NYC Real Estate Buyers Guide 2011

First things first: do I want a Coop or Condo?
Cooperatives
Cooperative apartments are more common in New York City than in any other city in North America. Over 70% of New York City apartments available for purchase are in cooperative buildings, which means less than 30% are condos. Because co-ops are more strict in terms of subletting and there is an extensive board approval process needed to purchase, they are less expensive by 20-30%. However, there are prestigious co-ops on Central Park West, Fifth Avenue and Park Avenue that command some of the highest prices of all apartments in the city. In cooperatives, the individual owners do not actually own any real property: they own shares in a corporation that owns the buildings/s that the apartments are part of. Share amounts for each owner are determined by apartment size, exposure, views and floor level, and that determines the monthly maintenance. At closing, resident owners receive a stock certificate and a long-term proprietary lease, rather than a property title or deed. Advantages of buying a coop: 1. Less cost per square foot. 2. Usually lower closing costs. 3. More property to choose from. 4. The Board of Directors has the right to “approve” or “reject” any potential buyer, to give them control over who their neighbors are. The board, elected by all of the

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tenant-owners of the co-op, interviews prospective buyers. There is more sense of community in a co-op. 5. A portion of the maintenance is tax deductible. The amount accounts for an owner’s allocated portion (by share) of the real estate taxes as well as the interest portion on the building’s underlying mortgages payments. Disadvantages of buying a coop: 1. Much more thorough and rigorous board approval process for buyers, both when you buy and when you sell. When you sell, your prospective purchasers must go through the same process as you when you bought the coop. 2. Down payment amount is typically at least 20%-25%, and sometimes more. 3. Subletting may be restricted or disallowed. Keep in mind that most apartments for sale in Manhattan are Co-ops. Prior to beginning your search, you should know what financing thresholds you will be able to qualify for, including: 1) down payment you will have; 2) the portion of your monthly income that will go to your housing payments and other monthly debt service (known as your “debt to income ratio”); and the liquid assets you will have after you close on your sale. Your Holmes Team agent can provide you with more information and for the unique guideline for every co-op of your interest.

Condominiums
A condominium apartment is real property. You receive a deed and title and closing, and you truly own a piece of real estate. Owners are responsible for paying their own real estate taxes and property insurance (not payable individually in coops). In addition, there is a monthly common charge used for the upkeep of the building, including staff salaries and building maintenance, which is not tax deductible unless it is an investment property. The greater the number of amenities, the higher the common charge. Advantages of Buying a Condo: 1. Financing is flexible. There are usually no restrictions, except those imposed by your bank. You can finance up to 90% in some cases. 2. Renting your unit is generally allowed. That's why condos are the favorite choice for investors.

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3. The application process for buying a condo is quicker and simpler than for a coop, with the chance of rejection minimal. If the board rejects a buyer, they have to buy the apartment themselves. This is called exercising their “right of first refusal” to buy the property. Generally, that doesn’t happen.

Disadvantages of Buying a Condo: 1. There are fewer condos to choose from. 2. They are more expensive; the extra freedom and smaller supply translates into higher cost. 3. Since condos have a greater number of investor units and higher turnover, condo owners know fewer of their neighbors. Banks can offer terms that are not as attractive to condo buyers because of lower owner occupancy. 4. Your Holmes Team agent can guide you to your condo, if that's your choice.

The Buying Process
Buying an apartment in Manhattan can be a daunting task, but with the right knowledgeable and personable broker, the experience can become fun, enlightening and rewarding. Here are the steps you should expect: 1. (Recommended): Choose one Real Estate Agent to work with. Choose the agent you feel the most comfortable with and work with that agent exclusively. Your loyalty to your agent avoids confusion and duplication of effort while securing a partnership that works on your behalf no matter how long it takes. If you choose to work with The Holmes Team, we will guide you through the entire process. You will receive a Comparative Market Analysis for any property you would like to make an offer on, to determine whether the property is priced right. 2. Talk to a Mortgage Banker or Broker - Your agent at the Holmes Team can recommend the right professional. Before looking at properties, you must know what you can afford. Based on your financial profile, s/he can quickly determine what you can spend and how much you can borrow to finance your new home. There is no cost or obligation to you for this service until you actually apply for a loan.

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3. Retain an Attorney - Brokers in New York City do not prepare contracts. You must hire a real estate attorney. It is important to hire an experienced attorney whose specializes in the laws of New York City real estate (in residential coops, condos, townhouses). Your attorney will review the contract, the building’s financial condition, the board minutes and the building’s by-laws. 4. Look at Properties - Most buyers look at an average of 15-25 properties prior to making their purchase. When the inventory is low, you won’t be able to see as many properties that match your search criteria and budget. Your Holmes Team broker will schedule as many appointments as possible at places that meet your criteria. Keep in mind that some apartments have limited showing times, and that the best properties get snatched up quickly. Try to be as flexible as possible with your viewing schedule. 5. Make an Offer - Once your broker finds you the right property, get ready for the thrill of buying. Offers are made verbally in New York City and then in writing. A bid or offer will be placed through your Holmes Team agent to the seller or the listing agent. The seller may make a “counter offer” and begin a negotiation process until an agreement is reached about the price and terms. The negotiating skills of your Holmes Team agent are top in the industry. Their expertise and product knowledge will give you an edge in getting an accepted offer within your satisfaction. 6. Sign the Contract - Once your attorney concludes that the contracts and property conditions are satisfactory, you will be ready to sign the contract. At this point you will generally deposit 10% of the sales price into the sellers’ attorney escrow account. Remember that until the seller has counter-signed the contract, s/he is still free to entertain and accept other offers. 7. Gather your Financial Documents and References - For both your loan application and your board application (if applicable), you will need to supply detailed financial information. Most common are 2-3 years of tax returns, bank and investment statements, business references, and personal reference letters. The Holmes Team will help you though the process. 8. Obtain Financing - Your Holmes Team agent will help you to supply your financial information as required by your bank. Your bank will review your qualifications, appraise the property, and when the loan is approved issue you a “bank commitment letter.”

