Skip to main content
Tag

Toronto Real Estate

Apr 17
Love0

What is a Status Certificate and WHY are they important to review before buying a condo?

By Advice For Buyers, Video Blog

One of the most important parts of the condo buying process, is reviewing the corporations Status Certificate! 

What is A Status Certificate?

A status certificate is a collection of documents, issued by a condominiums property manager that contains info on:

  • Contact information – lists out the legal name of the Condo Corporation, Property Management, and Board of Directors.
  • Maintenance fee amount (Expenses) – both at time of issue and if there are any plans to increase in the near future.
  • Budget – what the building is spending its monthly maintenance fees on.
  • Reserve Fund – how much they have saved for the repair and replacement of components in a condo (ie. savings for roof repairs, parking garages, upgrades, etc)
  • Legal Proceedings/Claims – if any lawsuits are levied against the corporation, or if the corp has levied any against others.
  • Leasing of Units – how many units are currently tenanted in the building
  • Notices – announcements of maintenance fee increases, any planned repairs, or other factors that may impact maintenance fees
  • Bylaws and Rules – The bylaws and rules list what you can or can’t do in a building…Some buildings in the city have outright bans on pets or restrictions on certain breeds and weights.
  • Insurance Requirements – policies the corp has in place, and requirements for new purchasers to have.

How Order a Status Certificate

A seller can request a status certificate by contacting the buildings property manager.  The management company will have 10 business days to prepare and can deliver it in either hard copy or in digital via email. 

How Much is a Status Certificate

The certificate will cost $100 + HST and can be paid by either the buyer or seller, depending on how a deal is structured.

Why You Must Request a Status Certificate

Sellers – I often suggest ordering one before you even go to market with your property.  As a seller, you have a duty and responsibility to disclose any and all details that could impact the sale of your condo.  By ordering a status in advance, you’ll be made well aware any potential pitfalls and can disclose these issues to potential purchasers ahead of time to avoid any issues with closing.

Buyers – In a condo, values are closely tied to how well the building is run (second to location of course).  If fees skyrocket, you may find that the buildings value will appreciate much slower (or actually depreciate) than a building with lower maintenance fees.  A building with known problems can also have an impact on financing and insurance resulting in higher monthly costs – knowing this in advance can allow you to negotiate a better price, or walk away from the deal all together!

Who Reviews the Status Certificate

It is crucial, you take it to a Real Estate Lawyer who has experience in condo dealings.  They are trained in knowing what to look for and the right questions to ask. DO NOT take it to general law firm, or rely solely on a realtors review of it!

How Long Do you Have to Review a Status Certificate 

Most clauses generally allow 2-3 days for lawyer review.  It’s a small window of time, so it’s best have a candid conversation with your lawyer in advance and tell them exactly how you plan on using the property. 

A common misstep is with buyers who spends months out of country.  If their plan is to rent it on AirBnB while away, it’s best to make sure there aren’t any rules or bylaws preventing you from doing so!

Remember, a Status Certificate is generally valid for only 90 days – so if a seller produces a Status dated older than 90 days, ensure you request a new one.

When Should You Walk Away From Purchasing a Condo

No matter how in love you’ve fallen with your new purchase – there are a number of reasons you may want to walk once the status certificate is reviewed: 

  • If the corporation has a low reserve fund – with no plans of replenishing
  • Lawsuits that could result in a loss to the building
  • Indications of an increase to monthly fees or large repairs
  • Being blacklisted from lenders or insurance companies

Accompanying Documents That Also Come With a Status Certificate

Other important documents that accompany the status include:
  • The Declaration
  • Bylaws
  • Rules and Regulations,
  • Certificate of Insurance
  • Current Budget
  • Reserve Fund Study
  • Management Agreements
  • Financial Statements
  • New Owner Information
  • Move-in and Out forms
  • Other Building forms

 

Feb 23
Love0

What Are they Building at 529-543 Marlee Ave? 819 Glencairn Ave.

By New Condo Developments
More changes are coming to Marlee Ave! An application has been submitted by KFA Architects and Planners on behalf of 809726 Ontario Ltd to build a 9 storey, residential condo on the corner of Marlee and Glencairn.

Where Will the Condo be Built?

The lot is located on the North East corner of Marlee and Glencairn. The application was submitted to re-develop the addresses known as 529, 537, 539, 541 and 543 Marlee Avenue as well as 811 and 813 Glencairn Ave. For application purposes, the building is referred to 819 Glencarin Ave – but that name may change as the approval process progresses.
 

What is Currently on Site?

The lot is occupied by a three strorey mixed use building with commercial uses at grade and walk-up apartments above. 
Sidenote: we know this corner very well, as we’ve had many dinners at Li Cheng’s!

How Many Units Will be Built?

