Realtor Bobby

New Housing Measures Announced

This morning, Premier Kathleen Wynne announced a comprehensive package of housing reforms, ahead of next week's provincial budget aimed at cooling the GTA housing market. The release can be found here. The announcement follows extensive media coverage about the serious concerns with the over-heating markets.

Mortgage Professionals Canada has been engaged with the Ontario government and many MPPs through our lobbying activities and our recent Queen’s Park Advocacy Day. We are pleased to see measures that will increase supply, improve data collection and curb speculation within the market place, which we have been asking the government to do.

However, we are disappointed that there is no additional support for first-time buyers in this package, and we suggest caution that a foreign buyer tax will not have the desired impact that the government seeks.

We will be studying the comprehensive package of measures in greater detail over the coming days and will continue to engage with the government to ensure the interests of our members are heard at Queen’s Park.

What was announced:

Introducing legislation that would, if passed, implement a new 15-per-cent Non-Resident Speculation Tax (NRST) on the price of homes in the Greater Golden Horseshoe (GGH) purchased by individuals who are not citizens or permanent residents of Canada or by foreign corporations.
Expanding rent control to all private rental units in Ontario, including those built after 1991.
The government will introduce legislation that would, if passed, strengthen the Residential Tenancies Act to further protect tenants and ensure predictability for landlords.
Establishing a program to leverage the value of surplus provincial land assets across the province to develop a mix of market housing and new, permanent, sustainable and affordable housing supply.
Introducing legislation that would, if passed, empower the City of Toronto, and potentially other interested municipalities, to introduce a vacant homes property tax to encourage property owners to sell unoccupied units or rent them out, to address concerns about residential units potentially being left vacant by speculators
Ensuring that property tax for new multi-residential apartment buildings is charged at a similar rate as other residential properties. This will encourage developers to build more new purpose-built rental housing and will apply to the entire province.
Introducing a targeted $125-million, five-year program to further encourage the construction of new rental apartment buildings by rebating a portion of development charges.
Providing municipalities with the flexibility to use property tax tools to help unlock development opportunities.
Creating a new Housing Supply Team with dedicated provincial employees to identify barriers to specific housing development projects and work with developers and municipalities to find solutions.
The province will work to understand and tackle practices that may be contributing to tax avoidance and excessive speculation in the housing market
Working with the real estate profession and consumers, the province is committing to review the rules real estate agents are required to follow to ensure that consumers are fairly represented in real estate transactions
Establishing a housing advisory group which will meet quarterly to provide the government with ongoing advice about the state of the housing market
Educating consumers on their rights, particularly on the issue of one real estate professional representing more than one party in a real estate transaction.
Partnering with the Canada Revenue Agency to explore more comprehensive reporting requirements so that correct federal and provincial taxes, including income and sales taxes, are paid on purchases and sales of real estate in Ontario.
Making elevators in Ontario buildings more reliable by establishing timelines for elevator repair in consultation with the sector and the Technical Standards & Safety Authority (TSSA).
Working with municipalities to better reflect the needs of a growing Greater Golden Horseshoe through an updated Growth Plan

5 Things to remember when reviewing a condominium status certificate
Watch the video: Click Here https://youtu.be/8zSeOBZnhd8

As a result of bidding wars for condominiums, buyers are being asked to review a condominium

status certificate in advance in order to submit an offer without conditions. As a service to our

clients, we offer this review at no additional cost. Here are 5 items I look at and questions I ask

when reviewing a status certificate in advance to give the buyers comfort before making their

purchase decision.

1. Have units sold and closed in this building in the last 3-4 months?

If units are selling and closing, it means that other lawyers and lenders have approved the

building, and that CMHC most likely has not refused to lend on the property, which has

occurred many times when concerns have been raised. This should give you some comfort

that all is in order in the building.

1. What is the condominium corporation number?

Condominiums are registered in numerical order, with the first buildings being registered

about 50 years ago. There are approximately 2700 condominium corporations in the Toronto

area. That means if you are number 2400, your building is likely 2-3 years’ old. If it is

number 1500, then it is likely 12-15 years’ old. If it is number 200, then it is closer to 45

years’ old. This can give you some clues as to when the roof may need to be repaired and

whether there is enough money in the reserve fund for major repairs that may be required.

For example, a roof may need to be replaced every 20-25 years. This is the major expense for

most townhouse projects.

2. Who is the property manager?

When the property manager is a familiar name, there is comfort that the condominium board

is being given the correct advice in how to properly maintain the building now and in the

future. If you hear names such as Brookfield, First Service or Dell, this is typically a positive

attribute for the corporation.

3. Does the reserve fund match the reserve fund study

The reserve fund study should be updated every 3 years. Be suspicious if there is no current

one. The amount in the reserve fund today should be similar to the amount that was projected

in the last reserve fund study. If there is a shortfall, then do the following calculation. If there

are 100 units in the building, it is likely your unit is 1% of the expenses. That means if the

reserve fund is short 1 million dollars, your unit share would be $10,000.00. If there are 200

units, your share is one half a percent or $5,000.00. This is likely your worst case scenario.

Just adjust your purchase price accordingly. You can do the same math if you need to cost a

special assessment or lawsuit affecting the building.

4. Is AirBNB permitted?

The status certificate will tell you how many units are leased to tenants. Many buildings

have minimum lease periods of 6 months to 1 year, which would prohibit Air BNB. More

and more condominiums are trying to prevent this, due to security and insurance issues.

5. Pets and Parking

Make sure you understand in advance whether pets are permitted at all in the building or

whether there are weight restrictions on pets that are permitted. There is no point wasting

time on buildings where the buyer has a pet that will not be permitted. Make sure you

physically see the parking space and the locker before signing any offer, so that there is

no confusion with what you expect to receive on closing. It is possible that the number on

the floor may not be the same as the legal unit number. That can be determined by just

asking the property manager for details.

If you understand how to read a status certificate, you can assist your clients during a

very stressful condominium bidding war.

5 Things to remember when reviewing a condominium status certificate 5 Things to remember when reviewing a condominium status certificate By Mark Weisleder As a result of bidding wars for condominiums, buyers are being asked t...

CHANGE OF DEFINITION OF "PURCHASER" WHO QUALIFY FOR PROVINCIAL LAND TRANSFER TAX REFUND FOR FIRST-TIME HOME BUYERS
Registrants are reminded of the new definition of "purchaser" as set out in subsection 9.2(1) of the Land Transfer Tax Act.

In addition to previous eligibility criteria, in order to claim the refund on registrations completed on or after January 1, 2017, a purchaser must be a Canadian Citizen or Permanent Resident of Canada. A Permanent Resident of Canada means a permanent resident as defined in the Immigration and Refugee Protection Act (Canada).

The new definition applies to all registrations based on agreements of purchase and sale entered on or after November 14, 2016.

The new definition has not resulted into any changes to the Land Transfer Tax statements that must be completed when claiming the provincial land transfer tax refund for first-time homebuyers.
For further information, please contact the Ministry of Finance:

Ministry of Finance
Compliance Branch
Tax Compliance & Benefits Division
PO Box 625
33 King St. West
Oshawa, ON L1H 8H9

Tel: 1 (866) 668 ONT TAXS
Fax: 1 (905) 433 5770
Teletypewriter (TTY): 1 (800) 263 7776
Website: ontario.ca/finance

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