what is an assignment sale

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10 Essential Things to Know About Real Estate Assignment Sales (for Sellers)

— We take our content seriously. This article was written by a real person at BREL.

What’s an assignment?

An assignment is when a Seller sells their interest in a property before they take possession – in other words, they sell the contract they have with the Builder to a new purchaser. When a Seller assigns a property, they aren’t actually selling the property (because they don’t own it yet) – they are selling their promise to purchase it, along with the rights and obligations of their Agreement of Purchase and Sale contract. The Buyer of an assignment is essentially stepping into the shoes of the original purchaser.

The original purchaser is considered to be the Assignor; the new Buyer is the Assignee. The Assignee is the one who will complete the final sale with the Builder.

Do assignments only happen with pre-construction condos?

It’s possible to assign any type of property, pre-construction or resale, provided there aren’t restrictions against assignment in the original contract. An assignment allows a Buyer of a any kind of home to sell their interest in that property before they take possession of it.

Why would someone want to assign a condo?

Often with pre-construction sales, there’s a long time lag between when the original contract is entered into, when the Buyer can move in (the interim occupancy period) and the final closing. It’s not uncommon for a Buyer’s circumstances to change during that time…new job out of the city, new husband or wife, new set of twins, etc. What worked for a Buyer’s lifestyle 4 years ago doesn’t always work come closing time.

Another common reason why people want to assign a contract is financial. Sometimes, the original purchaser doesn’t have the funds or can’t get the financing to complete the sale, and it’s cheaper to assign the contract to a new purchaser, than it is to renege on the sale.

Lastly, assignment sales are also common with speculative investors who buy pre-construction properties with no intention of closing on them. In these cases, the investors are banking on quick price appreciation and are eager to lock in a profit now, vs. waiting for the original closing date.

What can be negotiated in an assignment sale?

Because the Assignee is taking over the original purchaser’s contract, they can’t renegotiate the price or terms of the contract with the Builder – they are simply taking over the contract as it already exists, and as you negotiated it.

In most cases, the Assignee will mirror the deposit that you made to the Builder…so if you made a 20% deposit, you can expect the new purchaser to do the same.

Most Sellers of assignments are looking to make a profit, and part of an assignment sale negotiation is agreeing on price. Your real estate agent can guide you on price, which will determine your profit (or loss).

Builder Approval and Fees

Remember that huge legal document you signed when you made an offer to buy a pre-construction condo? It’s time to take it out and actually read it.

Your Agreement of Purchase & Sale stipulated your rights to assign the contract. While most builders allow assignments, there is usually an assignment fee that must be paid to the Builder (we’ve seen everything from $750 to $7,000).

There may be additional requirements as well, the most common being that the Builder has to approve the assignment.

Marketing Restrictions

Most pre-construction Agreements of Purchase & Sale from Toronto Builders do not allow the marketing of an assignment…so while the Builder may give you the right to assign your contract, they restrict you from posting it to the MLS or advertising it online. This makes selling an assignment extremely difficult…if people don’t know it’s available for sale, how they can possibly buy it?

While it may be very tempting to flout the no-marketing rule, BE VERY CAREFUL. Buyers guilty of marketing an assignment against the rules can be considered to have breached the Agreement, and the Builder can cancel your contract and keep your deposit.

We don’t recommend advertising an assignment for sale if it’s against the rules in your contract.

So how the heck can I find a Buyer?

There are REALTORS who specialize in assignment sales and have a database of potential Buyers and investors looking for assignments. If you want to be connected with an agent who knows the ins and outs of assignment sales, get in touch…we know some of the best assignment agents in Toronto.

What are the tax implications of real estate assignment?

Always get tax advice from a certified accountant, not from the internet (lol).

But in general, any profit made from an assignment is taxable (and any loss can be written off). The new Buyer or Assignee will be responsible for paying land transfer taxes and any HST that might be due.

How much does it cost to assign a pre-construction condo?

In addition to the Builder assignment fees, you will likely have to pay a real estate commission (unless you find the Buyer yourself) and legal fees. Because assignments are more complicated, you can expect to pay higher legal fees than you would for a resale property.

How does the closing of an assignment work?

With assignment sales, there are essentially 2 closings: the closing between the Assignor and the Assignee, and the closing between the Assignee and the Builder. With the first closing (the assignment closing) the original purchaser receives their deposit + any profit (or their deposit less any loss) from the Assignee. On the second closing (between the Builder and the Assignee), the Assignee pays the remaining amount to the Builder (usually with the help of a mortgage), and pays land transfer taxes. Title of the property transfers from the Builder to the Assignee at this point.

I suppose it could be said that there is a third closing too, when the Buyer takes possession of the property but doesn’t yet own it…this is known as the interim occupancy period. The interim occupancy occurs when the unit is ready to be occupied, but not ready to be registered with the city. Interim occupancy periods in Toronto range from a few months to a few years. During the interim occupancy period, the Buyer occupies the unit and pays the Builder an amount roughly equal to what their mortgage payment + condo fees + taxes would be. The timing of the assignment will dictate who completes the interim occupancy.

Assignments vs. Resale: Which is Better?

We often get calls from people who are debating whether they should assign a condo they bought, or wait for the building to register and then sell it as a typical resale condo.

Pros of Assigning vs. Waiting

Get your deposit back and lock in your profit sooner
Avoid paying land transfer taxes
Avoid paying HST
Maximize your return if prices are declining and you expect them to continue to decline
Lifestyle – sometimes it just makes sense to move on

Cons of Assigning vs Waiting

The pool of Buyers for assignment sales is much smaller than the pool of Buyers for resale properties, which could result in the sale taking a long time, getting a lower price than you would if you waited, or both.
Marketing restrictions are annoying and reduce the chances of finding a Buyer
Price – What is market value? If the condo building hasn’t registered and there haven’t been any resales yet, it can be difficult to determine how much the property is now worth. Assignment sales tend to sell for less than resale.
Assignment sales can be complicated, so you want to make sure that you’re working with an agent who is experienced with assignment sales, and a good lawyer.

Still thinking of assignment your condo or house ? Get in touch and we’ll connect you with someone who specializes in assignment sales and can take you through the process.

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Raj Singh says:

What can be things to look for, especially determining market value for an assigned condo? I’m the assignee.

Sydonia Moton says:

Y would u need a lawyer when u buy a assignment property

Gideon Gyohannes says:

Good clear information!

Who pays the assignment fee to the developer? Assignor or Assignee?

Thanks Gideon 416 4591919

Melanie Piche says:

It’s almost always the Seller (though I suppose could be a point of negotiation).

Fiona Rourke says:

If there are 2 names on the agreement and 1 wants to leave and the other wants to remain… does the removing of 1 purchaser constitute an assignment

Brendan Powell says:

An assignment is one way to add or remove people from a contract, but not the only way…and not the simplest. Speak to your lawyer for advice on what makes the most sense for your specific situation. For a straightforward resale purchase you could probably just do an amendment signed by all parties. If it’s a preconstruction purchase with various deposits paid, etc it could be more complicated.

Katerina says:

Depends on the Developer. Some of them remove names via assignments only.

Haroon says:

Is there any difference in transaction process If assigner or seller of a pre constructio condo is a non resident ? Is seller required to get a clearance certificate from cRA to complete the transaction ?

Nathalie says:

Hello , i would like to know the exact steps for reassignment property please.

Amazing info. Thanks team. I may just touch base with you when my property in Stoney Creek is completed in. 2020. I may need to reassign it to someone Thanks

Victoria Bachlowa says:

If an assignor renegs on the deal and refuses to close because they figured out they could get more money and the assignment was already approved by the builder and all conditions fulfilled what can the Assignee do. I have $33,000 dollars in trust in the real estate’s trust fund. They sent me a mutual release which I have not signed. The interim occupancy is Feb. 1 and the closing is schedule for Mar. 1, 2019. I have financing in place, was ready to move in Feb. 1 and I have no where to live.

Definitely talk to your lawyer right away. They’ll want to look at your agreement of purchase and sale and will be able to advise you.

With assignment sales, there are essentially 2 closings: the closing between the Assignor and the Assignee, and the closing between the Assignee and the Builder. With the first closing (the assignment closing) the original purchaser receives their deposit + any profit (or their deposit less any loss) from the Assignee. Can I assume that these closing happen at the same time? I’m not sure how and when I would be paid as the Assignor.

What happens to the deposits or any profits already paid if the developer cancels the project after an assignment?

Hi, Did you get answer to this? I did an assignment sale last year and now the builder is not completing apparently and they are asking for their money back. Can they do that? After legal transactions, the lawyer simply said “the deal didn’t go through”. Apparently builder and the person who assumed the assignment agreed on taking out the deal. What do I have to pay back after it was done a year ago

This is definitely a question for your lawyer – as realtors we are not involved in that part of the transaction. I would expect that just as the builder would have to refund your deposits, you would likely need to do the same…but talk to your lawyer. As to whether the builder can cancel a project, yes they always reserve that right (but the details of how and under what circumstances would be in your original purchase agreement). It’s one of the annoying risks in buying preconstruction!

I completed the sale of my assignment in Dec 2015 however the CRA says I should be reporting the capital income in 2016 when the assignee closed his deal with the developer in July 2016. That makes no sense to me since I got all my money in Dec 2015. Can you supply any clarification on that CRA policy please?

You’d have to talk to the CRA or an accountant – we’re real estate agents,so we can’t give tax advice.

Hassan says:

Hello, You said that there are two closings. The first one between the assignor and the assignee and the second one between the builder and the new buyer (assignee). My question is that in the first closing does the assignee have to pay the assignor the deposit they have paid and any profit in cash or will the bank add this to the assignee’s mortgage?

The person doing the assigning usually gets their money at the first closing.

Kathy says:

What is the typical real estate free to assign your contract with the builder ?

Hi Kathy While we do few assignments (as they are rarely successful, and builders do not make it easy), in past we have charged more or less the same as we do for a typical resale listing. While there are elements to assignments that should be easier than a resale (eg staging), many other aspects of assignments are much MORE time-consuming, and the risk much higher since attempts to find a buyer for assignments are often unsuccessful. It’s also important to note that due to the extra complication, lawyer’s fees to assign are typically higher than resale as well–although more $ for the purchase side vs the sale side.

Mitul Patel says:

If assignee has paid small amount of deposit plus the original 25% deposit that the assignor has paid to the builder and gets the Keys to the unit since interim possession has been completed, when the condo registration is done and assignee is getting mortgage from the Bank or Pays the remaining balance to the Builder using his savings and decides not to pay the Balance of the Profit amount to Assignor, what are the possibilities in this kind of scenario?

You’d need to talk to a lawyer to find out the options.

David says:

How much exactly do brokers get paid at sale of Assignment? i.e. Would the broker’s fee be a % of your assignment selling price or your home’s selling price? I’m really looking for a clear answer.

I am using this website’s calculator associated with selling your home in Ontario. But there is no information on selling assignments. https://wowa.ca/calculators/commission-calculator-ontario

Realtors set their own commission, so there is no set fee- that website is likely the commission that that agent offers. We often see commissions of 4-5% for assignments. The fee is a % of the price of the assignment – for example, you originally bought for $500K; you’re now assigning for $600K – commission would be payable on the $600K.

Candace says:

Question: if i bought a pre construction condo, can i sell it as soon as it closes or do i have to live in it for 1 year after closing in order to avoid capital gains taxes?

Or does the 1 year start as soon as you move in?

I would suggest you talk to your accountant re: HST credit implications and capital gains, but if you sell it for more than you paid for it, capital gains usually apply.

You mention avoid paying HST when you assign your property. What is the HST based on? It’s not a commercial property that you would pay HST. Explain. Thanks.

HST and assignments are complex and this question is best answered specific to your situation by your accountant and real estate lawyer. In some cases HST is applicable on assignment profits – more details can be found on the CRA website here:

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/gi-120/assignment-a-purchase-sale-agreement-a-new-house-condominium-unit.html

If you are a podcast listener, the true condos podcast is also a great resource.

https://truecondos.com/cra-cracking-down-on-assignments/

heres one for your comment, purchase pre construction from builder beginning of 2021, to be finished end of 2021, (semi detached) here we are end of 2022, both units are now ready. Had one assigned but because builder didnt accept within certain time frame(they also had a 90 day clause wherein we couldnt assign prior to 90 less firm closing date (WHICH MOVED 4 TIMES). Anyrate now we have a new assinor but the builder says we are in default from the first one and wants 50k to do the assignment (the agreement lists the possibility of assigning for 12k) Also this deal would include us loosing our whole deposit and paying the 12k(plus fees) would be in addition too the 130k we are already loosing. The second property we are trying to close but interest rates are riducous, together with closing costs(currently mortgage company is asking that my wife be added to that one, afraid to even ask this builder. Any advice on how to deal with this asshole greedy builder? We are simply asking for assignment as per contract and a small extension for the new buyer(week or two) Appreciate any advice. Thank you

Dealing with builders/developers can be extremely painful, much worse than resale transactions in our experience. Their contracts are written to protect THEM. Unfortunately all I can say is follow the advice of your lawyer.

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AssignToday Blog

10 Essential Things To Know About Real Estate Assignment Sale (For Sellers)

What is an assignment.

As the name implies, an assignment is when the original buyer of a property gives up their rights to that contract and assigns it to another buyer (Assignee).

An assignment is different from a sale of property because in a sale both parties (the seller and buyer) are involved; and in an assignment, the seller transfers their rights, interest and benefits under their contract to another buyer. The seller can assign their contract before or after closing day.

When does someone need to assign a real estate purchase contract?

When should you assign your contract?

If you are unable to complete the purchase of a property for whatever reason, but would like to move forward with another buyer and give them an opportunity to buy the property at an agreed upon price, then an assignment may be right for you. Some common reasons why someone might need to assign a real estate purchase contract include:

Financial hardship due to job loss or sudden illness
Move to different city/ country
Personal reasons like marriage, children or birth of newborn
Death or incapacitation of the original buyer
Loss of financing
Original buyer looking to sell off to earn profit (speculative buying)

Is it legal to assign a contract?

The short answer is yes, it’s legal to assign contracts. However, there are certain things you need to know about how this process works before you decide whether or not you want to go through with it.

The first thing you should know is that assigning a contract isn’t a casual decision—it’s a legal document. When you sign an assignment agreement, you’re entering into an agreement with another party (the buyer) where they agree to take over your responsibilities under the original contract.

The second thing worth mentioning here is that while assignments aren’t necessarily uncommon occurrences––especially when dealing with multiple parties––they can be tricky because they often involve changing hands during different stages of closing proceedings which can make things unnecessarily complicated sometimes if not done correctly or thoroughly enough beforehand

How do assignments work?

An assignment is a transfer of a seller’s interest in the contract. In other words, it’s when a buyer assigns their rights under a contract to someone else. This can happen before closing or after closing and both scenarios have different implications for the original buyer (the assignor), as well as the new buyer who has taken over their position (the assignee).

Here’s how it works: The assignor transfers his or her interest in the contract to another person—this is known as an “assignment.” In order for this transfer to take place legally, four conditions must be met:

Both parties must agree on how much money will be exchanged between them;
Any existing obligations between either party must be transferred over without interruption;
All future obligations that arise from signing onto this agreement must also be transferred over without disruption;
And finally, if there are any fees associated with making this switch then those need to be paid

Are there any restrictions on assignments of purchase contracts?

The answer, in a nutshell: No.

The law does not restrict assignments of purchase contracts. In other words, if you want to assign your contract to another buyer or seller, you can do so freely and without penalty—as long as both parties have signed the contract and the sale has closed (or gone into escrow).

Can I assign my purchase contract to anyone?

The answer to this question is a resounding Yes.

You can assign your contract to anyone you like, as long as they meet the seller’s requirements for buyers.

For example, if your purchase contract requires that buyers have good credit and that they put down 20% in earnest money, then only someone who meets these criteria will be able to take over your contract.

So, who might assign their purchase contract? Here are some examples:

Family members
Friends (or friends-of-friends)
Real estate agents (particularly agents who specialize in assignments)

Can the buyer and seller agree to set a price for the contract assignment before it happens?

The answer is Yes, but it’s not necessary or recommended.

The reason is that once an assignment has been documented, there are no further negotiations between the buyer and seller on that contract. So there’s no need for any further discussion about price in advance of closing (unless you want to include some kind of non-binding agreement).

If you want to see what your property might sell for when it comes time to assign your contract, talk with an agent who specializes in negotiating contracts after they have already been signed by both parties.

What happens to deposits paid by the original buyer (the assignor)?

The deposit is usually returned to the assignor.
The deposit is sometimes not returned to the assignor (typically if the buyer was a good one)
The deposit is always returned to the original buyer if that person is still in contract with you and wants to take over as their own private party sale (PPS).

How do I find an end buyer for my property assignment?

There are several ways you can find an end buyer for your property assignment:

Ask your real estate agent. Your agent should know of buyers interested in purchasing assignments, or at least be able to refer you to someone who can help.
Ask your real estate lawyer (or real estate broker). Your attorney may also be able to refer you to a buyer’s attorney he or she knows and trusts personally, many lawyers have clients looking for properties like yours all the time
Submit Your Assignment on Assign Today. Post your property on AssignToday.Com , lot of buyers are looking to take advantage of assignment sale via our website.

If you’re thinking of buying and selling a pre-construction home, you should understand how real estate assignment sales work.

In short: An assignment sale allows buyers who have already put down their deposits on a property to transfer their contract over to another buyer.

This means that while they are still legally obligated to complete the deal, they can make a profit by selling their right to buy the home at its current market value.

The seller will then go ahead with the original sale and collect an additional commission for facilitating this transaction.

While this might sound like an easy way for sellers to make money off of homes that haven’t sold yet (and potentially even get paid twice), there are some things you should keep in mind before taking advantage of real estate assignment sales yourself: you should connect with the Real Estate Professional who specializes in buying and selling preconstruction homes.

Meghna Negi

What Is an Assignment Sale? Understanding the Ins and Outs of This Real Estate Process

An assignment sale occurs when the original buyer of a property (the assignor) transfers their rights and obligations of the property contract to another buyer (the assignee) before the official closing of the sale.

This process allows the assignee to step into the original purchaser's shoes, taking on the commitments of the property purchase, which could be a pre-construction condo, house, or any other form of real estate.

Now, let's delve deeper into understanding how assignment sales work, their intricacies, and what they mean for buyers and sellers in the real estate market.

Demystifying the Elements of an Assignment Sale

Embarking on a real estate journey often introduces many terms and processes that may seem complex at first glance, with 'assignment sales' leading the pack in complexity and confusion.

Whether you're the original buyer looking to navigate away from closing costs or a savvy purchaser hunting for a valuable investment, understanding the nuts and bolts of assignment sales is an invaluable asset in the dynamic landscape of real estate.

How Assignment Sales Work

Assignment sales introduce a unique dynamic in real estate transactions, particularly in bustling markets like Vancouver Island and the Sunshine Coast .

When you buy a pre-construction unit, the property is yours, albeit not immediately ready for occupation. Life changes or financial circumstances sometimes evolve between the original purchase agreement and the final closing, necessitating a shift in plan.

Here's where assignment sales come into play. The original buyer can sell their interest in the property before the final sale, sidestepping typical hurdles like mortgage payments or land transfer taxes that come with a regular sale. This method provides a strategic avenue for purchasers to hand over their contractual obligations to another party without waiting for the property's completion.

The Assignment Clause: A Vital Cog in the Wheel

The assignment clause in the original contract is central to these types of transactions. This clause allows the transfer of the buyer's rights and responsibilities to another person.

It's crucial to understand that not all pre-construction sales agreements have an assignment clause, and most builders or developers might impose restrictions or require consent before any assignment deal can proceed.

Understanding the Financials: Costs and Fees

Engaging in assignment sales tends to involve several costs that both the buyer and seller must anticipate.

These include the assignment fee charged by the developer, legal fees for contract transfer, and possibly higher legal fees due to the complexity compared to a resale property. There could also be tax implications depending on the nature of the transaction and the parties involved.

Navigating Through the Interim Occupancy Period

A common scenario in assignment sales, especially in pre-construction condos, is dealing with the interim occupancy period.

This period arises when the assignee can take possession (though not ownership) of the unit while the property is not officially registered. During this phase, the assignee pays occupancy fees, akin to rent, which don't go towards mortgage payments.

Understanding this period helps both parties make an informed decision and prepare for the financial responsibilities it entails.

The Pros and Cons of Assignment Sales

Navigating assignment sales requires a balanced understanding of its advantages and drawbacks. While these transactions open avenues for lucrative deals and flexible arrangements, they also carry inherent risks and complexities that can impact buyers and sellers.

This exploration will provide clear insights, aiding your decision-making in the vibrant real estate market.

The Bright Side: Benefits of Assignment Sales

Less Competition, More Opportunities: One advantage that makes assignment sales attractive, particularly in areas prone to bidding wars like Vancouver Island , is less competition. Fewer buyers are willing or informed about engaging in this kind of sales transaction, reducing the frenzy often seen in hot real estate markets. This situation can present a more favourable buying environment for those ready and willing to proceed with an assignment purchase.
Potential for a Better Deal: For buyers, assignment sales sometimes offer the opportunity to get into a brand-new unit at a potentially lower cost. Since the assignee is stepping into an existing agreement, they might benefit from the original purchase price, which could be lower than current market rates, especially in fast-growing communities.
Flexibility for the Original Buyer: For the original buyer, an assignment sale offers a way out, potentially recouping the deposit paid and avoiding financial penalties that might come with breaking a purchase agreement. This strategy can be particularly advantageous if the purchaser's circumstances change and needs to free up cash or avoid taking on a mortgage.

The Flip Side: Challenges and Risks of Assignment Sales

Complexity and Higher Legal Fees: Assignment sales are not your straightforward real estate transaction. They require additional steps, such as securing the developer's consent, and the legal process is more complex than purchasing resale properties. As a result, both parties might incur higher legal fees to facilitate the transaction.
Financial Overheads and Closing Costs: For the assignee, the initial cost outlay can be substantial for the assignee. They must reimburse the original buyer's deposit, pay the assignment fee, cover land transfer taxes, and prepare for other closing costs. These expenses require careful consideration and financial planning.
Uncertainties and Marketing Restrictions: In some cases, developers impose marketing restrictions, making it challenging to advertise the assignment sale. Additionally, the assignee, now the new buyer, takes on certain risks like development charges or changes in market conditions, which could affect the property's value upon final closing.

Making the Move: Deciding If an Assignment Sale Is Right for You

Deciding to engage in an assignment sale is a pivotal moment, requiring a blend of financial foresight and market understanding.

As we delve into this decision-making process, we'll consider critical personal and economic factors that ensure you're making a choice that aligns with your real estate ambitions and lifestyle aspirations.

Conduct Due Diligence: Know What You're Getting Into

Involving real estate agents experienced in assignment sales is a prudent step for guidance through the intricacies of these transactions.

Also, consulting with a real estate lawyer ensures you understand the legalities, your rights, and any potential liabilities you might be assuming.

Consider Your Financial Standing and Long-Term Goals

Reflect on your current financial health and future plans.

For original buyers, if life changes dictate a change in your real estate investments, an assignment sale could be a viable exit. For potential assignees, consider whether this buying pathway aligns with your investment strategy and if you're comfortable with the associated risks.

Stay Informed About Market Conditions

Market dynamics greatly influence real estate valuations. A clear picture of current trends, especially in your buying area (like Fort St John or cities in the Okanagan ), helps make an informed decision.

Understanding these trends could offer insights into whether you're setting yourself up for a profitable investment or a potential financial misstep.

Bringing It All Home with LoyalHomes.ca

Navigating the world of assignment sales can be a complex journey, laden with opportunities and pitfalls. Whether you're considering selling your contractual rights or stepping into an existing purchase agreement, the route is layered with legal, financial, and market considerations.

At Loyal Homes, we understand that your real estate journey is more than just a transaction; it's a pivotal chapter in your life story. We're here to guide you through each step, ensuring you're equipped with the local, accurate, and relevant information to make decisions confidently. Our team is committed to providing a service that stands a notch above the rest, focusing on relationships and community at its core.

Ready to take the next step in your real estate adventure in British Columbia? Whether it's finding the perfect neighbourhood, exploring investment opportunities, or seeking your dream home, we're here to assist.

For a personalized experience tailored to your unique needs, consider our Personalized Home Search . If you're on the selling side and need to understand your property's current market standing, request a Free Home Valuation . Or, for any other inquiries or guidance, feel free to contact us . Your journey to a successful real estate experience in British Columbia starts with LoyalHomes.ca, where your peace of mind is our highest priority.

Frequently Asked Questions

Is it good to buy an assignment sale.

Buying an assignment sale can be advantageous, offering lower purchase prices compared to current market rates for similar properties, especially in hot real estate markets. However, this venture also requires thorough due diligence to ensure that the agreement terms, property details, and financial implications align with your investment goals.

Can You Make Money on an Assignment Sale?

Yes, there is a potential to make money on an assignment sale, particularly if the property's value has increased since the original purchase date. This profit occurs due to appreciation over the period, especially in high-demand areas, but it's crucial to factor in any assignment fees, legal costs, and tax implications to understand the net gainfully.

What Are the Risks of Buying an Assignment Sale?

The risks include a lack of guarantees on the final product as specifications might change, potential delays in construction, and complexities in financing, often requiring a more substantial initial deposit. These elements underscore the importance of legal counsel to navigate contract specifics and to prepare for any contingencies or additional costs.

How Do I Sell My Pre-Construction Assignment?

Selling a pre-construction assignment involves marketing to potential buyers, typically requiring the developer's consent and possibly entailing a fee. Engaging with a real estate professional who understands the local market nuances and legalities of assignment sales is essential to ensure a smooth, compliant transaction.

Do I Pay Tax on Assignment Sale?

Tax implications on assignment sales can be multifaceted, potentially involving income tax on profits and GST/HST on the purchase, depending on factors like the property type and the seller's tax status. It's advisable to consult with a tax professional to accurately determine specific obligations and strategize for tax efficiency based on your circumstances.

What Is the Difference Between a Transfer and an Assignment?

A transfer and an assignment differ significantly; a transfer involves changing property ownership after a project's completion, whereas an assignment sells one's interest in a property before it's finished. Understanding this distinction is crucial as it affects the contractual obligations, rights transferred to the new buyer, and the legal and financial processes involved in the transaction.

Photo: @ irina88w via Canva.com
Photo: @ AndreyPopov via Canva.com
Photo: @ putilich via Canva.com

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Real Estate Definition: Assignment Sale

When a buyer enters into a purchase agreement for a pre-constructed or newly built property, they may find themselves in a situation where they no longer wish to proceed with the purchase. In such cases, the buyer can assign their rights and obligations under the agreement to a new buyer – and this is where an assignment sale comes in.

What is an Assignment Sale?

An assignment sale refers to a sales transaction in which the original buyer of a property (“assignor”) transfers their rights and obligations of the Agreement of Purchase and Sale to another buyer (“assignee”) before the original buyer takes possession of the property. The assignee then becomes responsible for completing the deal with the seller. Essentially, an assignment clause allows the buyer to sell the property before they move in. While assignment sales can occur with both homes and condos , they are more common among buyers of pre-construction condos.

Factors to Consider Before Entering an Assignment Sale

While assignment sales can be advantageous, it is crucial for both the original buyer and the new buyer to consider certain factors before entering into such transactions.

Developer’s Consent

Before proceeding with an assignment sale, you must obtain the developer’s consent. Some developers may have strict rules or restrictions, and failure to comply can lead to legal complications.

Assignment Fees

The assignor may charge an assignment fee to the new buyer for transferring their rights and obligations. This fee can vary depending on the market conditions and the specific terms of the Assignor-Assignee Agreement.

Legal Advice

Both parties should seek legal advice before entering into an assignment sale. This ensures that all parties understand their rights, obligations, and potential risks associated with the transaction.

How Does an Assignment Sale Work?

Before proceeding with an assignment sale, the original buyer must obtain the consent of the developer or builder. This step is crucial as some developers may have specific rules or restrictions regarding assignment sales. When the developer consents, the original buyer can look for a new buyer to take over the purchase agreement.

Once there’s a new buyer, both the original buyer and the new buyer (assignee) enter into an agreement known as the Assignor-Assignee Agreement. This agreement outlines the terms and conditions of the assignment sale, including the assignment fee, if any. Then, the developer will review the Assignor-Assignee agreement and may require additional documentation or fees.

Once the developer approves the assignment sale, the closing process begins. At this stage, the new buyer is responsible for completing the purchase, including paying any remaining balance to the developer.

Why Do Assignment Sales Happen?

One primary reason why assignment sales happen is a change of plans. People may decide to leave the area due to personal circumstances such as starting a family, getting married, or looking for job opportunities elsewhere. Additionally, some individuals may face financial challenges that prevent them from completing the purchase.

Alternatively, a common scenario involves investors who never intended to close on the property acquisition. A popular investment strategy is to purchase a property during its early release to take advantage of the emerging market and low pricing and sell it before incurring land transfer taxes, HST, or becoming tied to a mortgage.

Benefits of Assignment Sales

Assignment sales can offer several benefits to both the assignor and the assignee. Some of these benefits include:

Profit Potential

For the original buyer, an assignment sale provides an opportunity to make a profit without completing the purchase. If the market value has increased since the initial purchase agreement, the assignor can sell their rights at a higher price.

Opportunity for Early Ownership

The assignee can benefit from an assignment sale to gain early ownership of a pre-construction property. This can be particularly appealing for individuals looking to invest in real estate or those with specific requirements for a new home.

Flexibility

Assignment sales offer flexibility to both parties involved. The original buyer can exit the purchase agreement without incurring significant penalties, while the new buyer can secure a property without going through the entire pre-construction process.

How a Real Estate Agent Can Help You Navigate this Process

Assignment sales are a complicated process; working with an experienced real estate agent who can help you navigate and understand the ins and outs of this transaction is crucial. These professionals can not only assist you in marketing your assignment, but they can also overcome any limitations imposed by the builder. Moreover, agents have a vast network and can easily connect you with an interested buyer. Although assignment sales may seem daunting, having a skilled lawyer and an experienced realtor is a smart financial move!

The post Real Estate Definition: Assignment Sale appeared first on RE/MAX Canada .

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A Comprehensive Guide To Selling Your Assignment Condo

Trying to resell your preconstruction condo before closing? This blog is for you. Assignment sales are more complicated compared to their resale counterparts, but with some guidance, the process is easy.