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9. Submit Board Package - Once your package has been prepared, a Holmes Team agent will review it prior to submission. Only then will your package be submitted for board review. Expect review time to last 2-6 weeks. 10. Meet the Board of Directors (co-ops only) - The managing agent will schedule an interview for you to meet the board. Some boards meet only once a month, so try to make yourself available when your Holmes Team agent tells you that the time has come. This board interview is a serious matter and should be treated as such. You should arrive promptly and dress appropriately. Answer only the questions you are asked without volunteering extra information. The Holmes Team will train you and guide you through this process. Board decisions can be given immediately or take up to one week from the interview date. 11. Inspection – The day before or the morning of the closing, the property is inspected. Make sure to check all appliances, the removal of all personal property, and that the premises are broom swept. 12. Schedule a Closing - Once you receive your board approval, you are ready to “close.” Typical time from board approval to closing is 10-14 days to account for late paperwork and filings, and the need to coordinate everybody’s schedule. Make sure to get the exact check information from your attorney --and give yourself enough time to obtain certified or bank checks. When it’s over, we’ll celebrate. Don’t forget to pick up your keys!

Closing Costs
For Coops: Own Attorney: Typically start at $1500. Consult your own Attorney Points: 0%-3% of loan amount (optional, but your rate can come down) Application Fee: $300 Bank Attorney: $500 Appraisal Fee: $300+ Underwriting Fee: $350 Misc Fees: $300 Managing Agent Fee: $300 Judgment & Lien Search: $300 UCC-1 Filing Fee: $20 Move in Deposit: $500+ (sometimes refundable) Short Term Interest: up to 1 month (depending on closing date) Maintenance Adjustment: up to 1 month (depending on closing date) Mansion/Luxury Tax: 1% of purchase price if $1,000,000 or more.

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For Condos/Townhouses Own Attorney: Typically start at $1500. Consult your own Attorney Points: 0%-3% of loan amount (optional, but your rate can come down) Application Fee: $300 Bank Attorney: $500 Appraisal Fee: $300+ Underwriting Fee: $350 Misc Fees: $300 Managing Agent Fee: $300 Tax Escrows: 2-6 months Mortgage Tax: 1.75% of loan amount for loans under $500,000. 1.875% of loan amount for loans exceeding $500,000. Fee Title Insurance: $450-$650 per $100,000 Mortgage Title Insurance: $250-$500 per $100,000 Move in Deposit: $500+ (sometimes refundable) Short Term Interest: up to 1 month (depending on closing date) Common Charges Adjustment: up to 1 month (depending on closing date) Real Estate Tax Adjustment: 1-3 months (depending on closing date) Mansion/Luxury Tax: 1% of purchase price if $1,000,000 or more. At closing, the seller is required to pay the New York State (.4%) and New York City (1% on sales of less than $500,000, and 1.425% when greater than $500,000, in most cases) Real Property Transfer Taxes. In newly constructed and gut renovated buildings, developers typically want the buyer to pay these taxes, plus their attorney’s fee. This is subject to negotiation, and can add to the buyer’s closing costs.

Should You Try to Buy on Your Own or Have A Professional Help You? The Advantages of Using Licensed Agents
1) YOU DON’T PAY FOR OUR VALUABLE SERVICES. You get a team of full-time real estate professionals but don’t pay for our services-our fee is paid by the seller and split with the listing agent. 2) TRAINED, LICENSED, PROFESSIONAL, DEDICATED, and EXPERT ADVOCATES - ON YOUR SIDE. Real estate transactions can be complicated and risky, that is, unless you have expert advice. When making the financial commitment to invest in real estate, most buyers find it indispensable to have an experienced advocate on their side to evaluate opportunities and negotiate the best price. Remember, when listing agents are trying to sell a specific property, they are working for the seller, trying to negotiate the

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highest price. That’s why more than 90% of buyers use their own agents to represent them when they buy. 3) HELPING YOU MAKE THE MOST OF ALL THE INFORMATION THAT IS OUT THERE IN THE PUBLIC DOMAIN. There is so much information out there. What’s really relevant? What pricing information is correct? What kind of information are you going to base your buying decisions on? We help you discern the knowledge from the noise and the trends. 4) NOT JUST ACCESS TO EVERYTHING ON THE MARKET BUT A DISCERNING EYE TO INTRODUCE YOU TO PROPERTIES THAT MATCH WHAT YOU’RE LOOKING FOR. Before the advent of the internet, buyers needed real estate agents just to identify properties that were for sale. Now you can see most of what’s on the market with the click of a mouse. But licensed agents have access to more information about properties than is available to the general public, things like requirements for purchasing in specific coops, access to properties that are in contract but that haven’t closed, etc. And our team is already familiar with most buildings. You don’t want to get excited about purchasing something you like only to discover that it won’t work for you, or that you won’t get approved by the building’s coop board. We make sure that you view properties that really match what you are looking for AND that you’ll be able to purchase. 5) EXPERT FINANCIAL EVALUATION. When you decide you want to make an offer on a specific property we conduct a Comparative Market Analysis (CMA) for you to evaluate what the market says that property is worth TODAY, not what it was worth 4 or 5 months ago. As licensed real estate agents and members of the Real Estate Board of New York (REBNY), we have access not only to historical sales data but also to information for properties which are under contract but that haven’t closed yet. This data is not available to the general public, yet is crucial when evaluating what the real market value of a property is. 6) ACQUIRING HIDDEN KEY INTELLIGENCE. As agents we can uncover valuable information about the seller’s motivations from the listing agent or the seller, which can be key to getting you the best price. 7) AS PROFESIONALS WE NEGOTIATE THE LOWEST PRICE AND BEST TERMS BETTER THAN YOU CAN DO ON YOUR OWN. Using the Comparative Market Analysis and other information we learn, we craft the best strategy to help you buy the property and get you the best price. 8) MANAGING THE ENTIRE PROCESS. We carefully manage the entire buying process for you by paying attention to every detail, from helping you get pre-approved for a mortgage, to putting together a successful board package, to guiding you through the coop board or condo approval and interview processes. And remember, you don’t pay for it! For further information, or to talk directly with a member of The Holmes Team about your real estate needs, please call 212-381-2280

