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Posts Tagged ‘home’

How Fight Over a 19-foot Bookshelf Ended up in Court

Thursday, October 11th, 2012

If a wall unit is attached by a hook or other device that can be easily removed, then it may not be included with the house

By Mark Weisleder |  Tue Oct 9 2012

When there is confusion about what fixtures are to remain in a home after closing, it often ends up in court. The lesson is to be careful and clear when you write up your contract so you don’t have to sue later.

In 2009, Mark and Denise Holland bought a house on Sherwood Road in Ajax. The listing said a “built-in” bookcase in the recreation room was included. This bookcase was 19 feet long and 7 feet high.

The couple’s offer said that all “built-in cupboards” and permanent fixtures were included in the price, but when they moved in, the bookcase was gone. The sellers said it was a mistake that it had been included in the listing and since the bookcase was not attached to the wall, it was not a fixture.

The agent admitted that the bookcase was mentioned in the listing by mistake. The buyers complained to the Real Estate Council of Ontario. The council ruled that the error was made by the listing agent, and that the sellers were not properly protected and the buyers were misled by the false advertising. However, the council does not award damages, so the buyers had to sue in small claims court for the cost of the bookcase.

In court, the seller’s daughter testified she was present when the buyers toured the property and were told explicitly that the basement bookcase did not go with the house. The buyers admitted they did not closely examine the bookcase to see whether it was attached to the wall. In a decision on September 2, 2011, Justice Albert Cooper accepted the daughter’s evidence and noted that the buyers offered no evidence to contradict her story. He ruled that the buyers were not entitled to the bookcase.

I had a situation where the offer said “built-in microwave.” The microwave was not built-in so the sellers took it with them. The buyer complained after closing. When I asked the sellers whether there was another microwave in the kitchen, they said no. So I asked them, what did you think the words built-in microwave meant? They could not answer and eventually agreed to give back the microwave.

Related: They walked from house deal and were sued

When you are buying any home, you can never get too detailed about what you expect to be included. Ordinarily, the rule is that if it is attached to the house, it is a fixture and it stays with the house. If it is not attached, then it is considered a chattel, and it doesn’t stay with the house unless the buyer includes it in the contract.

Try to avoid general statements such as “built-in.” They may not be built in after all and may only be attached by a hook or other device that can be easily removed. Instead, be careful to list the make and model number of all appliances, and also note the colour and location of any drapes, carpeting, closet organizers, cabinets, bookcases, mirrors, pool equipment, satellite dishes, barbecues, sheds, garage door openers and anything else that you expect to be on the property after you move in.

Take pictures of the items during your home inspection so that you have proof in case the seller tries to replace anything with cheaper items.

By being careful and clear when you write your contract, you can avoid aggravation after closing.

More Mark Weisleder real estate columns

Mark Weisleder is a Toronto real estate lawyer. Contact him at mark@markweisleder.com

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Canadian House Prices Edge Up in Third Quarter While the Number of Home Sales Fall

Wednesday, October 3rd, 2012

First-time buyer activity drops as market adjusts to new mortgage regulations

TORONTO, October 3, 2012 – The Royal LePage House Price Survey released today showed the average price of a home in Canada increased year-over-year between 1.8 and 4.8 per cent in the third quarter of 2012.

Survey findings indicated that the average standard two-storey home in Canada increased 4 per cent year-over-year rising to $403,747, while detached bungalows rose 4.8 per cent to $366,773. Standard condominiums witnessed an increase of 1.8 per cent to $243,607. Most cities in Canada experienced modest price appreciation in the quarter, but fewer homes were sold compared to the same period in 2011.

“A drop in the number of homes trading hands typically precedes a period of softening house prices. Where there is reduced demand, those who want to sell their homes adjust their asking price to stimulate interest. During the third quarter, unit home sales were positive in July, fell 9 per cent year-over-year in August and we are expecting September to show a decline as well,” said Phil Soper, president and chief executive, Royal LePage. “We had predicted this cyclical change early in the year, a natural market reaction after a period of strong expansion. Changes to mortgage regulations, which took effect on July 9th, accelerated the correction.”