An assignment sale is a sale where the original buyers of a condo or home resell their contract to another buyer before closing. The most common type of assignment is a preconstruction condo assignment. Preconstruction condo assignments are prevalent because of the time lag between purchasing the home and the move-in date. While condo assignments might be the most popular type of assignment, any real estate contract is assignable. This blog is going to discuss condo assignments since they are the most prevalent, but *most* of the details apply to assigning a home or commercial preconstruction property as well.

In the GTA, our preconstruction market is booming. Toronto alone sees around 30,000 new home completions a year. Around 70% of preconstruction purchasers are investors. The remaining 30% of buyers are end-users who plan to use the property themselves. However, many investors, and end-users, might decide to sell the property before the final closing. Since there is no title to transfer, these buyers have to assign their contract to the next buyer.

What is a preconstruction condo assignment sale?

An assignment is when the original buyers of a preconstruction condo decide to sell their contract with the builder to another buyer before the home is complete. This differs from a regular real estate transaction because we are not buying or selling a home, rather we are buying or selling an interest in a contract to purchase a home once it’s complete. Essentially, the buyers are taking over the seller’s place in the contract with the builder. The new buyer pays the seller their deposits back, as well as any profit. In trying times, there might not be profit, and in extreme cases, the sellers might walk away from their deposits.

Assignments are like the wild-west equivalent of real estate. The buyers are called assignees, the sellers are called assignors, and there is no fixed closing date! You heard that right, the buyer purchases the contract not knowing whether it will close in 4 weeks, 6 weeks, or 8 weeks. In many cases, the buyers only have a rough estimate for the final closing of the property as well.

Every builder’s agreement of purchase and sale is different, so every assignment sale is different. You need legal and accounting advice before, during, and after an assignment sale. A real estate agent’s job in the transaction is to find a buyer, negotiate the contract, and coordinate the sale from start to finish. Your real estate agent might also connect you with accountants, and lawyers who can help make the necessary legal and tax declarations.

The Builder’s Role In Assignments:

Sellers often misinterpret their rights to assign in their purchase agreements with their builder. In the showroom, builders are quick to say their contract is assignable if you want to flip your contract before closing. However, builders can control when, how, and to whom you sell your contract.

It’s important to follow the rules set out by your builder when marketing your assignment. Deviating from the builder’s purchase contract can result in you losing your deposits!

Since all preconstruction home assignments require the builder’s consent, it’s important to prepare the file for their consent at your earliest convenience. The builder will want the same information they collected from you when you first purchased the home: full names, current address, sin, IDs (front and back), telephone number, emails, mortgage pre-approval letter, lawyer information… they will also want the buyer to replace all your cheques. Those could be cheques for future deposits, or cheques for interim occupancy fees. It’s important to advise the buyers to prepare all of this information before submitting the file to the builder, so there is limited delay assigning the property.

How do you sell an assignment condo?

The first step to selling your assignment is to review your original purchase agreement. The builder’s purchase agreement outlines restrictions and fees associated with assignments. An experienced realtor or lawyer can also review the contract with you. Next, email your builder’s customer service account and ask for permission to advertise the property for sale.

It’s important to thoroughly understand your preconstruction agreement, because some incentives offered to you might not be transferable to the buyer. Builders often offer incentives to direct buyers to stimulate sales. However, they sometimes make these incentives non-transferable. That could mean the free design dollars, or the capped development levies might not be available to the next buyer. It’s important not to advertise incentives that aren’t transferable.

The second step is to hire a Realtor to advise you on current market conditions. Your realtor will discuss marketing options as well as help you decide on a market price. There is a strong chance the builder will prohibit MLS listings of their properties. However, many builders will allow online marketing in places like Facebook, Instagram, WhatsApp, and brokerage websites.

While Realtor.ca is the best marketing platform out there, buyers looking for assignments know to look elsewhere. Don’t worry if you cannot market on realtor.ca. One of the advantages of Sotheby’s International Realty Canada is our vast marketing platform outside of Realtor.ca

Important Dates:

The first date you need to consider is the assignment closing date. This is the date the assignee officially takes over the contract from the assignor. On average, assignment closing happens within 3-6 weeks after an offer is accepted. This is when the assignee becomes the new owner of the property, and the assignee receives some of their deposit/profit back.

The second date to consider is the interim occupancy date. When buying preconstruction condos, there is usually a period between when the unit is ready for occupancy and before the building has registered with the city. Since no title exists yet, you cannot get a mortgage. Instead, during this time, you move in and pay the builder rent until final closing. Interim occupancy can last from months to years. During interim occupancy, buyers have the chance to view the unit which could help sell the home. Interim occupancy is when most assignment sales take place.

The third date you need to know is the final closing date. This is the date that the building registers with the city and the assignee pays the builder the balance of the purchase price, land transfer taxes, closing costs etc. Sometimes, assignees will negotiate to pay some of the assignors profit on final closing date, so they can roll it into the mortgage.

What Is Negotiable During An Assignment Sale:

Since the contract with the builder is already firm and binding, there can be no changes to that contract. The buyer is merely stepping into the seller’s shoes, in exchange for their deposits and profits. The assignment contract negotiates the purchase price and the deposit structure. The purchase price will indicate how much profit (or loss) the assignor receives in the transaction.

The payment schedule of an assignment is dependent on whether there is a profit or not. If the seller is making a profit or breaking even, then the buyers are expected to refund the full deposit paid-to-date by the sellers. In many cases, that is 20% of the original purchase price. If the seller is losing money on the assignment, then the buyers will bring a deposit for less than the deposits already paid to the seller. The deposit is due upon acceptance of the offer.

If there is profit, the assignee and assignor will negotiate when that profit is paid out. Remember when we mentioned the three important dates? the assignment closing, the interim occupancy date, and the final closing date? well, when it comes to negotiating when to pay the assignor their profit, we usually pick one of these dates to pay out the assignor’s profit.

The expected final closing is an important consideration for buyers when negotiating when to pay the assignor’s profit. The longer the final closing date, the more risk for the buyer. The reason? there is always a small risk the condo developer cancels the project. If a condo developer cancels the project, the buyers are returned their deposits paid-to-date. However, if a buyer has paid an assignor $100,000 in profit, that money is gone. So if there is a long closing, expect buyers to protect their final deposits by delaying it till interim occupancy, or final closing.

Conditions In Assignment Sales

After finding a buyer, the first hurdle to overcome is negotiating a fair deal. Once both parties are satisfied with the terms of the contract, we make the deal conditional on the lawyer’s review. This gives both the buyer and seller a chance to have the assignment contract, as well as the original purchase agreement, reviewed by a lawyer. Once both parties have spoken to their lawyers and are happy to continue, we put the deal to the developer to approve the new buyer. This condition usually lasts around 30 days. If the developer does not approve the new buyer within 30 days, the deal will become null and void, unless the buyer and seller both agree to extend that condition.

Once the developer accepts the buyer, the assignment will happen within a few days. Most contracts outline an assignment closing within 5 business days after the developer gives their consent. Some buyers will also include financing conditions in their assignment offer, so they have time to run the deal past their mortgage broker. However, most assignments are purchased with only lawyer review and developer consent conditions.

Here’s an example of selling an assignment for profit vs selling an assignment for a loss:

Below are four examples of the deposit/profit payment schedule for assignments.

Example 1 is a fantastic example of a preconstruction condo that appreciated $100,000. In this typical example, the assignee and assignor agreed to a deposit big enough to return all of the assignor’s deposits, as well as some extra profit to cover Realtor commissions. This deposit is usually transferred to the listing brokerage within 1 day of the offer being accepted and is released to the assignor on assignment closing. In this example, the assignor and assignee also agreed to pay the seller the rest of their profit at the final closing.

Example 2 shows the same conditions for the sale, except the assignee agreed to pay the assignor their full deposit and all their profit on the assignment closing date, instead of the final closing date.

Example 3 looks at an assignment where the assignor is taking a $100,000 loss. Instead of being paid their whole deposit on assignment closing, they are paid their deposit minus the difference between the purchase price and the sale price.

Example 4 is a rare case, where the market has turned significantly and the assignor is looking to transfer their assignment for $0. This means the assignor is walking away from all their deposits and will take no money to transfer their contract to the assignee.

What is the commission on an assignment condo sale:

The major fees when selling an assignment include the builder’s assignment fee, real estate commissions, and tax on the profit. Builder’s assignment fees usually range from $1500-$25,000 (in some extreme cases they go as high as $80,000). The assignor usually pays both the assignor and the assignee’s realtor commissions. The commission is something to negotiate with your agent. The total commission is usually 5% or less of the final sale price (which in some cases is more than the original purchase price, but sometimes it’s less than the original purchase price). There are likely taxes such as income tax, capital gains tax, or HST on the sale as well. Speak to your accountant about taxes due on the assignment sale.

Do you pay taxes on an assignment sale?

The taxes on assignments are simple, however, buyers and sellers often confuse the HST taxes. That’s because there are two different HST taxes when talking about preconstruction assignments. Let’s clarify this! All new homes are subject to HST, however, end-users don’t notice the HST tax because the builder pays it and claims a $24,000 rebate on the end-user’s behalf. Alternatively, investors who purchase a pre-construction home are charged around $24,000 in HST, and are then able to claim a rebate for the HST they paid, if they rent the property out for one year. There are situations where an assignment will lose its eligibility for the HST rebate. If someone has lived in the home during interim occupancy, it will no longer be eligible for the end-user HST rebate.

The second HST tax we discuss when selling an assignment is the HST due on the profit. In many cases, the profit is subject to a 13% HST tax. In some cases, even the return of deposits is subject to HST.

The third tax is the income or capital gains tax on the profit. Any real estate property that is not your primary residence, as well as any business venture, is taxable as either a capital gain or as income. It’s really important to speak to an accountant before selling your assignment. Only an accountant can advise you whether you owe HST, capital taxes, or income taxes on your assignment sale.

Is it better to sell an assignment or wait till the condo is ready?

The pros to assigning a condo:

Receive your deposits and profit sooner
Avoid market risks. Savvy investors might look to assign their property if they sense the market might depreciate in the coming months/years.
Avoid paying closing costs (land transfer taxes, development levies, utility hookups, and more). These usually come to a little more than 5.5% of the purchase price
No mortgage or financing required
Minimize holding costs (if you sell before interim occupancy or before final closing, there are no property taxes, maintenance fees, utility fees, insurance, mortgage, etc)

Cons to assigning a condo

Developer restrictions (limiting the marketing of the property, limiting when they are accepting assignments)
Market perception and buyer’s hesitancy when buying a property sight-unseen
Market fluctuations suppressing buyer demand
Limited buyer pool and most of the buyers are investors who want a good deal
Usually sell for a lower price than comparable resale properties
Financing challenges for the buyer if the property does not appraise at the new purchase price
Potentially more taxes compared to closing and reselling

The most common mistakes when selling an assignment:

Hiring the wrong representation, or not relying on professional advice:.

As active realtors in the assignment market, we come across quite a few mistakes. But most of them could be avoided if the buyers and sellers were represented by experienced realtors and lawyers. The agreement of purchase and sale for an assignment is very different compared to an agreement of purchase and sale for a resale home. One of the most common mistakes we see from buyers and sellers is assuming the paperwork their realtors drafted is correct, and forgoeing their right to have their lawyer review the assignment paperwork.

Poor communication/understanding:

This happened to my assignment buyers recently. They purchased a home where the seller’s representative told us the finishes had not been chosen yet. We protected our buyers by including clauses to that degree. However, a few days after the assignment closing, we learned the sellers chose the finishes a few days before closing. Luckily, the developer allowed the buyer to make changes to the finishes at an additional fee.

Ignoring deadlines or dragging your feet:

Assignments come with a lot of moving deadlines, and there are a lot more parties involved compared to a resale property. Always return paperwork and signatures as soon as possible. Compared to a resale property where the only parties are the buyer, seller, and their agents and lawyers, an assignment involves the developer, the developer’s lawyers, the buyer and seller agents, and the buyer and seller lawyers. If everyone took 3 days to return paperwork, the conditional period would lapse and the deal would become null and void.

Incomplete Buyer Vetting:

Buying an assignment requires the assignee to have their mortgage preapproval, as well as their purchase funds available very shortly. If the assignee does not have a mortgage preapproval on hand, it could delay the developer accepting the assignment. If they do not have their funds available it could delay the quick closing as well.

It’s important to thoroughly vet buyers because some builders require the assignor to close in the rare chance the assignee cannot close.

Misunderstanding fees:

Builder’s contracts are not standard forms, and their deposit structures and closing fees can vary from site to site. There are a lot of potential fees when buying and selling assignments and they include, but are not limited to: deposits, seller’s profits, upgrades, lawyer’s fees, interim occupancy rent, utility set-up fees, development levies, realtor commissions, accountant fees, HST, and income taxes. These fees can vary from deal to deal, and when they are payable is different in every assignment. For example, some developers require the homeowner to pay for upgrades when they are chosen, and others charge for the upgrades at final closing.

If you have a preconstruction condo or home that you are thinking of assigning. Feel free to reach out to us for some advice and insight.

Everything you need to know to sell your preconstruction condo assignment

6 important facts to consider when selling a preconstruction condo.

March 22, 2024

Real Estate Definition: Assignment Sale

What is an Assignment Sale?

Factors to Consider Before Entering an Assignment Sale

While assignment sales can be advantageous, it is crucial for both the original buyer and the new buyer to consider certain factors before entering into such transactions.

Developer’s Consent

Before proceeding with an assignment sale, you must obtain the developer’s consent. Some developers may have strict rules or restrictions, and failure to comply can lead to legal complications.

Assignment Fees

Legal Advice

Both parties should seek legal advice before entering into an assignment sale. This ensures that all parties understand their rights, obligations, and potential risks associated with the transaction.

How Does an Assignment Sale Work?

Why Do Assignment Sales Happen?

Benefits of Assignment Sales

Assignment sales can offer several benefits to both the assignor and the assignee. Some of these benefits include:

Profit Potential

Opportunity for Early Ownership

Flexibility

How a Real Estate Agent Can Help You Navigate this Process

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08 Sep 2011

What is an Assignment Sale and how do Assignments work?

Here’s how the assignment sale works in toronto real estate.

You may have heard the term “Assignment Sale” lately as it has become really popular with speculative condo investors.

Assignment Sales are defined as follows: The Assigning or Selling of your rights to purchase a property.

To clarify, you’re not actually selling the property. Since the Assignor (Seller) hasn’t taken possession yet (usually because it’s not built or has not registered yet), they are simply assigning the rights to the Assignee (Buyer).

Here’s an example: If I walked in to a condo sales centre, signed and bought a pre-construction unit from the floor plans I would have the right to purchase said unit when it was constructed and registered. An Assignment Sale is when I take that paper that I signed, my right to purchase, and sell it to someone else; The Assignee, for a certain amount. To break it down, if I agreed to buy the condo for $300,000, then found a Buyer aka Assignee, the Assignee has the right to purchase said unit for $300,000 but he/she has paid me a premium on top of the $300,000 for that right.

A client just went through one of these for a condo that he had bought pre construction. He, as usual, got in over his head with purchases and decided to assign a unit in order to free up some cash to make the deposits on another place that he had purchased pre construction. After spending some time spreading the word and marketing the property I received a call from a colleague saying he had a buyer for me and we eventually made the deal happen. Here is how I structured the deal to make it work for my client:

He had paid $356,400 for this unit (I should say, he had agreed to pay that amount when it was ready a year or so from now). He had made initial deposits of $53,750 , or 15% of the purchase price. My goal was to recover as much of that now for my client. Next, the buyer aka Assignee agreed to purchase said unit from my client for $380,000 . What this means is that he will eventually purchase the unit from the developer for $356,400 but give my client $23,600 for the right to do so (Total to the Buyer is $380,000).

So now the Assignee owes the initial deposit $53,750 plus the built in profit of $23,600 all totaling $77,350. Most people don’t have that kind of money lying around but since the money was needed right away we worked out a plan where he would pay the initial deposit of $53,750 now (borrowed from his parents) and the remainder of the cash from his mortgage when the condo was built and ready to register. We were lucky because the Assignee had the ability to come up with the cash.

Sometimes when the Assignee doesn’t have the option of paying out the Assignor it can be agreed that all the money will be transferred when the condo is ready and registered. An Assignor would likely agree to the latter only if the profit margins are much higher and the money is not needed right away. In this case since my client needed to be paid out now he accepted the small profit and was able to cash out and pay for his most recent purchase.

Assignment Sales, unlike resale transactions can get quite complicated. It is very important that you have an experienced Spring Realty Broker to work out the contract and an experienced real estate Lawyer to help mitigate risk for the client. I have been involved in hundreds of Assignment Sale transactions and with the help of Feld/Kalia Team of lawyers we get the job done right. Contact Us to get started.

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What You Need to Know About Assignment Sales

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Condo under Construction With CN Tower Near By

What is an assignment sale? We get this question quite often from both investors and end-users when it comes to the Toronto condo market, especially with the dramatic rise in condo buildings and pre-construction sales. Assignment sales can be a great opportunity for everyone involved, from the seller to the buyer. But working with a seasoned real estate broker is one of the most important things you can do. An assignment sale isn’t a typical transaction and there are many things you need to know before moving forward.

What Does an Assignment Sale Mean?

An assignment is a sales transaction where the original buyer of a property (the “assignor”) allows another buyer (the “assignee”) to take over the buyer’s rights and obligations of the Agreement of Purchase and Sale, before the original buyer closes on the property (that is, where they take possession of the property). The assignee is the one who ultimately completes the deal with the seller. In other words, an assignment clause allows the buyer of a home to sell the place before they take possession of it. Although an assignment sale is possible for both home and condos, it’s much more popular among condo pre-construction buyers.

Why Would Someone Want to Sell Their Condo on Assignment?

With pre-construction condo purchases, the sale of suites typically takes place several years before the building is built. It’s a long time in between buying the suite and actually taking occupancy of it. And with this lag time comes life changes – a new job outside of the city or in a different province, a new family that’s expanding with children, etc. What worked for a particular buyer years ago may not be the current case at closing time.

Financial reasons is also another reason to sell on assignment. Perhaps the purchaser can no longer be able to close on the condo, or perhaps it’s an investor who bought pre-construction with no intention of closing on them, therefore using an assignment sale strategy to profit, based on quick appreciation in the area.

Often with pre-construction sales, there’s a long lag between when the original contract is entered into, when the Buyer can move in (the interim occupancy period) and the final closing. It’s not uncommon for a Buyer’s circumstances to change during that time…new job out of the city, new husband or wife, new set of twins, etc. What worked for a Buyer’s lifestyle 4 years ago doesn’t always work come closing time.

How Do Assignment Sales Work?

We completed an assignment sale for a client at 87 Peter Street which was a new building that has occupied, but not registered yet. Our client purchased a 1-bedroom, 1-bathroom condo pre-construction for $320,000.00. He was looking to sell the unit on assignment and listed it at $525,000.00. We received an offer of $500,000 which the seller was comfortable accepting.

Typically, when assignment sales takes place, the seller is looking for a buyer who can provide him with a purchase deposit that equals what he had to put down – usually 20% of the original purchase price. After providing the seller with this sum, the deposit paid to the builder now becomes the new purchasers deposit. Any upside to the seller can be paid based on the negotiated terms – sometimes when the seller gets a mortgage for the condo, or even earlier – it’s all based on terms of the assignment deal.

Overall, assignments sales are not to be overlooked – there can be some fantastic opportunities to get into a highly desirable building that you may have missed out on or purchase a condo that you may otherwise not have had access to. But the importance of working with a realtor and lawyer who know the ins and outs of these deals is the key to making them work for you.

If you’re interested in learning more about Assignment Sale and some of the great opportunities currently available, simply fill out the form below – we’ll get in touch right away.

What Is Assignment Sale And How Does It Work?

What are the benefits of assignment sale (2020 update).

Many may have heard of the term assignment sale but are unfamiliar with how it works.

Let’s take a closer look at precisely what assignment sales are and what’s involved in buying or selling an assignment.

A real estate sale is between two parties transferring the ownership of physical property for a predetermined amount.

However, there are instances where transactional activities occur during the pre-construction phase of a property. Such actions are known as assignment sales. It is possible when the right to buy a property is sold to another individual before completion of the construction.

Assignment sales are most often seen in the condominium market as it is common for the builder to sell out their inventory early on in the development. Still, the units continue to be high in demand. The sale allows new buyers to be given opportunities to own an interest in the units still if specific individuals decide to sell their assignment.

When an offer is made on a pre-construction condo unit, an Agreement of Purchase & Sale would be signed by the original purchaser. The agreement would include an Assignment Agreement Clause stipulating the right to assign the contract to another under certain conditions. Mainly, this permits the original purchaser, or the Assignor, to sell their obligation to purchase the property to another individual, or the Assignee. The Assignee would be the one to complete and close the final sale with the builder.

As participants of an assignment transaction, there are several key factors to consider. In the next section, you’ll see the benefits of buying or selling an assignment.

Buying an Assignment

In a seller’s market, buyers may often find themselves in a bidding war. And end up paying for a significantly higher price. Instead of pursuing this route, buying an assignment can be an excellent alternative as relatively speaking. There is less competition for these properties, which can lower the cost for the buyer.

The assignment of a property has been around in the real estate industry for quite some time. Yet it is not widely known.

This is often due to the marketing restrictions that are usually in place. They prevent assignments from being advertised on popular platforms such as the Multiple Listing Services (MLS®).

With that said, having an agent knowledgeable in this area is crucial as they can open doors to homes that may never otherwise be known. This gives buyers a larger pool of saleable homes with less competition to choose from.

Buying an assignment can also lead to possessing the property quicker than purchasing a pre-sale unit. When an assignment is available for sale, construction is often already well underway, meaning the time to occupancy is shortened. Depending on what stage the development is in, the Assignee can still be able to personalize the unit by choosing their finishes, appliances, and other upgrades to the unit.

The Assignee will be responsible for settling the deposit as well as any profit or loss to the Assignor. Moreover, the Assignee will be liable for the full purchase amount at completion, along with the terms and conditions that are written in the original contract.

Selling an Assignment

With pre-construction sales, there is usually a long period before the unit is ready for occupancy. By going through the process of an assignment sale, the Assignor can get out of their contract without having to endure the mortgage process and incur the closing costs to resell the property.

From an investor’s perspective, the benefit is that not only can the Assignor receive their original deposit back, they also can negotiate with the Assignee for a higher price. With today’s increasing demand for condos, many investors lock in their profits from an assignment sale and use it towards their next investment opportunity.

Continuing a series of profitable transactions.

Assigning the contract can also save investors the interim occupancy fees for a unit they never plan to live in.

Aside from investors, assigning the contract is also an excellent option for individuals who initially plan on settling in the new unit but encounter situations where lifestyle changes affect their ability to fulfill the obligations of the purchase.

As an example, a young couple may be expecting a newborn. Making the unfinished condo unit too small for their growing family. The option to sell the unit before completion. It can allow them to acquire their proceeds back more swiftly. Than if they waited for the condo to be built to be resold in the market.

Thus, assigning the contract to another interested party would release the Assignor from all purchase obligations. As long as the original purchase contract allows for assignments and the new purchaser can satisfy both the details of the agreement and financial qualifications, most builders would approve.

However, the seller of the assignment will need to be aware of building assignment fees that are well documented in the purchase contract. Also, there may be restrictions that prohibit assignments to be marketed on popular platforms. Doing so would be a breach of contract resulting in the loss of the deposit.

How We Can Help

Assignment sales may be an excellent option for investors or homeowners. However, they still can be complicated as the risks and requirements are different as opposed to the usual purchase and sale of a property.

It is vital to work with an experienced realtor who understands the intricacies of assignment sales so that they can guide you seamlessly through the process. Contact JOVI Realty today if you’re interested in learning more about assignment sales.

Source: https://jovirealty.com/what-is-assignment-sale-and-how-does-it-work/

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How Do Assignment Sales Work

Share this:, june 25, 2021 | uncategorized.

Although assignment sales are not the most common type of real estate transaction, they do happen relatively often. They are especially common in cities with a lot of new developments, like Etobicoke . Assignment sales have many benefits for both buyers and sellers.

Although they can sometimes be complex, working with an experienced agent is the best way to ensure an assignment sales goes smoothly.

Since these transactions are more complex than a traditional real estate sale, we run into many client questions about assignment sales and how they work.

Here’s a guide to everything you need to know about assignment sales.

What is an assignment sale.

An assignment sale is when the original buyer of a home sells their property before closing on it.

When would this ever happen? In the world of pre-construction real estate, many new development homes are bought up before they even physically exist. For example, in many new condo building developments, the construction doesn’t even break ground until about 70% of the units are already sold.

There are many different roles in this type of assignment sale including the developer, assignor, and assignee. Let’s break down each role:

Who Is The Developer?

When it comes to pre-construction real estate projects, developers pretty much run the show. From identifying the site of new developments and brokering financing deals, to hiring the architects and builders to oversee the entire process, developers are the masterminds behind every new construction project. They often play an important role in an assignment sale.

Who Is The Assignor?

The assignor is the original buyer of the pre-construction property . The ‘assignor’ could be an individual or a business entity. For example, a real estate investment company, a private investor, or a regular home buyer. Pre-construction real estate developments usually attract a lot of interest from a diverse cast of buyers—even if the properties aren’t move-in ready.

It might be hard to consider buying a home that doesn’t actually exist yet. You’re basically buying an idea. However, there are advantages of ‘getting in early.” Some of the biggest benefits of buying pre-construction include:

Price : Pre-construction units usually cost less. There are greater risks involved and the units haven’t changed hands through re-sale yet.
Appreciation : The unit may increase in value between the time it’s purchased to when it’s move-in ready through normal market growth.

Who Is The Assignee?

If an assignor wants to sell their interest (read: ownership) of their property unit before construction is complete, this would result in an assignment sale. The assignee is the new buyer of the assignor’s property. This is the person who will ultimately take the sale the whole way through to closing.

Do Assignment Sales Benefit Buyers or Sellers?

Assignment sales can be beneficial for both parties in a real estate transaction. Although the assignor takes on some risk in buying before the project breaks ground, they reap other benefits. For example, if the value of the property goes up in the interim, they can usually sell it for more than they paid.

For an assignee, they might spend a little more than the original price, but they are taking on less risk while still moving into a brand-new home.

Why Do Assignment Sales Happen?

An assignor might sell their property to an assignee for many reasons.

Their plans might have changed for one reason or another, making them unable to move into their pre-construction property. Or, they may feel it’s the right time to cash in on their investment should the value of their property have increased.

Whether you’re interested in learning more about assignment sales or just need some general advice about buying real estate, our team is here to help you. Book your personal home buying consultation here , or simply contact us here to get started.

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Assignment Sale

An assignment sale in the pre-construction market.

A contract to buy a pre-construction condo suite is sold in an assignment sale, or it is “assigned,” to another party. Since the pre-construction condominium has not yet been registered, an assignment sale is typically used to prevent anyone from purchasing the actual unit. The contract itself cannot be sold.

You will receive an assignment clause or right in the form of a contract when you buy a pre-construction condominium unit. Before the condominium is even finished, you can decide to sell your assignment.

No property is being purchased by Assignee/Buyer from Assignor – A third party is selling the assignee the “right” to purchase their property (usually a builder)
In the Original Agreement with the Builder, Assignor transfers its rights and interests (or original seller)
Assignee “assumes” and undertakes to carry out all of the Assignor’s responsibilities under the Initial Agreement as the Assignor’s interest in the original “deposit” is assigned by the Assignor to the Assignee.

The ownership will be given to the buyer once the building has been constructed and registered by the city. Until, it is merely the sale of a contract, but as you shall see, both the buyer and the seller benefit greatly from these deals.

Learn more about assignment sales in this article, including their uses, how they work, and how they may be transferred.

This will enable you to decide if an assignment sale is the best option for you.

What Is An Assignment Sale? Why Do These Kinds Of Sales Happen?

Assignment sale is selling your unit’s rights before it is constructed. There are a variety of reasons why someone might sale an assignment. For instance, someone might have purchased a suite that won’t be finished for three years, but they recently had to move for work. To buy a home in their new city, the buyer might have to sell their contract.

Another typical explanation is that a buyer started the purchasing process while still single but got married or learned they were expecting a child during the pre-construction phase. They have recently learned that the one-bedroom pre-construction suite they purchased is insufficient for a growing family.

When this occurs, the “assignment clause” in the purchase agreement is essential. It enables the first purchaser to transfer the contract to another party without incurring financial penalties.

However, whether you are the buyer or the seller, it’s crucial to engage with both an experienced realtor and lawyer who know how to safeguard your interests. These types of transactions are popular and completely legal.

The developer, the assignor, and the assignee are all parties to these arrangements, which are more complicated than a typical resale. Interim occupancy and the final closing are both parts of the two-stage procedure.

An Example Of An Assignment Sale

A simple assignment agreement would only include this. Additional information is provided regarding the mortgage rules and other contract specifics. This is just an overview; each arrangement is distinct and has its own set of guidelines, terms, and conditions.

We suggest that anyone considering buying or selling a pre-construction assignment consult with a real estate agent, real estate lawyer , and tax accountant. Making contact with a lawyer is crucial since assignors can be responsible for paying a sizable tax on any gains they obtained from the completed transaction.

A pre-construction condominium suite was purchased by John Smith from ABC Developments in 2017 for $400,000 with a total down payment of 20%, or $80,000. In 2022, the project is expected to be finished.

John learned that he would be transferred to a different city in 2021. He's holding onto his condo under construction since he can't afford to buy a new house.

Fortunately for John, the assignment clause permits him to sell his unit's contract before the building is finished and registered!

John has decided to sell his unit's contract to Jane Doe. He was able to sell the contract for $500,000 as a result of market changes. Assignment Purchase: Assignment Agreement: $500,000 Original Purchaser (Assignor) = John Smith New Purchaser (Assignee) = Jane Doe Vendor (Builder) = ABC Developments John Smith's assignment purchase price to Jane Doe is $180,000, which is due immediately. The deposit is $80,000, and the profit is $100,000. This payment's amount and timing are also negotiable.

Jane Doe will occupy the unit for the tenancy period beginning in 2022 when the building is finished and available for interim occupancy. She will now start paying the developer occupancy fees. Until the building can be registered, these fees serve as a substitute for condo and mortgage payments. When a property is declared safe to reside in by the city, interim occupancy occurs. After the municipality conducts a final inspection, the building will be legally registered. Jane Doe can stay in her suite until the building is formally registered.

Assignment Specifics: When the building is legally registered by the city, the developer and the new purchaser transfer official title. Finally, Jane Doe can sign a mortgage document and begin making mortgage and condo payments. Jane Doe's required funds to finalize the transaction to the builder = $320,000 As a current owner, Jane Doe is entitled to all property rights. Any resale of the property in the future will be treated like any other real estate deal.

