Monthly Archives: May 2009

Are Real Property Reports Necessary If You Have Title Insurance?

Posted on May 24, 2009 | 1 Comment

Title insurance often guarantees that any improvements on a property comply with applicable zoning bylaws and that there are no encroachments on either the property or the adjoining property. If either situation exists, the title insurance company will pay the costs associated with obtaining compliance or the removal of an encroachment.

Real property reports (RPRs) provide the same information but the insurance premiums for title insurance may be less than the cost of a RPR and may allow a transaction to close faster. For these reasons, sellers may elect to buy the insurance instead. However, when the property is sold by the new owner, the title insurance will not transfer, as title insurance is only valid for the original purchaser. RPRs, however, can be passed onto a new buyer upon resale.

Alberta’s land registration system is based on the Torrens System, under which the government has custody and legal responsibility for the validity of all titles, documents and plans. If a person suffers a loss due to an error on title or as a result of a fraudulent transaction, the person may claim compensation from the government’s Assurance Fund.

Title insurance may offer owners protection against issues involving encroachments (as well as various other issues) but buyers are advised not to use title insurance as a replacement for RPRs.

Commissioning a RPR when considering a property purchase provides the prospective buyer accurate information about the state of the property. It can help buyers make informed decisions by revealing the existence of any encroachments before purchasing the property, rather than worrying about whether or not a problem will arise and hoping that the title insurance will cover it.

RPR Sample

Copyright Alberta Real Estate Association. Reprinted with permission” AREA
makes no guarantee as to the accuracy or completeness of this information

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Posted in Calgary Real Estate Discussion

Tagged calgary real estate, real property report, rpr, title insurance

Secondary Suites in Calgary

Posted on May 24, 2009 | 3 Comments

bylaw Whether planning on developing your basement to rent out, or are purchasing a home that already has a secondary suite, it’s important to know what can happen if your property isn’t zoned to have one. At least 1 illegal suite has been shut down every day for the past 5 years by City Inspectors.

“When the city inspector came to check the basement suite at 239 Erin Meadow Close S. E., she didn’t check for leaky ceilings, unsafe windows or faulty wiring.

But she did find something that warranted shutting it down. She found kitchen cabinets, a countertop and a sink — the telltale markings of a dwelling unit. And with no development permit granted for owner Deanna Oxtoby, that made it an illegal secondary suite.

The lack of safety concerns made no diff erence, nor did the roughly $30,000 of renovations Oxtoby said she did to upgrade the property. Rules were rules. Oxtoby had until last Dec. 1 to close it down.”

Read the full article in the Calgary Herald: Basement Suite Closures Raises Ire, May 24, 2009

What is a secondary suite?

A secondary suite can also be known as a:

basement suite
mother-in-law suite
granny suite
garden suite (detached, stand-alone)
above the garage suite

What you need to consider if you’re planning on developing a secondary suite

1) You need to identify what your property’s land use district is

Property Land Use District Search (City of Calgary)

If your land use district is:

R-1, R-C1, or R-C1L

Secondary suites are not a listed use in the above districts. However, it’s possible to apply for a Land Use Amendment so that secondary suites would be a listed discretionary use.

If your land use district is:

R-1s, R-C1s, R-C1Ls, R-2, R-C2, R-2M, or M-CG

AND is a single detached dwelling (if it is not a single detached dwelling, secondary suites are not allowed)

AND your property meets the minimum required parcel width, depth, or area requirements needed for a secondary suite

THEN secondary suites will be a discretionary use, and you can then apply for a Development Permit.

If your land use district is not listed above, then secondary suites are not permitted.

For more info, check out the two guides below, or visit the City of Calgary website.

A Guide to Developing a Secondary Suite (305 KB) explains the various applications stages involved in developing a secondary suite.
Secondary Suites – Alberta Building Code Requirements (1,147 KB) explains the general building code requirements for secondary suites.

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Posted in Calgary Real Estate Discussion

Tagged basement suites, calgary real estate, garage suites, secondary suites

Mid-May 2009 Calgary Real Estate Market Update

Posted on May 17, 2009 | 3 Comments

Buoyed by low interest rates and lower prices, sales are poised to increase year-over-year for the first time in 2009 for both SFH and Condos in May.

Sales volume would likely be higher if there were more properly priced, desirable homes on the market. When clients call with interest in some recently listed properties, inevitably some have already gone pending. Buyer interest is there, it’s just been more difficult finding that right property. Inventory is down to 4126 for SFH currently (from 7099 last May month-end) and down to 2030 for Condos (from 3308)

Builders continue to have competitive prices – in some cases, brand new homes of the exact same model are selling for $10k+ cheaper than resale homes. Although spec homes/quick possessions are much fewer than last year, they are still out there and not necessarily on MLS. The builders below are part of the CHBA Builder-Realtor program. Commissions are already built into their price, so whether you use a Realtor or not, you can still negotiate the same deal. In other cases, sale prices are firm (again, regardless if you use a Realtor or not). Why not have a Realtor on your side recommending conditions such as your lawyer reviewing the contract, property inspections (yes, even for new homes), providing a list of sold comparables to look over, and provide an overall unbiased opinion about the builder? Remember, your Buyer’s agent looks out for your best interests, whether it means looking at new homes, resale, or even FSBO.

