Did you read Schedule B?

 

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Someone asked why photos of the home they had purchased were still posted on-line and Joseph Richer, the Registrar of RECO, answered as follows: “once ownership of the home has been transferred to you — the new owner — a seller’s representative can’t make any reference to the property in advertising without your written consent. That includes posting photos of the home on their website or anywhere else.”

Mr. Richer went on to add that “before publishing an ad that contains the selling price, closing date or other details about the deal, a sales representative needs to obtain written consent from both you and the seller, regardless of who owns the property at the time of the advertisement.”

Have you given written consent to the listing brokerage to advertise these details of your agreement?  Look through your agreement for the listing brokerage’s Schedule B.

Most brokerages include clauses in a schedule to cover under what terms interest will be payable on your deposit. Other items are also included. I like to include a limit of one hour on any revisits and agreement that the deposit will be a bank draft. Sometimes there are clauses where the Buyer and Seller both agree that they have not received any professional advice from either brokerage like legal, engineering or environmental advice.

But there is a troublesome clause that I always adjust for my buyers, and that’s this one:

“In accordance with the Privacy Act (PIPEDA), the Buyers and Sellers hereby agree to allow the Listing Brokerage and their Representatives to distribute information pertaining to the sale of the property in future marketing material upon this Agreement becoming firm and binding. Such information may include the price but shall not include the names or personal information about the Buyer or Seller.”

There is no end date in this clause so I always add “until completion only” which gives permission to advertise the sale details until the closing date only.  It makes sense that a Listing brokerage will want to be able to advertise that they successfully sold the house and that usually includes the price or some sort of identifying information about the price – like 102% of asking or $50,000 over asking.  If this is not acceptable to you as a Buyer, ask your representative to get rid of the entire clause.

Be warned that changes to this clause shouldn’t negatively affect you in a multiple offer situation because this won’t affect the Seller’s bottom line, but this will depend on how the change is explained to the Seller.    Click the link below to read the article.

See Toronto Star Article here

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Rent Control

Rent Control does NOT apply to every rental unit.  If the property was occupied on or after November 1, 1991, rent control does not apply.  It still makes sense to charge rent that is within the current market rates so that your rental unit remains competitive.

Here’s a link to the Ontario Government Rent Increase Guideline for 2016

Increasing the rent at the rent control amount gives you an opportunity to clear up interest that is accruing on the last month deposit. The interest rate and the increase guideline amount are now the same. In 2016 this is 2%.  So if you increase the rent by 2%, you automatically top up the last month deposit (on paper) by 2% by applying the interest amount to the last month deposit rather than paying it out by cheque.

Any rent increase has to follow specific rules. The notice must be delivered to the tenant 90 days before the rent increase.

Here’s a link to the instructions for a rent increase for a unit that was first occupied after November 1, 1991: N2 – Unit not under rent control

And here’s a link to the instructions for a rent increase for a unit that is under rent control: N1 – Unit under rent control

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