Is It Worth It to Buy an Assignment?

Because fewer individuals seek out these types of transactions, assignment acquisitions can provide some of the finest discounts in the GTA condo market. In addition to having fewer purchasers, many real estate agents are unfamiliar with the assignment sale’s format and frequently choose not to market these listings. Even lawyers might not be familiar with all the details of an assignment sale.

Due to the high demand in the resale market, buyers may be forced into competitive bidding situations where they may overpay for their suite. When you purchase a contract through assignment, you have the chance to avoid intense competition and frequently pay significantly less than you would for a resale unit.

Both the buyer and the seller may benefit from the assignment condo market. The buyer can save time and possibly thousands of dollars by not having to wait for the building to be finished before listing their property.

Another benefit of purchasing an assignment agreement is that you will receive a brand-new unit that is already covered by the Tarion Warranty Program, which has a seven-year duration. Not to mention that you won’t have to wait the customary 3 to 4 years for the building to be finished and will probably be able to move into the unit sooner!

Here Are a Few Benefits For Buyers to Review:

Options: When there aren’t enough listings on the market, there are more options.
Less competition: These kinds of listings are looked at by fewer people.
Peace of Mind: There is less of a chance for a bidding battle when fewer people are seeing these sales. Bidding wars and spending more money than you can afford only to outbid another buyer can be avoided.
You Become A VIP: You are likely to inherit builder-provided VIP benefits like the seven-year Tarion Warranty Program and other benefits including credits, upgrades, developing cost caps, and more.
More Choices: You could still be able to choose your own finishes, colors, and upgrades depending on how far along construction is.
Negotiate: Sellers typically have to sell in order to release their equity. You may be able to negotiate prices, deposits, and closing dates with this.
Brand-new Condo: Instead of waiting 2 to 3 years like in a traditional pre-construction contract, you will receive your unit much sooner. The occupancy date is frequently just a few months away.
Taxes: Saving money on taxes like GST and HST may also be advantageous to you.

Selling an Assignment

In the past, owners who wanted to sell their pre-construction condos had to hold off on listing their condo for sale until the final closing date, which may take months or years. They might have already invested a sizable sum of money in closing costs and occupancy fees by this time.

Although assignment sales are not a new technique in Canada, when compared to other nations where condos have been around for far longer, the process is not always fully understood by sellers, buyers, agents, lawyers, and even lenders. By learning about assignments, sellers have been saving time and increasing their revenues, which has been rewarding.

The popularity of these transactions is rising. Consider it similar to condo flipping. In order to get their deposits back, sellers who transfer their property rights before or during interim occupancy can avoid incurring significant carrying and closing charges.

The majority of builders allow assignment sales, however they frequently have requirements that must be followed. There are still options open to you despite the strict rules in place.

Let’s Take a Look at the Advantages for Sellers:

Re-invest: You can withdraw your equity and reinvest in other projects.
No Carrying Costs: Paying monthly expenses, such as occupancy fees, which can occasionally extend up to two years, is avoidable.
No Closing Costs: There is no requirement for you to obtain a mortgage or pay any other closing fees.
Play The Market: Profit from the rising condo market by selling the unit before it is completed and investing the proceeds back into another project. It is a major contributor to Toronto’s economy and is still growing.

Assignments Frequently Asked Questions

It is the sale of a contract to buy a unit that is still under construction. In other words, the contract or right to purchase the property after it is finished is being sold, not a unit that has already been completed. The initial buyer of a property (the “assignor”) transfers their contractual duties to a subsequent buyer (the “assignee”). In general, the assignee will take on all of the assignor’s responsibilities, including paying taxes, interest, and maintenance fees while the property is in transitional occupancy. Upon completion, the assignee receives the real estate’s title and is responsible for paying all closing costs.

It is allowed unless expressly banned in the original buy and selling agreement. In some circumstances, the assignor may be charged a fee by the developer for this form of sale.

It depends. For more information, refer to your purchase agreement. Developers typically won’t allow an assignment sale without their consent, so you’ll need to speak with them and a lawyer. There have been incidents where an unauthorized assignment sale led to the cancellation of the initial agreement and the preservation of the deposit!

If you are looking for an assignment sale network or premium platform to display, locate and access assignment sales and assignable preconstruction projects, place them with confidence, effectiveness, privacy, and security, try Assign Circle. Contact us or check our assignment sale packages for more information.

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Assignment Sale FAQ

The most detailed assignment sale guide in canada, most frequent questions and answers.

In order to understand what an assignment sale is, we’ll need to touch on pre-construction properties. Buying a pre-construction property means that you purchase a property before it’s ready, sometimes even before its construction has even begun. Building developers usually start pre-construction sales early on, meaning you can buy a condo in a coveted building and desirable area for a fairly reasonable price (sounds impossible, right?) – but here’s the catch, it won’t be ready for a couple of years. The upside is that it will most likely have appreciated in value by the time you receive it, making it a smart investment. As soon as you buy a pre-construction property, you are entering an agreement with the builder until the property is ready.

Now an assignment sale is when the original buyer of a pre-construction property sells their contractual interest in the property to a new buyer, meaning that they resell the pre-construction property before taking possession of it. The sale must be done before the original buyer takes registered possession of the home for it to be considered an assignment sale. As such, the second buyer (the purchaser of the assignment sale) is the one who completes the transaction with the original seller (the builder). To put it simply, it’s basically a purchase of the agreement between the builder & the original buyer, so that the new buyer automatically becomes the new owner of the property once it’s completed.

Since we’ve covered the assignment sale basics, let’s get more technical – the property being sold is still not registered with the land registry office and is probably still under construction. This makes it quite different from a regular sale, in more than one way. Let’s get into the main attributes that make this type of purchase unique.

When purchasing a property via assignment sale, there is usually a larger than normal deposit. The deposit in an assignment sale takes into consideration the deposit paid by the original buyer to the builder (usually 20%), plus additional profit that the seller is hoping to gain. Since the original buyer (now the seller of the agreement) is making a profit on the property above the downpayment already paid, these assignment sales can be very cash intensive – this is the single biggest deterrent for most buyers.

For instance, Buyer A purchases a pre-construction property from the developer of the project (the builder) for $500,000. Buyer A pays a 20% deposit ($100,000) over a two year span to the builder. Before the project is completed, Buyer A decides that they are no longer interested in going through with the purchase and would like to sell the unit, at this point (two years later) the market price of the property has now reached $550,000. Buyer A lists the unit for sale for $550,000, and the new buyer (Buyer B) would have to pay Buyer A their original deposit of $100,000 (20%), plus the property’s appreciation of $50,000. The total deposit that Buyer B will have to pay is $150,000 which, at this point, would be higher than the 20% usually required to obtain a mortgage on an investment property.

Another factor to keep in mind is that the assignment sale cannot take place without the builder’s consent. If you’re thinking of buying a pre-construction property only to then re-sell it as an assignment sale and turn a profit, this is definitely a factor worth considering. The builder reserves their right to hold back on consent for assignment sales and most only allow one assignment to be completed prior to final closing.

Therefore, as the buyer in an assignment sale, you’ll only be able to take over the original purchase agreement between the builder and Buyer A with the consent from the builder. This usually entails the builder requiring mortgage approval documents, ID, and additional information from the new buyer. Then there would be an assignment agreement executed between the builder, original buyer, and you (the new buyer). Needless to say, this is not the case with a regular sale – in a regular sale, the only consent you will need is that of your own and the seller.

Adding to the growing list of factors that make the assignment sale process different, showings do not exist here. Since, in most cases, an assignment sale is done before the building is even ready, the buyer is unable to physically see the property before purchasing it. As the buyer in an assignment sale, you’d be able to see floor plans, mock-ups, and images. In some cases, you’d also be able to head to the builder’s sales center and see/touch the finishes (eg. kitchen cabinets, countertops, tiles, appliances, etc.). You may also see the status of construction of the building by visiting the development site, to get an idea regarding the stage of project.

Since this requires a lot of trust, we recommend doing your research on the city’s reputable builders & the neighbourhood of the development to make sure its the right for you. It’s worth noting, however, that if the assignment sale is taking place during occupancy – when the original buyer has occupied the unit but is not yet in full possession of it – you might be able to see the unit in person.

Within the process of an assignment sale, you’ll find that there is additional paperwork (Builder’s consent, assignment agreement, etc.) and stages (occupancy closing, final closing, etc), which in turn leads to more legal hours. Lawyer fees for these types of sales are usually higher than a traditional sale because there are more contractual technicalities involving more than one party (Buyer A, the builder and Buyer B). Our advice would be to discuss these fees with your lawyer, in order to paint a more accurate picture of the what you can expect.

When buying a property via assignment sale, you are essentially buying a pre-construction property through a third party (Buyer A). With pre-construction properties, you get physical possession of the home (known as occupancy) before you get full possession of the home on paper (known as final closing). Therefore, occupancy fees are fees that you have to pay from the time you get possession of the home (occupancy phase) until the time you take official title of the property (final closing). Final closing usually occurs after the building is completed and has reached a certain percent of total occupancy. At final closing is when you would your mortgage would kick in. During the occupancy phase, you can expect the occupancy fees to be roughly the same amount as your mortgage payments would be with 20% down.

To add to what seems like the never-ending fine print, you might come across a number of additional fees when it comes time for final closing. Most contracts with a builder state that the buyer might incur additional costs that will only be specified upon final closing. The main additional fees are levies charges, also known as development costs; these are costs that the builder incurred while constructing the building, which they pass on to you as the buyer.

The size of these fees really depends on more than one factor: the builder, the city, and the project are a few to list. However, in most cases, you may have the builder set an upper cap limit on these fees – also known as Capped Levies. That way you know that the additional charges will be have a maximum upper limit that they wont exceed. Typically in Toronto, most developers cap development charges for one bedrooms to $7,500, $15,000 for two bedrooms, and over $20,000 for three bedrooms but please keep in mind that these are just ballpark numbers and the exact capped amount varies.

It’s essential to look at the original agreement between the assignment seller and the builder to see if levies are capped and at what amount. If the levies are not capped, you will have to assume the risk of higher-than-anticipated closing costs at the time of taking title to the property. Of course, there are also the common costs associated with homeownership which include land transfer taxes, legal fees, and possible mortgage fees.

Last but not least, it’s critical to consider HST (Harmonized Sales Tax) when buying via assignment sale, which essentially means you’re purchasing a pre-construction property. As a buyer, the HST of 13% in most cases is actually already included in the purchase price of the pre-construction property and the builder then applies for their rebate. However, it’s important to touch on the fact that buying a pre-construction property solely for investment may alter this structure.

If you are purchasing the property solely as an investor, and neither you or a direct family member will be occupying the unit, then you would have to pay the HST at final closing and apply for the New Residential Rental Property Rebate (NRRPR) after leasing the unit for one year. For more information regarding qualifications and the amount of the rebate, visit this publication from the CRA.

If you’re purchasing the assignment for yourself and it will be used as a primary resident then you’ll have to confirm that the HST is included in the purchase price of the assignment. For more information you may also visit the CRA’s info sheet here.

When it comes to HST and the status of your occupancy, you should always consult with your accountants and lawyers as each circumstance is unique.

Well, after much unbiased consideration, it’s safe to say that purchasing/selling on assignment can be a win-win scenario for both parties – the assignment seller gets a price above purchase price and the buyer, in most cases, snags a property below market price. Since assignment sales tend to occur well into the construction phase, there’s also less risk imposed on the buyer in an assignment sale. That being said, there are a number of reasons why a person might want or need to sell/buy a property on assignment:

Selling Reasons:

Change of plans: since pre-construction homes can take years to be completed, the original buyer situation could have changed within that time. For example, the original buyer may have started a family and is now looking for a larger, more suitable home.
Financial trouble: the financial situation of the original buyer may have changed over the years, and they’re now put in a position to have to sell the property. For example, the original buyer may have lost their job, meaning they can’t get qualified for a mortgage and are now unable to complete the purchase.
Profit: it’s very common for investors to buy pre-construction homes with the aim of re-selling them to turn a profit. This is usually a common scenario for assignment sales in the Toronto real estate market.

Buyer Reasons:

Brand new building/area: it can simply be that the purchaser is looking for a property that has never been occupied, or is in a newly developed neighbourhood, or just wants to secure a property in a new, buzz-worthy development. An example of this is Nobu Toronto.
Below market price and less competition: since these purchases require at least 20% down-payment, in most cases it could be that these units have less competition and can be purchased at somewhat of a bargain.
Profit: again, investors also look to buy properties via assignment sale because they believe that the building or neighbourhood will continue to appreciate in value, and come time of total completion or a few years later they would be able to sell for higher.

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Assignment sales 101

In a market where resale properties get snapped up in a matter of hours and pre-construction projects sell out in a few days, buying can be a challenge. There’s a lot of competition out there, and some buyers have been looking at assignment sales as an additional source of available properties.

What is an assignment sale, exactly?

An assignment is when the original buyer of a pre-construction property (who signed a contract with the builder) sells their contract to someone else before the purchase closes. Essentially, the buyer takes over for the seller in the contract and pays the deposit plus appreciated value/profit.

Assignments happen for a number of reasons. Life changes are a big motivator – a lot can happen in the three to four years it takes to get from initial deposit to ownership. People decide to leave Toronto. They have babies, they get married, they get divorced. Some face financial difficulties that make them unable to close.

Or, in the most common scenario, they’re investors who never intended to close on the property in the first place. A popular investment strategy is to buy in an early release, let the property appreciate, then sell it before having to shell out transfer taxes and HST and getting locked into a mortgage.

Read more: Is pre-construction still a good investment?

The pros and cons of assignment sales

This type of transaction comes with a very specific set of pros and cons for both the buyer and the seller. Here’s a quick rundown:

You can own a brand new unit without waiting years for it to be finished – buying directly from a builder involves a much longer wait.

There can be less competition. Typically, they aren’t marketed the same way as resales and fewer buyers know about them. The complexity of the transactions shrinks the potential buyer pool even further.

You don't have to worry about a project being cancelled and leaving you in the lurch: most builders don’t allow assignments until the project is almost done.

You need to have a a good chunk of cash, including all deposits that have been paid to the builder, agent commission, municipal charges, Tarion warranty, closing costs and the assignment fee, which can vary from a few hundred dollars to a few thousand (though some builders waive it as a purchase incentive). And you’ll be paying the appreciated price – not the amount the original buyer paid.

An assignment sale is a lot more complicated than a resale purchase. You need a real estate lawyer experienced in assignments to ensure everything is done right, and a realtor who really understands the assignment market.

Seller pros

If you’re an investor, you can cash in on the profits before the project is completed. Getting cash out earlier means you can reinvest faster.

You avoid paying land transfer taxes, HST and a whole lot of other closing costs.

You don’t have to deal with closing, occupancy, or tenants.

If your life situation changes, it allows you to walk away without penalties (and some profit).

Seller cons

It’s harder to sell an assignment than a resale: the rules around marketing are different than for resales, so the pool of buyers is smaller.

There are limits around when you can sell: a certain percentage of the development has to be sold before a developer will allow it.

Not all builders allow assignments, and even if they do, they can refuse the sale.

The builder could cancel incentives like capping of development charges and design/upgrade credits, which increases the price and cuts into profit.

Greater complexity means higher legal fees.

An experienced agent is a must-have

REALTORS® who understand assignments can help you navigate the complexity of this type of transaction. And they can help you market it, despite any limitations that might be imposed by the builder: they can leverage their networks to spread the word about available units, find interested buyers and connect the two.

“Agents can source assignments through a mixture of Kijiji ads, personal networks and semi-private networks like Facebook groups who screen their members,” says Konrad Gloge, Sales Representative. “Builders have the power here: if you list an assignment on MLS and they haven't agreed to it, you’ll be in breach of contract and you could lose your deposit, which is a pretty compelling incentive not to list. That’s why working with a well-connected agent is a must.”

Assignments can be daunting, but with a good lawyer and a knowledgeable realtor, they can be a great financial move, helping you profit on your purchase before it closes or get into a great new place faster.

Could an assignment sale be your best way into home ownership?

Ask a property.ca agent – they’ll be happy to help you figure out your best strategy..

Developments

What Is Assignment Sale And How Does It Work?

By condos hq - may 30,2022.

An Assignment sale is basically the sale of a contract for purchasing pre-construction condo suites as well as freehold properties. An assignment sale is usually applicable to non-registered pre-construction condos and freehold properties.

Before we dive deeper into the topic, it’s important to understand some of the terms that are used in Assignment Agreements.

Vendor: A Vendor is basically the same thing as a Builder, Developer or Seller.

Assignor: An Assignor is the original or initial purchaser of the Purchase Agreement.

Assignee: An Assignee is the one who purchases the Assignment Agreement.

Business Day: Every working day is considered as a Business Day. This excludes Saturday, Sundays and Statutory Holidays.

Important facts to remember with regards to Assignments:

An Assignee or Buyer is not actually buying a property from the Assignee. Rather they are buying the “right” to acquire a property from a 3rd part, which in most cases is the Builder.

The Assignor is the one who assigns their Interest and Rights in the Original Agreement with the Builder or the Original Seller.

The Assignee is bound to “resume” and agree to all of the obligations of the Assignor as per the Original Agreement.

What are the benefits of Assignment Sale for Assignee or Buyer? Options: Assignment Sales provide more options for buyers when there is a shortage of listings available in the market. So even if you don’t find what you’re looking for in the market, you can still get a lot of options through Assignment Sales.

Less Competition: The people who look at these types of listings are fewer in number and as a result you won’t find the need to compete in order to get your preferred property.

Peace of Mind: The fact that fewer people look into these listings negates the chance of a Bidding War. This also means that you can get your desired property without much hassle.

VIP Incentives: There are also high chances of inheriting VIP Incentives such as the seven-year Tarion Warranty Program along with other incentives from builders like credits, upgrades, capped development charges and much more.

More Choices: Depending on how far along the construction progress is, you may still have a chance of selecting your own colors, finishes and upgrades for your suite.

Brand New Suite: Unlike a typical pre-construction contract, you will be able to get your suite faster instead of waiting for 2-3 years. Quite often the occupancy date is just a few months away.

Taxes: Assignment Sales also allow you to save up on taxes including GST and HST.

What are the benefits of Assignment Sale for Assignor or Seller? Re-investment: Assignment provides the Seller or Assignor with the option of pulling their equity out and investing in other projects.

No Carrying Costs: With Assignments, you can avoid paying monthly fees such as occupancy fees that can often last upto 2 years.

No Closing Costs: With Assignment Sale, Sellers don’t need to take out a mortgage or incur any other costs.

Play The Market: With Assignments, you can take advantage of the condo market. You have the option to sell your suite before completion and re-invest in other projects. This is one of the major economic drivers of Toronto and has no signs of slowing down.

What are the costs involved for an Assignee?

Assignment Price = Deposit + Profit (New Price – Original Price)

Occupancy Fee

Final Closing Cost:

Balance of Original Price

Estimated property taxes for upto 2 years

Hydro/water/gas meter installation and connection charges, which is approximately $500 – $700 per meter

Development charges/levies, which is potentially thousands of dollars

Tarion New Home Warranty which ranges from $600 – $1,900

Discharge of builder’s mortgages which is approximately $200 – $300 per mortgage

Law Society Charge for Builder’s lawyer, which is approximately $70

Two months of occupancy fees for reserve fund

Legal fees and disbursements

Land transfer tax, both provincial and municipal

GST/HST rebate

What are the costs involved for an Assignor? 1. HST on assignment price = (Deposit + Profit) x 13%

2. Income Tax on Profit

3. Assignment fee to the builder

4. Lawyer fee

5. Agent Commission

What are the steps involved in an Assignment Process? 1. Offer Negotiation 2. 1st Deposit To The Listing Broker

3. Fulfill Conditions

4. Assignee Lawyer Review/Assignor Lawyer Review

5. Waive Assignee Finance Condition

6. Builder Consent (True Condition)

Apply for builder consent

2nd deposit to the lawyer

Executive builder consent

Release deposit, Assignment close

What is The Timeline For Builder Consent? 1. Deposit Clear

2. 90% Sold

3. Upon Builder Consent:

Before Occupancy

After Occupancy

FREQUENTLY ASKED QUESTIONS:

What Happens if The Assignee Doesn’t Close? This is the same case as any sale. The Assignor in majority of the cases will not be able to get away from the obligations listed under the Agreement of Purchase and Sale. Both the Assignor and Assignee will be liable accordingly.

When Does The Assignor Get Money?

Depending on the closing date as well as the terms of assignment agreement that the Assignee and Assignor agreed on, the assignor usually gets their money when:

The Assignee gets occupancy or possession or

When the assignment is approved by the original seller, if applicable, or

Legal title is obtained by the Assignee

Who Gets The Interest, If Any Payable By The Builder On The Original Deposit?

Unless it is specified, the interest is paid to the Assignor in most cases.

Who Bears The Interim Occupancy Costs?

Once an assignment has been finalized, the Assignee typically pays occupancy costs through the final closing and will pay the final closing costs unless negotiated specifically.

What Are The Forms Used for Assignment Offers?

OREA Form 150 Assignment of Agreement and Sale Condominium

OREA Form 145 Assignment of Agreement of Purchase and Sale (Including Applicable Schedules)

In most cases, the developers have their own forms as well

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Assignment Sales Explained

If you live in Downtown Toronto, you can attest to the fact that its skyline is scattered with cranes, its soundscape is mainly comprised of digging and drilling, and its road closures are abundant. Now that we've set the tone, the premise of this article is a byproduct of the emotion-inducing, 12-letter word: construction. In this article, we'll be diving deep into assignment sales; what they are, what makes them different, and the tips you need to know in order to smooth sail your way through the assignment sale process.

What is an assignment sale?

In order to understand what an assignment sale is, we'll need to touch on pre-construction properties. Buying a pre-construction property means that you purchase a property before it's ready, sometimes even before its construction has even begun. Building developers usually start pre-construction sales early on, meaning you can buy a condo in a coveted building and desirable area for a fairly reasonable price (sounds impossible, right?) - but here's the catch, it won't be ready for a couple of years. The upside is that it will most likely have appreciated in value by the time you receive it, making it a smart investment. As soon as you buy a pre-construction property, you are entering an agreement with the builder until the property is ready.

Now an assignment sale is when the original buyer of a pre-construction property sells their contractual interest in the property to a new buyer, meaning that they resell the pre-construction property before taking possession of it. The sale must be done before the original buyer takes registered possession of the home for it to be considered an assignment sale. As such, the second buyer (the purchaser of the assignment sale) is the one who completes the transaction with the original seller (the builder). To put it simply, it's basically a purchase of the agreement between the builder & the original buyer, so that the new buyer automatically becomes the new owner of the property once it's completed.

How do assignment sales work?

Since we've covered the assignment sale basics, let's get more technical - the property being sold is still not registered with the land registry office and is probably still under construction. This makes it quite different from a regular sale, in more than one way. Let's get into the main attributes that make this type of purchase unique.

A Larger Deposit

When purchasing a property via assignment sale, there is usually a larger than normal deposit. The deposit in an assignment sale takes into consideration the deposit paid by the original buyer to the builder (usually 20%), plus additional profit that the seller is hoping to gain. Since the original buyer (now the seller of the agreement) is making a profit on the property above the downpayment already paid, these assignment sales can be very cash intensive - this is the single biggest deterrent for most buyers.

For instance, Buyer A purchases a pre-construction property from the developer of the project (the builder) for $500,000. Buyer A pays a 20% deposit ($100,000) over a two year span to the builder. Before the project is completed, Buyer A decides that they are no longer interested in going through with the purchase and would like to sell the unit, at this point (two years later) the market price of the property has now reached $550,000. Buyer A lists the unit for sale for $550,000, and the new buyer (Buyer B) would have to pay Buyer A their original deposit of $100,000 (20%), plus the property's appreciation of $50,000. The total deposit that Buyer B will have to pay is $150,000 which, at this point, would be higher than the 20% usually required to obtain a mortgage on an investment property.

Builder's Requirements & Consent

Another factor to keep in mind is that the assignment sale cannot take place without the builder's consent. If you're thinking of buying a pre-construction property only to then re-sell it as an assignment sale and turn a profit, this is definitely a factor worth considering. The builder reserves their right to hold back on consent for assignment sales and most only allow one assignment to be completed prior to final closing.

Therefore, as the buyer in an assignment sale, you'll only be able to take over the original purchase agreement between the builder and Buyer A with the consent from the builder. This usually entails the builder requiring mortgage approval documents, ID, and additional information from the new buyer. Then there would be an assignment agreement executed between the builder, original buyer, and you (the new buyer). Needless to say, this is not the case with a regular sale - in a regular sale, the only consent you will need is that of your own and the seller.

No Showings

Adding to the growing list of factors that make the assignment sale process different, showings do not exist here. Since, in most cases, an assignment sale is done before the building is even ready, the buyer is unable to physically see the property before purchasing it. As the buyer in an assignment sale, you'd be able to see floor plans, mock-ups, and images. In some cases, you'd also be able to head to the builder's sales center and see/touch the finishes (eg. kitchen cabinets, countertops, tiles, appliances, etc.). You may also see the status of construction of the building by visiting the development site, to get an idea regarding the stage of project.

Since this requires a lot of trust, we recommend doing your research on the city's reputable builders & the neighbourhood of the development to make sure its the right for you. It's worth noting, however, that if the assignment sale is taking place during occupancy - when the original buyer has occupied the unit but is not yet in full possession of it - you might be able to see the unit in person.

Increased legal fees

Within the process of an assignment sale, you'll find that there is additional paperwork (Builder's consent, assignment agreement, etc.) and stages (occupancy closing, final closing, etc), which in turn leads to more legal hours. Lawyer fees for these types of sales are usually higher than a traditional sale because there are more contractual technicalities involving more than one party (Buyer A, the builder and Buyer B). Our advice would be to discuss these fees with your lawyer, in order to paint a more accurate picture of the what you can expect.

Occupancy Fees

Additional Closing Costs (Levies)

The size of these fees really depends on more than one factor: the builder, the city, and the project are a few to list. However, in most cases, you may have the builder set an upper cap limit on these fees - also known as Capped Levies. That way you know that the additional charges will be have a maximum upper limit that they wont exceed. Typically in Toronto, most developers cap development charges for one bedrooms to $7,500, $15,000 for two bedrooms, and over $20,000 for three bedrooms but please keep in mind that these are just ballpark numbers and the exact capped amount varies.

It's essential to look at the original agreement between the assignment seller and the builder to see if levies are capped and at what amount. If the levies are not capped, you will have to assume the risk of higher-than-anticipated closing costs at the time of taking title to the property. Of course, there are also the common costs associated with homeownership which include land transfer taxes, legal fees, and possible mortgage fees.

HST on Pre-construction

Last but not least, it's critical to consider HST (Harmonized Sales Tax) when buying via assignment sale, which essentially means you're purchasing a pre-construction property. As a buyer, the HST of 13% in most cases is actually already included in the purchase price of the pre-construction property and the builder then applies for their rebate. However, it's important to touch on the fact that buying a pre-construction property solely for investment may alter this structure.

If you're purchasing the assignment for yourself and it will be used as a primary resident then you'll have to confirm that the HST is included in the purchase price of the assignment. For more information you may also visit the CRA's info sheet here .

When it comes to HST and the status of your occupancy, you should always consult with your accountants and lawyers as each circumstance is unique.

Why do people purchase/sell on assignment?

Well, after much unbiased consideration, it's safe to say that purchasing/selling on assignment can be a win-win scenario for both parties - the assignment seller gets a price above purchase price and the buyer, in most cases, snags a property below market price. Since assignment sales tend to occur well into the construction phase, there's also less risk imposed on the buyer in an assignment sale. That being said, there are a number of reasons why a person might want or need to sell/buy a property on assignment:

Selling Reasons:

Change of plans: since pre-construction homes can take years to be completed, the original buyer situation could have changed within that time. For example, the original buyer may have started a family and is now looking for a larger, more suitable home.
Financial trouble: the financial situation of the original buyer may have changed over the years, and they're now put in a position to have to sell the property. For example, the original buyer may have lost their job, meaning they can't get qualified for a mortgage and are now unable to complete the purchase.
Profit: it's very common for investors to buy pre-construction homes with the aim of re-selling them to turn a profit. This is usually a common scenario for assignment sales in the Toronto real estate market.

Buyer Reasons:

Brand new building/area: it can simply be that the purchaser is looking for a property that has never been occupied, or is in a newly developed neighbourhood, or just wants to secure a property in a new, buzz-worthy development. An example of this is Nobu Toronto.
Below market price and less competition: since these purchases require at least 20% down-payment, in most cases it could be that these units have less competition and can be purchased at somewhat of a bargain.
Profit: again, investors also look to buy properties via assignment sale because they believe that the building or neighbourhood will continue to appreciate in value, and come time of total completion or a few years later they would be able to sell for higher.

Looking to buy a home in Toronto or the Greater Toronto Area (GTA)? Message us via the live chat on Dwelly.ca and start the conversation.

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What is an Assignment Sale?

Table of Contents

Introduction

What are assignment sales, how do assignment sales work, pros and cons of assignment sales.

Imagine you wanted to buy a home, but it hadn’t been built yet. You sign all the necessary paperwork , and enter into an agreement with the builder that you will buy the home once it has been fully constructed, for a particular price. In the meantime, however, maybe you changed your mind. You may not want to buy this specific home anymore because of the location, or the layout, or the features it offers. Lucky for you, there are other homebuyers dying to pick up this very same home, especially at the price you agreed to buy it for. So, you make a deal with another buyer that they get to have “your spot,” and transfer the property purchase contract to them. In exchange for giving up “your spot,” you also get paid. This is what is known as an assignment sale.

Explore further

An assignment sale represents the transfer of the rights and obligations of a property purchase contract from the original buyer (assignor) to a new buyer (assignee) before the completion of the property's construction, or before the final closing date. In simpler terms, it's when the purchaser of a property sells their rights to purchase that property to someone else before they take possession. By selling their rights (or, “their spot”), the assignor usually will receive payment from the assignee.

In a typical assignment sale scenario, the assignor of a pre-construction property will choose to sell their interest in the property before the closing date. They usually do this when they believe they can make a profit, or when they're unable to complete the purchase themselves. The assignor then finds a new buyer (assignee) who agrees to take over the purchase contract.

The assignee will pay the same price for the home that the assignor would have purchased, but they also have to pay a fee to the assignor, in exchange for giving up their rights to purchase the home. Once this fee has been paid out, the assignee assumes the original terms of the purchase contract with the developer, and the assignor is relieved of their duty to purchase the property themselves.

