New Tenant & Landlord rights and responsibilities are Proposed by the Federal Government

Did you know about the proposed changes? They propose to change time-lines, create a a reporting duty and a web portal for landlords. Below are the highlights:

• Landlords will be required to disclose a clear history of apartment pricing so renters can bargain fairly.
• Renters will get credit for on-time rent payments. Landlords, banks, credit bureaus, and fintech companies will need to disclose this to make sure that rental history is taken into account in a credit score.
• Landlords to use a web portal to generate notices to end tenancy for personal occupancy.
• Increasing notice period for eviction for personal use – currently 2 months for buyers moving in and 4 months for renovation. We don’t know the proposed new length.
• Increase tenant dispute period from 15 to 30 days. If selling a tenant occupied home, you should be checking with the RTB whether a tenant has filed a dispute on the appropriate day.
• If a landlord gives notice for vacant possession, intending they or a close family member will occupy the home, including when they sell their home and the buyer wants to move in, they must live in unit for one year rather than 6 months.
• Changes will also prohibit evictions for personal use in rental buildings with five or more units, and evictions with the intention of converting rental units for non-residential uses. 
• Proposed legislative changes will restrict rent increases when a tenant adds a child under 19 to their household — meaning landlords can no longer increase rent if their tenant has a baby, for example. “No rent increases above the annual allowable rent increase will be permitted even if there is a term in the tenancy agreement that states rent will increase with new occupants,”.
• Reducing wait-times and adding new guidelines and flexibility around problem tenants and increasing the ability to remove them quickly and effectively at the Residential Tenancy Branch.

Always as a landlord, get everything in writing!! Happy Landlording.

Stay tuned for updates.

Provincial Legislation and Zoning Changes in the District of North Vancouver

Do you know that many lots are proposed to be rezoned for “up to 4 or 6 units”? There are four neighbourhoods that could drastically start changing soon. The DNV has singled out four locations which will be top priority and include a bulk of the density:

1. Lions Gate/Lower Capilano – Pemberton, Norgate, Pemberton Heights.
2. Lynn Valley – surrounding the core of Karen Magnussen and the Shopping Plaza.
3. Lynn Creek (Lynnmore South) – Near Main Street, along Mountain Hwy to Keith Road.
4. Maplewoods – Between Dollarton Hwy and Mt Seymour Parkway at Riverside Drive.

Is it time to say good bye to neighbourhoods with an abundance of smaller homes like Norgate and Pemberton? This area shows some of the highest number of proposed SSMUH lots even on lots as small as 4000 square feet.

The province requires that all relevant zoning bylaws must be updated by June 30, 2024. Traditional Single-Family zones and housing types will be replaced with Small Scale Multi-Unit Housing (SSMUH) which are 3, 4 or 6 units on one lot, with no requirement to included parking for sites with 6 units. How will this be accomplished? Sites for 4 and 6 SSMUH’s will have the ability to build three-stories high. In the DNV, over 10,000 lots are proposed to be rezoned to 4 units and near 1,300 are proposed to be 6 unit lots. The highest concentration of 6 unit lots are in Lions Gate & Lynn Valley.

How many homes does the Province and District expect to add to the DNV? Remember the DNV is separate from the City of North Vancouver. Based on the DNV’s proportion of the province’s population, that translates to building roughly 2,300 new SSMUH units and 1,800 new Transit Oriented Area (TOA) units, respectively, over the next 10 years.  

Did you miss the DNV’s public information meeting on the provincial housing legislation? Watch it here: https://youtu.be/jCMYAXIyK6Y

Are you thinking of utilizing this new zoning for your lot but don’t know where to start? Thinking of selling? Thinking of buying in these areas? Have a comment? Let me know and stay tuned for additional updates.

Contact Colleen Shorter 778-808-7117.

