When you first think about listing your home for sale, a million thoughts may run through your mind. There’s much to consider before the “For Sale” sign goes up. You’ve got to research the neighbourhood and determine what price will get the most attention. However, those details come later. The first thing you want to do is find out how to maximize the value of your property in the current market.  

It makes sense to make some upgrades to make your house more appealing. A few strategic renovations can potentially add thousands of dollars to your final selling price. Others can disrupt your lifestyle and cost far too much to be worthwhile. How do you know what is worth it and what is not?

Before investing in any updates, your first step should be to find out what your home is currently worth. You can book a home evaluation for free right here.

The General Rule of Home Renovations

For many years, the general rule was that you should expect to earn $10,000 for every $2,000 invested in home improvements. It wasn’t uncommon for house flippers to buy a fixer-upper, make a few cosmetic upgrades and then sell it at a huge profit. However, all bets are off in the current market. There are too many factors at play and no easy answers. 

Even if an upgrade adds value, it’s up to you to decide if the extra money is worth the time and effort of living in a construction zone. Extensive research will help ensure your renovations pay off before investing several months and thousands of dollars on something that doesn’t increase your selling price by a high margin.

Your best bet is to focus on the low-cost, minimally invasive upgrades that help make your home show well to potential buyers.

Selling your home can be a complicated process, but it doesn’t have to be. Here are some other resources to take the stress away:

• Should You Wait Until the Timing is Better to Sell Your Home?
• How To Negotiate A Real Estate Contract
• How To Stand Out In A Changing Market

Consider the Current Market

The current market is another factor that will influence the value of any upgrades you make. In a buyer’s market, homes take longer to sell because fewer people are searching. You may face a lot of competition from other sellers. In that case, you’ll have to pull out all the stops to make your house stand out. Still, we don’t recommend investing in a major overhaul of your home–unless the research shows it will pay off.

In a seller’s market, buyers have few listings to choose from. Multiple offer scenarios and bidding wars happen frequently. In these conditions, your home may sell quickly above your listing price with few, if any, upgrades.

The real estate market moves quickly, and what happens to the market overall isn’t the same everywhere. For example, houses may sell slowly in general but quickly in highly desirable neighbourhoods. The bottom line is that every situation is different, and you’ll always want the advice of a local real estate agent before investing in significant renovations.

Who Is Your Audience?

In any given market, you’ll have different profiles of buyers looking at your home. It could be a young professional who is a first-time buyer, a family looking to upgrade to a larger house or an empty nester looking to downsize. If you’re selling a condo or small townhouse, your listing will not likely attract a move-up buyer. 

On the other hand, a two-storey, four-bedroom home is probably out of reach for most first-time buyers. Why is it important to know this?

• Young first-time buyers may be unable to make upgrades themselves and will likely want something move-in ready. Any renovations should add functionality to the home, but you’ll want to avoid adding luxurious features that unnecessarily drive up the price.
• A downsizer who is selling their family home will have money to spend. They could hire a contractor to renovate the property to fit their needs. However, many would prefer to avoid the hassle altogether. A downsizer with money may appreciate your luxury upgrades much more than a first-time buyer!
• A family with dual income may be looking for a home with a modern touch. A few upgrades to smart technology and an energy-efficient HVAC system may be what you need to stand out.

Knowing who your most likely buyer will be will help you decide what renovations to make and how much to invest. 

The right real estate agent can help you maximize the results of your sale and leave you with more money in the bank after your transaction closes. Find out more in our posts below:

• Fact Vs Fiction About Working With A Real Estate Agent
• Can a Local Agent Sell Your House For More Money?
• How Do Real Estate Agent Fees Work?

Renovations to Avoid

When preparing your house for sale, it’s critical to understand that there’s a difference between renovating for enjoyment and upgrading to add monetary value. For example, adding a swimming pool may give your family years of happiness and fun, which is worth it at any price if you plan to stay in the home. But it doesn’t make any sense to pay $30,000 or more to install a pool that the new owner will remove. Renovations for your enjoyment can end up costing you when the time comes to sell. Other examples may include:

• Adding solar panels
• Installing carpets
• Installing a wine cellar
• Removing a bathtub in favour of a shower only
• Eliminating a bedroom to create an oversized room
• Too many customizations

Top Upgrades That Increase Your Home’s Value

Before deciding to invest any time or money, it is always wise to consult with your real estate agent. As we mentioned, every buyer is different, and conditions vary by neighbourhood. However, many updates almost always pay off, even if it’s just to help your home sell faster in a slow market. 

