Closed mortgages involve an agreement to pay a certain amount each period over a certain amount of time at a certain interest rate. If you make early payments, you might be subject to penalties in a closed mortgage. These types of mortgages are good for the lender, because they ensure compensation if the buyer saves on interest by paying early. They might also be beneficial to the buyer, though, because terms and interest never change.
]]> An open mortgage is more flexible if you think you might want to pay it off early. You can make payments toward the principle at any time without penalties. At the same time, however, you do give up some certainty with regard to interest rates, which can fluctuate over time.A convertible mortgage is an agreement that leaves the door open for a change in the future. You can enter into a convertible mortgage that is open in nature, for example, and switch to a closed mortgage later.
These are just some of the types of mortgages available, and our discussion only touches on the very basic differences between the types. When dealing with real estate purchases, it's a good idea to work with a professional who understands the law associated with the transactions. Taking time to understand and work within the law now can save you headaches in the future.
Source: Canadian Association of Accredited Mortgage Professionals, "Mortgage Types," accessed Jan. 15, 2016
]]>One of the most common disputes that comes up between neighbors has to do with noise. You paid good money to buy a home in what you believed would be an enjoyable neighborhood, and having that enjoyment ruined by late-night parties or other loud activities can be devastating to your lifestyle. Likewise, if you purchased property in an especially quiet neighborhood, you still have the right to regular activities during the daytime, which might make some noise. Whatever side of a noise dispute you are on, you have legal rights and an options for protecting your interests.
]]> Other common disputes between neighbors include arguments over the placements of fences, hedges and trees, issues regarding pets, disputes over the cleanliness of yards and homes and issues of trespassing. If a neighbor is piling up garbage on or around one's lawn or is simply failing to keep his or her home well maintained, you might have the ability to bring legal action. This is especially true if you purchased a home in a neighborhood with a set of regulatory rules or a homeowner's governing body.In other situations, your rights and options depend on the situation and the laws of the province and location. You can't simply go about cutting down trees you don't like, for example, but you might get an order that a tree has to be removed if it infringes upon your property or causes safety issues. Working with a lawyer helps you understand where you have a legal case in any type of dispute.
Source: FindLaw Canada, "What are common neighbour disputes?," accessed Jan. 08, 2016
]]>Even after you vet a lease, though, you can run into trouble. Disputes with commercial landlords are typically less common than disputes with residential landlords, but issues can arise. Whether you don't agree on requirements for signage or you believe a landlord is shirking on his or her maintenance requirements, it's important to understand how to try to resolve disputes and then move to legal action if resolution is not possible.
]]> First, approach the landlord with a request for a resolution or even a solution for the problem. Document the communication for use later if necessary; often, it's best to do a lot of the communication in writing for this purpose. If the landlord doesn't respond to your communication in a positive manner -- or doesn't respond at all -- you can try again a few times before taking the next step.After trying to resolve an issue yourself, the next step might be seeking assistance from a lawyer. A legal professional can help you weigh the benefits of filing any type of legal document. Sometimes, simply having a lawyer communicate with the landlord can make a difference in how a dispute is resolved. Ultimately, it's essential that you understand your business rights and work to protect them in situations where you feel a landlord is mistreating you.
Source: Smart Business, "How to deal with a commercial landlord and what to do if you end up in a dispute," Heather Tunstall, accessed Jan. 01, 2016
]]>Today, we sign so many agreements because of digital media and computer services, and putting our name on a piece of paper or clicking a digital signature button seems like no big deal. It has, in fact, become a running joke that no one reads the Apple or the Facebook terms of service before agreeing. While you might get away with signing Apple's TOS without reading it, you simply can't do the same with legal contracts that deal with business agreements, home purchases or other major relationships.
]]> But contracts are filled with legal speak, and they tend to be long and detailed. It's easy to get glossy-eyed when reading such a document, and most people outside of the legal profession struggle to understand exactly what a contract says. That's where we come in: Our firm offers independent legal advice.We review contracts and other documents, providing you with easy-to-understand explanations of the content and help you ensure the document isn't missing important information. Our goal is to educate and protect you, ensuring that you sign a document only after you fully understand the ramifications of the agreement and that you are signing without any undue influence from another party.