Coming Home to 1502 123 E Keith Road, North Vancouver

Are massive sweeping views your thing with a WalkScore of 95? Then it’s as easy as 123 Keith Road! Situated of the 15^th floor (one down from the top) and built on a plateau at Victoria Park, this property can see as far as the eye can go… Metrotown, Vancouver Islands, Downtown Vancouver, across West Vancouver, the Lions Gate Bridge, Vancouver Harbour and up to the North Shore mountains including the famous twin Lions, up Lonsdale Avenue and even over to SFU. You will get large vast water views with passing cruise ships, tankers and other vessels, massive twinkling city views at night and open mountain views. The night time views are spectacular and so are the sunsets.

Even on a gray day you will be uplifted by the open feeling of suite. This concrete built apartment is special in many ways. First there are only 2 suites per floor, being a total of 32 suites for the entire building. Each suite will encompass an entire half of the building (hence the sweeping views). You only have one neighbour but much of the space is separated by the core building elements being the elevator and staircase.

The apartment was built across from Victoria Park, a very popular and much desired location. Walk out the front door of Victoria Place and into the park loaded with heritage value for 100 years. Victoria Park is a walker’s paradise being located on the Green Necklace Pathway which will take you on a loop around various elements of Lonsdale neighbourhoods. This 3.9-hectare urban park includes a lawn and trees, paths, a 1923 cenotaph, a 1915 granite horse trough, and a Cold War air raid siren. The horse trough was used by horses pulling loads up Lonsdale Avenue! The park is also a community asset to host annual Remembrance Day ceremonies.

The location is part Lower Lonsdale but is located at the Central Lonsdale border so you can take advantage of the many shops and restaurants within walking distance either way. Don’t like to walk? There is a bus stop not even half a block away at the corner of Keith Rd and Londsale Avenue. How close is that? The Walkscore is almost off the chart being 95, and a high transit and bike score also: https://www.walkscore.com/score/123-keith-rd-e-n-vancouver-bc-canada

There are doctor’s offices, several churches, various shops and eateries. Trevor Linden Club 16 – 2 blocks away, Andrews on 8^th is a popular place to gather for coffee, micro-breweries and you are 6 blocks to the Lonsdale Quay Market and the Shipyards where there are many activities for families and adults. Some would say that you are close enough to the action but far enough away to enjoy some peace and quiet and greenery from the park. Commuting is a breeze since you are very close to the Seabus.

What do you get inside other than great views? Beautiful landscaped grounds surround a well-kept building where the council is on top of any needed repairs. There are two large lobbies, one at front and also at the back. Your visitors can use either one. There are 4 visitor parking stalls in the front and 7 at the back. This friendly building is made up of various age groups but seems to cater to the older 50 plus crowd. There are weekly “Happy Hour” gathering for residents to enjoy.

The spacious suite near 1200 square feet has large balcony space both in the front (off the living room/kitchen) and rear (off the primary bedroom). The massive circular balcony is great for entertaining – with glass window enclosures that open for when you want to barbecue and allow for a longer entertaining season. There is a cozy gas fire place in the living room and a laundry room with a sink and storage plus additional storage area in the back closet that leads to the emergency staircase. The primary bedroom en-suite includes a bathtub plus separate shower, and has natural light. Did I mention that the suite has bay windows in the kitchen and second bedroom? There is also a surprisingly large locker approximately 4 feet x 12 feet and 2 side-by-side parking stalls that have wiring in place to facilitate EV charging equipment.

Contact Colleen for a private viewing 778-808-7117.

Cates Landing – Beach Vibes

409 3825 Cates Landing Way, North Vancouver.

Cates Landing

Cates Landing in North Vancouver is a very special property, built along the shores of the Burrard Inlet and next to Cates Park. This property is a free-hold-strata and not on leased land. There are beaches and trails along the water’s edge that lead to Cates Park. This is a quiet location perfect for relaxation, meditation, dog walks, picnics – but there is also the water element – from the shores you can launch your kayak or paddle board. Cates Park has a boat launch.

Near to this location is Dollarton Mall, Deep Cove, Seymour Golf Course and Mt. Seymour so there are many activities to keep you active. There is so much this location has to offer for those who love the tranquility of nature and water.

