Canadian realtors are bracing for a customer backlash starting today, as they become 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, and date of birth and occupation of property buyers and sellers, plus ID such as a driver's license 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.
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.
Call Jim today for more information on this new government legislation. 519-740-3690.
Ontario's Top Ten Towns To Live
Ontario's Top Ten Towns
Real estate expert Don Campbell and the Real Estate Investment Network have just released the top ten Ontario towns for real estate investors. Compiled from the research conducted by REIN, the top towns for real estate investment are:
1. Kitchener, Waterloo and Cambridge - Comprising Canada's Technology Triangle, the region is quickly becoming known worldwide as a competitive area in which to build a high-tech business. The area is so strong economically that the Real Estate Investment NetworkTM research team has dubbed it the "Economic Alberta of Ontario".
2. Barrie and Orillia (tie) - Barrie is an attractive community for people seeking the nearness and vitality of Toronto but with a slower pace of life. Orillia, with a rising population and expansion of post-secondary institutions, has tremendous opportunities for investors to provide student housing.
3. Whitby, Ajax and Pickering -The ripple outward from the Toronto toward this region has been picking up steam over the previous decade. However, until quite recently much of this demand increase has been from commuters wishing to locate in a lower housing-cost region of the GTA. Now, the area is attracting an increasingly diverse list of local employers.
4. Markham - Markham is known as the high-tech capital of Canada, with over 900 advanced technology and life science companies. This influx has led to the area outperforming many other areas of the province, in terms of both economy and real estate.
5. Hamilton and Brantford (tie) - Hamilton is transforming itself into a more diversified economy. A revitalization of key areas, a soon-to-be-opened new transportation route, and a stock of older, quality homes, will help keep Hamilton on the top ten list for many years to come. Brantford is strategically located and offers affordable housing. The multiple satellite secondary education campuses already located in the city provide a vibrant and younger population base.
6. Brampton - The city has a diverse and growing economy that, if anything, is growing a little faster than the infrastructure. Revitalization and densification of existing older areas will be a real key to Brampton living up to its ultimate potential.
7. Ottawa - Higher home-ownership costs, immigration and youth employment lifted rental demand in Ottawa. It is forecast that the city will pass from a very hot resale market with solid price augmentation to a more balanced market that will be more sustainable in the long-term.
8. Toronto - Taken as a whole, Toronto's real estate market will under-perform many of the surrounding regions, yet key neighbourhoods will have breakout years. Older condo units and ground oriented units in the areas such as Bathurst Manor, Armour Heights, and The Junction will do well in both average price increase percentage and potential cash flow. New high-rise condos located downtown and along the waterfront will still see demand.
9. Oshawa - The re-development of the downtown and many other developments about to be announced for the area will put the spotlight on a previously underperforming area of the city.
10. Whitchurch-Stouffville - This continues to be a town with tremendous potential. With low vacancy rates, no substantial increase in the number of rental units planned for the future, and a rising demand for the "country in the city" lifestyle, the town's biggest problem will be dealing with its growth.
For more information on these great areasto live please call Jim McLellan, Sales Representative for REMAX Twin City Realty Inc. at 519-740-3690-24 hour pager or direct at 519-242-8957.
Prices Continue to Rise Though Sales Slower
Resale activity in the Southwestern Ontario Area marked another hefty decline in May, the Toronto Real Estate Board said, dropping 16 per cent from year-ago levels. A total of 9,411 transactions were recorded in the month. But despite the sales dip, prices continued to rise: the average home price of $398,148 in May represents a 4 pert cent hike from the May 2007 average of $382,787.
Prices increased 3 per cent in the City of Toronto to $434,271 from $422,163 during the same period a year ago, while in the 905 region there was a 5 per cent increase to $374,629 from $355,341 last May.
Toronto Real Estate Board President Maureen O'Neill chose to emphasize the positive in her remarks after releasing the new data.
"Price gains show that real estate continues to be a solid investment for the consumer," said Ms. O'Neill.
"We are confident about the market because employment in the GTA continues to be strong and interest rates remain low.
"As long as consumers have the financial resources to buy homes and a variety of choices to manage carrying costs, the market should remain stable."
Two areas north of the city showed particular strength in the month. In Uxbridge, sales were up 10 per cent, while Stouffville saw a 12 per cent increase in sales, driven mainly by detached home transactions.
It is still a great time to sell your home. If you are considering selling you will find that your investment is still very strong though it may take longer on the market. This could change but no one really knows.
If you would like more information about the market or would like a free evaluation on your home call Jim McLellan at Remax Twin Cities at 519-242-8957 or email me at jmclellan@remax.net.
Understanding the Offer to Purchase Form is essential once your house hunting expedition is a success! You have found the perfect home, one that satisfies your needs, most of your wants- and best of all, fits your pocketbook. Now comes one of the most important phases of your home-buying experience: making an offer to purchase the home.
If you are buying a home, then, before you decide on whether this home is your dream home, the following checklist will help you look at prospective homes with a critical eye. We suggest printing this page and putting it on a clipboard. When you find a home that really interests you, mark the features you see and note their general condition on this list.
Home value sometimes referred to as "Value in Use", is best described as the probable price at which a home trades in a free, competitive, and open market and is synonymous with the market value.
SELLING YOUR HOME ON YOUR OWN - OR USING A REAL ESTATE SALESPERSON
If you have decided that now is the time to sell your home, you might be thinking: should I hire a Real Estate Sales Representative or do it alone. Have you ever considered repairing your own car? Anyone can buy the tools and parts. However, most of us just do not have the knowledge, training, experience or the expertise and commitment of time to do the job properly. Besides, there are plenty of experienced professionals to do the work for us.
When should I sell my home? Your answer to this question might be right now! If you have taken a job in another city or made an offer on a new home, or had an addition to your family, selling your home fast might be the most important goal you have. Most people, however, have some flexibility when they sell their home. Let us take a closer look at the most important factors that can go into this decision.
HOW REAL ESTATE MARKET CONDITIONS AFFECT YOUR OFFER PRICE
A hot market is a "seller’s market". During a seller’s market, properties can sell within a few days of being listed and there are often multiple offers. Sometimes homes even sell above the asking price. Though most buyers want to get a "deal" on a home, reducing your offer by even a few thousand dollars could mean that someone else will get the home you desire.
