The Federal Budget for 2022 has made amendments to Part IX of the Excise Tax Act (“ETA”). Effective May 7, 2022, all assignment sales in respect of newly constructed or substantially renovated single unit residential complexes or residential condominium units are taxable. For clarity, with respect to residential housing transactions, ...
Continue ReadingA real estate transaction is often discussed in terms of price, but price is only one part of the agreement. The structure surrounding that price can be equally important. Conditions, financing, deposits, timing, due diligence, representations, repair obligations, occupancy arrangements and closing requirements all determine how the transaction actually operates. ...
Continue ReadingCommercial real estate can look attractive very quickly. A property may appear well occupied, the income may seem strong, the cap rate may compare favourably with other opportunities and the location may suggest long-term upside. Those are all reasonable reasons to become interested in a property, but they are only ...
Continue ReadingAssignment sales can create opportunities for both buyers and sellers, particularly in pre-construction condominium and investment transactions. They can also create risks that are easy to underestimate because the transaction may initially look similar to an ordinary resale. The difference is that an assignment buyer is usually not buying a ...
Continue ReadingConditional clauses are one of the most important risk-management tools available in an Ontario real estate transaction, yet they can easily receive less attention than price, closing date or offer timing. In a competitive market, those visible terms often dominate the discussion because they appear to determine whether an offer ...
Continue ReadingMy salesperson showed us two property listings and, in both instances, we wanted to submit an offer. But the properties were sold before the posted offer date. How can this happen? Buyers are sometimes surprised when a property they were planning to offer on is sold before the posted offer ...
Continue ReadingEnvironmental risk can be one of the most consequential issues in a commercial real estate transaction because the condition visible above ground does not necessarily tell the buyer what has occurred on, beneath or around the property over many years of use. A modern warehouse may occupy land that was ...
Continue ReadingMany commercial tenants focus heavily on the advertised rental rate when searching for industrial, office, or retail space. However, in Ontario commercial real estate, the “base rent” is often only one portion of the tenant’s total occupancy cost. One of the most common lease structures in commercial real estate is ...
Continue ReadingIn competitive Ontario real estate markets, sellers may occasionally receive what is commonly referred to as a “bully offer” or “pre-emptive offer.” These offers are typically submitted: before the scheduled offer presentation date, and are often designed to pressure the seller into accepting early before competing buyers have an opportunity ...
Continue ReadingWhen you buy a property, you buy any latent defects. This is why it’s important to properly inspect a property before making an offer to purchase. Patent Defects A patent defect is a defect that is obvious enough that it should be discovered during a reasonable inspection of the home. ...
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