Profit Potential: As the assignor, you can make a profit by selling your claim to the home, especially if the market value of the property has increased since you first entered into your contract
Flexible Exit Strategy: Assignment sales provide flexibility for buyers who may have changed their plans or financial circumstances since signing the purchase contract. It allows them to exit the deal without defaulting on the contract.
Access to Pre-Construction Properties: For the assignee, purchasing through an assignment sale can offer access to desirable pre-construction properties that may be sold out or have limited availability in the primary market.
Developer Approval: Assignment sales are subject to the developer's approval, and not all developers permit them. Even if allowed, developers may charge administrative fees or impose conditions on the assignment process.
Market Risk: Both assignors and assignees are exposed to market risks and fluctuations. If the market value of the property decreases between the original purchase and the assignment sale, the assignor may incur a loss, while the assignee may pay more than is necessary for the property.
Complexity and Legal Risks: Assignment sales involve additional legal and administrative processes compared to traditional real estate transactions , increasing the risk of misunderstandings, disputes, or legal complications.

While assignment sales may not be for everyone, they can provide a much needed solution to buyers looking to find a pre-construction home in a hot real estate market, and sellers looking to gain more flexibility from the sale. It is important to remember, however, that while assignment sales can generate profit and increase flexibility for assignors, they are almost entirely at the developer’s discretion. As such, careful planning and research should go into any potential home sale. Whether you're considering selling your rights to a property or looking to purchase through an assignment sale, understanding the process and its implications is essential for making informed decisions in the real estate market. To learn more about your options as a buyer, you may want to consult a Clover Mortgage broker. We can provide tailored advice to help you meet your housing goals. Contact us to schedule your free consultation today!

Is it Good to Buy an Assignment Sale?

For many buyers, purchasing through an assignment sale can serve as a unique opportunity to access desirable properties that may otherwise be unavailable in the primary market. Buying an assignment sale may also provide profit potential if the property’s market value has increased since the original purchase. But it's just as important to consider the risks involved in an assignment sale. These can be mitigated by due diligence on the part of buyers, a review of assignment agreement terms, and assessment of market trends. It is euqlly important to consider the risks associated with developer approval, fluctuations in the market, and potential legal issues. Assignment sales certainly provide flexibility and generate profits, but they also come with inherent uncertainties that are not suited to every buyer's situation. Consulting with real estate professionals and conducting careful analysis can help buyers make informed decisions about whether buying an assignment sale aligns with their objectives and risk tolerance.

Who Pays HST on Assignment Sales?

In Canada, the payment of Harmonized Sales Tax (HST) on assignment sales depends on various factors, including the type of property, the status of the buyer, and the specific circumstances of the transaction. Generally, if the original purchaser (assignor) is considered a builder or engaged in the business of selling real estate, they may be required to charge HST on the assignment sale price.

If the original purchaser is not a builder or not involved in the business of selling real estate, HST may not apply to the assignment sale. However, the assignee (new buyer) may still be responsible for paying HST on the purchase price upon completion of the transaction, depending on the type of property and whether the purchase is for personal use or investment purposes.

How Do You Price an Assignment Sale?

There are many ways to price an assignment sale: from conducting a market analysis to going off of the terms in the original purchase contract. One common approach is assessing the difference between the original purchase price and the current market value of comparable properties in that area. The price will also depend on how far the construction has progressed, when completion is likely to take place, and what kind of upgrades the developer is willing to include (in addition to other incentives that might be offered). Sellers may also base their decisions on the current market demand for similar properties, current interest rates, and the general economic climate. It then becomes imperative for sellers to do careful research and, if need be, seek professional advice from real estate agents in arriving at a price that not only represents the true value of their property, balancing the market dynamics, but also best suits their personal financial goals and timelines. On the other hand, buyers have to exercise due diligence on whether the price set is compatible with their budget and investment agenda and the potential value of the property.

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Assignment Definition

Investing Strategy , Jargon, Legal, Terminology, Title

What Is an Assignment?
What is an Assignment in Real Estate?
What Does it Mean to Assign a Contract in Real Estate?
How Does a Contract Assignment Work?
Pros and Cons of Assigning Contracts

REtipster does not provide legal advice. The information in this article can be impacted by many unique variables. Always consult with a qualified legal professional before taking action.

An assignment or assignment of contract is a way to profit from a real estate transaction without becoming the owner of the property.

The assignment method is a standard tool in a real estate wholesaler’s kit and lowers the barrier to entry for a real estate investor because it does not require the wholesaler to use much (or any) of their own money to profit from a deal.

Contract assignment is a common wholesaling strategy where the seller and the wholesaler (acting as a middleman in this case) sign an agreement giving the wholesaler the sole right to buy a property at a specified price, within a certain period of time.

The wholesaler then finds another buyer and assigns the contract to him or her. The wholesaler isn’t selling the property to the end buyer because the wholesaler never takes title to the property during the process. The wholesaler is simply selling the contract, which gives the end buyer the right to buy the property in accordance with the original purchase agreement.

In doing this, the wholesaler can earn an assignment fee for putting the deal together.

Some states require a real estate wholesaler to be a licensed real estate agent, and the assignment strategy can’t be used for HUD homes and REOs.

The process for assigning a contract follows some common steps. In summary, it looks like this:

Find the right property.
Get a purchase agreement signed.
Find an end buyer.
Assign the contract.
Close the transaction and collect your assignment fee.

We describe each step in the process below.

1. Find the Right Property

This is where the heavy lifting happens—investors use many different marketing tactics to find leads and identify properties that work with their investing strategy. Typically, for wholesaling to work, a wholesaler needs a motivated seller who wants to unload the property as soon as possible. That sense of urgency works to the wholesaler’s advantage in negotiating a price that will attract buyers and cover their assignment fee.

RELATED: What is “Driving for Dollars” and How Does It Work?

2. Get a Purchase Agreement Signed

Once a motivated seller has agreed to sell their property at a discounted price, they will sign a purchase agreement with the wholesaler. The purchase agreement needs to contain specific, clear language that allows the wholesaler (for example, you) to assign their rights in the agreement to a third party.

Note that most standard purchase agreements do not include this language by default. If you plan to assign this contract, make sure this language is included. You can consult an attorney to cover the correct verbiage in a way that the seller understands it.

RELATED: Wholesaling Made Simple! A Comprehensive Guide to Assigning Contracts

This can’t be stressed enough: It’s extremely important for a wholesaler to communicate with their seller about their intent to assign the contract. Many sellers are not familiar with the assignment process, so if the role of the buyer is going to change along the way, the seller needs to be aware of this on or before they sign the original purchase agreement.

3. Find an End Buyer

This is the other half of a wholesaler’s job—marketing to find buyers. Once they find an end buyer, the wholesaler can assign the contract to the new party and work with the original seller and the end buyer to schedule a closing date.

4. Assign the Contract

Assigning the contract works through a simple assignment agreement. This agreement allows the end buyer to step into the wholesaler’s shoes as the buyer in the original contract.

In other words, this document “replaces” the wholesaler with the new end buyer.

Most assignment contracts include language for a nonrefundable deposit from the end buyer, which protects the wholesaler if the buyer backs out. While you can download assignment contract templates online, most experts recommend having an attorney review your contracts. The assignment wording has to be precise and comply with applicable local laws to protect you from issues down the road.

5. Close the Transaction and Collect the Assignment Fee

Finally, you will receive your assignment fee (or wholesale fee) when the end buyer closes the deal.

The assignment fee is often the difference between the original purchase price (the price that the seller agreed with the wholesaler) and the end buyer’s purchase price (the price the wholesaler agreed with the end buyer), but it can also be a percentage of it or even a flat amount.

According to UpCounsel, most contract assignments are done for about $5,000, although depending on the property and the market, it could be higher or lower.

IMPORTANT: the end buyer will see precisely how much the assignment fee is. This is because they must sign two documents that show the original price and the assignment fee: the closing statement and the assignment agreement, respectively, to close the transaction.

In many cases, if the assignment fee is a reasonable amount relative to the purchase price, most buyers won’t take any issue with the wholesaler taking their fee—after all, the wholesaler made the deal happen, and it’s compensation for their efforts. However, if the assignment fee is too big (such as the wholesaler taking $20,000 from an original purchase price of $10,000, while the end buyer buys it for $50,000), it may ruffle some feathers and lead to uncomfortable questions.

In these instances where the wholesaler has a substantially higher profit margin, a wholesaler can instead do a double closing . In a double closing, the wholesaler closes two separate deals (one with the seller and another with the buyer) on the same day, but the seller and buyer cannot see the numbers and overall profit margin the wholesaler makes between the two transactions. This makes a double closing a much safer way to conclude a transaction.

Assigning contracts is a way to lower the barrier to entry for many new real estate investors; because they don’t need to put up their own money to buy a property or assume any risk in financing a deal.

The wholesaler isn’t part of the title chain, which streamlines the process and avoids the hassle of closing two times. Compared to the double-close strategy, assignment contracts require less paperwork and are usually less costly (because there is only one closing occurring, rather than two separate transactions).

On the downside, the wholesaler has to sell the property as-is, because they don’t own it at any point and they cannot make repairs or renovations to make the property look more attractive to a potential buyer. Financing may be much more difficult for the end buyer because many mortgage lenders won’t work with assigned contracts. Purchase Agreements also have expiration dates, which means the wholesaler has a limited window of time to find an end buyer and get the deal done.

Being successful with assignment contracts usually comes down to excellent marketing, networking, and communication between all parties involved. It’s all about developing strategies to find the right properties and having a solid network of investors you can assign them to quickly.

It’s also critical to be aware of any applicable laws in the jurisdiction where the wholesaler is working and holding any licenses required for these kinds of real estate transactions.

Related terms

Double closing, wholesaling (real estate wholesaling), transactional funding.

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Home » Real Estate News » Real Estate Guide » Assignment Sales

Fundamental Difference Between a Resale vs Assignment Sales

August 27th, 2024 8 min read -->

A resale is a transaction where the buyer purchases a property from the original owner. The property is already completed and ready to move into. On the other hand, an assignment sale is a transaction where the buyer purchases the rights to a property from the original owner. The property is under construction and is still being prepared to move into. Here is a table that summarises the key differences between Resale vs Assignment Sales


Property Status	Completed	Under construction
Availability	Listed on MLS	Not listed on MLS
Mortgage requirements	Yes	No
Closing date	60-90 days	Varies
Risks	Title risk, builder risk, construction risk	Title risk, builder risk, construction risk, assignment risk

Table of Contents

What are the Pros and Cons of an Assignment Sale?

Assignment sales, also known as contract assignments or flipping contracts, are common in the real estate market. In an assignment sale, a buyer who has entered into a purchase agreement with a seller transfers their rights and obligations under the contract to a third party before the completion of the sale. While assignment sales can offer certain advantages, they also have potential drawbacks. Let’s explore the pros and cons of Assignment Sales:

Pros of Assignment Sales

One of the primary advantages of assignment sales is the potential for a significant profit. Assignors can secure a property at a lower price and then sell their contract to a new buyer at a higher price, capitalising on market appreciation or favourable negotiation.
Assignment sales allow buyers to secure a property without obtaining a mortgage or making a down payment upfront. This flexibility can benefit investors or buyers who may need more immediate access to funds but want to secure a property at a particular price.
Assignors can avoid the financial risks of property ownership, such as mortgage payments, property taxes, and maintenance costs. If the market conditions change or the buyer’s circumstances alter, they can sell the contract to another party without taking on these financial burdens.
Assignment sales provide a quick exit strategy for buyers who may change their minds or encounter unforeseen circumstances that prevent them from completing the purchase. By assigning the contract to another buyer, they can exit the transaction without the complications of selling the property on the open market.

Cons of Assignment Sales

Assignment sales involve intricate legal processes and require the involvement of multiple parties, including the original buyer, the assignee, the seller, and sometimes even lenders. The complexity can lead to challenges, delays, and increased legal expenses.
The success of an assignment sale depends on the consent of the original seller. Some sellers may not permit or may have restrictions on assignment sales, limiting the pool of potential properties available for assignment.
As an assignor, you relinquish control over the property and the final sale process once you transfer the contract to the assignee. This lack of control can be frustrating if the assignee’s actions or decisions affect the property negatively or lead to complications.
In a declining market, an assignor may need help finding a buyer willing to pay the assigned price. This can result in financial loss if the assignor cannot sell the contract or need to sell it at a lower price than they initially anticipated.
Some critics argue that assignment sales contribute to housing speculation and affordability issues, as they can drive up prices and limit housing supply. This perception can lead to negative public sentiment and potential regulatory scrutiny in some markets.

Assignment Sales for Sellers: What are its Advantages?

Higher Selling Price : In an assignment sale, sellers can sell their property more elevated than the original purchase price. Assignors, who act as intermediaries, often negotiate a higher price with the new buyer due to market appreciation, renovations, or other factors. This allows sellers to maximise their profit and earn more than anticipated.
Faster Sale Process : Assignment sales can expedite the sale process for sellers. Rather than waiting to complete the original contract, sellers can transfer their rights and obligations to the assignee. This enables them to sell the property without going through the typical marketing and negotiation process, which can save time and effort.
Avoidance of Holding Costs : Sellers can avoid holding costs associated with property ownership by selling through an assignment. These costs may include mortgage payments, property taxes, insurance, maintenance, and other ongoing expenses. Selling through an assignment allows sellers to transfer these responsibilities to the assignee, potentially saving them money in the long run.
Increased Flexibility : Assignment sales provide sellers more flexibility regarding their plans. By completing the sale through an assignment, sellers can move forward with their plans without waiting for the original contract to close. This can be particularly advantageous if sellers need to relocate, downsize, or make other arrangements quickly.
Lower Marketing Costs : When selling a property traditionally, sellers often need to invest in marketing efforts to attract potential buyers. This can include listing fees, advertising expenses, staging costs, and other related expenditures. In an assignment sale, the assignee typically assumes the responsibility of finding a new buyer, reducing or eliminating the need for sellers to incur marketing expenses.
Minimised Default Risk : In certain situations, sellers may encounter circumstances that prevent them from completing the original purchase contract. This could be due to financial constraints, changes in personal circumstances, or other unforeseen events. By assigning the contract to a new buyer, sellers can avoid defaulting on the contract and potential legal consequences.

What are the Advantages of Assignment Sales for Buyers?

Assignment sales offer several advantages for buyers in the real estate market. Here are the key benefits of assignment sales for buyers:

Potential for Lower Purchase Price : Buyers engaging in assignment sales can secure a property at a lower purchase price than buying on the open market. Assignors often negotiate a favourable purchase price when they contract with the original seller. This can be advantageous for buyers looking for a good deal or who want to invest in properties with potential appreciation.
Flexibility in Financing : Buyers participating in assignment sales can enjoy greater flexibility in financing options. Since they are buying the contract from the assignor, they may not need to secure a mortgage or make a substantial down payment immediately. This flexibility can be particularly beneficial for buyers needing more immediate access to large sums of money or facing challenges in obtaining traditional financing.
Ability to Customize the Property : In some cases, buyers engaging in assignment sales can customise or make changes to the property before the completion of the sale. This flexibility allows buyers to tailor the property to their preferences by selecting finishes, fixtures, or design elements and creating a personalised living space or investment property.
Potential for Profit : Assignment sales can provide buyers with profit potential. Suppose market conditions favourably change between the time the assignor entered into the contract and the completion of the sale. In that case, buyers can sell the property at a higher price, capturing the appreciation and generating a profit without ever taking ownership. This profit potential can attract investors or buyers looking for short-term gains.
Expedited Purchase Process : Assignment sales can facilitate a faster buyer purchase process. Rather than going through the lengthy process of searching for a property, negotiating with sellers, and dealing with potential competing offers, buyers can step into an existing contract and finalise the sale with the assignor. This can save time and streamline the purchase process, allowing buyers to secure a property quickly.
Lower Transaction Costs : Assignment sales may involve lower buyer transaction costs than traditional property purchases. Since buyers purchase the contract from the assignor, they may not need to pay certain closing costs associated with the initial purchase, such as land transfer taxes or legal fees. This can result in savings and make the overall transaction more affordable for buyers.

What Disadvantages Does a Buyer Face on Assignment Sales?

Here are the key drawbacks of assignment sales for buyers:

Limited Property Selection : Assignment sales often involve a limited pool of properties. Assignors may sell their contracts for various reasons, such as properties with a potential appreciation or in-demand locations. As a result, buyers participating in assignment sales may have fewer options than in the broader real estate market.
Potential Seller Consent Issues : The success of an assignment sale depends on the consent of the original seller. Some sellers may have restrictions on assignment sales or may simply refuse to allow the transfer of the contract to a new buyer. This can create challenges for buyers who have invested time and effort into an assignment transaction only to have it rejected by the original seller.
Lack of Control and Information : Buyers engaged in assignment sales have limited control over the original contract and the terms negotiated by the assignor. They may have yet to be involved in the initial negotiation process, which can lead to uncertainty about the terms and conditions of the purchase. Additionally, buyers may need more access to information about the property, its history, or potential issues, as they rely on the assignor for this information.
Increased Complexity and Potential Delays : Assignment sales can be more complex than traditional property purchases. Multiple parties include the original seller, the assignor, and potential lenders. This complexity can lead to delays, as other legal and administrative processes may be required. Buyers may need to navigate various agreements and documents, potentially leading to more extended closing periods or increased legal expenses.
Higher Risk of Non-Completion : Assignment sales carry a higher risk of non-completion than standard property purchases. Since buyers are assuming a contract from the assignor, they may face uncertainties and risks associated with the assignor’s ability to fulfil their obligations. If the assignor fails to complete the contract, it can lead to complications, potential legal disputes, and the loss of any invested time or resources.
Market Fluctuations and Financial Loss : While assignment sales can offer profit potential, they also expose buyers to the risk of financial loss. Suppose market conditions decline or change unfavourably between the time of the assignment and the completion of the sale. In that case, buyers may need help to sell the property for a profit. Sometimes, they may need to sell lower than the initial purchase price, resulting in a financial loss.

What are the Disadvantages of Assignment Sales for a Buyer?

Here are the key drawbacks of assignment sales for buyers:

Limited Property Selection: Assignment sales often involve a limited pool of properties. Assignors may sell their contracts for various reasons, such as properties with a potential appreciation or in-demand locations. As a result, buyers participating in assignment sales may have fewer options than in the broader real estate market.
Potential Seller Consent Issues: The success of an assignment sale depends on the consent of the original seller. Some sellers may have restrictions on assignment sales or may simply refuse to allow the transfer of the contract to a new buyer. This can create challenges for buyers who have invested time and effort into an assignment transaction only to have it rejected by the original seller.
Lack of Control and Information: Buyers engaged in assignment sales have limited control over the original contract and the terms negotiated by the assignor. They may have yet to be involved in the initial negotiation process, which can lead to uncertainty about the terms and conditions of the purchase.
Additionally, buyers may need more access to information about the property, its history, or potential issues, as they rely on the assignor for this information.
Increased Complexity and Potential Delays: Assignment sales can be more complex than traditional property purchases. Multiple parties include the original seller, the assignor, and potential lenders. This complexity can lead to delays, as other legal and administrative processes may be required. Buyers may need to navigate various agreements and documents, potentially leading to more extended closing periods or increased legal expenses.
Higher Risk of Non-Completion: Assignment sales carry a higher risk of non-completion than standard property purchases. Since buyers are assuming a contract from the assignor, they may face uncertainties and risks associated with the assignor’s ability to fulfil their obligations. If the assignor fails to complete the contract, it can lead to complications, potential legal disputes, and the loss of any invested time or resources.
Market Fluctuations and Financial Loss: While assignment sales can offer profit potential, they also expose buyers to the risk of financial loss. Suppose market conditions decline or change unfavourably between the time of the assignment and the completion of the sale. In that case, buyers may need help to sell the property for a profit. Sometimes, they may need to sell lower than the initial purchase price, resulting in a financial loss.

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Frequently Asked Question (FAQs)

What is the purpose of resale.

Resale is to transfer ownership of a previously owned item or property from the seller to a new buyer.

What is selling and reselling?

Selling refers to exchanging goods or services for monetary compensation, while reselling involves selling something previously purchased, typically to make a profit.

How much money can you make from resale?

The amount of money on resale depends on the type of property you have and the real estate environment of the area.

What is a good resale percentage?

The resale percentage depends on the real estate environment.

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April 18th - 2016

What consumers need to know about assignments: RECO

Assignments in real estate have been the focus of media attention recently. The Real Estate Council of Ontario (RECO) answers questions about this type of transaction.

Q: What is an assignment?

A: An assignment is a sales transaction where the original buyer of a property (the “assignor”) allows another buyer (the “assignee”) to take over the buyer’s rights and obligations of the Agreement of Purchase and Sale, before the original buyer closes on the property (that is, where they take possession of the property). The assignee is the one who ultimately completes the deal with the seller.

In other words, an assignment clause allows the buyer of a home to sell the place before they take possession of it. In Ontario, assignments are more common in pre-built homes and condos than on re-sale properties, but they are possible on any type of trade.

Q: Are assignments legal, and why do they happen?

A: When done properly, assignments are legal and can be a useful tool for buyers and sellers. An example of this would be a situation where a buyer’s financial or personal situation changes before closing. Assigning allows them to pass along the contract to another buyer, without backing out of the deal with the seller.

For instance, someone could buy a condo that is still under construction and might not be ready for a couple of years. The buyer’s work or family situation could change during that time, causing them to change their mind about living in the condo they purchased. Another example may be where a buyer runs into financial difficulties to close on an existing house and wants to find another buyer rather than risk the financial penalties that might come with having to try to back out of the deal.

Q: Why is there so much attention surrounding assignments at this time?

A: Recent media reports out of British Columbia suggest that some real estate professionals in that province may have been using assignments to make more money on the deal without telling their seller clients about what they are doing. When there is a registered real estate professional involved in a transaction, they have a number of obligations to their client. Some of those obligations involve disclosing if they have a personal interest in the transaction that goes beyond the commission they stand to earn on the transaction.

The assignment situation in Vancouver appears to be a localized issue, and we haven’t seen evidence of it being prevalent in Ontario. However, we are monitoring closely. If consumers are aware of questionable practices, RECO wants to know about it so we can investigate. Our complaint form can be found here .

Q: What are the obligations of real estate professionals when it comes to assignments in Ontario?

A: Ontario has rules requiring real estate professionals to disclose any personal interest in a purchase or sale. There would also be disclosure obligations if the same brokerage were representing both the buyer and the seller in a transaction and the buyer intended to assign the purchase to another buyer. In this case the brokerage would have to inform the seller. The seller could then make an informed decision about whether to include an assignment clause in the Agreement of Purchase and Sale.

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Q: What is RECO doing about assignments in Ontario?

A: RECO is continuing to monitor this issue, and if a registered real estate professional breaches the rules, they would be pursued to the full extent of the law. In addition, RECO has asked its inspection team to watch for anything unusual related to assignments.

If you work with a registered real estate professional and feel like they did not look out for your best interests, you can file a complaint with RECO and we will investigate the situation.

Q: What about the tax implications of assignments?

A: RECO advises anyone participating in an assignment to seek the advice of a tax specialist. Generally, assignors can expect to pay tax on any profits they realized from the assignment. Land transfer taxes are paid by the assignee, as they are only due when the sale closes (that is when the property actually changes hands).

Q: How can home buyers and sellers protect themselves?

A: As with any contract, it’s crucial for buyers and sellers to know what they’re signing. Real estate contracts are legally-binding, so getting legal advice can be a smart idea. It’s important to know what each clause means and how it will affect you. Buyers and sellers are encouraged to ask their real estate professional to explain the clauses in the contract.

Beyond contracts, RECO encourages buyers and sellers to do their homework. That means interviewing several salespersons, getting several comparative market analyses to understand what their home is worth and having realistic expectations about timelines, pricing and how the process will work.

For more details, visit www.reco.on.ca .

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The clients said they did not understand what they were signing when presented with a Buyer Representation Agreement. A judge offers advice to Realtors to prevent this all-too-common complaint.

New real estate app to develop business plan

An exciting and useful new app is now available for real estate professionals to develop a business plan and train for success.

Video tutorials explain forms

If you need help understanding and working with standard real estate forms, a short video tutorial can help.

College to stop delivery of real estate education

The OREA Real Estate College will no longer offer educational courses for real estate professionals in the province after December 31, 2020.

Supporters of charities, shelters honoured

Charity work by Ontario Realtors was the focus of a slate of awards presented recently by the Ontario REALTORS Care® Foundation.

Awards recognize leadership in real estate

Five REALTORS® were honoured at an awards luncheon as part of the Ontario Real Estate Association (OREA) annual conference recently.

Foundation board installed

The 2017 board of directors of the Ontario REALTORS Care® Foundation was officially installed at the annual OREA leadership conference in Toronto.

Time saving strategies for a busy spring

April 28, 2017

April showers typically bring an increase in business along with the May flowers. Don’t let the fast pace and increased demands of the busy spring season overwhelm you.

Nine ways to show your professionalism

Here are nine steps to demonstrate professionalism to your real estate colleagues.

Save the dates for professional development

Six events across the province can help you develop your skills and knowledge of real estate. Don’t miss Emerge: Moving You Forward with the Tools for Tomorrow.

Governance review explores OREA’s next chapter

Change is on the way for Ontario’s Realtors, as OREA and its members chart a new future for the association following Governance Day at the annual conference.

Legal Beat: Protect yourself, clients from illegal building

Realtors must disclose material facts about a property. Failure to verify the registration status of a newly built home can put you on the wrong end of a lawsuit.

Foundation gives over $1 million to charity

A new milestone has been reached, with more than $1 million given to charity by the Ontario REALTORS Care® Foundation last year.

New board of directors for 2017

The Ontario Real Estate Association officially installed its new president and board of directors at the recent annual general meeting and conference.

Get to know new OREA president

Ettore Cardarelli of Mississauga was installed as the new president of the Ontario Real Estate Association for 2017 at the annual OREA conference.

Tribute to outgoing president Ray Ferris at conference

The Ontario Real Estate Association paid tribute to outgoing president Ray Ferris at the annual general meeting in Toronto last month.

Greener fields? The challenges of rural real estate

March 23, 2017

Working in rural real estate does not always mean greener pastures. Three Ontario REALTORS® discuss the challenges of rural and recreational real estate.

Seven ways to handle stress

March 22, 2017

Real estate can be a stressful career. Here are seven tips to handle a stressful day.

Forms to help your daily trading: Join seminar

To learn more about the real estate forms that can help you in your day-to-day trading, sign up for an OREA web seminar (webinar).

RECO: Oral promise spurs complaint

The sellers of this house were told they would receive a rebate on terms and conditions, but that rebate never arrived.

Legal Beat: Dispute over nature of payment

The buyer could not come up with the deposit in this case, so the registrant put up her own money to keep the transaction alive. A dispute ensued when the deal fell apart.

Create home ownership affordability task force, OREA urges government

Representatives of the Ontario Real Estate Association (OREA) urge the government to set up a task force on affordable home ownership.

OREA annual conference and governance day

The Ontario Real Estate Association annual conference begins on Feb. 27, and for the first time, it features a Governance Day.

Looking for committee volunteers

Volunteer for a committee as a way to serve your profession and enhance your knowledge and network.

Managing in the lean seasons

February 25, 2017

Winter is often a slow period in real estate. Three REALTORS® from different Ontario cities share their planning and budget strategies to survive the lean times.

Commercial real estate the focus of seminar

February 20, 2017

Learn more about your role and responsibilities in commercial transactions at an upcoming OREA web seminar.

Research guides decision making

Market and consumer research is crucial to success in real estate. Find out how OREA has enhanced its research capacity to serve you better.

Get help from Customer Service Centre

If you have questions or concerns about your real estate studies, the Customer Service Centre at the OREA Real Estate College can help.

That’s a RAP: New government relations initiative

The REALTOR® Advocacy Project (RAP) is a new initiative to ensure that your voice is heard loud and clear in government circles.

Legal Beat: Court dispute over unregistered trading

Advisory services were provided in this commercial case, and the company billed for its work, prompting a legal dispute over unregistered trading in real estate.

Looking for volunteers

Joining a committee or task force is a great way to meet colleagues and contribute to the real estate profession. Volunteer for a committee as a way to serve your profession and enhance your knowledge.

Save the date: OREA annual conference

The Ontario Real Estate Association’s annual assembly meeting and Ontario REALTORS Care® Foundation annual general meeting take place on March 1 in Toronto. These events are all part of the OREA 2017 Conference.

“Unreal” estate – Protecting buyers of unbuilt property

January 28, 2017

When buyers purchase an unbuilt property, common problems can arise. Three REALTORS® discuss ways to guide buyers through the pre-construction phase.

Positive response to ad campaign

A new phase of the ad campaign launched this past fall to promote the value of using a REALTOR® has had tremendous positive results, statistics reveal.

Nine things to do in real estate’s slow season

Don’t waste the quiet time. Use your days wisely this winter to prepare for the busy season.

Quiz: What kind of real estate athlete are you?

A fun and interactive quiz helps you figure out what kind of REALTOR® athlete you are.

New Year’s webinar: Updates on 2017 standard forms

Find out what’s new in real estate forms and clauses in 2017. Join OREA’s upcoming web seminar.

Save the dates: Upcoming webinars on standard forms

January 1, 2017

Nine webinars are being offered in 2017 to help you learn more about the standard forms and clauses used in real estate transactions.

Legal Beat: Contract may not be void if both sides treat it as valid

In this commercial case, a judge ruled that the parties had continued to act on the APS after the insurance clause date had expired.

Apply to win prestigious leadership award

January 2, 2017

If you’re new to real estate, involved in organized real estate or dedicated to community work, you can apply to win a prestigious award that helps you hone your leadership skills.

January 3, 2017

First-time buyers get a tax break

January 4, 2017

Effective January 1, first-time home buyers will get a financial break on the purchase of their new home that is double the previous amount.

Political affairs conference a success

January 30, 2017

The political affairs conference held recently in Toronto was a great success, with the Ontario Real Estate Association event drawing members from across the province.

November 3, 2023

Interested in running for a position on OREA’s 2024 Board of Directors?

Interested in running for a position on the Ontario REALTORS Care® Foundation’s 2024 Board of Directors?

Tough closings: Expect the unexpected

December 8, 2016

What should be the final, smooth step in a transaction can be fraught with complications. Three REALTORS® discuss closing problems and how to prevent them.

What’s new in real estate forms for 2017: Save the date

Saying goodbye to your childhood home.

The sale of the home in which you grew up can be an emotional experience. Editor Mary Ann Gratton discusses the impact of this milestone on herself and her family.

Call for candidates – OREA

Are you interested in running for a position on OREA’s board of directors? Find out more.