212-381-2280 * TheHolmesTeam@halstead.com

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Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!

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Spiral Staircases for Small Spaces Shopper's Guide

Staircases aren't something one usually shops for, but you might build a loft one day and find yourself in need of a space-saving design that looks good and fits your budget. There are two main options when it comes to stairs: custom built (generally more expensive) and kits (which tend to be cheaper). Here are 10 sources for both — some high and some low.

Arke: Arke is a US subsidiary of an Italian company that sells in the US through Home Depot, Lowe's and other stores. They offer DIY spiral staircase kits, starting around $1,500, that can be assembled and customized to fit your space. Serett Metal Work: Owner Joshua Young has made a name for himself as a designer of unusual staircases. His Brooklyn-based studio does custom work, and their expertise rests in traditional blacksmithing, contemporary metalworking, furniture making, and fine art.The Iron Shop: Like Arke, this company sells spiral staircase kits that can be assembled by a home DIYer. They offer online shopping and ordering, and their kits come in both modern and Victorian styles in a range of colors and finishes. Kit pricing ranges between $1,000 and $2,500.MILK Design: Chicago-based MILK design was started by two former construction workers, Joe Colosi and Pawel Korczakowski. With a range of custom pieces built for Christian Liaigre for Holly Hunt, they create high-end staircases and railings in the Midwest.Mylen Stairs: They've been in business for 50 years, and they sell both custom spiral staircases and modular "econo" kits. Based out of Peekskill, Nyew York, they ship their kits nationally, can provide drawings to architects, and have a service line you can call for installation advice.Spiral Stair Warehouse: Based out of Broomall, Pennsylvania, they sell metal spiral staircase kits that come with 8 structural parts. They have five available sizes, and you can call for information about how kits and installation work.Salter Spiral Staircase: Headquartered in Collegeville, Pennsylvania, they sell kits in steel, wood, aluminum and galvanized steel. They have residential and commercial sales departments — call for a price quote.Spiral Stairs of America: This Erie, Pennsylvania company sells standard and Deco-style spiral stairs, in both kits and custom designs. Their stairs comply with the standards of BOCA, CABO, IBC, and IRC.Duvinage: They describe themselves as "the oldest" manufacturer "of custom spiral stairs and circular stairs in the United States," and they've built staircases for the White House and the National Gallery of Art. Based out of Maryland, they sell both prefab kits and do custom work.Precision Pine: Their spiral staircase kits are all made from wood and start around $2,600. Based out of Knoxville, Tennessee, they offer mostly traditional styles.

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Real Estate Council of BC Guide to Selling

in British Columbia

www.recbc.ca

The Real Estate Council of British Columbia protects the public interest by assuring the competency of real estate licensees and ensuring their compliance with the Real Estate Services Act. The Council is accountable to and advises government on industry issues and encourages public confidence by impartially setting and enforcing standards of conduct, education, competency, and licensing for real estate licensees in the province.

Buying a Home in British Columbia What is the Real Estate Council of British Columbia? Introduction What Choices You Have? ContentsDo Structures Types of Housing Types of Housing Ownership What CanHome in British Columbia Selling a You Afford? The Down-Payment What is the Real Estate Council of British Columbia? The Borrowed Money Introduction How Much Can You Afford to Pay in Mortgage Payments? Working With a Real Estate Licensee The Closing Costs Where Should You Purchase? The Decision to Purchase

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Real Estate Licensees Real Estate Licensees Licensing Requirement Licensing Requirement Responsibilities of Seller’s and Buyer’s Licensees Responsibilities of Seller’s and Buyer’s Licensees Your Relationship with a a Real Estate Licensee Your Relationship With Real Estate Licensee How DoaYou Choose a Licensee?a Real Estate Licensee Services Buyer Can Expect From What Will a Licensee Charge?
The Big Search! What Should You Look For? Service Agreements Buyer Beware!

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Types of Listing Contracts What Other Questions Should You Ask? Terms of the Listing Fixtures vs. Chattels Contract Before You Sign the Listing Contract Making an Offer Responsibilities of the Contain? What Should the Offer Seller Obligation to Disclose Defects What are the Seller’s Options?
What are the Buyer’s Options? More About “Subject” Clauses Offers to Purchase

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What Need to Know Info More Should the Offer Contain? More About Deposits What Are Your Options? More About Financing You Have Four Options What is a Mortgage? More Types of MortgageClauses There? What About “Subject” Loans Are Financing...From the Seller’s Perspective What is an Amortization Period?
What is a Term?

