Wednesday, April 27, 2011

Death in a property, do you have to disclose this fact when you sell?

I was asked a very good question about disclosure of a death in a property. Below is the question and my answer.


Mark,


QUESTION:


I want to list my house for sale. There was a death in the house and I want to know if it is mandatory that this information be devulged to perspective buyers. The death occured 9 years ago and I am wondering how long people have to be reminded of it.


If your response is that it is mandatory, then my questions would be:


1) For how many years?


2) When would it need to be mentioned? (Certainly not to everyone who comes through the doors)


3) To whom, would you have to mention it to.


Please note that I have been advised by my lawyer that there is no such law that it needs to be mentioned but am being told otherwise by realtors. I need to know if it is up to the realtor's discretion.


Thank you J.


ANSWER:


Hello J.,


Thank you for your real estate inquiry. This is a very good question and one that people have debated for years.


There is no single correct answer on this issue.

Yes, your lawyer is correct, there is no law in place. The "law" for us realtors is that we must disclose any material facts that affect the market value of the property.

When there is a death in the house and depending upon the circumstances of the death, this can be a tricky situation. People pass away in their homes all the time and there is never any mention of it.

The root of the issue is that if there was a death in the house (or some other incident) that would materially affect the market value of the house today. Without knowing the circumstances of your situation, 9 years is a long time and unless it's a famous house for one reason or another or if you think that the death 9 years ago still affects the market value today and if the neighbours would still feel and talk about the death 9 years later and if the death was such that it affects the value of the house, then you may have to disclose it. Otherwise, I would not think that you do not need to disclose the death.

As far as I have been taught and told, you are not required or "obligated by law" to disclose anything about a property that may be a "stigmatized" property where there has been a death, murder or suicide or the house is "haunted". but if you/we are asked about these things, you/I must honestly answer any inquiries.

Another thing for you to think about is this.



  • If we sell the house and it closes and a month later the buyer finds out about this death, do you think that the buyer would feel that we should have disclosed the death 9 years ago?

  • Do you think that the buyer's decision to purchase the house would have been any different had the buyer known about the death before they submitted their offer?

For example, I had a listing where the woman hung herself in the garage of the house. It was all over the news at the time and we had to disclose the fact that she did this at the time of the listing. The house was listed again about 6 years later and there was no mention of the death in the house. I feel that's a reasonable amount of time where it no longer materially affects the market value and disclosure was not necessary.


Again, there is no law in Ontario that I know of that forces you to disclose a death in a house. If it was a suspicious death and after the closing if the buyer may feel that he or she was deceived then they could initiate a lawsuit. Of course, anyone anytime can initiate a law suit in a real estate purchase if they feel they were deceived by non disclosure.

I also think that you should consult with your lawyer on all issues such as these that you are unsure about.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

A. Mark Argentino P. Eng. Broker


Specializing in Residential & Investment Real Estate


Tuesday, April 26, 2011

TREB Toronto Real Estate Board single family dwelling residential breakdown of sales

TREB Toronto Real Estate Board single family dwelling residential breakdown of sales







Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Monday, April 25, 2011

2011 TREB Affordability Indicator Share of Average Household Income Used for Mortgage Principal and Interest, Property Taxes and Utilities April 2011

Explanation: This chart plots the share of average household income that goes toward mortgage principal and interest, property taxes and utilities for the average priced home in the GTA subject to the following assumptions:
1.Average annual or year-to-date home price as reported by TREB
2.20 per cent down payment
3.Average 5-year fixed mortgage rate (Statistics Canada); 25-year amortization
4.Average property tax rate reported by/estimated from the Statistics Canada Survey of Household Spending
5.Average utilities cost reported by/estimated from the Statistics Canada Survey of Household Spending and components of the Consumer Price Index
6.Average household income reported by the Census of Canada



Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Friday, April 22, 2011

TREB MLS® Sales-to-New Listings Ratio Compared to Average Annual Per Cent Change in Home Price Sales April 2011

Explanation: This chart plots the monthly sales-to-new listings ratio (blue line) with year-over-year average annual per cent price change (brown line). When the sales-to-new listings ratio moves higher, average annual per cent change in home prices generally trends higher. When the sales-to-new listings ratio moves lower, average annual per cent change in home prices generally trends lower.


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Thursday, April 21, 2011

Lunacy - Is the Real Estate market heated up in Mississauga?

Currently, Real estate sales in Mississauga are very heated

Daniel's is opening their phase 3 stacked townhome complex at Winston Churchill and Eglinton. I've been told that people began lining up on Monday April 18th for a chance to purchase one of these new townhomes.

There are many similar type stacked townhomes currently on the resale market, but these are for brand new units.

These units don't go on sale until Saturday morning May 5th, so people will be standing in line almost 3 weeks and will begin living in a tent for about 2 weeks starting April 25th for the opportunity to buy a townhouse - lunacy!


Or maybe I'm wrong and standing in line for 2 to 3 weeks is the norm.

All the best!
Mark


PS: Are you worried about what option you should choose for your mortgage, read which is best here:
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

TREB Toronto Real Estate Board single family dwelling residential breakdown of average price

TREB Toronto Real Estate Board single family dwelling residential breakdown of average price


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Wednesday, April 20, 2011

TREB MLS® Average Price Monthly Time Series with Trend Line Actual April 2011

Explanation: This chart plots monthly MLS® average price since January 1995. The blue line shows the actual average price. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual average price must occur to change the direction of the trend.



Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Tuesday, April 19, 2011

GTA Real Estate Mid Month resale homes

This report below is the latest report from TREB showing the mid month sales are down as are listings. Still an exceptionally strong market in Mississauga and western GTA


All the best,


Mark


GTA REALTORS(r) RELEASE MID‐MONTH RESALE HOUSING FIGURES


TORONTO, APRIL 18, 2011 ‐‐ Greater Toronto REALTORS(r) reported 4,444 sales during the first two weeks of April 2011 -a three per cent decrease compared to the first two weeks of April 2010. The number of new listings was down by 21 per cent compared to the same period last year.


"ales activity was quite strong during the first two weeks of April. If this level of activity is sustained for the remainder of the month, we could see April transactions close to last year' record result. Positive economic news has kept households confident in their ability to purchase and pay for a home over the long term,"said TREB President Bill Johnston.


The average selling price for firm deals reported through the first two weeks of April was $483,165, representing a 12 per cent increase over the average price of $430,271 reported during the same period last year.


"he number of homes listed for sale so far in 2011 has been below expectations. Market conditions have tightened, resulting in increased competition between home buyers and accelerating rates of average price growth,"said Jason Mercer, TREB' Senior Manager of Market Analysis.


"he strong rate of price growth reported for the first two weeks of April should entice more households to list their homes for sale. This would result in more balanced market conditions and more moderate rates of price growth,"continued Mercer.


I hope this finds you Happy and Healthy!


All the Best!


Mark



A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com


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TREB Toronto Real Estate Board single family dwelling residential breakdown of active listings

TREB Toronto Real Estate Board single family dwelling residential breakdown of active listings


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Monday, April 18, 2011

TREB MLS® New Listings Monthly Time Series with Trend Line Actual April 2011

Explanation: This chart plots monthly MLS® new listings since January 1995. The blue line shows actual new listings. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual new listings must occur to change the direction of the trend.


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com