The current application calls for 84 residential units with retail at grade. The retail space can be divided into a variety of options, from 1 large unit to 6 smaller ones.

What Type of Layouts Will 819 Glencarin Ave Have?

The current proposal is calling for:
28 one bedroom units
24 one bedroom and den units
28 two bedroom units
2 two bedroom and den units
2 three bedroom units

What Will The Project Look Like?

Screen Shot 2018-02-16 at 1.09.55 PM
Screen Shot 2018-02-16 at 1.12.24 PM
Screen Shot 2018-02-16 at 1.12.34 PM
Screen Shot 2018-02-16 at 1.12.46 PM
Screen Shot 2018-02-16 at 1.12.59 PM
Screen Shot 2018-02-16 at 1.13.13 PM
Screen Shot 2018-02-16 at 1.13.20 PM
Screen Shot 2018-02-16 at 1.13.32 PM
Screen Shot 2018-02-16 at 12.52.38 PM

What Amenities Will the Building Have?

Plans are calling for a gym and party room along with a shared outdoor balcony.

Will the Condo have Parking?

Three levels of underground parking will be included in the design, along with 79 parking space with two spaces for commercial use and eight for visitors. They will also have bicycle parking off of the main level.

When Will 819 Glencairn Ave Be Built?

Plans were submitted to the city in September 2017 and the first community consultation meeting was in January 2018.  There was a lot of community push back and a many changes suggested to the overall project.  As more info is known, we’ll update the blog!

Our Thoughts on the Project

Marlee Ave is ripe for development – it has the vibe, feel and potential to become “The Ossington” of midtown! This application is the second of the year for the strip (first being a series of stacked townhomes at Wenderly Ave), and atleast to us, a welcomed addition to the area.  

In January 2018, we attended the community consultation and unfortunately many in the room didn’t share the same enthusiasm for the project as we did!  There was a small handful of the usuals who flat out wanted no changes whatsoever.  BUT there was also a larger group that were open to redevelopment, so long the height was brought down.  

Personally, we think 9 storeys is perfect for the area! A short walk south on Marlee is where you’ll find several condos, built in the 70’s, with heights of over 20 storeys tall. We also like the use of red brick for the exterior, helps set it apart from yet another boring glass building.  

From the sounds of it, it looks like the architects will be going back to the drawing board to makes changes to the proposal. Be sure to check back as we’ll be providing updates as more is known!

Feb 12
Love0
Hand writing on notepad

The Ontario Government Introduces New Standard Lease Agreements for Residential Rentals

By Advice for Landlords, Video Blog

The Ontario Government is introducing a new standard lease for all residential rental agreements in Ontario! All residential leases signed on or after April 20th, 2018 will have to be written on the new forms and this will include all single and semi-detached houses, apartment buildings, rented condominiums and secondary suites (such as basement apartments).

Where Can I Download a Copy of the New Lease Agreements?

You can download a free copy of the agreement from the Ontario Governments Website!

Why is the Government Introducing the New Standard Lease Agreement?

As part of the Ontario governments Fair Housing Strategy – they promised to overhaul the process and create a standardized lease agreement.  The purpose of the change is to make the wording of residential leases consistent across the province. For years, many agreements have included clauses and conditions that are not allowed in a lease as per the Residential Tenancies Act.

How Has The Wording Changed in the New Lease Agreements? 

The new agreements are written in a easy to understand language and go further in-depth than the current lease docs being used. It also outlines the rights and responsibilities of both tenants and landlords, and explains what can (and cannot) be included in a lease.
 
You may have been using the same lease for years, not knowing that the clauses and conditions in it were not allowed.  For example, the new agreement states that a landlord can only ask for a deposit equal to 1 month of rent. Many (us included), have made it standard practice to ask for First and Last month as a deposit.  Another example is in regards to the NSF charge a landlord can ask for when a cheque bounces.  We’ve seen leases that require a $50-200 fee – a sum that is way over the $20 allowed by The Act. The new agreements very clearly state that no more than $20 can be charged as a fee for Non Sufficient Funds.
Although these items may seem like a change – remember, these were the rules all a long – they weren’t very well enforced or made clear in past contracts.

Is This Going to Change Rental Values

It’s unlikely to have much of an impact (up or down) on values.  This is more a change of process as opposed to a change of policy.  

Are There Exceptions to Those who use the New Lease Agreements?

The standard lease form does not apply to most social and supportive housing, retirement and nursing homes, mobile home parks and land lease communities, or commercial properties. The government will develop separate standard leases to address these other types of residential tenancies.
 

Can I Still Add My Own Clauses to the New Standard Leases?