If you’re interested in new homes, and would like me to represent & help you throughout the new home process, I need to come with you to the Showhome the first time you visit and register us with the builder.

List of Cooperating New Home Builders

Albi Homes Ltd.
Arcuri Homes Inc.
Birchwood Properties Corp.
Burntwood Holdings Limited
Canyon Custom Homes
Cardel Homes
Carolina Homes Inc.
Centrex Homes
Cidex Signature Homes
Douglas Homes Ltd.
Elite Homes LP
Excel Homes
Greenboro Estate Homes LP
Hawthore Homes
Heartland Homes
Homes by Avi (Calgary) Inc.
Homes by Us Ltd.
Jager Homes Inc.
Janssen Homes Ltd.
Jaymack Custom Homes
Jayman MasterBUILT™

Landmark Homes (Calgary) Inc.
Lask Homes Ltd.
Loreck Homes Ltd.
Lupi Construction Ltd.
McKee Homes Ltd.
Newcastle Homes
NuVista Homes Ltd.
Pointe of View Developments
Reid Built Homes Calgary Ltd.
Sandlewood Developments Ltd.
Schickendanz Bros. Ltd.
Shane Homes Ltd.
Stepper Custom Homes Inc.
Streetside Development Corp.
Talisman Homes Ltd.
The Statesman Group of Companies Ltd.
The Sterling Group
Trico Homes
Wilderness Homes by Riverdale Inc.
Willowbrook Homes Inc

Prices continue to decline year-over-year. Arguments could be made that they have increased month-to-month since the beginning of the year, leading some to believe we may have reached a bottom. Opinions on whether prices have stabilized or are just in a seasonal holding pattern vary depending on which camp you’re in – prospective buyer or current owner. The question will be whether steady prices or sustainable price increases continue into the summer and fall months. As well, not to be ignored is the effect low interest rates (mid-3% for 5 year fixed terms) are having on prices and affordability.

Prices for May 1 - 15th

Prices for May 1 - 15th

If you have any questions or want to buy or sell real estate, feel free to contact me.

Mike Fotiou
First Place Realty
Accredited Buyer’s Representative, Certified Condominium Specialist & Commissioner for Oaths in the Province of Alberta.

For official statistics, please visit CREB.com

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Posted in Calgary Real Estate Discussion

Tagged calgary real estate, may condo sales, may home prices

Government Incentives, Rebates & Tax Credits To Take Advantage Of

Posted on May 14, 2009 | 2 Comments

If you’re planning on purchasing a home or are already a homeowner, make sure you make full use of the government tax credits and incentives available. Here are some of them:

First-Time Home Buyers’ Tax Credit (HBTC) $750.00

Starting in 2009, certain home buyers that acquire a qualifying home after January 27, 2009 will be eligible. For 2009, the credit will be $750.

Click here for FAQ’s regarding elibility and requirements…

Home Buyer’s Plan (HBP) Limit Increased

The Government of Canada has increased the Home Buyers’ Plan withdrawal limit to $25,000 from $20,000 per person for withdrawals from RRSP savings made after January 27, 2009 for first-time buyers. This applies to new builds or resale.

Click here for FAQ’s regarding elibility and requirements…

Home Renovation Tax Credit (HRTC) Up to $1350 for 2009

The credit will be based on eligible expenditures for work performed or goods acquired after January 27, 2009, and before February 1, 2010.

Some examples of eligible expenditures:

Renovating a kitchen, bathroom or basement

New carpet or hardwood floors

Building an addition, garage, deck, garden/storage shed, fence

Re-shingling a roof

A new furnace, woodstove, boiler, fireplace, water softener or water heater

A new driveway or resurfacing a driveway

Painting of interior or exterior of a house

Window coverings directly attached to the window frame and whose removal would alter the nature of the dwelling

Laying new sod

Swimming Pools (Permanent – in ground and above ground)

Fixtures – lights, fans, etc.

Associated costs such as permits, professional services, equipment rentals and incidental expenses.

Click here for FAQ’s regarding elibility and requirements…

Genworth/CMHC Financial Energy Efficient Housing Program

Home buyers purchasing an energy-efficient home or refinancing an existing home to make energy-saving renovations with Genworth or CMHC-insured mortgages are now eligible to receive a 10 per cent premium refund.

Genworth example:

genworth

Genworth: Click here for FAQ’s regarding elibility and requirements…
CMHC: Click here for FAQ’s regarding elibility and requirements

ecoENERGY Retrofit Rebates

Natural Resources Canada (NRCan) is offering residential energy efficiency evaluations. Under ecoENERGY Retrofit – Homes, property owners can qualify for federal grants by improving the energy efficiency of their home and reducing their home’s impact on the environment.

Energy advisors that are certified by NRCan conduct a detailed, on-site evaluation of your home’s energy use from the attic down to the foundation. They then provide you with a personalized report, including a checklist of recommended retrofits to improve the energy efficiency of your home or MURB and, in some cases, reduce water consumption. The report also shows the grant amounts for each eligible upgrade that you can receive by carrying out these energy-saving improvements.

Click here for a list of improvements and retrofits that are eligible under the ecoENERGY Retrofit – Homes program

Thinking of buying or selling real estate? Contact me at 403-554-2284 or email me at mike@findcalgary.com