Your first step is to clean, clean, clean and then clean some more. A thorough cleaning and decluttering of your home costs you nothing but time. But this step alone can help you make a stunning impression on a prospective buyer! 

Here are some other minor updates you can perform that can add significant perceived value to your home:

• Refresh the paint, especially in the kitchen, bathroom, bedrooms and living room. 
• Replace light fixtures. 
• Install new handles on all cabinet and closet doors.
• Replace the silicone around the bathtub and showers.
• Clean up the front yard and add a few seasonal decorations.

When it comes to renovating and preparing your home for sale, less is sometimes more. Done right, a few strategic but minor updates will help you achieve the best results in the least amount of time.

Do you want expert guidance to prepare your home and maximize the value of your sale? Our dedicated professionals are committed to your success and are here to answer any questions you have. Reach out to us right here or call 905-332-9223 to get started. 

What is the value of your house in today’s market? Unfortunately, it’s not an easy question to answer. If the last two years have taught us anything, it’s that the real estate market has its ups and downs, and prices can fluctuate wildly. 

A year can start with an unprecedented seller’s market, with houses selling within days of being listed at amounts far above the asking price. Fast forward to the middle of the year, and properties are sitting on the market unsold. It can and does happen.  

Various factors are at play. Rising interest rates and inflation have worked to cool the real estate market. More than ever, selling a house now comes down to price. If it’s too high or too low, potential buyers show little to no interest. However, the fluctuating market makes it challenging to know how much your home is worth.

How Do Most People Determine Value?

Without professional guidance, homeowners use several methods to determine what they believe their home is worth. Unfortunately, many of these are based on myths and outdated information. Here are a few examples we’ve encountered:

• Looking at the past. This happened frequently after the housing market peaked in early 2022. A house could be appraised at one value, but the onslaught of bidding wars artificially inflated the price, sometimes by hundreds of thousands of dollars. Now that the market has changed, you can’t rely on past information, even if it was only a few months ago.
• Listening to friends and relatives. Your family and friends want the best for you. They want you to earn top dollar when you sell your home. However, just because they sold at a certain amount does not indicate what your house is worth.
• What the competition is doing. Your neighbour may list their house at $2 million. The question is, did it sell? Or did it languish on the market for months? Basing your price on the competition is better than guessing, but it is still not an accurate estimate. You need factual data based on what actually sells.
• An outdated home evaluation. A home evaluation is a better indicator, but even those results can change. You can have a thorough home evaluation one month, only to find the value of your house has completely changed the next.

Knowing the value of your home is just the start. Here are some other things that can help you get the best return on your investment:

• Can a Local Real Estate Agent Sell Your House for More Money?
• How to Stand Out in a Changing Market
• 7 Home Staging Tips You’re Going to Love

Don’t Sweat the Shifting Market

Why would anyone rely on methods that overestimate what a property is worth? A changing market is tough on everyone. It’s hard to accept that a house will not sell for as much as it would have a few short months ago. 

However, it is not all doom and gloom, and there are many fantastic opportunities for both buyers and sellers, even in a slow market.

For example, at the time of this writing, a report by the Canadian Real Estate Association shows that the average house price in Hamilton and Burlington is down approximately 6% over the same time last year. 

A house valued at $1 million at the beginning of the year is now worth $940,000. 

To many people, it feels like $60,000 has disappeared right out of their bank account, but this is not the case. Why? 

First of all, housing prices fluctuate. They are down now but will inevitably rebound soon. Secondly, when you run the numbers, you can see that you haven’t lost anything at all. 

