3483 replies to this topic

[Victoria Watcher]

So this penalty is designed to let you out of the sales contact between the firm date and the closing date?

Can you take us through it a bit more clearly?

When exactly is the three-day cooling off period? And what happens inside it?

If I have a guaranteed three days with no penalty on all my accepted offers, what’s to stop me from making 5 offers - on different properties - on one day? Having them accepted, then me taking three days to go through them, then rescinding 4 or all 5 of them?

Edited by Victoria Watcher, 23 July 2022 - 08:16 AM.

[DavidL]

So this penalty is designed to let you out of the sales contact between the firm date and the closing date?

Can you take us through it a bit more clearly?

When exactly is the three-day cooling off period? And what happens inside it?

If I have a guaranteed three days with no penalty on all my accepted offers, what’s to stop me from making 5 offers - on different properties - on one day? Having them accepted, then me taking three days to go through them, then rescinding 4 or all 5 of them?

The rescission period is three business days from the acceptance of the contract. During that time you have the right to rescind the contract unilaterally for any reason. If you exercise that right you will be obliged to pay a penalty of .25% of the contract price of the property-to the seller.

If your contract is conditional and you don't remove your conditions then you are collapsing the sale on that premise and there is no penalty payable. You do have a good faith requirement to try to remove your conditions however.

There is nothing stopping you from doing as you described with multiple properties. The penalty is supposed to discourage that but it likely won't. It's one of the obvious issues that was pointed out to government many times, and which they have chosen to ignore.

[Mike K.]

So …this achieves nothing?

[Victoria Watcher]

That’s still pretty muddy to me. So I will still submit “u conditional” offers, but have three days after acceptance to get out? But with that money penalty?

Edited by Victoria Watcher, 23 July 2022 - 10:04 AM.

[DavidL]

So …this achieves nothing?

Bingo. Except introduces some interesting options for gamesmanship and potential money laundering.

[DavidL]

That’s still pretty muddy to me. So I will still submit “u conditional” offers, but have three days after acceptance to get out? But with that money penalty?

Not sure how to make it any clearer. If you collapse the deal using the right of rescission you pay the penalty. If you collapse the deal because conditions aren't satisfied, and the conditional period can be whatever length you've negotiated, then you don't.

Bear in mind this was designed around the idea that all offers were unconditional and there was no opportunity for sober second thought if you felt you got caught up in the moment and made a bad decision.

[Mike K.]

Got it.

So long story story short, if you make an unconditional offer, you have three days to walk away, but you gotta pay 0.25% of the offer value.

[Victoria Watcher]

Wasn’t the whole idea to somehow reduce the number of or perceived necessity of unconditional offers?

I suppose it might do that. Maybe? I don’t know.

Silly.

It seems to me now an unconditional offer is much safer than it was before. So that might increase the number of unconditional offers.

Edited by Victoria Watcher, 23 July 2022 - 10:45 AM.

[spanky123]

Sounds like the whole thing is for naught as sales slow and hardly anybody is making unconditional offers out of necessity anymore.

[Victoria Watcher]

I’m glad the government is here to protect us.

[Victoria Watcher]

TD Real Estate Survey reveals 38% of Canadians are confused about what rising interest rates mean for them

 

 

 

The TD Real Estate survey also identified a lack of knowledge when it comes to other notable financial aspects tied to buying or owning a home:

• More than half of respondents (52%) aren't knowledgeable about a home-equity line of credit (HELOC) or how it differs from a mortgage
• One-in-three Canadians surveyed (33%), don't feel knowledgeable when it comes to how rising interest rates may affect their ability to renew their mortgage, while a quarter (26%) are surprisingly unaware of potential prepayment charges for selling their home before the end of their mortgage term
• Nearly 40% of respondents claim to not be knowledgeable about the difference between variable interest rates and fixed interest rates
• Of the prospective homebuyers surveyed, 27% admitted to not knowing or understanding many of the costs associated with buying a home, highlighting a sizable number of Canadians who lack important financial information, especially key as the real estate landscape continues to evolve
• Four-in-ten (40%) Canadians who do not currently own their home but say they are likely to buy a home within the next year are not knowledgeable about how the mortgage pre-approval process works.

 

https://www.newswire...-841758358.html

Edited by Victoria Watcher, 25 July 2022 - 07:17 AM.

[Mike K.]

But they’ll all go on Twitter, and criticize the housing industry.

[Victoria Watcher]

The City of Port Moody has signalled that it is contemplating the potential of lowering the level of density permitted around SkyTrain Moody Centre Station, and this appears to be a cause for concern for the provincial government.

 

 

https://dailyhive.co...y-bc-government

[LJ]

TD Real Estate Survey reveals 38% of Canadians are confused about what rising interest rates mean for them

 

 

 

The TD Real Estate survey also identified a lack of knowledge when it comes to other notable financial aspects tied to buying or owning a home:

• More than half of respondents (52%) aren't knowledgeable about a home-equity line of credit (HELOC) or how it differs from a mortgage
• One-in-three Canadians surveyed (33%), don't feel knowledgeable when it comes to how rising interest rates may affect their ability to renew their mortgage, while a quarter (26%) are surprisingly unaware of potential prepayment charges for selling their home before the end of their mortgage term
• Nearly 40% of respondents claim to not be knowledgeable about the difference between variable interest rates and fixed interest rates
• Of the prospective homebuyers surveyed, 27% admitted to not knowing or understanding many of the costs associated with buying a home, highlighting a sizable number of Canadians who lack important financial information, especially key as the real estate landscape continues to evolve
• Four-in-ten (40%) Canadians who do not currently own their home but say they are likely to buy a home within the next year are not knowledgeable about how the mortgage pre-approval process works.

 

https://www.newswire...-841758358.html

Sounds to me like there are a lot of Canadians who should be renters.

[Barrrister]

Fine educational system here. 

[Victoria Watcher]

Victoria’s housing strategy will get a distinctly average grade Thursday when the city’s annual review of the three-year plan is delivered to council.

 

The report makes clear the city had mixed results over the last year, the second year of a strategy that was implemented in 2019 to increase the supply and diversity of affordable and market housing.

 

It detailed the continued struggle with affordability, soaring home prices, rising rental and construction costs, record migration to the province and the spectre of inflation.

 

While the review noted the city made some progress on the rental front, it gained little ground in establishing more housing for young families, couples, singles and empty nesters who want to stay in Victoria.

 

“I think the bottom line is there is not enough housing for the people who already live here and the people who want to move here,” said Mayor Lisa Helps. She said while council may have approved more rental housing than ever before in 2021, the vacancy rate is still “heading in the wrong direction.”

 

“It’s a pretty dire situation for all forms of housing, and then of course the missing middle one is particularly concerning,” she said.

 

 

 

https://www.timescol...targets-5628287

Edited by Victoria Watcher, 27 July 2022 - 04:30 AM.

[Barrrister]

Surprise, Victoria cannot accommodate every person in the Province who wants to live here for rents cheaper than anywhere else in the Province.

[Mike K.]

It would help if we’d get on with scheduling the Harris Green rezoning public hearing. 1,500 guaranteed units in one swoop. What’s the hold-up?

[Barrrister]

1500 units and I am guessing that we have arranged for more GPs and extra hospital facilities for all these new people? 

[Victoria Watcher]

“I think the bottom line is there is not enough housing for the people who already live here and the people who want to move here,” said Mayor Lisa Helps. She said while council may have approved more rental housing than ever before in 2021, the vacancy rate is still “heading in the wrong direction.”





Why must we provide housing for “the people that want to move here”?

Edited by Victoria Watcher, 27 July 2022 - 07:12 AM.