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Seller Beware! Purchase Completing Your
Do You Need Legal Assistance to Complete the Purchase? Complaints About Sale Completing the a Licensee

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Do You Need a Lawyer or Notary Public Although the Real Estate Council of British Columbia believes that the to Complete the Sale? 18 information contained in this booklet is reliable, this cannot be assured. The Real What Costs Can You Expect? 19 Estate Council assumes no liability for any errors in the material or any reliance placed therein. Professional advisors should be consulted before acting upon 20 the Complaints About a Licensee
information contained herein. Although the Real Estate Council of British Columbia believes that the information contained in this booklet is reliable, this cannot be assured. The Real Estate Council assumes no liability for any errors in the material or any reliance placed therein. Professional advisors should be consulted before acting upon the information contained herein.

Buying a Home Selling a Heading Home in British Columbia in British Columbia Here

What is the Real Estate Council of British Columbia?
The Real Estate Council of British Columbia is a regulatory agency established by the provincial government. Its mandate is to protect the public interest by enforcing the licensing and licensee conduct requirements of the Real Estate Services Act. The Council is responsible for licensing individuals and brokerages engaged in real estate sales, rental and strata property management. The Council also enforces entry qualifications, investigates complaints against licensees and imposes disciplinary sanctions under the Act.

Introduction
Selling or buying a home is the largest transaction most of us ever become involved in. Yet people sometimes take less time over it than they do when buying a new car. That’s because it’s unfamiliar territory to many of us. We don’t all understand the process. We don’t know what questions to ask. We may take things for granted, rely on others when we shouldn’t, and sometimes we later wish we had known more about the process involved. The Real Estate Council feels it is important that you understand the procedures and documents you will encounter during the sale of your home, as well as the role of other people who may be involved in the transaction. Selling a home is a major event. This booklet will help you to better understand the process.

Real Estate Council of British Columbia

Working with a Real Estate Licensee
You can sell your own home without the services of a real estate licensee, but selling a home is a complex process. What is the best possible price? Where do you find a buyer? What facts must you disclose? What paperwork is required? Will the contract be legal and binding? How is ownership transferred? What about the existing mortgage? Can the buyer qualify for a mortgage? Who ensures you will get your money? To answer these questions and assist with many other situations which may arise, you might wish to employ a licensed real estate professional to act as your agent.

Selling or buying a home is the largest transaction most of us ever become involved in

Selling a Home in British Columbia

Real Estate Licensees

Licensing Requirement
It is important to understand that in British Columbia, the person you hire to assist you to sell your home must be licensed under the provincial Real Estate Services Act.

Responsibilities of Seller’s and Buyer’s Licensees
In every real estate transaction there is a seller and a buyer. A real estate licensee may be employed as an agent for the seller, as an agent for the buyer, or both. Early in the first meeting with a real estate licensee, the licensee should provide you with full disclosure about the nature of his or her relationship with you, as a seller, and any relationship he or she may have with a buyer. The licensee is required by law to provide this information and explain its implications to you.

Your Relationship With a Real Estate Licensee
Real estate licensees work within a legal relationship called agency.* The agency relationship exists between you, the principal, and the brokerage, the company under which your real estate licensee is licensed. The essence of the agency relationship is that the brokerage has the authority to represent the principal in dealings with others. Your real estate licensee acts as the brokerage’s representative in performing the agency obligations.
*Agency descriptions have been adapted from the Working With a REAltoR® brochure and used with kind permission from the British Columbia Real Estate Association.

Real Estate Council of British Columbia

One Brokerage Acts for the Buyer and One Brokerage Acts for the Seller When a seller engages a real estate licensee to help sell his or her home, the related brokerage and the licensee become the agent of the seller. A buyer may also select a licensee to act as his or her agent. As a seller, you become the principal and the licensee becomes your agent. Brokerages and their licensees are legally obligated to protect and promote the interests of their principals as they would their own. Specifically, the brokerage and the licensee have the following duties: 1. Undivided loyalty. The brokerage must protect the principal’s negotiating position at all times and disclose all known facts which may affect or influence the principal’s decision. 2. To obey all lawful instructions of the principal. 3. An obligation to keep the confidences of the principal. 4. The exercise of reasonable care and skill in performing all assigned duties. 5. To account for all money and property placed in a brokerage’s hands while acting for the principal. You can expect competent service from your brokerage, knowing that the company is bound by ethics and the law to be honest and thorough in representing your interests. Both the buyer and the seller may be represented by their own brokerages in a single transaction. Dual Agency Dual agency occurs when a brokerage is representing both the buyer and the seller in the same transaction, either through the same licensee or through two different licensees engaged by the same brokerage. Since the brokerage has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously—a duty it cannot satisfy if acting as an agent for both parties—it is necessary to limit these duties in this situation, if both parties consent.

Selling a Home in British Columbia

If you find yourself involved in a transaction where the same brokerage is working with both the seller and the buyer, before making or receiving an offer, both you and the other party will be asked to consent, in writing, to this new limited agency relationship. This relationship involves the following limitations: 1. The brokerage will deal with the buyer and the seller impartially. 2. The brokerage will have a duty of disclosure to both the buyer and the seller except that: a. The brokerage will not disclose that the buyer is willing to pay a price or agree to terms other than those contained in the offer, or that the seller is willing to accept a price or terms other than those contained in the listing. b. The brokerage will not disclose the motivation of the buyer to buy or the seller to sell unless authorized by the buyer or the seller. c. The brokerage will not disclose the personal information about either the buyer or the seller unless authorized in writing. 3. The brokerage will disclose to the buyer defects about the physical condition of the home known to the brokerage. You should not provide a licensee who is not your agent with any information that you would not provide directly to his or her principal.