Selling at the highest price possible doesn’t mean much when you also have to pay top dollar to find a new home. We like to quantify success by your purchasing power for your next step, not just the raw dollar figure. For example, you might not like the news that your house is worth $60,000 less. But by the same calculation, the $2 million home you want to upgrade to has also dropped in value by $120,000. In this case, falling prices are working in your favour!

The next step is to sell your current property successfully, and that begins with a solid plan based on facts and data. How do you set a fair price that will attract buyers but still allow a decent return on your investment? Let’s take a look at the best tool in your arsenal, regardless of the market.

Does the news of a shifting market have you feeling stressed? Information is the best cure:

• How to Negotiate a Real Estate Contract
• The Steepest Interest Rate Hike in Decades: Should You Be Worried?
• Interest Rates Are on the Rise: Should You Get a Fixed Rate or Variable?

A Comparative Market Analysis: Your Most Accurate Tool

A Comparative Market Analysis is the number one resource real estate agents rely on to get an accurate estimate of the value of a home. It is meticulously detailed, looking at the residence itself, the construction, the age, the layout and past and current activity. Here is a breakdown of everything covered:

• The size of the home by square footage. Obviously, larger homes typically are valued higher, but there are other factors to consider.
• The layout of the home. Is it an open concept, or are the rooms separate? In the current market, younger buyers often prefer open-concept designs.
• What is the housing structure? It could be a detached family home, a townhouse, a semi-detached or a condo.
• How many bedrooms and bathrooms are in the home? Is the plumbing roughed in for an additional bathroom if the new owner wishes?
• How old is the home? The newer the build, the more valuable it is, as a rule.
• What renovations and improvements have been made? With strategic updates, the value of a resale home can equal or surpass a new build, especially in a desirable neighbourhood.
• Where is the home located? If parks, schools, transit and other amenities are nearby, it makes your home more appealing to many buyers.
• What houses have sold in your neighbourhood recently, and for how much? 

Again, we want to know how much a home actually sold for, not just the listing price. Your real estate agent will have access to these numbers.

The Importance of Current Information

As you can see, a knowledgeable real estate agent leaves no stone unturned to help you find the right price that will get you the best results. However, the market fluctuates, and the value of your home can change depending on supply and demand. If you had a home evaluation several months ago and then decided to wait to sell, your results may no longer be valid.

Fortunately, many real estate teams offer free home evaluations. Obtaining a competitive, up-to-date estimate can be just a phone call away.

Expert Negotiations Are Still a Must

Setting an attractive price point for your home is a critical first step. However, it is just the beginning. You will still need a real estate agent with extensive outreach who can market your home to the most likely buyers. And for the best possible results, you’ll need someone who can negotiate expertly on your behalf. The market can change in the blink of an eye, but a well-thought-out strategy helps you achieve a successful sale anytime.

At Woolcott Real Estate, we offer comprehensive home evaluations at no charge and with no obligation. Find out more about your options right here, or call us today at 905-332-9223 to book an appointment. We are excited to help you get the best results in any market!

It seems unreal that another year is upon us already. However, here we are, just 19 days from welcoming 2023. What will the coming year look like for the real estate market?  

The recent softening of the market may have some people feeling discouraged. Still, there are many reasons to be cautiously optimistic about the year ahead. Let’s take a look at some of the top predictions for 2023.

What We Don’t Expect

Before we get into what we think will happen, let’s talk about one thing we don’t expect. With the sharp interest rate hike in July and the subsequent softening of the real estate market, a sense of fear began to set in. Will the market ever crash again like it did in 2008? While we can’t see that far into the future, no one expects that to happen any time soon.

Even though sales have slowed down, there is too much demand for housing for the market to crash. It isn’t just because the population is growing. In fact, Canada’s new immigration policy nearly assures us that the market will pick up again shortly.

In an uncertain market, it can be difficult to make the decision to buy or sell a home. Here are some of our other resources that can help:

• Should You Wait Until the Timing Is Better to Sell Your Home?
• Tips for Buying Your First Home During a Changing Market
• How to Stand Out in a Changing Market

Immigration Will Affect the Housing Market in 2023

The federal government has recently increased immigration targets, with a goal to bring in 1.45 million permanent residents over the next three years. As a result, we expect approximately 500,000 new immigrants in 2023 alone. Why would the government do this?