This property is a south-facing penthouse (4th floor) which capitalizes on the unobstructed water views and sunshine. You will find full water views from every window. Steeped in luxury and built by the family of Polygon Homes Ltd. a local developer, the development has a guest suite, dog/bike wash, a well equipped gym and on-site caretaker to keep the property well run.

This particular condo unit has two generous sized bedrooms and two bathrooms each of which are en-suites to their respective bedrooms. In floor radiant heat, 9 foot ceilings, quartz counters, built in appliances and a natural gas cook-top. the primary en-suite has double sinks, a large shower and soaker tub for after those long beach days!

There is ample storage in the storage locker which is accessed within the building on the first floor and two secure side-by-side parking stalls. Electric vehicle? No problem, there is already infrastructure that provides access to install your charging system. Two pets are allowed. Here at Cates Landing it’s all about the water views.

Contact me if you want to live at Cates Landing.

The Advantages of Co-Ownership of Homes: Building Together, Thriving Together

Home ownership is a dream cherished by many, but the traditional path to buying a house can be daunting. Rising property prices, hefty down payments, and the burden of a mortgage can deter individuals from achieving this goal. However, there is an alternative path to home ownership that offers numerous benefits: co-ownership of homes. Co-ownership involves sharing the responsibilities and costs of owning a home with one or more people, and it comes with a variety of advantages that make it an attractive option for many.

1. Shared Financial Responsibility

One of the most significant advantages of co-ownership is the shared financial responsibility. Buying a home on your own can be financially overwhelming, but when you co-own a property, you can split the costs of the down payment, monthly mortgage payments, property taxes, insurance, and maintenance expenses. This shared financial burden can make home ownership more accessible and affordable.

2. Increased Buying Power

Pooling resources with co-owners can significantly increase your buying power. Together, you may be able to afford a larger, more desirable property in a better location than you could individually. This enables co-owners to invest in a home that better suits their long-term needs and preferences.

3. Lower Monthly Expenses

By sharing the costs of home ownership, co-owners can enjoy lower monthly expenses compared to those who go it alone. This can free up money for other financial goals, such as saving for retirement, education, or vacations. Lower expenses also mean less financial stress, which can lead to a higher quality of life.

4. Shared Maintenance and Repairs

Home ownership comes with ongoing maintenance and repair responsibilities. When you co-own a home, you can divide these tasks among co-owners, making them more manageable. Whether it’s mowing the lawn, fixing a leaky faucet, or repainting a room, the workload is spread out, reducing the time and effort required from each individual.

5. Enhanced Social Support

Co-ownership can foster a sense of community and social support. Living with co-owners can provide companionship and shared experiences, reducing feelings of isolation that can sometimes accompany solo home ownership. Furthermore, co-owners can rely on each other for help, whether it’s for childcare, pet care, or assistance during emergencies.

6. Investment Opportunities

Co-ownership can also serve as an investment opportunity. If property values increase over time, co-owners can benefit from shared equity growth. Additionally, if one co-owner decides to sell their share, it can provide an opportunity for others to buy them out and gain a larger stake in the property.

7. Flexibility and Diverse Ownership Arrangements

Co-ownership allows for various ownership arrangements, catering to the specific needs and preferences of the individuals involved. Common models include joint tenancy, tenants in common, and limited liability companies (LLCs). These arrangements can be tailored to suit the financial and legal needs of co-owners.

8. Environmental Benefits

Co-ownership can contribute to environmental sustainability. When multiple individuals share a home, the overall ecological footprint is reduced. Fewer homes mean less land development, lower energy consumption, and decreased resource consumption, all of which can benefit the environment.

Conclusion

Co-ownership of homes offers a multitude of benefits that make home ownership more accessible, affordable, and enjoyable. It provides shared financial responsibility, increased buying power, and lower monthly expenses. Moreover, co-owners can enjoy a sense of community and social support, along with investment opportunities and environmental benefits. By sharing the responsibilities and rewards of home ownership, individuals can achieve their housing dreams while building stronger connections with their co-owners and the community at large. Ultimately, co-ownership is a smart and rewarding path to consider for those looking to own a home without the full burden of sole ownership.