The 15th Clause of the new agreement states that a landlord and tenant can agree to additional terms provided the term are written in plain language and clear set out what the landlord or tenant must or must not do to comply with the term.  If a term conflicts with the Residential Tenancies Act, 2006 or any other terms set out in the lease, the term is void and cannot be enforced.
Feb 07
Love0
Modern house with garden swimming pool and wooden deck

There Needs To Be More Transparency with Real Estate Bidding Wars

By Advice For Buyers, Advice For Sellers, Video Blog

We need to change the bidding war process in Toronto! If you’ve tried to buy a home in recent years, you know how backwards the current process is…If you haven’t, let me explain.

The Current System

A seller will list their property below market values to create a frenzy amongst buyers.  After roughly 7 days of market exposure, they’ll review and all offers that come to the table.  The problem is that each buyer is going in “blind” not knowing anything about the other offers.

Current rules, as set by the Real Estate and Business Broker Act, say we can not disclose the motivation, offer, or price of a competing offer. Thus creating a blind bidding system full of suspicion and mistrust.

The winning buyer always feels like they paid too much, the losing buyers feel like they could have paid a bit more and the sellers could regret the highest bid if the winning buyer can’t secure the financing. Plus it artificially increases values as going in blind can create an over inflated offer.

How We Can Fix It

Simple – get rid of the blind bid system and open up the process. Let each party know the Price, Deposit and Closing date of the other offers. This levels the playing field. There still will only be one winner and several losers, but atlas both parties would fairly know what they were up against, in a more transparent system and enjoyable process.

Good News

OREA is seeking feedback on whether it should push the provincial government into modernizing the real estate industry to make it more transparent. Australia is already doing this – and even opening up their MLS to sold prices (more on that in another video). In Melbourne, they littering gather infront of the house on a offer day and each party bids infront of each other. This is the most transparent way to know what you’re up against.

Jan 08
Love0
Most Expensive Condos of 2017

The Most Expensive Condo Buildings in Toronto for 2017

By Luxury Real Estate

30 Toronto Condos Sold For More Than $3.5 Million in 2017

It was a roller coster of a year for real estate prices in Toronto in 2017! In the housing market, things started out strong throughout the first quarter with a lot of the momentum pouring over from the little supply we saw in 2016 – but prices for homes quickly leveled off starting in April and continued throughout the remainder of the year. The condo market in general remained a “hot ticket item” and saw great growth throughout 2017… that too was true in the luxury condo market.

In our second year of covering sales in the luxury condo market, we saw a 36% increase in the number of condos selling over $3.5 million in Toronto – reaching 30 suites sold in 2017 vs the 22 sold in 2016! 

And it wasn’t just sales numbers that were up – prices were too.

How Much Was The Most Expensive Sale?

The most expensive condo sale recorded in 2017 was $11,500,000 (or $1900/sq.ft.) – nearly double the $6,000,000 record of 2016. The 6000 sq.ft. plus penthouse, located in Yorkville came complete with a private pool, hot tub, and private roof top terrace with panoramic views.

Most Expensive Condos of 2017

Which Luxury Buildings in Toronto Had The Most Sales? 

The Four Seasons Private Residences had the most amount of sales on this years list with 5 luxury condos being sold in 2017. The Residences At The Ritz Carlton and the Imperial Plaza came in second with two sales over $3.5 million in each.  In 2016, 36 The Hazelton, had two sales on the list, but none clearing $3.5 million in 2017.

Most Expensive Condos of 2017

The majority of the sales took place in the Annex/Yorkville neighbourhood, with 14 sales recorded. The C01 Waterfront came in second with 5, followed by Rosedale-Moore Park with 4 sales.

What Was The Sold Price to List Price Ratio?

The average sale, sold at 95% of its list price, meaning there was about 5% negotiating room.

Most Expensive Condos of 2017

What Were The Average Days on Market for Luxury Condos in Toronto?

On average it took about 75 days for these higher end condos to sell.  The fastest sold in 2 days and the longest was technically a hold over from 2016, sitting for 410 days!

Most Expensive Condos of 2017

How Much Was The Highest Maintenance in 2017 For these Luxury Condos?

The highest fee was $6135/month + Heat, A/C and Hydro but also included a private roof top terrace, pool, hot tub, and 4 parking spaces.! The lowest was $1,675.98 and did not include parking.

Most Expensive Condos of 2017

With Luxury Prices, Comes Luxury Taxes

The city took in their fair share of taxes from these high end condos! The average amount paid between the 30 was $22,841/year.  The highest of the lot was $64,758 and the lowest was $7,650!

Most Expensive Condos of 2017

THE TORONTO LIVINGS PODCAST

New Episodes Weekly

A Journey Through The City’s Diverse Neighborhoods, Cultures, And Of Course, The Food!

Sage Real Estate LTD., Brokerage

2010 Yonge St.,
Toronto, ON M4S 1Z9
O: 416-483-8000

Connect With The TorontoLivings Team