You may have noticed “Help Wanted” signs everywhere you go. The Canadian job market has exploded as many people left the workforce during the pandemic, either changing careers or retiring altogether. Currently, there is a shortage of workers across nearly every sector in the country. 

Increasing the number of immigrants is one way to fill these badly needed positions. 

Every single new resident will need accommodations, whether buying or renting. That’s why we believe that the new immigration policy will be a massive boost for the real estate market and the economy as a whole. For homeowners thinking of selling, this is fantastic news. However, buyers may soon begin to notice more competition for available listings.

The Government Will Double Down on Efforts to Build Affordable Housing

Available housing is already in short supply, which led to the real estate boom we experienced over the last two years. Bringing in 500,000 new immigrants will upset this supply and demand even further, putting pressure on provincial and federal governments to address the issue.

Already, there are policies in place to help make housing more available and affordable. The federal Housing Accelerator Fund aims to create 100,000 new homes over the next five years. And according to the Canadian Mortgage and Housing Corporation, Canada will have 19 million new housing units by 2030 if construction continues at the same pace.

Provincially, plans are in place to cut development costs and allow current property owners to build up to three residential units on a single lot.

Interest Rates Will Hit Their Peak

There is no question that rising interest rates were the catalyst for the sudden drop in housing sales. The Bank of Canada raised the rate by a full percentage point in July 2022 in an aggressive attempt to curb inflation.

The impact on the already slowing real estate market was immediate and drastic. Buyers put their plans on hold, and homeowners struggled to sell. However, these sharp interest rate hikes are likely at an end for the time being. At the very least, they will return to more traditional 0.25-point increments.

Some aspects of real estate never change, regardless of the market or the economy. Here are a few things you should know that you can always count on:

• How to Negotiate a Real Estate Contract
• What Real Estate Lawyers Do
• 7 Amazing Benefits of Working With a Real Estate Agent

Housing Prices Will Drop in the Short Term

After the rollercoaster ride of 2021 and 2022, many analysts predict that 2023 will usher in a return to more balanced conditions in the real estate market. The Re/Max 2023 Housing Market Outlook suggests housing prices will drop 3.3% from the 2022 average.

A report by Desjardins goes even further, suggesting that housing prices will drop 25% by the end of 2023.

Even with higher interest rates, that might be enough of a price dip to encourage would-be buyers to get back into the market. This leads us to our next prediction:

Housing Sales Volume Will Increase

Even with falling prices, real estate sales have been slow over the past six months. The fast and furious pace of interest rate hikes shocked the market, which simply needed time to adjust. Now, we are at the nine-month mark from when interest rates began to climb.

During that time, demand for housing hasn’t disappeared. People are still getting married, having babies, looking for larger homes and downsizing. 

A recent survey indicates that the intent to buy a home is back to pre-pandemic levels, with many potential buyers resuming their search in 2023. In October 2022, housing sales began to pick up slightly. Many experts believe that we are now at the “beginning of the end” of the slowdown.

Regardless of what happens, it will be interesting to see how these projections play out throughout 2023. In any case, the one thing we can count on is that the market is unpredictable. Even if every analyst is correct, there are too many variables, regions and micro-markets to base decisions on these predictions. As always, your best bet is to make your move when it is right for you. 

Do you have a move coming up in 2023? We can help you navigate the changing market to get the best possible results, whether buying or selling. Best of all, you can book a free consultation where we will answer any questions you may have. Reach out today right here or call 905-332-9223 to schedule your appointment.

Most people following the real estate market in Hamilton have heard that if you’re going to sell a house, fall or spring are the best times to do it. If that’s the case, then it could be easy for one to surmise that winter and summer must be the worst. 

However, 2021 proved that we can’t always rely on assumptions. Last winter, we saw an unprecedented housing boom where prices reached an all-time high in February. By the time the traditionally busy spring arrived, rising interest rates caused the market to falter. 

It just goes to show you that you can’t predict the market. Your decision to move should be based on when it suits your lifestyle and not on what the market is doing or trying to time it. 