Call for candidates – Foundation

Are you interested in running for a position on the Ontario REALTORS Care® Foundation board of directors? Find out more.

Legal Beat – Size of deposit may affect forfeiture

In this commercial case, the buyers did not fulfill their side of the contract. The judge weighed in on whether the proposed penalty fit the damages suffered by the seller.

Save the date for OREA annual conference and AGM

The Ontario Real Estate Association’s Annual Assembly Meeting and REALTORS Care® Foundation Annual General Meeting take place on March 1 in Toronto. These events are all part of the OREA 2017 Conference.

Work-life balance in real estate

November 9, 2016

Finding time for your personal life can be a challenge in real estate. Three REALTORS® share their lessons for balancing work and personal time.

Residential leasing issues: Join seminar

Residential leasing is a specific type of real estate that can bring challenges involving landlords and tenants. Learn more at an upcoming web seminar.

The rise of heritage conservation districts

More than 22,000 heritage properties exist across the province today. Robert Hulley, an award-winning conservationist and former REALTOR®, explores the growth of this market niche.

Let’s talk about forms: OREA reaches out

The number and complexity of forms can be overwhelming in real estate. That’s why OREA launched the Forms Update Outreach Project. Learn more about this highly successful initiative.

RECO decision: Ad and listing agreement mislead sellers

A handwritten note to the sellers stated that if their property did not sell in 30 days, the brokerage would buy it at the highest price offered by the market. A registrant’s failure to properly document the details led to a RECO complaint.

Legal Beat: Easement dispute prompts court cases

Access to a waterfront property became a point of dispute in this case. The issue hinged on whether the property required an easement of necessity.

OREA welcomes Tim Hudak as new CEO

After 21 years of distinguished public service in the Ontario legislature, Tim Hudak will join the Ontario Real Estate Association as Chief Executive Officer.

Ed Barisa retires as CEO of OREA

After 16 years as Chief Executive Officer of the Ontario Real Estate Association, Ed Barisa has announced his retirement.

In memoriam: Keith Teetzel

Keith Teetzel, a former long-time Executive Director of the Ontario Real Estate Association, died on Oct. 15.

Disclosure and stigmatized properties

October 19, 2016

Stigmatized properties present a special challenge in real estate, and REALTORS® should be aware of their disclosure obligations.

New ad campaign promotes REALTOR® value

An exciting new advertising campaign that promotes the value of using a REALTOR® to consumers was launched by the Ontario Real Estate Association.

Commercial real estate the focus of events

If you want to expand your knowledge of commercial real estate, come to one of two events organized as part of OREA’s fall Emerge lineup.

Legal Beat: Have a FINTRAC plan

Does your brokerage have a plan to prevent money laundering and other suspicious transactions? Make sure you comply with FINTRAC or face the consequences.

Maintain integrity with electronic signatures: Join seminar

Electronic signatures are being used more and more in real estate transactions. To maintain your integrity while using e-signatures, take part in an upcoming web seminar.

Fall events feature technology and strategy

This fall, come to one or more in a series of events designed to help you develop your skills and knowledge of real estate technology and strategy.

Generation Y’s intentions to buy real estate increase

More of Ontario’s younger generations are likely to buy a home in the next two years, according to new research from the Ontario Real Estate Association.

Motorcycle ride for charity a success

This year’s Motorcycle Ride for Charity was a great success, raising funds for a good cause. The annual ride supports shelter-based charities across the province.

RECO: Stigmatizing issues

There is nothing you can see, hear or measure that reveals a stigmatized property, but real estate professionals should understand the issues when representing consumers, says the Real Estate Council of Ontario (RECO).

Survivor: Real estate style

September 15, 2016

Don’t get voted off the island. To survive and thrive in real estate, you need a range of skills, according to three seasoned pros.

Need help with forms? See simple explanations

Forms are a key part of real estate, but they can be complex and full of baffling legal jargon. OREA’s Forms Explained is a resource that explains forms in plain English.

Campaign promotes REALTOR® value

The value of using a REALTOR® is the focus of a renewed advertising campaign set to launch this fall.

Topics and speakers announced for technology series

Topics and speakers for eight events have been confirmed as part of this fall’s series, Emerge: Moving You Forward with the Tools for Tomorrow.

Legal Beat: Tenant objects to candid camera

The landlord wanted to take photos of a rental unit in order to promote the space before selling it. The tenant objected, and a lawsuit ensued.

Consumer optimism grows over real estate markets

Ontarians are decidedly more upbeat about the province’s economy than they were last fall – a new and positive outlook that is boosting confidence, a new survey reveals.

RECO DECISION: Lot size error leads to complaint

After moving into their new property, the buyers discovered that the lot size was smaller than the measurements stated on the listing and marketing material.

Dealing with condominiums: Join seminar

Condominiums are a unique type of real estate. Learn more about the right forms and clauses used to address the specific challenges of condo purchases.

New and improved OREA blog

The Ontario Real Estate Association (OREA) blog has been redesigned and enhanced to meet your needs as a real estate professional.

Chattels versus fixtures: Explain the difference to clients

August 15, 2016

Ensure that your clients understand clearly which items will stay and which will go when a property sells. Three Realtors share insights.

Watch and learn: Tutorials explain forms

If you need help understanding and working with OREA Standard Forms, you can learn more from a new slate of tutorials. These online tutorials help you navigate the complexities of forms.

What does your OREA membership get you?

Find out what your association has been doing for you in the past year. Read the 2016 annual report from the Ontario Real Estate Association.

Consumer data can grow your real estate business

New and extensive research about consumers across the province can help you to grow your real estate business. These insights will greatly help you in understanding your local market.

Show integrity in real estate with the right forms: Join seminar

Integrity and professionalism are two key qualities that consumers want from REALTORS®. Learn more about using the right forms in real estate to maintain your integrity.

Legal beat: Life’s a beach for waterfront buyers

July 15, 2016

The buyers were attracted to a waterfront lot with access to a nearby beach. Wording in the real estate listing led to disciplinary action against two registrants.

Advocacy campaign wins second prestigious award

The Ontario Real Estate Association has won another prestigious public relations award for its advocacy campaign to stop the spread of the municipal land transfer tax beyond Toronto.

Venues announced for fall technology series

Location have now been confirmed for a series of technology and real estate business strategy events this fall.

RECO: Protect yourself against real estate fraud

Buying and selling real estate involves large monetary transactions. Protect yourself and your clients against different types of real estate fraud.

Emotions in real estate: Be a calming influence

June 17, 2016

Buying or selling a home is fraught with emotion. Three Ontario REALTORS® share their insights on steering clients through the emotional challenges of the transaction.

Kitec plumbing can cause problems

Kitec is a type of pipe that is vulnerable to premature failure, and REALTORS® should be aware of this product, which can lead to water damage and costly repairs.

Motorcycle season is upon us, and that means the Ontario REALTORS Care® Foundation is gearing up for a good cause. Join the 2016 ride or support a rider.

Do you have clause-trophobia? Join seminar

Writing clauses in real estate can be frustrating and stressful. Learn more about creating and using standard clauses by joining an upcoming web seminar at OREA.

Technology events enhance your skills

Dates are now confirmed for fall tools and technology events as part of Emerge: Moving You Forward with the Tools for Tomorrow. Find out about upcoming events in your region of the province.

Legal beat: A pool of problems for buyers

In this case, the swimming pool and equipment were said to be in good working order by the seller. The buyers’ failure to inspect the pool before closing meant that things did not go swimmingly.

Advocacy campaign wins prestigious award

A campaign organized by the Ontario Real Estate Association (OREA) to stop the spread of the municipal land transfer tax beyond Toronto has won a prestigious public relations award.

YPN awards recognize leadership in real estate

Five REALTORS® from across the province were honoured at an awards luncheon for their volunteer efforts and for supporting their communities.

Annual report highlights OREA accomplishments

Challenging clients: how to cope without losing your cool.

May 8, 2016

To succeed in real estate, you must work with many personality types - some as different from you as night and day. Three Ontario REALTORS® talk about dealing with challenging clients.

What’s the big deal about real estate assignments? Join seminar

Assignment agreements have been the focus of much media attention recently. To learn more, take part an upcoming web seminar (webinar) offered by OREA.

The joys and challenges of working in real estate

Working in real estate can sometimes feel overwhelming, but there are joys as well as challenges. A REALTOR® from Pembroke, Ontario shares her views.

Legal beat: Get involved and stay involved

This lawsuit hinged on whether the registrant was sufficiently involved to earn a commission. The absence of a buyer representation agreement (BRA) may have sealed his fate.

OREA president featured on radio show

Ray Ferris, president of the Ontario Real Estate Association, is appearing as a guest expert on a popular radio series. He will discuss a range of real estate topics along with the value of using a REALTOR®.

Volunteers, milestones recognized at awards ceremony

Volunteers are the backbone of many organizations. That’s why the efforts of volunteers in the province’s real estate community were recognized by the Ontario Real Estate Association (OREA).

Supporters of charities, shelters recognized

Many REALTORS® help families find the perfect home, but they also do a great deal of volunteer work to support charities and shelters. The Ontario REALTORS Care® Foundation honoured various individuals for their charity work.

Foundation board of directors for 2016

The 2016 board of directors of the Ontario REALTORS Care® Foundation was officially installed at the annual general meeting in Toronto.

Let’s negotiate: Ability to reach agreement vital

April 18, 2016

If you lack negotiation skills, you won’t be able to put together a deal for your clients or stay in business for long. Three real estate professionals share their insights on negotiating.

New statistics and newsletter launched

A provincial statistics page and monthly newsletter from the Ontario Real Estate Association (OREA) are available with helpful market information.

Stickhandling offers and negotiations: Join seminar

The offer process is one of the most complex aspects of trading in real estate. To learn more, take part in the upcoming web seminar (webinar) offered by OREA.

Upcoming seminars on standard forms

More information about OREA standard forms is available through an ongoing seminar series. This spring, find out what’s coming in a series of web seminars (webinars) and sign up.

Real estate: More than just sales

The role of the REALTOR® is not so much salesperson as consultant, according to one Ontario real estate professional. In fact, selling is far from the whole picture, she argues.

New tutorials explain forms

If you need help understanding and working with OREA Standard Forms, you can learn more from a new slate of tutorials. Ten new online tutorials help you navigate the complexities of forms.

What a dump: Landfill discovered under dream home

The buyers learned belatedly that their dream home was built over a landfill site. Legal Beat discusses the court dispute over disclosure after a rural real estate sale.

New OREA board of directors for 2016

The Ontario Real Estate Association officially installed its new president and board of directors at the annual general meeting in Toronto in March.

Time flies: Organizing your day

March 13, 2016

Staying organized and managing your workload effectively is vital to success in real estate. Three REALTORS® from across Ontario share their strategies for time management.

Changes to pre-registration education

Important changes are coming to pre-registration education on April 1 that will boost the knowledge of new entrants to the profession. The Real Estate Council of Ontario (RECO) is making changes with support from the Ontario Real Estate Association (OREA).

What’s new in Standard Forms: Join seminar

If you want to learn more about the standard forms used in real estate, sign up for a free seminar offered by the Ontario Real Estate Association.

New videos highlight consumer research findings

Two lively animated videos created by OREA reveal the results of surveys of consumers in the province of Ontario. They conclude with the importance of working with a REALTOR®.

Buyers floored by property’s structural weakness

A few years after purchasing a house, the buyers learned that previous owners had removed a load-bearing wall, rendering the second floor unsafe. The buyers sued the company that provided title insurance.

Last chance to volunteer for OREA committees

Local markets are stronger: survey.

Residential real estate markets are stronger now than they were a year ago, according to a recent survey of consumers. The Ontario Home Ownership Index, a survey conducted by OREA, reveals that 40 per cent felt the market in their own city was stronger in 2016.

Tips to protect your home and property: IBC

Review your home insurance policy and update your home inventory, advises the Insurance Bureau of Canada. These are among the steps you can take to protect your home and property, according to IBC.

Save the date: OREA annual conference and AGM

The Ontario Real Estate Association’s Annual Assembly Meeting and REALTORS Care Foundation Annual General Meeting take place on March 9 in Toronto. It’s all part of the OREA 2016 Leadership Conference.

Avoid errors in real estate listings

February 12, 2016

Mistakes in a real estate listing can hurt your clients and damage your career. That’s why accuracy in a listing is vital. Two experienced REALTORS® discuss common errors in listings and the consequences of making them.

Virtual home staging can save time, money

It’s now possible to stage a home without painting or decluttering, thanks to virtual home staging. Read the second of two stories on enhancing a property the digital way.

New seminars and tutorials deal with standard forms

Learn more about the forms often used in real estate by participating in an upcoming seminar or tutorial.

Customer Service Centre aims to help

If you have questions or concerns about your real estate studies, the Customer Service Centre at the OREA Real Estate College can help. The satisfaction rate among callers rose to 95%, up 3 percentage points.

Legal Beat: Faulty septic system makes for sale that stinks

This lawsuit hinged on the state of the septic system at a rural property and claims about plumbing expertise made by the registrant.

Videos focus on overcoming challenges, meeting goals

Learn how others have met challenges, surmounted obstacles or met their goals. Check out the Leadership podcasts posted to the Ontario Real Estate Association website.

The Ontario Real Estate Association’s Annual Assembly Meeting and REALTORS Care Foundation Annual General Meeting take place on March 9 in Toronto. These events are part of the OREA 2016 Leadership Conference.

Slowing down: Surviving the lean season

January 8, 2016

Winter is often one of the slowest periods in real estate, you must manage the slow times in order to remain in business during the hectic seasons. Three REALTORS® from different Ontario cities share their strategies for getting through the lean times.

Campaign prevents expanded land transfer tax

A high-profile advocacy campaign to prevent the spread of the hated municipal land transfer tax has been highly successful. The Ontario Real Estate Association was vigilant in lobbying Queen’s Park to ensure the MLTT does not extend beyond Toronto.

Living beyond your means in real estate

Avoid the temptation to spend too much or abuse your credit cards when you start to succeed in the business, advises a Toronto REALTOR®.

Apply to win a prestigious leadership award

If you’re new to real estate, involved in organized real estate and dedicated to doing community work, you can apply to win a prestigious award that helps you hone your leadership skills.

Home staging - the virtual way

If your clients don’t have the time or energy to declutter or repaint before listing their place for sale, you can suggest “virtual staging” to create a stylish picture that appeals to buyers.

Legal Beat: Alarm system leads to alarming lawsuit

The seller installed an alarm system in his home before putting it on the market. After the property sold, a dispute arose over the payment of monthly fees for the alarm monitoring service.

Miss Real Estate Manners: Always be professional

Courtesy and professionalism are crucial in real estate. Read the final installment of tips in a series from the London and St. Thomas Association of REALTORS® (LSTAR).

Renovate before reselling? Some tips from RECO

If your clients plan to renovate before selling their home, they should remember that upgrades and repairs cost time and money. RECO provides tips to protect consumers and their pocketbooks.

Multiple offers pose unique challenges

December 22, 2015

A multiple offer situation requires attention to detail and due diligence on a number of fronts, no matter where the property is located. The EDGE newsletter spoke to three REALTORS® in different cities about how they handle competing offers.

What kind of REALTOR® superhero are you?

All REALTORS® are superheroes. Take part in a fun and interactive quiz to learn what kind of superhero you are.

Ontario government close to allowing doubling of land transfer taxes

The Ontario government has indicated it will make home buying even harder by giving all municipalities authority to levy a municipal land transfer tax (MLTT).

Call for Candidates – Foundation

Get your home ready for winter: ibc.

Short, dark days and colder temperatures are a reminder to start preparing your home for winter. The Insurance Bureau of Canada lists some steps to prepare for the arrival of those sub-zero days.

Legal Beat: Wet basement a reminder of buyer beware precedent

In this case, the buyers discovered a leak in the basement after moving into a house, and the concept of buyer beware played a key role in the court decision.

Miss Real Estate Manners: Protect your clients

Safety and compliance should be top of mind when you conduct a real estate showing. Read the latest installment of tips from the London and St. Thomas Association of REALTORS® (LSTAR).

Offer handling a common complaint: RECO

A high proportion of complaints to RECO pertain to the handling of offers. Make sure the process and your conduct are fair, ethical, open and transparent.

November 23, 2015

The Ontario Real Estate Association (OREA) has developed a fun and interactive quiz that asks what kind of superhero you are. Play the game now.

Condo challenges: The particulars of the condominium market

Learn about the peculiarities of the condominium market from two REALTORS® who have been selling condos for 25 years or more. They share insights and experiences to help you navigate a market that is different from other residential real estate.

Romancing the real estate brokerage

Starting a career in real estate is like a new romance. Treat it like a budding romance to find yourself in wedded bliss rather than divorce court, advises one Ottawa Realtor.

Looking for volunteers on OREA committees

Joining a committee or task force is a great way to meet colleagues and contribute to the real estate profession. Serve your profession and enhance your knowledge by volunteering for a committee.

Legal Beat: Get your BRA signed

Getting a Buyer Representation Agreement (BRA) signed at the beginning would have prevented problems and a lawsuit in this commercial case.

Comic video highlights generation gap

A funny new video about a millennial client and her older REALTOR® exposes a generation gap in language.

Miss Real Estate Manners: Know your limits

Don’t overstep your bounds or give advice beyond your own level of expertise. Read the fifth installment of tips from the London and St. Thomas Association of REALTORS® (LSTAR).

Child's play: Working with young families

October 18, 2015

Showing properties is a crucial step in selling a home, but special challenges exist when young children are involved. Three REALTORS® talk about their approach to ensuring that everything runs smoothly.

REALTOR® value the focus of ad campaign

Television and billboard ads that promote the value of using a REALTOR® are running this fall across Ontario. The ads are part of the REALTORS® we do the homework campaign.

Don’t fear the heritage property

Heritage properties need not be a source of fear if you work in real estate. They are a substantial part of many markets across the province and one expert predicts their numbers will only increase over time.

RECO: Registrant fails to check zoning

The registrant in this transaction promoted a property as having two units, highlighting the rental potential with no mention of zoning restrictions. Read the decision from the Real Estate Council of Ontario after a complaint was submitted.

Come to one or more events this fall to keep you on the cutting edge of technology in real estate and hone your skills. Sign up for an event as part of Emerge: Moving You Forward with the tools for Tomorrow.

Legal Beat: Brokerage sale leads to debate over turnkey operation

In this transaction, the owner sold her brokerage to buyers who later argued it was supposed to be a turnkey operation – a business already set up and ready to go with no changes needed. A lawsuit ensued.

Miss Real Estate Manners

Courtesy and common sense are vital ingredients for a successful real estate career. Read the fourth installment of tips and advice from the London and St. Thomas Association of REALTORS® (LSTAR).

Motorcycle ride a success

Sunny skies warmed the riders at this year’s Motorcycle Ride for Charity, who completed a successful ride from Toronto to Ottawa for a good cause. This year marked the 10th anniversary of the ride organized by the Ontario REALTORS Care® Foundation.

College wins prestigious award

The OREA Real Estate College has won a prestigious educational award for its blended learning curriculum from the Real Estate Educators Association, beating out hundreds of other programs across North America.

Mentorship in real estate

September 22, 2015

The guidance of experienced professionals can help you grow in your career and personal life. Mentorship takes different forms, from one-on-one sessions to group meetings or formal training. Three REALTORS® talk about how mentoring has helped them.

Complaints service helps at stressful time

It can be stressful to learn that you are the subject of a complaint to the Real Estate Council of Ontario. A service created by the Ontario Real Estate Association helps you navigate the process and know what to expect at a challenging time.

Serving buyers in the pre-construction phase

When a property is not yet built, ask many questions and use due diligence to prevent surprise and disappointment for your buyers, advises one Toronto REALTOR®.

Ad campaign promotes REALTOR® value

Television and billboard ads that promote the value of using a REALTOR® will be running this fall across the province. They are all part of the REALTORS® we do the homework campaign.

Video and webinar explain new form

A short video and web tutorial help you understand Form 801, the new document created to help comply with legislation to prevent phantom offers.

Fall technology events

Dates and locations are now confirmed for fall tools and technology events as part of Emerge: Moving You Forward with the Tools for Tomorrow. Find out about upcoming events in your region of the province.

Legal Beat: When you don’t have a crystal ball

The seller took legal action against her REALTOR®, claiming she was misled by flawed advice to sell her property at a price below market value.

Consumer confidence in local markets growing

More Ontarians have a favourable opinion of the real estate market in their local city or town, according to new research released in an index produced by the Ontario Real Estate Association.

Courtesy is paramount in the real estate industry, according to the latest installment of tips and advice on professional behaviour in real estate from the London and St. Thomas Association of REALTORS®.

Handling stress in real estate

August 22, 2015

Real estate can be a stressful career. Erratic hours, stiff competition and an uncertain income all contribute to the stress. Three seasoned REALTORS® talk about how they cope with stress and share their tips.

Electronic signatures now allowed for agreement of purchase and sale

July 1, 2015

Legislation is now in place to allow electronic signatures to be used for the agreement of purchase and sale (APS) in real estate transactions.

New form deals with law to prevent phantom offers

A new form is available to help you comply with legislation aimed at preventing phantom offers. The Ontario Real Estate Association has created Form 801, an offer summary document that satisfies the conditions of Bill 55, The Stronger Protection for Consumers Act.

RECO: Registrant switches brokerages and changes lawn signs

The registrant moved to a new brokerage and changed the lawn signs on properties for clients whom he had represented through his old brokerage. Read the decision from the Real Estate Council of Ontario after complaints were submitted.

Get organized and stay organized

Managing your time in the demanding real estate profession can be a challenge. REALTOR® Eric McCartney of York Region shares some of his insights into getting – and staying – organized.

Fall into technology events

July 18, 2015

If you want to stay on the cutting edge of technology in real estate, come to one or more events this fall around the province as part of the series called Emerge: Moving You Forward with the Tools for Tomorrow.

Consumers show confidence in local markets: Index

What do Ontario consumers really think about the current real estate market? Learn more in the newest results from the Ontario Home Ownership Index research study.

Legal Beat: Lack of electricity a reminder that REALTORS® must verify facts

The registrant was selling two vacant rural lots and his signs and advertisements stated that the properties were “fully serviced” by an electricity source on the road at the edge of the property. A court case ensued when the buyer learned that electricity service was lacking.

Miss Real Estate Manners: Do unto others

Treat your colleagues, customers and clients the way you would like to be treated. Read the second installment of tips and advice from the London and St. Thomas Association of REALTORS® (LSTAR).

Miss Real Estate Manners: Show courtesy

June 7, 2015

Courtesy, communication and common sense are the three “C”s that real estate brokers and salespeople should follow in doing business. The London and St. Thomas Association of REALTORS® shares some tips from its “Miss Real Estate Manners” summary of good behaviour.

Motorcycle ride for charity celebrates 10th anniversary

June 5, 2015

The rubber meets the road on Wednesday, July 8 in this year’s Motorcycle Ride for Charity. Take part in the ride or sponsor a rider to support the many shelter-related charities that benefit from the ride organized by the Ontario REALTORS Care® Foundation.

Avoid advertising pitfalls

June 8, 2015

Make sure your real estate advertisements follow the provincial guidelines to prevent complaints and fines for false or misleading advertising. The industry regulator, the Real Estate Council of Ontario, outlines some of the most common mistakes spotted in real estate ads.

Wired Office: Big data is key to real estate service

June 6, 2015

Big data is everywhere, and more consumers are doing at least some online searches of their own before contacting a REALTOR®. Find out how big data can help you give a better service to your clients and customers even in today’s wired world.

Legal Beat: Buyers will find out eventually

June 4, 2015

The sellers in this case experienced water damage at their property, a fact not disclosed during the real estate transaction. A lawsuit was launched after the buyers learned from their new neighbours about previous water and mould problems at the house.

Awards honour volunteers, milestones

June 3, 2015

OREA training video popular

June 1, 2015

A video blog post on how to give clear classroom instructions has found popularity on YouTube. It is just one in a series of instructional videos for trainers that help facilitate classroom sessions.

June 2, 2015

Many REALTORS® help families find the perfect home, but they also do a great deal of volunteer work to support charities that give shelter to the homeless and others in need. The Ontario REALTORS Care® Foundation honoured various individuals and groups for their charity work.

Four tips for a hassle-free move: RECO

The Real Estate Council of Ontario (RECO) has published tips to help consumers select the best mover. Share these tips from Consumer Protection Ontario with your clients and customers.

Hone your negotiation skills

May 6, 2015

Even a flock of chickens can be the subject of dispute in a real estate transaction. Negotiation is vital in this line of work, and the more you hone your negotiating skills, the more successful your career will be. Read more about negotiating skills and the art of the deal from three Ontario REALTORS®.

Developing your brand

May 5, 2015

Branding in real estate yields tangible results. A pair of REALTORS® learned this after asking some tough questions in the process of developing their brand. Find out how an Ottawa team achieved lasting recognition by developing its brand.

Rules vary for basement apartments, second suites

Be cautious in your approach to properties with basement apartments, second suites or in-law suites. That’s because the laws vary across the province and can be a legal minefield.

President’s Message from Patricia Verge

May 4, 2015

The president of the Ontario Real Estate Association notes that change is the new normal in today’s business world. Patricia Verge discusses the challenges and changes in real estate today.

RECO decision: Memory fails registrant who conveys wrong price

A registrant’s mistaken price presentation leaves the sellers out of pocket and the buyers out of luck following this transaction, which leads to a RECO complaint.

Legal Beat: Saturday closing leads to lawsuit

May 2, 2015

A closing that was scheduled for a Saturday in an agreement of purchase and sale (APS) led to legal issues in an Ontario property transaction.

Unveiling the OREA Real Estate College alumni program

A graduate’s connection to his or her college should not end on graduation. That’s why the OREA Real Estate College has launched a new alumni program.

Snapshot of OREA members revealed

May 3, 2015

A new survey of members of the Ontario Real Estate Association (OREA) provides valuable information and helps create a profile of members across the province. Find out more about the age, language, locations, and type of real estate transactions conducted by members.

Motorcycle ride for charity

This year’s Motorcycle Ride for Charity organized by the Ontario REALTORS Care® Foundation will take place on Wednesday, July 8. Riders depart from the OREA headquarters in Don Mills, with several stops on the way to Ottawa.

Annual report now available

May 1, 2015

An interactive version of the 2015 annual report of the Ontario Real Estate Association is now posted to the OREA website, with electronic links to bring you more information on the products and services provided by OREA.

Bridging the generation gap in real estate

It has never been more important for young and old to work together. In an industry that is constantly evolving, both new and seasoned REALTORS® must collaborate and share knowledge, argues one Ontario broker.

The board of directors of the Ontario REALTORS Care® Foundation for 2015 was officially installed at the annual OREA conference.

RECO website refreshed

The Real Estate Council of Ontario recently unveiled its new website. The site has been revised to better serve the needs of both consumers and real estate professionals.

The importance of repeat business and referrals

April 4, 2015

Word-of-mouth advertising is a vital way to build your business. Referrals and repeat business are crucial to your success in real estate. In this feature article, three Ontario REALTORS® talk about the strategies they use to get referrals and generate repeat business.

REALTOR® value advertising campaign continues

April 3, 2015

An ad campaign designed to promote REALTOR® value to the public will continue until the end of 2018. That decision is the result of a vote on a special levy to fund the extension of the campaign at the annual general meeting of the Ontario Real Estate Association (OREA).

The benefits of volunteering in real estate

April 1, 2015

Many personal and professional benefits come from volunteering, as the president of a local real estate association learned after a year in office.

REALTOR® Quest the largest show of its kind

April 2, 2015

On May 6 and 7, thousands of real estate professionals will gather at the Toronto Congress Centre for Canada’s largest REALTOR® trade show and conference, featuring seminars, learning opportunities and up to 240 exhibitors.

Personal real estate corporations the focus of bill

A bill introduced recently at Queen’s Park aims to change legislation to allow real estate salespeople in Ontario to incorporate. The Tax Fairness for Realtors Act would bring Ontario in line with six other Canadian provinces.

Legal Beat: Use forms properly and fill in the blanks

A contract became null and void after forms were not completed properly and a notice waiving conditions was not delivered personally to the seller.

Technology and real estate the focus of event

RETechTalks is a conference with a focus on technology and real estate, described as a day to learn from the very best people in Toronto real estate.

OREA News: New board of directors for 2015

The Ontario Real Estate Association officially installed its new president and board of directors at the annual meeting in Toronto on March 11.

Market Watch: Housing affordability slips nationally

Solid increases in Ontario home prices were key to the slight erosion in housing affordability across Canada, according to a housing trends report.

Surviving the busy spring season

March 26, 2015

Although springtime means sunshine and flowers in bloom, it represents the busiest time of year in real estate. Three experienced Ontario REALTORS® share their ideas and insights on how to cope and thrive during the industry’s busiest season.

Green real estate conference

March 19, 2015

The business case for environment-friendly buildings has never been stronger. Learn more at the upcoming Green Real Estate Conference on April 23 at the Metro Toronto Convention Centre.

Women’s hockey star and IBC promote road safety

Drive according to weather conditions. That’s the message of a new road safety video produced by the Insurance Bureau of Canada (IBC) featuring Canadian women’s hockey star Kelly Terry. Watch the video here.

RECO: Agreement to lease doesn’t show that tenant would rent to students

March 22, 2015

In this RECO decision, the registrant was disciplined after the owner of a property discovered that her property had been turned into a rooming house for students.

Remind consumers to hire contractors who work safely

March 24, 2015

Renovation work done by the wrong contractor can create expensive problems. The Ontario Ministry of Government and Consumer Services has crafted tips to help consumers select contractors who work safely.

Legal Beat: Installation of ATM the focus of commercial dispute

March 25, 2015

The landlord and tenant in this commercial dispute disagreed over the installation of an automated teller machine (ATM) on the property. The court case drained cash at a pace that rivalled that of the dispensing machine itself.

New advertisements released in REALTOR® value campaign

March 20, 2015

An exciting new slate of advertisements is being released March 2 to promote REALTOR® value to consumers across Ontario.

OREA website refreshed

A bold new look and feel is evident on the OREA website, making it quicker and easier for you to get what you need to succeed in your real estate career.

News: Call for volunteers

Joining a committee or task force is a great way to meet real estate colleagues and make a contribution to your profession. The deadline to apply is March 20.

Welcome to the digital EDGE

February 22, 2015

OREA is pleased to launch an all-electronic version of The REALTOR® EDGE newsletter, full of useful news and information to help you in your real estate business.

Safety first should be motto for REALTORS®

Safety is highly important for those working in real estate. Three REALTORS® share their experiences and talk about the importance of taking precautions when showing properties or hosting an open house.