Navigating Foreclosure in British Columbia: Creative Tips to Preserve Your Home

Facing foreclosure in British Columbia, Canada, can be a daunting experience, but homeowners have various creative options to explore before relinquishing their property. From renting out your home to getting roommates, here are some innovative tips to help you navigate through the challenges of foreclosure and potentially retain ownership of your property. Remember, foreclosures can happen for many reasons but they usually come with a huge amount of stress which can cause you to make bad decisions or indecision. Often taking steps early to prevent the foreclosure is the key.

1. First and Foremost, Focus on Making Mortgage Payments

The most important thing is to pay your mortgage or you will surely go into foreclosure. Work closely with your lender on missed payments and create a plan to get on track. No matter what you do, you must get back on track with mortgage payments. If available you can use the skip-a-payment-option for at least one month.

2. Renting Out Your Home

One practical strategy to alleviate the financial strain of a potential foreclosure is to consider temporarily renting out your home and living somewhere else that is more affordable. By becoming a landlord, you can generate rental income that may help cover mortgage payments and other related expenses. Ensure that the rental income is sufficient to meet your financial obligations and consult with a real estate professional to navigate the legal aspects of renting out your property.

2. Getting Roommates or Home-Stay Students

Another option to increase your income and offset the costs of home ownership is to welcome roommates into your residence. Renting out spare rooms can provide a steady stream of income that can be applied towards your mortgage payments. Make sure to screen potential roommates thoroughly, create clear rental agreements, and establish house rules to maintain a harmonious living environment.

4. Consult with a Housing Counsellor

Seeking advice from a housing counsellor in British Columbia is crucial when facing foreclosure. These professionals can provide guidance on available resources, government programs, and potential solutions tailored to your specific circumstances. The British Columbia Non-Profit Housing Association is a valuable resource that can connect you with local housing counsellor who can offer support and advice.

5. Consider a Mortgage Modification or Refinancing

Consult with your lender about the possibility of modifying your mortgage terms or refinancing. Mortgage modification involves renegotiating the terms of your existing loan, while refinancing allows you to replace your current mortgage with a new one, often with more favourable terms. Extending the amortization, if possible, might help you get some relief. Be aware of any associated costs and carefully evaluate whether these options are viable for your financial situation. If the payments are simply too much for your current financial situation, you may have to consider selling your home and finding a smaller and more affordable mortgage option. This will at least preserve your equity, financial-credit score, and possibly keep you in the real estate market as a home owner. Remember the key is to act early so that you can keep control of the situation before the bank steps in.

6. Consider a Second Mortgage or Home Equity Line of Credit

By getting a second mortgage or home equity line of credit you may be able to pay off your arrears. A second mortgage is often through private lenders and will likely be at an interest rate higher than your first mortgage – but this should be thought of as a temporary solution to get your through. Like a second mortgage a home equity line of credit will be registered against your title to your property. There will be some costs involved. This should be a temporary plan and you should have a longer plan in place.

7. Explore Legal Options

Consulting with a legal professional specializing in real estate law can provide valuable insights into your rights and potential legal avenues. They can guide you through the legal implications of foreclosure, advise you on possible defences, and represent your interests if necessary.

8. Speaking to a Real Estate Advisor can also be Helpful

Speaking with a real estate professional can help you determine your current homes’ value. It can be helpful to know the current market value of your home to determine your equity and ability to sell in the present market, if needed. You can also explore options with your agent on lower cost home alternatives. Knowing your financial position and options is key to creating a plan.

Conclusion

Facing foreclosure in British Columbia is undoubtedly a challenging situation, but homeowners have creative options to explore before surrendering their homes. From renting out your property to seeking roommates, exploring alternate mortgage options, and consulting with professionals, there are avenues to help you navigate through this difficult time. By staying informed, seeking support, and acting early, you can make informed decisions and work towards a more stable financial future.