In fact, there are often compelling reasons to sell a house during slow times. Yes, that even means right before the holidays. Let’s take a look at what is happening in Hamilton right now.

A Snapshot of the Hamilton Market

After months of critically low supply and soaring prices, Hamilton is now enjoying a much more stable market. As of the last report by the Canadian Real Estate Association (CREA), the housing supply in Hamilton has risen to 3.5 months’ worth of inventory, which is excellent news for buyers. As a seller, you may have to be more patient since buyers have more options now. 

Buyers tend to have less competition and are not rushing to make a decision like they were earlier in the year. However, as a seller, you can rest assured that plenty of people are still searching for housing. We are already seeing demand start to increase as the market adjusts to the new interest rates. For the second year in a row, the cold months may shape up to be busier than anticipated! Prices may have fallen  from their February peak, but the average cost of a house is still more than $200,000 above pre-pandemic values in 2019.

If you’ve owned your home longer than two years, you stand to make an excellent profit by selling now.

Do you want even more advice for a successful sale? Some of our other recent posts can help:

• Should You Wait Until the Timing is Better to Sell Your Home?
• How to Negotiate a Real Estate Contract
• Fact vs Fiction About Working with a Real Estate Agent

Sellers Face Less Competition in the Winter

In the past, more people have listed their homes for sale in the spring than any other time of year. It makes sense because that’s when most people are looking to buy. On the other hand, it’s also when you’ll face the most competition. Prospective buyers then have many listings to choose from, which gives them more negotiating power.

Depending on the market, you may actually get better results when conditions are slower, and there are fewer houses for sale.

Buyers Are More Motivated

The holiday season may be when the fewest people are looking to buy. That sounds like a disadvantage, but it could work in your favour. Why? 

Anyone buying a house now is doing so for a compelling reason. 

For example, they may be recently divorced or have accepted a new position and need to move quickly. In any case, they are highly motivated to act now. 

As a seller, you’ll have far fewer tire kickers who just want to browse through your home with no intention of buying.

While you still should do everything in your power to maximize your results, it’s nice to know that your position is stronger than you may have believed. 

The Unique Challenges of Selling Before the Holidays

Selling a house right before the holidays presents a unique list of challenges. People are busy, and potential buyers spend more time with their families than looking at houses. When you do book showings, you must make the most of them. Here are a few things to keep in mind to make your listing stand out even when buyers are preoccupied with holiday preparations.

Decorate tastefully but with restraint. Some holiday decor will make your home seem warm and exciting. However, be mindful that not everyone celebrates in the same way. A good rule of thumb is always to keep your personal preferences out of your decor when showing your home to potential buyers. During the holidays, this is more true than ever. Your real estate agent will help you stage your home in a way that feels festive and welcoming but never overbearing.

Inclement weather can be a challenge. You never know what the weather will be like when showing your home during the winter. It might be unseasonably warm and sunny, or there could be a blizzard. You’ll have to be prepared for anything. Consider investing in a durable mat for boots and shoes and post a sign politely asking visitors to remove their footwear. Keeping a Swiffer mop in the foyer closet will help you with last-minute cleanups to keep your home show-worthy during inclement weather.

Are you selling a house and then buying? The articles below will help you enjoy a streamlined purchase:

• The Hidden Gems of Burlington You Need to Know About
• Pre-Qualification vs Pre-Approval: Which is Better?
• Interest Rates Are on the Rise: Should You Get a Fixed Rate or Variable?

Best Practices for a Successful Sale Anytime

No matter when you decide to sell, there are always best practices to help you maximize your results. Preparing your home is an obvious first step. You want buyers to stand up and take notice the minute they walk in the door. As a result, your house should be spotless, and all minor upgrades have been completed. However, you can go even further:

Set your price strategically. Overpricing your home is the most common error sellers make, especially during the off-season. Of course, you don’t want to underprice either. An experienced real estate agent always performs extensive background research to determine the optimum price to attract the most buyers in the current market.