Broader export demand predicted: RBC

Canada’s economy is expected to see higher export growth in 2015, despite the recent decline of oil prices, says a new report.

Housing outlook for 2015 shows modest gains

Most regions posted modest gains in average prices of residential homes despite increased inventory in many of Canada’s housing markets, according to a recent report from RE/MAX.

Levy recommended to fund REALTOR® value ad campaign

For two years OREA has promoted the value of REALTORS® via a mass advertising campaign. Delegates to the OREA AGM in March will be asked to vote on a special levy to continue to fund the campaign.

Ontarians feel better about economy, real estate markets

Six out of 10 Ontarians surveyed say the state of their city’s economy is good, up from 53 per cent last year, according to a research study commissioned by OREA and Ipsos Reid.

Embracing the growing heritage market

The heritage market is growing swiftly thanks to a boom in home renovations. Conservation expert Robert Hulley shares his insights for REALTORS® who want to capitalize on the opportunities.

Legal Beat: Plaintiff in commercial case has great expectations

An executive seeking to develop commercial condos spent nearly $100,000 on marketing then sued his brokerage for reimbursement after the relationship soured.

Save the date

It's time to jot down the date for the Ontario Real Estate Association’s Annual Assembly Meeting and REALTORS Care® Foundation Annual General Meeting.

Joining a committee or task force is a great way to meet colleagues and make a contribution to the real estate profession. Serving your profession in this way works to enhance your knowledge of and connections to the field.

The EDGE goes green

January 22, 2015

Starting next month, The REALTOR® EDGE newsletter will be delivered in an electronic format only. This month's issue is the last print edition, marking the end of an era - and a new beginning - for the highly popular newsletter produced by the Ontario Real Estate Association.

Real estate couples: Sold on partnerships

Many couples find that working together at the same real estate brokerage strengthens both their marriage and their business, as well as drawing on complementary skills.

Backing up your data

If you haven’t backed it up, then you don’t have it. So goes the rule about copying and archiving your computer data. If your files - documents, photographs, videos, music etc. - are not backed up in at least one secondary place, then they’re as good as gone.

Buyers’ regrets reported: RECO

Almost half (45%) of first-time buyers and 41% of home owners wish they had done something differently during the transaction, says a survey from the Real Estate Council of Ontario.

Modest overvaluation of housing prices: CMHC

A modest amount of overvaluation was observed by the Canada Mortgage and Housing Corporation (CMHC), meaning that house prices in the country are slightly higher than what underlying factors suggest they should be.

Condominium living means following rules

This case focused on ongoing issues between a condominium corporation and one of its unit owners who continued to defy restrictions at the property.

It's time to jot down the date for the Ontario Real Estate Association’s Open Forum, Annual Assembly Meeting and REALTORS Care® Foundation Annual General Meeting.

Jam raises funds

Music, dancing and jamming were all for a good cause at the Jam with a Past President held in conjunction with OREA’s recent Political Affairs Conference (PAC) in Toronto.

Books and ideas to ring in the New Year

December 28, 2014

A new year offers a fresh start and a chance to embrace change. The EDGE newsletter spoke to REALTORS® from across the province who shared their thoughts about books and ideas to ring in 2015.

President's message

OREA President, Costa Poulopoulos, reports on the latest advocacy work being undertaken by the Ontario Real Estate Association on issues that matter to REALTORS® and real estate in his winter message.

The OREA Real Estate College has won an educational programming award from the Learning Resources Network (LERN), the world’s largest association devoted to continuing education and lifelong learning.

December 21, 2014

Interested in running for a position on OREA’s 2015 board of directors? The following positions are up for election: four Provincial Directors (made up of one each from the Western, Northern, Eastern and Central Ontario Areas), and two Directors-at-Large.

Interested in running for a position on OREA’s 2015 board of directors? The following positions are up for election: four Provincial Directors

Driving in my car: REALTORS® and their vehicles

Driving is a big part of our jobs. Having been raised by a REALTOR®, I learned that fact early on.

Helping your clients deal with form overload

Real estate transactions involve pages and pages of forms, and a key part of your job is to help consumers navigate their way through them.

Hotsheet: Household safety tips from IBC

The short, dark days at this time of year provide an opportunity to turn your attention to household safety.

Joining a committee or task force is a great way to meet colleagues and make a contribution to the real estate profession.

Market Watch: Green real estate conference

The business case for green buildings has never been stronger. Market interest in greening new and existing buildings is at an all-time high.

OREA wants your input

Join OREA’s research panel and your valuable opinions will help to guide policies, develop educational opportunities and evaluate OREA services.

Stay safe while you’re on the job

Pay attention to safety issues and develop good habits to ensure that you keep safety in mind at all times when working in real estate.

Updates to forms and clauses

The Standard Forms Committee of the Ontario Real Estate Association (OREA) has approved the revisions and creation of new forms and clauses for 2015.

Breaking up is hard to do: Dumping a client

November 20, 2014

Dumping a client does not happen often, but over the course of your real estate career a breakup or two is bound to occur.

Tips to avoid a client breakup

Pre-qualify buyers. Sometimes they are not realistic. Everything comes down to qualifying. Sort out wants, needs and “must haves” and make sure that the money for a purchase is actually available.

Jobs, economic activity threatened by land transfer tax

A significant loss of jobs and economic activity in Mississauga, London, Hamilton, Ottawa and Thunder Bay will occur if a municipal land transfer tax is imposed in those cities

Hotsheet: Index Home Buyers’ Plan: CREA

The Canadian Real Estate Association (CREA) has launched a call to action to REALTORS® to urge the government to index the Home Buyers’ Plan (HBP) to inflation.

Market Watch: Businesses rely more on mobile technology

Reco decision: advertisement causes problems.

The following decision from RECO Discipline and Appeals Hearings has been condensed and all names have been changed.

Ad campaign to promote REALTOR® Value continues

Promoting the value of using a REALTOR® to the public has been the focus of a recent advertising campaign by the Ontario Real Estate Association (OREA), and the message is getting through.

Legal Beat: Deception over fire leads to lawsuit

One of the buyers of a property had respiratory problems. Before making a purchase, the buyers instructed their real estate representative to ask whether a fire had ever occurred in that house.

Political Affairs Conference in November

The Ontario Real Estate Association will hold its 2014 Political Affairs Conference (PAC) from Nov. 23 to 25 at Toronto’s Park Hyatt Hotel, 4 Avenue Road.

Interested in running for a position on OREA’s 2015 board of directors?</strong> The following positions are up for election: four Provincial Directors

Call for candidates - Foundation

Interested in running for a position on the Foundation’s 2015 board of directors? The following positions are up for election: three REALTOR® Directors

Reaping rewards from rental sales

October 23, 2014

Many buyers today are looking for investment properties like apartment buildings or vacation homes that they can rent out.

Budgeting most important strategy for home buyers: Research

Ontarians planning to buy a home in the next two years cited various financial strategies to save for a down payment

RECO decision: Sales rep enters property without permission

Hotsheet: tips to prevent house fires.

Fires claim lives and cost millions of dollars in damage every year. To prevent these tragedies, the Insurance Bureau of Canada offers tips for preventing house fires and saving lives.

Market Watch: Employment growth looks brighter for late 2014

A rebound in economic growth recently and expectations for future solid growth bode well for employment prospects, according to a new report.

The Ontario Real Estate Association will hold its 2014 Political Affairs Conference (PAC) from Nov. 23 to 25 at Toronto’s Park Hyatt Hotel, 4 Avenue Road.

Train for success with new online course

Real Estate Professionals at Work is a new online professional development course designed for REALTORS® to apply the principles of professionalism in their day-to-day practices.

Legal Beat: Caught in a “net-net” of confusing language

The commercial tenant in this case had a three-year lease that was renewed for two years and then for a further two years.

Second video produced in OREA series

A new video aimed at helping you to connect with consumers has been produced by the Ontario Real Estate Association (OREA).

Technology and strategy the focus of events

Boosting your technology skills and enhancing your strategic approach to your real estate business are the focus of a series of events offered this fall by the Ontario Real Estate Association.

Gimme five: The deposit and five business days

September 23, 2014

Once an offer is accepted by both parties in a real estate deal, the buyer’s deposit must be delivered to the brokerage in accordance with the terms outlined in the Agreement of Purchase and Sale (APS).

Quiz: Deposit and five business days

Here’s a quiz to test your knowledge. In all of these instances, assume that the offer has been accepted by both parties to an APS and that the deposit in question has been delivered in accordance with the terms of the APS. T

Index reveals consumer perceptions of market

What do Ontario consumers really think of the current real estate market?

Hotsheet: New RECO mobile app

A new mobile app was launched by the Real Estate Council of Ontario (RECO) this summer.

Market Watch: Price surges in big cities mask temperate national market

Home prices are expected to increase steadily in Canada for the remainder of 2014, with the average price of a home in Canada rising between 3.9 and 5.2 per cent in the year’s second quarter, according to a new report.

Serving as a resource and a mediator

The consumer perception of what we do in our line of work is very different from the reality of my daily activities.

Legal Beat: Structure is aerodrome, not boathouse, owner argues

The purchaser of this Ontario recreational property was a long-time developer.

Association wins diversity award

The Ontario Real Estate Association (OREA) has won an award for its efforts on workplace diversity.

New and improved student handbook

An updated and enhanced student handbook produced by the OREA Real Estate College is now available.

Good riding weather helped to ensure the success of this year’s Motorcycle Ride for Charity.

Dollars and sense: Managing your money

August 23, 2014

Starting out in real estate can be financially challenging, especially given the initial lack of income and the volume of upfront expenses.

Technology events across the province

Keep your technology skills sharp by attending one or more in a series of events offered by the Ontario Real Estate Association in the coming months.

Hotsheet: Global property market the focus of conference

The 9th annual Global Property Market is a targeted opportunity for Canadian institutional investors, real estate income trusts, real estate operating companies and private equity funds.

Market Watch: Manufacturing sector continues to be sluggish

Manufacturers in Canada recently signalled the slowest improvement in overall business conditions in four months, largely reflecting a further moderation in output growth,

Etiquette and best practices for real estate showings

July 27, 2014

Security is important to consumers and it’s one of the reasons they choose to use a REALTOR®.

Legal Beat: Choose words carefully in commercial documents

The listing agreement in this case stipulated that: a commission will be paid if the property is sold; the commission will be paid after the sale is completed;

Index to track consumer opinions

The Ontario Home Ownership Index is an exciting new initiative from the Ontario Real Estate Association (OREA) to help you learn more about the public’s views on the real estate market across the province and at a more local level.

Video promotes value of REALTORS®

A new video aimed at helping you to connect with consumers has been produced by OREA.

Running a real estate brokerage

June 22, 2014

While many real estate salespeople focus on serving consumers who are buying or selling properties, a broker of record serves a different clientele -- the REALTORS® themselves.

Municipal land transfer tax costs Toronto billions

The municipal land transfer tax (MLTT) in Toronto is responsible for a massive loss of economic activity and a corresponding loss of thousands of jobs, according to new research by the Ontario Real Estate Association (OREA).

Hotsheet: Support the Motorcycle Ride for Charity

Revving up their engines, REALTORS® from across the province will be participating in this year’s Motorcycle Ride for Charity.

Market Watch: Financial planning crucial for persons with disabilities

A financial plan can play a pivotal role in easing financial stress for the 3.8 million Canadians with a disability and those caring for them, according to a new report.

Wired Office: Making your home smarter with technology

It used to be that in order to turn a light on or off, you walked over to it and flicked a switch. Since then we have progressed to timers, so if you aren’t home, you can set the lights to go on and off at predetermined times.

Legal Beat: Commercial tenant alleges breach of good faith

Is there a duty at common law to bargain in “good faith”? Various courts in the United States have replied that there is. However, most Canadian courts have responded that there is not.

Technology events in 2014

If you want to stay on the cutting edge of technology in real estate, come to one or more in a series of events offered in the months ahead by the Ontario Real Estate Association.

Foundation announces new name and logo

Cross-cultural competency is good business

May 26, 2014

The ability to work with people of different cultures and backgrounds is not only a good interpersonal skill, but it can also help your business.

Hotsheet: Heart trumps head among buyers - RECO

The heart often overrules the head when it comes to buying a home, according to a new study into the behaviour of Ontario’s home owners released by the Real Estate Council of Ontario (RECO).

Market Watch: CMHC to increase mortgage insurance premiums

Following the annual review of its insurance products and capital requirements, CMHC is increasing its mortgage loan insurance premiums for home owners and rental properties of one to four units, effective May 1.

Campaign launched to stop spread of tax

Preventing the spread of municipal land transfer taxes (MLTT) is the focus of a new advocacy campaign at the Ontario Real Estate Association.

Goal setting in real estate

With the arrival of spring, we are often filled with a sense of renewal. This is an ideal time to assess our business plan and set new goals.

Government examines electronic signatures legislation

Electronic agreements of purchase and sale will mean faster and more convenient transactions for REALTORS® and consumers.

Legal Beat: Signed agreement facilitates payment of commission

The sellers in this case initially tried to sell their home in Ancaster, Ontario by themselves. They subsequently listed it with the REALTOR® on May 6. The commission was 5 per cent and there was a 60-day holdover period.

Find out what your association has been doing for you over the past year. A new annual report from the Ontario Real Estate Association (OREA) outlines the products and services available to you, as well as summarizing association activities over the past year.

Take part in new technology events

If you want to stay on the cutting edge of technology in real estate, come to one or more in an upcoming and popular series of events offered by the Ontario Real Estate Association.

Sponsors contribute to conference success

The OREA 2014 Annual Conference at Toronto’s Westin Harbour Castle Hotel in March was a great success.

Guiding first-time home buyers

April 22, 2014

Buying a home can be a highly emotional experience, and REALTORS® who work with first-time buyers often find themselves tempering their clients’ dreams with a dose of reality.

Hotsheet: NAR conference and expo

Registration opens on May 7 for the 2014 REALTORS® Conference and Expo organized by the U.S.-based National Association of REALTORS® (NAR).

Market Watch: Financial services show progress on women’s issues

Eighty-five per cent of Canadians feel that the financial services industry has made progress in addressing women’s issues, but more work needs to be done.

OREA website engages viewers

A dramatic increase in mobile traffic to the website of the Ontario Real Estate Association (OREA) has occurred over the past year, according to a new report.

Being thorough in your real estate transactions

Thoroughness takes time - a commodity often in short supply in our line of work. The demands on our time, from client meetings and office work to family commitments, can make it difficult for REALTORS® to be thorough.

Legal Beat: Dispute over amount of parking leads to lawsuit

This case deals with the amount of parking provided to a commercial tenant in a shopping mall. The tenant, Farm Boy Inc., operates grocery stores in the Ottawa area and leased space in a mall.

OREA board of directors for 2014

The Ontario Real Estate Association officially installed its new President and Board of Directors at the Annual Assembly Meeting and Leadership Conference from March 4 to 6 in Toronto.

Foundation board of directors for 2014

The REALTORS Care Foundation officially installed its new President and Board of Directors for 2014 at the OREA Leadership Conference in Toronto.

Younger Ontarians value owning home

Home ownership is important to the younger residents of Ontario, according to a new survey conducted by Ipsos Reid for the Ontario Real Estate Association (OREA). In the research, 79 per cent of those surveyed in Generation X

Commercial real estate offers challenges, opportunities

March 21, 2014

REALTOR shows buyers a commercial buildingWalk through any town in Canada and you’ll undoubtedly see signs on lawns and billboards promoting local brokerages.

Flexible remuneration a positive change

REALTOR workingBrokerages will now be able to give consumers more options on how to pay for real estate services.

Hotsheet: CanTech Conference in April

The Canadian Real Estate Technology Conference will take place on Thursday, April 10 at the Metro Toronto Convention Centre, South Building.

Market Watch: Seller’s market predicted in large cities

Conditions for the real estate market across Canada continue to be strong and increasing prices are predicted for the spring market, a new report states.

Customer Service Centre lends a helping hand

If you’ve ever had a question about courses you need or continuing education you wish to pursue in real estate, the Customer Service Centre at the OREA Real Estate College is there to respond.

Legal Beat: Seller’s remorse occurs after rumours of demolition

The house owner in this case sold her property for $1.7 million and then changed her mind. Her major complaint was that she learned that the buyer might demolish the house.

Home inspectors should be regulated

The Ontario home inspection industry should be regulated, according to the Ontario Real Estate Association.

Thunder Bay board turns 100

The Thunder Bay Real Estate Board is celebrating its 100th birthday in 2014.

Leave emotions out of negotiations

February 21, 2014

Negotiating in real estate can be difficult when emotions get in the way.

Campaign boosts public perception of REALTORS®

Realtor shows professional man a property on left side of campaign posterAn exciting new ad and media relations campaign has enhanced the public perception of REALTORS®, recent surveys reveal.

Hotsheet: Land and development conference in Toronto

The 10th annual Land & Development Conference will take place on May 13, 2014 at the Metro Toronto Convention Centre, North Building.

Market Watch: Canada to benefit from a strengthening U.S. economy

Canada’s economy is expected to perk up in 2014, supported by an increase in exports and strengthening business investment, according to a new report.

Estimating the value of a heritage property

Valuing a heritage home requires certain specialized skills.

Legal Beat: Prove you took reasonable steps to fulfill terms

A typical OREA conditional clause may include the following words: “Unless the buyer gives notice in writing delivered to the seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule

Optimism about market, economy

Ontarians seem hopeful about the provincial real estate market, according to new research conducted by the polling firm of Ipsos Reid for the Ontario Real Estate Association (OREA).

The Ontario Real Estate Association’s Open Forum, Annual Assembly Meeting and REALTORS Care Foundation Annual General Meeting will take place on Wednesday, March 5 at the Westin Harbour Castle Hotel in Toronto.

Stressed out: Managing workplace stress

January 26, 2014

In today’s go-go-go world, where wireless connections allow for instant communication any time of day or night, no-one is immune to stress from the fast pace of life.

STRESS BUSTING TIPS:

Be aware of your stressors and take the following preventative steps:

Tools and technology series a hit

The demand for skills and knowledge of tools and technology in real estate continues to grow, according to organizers of a new series of events offered this past fall by the Ontario Real Estate Association.

Carbon monoxide detectors to be mandatory in homes

The Ontario legislature recently passed a bill to make carbon monoxide detectors mandatory in homes across the province.

Market Watch: Tighter inventory for commercial property

While unprecedented levels of demand were reported for commercial real estate in key Canadian markets in 2013, a shortage of available product continues to hamper sales activity virtually across the board,

Wired Office: Out with the old, in with the new

Interested in earning some quick cash (or gift cards)? It’s as easy as gathering up your old technology and selling it or trading it in.

Legal Beat: Words matter in agreements and can lead to litigation

Updates to forms and clauses for 2014.

The Standard Forms Committee of the Ontario Real Estate Association (OREA) has approved the revisions and creation of new forms and clauses for 2014.

Time management in real estate

December 7, 2013

In the fast-paced world of real estate, time management is more important than ever.

Time management technology tips

Take a basic computer course to learn more about how to operate your system. If something goes wrong, there’s a greater likelihood that you’ll have some idea of what to do.

Lobbying for personal real estate corporations

In Ontario, real estate salespeople are among the few regulated professions that are not permitted to incorporate under current laws.

Hotsheet: Green real estate conference

Although robust economic conditions have not yet returned across North America, market interest in greening new and existing buildings is at an all-time high.

Market Watch: 2014 housing starts to remain stable: CMHC

Canada Mortgage and Housing Corporation (CMHC) expects total housing starts to be stable in 2014, as fundamentals such as employment growth and migration continue to support the Canadian housing market.

Building a client base in real estate

As a REALTOR®, I am always thinking about my client base – how to build it and how to maintain it.

Legal Beat: Two sets of buyers leads to court case

In this case that took place in the United States, an Ohio couple wanted to buy a house.

Call for candidates - OREA

Interested in running for a position on OREA’s 2014 board of directors? The following positions are up for election

Interested in running for a position on the Foundation’s 2014 board of directors? The following positions are up for election

Amendments: Second thoughts on the APS

November 12, 2013

An amendment – a change to one or more terms in an agreement – is a tool commonly used in real estate.

Media successes in REALTOR® value campaign

This fall marks the launch of an exciting new campaign to promote the value of REALTORS®.

Hotsheet: Conversations before living together

Moving in together is a big step in any relationship, and RE/MAX has provided some suggestions of discussions that couples should have before taking the plunge.

Market Watch: Online is where it's at for small business

Canadians choose small businesses based largely on how those firms use technology, according to a survey by TD Canada Trust.

Wired Office: Sharing is caring with social media

Social media is many things. It is about conversations, storytelling and relationship building through the sharing of useful content. This column focuses on how to share content.

Legal Beat: Driving log would add evidence to tax appeal

In this case, the appellant is a self-employed residential REALTOR® working with RE/MAX who was remunerated on a commission basis.

The Ontario Real Estate Association will hold its 2013 Political Affairs Conference (PAC) from Nov. 26 to 28 at Toronto’s Courtyard Marriott Hotel.

Dealing with difficult clients

October 11, 2013

Dealing with challenging clientsDifficult clients can drain you of time and energy and compromise other transactions.

An exciting new advertising campaign to promote the value of REALTORS® has been launched by the Ontario Real Estate Association.

Record property damage claims after summer flood

More than $850 million in insurance claims have been filed following property damage caused by the intense record rainfall and flash floods in Ontario that occurred on July 8, the Insurance Bureau of Canada (IBC) reports.

Market Watch: U.S. foreclosures down from last year

Foreclosure inventories fell 32 per cent in July compared to the previous year, another sign that the foreclosure crisis in the U.S. may finally be over, according to the latest foreclosure report released by CoreLogic and posted to the newsroom of the National Association of REALTORS® (NAR).

RECO: Unsupervised access to seller’s home

Legal beat: increase in development fees passed on to buyer.

Ontario municipalities charge builders and developers fees for things such as building permits and development costs.

The Ontario Real Estate Association will hold its 2013 Political Affairs Conference (PAC) from Nov. 26 to 28 at Toronto’s Courtyard Marriott Hotel.

Learn more about social media

If you want to learn more about using social media, you can take part in a free webinar series hosted by the Ontario Real Estate Association (OREA) and the Toronto Real Estate Board (TREB).

Take part in technology events

If you want to stay on the cutting edge of technology in real estate, come to one or more events being offered this fall by the Ontario Real Estate Association.

FINTRAC compliance: Know your responsibilities

September 9, 2013

Enduring a FINTRAC audit takes time and effort, but failure to comply can have serious consequences for you and your brokerage.

First anniversary of service for OREA members

A new service was launched a year ago for members of the Ontario Real Estate Association (OREA) who are the subject of a complaint to the industry’s regulator, the Real Estate Council of Ontario (RECO).

Canadian Apartment Investment Conference

Investors, developers, managers and owners may be interested in the 2013 Canadian Apartment Investment Conference happening on Tuesday, Sept. 24 at the Metro Toronto Convention Centre.

Market Watch: Baby boomers look to downsize

A majority of REALTORS® say their clients between the ages of 48 and 67 are searching for smaller properties, according to a June survey.

Take part in new technology events across Ontario

If you want to stay on the cutting edge of technology in real estate, come to one or more in a series of events offered this fall by the Ontario Real Estate Association.

iCollege courses: Affordable and informative

How much do REALTORS® know about the Buyer Representation Agreement, the Listing Agreement, and the National Do Not Call list?

Legal Beat: Verbal agreement doesn't hold up in court

Should the courts allow parol evidence in the context of a written agreement?

Watch for ad campaign

The value of using a REALTOR® is at the heart of an exciting new advertising and media campaign being launched by the Ontario Real Estate Association (OREA).

Motorcycle riders put the rubber to the road this past July to raise funds for the REALTORS Care Foundation.

Enrol in leadership workshop

You can earn two Continuing Education credits by enrolling in a Leadership 200 workshop being offered in class on Friday, Sept. 27 at the Ontario Real Estate Association (OREA) office in Don Mills.

Misleading advertising and how to avoid it

August 9, 2013

Advertising matters in real estate -- it can be a powerful tool to attract clients.

Summer energy saving tips for home owners

Take steps to make your home or cottage cool, comfortable and sustainable this summer since energy efficiency is always in style, says Phil Dorner, president of the Ontario Real Estate Association.

Gen Y still wants to own homes

Generation Y -- those individuals born between 1980 and 1994 -- still want to own a home despite the challenges, according to a survey.

Market Watch: Six in 10 GTA home owners plan to buy again

Real estate prices continue to rise, but a new poll says that hasn’t damaged home owners’ belief in the market in the Greater Toronto Area.

Wired Office: Useful apps for real estate professionals

Most people with smartphones and tablets take advantage of their devices by installing apps that provide them with up-to-the-minute weather and news reports, improve productivity or just for fun. Admittedly, some apps are more useful than others.

Legal Beat: Faulty valve leads to breach of contract and lawsuits

The parties entered into an agreement of purchase and sale on this high-end B.C. property with a closing date no later than Oct. 20, 2008.

Leadership Now e-newsletter

July 5, 2013

If you’d like to learn more about volunteering and leadership, check out the new electronic newsletter produced by the OREA Centre for Leadership Development.

Our graduates speak for themselves

Listen to what our graduates are saying about their experiences at the OREA Real Estate College and why it is a great place to learn.

Watch for fall OREA events

Stay on the cutting edge of technology in real estate by attending a series of events being organized this fall by the Ontario Real Estate Association.

Support the Motorcycle Ride for Charity

It’s not too late to pledge your support for this year’s Motorcycle Ride for Charity.

Website improvements at OREA

The Ontario Real Estate Association (OREA) website continues to evolve to meet the needs of our students and members.

Safety is paramount for swimming pool owners

June 5, 2013

Ten seconds is all it takes for someone to drown.

Tips for owners of backyard pools

Vigilance - Never leave a child alone near water, not even for a second. Don’t be distracted by a ringing phone, doorbell, task or another child.

In the swim: Pools and real estate

If you’re selling a home with a swimming pool, be sure your buyer is aware of the risks and responsibilities as well as the benefits.

Housing starts moderate: CMHC

Monthly housing starts in Canada totalled 182,754 units compared to 188,369 a month earlier, according to a news release from the Canada Mortgage and Housing Corporation.

Market Watch: Low interest, flattening prices support market

Canada’s housing market is being supported by an unprecedented combination of low interest rates, flattening house prices and a strengthening economy, according to a recent survey.

RECO decision: Illegible document leads to complaint

Merger of two boards announced.

Two Ontario real estate boards have announced their merger following a membership vote on April 17.

Legal Beat: Disclosing presence of sexual offender in neighbourhood

Questions sometimes arise in real estate about how to deal with the sale of a property in the neighbourhood of a convicted sex offender.

Electronic real estate transactions

The Ontario Real Estate Association (OREA) successfully advocated for a legislative amendment to the Electronic Commerce Act, 2000, that would facilitate faster, smoother real estate transactions.

Attention to detail crucial at open houses

May 5, 2013

First impressions can apply to property as well as people.

Enhancing electronic real estate transactions the goal of lobby efforts

Electronic agreements of purchase and sale save time and money for consumers and REALTORS®.

NAR conference and expo

Registration opens on May 6 for the 2013 REALTORS® Conference & Expo organized by the U.S.-based National Association of REALTORS® (NAR).

Market Watch: First-time buyers still a force

Four in 10 Canadians who plan to enter the housing market in the next two years are first-time buyers, according to a new poll.

Wired Office: Tell your story visually with infographics

Example of a word cloudA picture is worth a thousand words, which helps explain the growing popularity of infographics (information + graphics).

Marijuana grow-op registry supported by OREA

The creation of a province-wide registry of homes that were former marijuana grow operations or clandestine drug laboratories is the goal of a bill introduced in the provincial legislature and supported by the Ontario Real Estate Association (OREA).

Research provides snapshot of REALTORS®

A new survey by the Ontario Real Estate Association (OREA) offers a snapshot of the association’s members across the province.

Legal Beat: Confusion over condo boundaries leads to decade of litigation

The buyer in this case bought a condominium unit in Toronto. She was under the impression that the unit comprised three floors, from the basement floor up to the ceiling of the third floor of a townhouse complex.

Find out what your association has been doing for you over the past year.

Stay connected with OREA app

Get up-to-the-minute news on the real estate industry that you can easily share through the free OREA application for iPhone and iPad.

Single parenting a challenge in real estate

April 5, 2013

Working in real estate is a challenge at the best of times, but combining it with single parenthood is even more daunting.

Foundation supports worthy causes

Many people are not aware of all of the charitable work and volunteer time that REALTORS® contribute to worthy causes.

Many boomers don‘t plan to downsize: survey

Despite the perception that aging baby boomers may create a glut of traditional single-family homes as they downsize into smaller residences, a new survey shows that demand for suburban detached homes remains strong among those born between 1947 and 1966.

Market Watch: Housing starts show moderation

Housing starts in Canada totalled 195,087 units in February, revealing a moderation in demand for housing that means builders are adjusting accordingly, according to a recent news release from the Canada Mortgage and Housing Corporation.

Taking your website from static to standout

Taking your website from static to “standout” was the subject of a talk I heard recently in New York. Nicole Nicolay (@nik_nik), founder of Agent Evolution, spoke about ways to transform your website from the same old static venue into something that stands out from the rest and helps generate more business leads.

Legal Beat: Plenty of blame to go around in RECO case

This situation involved two salespeople who worked at the same brokerage.

New OREA 2013 board of directors

The Ontario Real Estate Association officially installed its new President and Board of Directors at the Annual Assembly Meeting on March 6.

Duty of care to clients and customers

March 5, 2013

The difference between a client and a customer is a crucial one in real estate.

RECO announces changes to mandatory continuing education

The Real Estate Council of Ontario (RECO) recently announced changes to the way that mandatory continuing education is delivered to real estate registrants in the province, effective Aug. 1.

Shoe cover dispensers keep floors clean

If you want floors and carpets to stay clean at open houses, an automatic shoe cover dispenser may interest you.

Market Watch: Brief mild correction forecast

Fewer homes are expected to trade hands in the first half of 2013, which should slow the pace at which home prices rise, according to a new survey.

My first steps as a REALTOR® and working mom

When I started working as a real estate administrator, I was 19 years old, didn’t own property and definitely didn’t have kids. I had a nine-to-five job and was ready to take on the world.

Tax credit supports accessibility for seniors

A tax credit for modifications to help Ontario seniors make modifications in their homes to improve accessibility is now available.

Legal Beat: Property tax dispute leads to appeal court

The owner of a Toronto apartment building appealed his property tax assessment. Before the city made a decision on the taxes, he sold the property.