You can contact Colleen for a complimentary Market Evaluation at 778-808-7117.

Downsizing for Seniors: A Practical Guide to Simplifying Your Life

Introduction

As seniors enter their golden years, many find themselves faced with the prospect of downsizing. Whether motivated by financial considerations, health concerns, or simply a desire to simplify their lives, downsizing can offer numerous benefits for seniors. This process involves moving to a smaller, more manageable living space and decluttering one’s possessions. In this article, we will explore the reasons for downsizing, the steps involved, and the potential advantages it can bring to seniors.

Why Downsizing Matters for Seniors

1. Financial Freedom: One of the primary reasons seniors consider downsizing is the potential for substantial cost savings. A smaller home typically means lower mortgage or rent payments, reduced property taxes, and decreased utility bills. This newfound financial freedom can help seniors better allocate their resources for retirement, healthcare, and other essential expenses.
2. Reduced Maintenance: A smaller living space usually requires less maintenance. Seniors can say goodbye to hours spent mowing lawns, shoveling snow, or performing extensive home repairs. With fewer responsibilities, they can focus on enjoying their retirement years and pursuing hobbies and interests.
3. Enhanced Safety: As we age, our mobility and physical capabilities may decline. Smaller homes are generally more accessible and easier to navigate, reducing the risk of accidents. Seniors can also consider features like single-story living or installing grab bars and ramps for added safety.
4. Emotional Well-being: Downsizing often involves decluttering and letting go of possessions that may hold sentimental value but are no longer practical. This process can be emotionally challenging, but it can also be liberating. Seniors may find a sense of relief and peace in simplifying their surroundings and creating a more organized living space.

Steps to Downsizing Successfully

1. Set Clear Goals: Before embarking on the downsizing journey, seniors should define their objectives. This might include financial goals, like reducing housing expenses, or practical goals, like finding a home with better accessibility features.
2. Create a Downsizing Plan: Develop a systematic plan for decluttering and organizing belongings. Start with one room at a time, sorting items into categories such as keep, donate, sell, or discard. Consider seeking help from family members or professional organizers if needed.
3. Prioritize Essentials: Identify the items that are truly essential and bring joy or utility to your life. Focus on keeping those and let go of duplicates, items you haven’t used in years, or things that no longer serve a purpose.
4. Explore Housing Options: Research different housing options suitable for seniors, such as downsized homes, apartments, or retirement communities. Consider factors like location, amenities, and affordability.
5. Get Professional Advice: Consult with financial advisors, real estate agents, and legal professionals who specialize in senior downsizing. They can provide valuable guidance on housing choices, financial implications, and legal aspects like estate planning.
6. Stay Connected: Downsizing can sometimes lead to feelings of isolation or loss of community. Make an effort to stay connected with friends and family, and consider choosing a new living situation that facilitates social interactions.

Advantages of Downsizing for Seniors

1. Financial Security: Downsizing can free up resources for seniors to enjoy a more comfortable retirement, travel, or invest in their health and well-being.
2. Less Stress: A smaller living space and reduced responsibilities can lead to lower stress levels, better mental health, and improved quality of life.
3. Improved Health and Safety: Accessible, well-designed spaces can reduce the risk of falls and accidents, promoting better health and safety for seniors.
4. Simplified Lifestyle: Downsizing encourages a simpler, more streamlined lifestyle, making it easier for seniors to manage their daily routines and enjoy their hobbies.
5. Environmental Benefits: A smaller home often has a smaller carbon footprint, contributing to a more sustainable lifestyle.

Conclusion

Downsizing can be a transformative process for seniors, offering financial freedom, improved well-being, and a simpler, more manageable lifestyle. While the transition may seem daunting, careful planning and professional guidance can make the journey smoother. By taking the necessary steps and focusing on the potential advantages, seniors can embrace downsizing as a positive step towards a fulfilling and comfortable retirement.

If you are thinking of downsizing, contact me today. I have some great contacts to help you get started and can provide you with my Home Prep Guide. Colleen Shorter 778-808-7117.