Promote your listing thoroughly. Even during busy times, an effective marketing strategy can result in a more successful sale. When selling before the holiday season, it becomes even more imperative. Your listing should be featured on the MLS® and all major real estate and brokerage websites. Offline feature sheets and just-listed flyers can help reach an older demographic with the means to buy your home. However, keep in mind that you don’t have to attract a ton of buyers–just the right one at the right time!

Set realistic expectations. Patience is the ultimate key to successfully selling your home in the off-market. You can still obtain maximum results, but it may take longer than you realize. During that time, be sure to keep your home ready to show. You never know when a motivated buyer will come through the door!

Always Work With an Experienced Real Estate Team

A local real estate team will help you position your home to attract buyers and sell as quickly as possible. Knowing the market and the nuances of the individual neighbourhoods can mean the difference between undervaluing your home and achieving top dollar- even during the busy holiday season.

Are you ready for a successful sale regardless of what the market is doing? There’s no better way to hit the ground running than with a complimentary home evaluation. You can schedule yours today with no obligation right here. 

When buying an investment property, it’s normal to focus on the business details. You scour the market before finding an ideal property at the right price. From there, you turn your attention to finding and vetting tenants and hopefully establishing a mutually beneficial relationship with someone who stays for the long term.

All of these are critical to your success as a real estate investor, but knowing the legal side is also essential. Understanding your rights and responsibilities will help you avoid many of the traps that even experienced landlords can fall into. This insight is just as much a part of a successful business plan as finding the right property and tenant in the first place.

While this guide is not intended as legal advice, it is a detailed walkthrough of the main points of the Residential Tenancies Act that every landlord should know.

What is the Residential Tenancies Act?

The Residential Tenancies Act (RTA) is a set of laws that outline both the tenant’s and landlord’s responsibilities in Ontario. It covers most residential units, including detached houses, semis, townhouses and apartments. The act generally does not apply to non-profit or subsidized housing, secondary school residences or short-term accommodation rentals.

The RTA governs everything from how much a landlord is allowed to increase the rent year over year to what recourse you have when a tenant damages the property.

Housing prices will always fluctuate, and yet real estate remains one of the safest long-term investments you can ever make. See some of our previous posts for more:

• The Market is Changing. Is Real Estate Still a Good Investment?
• What to Know Before Becoming a Landlord
• How to Sell an Investment Property

Landlord and Tenant Board

The Landlord and Tenant Board (LTB) is a tribunal that interprets the RTA and works to resolve any disputes that arise during the rental agreement.

The LTB also works to ensure that there are no unfair evictions. A landlord must apply for approval before they can legally remove a tenant from their unit.

Most inquiries, concerns and applications can be processed online, by email or by courier.

Ontario Standard Lease

The Ontario Standard Lease is the official contract between a landlord and tenant, containing all details in the agreement, including contact information, the rental amount and due date and whether subletting is allowed. The contract is designed to protect both parties and is required by law in most cases. When completed, both landlord and tenant have a clear understanding of their rights and responsibilities.

It’s important to note that you cannot use a written lease to impose rules that violate a tenant’s legal rights in any way. Some terms are unenforceable even when the tenant signs them, including not allowing pets, forbidding guests or roommates or requiring unauthorized deposits or fees.

Deposits and Payments

Your tenant may agree to pay the monthly rent using a credit card or postdated cheques, but you are not allowed to require it. Once you decide on a method, you can only change it if both parties agree in writing.

You can request that the tenant pay a deposit against their last month’s rent. However, you can’t demand more than the cost of a single month. You cannot request prepayment in advance for multiple months. Another thing that many landlords don’t realize is that you are required to pay interest each year on the deposit.

Many landlords also believe they are entitled to collect various deposits from their tenants, but only two are permitted under Ontario law:

1) A last month’s rent deposit

2) A key deposit.

Contrary to popular belief, deposits for damages, smoking, cleaning or pets are illegal.

Once you’ve decided to invest, the next big question is where? Here are some posts that can help you decide:

• Where to Invest in Real Estate in Ontario
• Hamilton vs Toronto: Which City Should You Choose?
• The Hidden Gems of Burlington You Need to Know About

Recourse for Damages

Since you can’t legally require a damage deposit, what recourse do you have? All disputes are handled by the LTB, which will decide who is responsible to cover the cost of repairs. 