Items can be viewed before voting

Members of the Ontario Real Estate Association who wish to examine proposed amendments to the OREA By-law prior to the Annual Assembly meeting can access the material on the OREA website.

OREA events in March

The OREA Open Forum, Annual Assembly Meeting and REALTORS Care Foundation Annual General Meeting will take place on Wednesday, March 6.

OREA website a hit

The OREA website continues to attract more viewers with features that make it faster and easier to find what you need.

Winter's tale: When the money isn't coming in

February 18, 2013

If you’re used to a regular paycheque, working for commission can be a big adjustment.

REALTORS® are home owners too

Most REALTORS® (88 per cent) surveyed for recent OREA research own their own homes.

Market Watch: Fewer mortgages in arrears: CMHC report

As a result of prudent mortgage lending practices, the number of mortgages in arrears in Canada has been trending downward, according to a report released recently by Canada Mortgage and Housing Corporation (CMHC).

App provides easy access to OREA services

iPhone with OREA appA dynamic new mobile application has been launched by the Ontario Real Estate Association.

Wired Office: Pinterest for business

Pinterest is a virtual bulletin board that lets you organize and share all the beautiful things you find on the web.

Legal Beat: Home renovation not substantial enough for rebate

After being denied a tax rebate for a home renovation, this Quebec taxpayer appealed. He had applied for a GST rebate through a program that enabled home owners to recoup some costs for work on a new residential complex or one that had undergone substantial renovation.

The OREA Open Forum, Annual Assembly Meeting and REALTORS Care Foundation Annual General Meeting will take place on Wednesday, March 6, 2013.

Leadership podcasts available

Gain valuable insights into leadership in just five minutes. Podcasts featuring a variety of renowned speakers and authors are now available for you to hear in short segments via the Ontario Real Estate Association website.

Thriving Young Professionals Network

The Young Professionals Network (YPN) at the Ontario Real Estate Association continues to grow.

Preparing for the booming seniors' market

January 24, 2013

The baby boom generation forms a demographic bulge that has reshaped society as it passed through.

Stopping the municipal land transfer tax

Municipalities in Ontario are gearing up to force the province to grant them the authority to charge a municipal land transfer tax (LTT) on home buyers.

Insuring a heritage home can be challenging

The market for heritage homes – although not as frenetic as the condo boom -- has rapidly gained interest in recent years.

Tablet ownership on rise

Almost half of REALTORS® (47 per cent) own a tablet computer, and nearly 62 per cent said they plan to buy one within the next two years.

MarketWatch: Slight improvement in affordability

Canada’s housing market became more affordable as a result of modest declines in home prices and further gains in household incomes, according to a new report.

Ontarians want to know home’s grow-op history

An overwhelming majority of Ontario residents (93 per cent) want to know if the home they plan to buy was once a marijuana grow-op or clandestine drug lab, a new survey reveals.

Legal Beat: Document in commercial case means what it says

The owners of a hotel first listed their property for sale with a RE/MAX brokerage, where Angelo Muraco worked as their REALTOR®. Although several potential buyers expressed interest, no sale occurred.

The OREA Open Forum, Annual Assembly Meeting and REALTORS Care Foundation Annual General Meeting will take place on Wednesday, March 6 at the Sheraton Centre Hotel, 123 Queen Street West, Toronto.

Motorcycle ride supports charity

The Motorcycle Ride for Charity organized by the REALTORS Care Foundation has now raised more than $30,000.

Video promotes volunteering

A new video to help your real estate board recruit new volunteers has been developed by the OREA Centre for Leadership Development.

Foundation brochure highlights good work

A new brochure has been published highlighting the good work of REALTORS® in fundraising for charities and shelters in Ontario.

Warning signs of potential real estate fraud

December 5, 2012

It may be as simple as falsifying information on a mortgage application.

New videos promote REALTOR® value

Two videos that promote the value of using a REALTOR® have been created by the Ontario Real Estate Association (OREA).

Entrepreneurs plan to hire

More Canadian entrepreneurs are planning to hire employees this year, according to a new survey.

MarketWatch: Prices up but sales fall

Canadian prices have edged up but the number of house sales has fallen compared to the same period last year, according to a recent survey.

Lifestyle marketing: The next big thing

When we sell a property, our product is not just four walls and a roof.

Identity theft hits real estate professional

User-friendly upgrade for webforms®.

Ontario real estate salespeople and brokers who use WEBForms® should watch for upgrades to this product in the new year.

Value for your OREA dues

The $110 per year that you pay to the Ontario Real Estate Association (OREA) enables you as a member to receive products and services that are most important to you.

Legal Beat: Failure to communicate leads to botched deal

This Ontario deal was supposed to close on July 27, but the transaction failed to close. The seller resold the property and sued the buyer for losses of $28,000.

Updated forms and clauses will soon be available on the Ontario Real Estate Association website.

Last call: It’s our birthday and you get the gifts

The OREA Real Estate College is offering every member a free nine-credit bundle of Continuing Education online courses.

Is anyone there? Vacant possession and the APS

November 15, 2012

Vacant possession & the APSThe concept of vacant possession is sometimes glossed over by real estate practitioners, but you ignore it at your peril.

Sellers want to understand market and legal processes

Beyond worrying about the state of the real estate market, Ontarians are most concerned about understanding the process and legal documents when selling a home, a new survey reveals.

Preparing for severe weather

Severe weather and hurricanes can have a devastating impact on communities and homes, according to the Insurance Bureau of Canada, which follows developments related to severe weather across the country.

MarketWatch: Farmland prices reach new heights

The value of Canadian farmland continues to reach new heights, according to the RE/MAX Market Trends Report, Farm Edition 2012.

Wired Office: Tips to keep your online passwords safe

We often hear that “strong” passwords are an important part of keeping our online transactions safe.

Join research panel for chance to win $1,000

Share your voice and let us know what the Ontario Real Estate Association can do for you.

New OREA mobile app to be launched

A dynamic new mobile application is being developed by the Ontario Real Estate Association.

Legal Beat: Multiple representation and the dangers of duality

While working on Legal Forum, I received the following question from a REALTOR® on an issue related to multiple representation, formerly known as dual agency.

Call for candidates – Ontario Real Estate Association

Interested in running for a position on OREA’s 2013 Board of Directors?

Call for candidates - REALTORS Care Foundation

Interested in running for a position on the Foundation’s 2013 Board of Directors?

National customer service week

The Ontario Real Estate Association joined thousands of companies around the world to participate in National Customer Service Week.

Political affairs conference

The Ontario Real Estate Association is holding its Political Affairs Conference (PAC) this month.

It’s our birthday and you get the gifts

Csae volunteer award.

Dinaz Garda, CAE, manager, executive office operations at OREA, has been honoured with the 2012 President’s Award from the Trillium Chapter of the Canadian Society of Association Executives (CSAE).

Form frenzy: Waivers mistakenly used over fulfillments

October 12, 2012

In the heat of real estate deals, changes to documents often happen quickly in a flurry of pen strokes.

Buyers prize safety, value, location

Safety, perceived value and a location close to shopping or transportation are the most important factors Ontarians consider when buying a home, according to a new survey.

Rookie mistakes by first-time buyers

The majority of buyers say they would have done some things differently after purchasing a home, according to a new survey.

MarketWatch: National housing market at tipping point

The average price of a home in Canada increased year-over-year between 3.3 and 5.5% in the second quarter of 2012, according to The Royal LePage House Price Survey and Market Survey Forecast.

Political affairs conference focuses on three issues

November is fast approaching, and so is OREA’s Political Affairs Conference (PAC).

RECO decision: Absence of seller leads to problems

Podcasts on leadership available to members.

Podcasts on leadership available to OREA membersYou can gain valuable insights into leadership in just five minutes.

Legal Beat: No deal and no commission without clear title

In a typical real estate transaction, the sellers must provide clear title on closing. The OREA agreement of purchase and sale (APS) says:

New service for OREA members

A member of OREA who is the subject of a RECO complaint can now speak with OREA lawyer Diana Russo, who will provide legal information on the RECO investigative and adjudicative process.

Foundation gala supports good cause

The REALTORS Care Foundation will host a gala on Saturday, Oct. 20 at the Premiere Ballroom & Convention Centre in Richmond Hill, north of Toronto.

Charity golf tournament raises $8,000

Local REALTORS® from the Rideau-St. Lawrence Real Estate Board raised more than $8,000 in a golf tournament that they donated to five food banks in the area.

Married to it: Real estate spouses must juggle schedules

September 4, 2012

When her husband started his real estate career, Elaine Rocca recalls that he worked most evenings and was often out until 1 and 2 a.m. presenting offers and getting established in the field.

Movement toward mergers in some real estate boards

Real estate in cottage country often attracts more attention in warmer months, but this year several areas piqued the interest of more than just consumers -- real estate professionals were watching closely too.

New registrar announced by RECO

The Real Estate Council of Ontario (RECO) announced the appointment of Joseph (Joe) Richer as its next registrar, effective Sept. 17.

Focus on global property investment

The seventh annual Global Property Market Conference offers a unique, targeted opportunity for strategic information and networking on investment and development around the world.

Market Watch: Canadians support small business: survey

An overwhelming majority of Canadians (94 per cent) believe small businesses play a crucial role in the economy’s growth and almost nine in 10 view them as vital job creators, according to a new survey.

Legal Beat: Once it's sold, it's sold

The law indicates that on the date the bank signs an unconditional agreement of purchase and sale with a buyer, the original borrower has no further legal right to pay off his mortgage.

Political affairs conference in November

The Ontario Real Estate Association will hold its 2012 Political Affairs Conference (PAC) from November 20 to 22 at Toronto’s Courtyard Marriott Hotel.

Watch for upcoming YPN events

Several events are being planned this fall by the Young Professionals Network (YPN) at the Ontario Real Estate Association.

Motorcycle riders braved extreme heat this past July to participate in the Motorcycle Ride for Charity that left from the Ontario Real Estate Association’s Don Mills headquarters.

It's our birthday - and you get the gifts

Kwar celebrates 75th anniversary.

The Kitchener-Waterloo Association of REALTORS® (KWAR) is celebrating its 75th anniversary this year. Formed in 1937, the association now represents more than 1,200 real estate professionals and is the 15th largest real estate association in Canada.

Respect the client relationships of other brokerages

August 8, 2012

Do unto others as you would have them do unto you.

Interview with outgoing RECO registrar

After 10 years as registrar at the Real Estate Council of Ontario (RECO), Allan Johnston is retiring at the end of July.

Market Watch: Renters may make cottages affordable

A recent Royal LePage national survey shows that potential cottage buyers and those already in the market have different plans for generating income.

Ride the waves at 2012 RealREIT

The 2012 RealREIT (Real Estate Investment Trust) Conference takes place on Sept. 19 in Toronto.

Wired Office: Pin your hopes on Pinterest

Even if you aren’t yet a user of Pinterest, you’ve likely heard of it. Similar to a corkboard or bulletin board, this electronic locale allows you to “tack” or “pin” visuals and text to view and share with others online.

It’s our birthday -- and you get the gifts!

Celebrating OREA's 90th BirthdayThe OREA Real Estate College is offering every member a free nine-credit bundle of Continuing Education online courses.

Legal Beat: Buyer presented no evidence of water problem

The action arose after a house was purchased by the plaintiff, Ms. H. Graham in the City of West Quinte in 2002.

Letter to the editor

I really liked the article, “Keep clothing professional” that appeared in REALTOR® EDGE’s June issue. I’d like to add a couple of points:

Proposal supports electronic transactions

A private member’s bill that would facilitate the use of electronic agreements of purchase and sale for real estate transactions was introduced recently in the provincial legislature, and the concept has been endorsed by the Ontario Real Estate Association (OREA).

Newmarket brokerage wins team spirit award

For the fourth consecutive year, the Newmarket Century 21 Heritage Group has won the team spirit award for the Heart & Stroke Foundation’s York North BIG Bike fundraiser.

The Young Professionals Network (YPN) at the Ontario Real Estate Association has hosted several successful events recently, and more are scheduled in the future.

REALTOR® value videos win more awards

Two OREA videos that highlight the value of using a REALTOR® have won several awards recently.

June 11, 2012

Image of scales of justiceLegal Forum, one of the most popular features on the Ontario Real Estate Association’s website, has received its 5,000th question.

Keep clothing professional even in summer

As the weather warms up, hemlines seem to get shorter, necklines get lower and toes begin to make public appearances.

Commercial real estate conference in Ottawa

Discover what’s new in the commercial real estate industry at BOMEX, the Building Owners and Managers Association annual conference and exhibition, to be held Sept. 11 to 13 at the Westin Ottawa Hotel.

Market Watch: Ontarians positive about housing market

A house or condo is a good investment, according to nine out of 10 Ontarians, who show more confidence in real estate than those surveyed in other Canadian regions, according to the 19th annual RBC Homeownership Poll.

Find your unique value proposition in real estate

In order to stand out in the real estate industry, you need to find your UVP.

Legal Beat: Buyers ignored red flags, judge rules

The buyers did not have enough money on the closing date of July 6, 1999, to complete their deal. Their REALTOR® lent them $74,500.

REALTOR® value videos win prestigious award

Two OREA videos that highlight the value of using a REALTOR® won a silver medal from the Canadian Public Relations Society (CPRS) recently.

Electronic workshops offered to OREA members

If you’d like to take some professional development on leadership but are short on time or travel funds, a new eWorkshop format may be right for you.

Call volume up over last year

The volume of phone calls into the Customer Service Centre at OREA is up about 11 per cent over the same quarter last year, according to recent figures.

Motorcycle ride for charity leaves from OREA

Registration is now taking place for the Motorcycle Ride for Charity organized by the REALTORS Care Foundation.

RECO online transfers and terminations

The Real Estate Council of Ontario has launched a new service that allows online transfers and terminations.

OREA achieves national green status

May 6, 2012

The Ontario Real Estate Association has been awarded a prestigious national designation for outstanding environmental efforts.

Ask questions about UFFI in real estate transactions

Although the number of homes containing UFFI (urea formaldehyde foam insulation) has declined greatly in recent years, many real estate documents still take into account the existence of this controversial substance.

On the Markets: Optimism over economy declines, says survey

Ontarians were among the most optimistic in the country about the national economy two years ago, but their outlook has been sliding and they are now among the least optimistic, according to a recent survey.

Check water damage coverage, IBC urges

With warmer-than-normal temperatures occurring in many regions over the past winter, the Insurance Bureau of Canada (IBC) is encouraging Canadians to ensure that they have adequate water damage protection on their home insurance policies.

Market Watch: Continued higher house prices predicted

Ontario’s economic prospects for the next three years include moderate growth and continued high unemployment as government spending is cut and businesses expand carefully.

RECO Decision: Early birds break the rules

Legal beat: telephone discussion not an agreement, judge rules.

In this case, a REALTOR® sued for $1.25 million for commission related to undeveloped land sold for $29 million following the death of a farmer and landowner.

Annual report distributed around Ontario

The new annual report of the Ontario Real Estate Association has been published and distributed to real estate boards across the province.

Motorcycle ride for charity in July

Oreapedia adds new topic.

A new topic, Respect Client Relationships, has now been posted to OREApedia.

Fans of Facebook

More than 2,500 people now “like” the OREA Real Estate College Facebook page, the college reported.

Do your homework when choosing a mover

April 3, 2012

For some consumers, the most daunting aspect of the buying or selling process is the move itself.

Tapping into a trillion dollar boomer market

The baby boomers are flexing their demographic muscle once again.

New website dedicated to commercial title insurance

Canada’s largest insurer of commercial titles, First Canadian Title, recently launched a website designed specifically for the commercial real estate market.

Market Watch: Steady as she goes in year ahead

Housing markets are expected to remain steady in 2012 and 2013, according to the latest Canada Mortgage and Housing Corporation (CMHC) Housing Market Outlook.

Legal Beat: Trans-Atlantic meeting leads to lawsuit

The original meeting took place in England, where an Ontario real estate professional was participating in an emigration fair.

New board of directors at OREA

A new board of directors was installed for 2012 at the annual OREA leadership conference in Toronto.

Change of address for RECO

The Real Estate Council of Ontario (RECO) has moved office locations, as of March 26.

RECO candidates invited to OREA area meetings

Candidates running for a seat on the RECO board of directors are invited to attend an upcoming OREA area meeting.

The ABCs of prospecting techniques

March 4, 2012

In Glengarry Glen Ross, a movie based on the play by David Mamet, motivational salesperson Blake confronts the employees of a Chicago real estate office about their less than stellar performances.

OREA celebrates 90th anniversary

Back in 1922, a loaf of bread cost 12 cents and a pound of butter set you back about 70 cents.

Wired Office: Google+ your business

A few months ago, here in the Wired Office column in REALTOR® EDGE, you read about Google+, which is yet another social media platform that enables people to connect on the Web.

Land and development conference in May

Learn about development strategies, challenges, opportunities and risks as well as where land values in the Greater Golden Horseshoe are heading at the Real Estate Forum’s Land and Development Conference on May 1 at the Metro Toronto Convention Centre.

Market Watch: Price correction unlikely: report

House prices are expected to continuing going up across the country despite some high-profile reports to the contrary, a new survey reports.

Young Professionals Network invites members of all ages

More than eight out of 10 REALTORS® in the province are 40 years of age or older, according to a recent survey by the Ontario Real Estate Association.

Legal Beat: Advertising should be current and reflect reality

The developer in this Alberta case marketed land that was not yet subdivided.

Call for RECO board nominations

Members of the Real Estate Council of Ontario who are interested in serving on its 2012 board of directors are required to submit their nomination forms by Monday, April 2 no later than 2:00 p.m.

New price index launched by CREA

The Canadian Real Estate Association has launched the MLS® Home Price Index, in partnership with: the Toronto Real Estate Board, Real Estate Board of Greater Vancouver, Fraser Valley Real Estate Board,

Leadership education ranked outstanding

The OREA Centre for Leadership Development is the only one of its kind in North America, providing comprehensive, phased-in training to volunteer association leaders.

Slow seasons in real estate call for business plan

February 7, 2012

It’s a field known for seasonal ups and downs and market shifts.

Holdover clause is an ounce of prevention

Although many OREA standard clauses are designed to protect your clients, the holdover clause in a listing agreement was specifically created to protect REALTORS® by ensuring that you receive the commission you’ve earned if a house sells.

Conference focuses on going green

The Real Estate Forum’s Green Real Estate conference will examine the economics, benefits and value of green buildings.

Market Watch: Stable resale market predicted

Ontario housing demand is expected to slow in the coming months due to fewer first-time buyers and a modest pace in economic and job growth, says a recent CMHC report.

On the Markets: Retiring baby boomers may generate activity

Forty per cent of baby boomers in Ontario plan to move for their retirement, but many are waiting to sell their homes in the hope that values will increase, according to a recent report.

RECO: Registrant fails to check status of listing

The following decision from RECO Discipline and Appeals Hearings has been condensed. All names have been changed.

Legal Beat: Case illustrates how not to represent a buyer

This case involved the sale of a Niagara Falls motel. The registrant, Neelam Bhalla and her brokerage, Sutton Group Results, acted in a multiple representation (dual agency) situation in the sale of the motel by Surma, the seller, to the buyers.

Donation to human rights museum

Ontario REALTORS® have made a significant contribution to human rights with a donation of $55,000 to the Canadian Museum of Human Rights in Winnipeg, Manitoba.

Assembly Meeting open to members

All members are invited to attend the OREA Annual Assembly Meeting on Wednesday, February 29 at Toronto’s Sheraton Centre Hotel, 123 Queen Street West.

Foundation Meeting open to members

Immediately following the OREA Annual Assembly Meeting (see previous item) on February 29 will be the first REALTORS Care Foundation Annual General Meeting and elections for the foundation board of directors,

Leadership speakers featured at conference

The 2012 OREA Leadership Conference takes place from Feb. 28 to March 1 and features various motivating speakers at the event at Toronto’s Sheraton Centre Hotel.

Whose side are you on anyway? Multiple representation is a complex scenario

January 7, 2012

Representing more than one party in the same deal is a challenging scenario in real estate.

Advertising guidelines simplified by RECO

Issues related to advertising in real estate were among the most common complaints about registrants to the Real Estate Council of Ontario over the past year, according to the council’s 2010-2011 annual report.

New and revised forms for 2012 from OREA

Standard forms produced by the Ontario Real Estate Association play an important role in the day-to-day business of brokers and salespeople across the province.

Legal Beat: Use appropriate forms to avoid litigation

This case raises the issue of whether a real estate brokerage is entitled to a portion of the commission from the listing brokerage after a commercial sale when a Confirmation of Co-operation and Representation (OREA Form 320) has not been signed.

Mortgage broker re-licensing education

Licensed mortgage brokers or agents in Ontario will need to take an approved re-licensing (RE) course in order to renew their licenses by March 31, 2012.

Market Watch: Farmland prices on the rise

Rising agricultural values and tight inventory have pushed the price of Ontario farmland up significantly in the past year, according to RE/MAX Ontario-Atlantic Canada.

Immediately following the OREA Annual Assembly Meeting (see item above) on February 29 will be the first REALTORS Care Foundation Annual General Meeting and elections for the Foundation board of directors, with real estate boards being the voting members.

Become a better salesperson by honing your skills

December 3, 2011

You knew this going in – you need certain skills to be a successful real estate salesperson.

A new and better website at OREA

The Ontario Real Estate Association website has undergone a major renovation.

Wired Office: What to look for in an e-Reader

The wind is howling and the snow is falling. Safe and cozy indoors with a warm fire roaring in the fireplace, you are curled up in your favourite chair, happily reading your… ebook.

Home Ownership Matters campaign a success

The Ontario Real Estate Association hit the campaign trail during this fall’s provincial election with the Home Ownership Matters initiative.

Customer service the focus of accessibility law

Did you know that, as of January 1, 2012, a new law takes effect? The Customer Service Standard of the Accessibility for Ontarians with Disabilities Act (AODA) is part of a goal to make Ontario completely accessible for persons with disabilities by 2025.

Market Watch: Real estate professionals anxious over future

Canadian real estate professionals are increasingly anxious about prospects for the next year, as a sector that has led the country’s economic recovery shows signs of slowing along with the broader world economy.

RCMP launches grow-op strategy

Addresses of Canadian homes containing dismantled marijuana grow-ops will now be listed on the RCMP website as part of the National Grow Initiative.

Legal Beat: Title insurance can be a deal saver

A typical Ontario Agreement of Purchase and Sale (APS) requires that the sellers provide clear title on a property, subject to the stated matters that buyers accept.

OREApedia a terrific resource

January 3, 2011

Fifty-four real estate topics are now posted to OREApedia.

Handling stress in the field of real estate

November 3, 2011

Experiencing stressStiff competition, erratic hours, and an uncertain income are just a few of the reasons that a career in real estate can be stressful.

Reaching an agreement: Learn the essentials of the APS

One of the most important forms used in real estate on a regular basis is the Agreement of Purchase and Sale (APS).

RECO Decision: Marijuana grow-op not disclosed

On the markets: house prices rally due to low rates, stable economy.

The average price of a home in Canada increased between 5.7 and 7.8 per cent in the third quarter of 2011, compared to the previous year, according to a recent Royal LePage report.

LEGAL BEAT: Students in townhouse complex violate family provisions

A North Bay condominium corporation brought an application against the owners of townhouse units to enforce the terms of the declaration and bylaw registered many years ago.

Commercial real estate investment conference

The 2011 Real Estate Forum promises a hard-hitting and information-packed two days.

MARKET WATCH: Canadian real estate outperforms in developed world

Canada’s housing market stands out among developed world nations for its resilience and longevity, according to a recent report by Scotia Economics.

Interested in running for a position on OREA’s 2012 Board of Directors?

In February 2011, the voting members of the REALTORS Care Foundation passed the revised REALTORS Care Foundation Bylaw.

Break out of the mould: Watch for mould and water damage in homes

October 3, 2011

It’s a scenario you dread: You’re showing your clients the home of their dreams. Every room is better than the last and they’re falling in love with the place, when suddenly they recoil in horror and beat a hasty path to the door. The culprit? The harsh spectre of mould.

Doing business under the Do Not Call legislation

In a profession that relies on cold calls and consumer contacts, the national Do Not Call List may seem like an impossible roadblock for real estate professionals.

Ontarians moving more often

Seven out of 10 repeat home buyers in Ontario (71 per cent) are moving to larger or more luxurious homes and many are doing so earlier than originally planned.

MARKET WATCH: Outlook positive for commercial real estate

Canada’s top real estate executives are predicting a bright future for commercial real estate.

ON THE MARKETS: Resale housing market to stabilize by 2012

Fewer buyers and more listings will result in a more balanced resale housing market in Ontario over the next year, according to the third quarter Housing Market Outlook by Canada Mortgage and Housing Corporation (CMHC).

RECO Decision: Tenant had no right to sell

Legal beat: time well spent explaining buyer representation agreements.

A real estate brokerage sued for its commission under a signed Buyer Representation Agreement (BRA).

OREA volunteer leadership training in demand

The leadership training that has been developed by the OREA Centre for Leadership Development is in demand from other outside organizations.

“Like” us on Facebook

More than 2,000 people “like” the OREA Real Estate College Facebook page.

OREA leader elected chair of CSAE

Ed Barisa, chief executive officer of the Ontario Real Estate Association, was elected chair of the Canadian Society of Association Executives (CSAE) at the society’s annual conference in Saskatoon in September.

Emotions can hinder sale of matrimonial home after a marriage breakdown

September 1, 2011

You’ll encounter many different situations over the course of your real estate career, but one that can be particularly tricky is the sale of a matrimonial home following a marriage breakdown.

You’ve got mail: New clause offers added choice for electronic transmission

Sending documents by email and through the internet is becoming increasingly common in business, including real estate.

Energy retrofit program renewed

The federal government has renewed the popular ecoENERGY Retrofit - Homes program. Until March 31, 2012, homeowners can receive grants up to $5,000 to make their homes more energy-efficient and save energy costs

MARKET WATCH: More moderate housing market predicted

An unusually rapid recovery in the Canadian housing market played an important role in ensuring that Canada’s recession, although sharp, was also short, according to Bank of Canada Governor Mark Carney.

WIRED OFFICE: Why all the fuss over Google+?

Google has recently launched a new social media platform called Google+ (plus).

RECO Decision: Buyer faces host of problems with basement apartment

The following decision from RECO Discipline and Appeals Hearings has been condensed and all individual and corporate names have been changed.

LEGAL BEAT by Merv Burgard: Shedding light on storage facility’s lakeside location

An unexpected municipal work order required the sellers to move a lakeside storage shed away from the shoreline.

Charity motorcycle ride a success

This year’s Motorcycle Ride for Charity was a great success, with organizers anticipating that funds raised to support the REALTORS CARE Foundation may total more than $50,000 once all pledges are in.

OREA embraces social media

The Ontario Real Estate Association is at the forefront of new technologies by strategically developing a dynamic social media presence.

Let’s make a deal: Offers, counter-offers and the acceptance of offers

July 1, 2011

Success in real estate – as in hockey – is all about playing your best and maximizing your strengths to try to beat your opponents.

Working the farm: Prospecting and farming skills are vital for new salespeople

You’ve finished your real estate courses and you’re eager to get started, but how can you build a client base to grow your business?

Future of green building is focus of conference

The green building market is booming and is expected to reach $173.5 billion (U.S.) by 2015.

MARKET WATCH: Housing market drives economic optimism

Although Canadians are still coping with the recession’s effects, they feel more optimistic about their personal finances and the housing market is playing a key role, a survey in Consumerology Report reveals.

ON THE MARKETS: Buyers bullish on recreational properties

Warmer weather often turns people’s thoughts to getting away from it all, and a recent survey reveals that many Ontarians love their cottages.

RECO Decision: Restaurant listing never posted into system

The following decision from RECO Discipline and Appeals Hearings has been condensed. All individual and corporate names have been changed.

LEGAL BEAT: Do your homework on owner’s equity before listing property

When you meet your sellers, go over their financial position and ask some basic questions and confirm their answers. Here are some suggested questions to ask them before listing.

OREA blog launched

A new and exciting way to shop for tools to help you in your career is now available to students and members of the Ontario Real Estate Association.

College develops online store for students and members

Online exam option.

The OREA Real Estate College has introduced an online exam option for both the admissions test and the examination for the first pre-registration course, Real Estate as a Professional Career.

Buyer Representation Agreements: Make sure buyers understand what they’re signing

June 1, 2011

The most common complaint to the Real Estate Council of Ontario (RECO) is from consumers who say they didn’t understand what they were signing when they entered into a Buyer Representation Agreement.

RECO revises website

A new website design has recently been launched by The Real Estate Council of Ontario (RECO).

MARKET WATCH: Conventional mortgages still popular

Canadians are surprisingly conservative on the mortgage front despite a decade of low interest rates, according to a survey commissioned by ING DIRECT.

Advertising in real estate: Beware of pitfalls and know the rules

Advertising can be a powerful tool to attract potential clients, whether it’s through flyers, newspaper ads, billboards or blogs.

WIRED OFFICE: Secret codes or marketing tool Have you seen any white squares containing black dots and geometric lines lately?

Materializing with increasing frequency in magazines and on flyers, business cards, billboard ads and websites, these boxes with funky designs are known as Quick Response or QR codes.

LEGAL BEAT: Clients can and do make all kinds of claims after a loss

The buyer sued the sellers, the home inspector and her REALTOR® after water infiltration and basement flooding occurred in her Saskatchewan home.

Student handbook available online

A revised online version of Your Career in Real Estate: A Student Handbook has recently been released by the OREA Real Estate College.

Motorcycle ride stops at various boards

Pledge forms are still available for the Motorcycle Ride for Charity organized by the REALTORS Care Foundation.

Campaign College focuses on election

Members of the Ontario Real Estate Association from across the province came to Toronto in April for Campaign College, which took place over two days and gave members the tools and information they need to prepare for this fall’s provincial election.

Multiple choice, multiple opportunities: Helping your clients deal with multiple offers

May 4, 2011

In a seller’s market, multiple offers are common, but they can also happen in a balanced or buyer’s market.

New salespeople advised to hit the ground running for real estate success

Ask any REALTOR® to recall their first day on the job and most will tell you it was overwhelming.

Old woman in the shoe ad promotes REALTORS®

A television commercial featuring a modern day retelling of the Mother Goose fable of The Old Woman Who Lived in a Shoe is the latest addition to CREA’s national ad campaign.

MARKET WATCH: First-time buyers strive to get ahead of higher interest rates

Driven by the potential of higher interest rates in the future, first-time buyers are contributing to a strong upward momentum in residential housing markets across the country, according to a recent RE/MAX report.