1370 Hope Rd, North Vancouver

The Golden Plum House!

Well Presented Homes Get Attention!

Sold in 9 days. This home located in the Pemberton neighbourhood of North Vancouver, near Marine Drive and Pemberton Plaza was proof in the pudding that staging helps the sale.

Well kept by the original owners this project had a great starting point to work with. This home is a work-horse, meaning that it can pull double duty, it can house a large family, provide income from the 2 bedroom suite. It’s flexible layout is a dream. Having a spacious bedroom on the main floor along with a full bathroom allows for in-laws, aging parents, or guests to live comfortably. Seven (7) bedrooms and (5) full bathrooms total, there is room for everyone. Being on a small foot print, a 3,960 square foot lot, means less yard work – yet there is enough space to have a patch of grass, vegetables and some fruit trees – not to mention the 2 car garage. An overall superb multi-generational home and good solid investment.

I couldn’t be more impressed with the outcome of everyone’s efforts in the preparation of this home. It was sparsely furnished and recently vacated with dark floors and dark cabinets so we brought in our home designer to get it staged (Bludog Staging & Design) and brightened up. First there was a big overall clean and scrub, then removing many cluttering items, rearranging furniture and tending to better placement. Stickers came off walls, rugs removed and added where needed. We were able to use some pieces the owner had but it was important to create a fresh updated look and bring in the light. Some curtains and rods came down, and bright white went up, blow-up beds came in with all with fresh linens and throw pillows and blankets. Art work was also key using neutralizing color schemes of white, gold, beige and greens which tied-in all the other elements together. Crisp white bathroom mats, towels and other fresh pieces. Fresh white lilies in glass vases not only brought the place alive but the sweet smell of a summer’s day floated tirelessly throughout the home. Our goal was a very warm inviting family home with soft natural elements.

Co-Listing this home with Nancy Chen of Royal LePage Sussex was a remarkable experience. Nancy is extremely hard working with a natural artist ability. She brought in some of her own pieces and worked diligently on the video editing and other marketing materials to create a work of art. In fact it was Nancy who dubbed the home “The Golden Plum House”! Visit my YouTube Channel, Colleen Shorter: @ColleenShorterRealtor to see the video! I credit the fast sale at a great price for the neighbourhood to the efforts of staging and home preparation.

Want to know what this home sold for? Want to know what your home could sell for? Want to discuss how I can help with staging your home for sale? Contact Colleen Shorter 778-808-7117.

The Best Time to Sell a House in British Columbia, Canada

Selling a house can be an important decision, and timing can play a crucial role in maximizing your property’s value. In the beautiful province of British Columbia, understanding the local real estate market and identifying the optimal time to sell your house is essential. This article aims to provide you with insights into the best time to sell a house in British Columbia, helping you make an informed decision and achieve the best possible outcome. With that said the very best time to sell a house is when YOU are ready.

Spring: Embracing the blooming real estate market spring, specifically the months of March, April, and May, is widely regarded as the prime selling season in British Columbia. During this time, the weather improves, the days grow longer, and the lush landscapes create an appealing backdrop for potential buyers. Many home buyers actively begin their search during the spring months, which leads to increased demand and competition in the market. As a result, selling your house during spring can often result in faster sales and potentially higher offers.

Summer: capitalizing on the warmth and outdoor appeal summer, from June to August, is another favourable time to sell a house in British Columbia. The region experiences pleasant weather, allowing potential buyers to explore properties more comfortably. The longer days provide ample natural light to showcase your house’s features, creating a welcoming and inviting atmosphere. It’s a great time to sell a home with a pool. Families with children often prefer to move during the summer months, aligning with the academic year’s end. Furthermore, the summer season coincides with vacation time for many, enabling potential buyers to dedicate more time to house hunting. It’s the third best time of the year to sell.