Real Estate Council of British Columbia

How Do You Choose a Licensee?
There are many ways to find a real estate licensee with a reputation for excellence. Word-of-mouth is one good source. Ask friends, neighbours and fellow employees who have recently bought or sold a home to recommend their choice of a licensee. You might meet a licensee you like at an open house who is showing one of the properties for sale in your neighbourhood. Or, you could contact several local real estate brokerages to inquire if they have a licensee who specializes in selling homes similar to yours. The internet is also a good way to locate licensees who specialize in properties and regions that may be of interest to you. Make appointments with licensees to discuss their range of services, background, knowledge, and fees or commission rates. After these interviews, choose the licensee who seems best able to render the services and produce the results you are seeking.

What Will a Licensee Charge?
In general, licensees work on a commission basis and receive payment only after the successful completion of a sale. As the seller, you will be asked to agree to pay this commission as a fee for the licensee’s services. The commission is usually stated as a percentage of the total sale price or as a fixed dollar amount. Note that HST is applicable to commissions. The commission rate is neither fixed by law nor by any real estate board; it is negotiable between you and the licensee you engage to help you. The seller’s brokerage traditionally shares this commission/fee with the brokerage working for the buyer.

Choose the licensee who seems best able to render the services and produce the results you are seeking

Selling a Home in British Columbia

Service Agreements

Once you have selected a licensee to work with, that licensee will use market research, along with his or her knowledge and expertise, to assist you in setting the best possible listing price for your home. However, you must keep in mind that the price you set must be attractive to potential buyers under the current market conditions. Before finalizing the asking price (sometimes referred to as the list price), you may wish to ask your selected licensee to prepare an estimate of the net cash proceeds you will receive on completion of the sale, based on the suggested asking price and the financing arrangements currently in place. After an asking price has been established, you will be asked to sign a service agreement. This service agreement is typically referred to as a listing contract.

Types of Listing Contracts
In British Columbia, the two most common types of listing contracts are: the Exclusive Listing the Multiple Listing Each type of listing lasts only for the time period which is specified in the agreement. Be sure to take note of what this time period is. An Exclusive Listing gives the seller’s brokerage the sole right to sell the home. This means that even if you sell the home to a prospect of your own during the term of the listing, you must pay the agreed commission to the seller’s brokerage unless that prospect was specifically excluded on the listing agreement. You should also be aware that even after the exclusive listing expires, you may be obligated to pay the seller’s brokerage a

Real Estate Council of British Columbia

commission if you sell your home to a person who purchases because of the licensee’s actions during the time of the listing. A Multiple Listing is a form of exclusive listing which differs from the previous example only in that the seller’s brokerage agrees to register your home in a Multiple Listing Service (MLS®) so that its availability is made known to all real estate licensees who are members of the local real estate board. In this case, the seller’s brokerage agrees to share a specified amount of the commission with any other member of the real estate board who is able to find a buyer for your home. Discuss your objectives with your licensee before deciding which type of Listing Contract will best suit your needs.

Terms of the Listing Contract
The Listing Contract legally defines your arrangement with the brokerage and, in accordance with the Real Estate Council Rules, it must contain: your name and the name of the brokerage that you have chosen to work with; the address of the property you are selling; the effective date of the agreement; the date the agreement expires; a general description of services to be provided by the brokerage; the remuneration to be paid under the agreement and the circumstances in which it will be payable; a provision respecting the use and disclosure of personal information.

In addition to the Listing Contract, the licensee may ask for additional information to assist in the marketing of your home, including: the existing financial arrangements and whether this financing can be assumed by a new owner; a list of items attached to the building (normally called fixtures) which are not to be included in the sale; for example, a fireplace insert or a crystal chandelier; and the date on which you can give possession of the home to a new owner.
Selling a Home in British Columbia 9

Before You Sign the Listing Contract, Ensure That:
all the spaces have been completed to your satisfaction, and you have a thorough understanding of all of the terms it contains, especially the list price, the commission rate, and the length of the contract. The licensee will provide you with a copy of this contract which you should keep for future reference. Remember: Be aware that the Listing Contract is a contract. You cannot simply back out of the contract without the consent of your licensee. If your licensee says that you can cancel the listing agreement at any time, ensure that you get this in writing.

When you retain a licensee, you are responsible for providing him or her with accurate information concerning your home

Responsibilities of the Seller
When you employ a licensee, you are responsible for providing him or her with accurate information concerning your home; for example, its age, the current financing arrangements, the condition of the roof and hot water heater, the property taxes, etc. The licensee will also need your assistance and/or authorization to gather information about such things as the ownership details, the outstanding balance owing on the mortgage, the home’s assessed value, and the current zoning of the property. For strata titled properties, licensees will want your assistance to gather and provide information, including minutes of all strata meetings in the last two years, current financial statements, registered bylaws, current rules, building inspection or engineer’s reports, Information Certificate (Form B prescribed under the Strata Property Act), as well as information pertaining to the nature of how parking stalls and storage lockers are designated, whether a special assessment is being proposed, and any other documentation relevant to the strata property.

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Real Estate Council of British Columbia

Obligation to Disclose Defects
Sellers must disclose known material latent defects about their property to a buyer. A material latent defect means a defect that cannot be discerned through a reasonable inspection of the property, including a defect that renders the real estate: dangerous or potentially dangerous to the occupants; unfit for habitation; or unfit for the purpose for which the buyer is acquiring it, if the buyer has made this purpose known to the seller. Material latent defects may also include: a defect that would involve great expense to remedy; a circumstance that affects the real estate in respect of which a local government or other local authority has given a notice to the seller, indicating that the circumstance must or should be remedied; or a lack of appropriate municipal building and other permits respecting the real estate. Common examples of material latent defects could include the fact that the basement leaks when it rains, structural damage to the property, failure of the building’s envelope (water ingress), underground storage tanks located on the property, problems with the potability/quantity of drinking water and any unremediated damage caused by the illegal use of the property, e.g. marijuana grow operation. New installations or renovations of electrical or gas systems completed without appropriate permits and inspections may also be considered examples of material latent defects. For information on what type of work in a home requires gas and electric permits, please contact the BC Safety Authority at 1-866-566-7233 or visit www.safetyauthority.ca. Failure to disclose material latent defects could result in future problems, including legal issues if the new owner discovers problems that you were aware of and did not disclose.