In July, the Minister of Finance announced that the maximum amortization period for insured mortgages would be reduced to 25 years from 30 years. This was the fourth intervention in the mortgage market in just four years and the most impactful. Potential first-time buyers, which in a typical market represent one third to one half of all purchase transactions, felt the changes immediately.

“While hard-hit in the short-term, first-time buyers will adjust to tougher mortgage qualifications. The dream of homeownership is very much alive among young Canadians. They may remain renters for sometime as they save; some will opt for less desirable neighbourhoods and some will purchase smaller homes,” added Soper. “In the meanwhile, we will feel their absence in national sales statistics.”

Canadian consumers were bombarded with troublesome economic news from around the globe during the period, particularly in the early weeks of the third quarter. While this has been a drag on the nation’s housing market and contributed to a slowing in home sale transactions, consumer confidence appeared to rebound in September, which should support activity in the important fall market.

“Policy makers in Canada and the United States have confirmed that the current period of very low interest rates will continue, likely through 2013. This is very supportive of housing market activity and any downward pressure on home prices should be minimal,” said Soper. “And for the first time in six years, sustained positive news from the American housing market should leave Canadian’s more confident about our continued economic prosperity.”

National average house price changes do not always reflect the markets of individual cities, which are closely tied to their local economies. Case in point, some $29 billion in energy related investments are now underway in Alberta and Calgary is expected to lead the nation in economic growth through 2013. The city posted healthy price appreciation for both detached bungalows and two-storey homes, as predicted in previous Royal LePage House Price Surveys and Market Survey Forecasts.

“When the underlying economy of a city is sound and growing, house price appreciation is sustained. Calgary has enjoyed solid growth in home values this year. I have also been very pleased with the growth in commercial brokerage transactions seen in our Royal LePage Commercial business in the region,” said Soper.

 

Regional Market Summaries

Halifax’s strong employment levels led to average price increases across all three housing types surveyed. Detached bungalows continued to witness the largest year-over-year gains, increasing 8.9 per cent to $293,000. Detached bungalows in St. John’s witnessed the largest average price gains across Canada, rising 9.9 per cent, as mega-projects continue to boost migration.

Despite a decline in market activity, Montreal’s house prices posted healthy increases in the second quarter of 2012. Standard two-storey homes witnessed the largest average price increase, rising 5.5 per cent to $387,786.

Healthy employment in Ottawa’s technology sector balanced job loss in the government sector as the region posted healthy average price increases across all three housing types surveyed, with house price gains ranging from 4.9 to 6.1 per cent.

Average house price gains in Toronto ranged from 2.7 to 5.9 per cent for housing types surveyed. Although demand decreased modestly due to mortgage rule changes, the pipeline of potential buyers continued to put upward pressure on detached bungalows and standard two-storey homes. Multiple offers are still very common in the region.

Winnipeg’s real estate market produced average price gains ranging from 6.5 to 8.3 per cent as first-time buyers remained fairly active, despite recent changes to mortgage rules.

Low inventory coupled with demand created by low interest rates continued to put upward pressure on average year-over-year price gains in Regina. Standard-two storey homes posted the largest increase of 9.8 per cent rising to an average price of $359,500.

Calgary’s healthy market activity and increased consumer confidence has led to house price gains in the third quarter for detached bungalows and standard two-storey homes, increasing 6.5 per cent and 4.1 per cent respectively. Detached bungalows in Edmonton posted strong price gains rising an average of 7.5 per cent in the third quarter, while two-storey homes increased a modest 1.5 per cent and standard condominiums declined 0.6 per cent.

In Vancouver, average house prices posted modest decreases as market activity slowed down during the third quarter. Standard condominiums posted the largest decrease, slipping 3.0 per cent year-over-year to $498,000.


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