Fall: Harvesting opportunities in a balanced market the autumn months of September, October, and November can present a unique opportunity to sell your house in British Columbia. The market tends to stabilize during fall, with a balanced supply of listings and motivated buyers. The summer rush subsides, and serious buyers continue their search, often looking for a property before the winter arrives. The fall foliage adds charm to the surroundings, enhancing the appeal of your property. Sellers may find that the decreased competition and the presence of motivated buyers can result in a higher chance of receiving competitive offers.

Winter: Navigating a less active market winter, from December to February, generally experiences a slower real estate market in British Columbia. The cold weather, shorter days, and holiday festivities often shift the focus away from house hunting for many potential buyers. However, it’s worth noting that some buyers may be more serious and motivated, aiming to take advantage of potentially lower prices and reduced competition. If you choose to sell your house during the winter, it’s crucial to create a warm and inviting atmosphere, emphasize your property’s unique features, and price it competitively.

Determining the best time to sell a house in British Columbia requires a careful analysis of various factors including the how the market is performing. While spring and summer offer favourable conditions with increased demand, fall can provide a balanced market with motivated buyers. Winter, though slower, can still yield opportunities for sellers who strategize effectively. It’s important to consider your individual circumstances, local market conditions, and consult with real estate professionals to make an informed decision. By understanding the nuances of the British Columbia real estate market, you can position yourself for success and achieve optimal outcomes when selling your house.

When Developers file for bankruptcy/receivership/creditor protection

I thought I would write an article in response to the recent news about Coromandel Properties Ltd., a Vancouver development company that is seeking creditor protection. According to the news, Coromandel Properties Ltd. has a massive portfolio of unfinished real estate projects citing more than $700 million in outstanding debt. Questions that I have been getting are “What about the purchasers who bought presales and what’s going to happen to their deposits”? First, buying a presale, or any real estate transaction in general is never without risk. Each opportunity comes with its own set of risks.

Buildings Pictured Not Affiliated with Coromandel Properies Ltd.

Let’s look at the deposit question. The Real Estate Development Marketing Act (REDMA) is legislation that applies to Developers who market in BC. The legislation sets out various things the developer must do to market their property to purchasers and Division 5 sets out the rules around deposits. Further the British Columbia Financial Services Authority (BCFSA) regulates real estate services including developers through various rules and policy statements.

Sec 18 of REDMA says a developer who receives a deposit from a purchaser in relation to a development unit must place the deposit with a brokerage, lawyer, notary public or prescribed person who must hold the deposit as trustee in a trust account. The trustee holds the deposit for the developer and the purchaser not as an agent for either of them and must not release the deposit except upon certain criteria as described in REDMA.

A developer is not allowed to access the money to use as they see fit, but they can access it to use for the developers own purpose if they enter into a deposit protection contract. The purpose for the use of the deposit money must be related to the development property including the construction and marketing of that development property. A deposit protection contract indemnifies an insured against the loss of the deposit money. What I am trying to say is that purchasers deposits are regulated and protected and can be returned in certain circumstances, for example the development isn’t built, completed, or if there is a bankruptcy and the court orders their return.

This is little comfort to a purchaser who may have purchased a unit months/years previous and has to go back into a market where prices have risen. Also, it takes time to go through receivership and during that time purchasers are left in limbo. The situation here with Coromandel Properties Ltd. is at the early stages and its difficult to say how this will end. They have several properties in different stages of development.

Regardless, when you are purchasing a presale there will be risk. It is wise that you read the Disclosure Statement, Amendments and contract or have a professional like myself do it for you. I worked for a large real estate developer in the legal department and my primary role was to draft disclosure statements, amendments and review all particulars involved.

Want more information? Read about a similar situation, Murrayville House in Langley. Where the developer mismanaged funds and went into receivership. The court decided that the developer could not complete on the transactions because they wouldn’t obtain enough money and the court ordered deposits to be returned and the developer resell the units at a higher, now market price. Buyers were unable to buy again as the market prices had increased.

Murryville House – Forjay Management Ltd. v 0981478 B.C. Ltd., 2018 BCSC 527 (CanLII).