's ID.
If a client refuses to disclose the information, Weir said, a realtor would
have to walk away from the deal or report the person to FINTRAC.
"Even if I have known you for 30 years, I still have to ask for that
information," he said.
Weir said it could get even worse.
He said Ottawa also wanted to require a receipt-of-funds record, with
information on anyone who actually supplied money for sales, including
relatives or friends.
Weir said the government backed down on that, but he expects it will only be
temporary.
"That is the next step; that will happen," he said.
FINTRAC officials appear confused about the new rules.
Spokesperson Peter Lamey at first said one piece of ID was needed from
buyers and sellers, and information such as date of birth and occupation
wouldn't be required.
He later said the information wouldn't only be required from buyers and
sellers, but also from anyone who contributed money to a deal as part of the
receipt of funds record, contradicting Weir's belief that Ottawa had backed
down on that provision.
Negotiations on the rules were handled by the federal Finance Department and
not FINTRAC, Lamey said.
Weir said he understands the need to deal with the problem of money
laundering.
For years, realtors have been required to report any suspicious financial
transactions to FINTRAC, especially those involving cash payments of more
than $10,000.
Weir said he's reported three transactions in recent years, and two involved
someone trying to buying a house to set up a marijuana growing operation.
Still, he said only a very small number of real estate transaction are
suspicious.
Weir said the government will only do spot inspections during the next six
months to ensure realtors and brokers are meeting the requirements.
After that, any realtor or broker who doesn't meet the requirements could
face hefty fines or jail time.
Weir said the OREA wants to educate people about the changes, but there've
been long negotiations with the government and the rules weren't firmed up
until last week.
"We have 47,000 realtors in Ontario that we have to educate by (today)," he
said.
Sunday, May 4, 2008
FAQ's about Deposits
What is a deposit for?
A deposit is a show of good faith that you intend to purchase the home.
Do I have to give one?
I am to understand that by law you are not legally required to give one, however it is such a common practice in today's market that seller's may not understand why you don't have one.
Where does the money come from?
The money would have to come from you directly.
Is the deposit money on top of the sale price?
I get asked this all the time! The answer is NO way! If you bought a house that was $150 000, your deposit is $5000, the sale goes through and is finalized, you now owe $145 000.
Is the deposit the same as the downpayment?
Sort of... The deposit is PART of the downpayment. Certainly it can be all if you would like, but may not be possible. For example, if your price range is $100 000, and you have your 5% down which equals $5000. You may only want to put $1000 down as a deposit. The main reason for this is deposits are cashed within 24 hours of acceptance of an offer, so if you don't have the entire amount now then you don't have to worry about it right away.
How much should I have for a deposit?
This depends on a few things, how much you have to put down now, and maybe even how much the house is. Some sellers will want as high of a deposit as possible, some are less concerned with such things. The best advice is to ask me what I think is best at the time the offer is written. Normal amounts are between $1000 and $5000.
How do I know my money is protected?
The money is deposited into the listing broker's trust account. The money is safely kept there and is then forwarded to the lawyer upon completion of the sale.
Who is the cheque made out to?
Because it is held in the listing broker's trust account it is made out to the Listing Brokerage.
What happens if I write a cheque and don't get the house?
The cheque is voided, never cashed and mailed back to either the agent that submitted the offer or the client.
What happens if I write an offer, we get it, and my conditions fall through?
If the offer was accepted and the cheque cashed then the agent would send in a form requesting a return of funds based on conditions not satisfied. It can take up to 10-15 business days to have that money returned.
What happens if my cheque bounces?
Oh boy... try not to do that!! Hopefully the brokerage that cashes it is nice enough to call you and give you a chance to make sure that money is there.
Is a money order better?
It depends. It is for sure a way to prove that the cheque wont bounce!! It may not be convenient for you however as we may be meeting to write the offer after banking hours.
A deposit is a show of good faith that you intend to purchase the home.
Do I have to give one?
I am to understand that by law you are not legally required to give one, however it is such a common practice in today's market that seller's may not understand why you don't have one.
Where does the money come from?
The money would have to come from you directly.
Is the deposit money on top of the sale price?
I get asked this all the time! The answer is NO way! If you bought a house that was $150 000, your deposit is $5000, the sale goes through and is finalized, you now owe $145 000.
Is the deposit the same as the downpayment?
Sort of... The deposit is PART of the downpayment. Certainly it can be all if you would like, but may not be possible. For example, if your price range is $100 000, and you have your 5% down which equals $5000. You may only want to put $1000 down as a deposit. The main reason for this is deposits are cashed within 24 hours of acceptance of an offer, so if you don't have the entire amount now then you don't have to worry about it right away.
How much should I have for a deposit?
This depends on a few things, how much you have to put down now, and maybe even how much the house is. Some sellers will want as high of a deposit as possible, some are less concerned with such things. The best advice is to ask me what I think is best at the time the offer is written. Normal amounts are between $1000 and $5000.
How do I know my money is protected?
The money is deposited into the listing broker's trust account. The money is safely kept there and is then forwarded to the lawyer upon completion of the sale.
Who is the cheque made out to?
Because it is held in the listing broker's trust account it is made out to the Listing Brokerage.
What happens if I write a cheque and don't get the house?
The cheque is voided, never cashed and mailed back to either the agent that submitted the offer or the client.
What happens if I write an offer, we get it, and my conditions fall through?
If the offer was accepted and the cheque cashed then the agent would send in a form requesting a return of funds based on conditions not satisfied. It can take up to 10-15 business days to have that money returned.
What happens if my cheque bounces?
Oh boy... try not to do that!! Hopefully the brokerage that cashes it is nice enough to call you and give you a chance to make sure that money is there.
Is a money order better?
It depends. It is for sure a way to prove that the cheque wont bounce!! It may not be convenient for you however as we may be meeting to write the offer after banking hours.
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