Selling a Home in British Columbia

11

Offers to Purchase

Once an interested buyer has been found, a written offer to purchase your home will be prepared. This offer is usually recorded on a standard form entitled Contract of Purchase and Sale. Your licensee will explain to you the process of receiving and reviewing offers. Do not be surprised if you are presented with offers which differ dramatically from your listed asking price; your licensee is under an obligation to bring all written offers to you for your consideration. If several offers are brought to you at once, you are under no obligation to accept any one offer over another.

What Should the Offer Contain?
All offers to purchase your home will contain a number of important details which you must consider. The offer should include: date of the offer full legal names and addresses of both the buyer and the seller full legal description of the home amount of the deposit sale price amount of the cash down-payment and details as to how the remainder of the purchase price will be financed date for completion of the sale date for possession of the home a list of the conditions which must be fulfilled before the sale can take place (normally called subject clauses or conditions precedent)

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Real Estate Council of British Columbia

a list of items which are not attached to the building (normally called chattels) but which are to be included in the sale price; for example, drapes, refrigerator, stove, etc. date and time at which the offer expires the signature of the buyer and his or her occupation.

What Are Your Options?
When you receive one or more offers to purchase your home, it is in your own best interest to give considerable time and attention to reviewing each offer carefully. Your licensee will assist you to understand the terms and conditions contained in the offer, and will provide you with any advice you request, but ultimately the decision is yours. Before you decide, you may wish to have your licensee prepare a revised estimate of the net cash proceeds you will receive on completion of the sale, based on the sale price and financing arrangements stated in the offer.

You Have Four Options:
Accept an Offer Exactly as it Stands If you decide that you would like to accept an offer, be sure you know the precise meaning of each term in the written offer before you sign the document. Once you, the seller, sign a Contract of Purchase and Sale agreeing to its terms, and your acceptance has been conveyed to the buyer, it becomes a legally binding contract. Legally binding means both you and the buyer will be bound by the terms of the contract and must perform your respective obligations as stated. Your performance can be enforced in a court of law. If you are uncertain about any of the clauses contained in the offer, you may wish to consult a lawyer before signing the contract; however, keep the expiry date of the offer in mind if you decide to postpone acceptance!

Be sure you know the precise meaning of each term in the offer to purchase

Selling a Home in British Columbia

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Make a Counter-Offer If you change anything at all in the original offer, you are considered to have rejected that offer and to be making a new offer from you to the buyer. This new offer is usually referred to as a “counter-offer.” The risk in making a counter-offer is that if the buyer has changed his or her mind and rejects the counter-offer, you do not have the option to return to the original offer and accept it. But, the buyer may decide to make another counter-offer back to you and the process of counter-offers could continue until an agreement is reached. If, after making a written counter-offer, you decide you don’t want to sell the home, it may be possible to revoke the counteroffer. Many legal problems can result from the revocation of a counter-offer, so you should seek professional advice about the correct procedure to follow. Reject the Offer You are under no obligation to accept any offer or to make a counter-offer. If, however, you reject an offer that exactly meets all the terms you agreed to in the Listing Contract, which you signed with your listing brokerage, you could be legally obligated to pay the commission. Ignore the Offer You are under no obligation to acknowledge receipt of any offer. If, however, you ignore an offer that exactly meets all the terms you agreed to in the Listing Contract, which you signed with your listing brokerage, you could be legally obligated to pay the commission.

More About “Subject” Clauses
The purpose of a subject clause contained in an offer to purchase is to set out a specific condition that must be fulfilled before the sale can go through. One common subject clause you might encounter is one in which the buyers make the sale conditional upon their finding the exact amount and type of financing which will enable them to purchase your home.

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Real Estate Council of British Columbia

Another common clause is one in which the buyers make the purchase conditional upon a satisfactory home inspection. Remember that, if you accept an offer which contains a subject clause, you are effectively taking your home off the market for the period in which the buyers are attempting to meet the condition they have set. Therefore, you should ensure that an agreed upon time for the condition to be met is specified in the offer to purchase. If one of the conditions contained in a subject clause cannot be met after every reasonable effort has been made to do so, the contract ends and there is no legal obligation to complete the purchase or sale. As a seller, you may wish to accept an offer containing a subject clause (e.g. subject to the buyers selling their own home) yet still leave yourself free to consider other offers, just in case the buyers are unable to remove the condition. You can do this by having the buyer agree to inserting a time clause in the contract. A time clause will permit you to require the buyer to remove all subject conditions within a short, specified time period if you receive another offer that you would like to accept. If the buyer does not remove the conditions within that time, the conditional contract comes to an end and you are free to accept the second offer. When selling a strata property, a common clause you might encounter is one in which the buyer makes the counter-offer conditional upon his or her review and approval of all pertinent strata documentation, such as registered bylaws, current rules, strata meeting minutes, financial statements, strata plan, Form B, engineer’s reports, etc.