To ensure a fair process, both landlord and tenant should walk through the home together to conduct a move-in checklist. When the tenant leaves, the home should be in the same condition. 

Rent Increase Guidelines

Once the rental agreement is signed, you cannot increase your tenant’s rent for at least 12 months from the time they moved in or from the last increase.

After 12 months, you can raise the rent by the amount specified by the Ontario government standards.

What if your own expenses have increased or you’ve taken on extensive upgrades? You can apply to the LTB to approve your request. Random increases will likely be denied, but the LTB may approve a larger amount if you can prove that your own expenses justify it.

Your Obligations as a Landlord

A few simple guidelines will help your relationship with your tenant run smoothly. Your tenant will be happy, increasing the chances that they will stay for the long term. Your primary responsibility as a landlord is to provide and maintain a unit that complies with all health, safety and maintenance standards.

Remember that they have the right to reasonable enjoyment of their home, and of course, you can’t bully, harass or threaten your tenant under any circumstances.

Your Right to Enter the Premises

Your tenant has the right to privacy, and you can’t simply barge in whenever you want even though you are the property owner. You have the right to enter your tenant’s home whenever you have reasonable grounds and provide 24 hours’ notice. These reasons will be primarily to conduct maintenance and repairs or to perform an inspection of the property.

As with any rule, there are exceptions. You can enter the unit without notice in case of an emergency or whenever a tenant consents.

What Happens if a Tenant Doesn’t Pay?

Having to chase rent payments can be exasperating. As an investor, you have your own expenses, and you rely on those funds to hold and maintain your property. What recourses do you have if your tenant cannot or will not pay?

You are entitled to receive your payment as outlined in your contract. However, there are limits to what you can and cannot do.

• You can’t turn off any essential services like heat, hydro, hot water or gas.
• You can’t confiscate your tenant’s personal belongings in lieu of rent.
• You can’t lock them out of the unit unless you have an eviction order from the LTB.

If your tenant doesn’t pay, you can give them notice of termination of the rental agreement after 14 days. Often, this is enough to get results. Finding a new place to live is no easy task, and your tenant likely doesn’t want the headache.

However, you may have to escalate if there is still no resolution. After giving your tenant notice, the next step is to apply to the LTB to terminate the agreement and begin the eviction process.

Ending Your Rental Agreement

If either party wishes to end the agreement before the lease expires, there may be some financial penalty. However, neither of you is locked in, and you can void the tenancy at any time by providing written notice. When the landlord asks the tenant to vacate, it could fall under two categories:

1. For cause: Where the tenant failed to pay rent, damaged the property, disturbed others in the area or engaged in illegal activity on the premises.
2. No fault: When the landlord wants the property for their own use, either for a family member to move in or to sell it.

Keep in mind, if you ask your tenant to leave so you or a family member can move in, you are generally required to cover the last month’s rent on your tenant’s behalf.

Staying on the right side of the LTA won’t just help you stay out of legal trouble. It will cement your reputation as an ethical landlord and help you achieve longer tenancies and enjoy a more profitable long-term investment.

Are you searching for your next successful investment opportunity? We can help you spot exactly what you’re looking for. Reach out to us today for a free, no-obligation consultation or call 905-332-9223 to connect with us immediately.

When you think of what’s involved in a real estate transaction, you likely think of everything before the sale. For the seller, there’s the home preparation, photographs and marketing to find the most qualified buyers. For the house hunter, going to showings and choosing your home are what stands out. Few people think about what happens after the fact, once the paperwork is signed but before the closing date. 

However, the closing process is critical to ensure a seamless transfer of ownership. When something is off legally, the transaction can fall through. Even worse, there can be lawsuits. Real estate contracts are legally binding, with potentially severe consequences when breached. Unfortunately, legal jargon is nearly impossible for a layperson to understand, never mind follow to the letter. But what exactly does a real estate lawyer do, and do you really need one?

