So I got an email yesterday from a past client asking whether a shed is deemed to be a fixture and whether it should be deemed to be included in a real estate transaction or not.
I asked a few more things about her question and she told me that an employee of hers sold their home and decided to take that shed because it was not included in the agreement and in fact, they removed it before the Buyers came back for their “final inspection”, and now the Buyer’s a suing them for over $2,000 for the cost of the shed.
I asked her if the shed was there when the Buyer’s initially viewed the home and made their offer and apparently it was.
So I told her that in my opinion I believe the shed is deemed to be a fixture and should have been left behind but it would have to be up to a Judge. She went onto say that the shed was not actually fastened down to its platform and that the Sellers actually removed the screws which would in turn deem it a chattel rather than a fixture. Furthermore the shed in question was actually only worth $700 and that the claim being made against them is excessive.
At this point it also came out that neither the Seller or the Buyer was represented by a Realtor and that it was a “private transaction”. “For Sale By Owner”
Well well well. Surprise, surprise. Obviously my opinion of this situation is biased but isn’t it interesting when people take the duties and responsibilities of a Realtor so lightly and think that “these buggers” are overpaid and that they can handle the sale and or purchase on their own.
Not only do they have to go through the hassles of going to “Small Claims” court, time off work and the possibility of losing. Did they actually really save any money at all in light of the property not being properly exposed to the market place?
A professional Realtor on either end of this situation could have prevented this entire mess.
It reminds me of the old saying, “If you think the services of professional are expensive, try the services of an amateur.”
Feel free to comment on this article and have yourself a great day!
Well the local Cambridge real estate mareket is still hot. The MLS has taken on 498 new residential listings and has reported 271 sales.
Interest rates are holding steady. Five year money is available for as low as 3.79% for five years.
Purpose built multi-unit properties are still hot. Some buildings selling with a cap rate as low as 5%.
Our new 40 unit condo propject in East Galt (10 Cheese Factory Rd) is starting to gain momentum. Many interested parties. Prices start at $187,100 for a 3 bedroom unit. If you know somebody looking for a great place to start as a first time home owner or investor, please make sure they check this project out. We'll be open this weekend both Saturday and Sunday from 2 to 4pm.
If you have any real estate or mortgage questions, don't be shy. Karen and I are here to serve you.
I've been involved in a few multiple offers this week which is a clear sign Buyers are out numbering Sellers. Especially in the multi-unit residential market. Purpose built units are getting some crazy money. If the building's in good shape, some investors are willing to settle for as little as a 5% cap rate.
One thing you should be careful on though is including the right clauses in the agreement of purchase and sale. Clauses such as getting a fire inspection, or asking the Seller to allow you to verify the legality of the use of the building ie: if it's a fourplex, is it's use legal. I had one offer where I was representing the Buyer and of course I included the required clauses and believe it or not the Listing agent scratched them out!
Sure as a Seller, you want to avoid as many conditions as possible, but believe me, these issues will only rare their ugly heads at closing, or NOt closing for that matter and land you in a pile of legal issues.
So if you're in the market for a multi-unit building, give me a call and put my 23 years experience to work for you.
Enough of that. I just want to wish you a happy "Victoria Day" long weekend. It looks like the weather is improving. Be safe, and I'll talk to you again soon
Paying your mortgage off the traditional way takes 25 to 40 years and costs about TWICE the purchase price of your home. Here are some effective ways to pay off your mortgage sooner, build equity faster and save thousands in interest.
• Change your payments. Simply increasing your payment frequency to bi-weekly or weekly costs nothing and can save thousands of dollars over the life of your mortgage. If you can afford to pay a little extra, consider accelerated bi-weekly or weekly payments—these are equivalent to making one extra monthly payment per year which results in substantial savings. Or you can make a lump sum payment which can realize savings several times as great over the life of your mortgage.
• All-in-one mortgage. Instead of making extra payments, consider switching to a mortgage that pays off the principal faster without costing you anything more. All-in-one mortgages combine a line-of-credit mortgage with a chequing account to reduce interest costs and pay off your mortgage in as little as half the time, without changing your spending habits. You deposit your pay into the all-in-one account and pay bills as you normally would. While you’re not using your money, it’s used to reduce your daily loan balance. Over the life of the loan, this can save hundreds of thousands of dollars in interest!
• Merged account mortgage. If you’d rather not refinance your existing mortgage to switch to an all-in-one mortgage, consider a merged account mortgage. This system uses your existing mortgage (any type of first mortgage will work), an advanced line-of-credit (ALOC), and specialized software that makes a connection between your bank account, ALOC and mortgage. Each time you deposit income into your account, the software automatically generates an interest cancellation on your mortgage. The result is that a 30-year mortgage can be paid off in about 8 to 11 years, with no change to your lifestyle or refinancing of your existing mortgage.
To help decide which of these options is the best way for you to become mortgage-free sooner, call us today for a free analysis at 1-877-904-9222 or apply online at http://www.mrfinancial.ca