]]>Rounding up your mortgage payment by any amount makes a difference. Even adding a little bit to each payment shaves months from the total time you're paying a mortgage, and rounding up by $30 or more a month could reduce your total payment time by years. Round up to the nearest 10 or 100 if you are able; a $452 payment might become a $460 or $500 payment.
]]> Convert unexpected income to unscheduled mortgage payments. Small monetary gifts, bonuses or savings from a planned purchase can all be paid toward the mortgage. If you're current, these amounts usually go directly to the principle balance.Make your payments in a biweekly format instead of the monthly format to reduce the amount of interest you are paying. Divide the mortgage payment in two and pay that amount every two weeks; the bank is then charging interest for two weeks on less than it would have been. Over time, those interest savings add up to thousands and can reduce the time you have to pay by years.
Plan to make one unexpected payment every year. Making a single payment of a few hundred dollars in addition to your existing payment can decrease your payment time by several years depending on your mortgage terms.
If paying your mortgage at all is the problem, then attempting to get ahead might be out of the question. If you're struggling with debt and your mortgage note, consider seeking legal assistance to find out what options you have for recovering or starting over.
Source: CTV Canada AM, "Tips on paying your mortgage off earlier," Pattie Lovett-Reid, accessed Dec. 18, 2015
]]>One thing that can spark a surprising number of real estate disputes is a tree. The entire tree, or part of the tree, might fall from one person's property to another's, causing damage. A dispute might arise about who is responsible for the damage. A tree growing in one person's yard might infringe upon the yard of a neighbor, causing a dispute about whether the tree should be torn down. The tree might cause a problem with an entrance or exit to someone's property, or the tree's branches might become a nuisance against a building on a neighboring property. These all might seem like small concerns, but they can become larger legal issues if neighbors are unable to come to agreements.
]]> Trees are just one of the many things that can result in a real estate dispute. Other issues that might create disputes between you and neighbors, agencies, sellers or other people include issues related to zoning or permits, insurance issues and disagreements over boundaries or fence lines.No matter what sparked a disagreement, as a property owner, you do have legal rights. Understanding how to protect those rights and what your options are legally is important to ensuring a real estate dispute doesn't turn into a more expensive or lengthier legal issue. Our firm works with you to assess the situation and offers options for possible solutions.
]]>Usually, title insurance is purchased with a single premium payment and a payout only occurs if a title issue arises at some point in time while you own or are paying a mortgage on the property. Because title insurance can also benefit your lender, many lenders require that it be part of any purchase and mortgage agreement.
]]> Title insurance can cover the remaining cost of a mortgage, reimburse you for the value of your home or cover costs associated with correcting an issue of title or ownership. Every title insurance policy is different, though, so you should always read the fine print when considering these options.Commonly, title insurance covers situations where losses occur because of title defects, fraud, existing but unknown liens on the property, errors in public records or surveys and encroachment issues. Title defects and errors in public records could result in an unknown person having previous rights to a property. This would mean that the seller was not actually legally able to sell you the property in the first place.
Fraud might occur when a seller or other party knowingly sells a property without having clear rights to it. These cases are different from cases where the seller doesn't realize they don't have rights; in a title fraud case, the seller might make a fraudulent title document.
Encroachment issues occur when you purchase a property and later discover that the property lines were incorrect or that a building on your property encroaches upon a neighboring property. You might have to remove the building or remodel it to avoid encroachment.
All of these issues can be expensive, which is why title insurance is important. Title insurance is just one way to protect yourself when buying real estate; working with a legal professional to ensure all documents and contracts are in order can also help you avoid future expenses related to your purchase.
Source: Financial Services Commission of Ontario, "Understanding Title Insurance," accessed Dec. 04, 2015
]]>The listing agreement is usually required before the brokerage and its agents can act on behalf of you to sell your property. The agreement gives them certain abilities to promote your property and find someone to buy it.
]]> While each list agreement might be slightly different, the contracts tend to contain the same type of information. Obviously, the listing agreement will include some identifying information about you, the brokerage and the property in question. It should also include the date the agreement starts and provide a timeline for how long the agreement will last.When reviewing a listing agreement, make sure you look for information such as the compensation expected by the brokerage or agent. You'll also want to double check any information about your property and ensure the listing price is agreeable to you. The agreement will also probably have to include details about the financial situation surrounding the property: Do you own it outright, or is there a mortgage involved?