Financing...From the Seller’s Perspective
An offer to purchase will contain information about how the buyer intends to finance his or her purchase. Existing Financing If you currently have a mortgage loan on your home, you may be faced with one of two situations:

Having to pay an interest penalty will reduce the price you will receive for your home

Selling a Home in British Columbia

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The Buyer Wants to Pay Cash and Has no Mortgage This situation will require you to pay out your existing mortgage and there may be an interest penalty for doing this. Remember that having to pay an interest penalty effectively reduces the price you will be receiving for your home. The Buyer Offers to Assume, or Take Over, Your Remaining Mortgage Loan In this situation, before agreeing to allow the buyer to assume your mortgage loan, you should ensure that your mortgage lender will release you from any future obligation to repay the monies owing (if the buyer defaults). Contact the financial institution which holds your mortgage to obtain information about your position in each of the above situations. It is a good idea to do this well in advance of signing a Listing Agreement so you will be able to give your licensee accurate information. Financing by the Seller If you have no existing mortgage, an offer to pay all cash is ideal and, of course, would be your preference. But the buyer’s offer might state that part of the purchase price is to be paid in cash and part is to be paid in payments over a specified period of time at a specified interest rate. In effect, the buyer would be asking you to become the lender. If you are considering an offer containing a request for “seller financing” (sometimes referred to as a seller take-back mortgage), you should first seek legal advice in order that you fully understand the implications of this type of financing arrangement.

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Real Estate Council of British Columbia

Seller Beware!

If it is possible, as some suggest, for people to quickly become very wealthy by dealing in real estate, then, unfortunately, people on the opposite side of the same transaction may, just as quickly, lose some of what they have invested. Those who may stand to lose are sellers who agree to be a party to buyers’ financing arrangements in which the sellers assume risks. Essentially, there is nothing wrong with most innovative or creative financing if all parties are fully aware of the potential risks and fully understand the possible consequences of such risks. However, the fact is that many owners (sellers) are not aware of the potential disasters which may occur. It is strongly recommended that you secure competent advice from a real estate licensee or legal counsel before finalizing any real estate contract. This recommendation is much more urgent when the offer you are considering includes terms which could jeopardize you financially. Be wary of offers which require any of the following: no cash paid as a down-payment an amount of cash being returned to the buyer your equity participation a promissory note without a registered mortgage an agreement to withhold registering a mortgage the seller (you) to secure a new loan before closing terms said to be included, but which are not written in the offer concealing information from a lending institution

Selling a Home in British Columbia

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Completing The Sale

The Contract of Purchase and Sale, which you signed, will state the completion day for the transaction. On that day, legal ownership will transfer from you to the new owner in exchange for the purchase price of the home.

Do You Need a Lawyer or Notary Public to Complete the Sale? Your home is sold!
While it is the normal practice for the buyer’s lawyer or notary to prepare the documents necessary to transfer the legal ownership, it is recommended that you, as the seller, engage legal counsel to act solely on your behalf. Among other things, he or she will protect your interests by: checking the documents prepared by the buyer’s lawyer and explaining them to you ensuring that your old mortgage has been properly discharged, if this is required ensuring that you have no further obligation regarding your old mortgage if it is being assumed by the buyer confirming that all payments for which you are responsible have been made arranging for you to sign the transfer documents preparing a statement for you outlining where all the purchase money was disbursed and giving you the net proceeds of the sale.

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Real Estate Council of British Columbia

What Costs Can You Expect?
the commission you agreed to pay your brokerage the legal fees to discharge any existing mortgage whether or not you engage your own lawyer the Harmonized Sales Tax on the real estate commission and on your legal fees any prepayment penalty levied by the financial institution for early pay-out of an existing mortgage your share of the property taxes for the year if the current year’s taxes have not yet been paid, plus any penalties due for late payment of unpaid taxes The day has arrived!! You have signed the documents, packed your boxes, received your money and turned over your keys. Your home is sold!

Selling a Home in British Columbia

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Complaints About a Licensee
If a concern develops for a consumer as a result of real estate services provided by a licensee, the following steps should be considered: Discuss the concern with the licensee. If the matter is still not resolved, discuss the concern with the managing broker in charge of the brokerage. Most concerns are settled by these two means. If the licensee is also a member of a local real estate board, it may be approached. The board may be able to assist to informally resolve the concern. Real estate boards sometimes investigate conduct that may be in violation of their Code of Ethics and Standards of Business Practice. These boards will refer all matters to the Council where it appears that the Real Estate Services Act, Regulation or Rules have been contravened. Please visit www.bcrea.bc.ca for names and addresses of local boards. If satisfaction is still not forthcoming, the concern should be referred to the Real Estate Council at 604-683-9664, tollfree in British Columbia 1-877-683-9664 or on the internet at www.recbc.ca. The Real Estate Council can investigate any complaint about the conduct of a real estate licensee in his or her handling of your real estate transaction. The Council is authorized to discipline a licensee found guilty of professional misconduct. It should be noted, however, that the Council does not have the authority to require a licensee to perform under the terms of a contract, nor does the Council have any jurisdiction over buyers who have not performed under the contract. The Council cannot award damages to a complainant from a licensee. Those matters may require legal action.

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Real Estate Council of British Columbia

Selling a Home in British Columbia

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www.recbc.ca

Rev.10/2010

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Guide to Buying <b>Real Estate</b> No Matter the Market Trends

The market of real estate clearly changes depending on the concept of supply and demand. When a property is in high demand, the price tag becomes higher while when the property is freely available the price tag becomes lower. The trend has been down lately with the recovering economic crisis but is still a healthy ground for good buys in low prices. But before you find a property listing and buy what you fancy, make sure you follow these tips so you land the perfect property you need.

Make a checklist of the things you want in a property and note the three most important factors you would like to have in a real estate property. For example, you are considering buying a second house. You must have a garage, patio and three bedrooms for your family needs. And so concentrate on the three top most facilities you have listed in your checklist so you can narrow down the choices of property you have to choose from.

