Occasionally, one can see "For Sale By Owner" signs, and some owners think that selling their own home will not only save them money, but believe they have an advantage over the sellers that have their home listed by a reputable Real Estate Agent.  Before you decide to take on this very important and legally complicated process… remember not even most Real Estate Lawyer’s recommend selling your own home yourself in today’s market. Here are a few of the reasons why:

1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.

2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long…there must be something wrong with the home.

3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor… and the offer automatically will follow.  Remember that the buying process begins after they leave your home. If a real estate agent does not represent the buyer, and they are looking on their own… they usually leave the home and start to talk themselves out of the buying process. Real Estate Professionals are trained on how to overcome buyers remorse - a very common occurrence.

4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.

5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.

6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.

7. The majority of qualified buyers are working with experienced real estate professionals.

8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.

9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.

10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate agents to bring potential buyers.

11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer’s fees will be considerably higher.

12. Only real estate agents have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to agents. Further, real estate agents are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.

13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.

14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer’s to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Real Estate professional can act as a great mediator. Lawyers MUST act only on their client’s instructions and are not paid to negotiate.

(NC)-With the home renovation season upon us, you might be thinking of hiring a contractor. There are many reputable contractors in your community ready to do the work and willing to sign a contract to make sure both parties are satisfied when the job is done, and protected if something goes wrong.

Not all contractors play by the same rules, though, and if you get stung by one of these underground contractors, you could lose everything - your peace of mind, your savings, even your home.

Credit: www.newscanada.com


Sound serious? It is. As the owner of the property where the work is taking place, you are legally responsible and liable for any damages or injuries that occur on your property, regardless if someone else is doing the work. If that contractor becomes injured, or causes a life-threatening hazard due to sloppy work, you can be sued. A professional contractor is covered by his own liability insurance.

Without a paper trail - no contract, no warranty, no estimate or invoice - there is absolutely no record that the work was done, who did the work, or that they were even paid.

If you participate in the underground economy, whether as a buyer or a seller, not only are you putting your own safety at risk, you are taking away tax dollars from the health care system, government pension plans and employment insurance, to name a few.

Evading taxes is unfair to honest taxpayers and it's illegal. The Canada Revenue Agency has more than 1,000 full-time employees dedicated to catching these underground entrepreneurs, and once they "get their man or woman", the result can be hefty fines or even jail time.

If you want to do some homework on the issue, check out the Taxpayer Alert section of the Agency's website at www.cra.gc.ca, then click on the Underground Economy link.

(NC)-Whether you currently own or plan to purchase a property, if you are thinking of purchasing title insurance make sure you take the time to familiarize yourself with the policy. It is important to read the policy and ask questions, to be aware of the coverage that is provided. You also need to be aware of the exclusions in your specific policy, which may include:

. Known title defects.

. Environmental hazards, like soil contamination.

. Native land claims.

. Problems that would only be discovered by a new survey or inspection. For example, your property is smaller than originally thought.

. Matters that are not listed in public records.

. Zoning bylaw violations that arise from changes, renovations, or additions to your property or land.

For an extra fee, some insurance companies may offer extended coverage for additional risks, such as identity theft and known title defects, which are usually not covered by a title insurance policy.

More information on this topic is available online by downloading the Understanding Title Insurance brochure, published by the provincial insurance regulator, the Financial Services Commission of Ontario. For your copy go to www.fsco.gov.on.ca, and click on Publications.

Credit: www.newscanada.com

(NC)-A friend of a friend has a fantastic real estate "investment" opportunity for you: No need to put up any money, simply hold properties for a short time before they are flipped - and you and your new "friend" split the profits.

"This may be a fraudulent scheme and the mortgage lender could soon be looking for your mortgage payments," says Kathleen Waters, a specialist in real estate law and vice president of TitlePLUS title insurance. "Even worse, the police may be looking to charge you with a serious criminal offence."

The Tenant Flip Fraud

Your prospective tenant wants to rent your property for a child studying in Canada. But because he lives oversees, he's willing to pay the rent for a full year in advance and in cash. no need to worry about references since the rent is fully paid for a year.

To your surprise, your tenant fraudulently transfers the property to himself, then sells it to a very nice family who of course does not know you and will not leave simply because you say you own the property.

How this gets resolved depends on many things including whether or not you have title insurance and whether your province's land registration system has a compensation plan to deal with these types of issues. Resolving the problem might only cost you time and inconvenience - but it could also cost you tens of thousands of dollars to fix the problem.

The Middleman Value Fraud

That friend of a friend asks to use your name to buy and mortgage a property that's "a deal" at $250,000 and can be easily resold for more - with you and your friend sharing in the profit. The fraudster promptly disappears with over $200,000 in mortgage funds, you discover the property is only worth $150,000 -and you're stuck with the overpriced property and a very large mortgage.

If the real estate "deal" sounds too good to be true, check with your lawyer. Lawyers know what to look for and can help you avoid being duped by a fraudster.

A useful resource is the TitlePLUS Real Simple Real Estate Guide, a website that provides information on what lawyers do and how to avoid fraud, as well as mortgage calculators, a locate-a-lawyer feature and other tools. It is available for free at www.titleplus.ca.

Credit: www.newscanada.com

(NC)-Most of us see a regular check-up with our doctor as preventative medicine. Similarly, a simple visit with your lawyer could prevent or minimize legal problems for you in your future. Too often we don't take the time to consider if our current financial or legal situation is right for us, or whether our arrangements will work in our best interest in the event that something should happen to us or our families.

A good time for a legal check-up is when you are meeting with your lawyer anyway, such as when you refinance your mortgage.

"A mortgage is a large financial commitment and getting professional advice when you are refinancing can be invaluable to protecting your interests and saving money," says Kathleen Waters, a specialist in real estate law and vice president of TitlePLUS title insurance. "Having a lawyer involved helps borrowers understand the transaction and know their legal options."

You may not even be aware of some potential problems. For example, your mortgage may prevent you from renting out part of your house, as planned. Your lawyer can help negotiate more suitable mortgage terms or suggest other options.

If you did not buy title insurance when you bought the property, your lawyer can discuss its benefits and help you obtain a policy, if appropriate. For example title insurance may protect you if your property is the target of a fraud scheme.

Meeting with your lawyer when you are refinancing is also the perfect time for a tune-up of other legal matters. Do you have a will and is it up-to-date? Getting married, separated, divorced or having a child are just some of the reasons for updating your will.

Have you signed powers of attorney for property and/or health care? These are very important documents that can allow others to manage your assets (such as paying your bills) or make decisions about your health care when you are incapacitated. Having these documents and keeping them up-to-date can help to avoid costly court applications by family members who need to manage your assets.

A useful resource is the TitlePLUS Real Simple Real Estate Guide, a website that provides information on what lawyers do and how to avoid fraud, as well as mortgage calculators, a locate-a-lawyer feature and other tools. It is available for free at www.titleplus.ca.

Credit: www.newscanada.com