Other issues the might be included in such an agreement could include easements, liens and information about property taxes. You might also see language about disclosure. Disclosure requires that a seller be forthright and honest about any defects or other issues with a property.
When dealing with real estate transactions, if you don't fully understand paperwork such as a listing agreement, you should seek assistance before signing. Working with a legal professional on real estate contracts can help you avoid poor sales or transaction decisions and experiences.
Source: The Canadian Real Estate Association, "Advice for Sellers," accessed Nov. 27, 2015
]]>Always research the construction companies involved in building commercial property. For property that is already developed, ensure companies involved are known for quality work and take time to understand any guarantees that will transfer to you during the purchase. If something goes wrong with any aspect of a commercial property, this information lets you know who to turn to for assistance or possible compensation.
]]> Know your needs before you began shopping for commercial property. Many property owners will work with buyers to modify property to fit needs, but the best outcomes are experienced when you know exactly what machinery, staff or functionality you'll require on the property.Understand how your business type and size will impact your property needs. The requirements for industrial space are very different than those of retail or office space, for example. Certain industries, such as food service, require special access and machines. Keep all these requirements in mind when viewing potential properties.
Finally, understand your legal rights and obligations when it comes to a real estate deal. If you know what you need and are working with someone who understands how real estate transactions work in a legal space, you can often protect your rights and needs in writing. A strong real estate transaction protects your immediate needs and those that might arise in the future.
Source: Business Development Bank of Canada, "5 tips for buying commerical real estate," accessed Nov. 18, 2015
]]>According to FSCO, unauthorised lenders are reaching out to homeowners and others to offer second mortgage options. These equity loans are often marketed as available to home owners whether or not they have good credit. The problem is that these are possibly illegal lenders who are charging potentially illegal interest rates and fees. In some cases, the lenders are enticing home owners into second and even third mortgages on their properties.
]]> One of the consequences of this equity feeding frenzy is that homeowners can become enmeshed in debt that cripples them. When they are unable to pay all these mortgages, they fear losing their homes.Mortgage fraud isn't only limited to those seeking to fleece homeowners, however. According to reports, tighter lending regulations are making it more difficult for some home buyers to purchase the house they really want. These home buyers are being connected with mortgage brokers who know how to use the system to get the buyer approved even if he or she has a debt ratio that would otherwise disqualify the loan. In some cases, brokers are doctoring paperwork and making false claims to get buyers approved.
Whether you are the homeowner or the buyer, getting involved in mortgage fraud of any type poses serious risks. Working with a professional who approaches real estate and related legal matters with integrity can help you avoid such woes and protect your ownership in whatever property you do purchase.
Source: CanIndiaNews, "It’s official, mortgage fraud is thriving in Canada’s sizzling real estate market," Pradip Rodrigues, Nov. 12, 2015
]]>For example, many people believed that a real estate representative could not represent both the buyer and the seller in a transaction. In Ontario, however, the agent can represent people on both side. The catch is that the buyer and the seller have to agree to the arrangement in writing first.
]]> What happens if you make a deposit on a home you want to purchase, but your lender arrangement doesn't work out? Do you get the money back? According to the survey, most people believe that you not only get the money back, but that it is automatically refunded as long as made your offer on the property conditional upon mortgage approval. In truth, you might not get your money back.The deposit is held in an account by the real estate broker. If the seller demands that he or she keep the money, then it won't be automatically refunded. In such a case, you might have luck seeking the funds through a court order.
Other real estate laws and rules that are commonly misunderstood according to the survey include the fact that there is not a standard legal agreement for brokers and agents and the fact that buyers and sellers do not actually have a period where they can cancel a signed real estate agreement should they change their minds.
These are just some areas where people have a misunderstanding of real estate law. Because the law is very complex, it's often helpful to have someone with experience on your side to review contracts, help with zoning and other laws and reduce the chance of a dispute in the future.
Source: The Star, "Let’s see if you know Ontario real estate law: Roseman," Ellen Roseman, accessed Nov. 06, 2015
]]>The Line Fences Act applies in situations where a fence is being built or repaired on a property boundary. If, however, any property owners want to build a fence outside of the boundary line for any reason and there is a dispute about the building of that fence, then property owners will have to seek other legal remedies for negotiating the dispute.