This could really save you time in sorting out the properties you need or not need.

You have to hear what the experts in real estate has to say. Of course, you are already clear in what you want to have as an additional property. But you need to know the local market and the people who knows the market. There are many real estate consultants that can give you an idea about the community around your chosen candidate properties and they can evaluate the technical aspects of your choices like location, utilities, facilities, market value, and many other considerations only the experts can tell you about.

Do market shopping and let the expert evaluate the choices. You have to hand everything to the consultant to be able to have a realistic comparison of all properties.

Market data can be so hard to sort out the relevant sales statistics. Community profiling can help in giving you an idea of the environment around your property. You also have to know about the duration of a sell to know the average pricing of the property.

Talking about the resources of your next property to be bought, you should be able to find time to talk with your mortgage agent or banker so you know you have enough credit and financial capacity to afford a new real estate buy.

The seller’s motivation can also help in choosing the right property among your filtered choices. A dark history of the property can be the reason behind the low price or a hidden garden of herbs can be the reason of the higher prices of the other. Whichever the case, always investigate the history of the property.

Condition of the property is almost a secondary factor in choosing the right property. Be afraid of not being able to find a property in good condition and reconsider those that have sound facilities. No use in buying cheaply but paying highly for renovations or additions in the property.

Many other factors affect the terms of your real estate property but these tips are enough for you to be closer to the real and available deal around. Always be patient in looking for a property and do not hurry as it is a considerable investment to have.

View the original article here

GQ&apos;s Valentine&apos;s Day Gift Guide: GQ has just released a guide...

× Like us and you'll find top breaking news in your Facebook newsfeed. Sign up for our daily email newsletter and get top stories and breaking news delivered to your inbox. Monday, January 31, 2011, by Sarah

? Back to top

? Previous: The Power of Plaid

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Craigslist Chronicles: Charts Don&apos;t Lie: a Craigslist Seller&apos;s Annotated User&apos;s Guide

× Like us and you'll find top breaking news in your Facebook newsfeed. Sign up for our daily email newsletter and get top stories and breaking news delivered to your inbox. Friday, January 14, 2011, by Sarah

Illustration: Lunchbreath via Core77

On top of the Core77 home page today: editors' picks of the best "stuff" (in general) from last year, including a bookshelf that looks like a hamster wheel, the cover of the first issue of Interiors magazine, and a wire-loop chair. Plus, there's pretty much the coolest Craigslist-themed illustration of all time (above). Consult it the next time that "authentic midcentury chair" begs to be sold.
· The Best of Core77: Our Favorites from 2010 [Core77]

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Santa Fe Real Estate Guide

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Real Estate Guide - How To Rent My House Guide!

This Step by Step Guide holds your hand from tenant selection to filling out the lease. Learn the secrets the pros use and stop listing that home in a market that will never sell.

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Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future

Learn to Invest in History’s Only True Money

Chances are you’ve been hearing a lot about gold and silver lately – and for good reason. They are great investments in times of uncertainty such as the economic times we are now in.

If you are interested in investing in gold and silver, but not sure how to start or aware of the reasons why gold and silver are excellent additions to your investment portfolio, then Michael Maloney’s Guide to Investing in Gold & Silver is the perfect book for you.

A world-renowned expert on monetary history, and gold and silver investing, Michael shares his vast knowledge of precious metals investing with you in his new book, Guide to Gold and Silver Investing. More than just a dry how-to, in Guide to Investing in Gold and Silver you’ll learn:

• The essential history of economic cycles that make gold and silver the ultimate monetary standard
• How the U.S. government is driving inflation by diluting our money supply and weakening our purchasing power
• Why precious metals are one of the most profitable, easiest, and safest investments you can make
• Where, when, and how to invest your money and realize maximum returns, no matter what the state of the economy
• Essential advice on avoiding the middleman and taking control of your financial destiny by making your investments directly.

Robert on Michael Maloney: "He’s an expert. Specifically, he’s an expert on gold and silver. Mike’s focus on history has a very important reasoning behind it - to make you wealthy."

Price: $16.99

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Crowned With Success Guide

A step-by-step guide filled with techniques, tips, tricks & methods that one needs to know to take their real estate business to the next level of success the same way that top real estate investors and agents do.

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Gift Guide 2010: Kelly Hoppen&apos;s Pick: Calfskin iPad Sleeve by Smythson

Like us and you'll find top breaking news in your Facebook newsfeed. Sign up for our daily email newsletter and get top stories and breaking news delivered to your inbox. Wednesday, December 15, 2010, by Rob

'Tis the season, folks, for the age-old tradition of shopping! Welcome to Curbed's 2010 Gift Guide Advent Calendar, where every day from now 'til Christmas a different design-world player will recommend one home- or decor-related gift, from the reasonable to the outrageous and everything in between. Click the graphic below to unveil today's pick, and as the holidays draw nearer check out the whole kit 'n' caboodle. Here's to all things merry and bright.

Calfskin iPad sleeve in Magenta, from $280, Smythson of Bond Street.
· Kelly Hoppen [official site]

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How to Buy and Sell Real Estate in the Bahamas: Insiders Guide

Save time, stress, and Money by knowing the facts--and tricks--before you buy. Experienced real estate investor gives step-by-step advice. Experts from each major Bahamian island describe the island, what real estate is available, and at what price.

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Investing in Real Estate, The Ultimate Guide

Learn How to Invest in Real Estate Starting with Absolutely Nothing. Great Converting Salespage, Big payouts, an Affiliates Dream! 75% Commission Rate.

Check it out!