A Real Estate Lawyer is Always Required–to Some Degree

While not recommended, you could negotiate the terms of the purchase agreement if the contract is simple enough. However, The Land Registration Reform Act of Ontario requires a lawyer to examine the title before any ownership transfer can occur. The lawyer steps in to make sure all the i’s are dotted and t’s are crossed to eliminate any issues before they arise. 

Your lawyer will pour over the purchase agreement to see that every clause is valid and can advise you whether any conditions will impact the house closing. They also inspect the property title to find out if there are any liens or outstanding taxes.

If the property is a condo, the lawyer will thoroughly review the status certificate, ensuring that the management company has the required reserves to maintain the building. This gives you peace of mind that you won’t get dinged with a hefty and unexpected assessment fee after your purchase.

Whenever complications or disputes arise, you’ll always want a good lawyer in your corner.

Looking for more facts that can help you succeed in real estate? These resources may be helpful:

• How to Negotiate a Real Estate Contract
• Pre-Qualification Vs Pre-Approval: What’s Better?
• How to Stand Out in a Changing Market

Buying a Home? Add in a Clause for Your Lawyer to Review

Making an offer to purchase can get complicated on large transactions like real estate. You have to put a lot of thought into the market to know how much to offer and what, if any, conditions you should place to protect yourself. 

Your real estate agent is there to help you get the best possible price and terms. But did you know that a real estate lawyer can help create a bulletproof offer? For example, you’re probably already familiar with certain conditions buyers often place when bidding on a home. Conditions of home inspection and condition of financing are two of the most common clauses you’ll see.

However, many people don’t realize that you can even include a condition of legal review. This allows you to have your lawyer inspect the offer before it becomes binding and can save you a lot of headaches during the close.

Woolcott Real Estate is one of the top teams in Burlington and Hamilton for a reason. Find out more about our selling process here.

Selling? How a Lawyer Protects Your Financial Interests

When selling a home, your real estate lawyer works to ensure the buyer follows through with all of their commitments, including submitting the deposit and down payment on time. Your lawyer will also uncover any problems with the property title and resolve them before they affect your closing.

Working with a highly qualified real estate lawyer brings peace of mind to what might otherwise be a stressful transition!

Can the Buyer and Seller Use the Same Lawyer?

Ontario law generally prohibits the buyer and seller from using the same lawyer. As you can imagine, this could become a significant conflict of interest and detrimental to both parties. However, there are some exceptions to this rule:

• When the buyer and seller are considered related under the Income Tax Act
• When the transferor and transferee are the same person, and the transfer takes place to sever land
• A transfer between an estate trustee and the beneficiary
• In a remote area where finding separate lawyers represents an undue inconvenience

Most Common Legal Pitfalls in Real Estate

Now that you know the importance of working with an experienced real estate lawyer, let’s look at some of the most common legal pitfalls and how to avoid them.

• Errors in drafting the purchase agreement. Big or small, errors in the contract can cause the property not to close or result in a lawsuit after the fact.
• One party wants to back out after the market changes. Legally, it’s not allowed, but breaches do happen, especially when a property dramatically changes in value after the papers are signed. Having a lawyer review the contract reduces the chances of last-minute problems.
• Misunderstanding zoning laws. A buyer might purchase a property with the intention of performing significant renovations. Checking the zoning laws before agreeing to purchase is critical.
• Disputes over chattels and fixtures. What is included in the offer and what is not? Both parties must be on the same page.
• Seller representations and warranties. The seller is obligated to disclose certain facts about the property, and must honour all stated warranties.

A successful sale begins with knowing how much your house is worth in today’s market. Book your free home evaluation here.

Finding a Good Lawyer

It’s not every day that you’re buying or selling a home. As a result, you may not have a lawyer in mind or a plan to find one. You can try searching through Google reviews to see a lawyer’s track record from previous clients. 

However, the best way to find the right professional for you is often through your network. Your real estate agent will have connections with trusted experts in every field you can imagine. Finding a qualified real estate lawyer is often as simple as asking for a recommendation.

Do you have questions about what it’s like to buy or sell in the current market? Our local experts are standing by and ready to answer your questions, big or small. Reach out to us today.