]]> If a fence is being built on the boundary line between two properties, the property owners should come to an agreement on how the fence will be built, what materials will be used and who will cover the expense of the fence. In some cases, property owners might share the costs of a fence if it is beneficial to or required by both.Because fencing materials and build quality can make a difference in the value of a property, some property owners might have specific concerns about whether a fence is built out of metal, wood, stone or other elements. If both parties can't agree to these decisions, then they might end up in a dispute, and one or more of the property owners can apply formally to the clerk for assistance in settling the dispute.
If either property owner doesn't agree with the decision, there is an appeals process. Before entering any legal agreement about property, individuals might want to seek advice from experience real estate lawyers to avoid future woes.
Source: Ontario Ministry of Municipal Affairs and Housing, "Line Fences Act," accessed Oct. 30, 2015
]]>Last week, we talked about the difference between fixed and variable mortgages. That discussion entailed thoughts about interest rates and terms -- just two of the considerations someone must pay attention to when buying or selling property. In addition to the mortgage-related concerns, you could have concerns about the state of the property, the rights you are purchasing to the property or issues with neighbors or others regarding the property.
]]> For example, did you know when you purchase a property, you might not be purchasing the rights to anything located in the ground beneath the property? If you purchase a property that doesn't have direct access to a main road, you might also have to negotiate with a neighboring property owner for access to the road. If you are buying land in a rural area, is there a chance it will be developed into a subdivision? How will that impact your property values and how do you feel about close neighbors at some point in the future? These are just a few concerns that many people might not think about before deciding to make a real estate purchase.Our firm works to help you understand all the risks and requirements involved in a real estate transaction. We use our experience of contract and property law to ensure you are protected now and in the future whether you are buying, selling or leasing a property.
]]>Fixed-rate mortgages are actually one of the most common types of mortgages, but they have not been as attractive as variable rate mortgage in the Ontario area for several years. A variable-rate mortgage is one in which the interest rate changes with prevailing rates over time. Historically, that made the average interest rate over the life of the loan less than what many homeowners experienced with a fixed rate mortgage.
]]> As of 2015, mortgage advisers in the Ontario area are saying that the difference between fixed and variable mortgages is smaller, so a fixed-rate mortgage might make more sense for many home buyers. A variable rate mortgage comes with the disadvantage that payments go up and down, and you aren't guaranteed that interest rates won't continue to grow over time.Fixed-rate mortgages often come in two terms: 15-year and 30-year mortgages. With a 15-year mortgage, you end up paying less overall on the property because you are not paying interest as long. You also own the property outright much sooner. With a 30-year mortgage, your monthly payments are much smaller, although you might pay more over the entire mortgage.
Understanding mortgages before you buy your home is important. Many issues are involved in the loan process, and if you don't have a strong legal understanding of the documents you are signing, you can face issues later. If you do face unplanned issues with a mortgage, you have some legal rights under the contract. Working with someone who understand those rights might help you solve the issue in a positive manner.
Source: Bankrate, "Fixed-rate mortgages: Just the basics," Holden Lewis, accessed Oct. 16, 2015
]]>Electronically signed documents are signed without a pen; special software is used to record an electronic signature of some type, along with a date. Electronically signed documents can then be printed for appropriate filing or saved in digital format to reduce the amount of paper required for a process.
]]> By allowing electronic documents, the province helps agents, buyers and sellers reduce the environmental impact of the real estate process. It also increases real estate efficiency; documents can be emailed or transmitted in other digital fashion, saving travel and meeting times.Changes to the Ontario law are not the first such changes made in Canadian provinces. Five other provinces already allow electronic signatures on such documents. The law also doesn't require electronic signatures. Industry professionals, as well as buyers and sellers, still have a choice to use paper documents if they make more sense for the transaction or person.
The law change was met by praise from numerous real estate officials and professionals, including the president of the Ontario Real Estate Association. While electronic signatures will make real estate processes easier for some, sale and purchase contracts are still complex legal documents that require experienced handling to protect those involved.
Source: Ontario Newsroom, "Ontario Allows Real Estate Documents to Be Signed Electronically," accessed Oct. 09, 2015
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