ON THE MARKETS: Ontario economy set to grow in 2011

Ontario’s economy has picked up and posted its best performance since 2002, according to the latest Provincial Economic Outlook report by RBC Economics.

RECO Decision: Registrant fined for falsifying documents

Legal beat: license to sell - registration protects public by supervising mortgage brokers.

Mr. Guido and his company worked to assist people with marketing and financing.

OREA News: Volunteerism awards recognize outstanding contributions

The efforts of volunteers were recognized at the 2011 OREA Annual Conference at Toronto’s Westin Harbour Castle Hotel.

Motorcycle Ride for charity takes place in July

Registration and pledge forms are now available for the Motorcycle Ride for Charity organized by the REALTORS Care™ Foundation.

Show me the money: The fate of the deposit if the deal falls through

April 1, 2011

You’ve worked hard to seal the deal and to get the buyer and seller to come to an agreement. But what happens to the deposit if the deal fails to close?

Video on home buying and HST released by OREA and provincial government

A video that explains to prospective buyers the facts about the Harmonized Sales Tax (HST) and the housing market was recently released by the Ontario Real Estate Association (OREA) and the provincial government.

Land and development conference coming up

Find out which market factors and dynamics are affecting land acquisition and development in the Greater Golden Horseshoe (GGH) at the 2011 Land and Development Conference on May 5 at the Metro Toronto Convention Centre.

MARKET WATCH: Improved housing sales predicted

Canadian home sales for 2011 are expected to be better than previously predicted, thanks to improving consumer confidence which will partly offset the anticipated negative impact of interest rate hikes, The Canadian Real Estate Association (CREA) reports.

WIRED OFFICE: Personal branding - What it is and why it’s important

Lately, a new term has crept into business lingo -- “personal branding.” According to Wikipedia, personal branding is “the process whereby people and their careers are marked as brands.

RECO Decision: Registrant fails to disclose financial interest in property

Legal beat: what’s in a name get personal signature on buyer representation agreement.

The buyer and the REALTOR® had maintained a casual friendship and occasional business relationship for 15 years before the events that occurred leading to this action.

The OREA 2011 Annual Conference at Toronto’s Westin Harbour Castle Hotel in March was a great success.

Campaign College focuses on provincial election

OREA staff members are busy finalizing the details for the 2011 OREA Campaign College scheduled to take place April 18 and 19 at the Sutton Place Hotel in downtown Toronto.

Jam with a Past President

Once again this year, the REALTORS Care™ Foundation has organized a Jam with a Past President event. Brian Walker, OREA’S President in 2007, hosts the annual event, which will be held during Campaign College (see item above).

March 1, 2011

The February issue of REALTOR® EDGE contained incorrect information in an article about power of sale.

Fascination with history plays role in appeal of heritage properties

Although Henry Ford famously remarked that “history is bunk,” people with a love of all things historical would disagree with the renowned automaker.

The price is right: Learning to price properties with confidence

Accurately pricing a property and listing it reasonably close to market value so that it’s not overpriced is an important aspect of a REALTOR®’s job.

New real estate mobile app launched by CIBC

CIBC recently introduced the Home Advisor App to give home buyers access to helpful information, tools, and advice right from their iPhone or BlackBerry while they’re out house hunting.

MARKET WATCH: Survey uncovers trends among single home buyers

Although conventional wisdom suggests that most singles would rather live in an urban setting, a survey conducted by Coldwell Banker revealed that the majority of single homeowners (52 per cent) chose suburbia.

ON THE MARKETS: Canadian resale market to have a soft landing in 2011

Fears of a U.S.-style housing crash in Canada were unfounded and the resale market in this country has landed safely, according to a recent report by TD Economics.

RECO Case: Buyer’s experience dampened by water leakage and undisclosed multiple representation

The following decision has been condensed from RECO Complaints, Compliance and Discipline Hearings and Appeals. All names have been changed.

LEGAL BEAT: Fixture or chattel? Arguments focus on status of motel sign

A large commercial sign situated on a piece of property in western Ontario is at the centre of this dispute.

Volunteer now and make a difference

Joining a committee or task force at OREA is a great way to serve your profession while enhancing your leadership skills.

Call for nominations for RECO 2011 election of directors

Members of the Real Estate Council of Ontario who are interested in serving on its board of directors are required to submit their nomination forms no later than 2:00 p.m. on Friday, April 1.

Campaign College advances real estate issues during election

To prepare member boards and associations to advance REALTOR® issues during provincial election years, OREA is hosting a two-day Campaign College.

Power of sale property must sell in “as is” condition

February 1, 2011

First you see that the lawn has not been cut and the weeds are taking over. Then you notice that the newspapers and mail are piling up on the front porch. The windows look dirty, and the house looks forlorn and neglected.

Vision for future of real estate technology unveiled

Giving a competitive edge to REALTORS® is the goal of several new technology innovations being developed by the Canadian Real Estate Association’s MLS® and Technology Council (MTC).

Growth of social media in U.S. real estate shown

Eighty per cent of REALTORS® in the United States use social media, according to the National Association of REALTORS® (NAR) technology survey for 2010.

MARKET WATCH: Strong housing market predicted for early 2011

News of a strengthening economy and low interest rates may result in a stronger-than-expected housing market for early 2011.

WIRED OFFICE: Etiquette on the web: Always be polite

Canadians are enthusiastic users of the internet. Perhaps the long, cold winters push us towards our internet interfaces.

RECO Case: Failure to disclose commission agreement proves costly

The following decision has been condensed from RECO Complaints, Compliance and Discipline Hearings and Appeals. All names of individuals, brokerages and other businesses have been changed.

LEGAL BEAT by Mervin Burgard: Deal not dead if parties agree to another document

The buyer signed an Agreement of Purchase and Sale (APS) for a pre-sale unconstructed condominium unit that she wished to own. The document contained a condition that stated:

OREA Annual Assembly Meeting open to members

New mobile application for hand-held house hunting.

A mobile application of REALTOR.ca for Windows® Phone 7 is now available to help consumers check out houses while they’re on the go, CREA announced.

MARKET WATCH: More balanced 2011 market predicted for homes

The market for resale homes in Canada was firmer for a third straight month in October 2010, suggesting a soft landing for the once red-hot sector and stable market conditions for the next two years, according to industry reports.

Uncertain forecast for commercial markets in 2011

Wishing they had a crystal ball, many commercial real estate experts expressed uncertainty about 2011 market prospects in the North American and global economies at the Annual Global Property Market and Toronto Real Estate Forum.

New year’s sales tips from the experts

The new year often inspires people to make a fresh start, spurring a rush to the self-help section of bookstores everywhere.

ON THE MARKETS: Canadians wary of household debt risks

Canadians are very cognizant of the dangers of excessive debt leverage, according to a special report by Scotia Economics.

RECO Case: Unsuspecting buyers get less than they bargained for

The following decision from RECO Complaints, Compliance and Discipline Appeals has been condensed.

LEGAL BEAT by Mervin Burgard: Disclose the fact that suicide took place

A question was asked about whether a builder was obligated to disclose to a buyer that an intruder broke into a house and committed suicide just before the sale closed.

OREA NEWS: OREA Annual Assembly Meeting open to members

All OREA members are invited to attend the Annual Assembly Meeting on Wednesday, March 2, 2011 at the Westin Harbour Castle Hotel in Toronto.

OREA office applying for LEED status

The Ontario Real Estate Association has applied to the Canada Green Building Council for LEED status for its renovated headquarters in Don Mills.

Looking for volunteer leaders

Two new topics posted to oreapedia.

REALTORS® can check out the two new topics posted to OREApedia recently.

Podcast offers tips for home staging

December 12, 2010

BMO (Bank of Montreal) has added the Happy Homeowner to its First-Time Homebuyers series of podcasts.

MARKET WATCH: Nine-in-ten Ontario boomers plan to downsize

For their next move, Ontario boomers are looking to downsize to smaller homes.

What does the CREA competition consent agreement mean to REALTORS®?

Now that an agreement has been reached between CREA and the Commissioner of Competition does that mean the public can list properties on the MLS® System? Not without a REALTOR® they can’t.

Over half of Ontarians confused about HST and resale homes

A full 56 percent of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home, according to an Ipsos Reid survey commissioned by the Ontario Real Estate Association (OREA).

WIRED OFFICE: iPads and PlayBooks and Slates, oh my!

With the holiday season coming there has been much ado about a new breed of technology currently being referred to as the digital tablet.

REALTOR® trademark is a valuable asset

One of the benefits of being a member of organized real estate is the right to call yourself a REALTOR®.

LEGAL BEAT: Take care when drafting exclusions

The sellers had serious legal disputes with their neighbours Ms. Belzberg and Mr. Knechtel about restrictive covenants. That went to court and the sellers lost.

Looking for leaders

If you’ve ever thought of serving your profession, why not sign up for an OREA committee?

Public Career Night a success

The first-ever educational open house aimed at promoting real estate as a career was a great success for the OREA Real Estate College.

Leadership courses presented at NAR conference in U.S.

At a recent meeting of the National Association of Realtors (NAR) in New Orleans, two volunteer leadership training courses developed by the OREA Centre for Leadership Development were presented to participants at the U.S. meeting on request from the Americans.

TD targets young Canadians with online budgeting tools

November 12, 2010

In a recent TD Poll, which compared investment attitudes of Gen X (born between 1965 and 1976) and Gen Y (born after 1980), Gen Xers said saving more each month, paying off debt, and opening an RSP are the top financial decisions they would make differently if they were 25 again.

MARKET WATCH: Canadian Housing activity hit $307 billion

The value of housing activity related to new home construction, as well as the rental, sale and renovation of existing homes in Canada reached $307 billion in 2009, or more than one-fifth of Canada’s total gross domestic product, according to Canada Mortgage and Housing Corporation’s (CMHC) latest Canadian Housing Observer report.

Many OREA Standard Forms revised for 2011

A new Seller Commission Agreement form will help protect the commission of co-operating brokers in situations where they are dealing directly with the seller. This new form was created for 2011 and a large number of existing forms have been revised.

New financial tools available to help REALTORS® help clients

REALTORS® have the opportunity to help first time home buyers make their dream of home ownership come true.

ON THE MARKETS: Ontario's economic confidence and housing affordability slide

Ontarian's economic confidence slipped 18 points (from 97 to 79 points) over the previous quarter, the highest of all regions across Canada -- according to the latest RBC Canadian Consumer Outlook. Just 57 per cent of Ontarians believe the state of the economy is good, down nine points from June and compared to 60 per cent nationally.

RECO Case – The price is right

The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety on the RECO website at www.reco.on.ca.

LEGAL BEAT: Consider tax allocation for tenants

This case concerns the interpretation of a commercial lease. It asks how the contribution the tenant is to make in respect of property taxes is to be calculated.

Stay current and connected

The OREA Real Estate College has launched two new initiatives to help you stay up-to-date with College news and events.

Calling all candidates!

Interested in running for a position on OREA’s 2011 Board of Directors?

Mandatory home energy audits stopped

October 10, 2010

The Ministry of Energy has decided not to proceed with plans to introduce mandatory home energy audits on real estate transactions.

MARKET WATCH: Survey shows consumers confused about HST

A recent survey by Royal LePage shows that consumers in Ontario and British Columbia have misconceptions about how the Harmonized Sales Tax (HST) affects real estate transactions.

Bubble or no bubble? Two studies show conflicting opinions

Is the Canadian real estate market in a bubble about to burst or not?

REALTORS® have a duty to disclose defects

Basement flooding, cracks in the foundation, mould – what do sellers need to disclose and what do REALTORS® need to find out?

WIRED OFFICE Which smart phone is best for you?

Gone are the days of sitting around in your office waiting for an important call or for that essential email to arrive.

Learn how to stay safe on the job

Real estate is definitely a people business and, as a REALTOR® you meet lots of people on the job.

LEGAL BEAT: Material defect costs commission on 1.2 million dollar deal

The buyer sees a house in Carlisle, Ontario that meets his needs.

Shop for courses 24/7

Enrolling in OREA Real Estate College courses is a whole lot easier thanks to the “web self-serve” functionality on the www.orea.com website.

OREA Government Relations department wins CSAE Award

For its successful campaign against the Ontario government’s proposed mandatory energy audits, OREA was awarded the CSAE’s 2010 Associations Make a Better Canada Award in the Public Affairs/Government Relations category.

OREA celebrates excellence in customer service

At the Ontario Real Estate Association (OREA) we are proud to be participating in National Customer Service Week (October 4 - 8, 2010), and wanted to take this opportunity to thank you for being a "customer" of OREA. We value and appreciate your business.

Commercial real estate sustainable?

September 10, 2010

A new report finds the Canadian commercial real estate industry is playing catch-up with respect to environmental, social and governance (ESG) issues when compared to international peers.

MARKET WATCH: Homeowners are more financially fit

Homeowners are in the best shape when it comes to financial fitness in Canada. Sixty five per cent of homeowners pay off their credit card balances each month, vs. 48 per cent of non-homeowners.

Clauses should clarify terms of agreement between buyer and seller

Get it in writing…and get it right. A good clause in an Agreement of Purchase and Sale (APS) exists to make sure that the requests of both parties are accurately reflected.

“My REALTOR® had all the answers”

A new television commercial promoting the value of REALTORS® began airing across Canada at the end of August.

ON THE MARKETS: Lending rate hike won’t greatly impact real estate market

When the Bank of Canada (B of C) raised its overnight lending rate by 25 basis points in July, it sent fear into the hearts of many would be home buyers.

RECO Decision: Stolen identity, misrepresentation punished

The following RECO Discipline decision has been condensed and can be viewed in its entirety on the RECO website at www.reco.on.ca.

LEGAL BEAT: How to save your client’s money

I act for a builder buying several lots from a developer on which individual homes will be built.

Real Estate as a Professional Career is now offered in class

The OREA Real Estate College now offers the classroom method of course delivery for Real Estate as a Professional Career, the introductory course to The Salesperson Registration Education Program.

Defects and the Importance of Disclosure

Knowing the types of defects to look for and what information needs to be disclosed to your clients is part of the REALTOR®’s duty.

Be the REALTOR® every client wants

A new one-credit, online, CE course, Be the REALTOR® Every Client Wants, is now available!

RECO elects directors

August 10, 2010

Following the Real Estate Council of Ontario’s Annual Meeting in June, the Board of Directors elected George Lavallee as Chair and Keith Tarswell as Vice-Chair for 2010 – 2011.

MARKET WATCH: Housing activity will stabilize

Housing starts rebounded in the second half of 2009 and early 2010 and will stabilize over the next two years, according to Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook Canada Edition.

Expand your knowledge of clauses and conditions

Real estate transactions are loaded with issues that require carefully worded clauses and conditions to keep the deal on track. OREA Standard Clauses are used by members on a daily basis.

Dealing with the complaints process

What if a complaint is filed against you with the Registrar? What can you expect? How long is the process going to take?

WIRED OFFICE: Privacy and Social Media

Conduct an internet search on yourself by entering your name in a search engine (e.g., Google, Bing, etc.).

RECO Decision: REALTOR® fails to include all owners in listing agreement

Legal beat: power of sale.

The lender started Ontario Power of Sale proceedings and sued the mortgagor-owner who defended on several grounds. None were found in the owner's favour.

OREA exam replaces CAAT for admissions

Applicants to OREA’s Salesperson Registration Education Program can now write the OREA Real Estate College’s own real-estate focused Admissions Test to comply with the Private Career Colleges Act, 2005 mandated ‘Grade 12 or equivalent’ admissions requirement to our program.

Perceived viability of real estate industry shifts: survey

More brokers today feel that the viability of the real estate industry is in jeopardy, according to the 2010 Broker Viability study.

Homeowner emergency response plan starts

June 16, 2010

Residents and businesses in disaster-stricken communities across Ontario will be able to recover and rebuild more quickly, thanks to a plan launched in May by the Ontario Association of Fire Chiefs and The Home Depot Canada.

MARKET WATCH: First time buyers willing to pay more for location

A Bank of Montreal (BMO) survey released in April says among current homeowners and future first-time homeowners, location is the main reason they would consider offering more than the asking price for a home.

Applying the HST: REALTOR®tips

The new harmonized sales tax (HST) takes effect July 1st. Ontario REALTORS® need to prepare for the changes now.

RECO can no longer obtain criminal record checks

To become registered or renew registration with the Real Estate Council of Ontario (RECO), applicants not only have to have the appropriate real estate education, they must also be able to prove financial fitness and disclose any criminal charges against them.

ON THE MARKETS: Canadian economy’s growth will slow

Almost halfway through the year and the recovery in the Canadian economy is strong, but to what extent is this recovery the real thing and to what extent is it sustainable at the current rate?

Real estate brokerages need a plan to ensure a safe and healthy workplace to protect workers

Bill 168, Ontario’s new workplace violence and harassment legislation, will require every real estate brokerage to take specific steps to comply with the new law which comes into effect on June 15, 2010.

LEGAL BEAT: Standard form saves commission

The brokerage sued their buyer client for $21,774.50 under an Ontario Buyer Representation Agreement (BRA).

Timeline reminders

The OREA Real Estate College has started two campaigns to remind students of the time restrictions for completion of the Salesperson Registration Education Program.

REALTORS® ride to help provide shelter

Show your support for the REALTORS Care Foundation’s fifth annual REALTOR® ride for charity, a motorcycle ride in support of shelter-related charities.

No new applicants for ecoENERGY program

May 5, 2010

Effective March 31, 2010, the ecoENERGY Retrofit program that provided grants of up to $5,000 to Canadians who make their homes more energy efficient, stopped accepting new bookings for pre-retrofit evaluations.

MARKET WATCH: Mortgage rates on the rise

Canada’s big five banks have begun raising rates on certain fixed mortgages, including the benchmark five-year mortgage.

OREApedia helps members find information quickly

Quick and easy access to the vast amount of information on the OREA website is now possible through a feature called OREApedia.

New enrolment requirements for OREA Real Estate College

OREA was recently registered as a Private Career College under the Private Career Colleges Act, 2005 (PCCA).

WIRED OFFICE: Getting the most from your Search

Searching on the internet has become an integral part of our lives. There is an infinite amount of information sitting just a few keystrokes/mouse clicks/touch and presses away.

CREA clarifies MLS® Rules in response to competition concerns

CREA has changed its MLS® rules to clarify that the nature of services to be provided to the seller or buyer is a matter of agreement between the REALTOR® and his or her client or customer.

LEGAL BEAT: Can you live with the rules?

The condo unit owners installed two satellite dishes on the patio of their unit which the condominium corporation said were contrary to the Declaration, Bylaws and Rules.

OREA Real Estate College guarantees course dates

In an effort to assist students and registrants in planning their course schedules for 2010 and meet their timelines to complete required courses, the OREA Real Estate College introduced a schedule of ‘Guaranteed Course Dates’.

Ontario budget: little help for real estate

The Ontario 2010 budget was highlighted by a large provincial deficit and little in the way of help for the provincial real estate industry.

Conference focuses on land, development

April 5, 2010

The Real Estate Forum’s 2010 Land & Development Conference will offer insights on trends and strategies for land acquisitions and development in the Greater Golden Horseshoe as well as speculate on where land values are heading for 2010 and beyond.

MARKET WATCH: Housing starts trend upward for 2010

Housing starts rebounded in the second half of 2009 and will strengthen in 2010, according to Canada Mortgage and Housing Corporation's (CMHC) first quarter Housing Market Outlook, Canada Edition.

Learn how to spot structural deficiencies in homes

What should be one of the happiest moments in a person's life can sometimes be spoiled by the discovery of structural defects that were unknown or undisclosed at the time of purchase.

Social media’s a natural fit for REALTORS®

“REALTORS®are people people so the opportunities available to you through social media are tremendous.”

Canadians feel a home is key to retirement: poll

Home buying momentum in Canada continues to gain steam.

RECO Decision: Disclose terms when offer is presented

The following RECO Discipline Hearing decision has been condensed and can be viewed in its entirety on the RECO website at www.reco.on.ca.

LEGAL BEAT: Judge turns up the heat

When the buyer took possession of his Winnipeg house, he found that the space heaters had been removed, and the pipes were frozen.

Nominations swell for Volunteerism Awards

Karen Shartun of the Kitchener-Waterloo Real Estate Board was awarded the OREA Volunteerism Award for an Individual, presented at the 2010 OREA Annual Conference.

ExamTutor© 2 CD-ROM is now available to students taking the Articling Segment and Real Estate Broker Courses, including Real Property Law, Real Estate Investment Analysis, Principles of Appraisal, Principles of Mortgage Financing, Principles of Property Management and the Real Estate Broker Course.

REALTOR® ride helps provide shelter

The Brampton Real Estate Board is once again hosting the REALTORS Care Foundation annual charity motorcycle ride, from July 7th to 10th, 2010.

OREA podcasts available on OREA website

Interviews with speakers from the recent leadership conference can now be heard on the OREA website.

REALpac releases office green lease guide

March 8, 2010

The Real Property Association of Canada (REALpac) has developed a Green Lease Guide for Commercial Office Tenants.

MARKET WATCH: Consumer confidence hits two year high

The Index of Consumer Confidence rose 13.8 percentage points in January to a 23-month high, according to the Conference Board of Canada’s latest Index of Consumer Confidence.

Make the most of green upgrades

As energy conservation becomes more of a concern for both government and consumers, REALTORS® can better serve their clients by knowing more about heating system upgrades and government grant programs for them.

REALTORS® welcome EI benefits for self-employed Canadians

Self-employed REALTORS® can now participate in the Employment Insurance (EI) program, CREA, the Minister of Human Resources and Skills Development and the Minister of State for Small Business and Tourism announced on February 1.

Mortgage brokers and agents licences up for renewal

More than 1,300 real estate brokers and sales representatives met the requirements to be licensed as mortgage brokerages, brokers or agents under the new Mortgage Brokerages, Lenders and Administrators Act, 2006 (the Act).

WIRED OFFICE: Should you upgrade to Windows 7?

By now, you’ve probably heard some mention of Microsoft’s new operating system known as Windows 7. Released in late October 2009, most new PCs now come with Windows 7 pre-loaded.

Get to know MTO policies for real estate signage

REALTORS® working with properties that enter onto public highways in Ontario need to be aware of guidelines for entrance permits as well as real estate signage.

LEGAL BEAT: Conduct can create agency relationship

The buyer used REALTOR® “S” to look for a condominium unit but refused to sign a Buyer Representation Agreement (BRA).

Errors and omissions new course starts

Risk Management Strategies for Errors and Omissions Insurance is a new six-credit course designed to help real estate professionals understand terms used in errors and omissions insurance policies.

OREA’s 2010 Annual Conference was made possible by the donation of our generous sponsors.

New online study guide available

Has studying got you stressed? The new passit online study guides are designed to help ease the stress of studying for real estate pre-licensing courses in Ontario.

Teachers buy into mortgage insurance business

February 4, 2010

A private investor group, in which Ontario Teachers’ Pension Plan is the lead sponsor, is set to buy the Canadian mortgage insurance business of American International Group Inc (AIG).

MARKET WATCH: Strong market gains expected to continue through first half of 2010

Canada's residential real estate market is forecast to remain unusually strong through the first half of 2010, according to the Royal LePage Market Survey Forecast and House Price Survey.

“Time is of the essence” when notices given and received

One of the most significant changes made to the OREA 2010 Standard Forms was the revision of the Notices clause in Form 100, the Agreement of Purchase and Sale.

First-time buyers may want rental income but beware restrictions

Many homebuyers consider purchasing a property with an existing or potential for a second suite.

ON THE MARKETS: Economists predict higher interest rates in fall

According to many of Canada’s top economists, higher interest rates – and debt servicing costs – may be just around the corner.

Identifying fraud: use caution, common sense

Mortgage fraud continues to be a major concern for the real estate industry.

LEGAL BEAT: Open use of driveway for 20 years supports easement

Welton owned two lots and sold one. He then built a driveway that both lots could use. The driveway is located on the lot that he sold. He has continued to service and maintain the driveway since 1963. A dispute arose between Welton and the new owners of that lot who had bought it in 1985.

Make a difference; join a committee

Realtor® concerns not reflected in brownfield regulation amendments.

None of the province’s amendments to Ontario’s record of site condition regulation 153/04, released in December, address concerns raised by OREA during the consultation process.

AERO improves offer to REALTORS®

AERO Insurance Brokers has just negotiated a 33 per cent increase on the discount offered to OREA members. As a benefit of OREA membership, you have access to great group rates with two of Canada’s leading insurance companies.

OHBA fears black market due to HST

January 5, 2010

The Ontario Home Builders' Association (OHBA) is asking the provincial and federal governments to implement a permanent renovation tax credit or rebate for homeowners to mitigate the effect of the HST.

MARKET WATCH: Bank of Canada rates hold in 2010: poll

The Bank of Canada will most likely keep its promise to hold the key interest rate at near-zero levels through the second quarter of 2010 according to a recent Reuters poll of Canada's primary securities dealers.

Nurture those online leads

Most REALTORS® say referrals and repeat business are their main source of business leads. However, according to the National Association of REALTORS® (NAR) Technology Survey, 53 per cent of respondents feel the Internet is very important to generating leads.

Real estate reality show pulled

CREA successfully won its recent battle to have “Realtor vs. Realtor”, a Canadian real estate reality TV series, taken off the air.

What is a Heritage Property?

In past EDGE articles we’ve learned how to price heritage properties and that a number of Ontario municipalities have initiated programs to provide tax relief, grants and loans to heritage property owners. But how do you identify one?

WIRED OFFICE: GeoWarehouse® introduces online store

Teranet has launched the GeoWarehouse Store to assist REALTORS® in helping their clients make more informed real estate decisions.

OREA main office now a green building

OREA held a grand opening and ribbon cutting ceremony in December to celebrate the completion of the green building renovations to the Duncan Mills office.

LEGAL BEAT: PCDS/SPIS not a warranty

The buyers bought a house in Saskatchewan and received the seller's Property Condition Disclosure Statement (PCDS) that indicated there were no unrepaired roof leaks or moisture or water problems in the house, but also stated that there were previous backyard drainage problems which had been repaired to the best of his knowledge.

OREA mourns Lee Hoppe

The Ontario Real Estate Associations is sad to report that 1975 OREA President Earl Leroy (Lee) Hoppe passed away on Sunday, November 22, 2009 in Kitchener. He was 78.

REALTOR® efforts could not stop HST

Despite vigorous opposition by OREA and other groups, the Government of Ontario and the Government of Canada have both passed legislation that will implement the Harmonized Sales Tax (HST).

OREA Annual Meeting is open to members

All OREA members are invited to attend the Annual Meeting of the Assembly on Wednesday, March 3, 2010 at the Westin Harbour Castle Hotel in Toronto

Self-employed may soon qualify for EI benefits

December 14, 2009

The Conservative government has introduced a bill to extend Employment Insurance (EI) special benefits, such as maternity and compassionate care leave, to the self-employed for the first time.

Market Watch: Canadian commercial markets better off

Canadian commercial real estate executives feel the real estate markets have moved up meaningfully over the past quarter.

Same agency rules apply for commercial, residential REALTORS®

It used to be the three most important rules in real estate were Location, Location, Location.

REALTORS® and HST on collision course

Although organized real estate is still working to derail it, the HST train seems to be headed straight for us and unlikely to be knocked off track.

ON THE MARKETS: New economy means new ways of doing business for REALTORS®

Four out of ten REALTORS® believe the real estate industry is starting to recover from the economic crisis.

Homebuyers care about sustainability

Energy efficiency makes sense to most homebuyers.

LEGAL BEAT: Use non-competition clause in exceptional circumstances

The insurance brokerage employees had written contracts which contained a restrictive covenant which stipulated that for two years after the termination of employment, they were not to "conduct business with any clients or customers of H. L. Staebler Company Limited that were handled or serviced by you at the date of your termination".

Foundation grants swell in 2009

The realtors care foundation granted nearly $300,000 in 2009..

Feedback from the Broker Viability Task Force research showcase presentations has been very positive.

First time buyers learn mortgage basics

November 13, 2009

Building Blocks, a special series launched last month on the Globe Investor website is geared towards educating young Canadian families about various personal finance topics.

World housing markets recovering

Global real estate markets are showing tentative but growing signs of stabilization, according to the recent Global Real Estate Trends report released by Scotia Economics.

Communication issues spur changes to OREA Standard Forms

Well-written standard forms and clauses help to make the trade in real estate an open and transparent process.

Heritage property owners get tax relief

A number of Ontario municipalities have initiated programs to provide tax relief, grants and loans to heritage property owners.

WIRED OFFICE: Safe disposal of consumer electronics

As consumers, we often want the latest and greatest techie toys with the newest bells and whistles.

RECO decision: Member fails to verify chattels

Legal beat: disclose market value comparables.

The REALTOR® knew that a development property might be for sale and discussed it with the sellers.

Interested in running for a position on OREA’s 2010 Board of Directors?

Quality of Life campaign launched at 2009 OREA Political Affairs Conference

In response to the call from member real estate boards and associations, OREA has developed materials for boards, associations and REALTORS® to use to implement quality of life principles and practices in their day to day business.

Distracted driving law on the horizon

October 13, 2009

Bill 118, banning drivers from using handheld devices while operating a vehicle on the road, will become law on October 26, 2009.

Outlook improves for jobless Canadians

More Canadian employers will be hiring in the October to December period of 2009, according to the latest results of the Manpower Employment Outlook Survey.

Legal Forum hits a milestone!

Got a burning real estate question? Chances are you will find the answer to it on OREA’s online Legal Forum.

REALTOR® ad campaign builds on success

This fall, OREA will be continuing the very successful residential campaign that impresses upon consumers the importance of using a REALTOR®.

Economists optimistic recession is over

The outlook is brightening for the economy in general and the housing industry, specifically, according to some recent reports.

RECO decision: Access to lockbox must be authorized

The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety on the RECO Web site at www.reco.on.ca.

LEGAL BEAT: Warranty merged on completion

The sellers sold commercial condominium premises and a business used as a party hall primarily for Hindu wedding receptions.

Take home tutor now available

To better prepare students for Registration Education course examinations, OREA Real Estate College has launched ExamTutor© CD ROMs.

OREA stands up for stronger property rights

Speaking in favour of stronger, better defined property rights, OREA made a presentation in August to the Standing Committee on General Government regarding Bill 173, the Mining Amendment Act.

Conferences report on housing markets

September 8, 2009

CMHC will host five Housing Outlook Conferences in Ontario from November 3 to November 19 tailored to each specific local market.

Ontario home starts down in July

The Ontario preliminary Seasonally Adjusted Annual Rate (SAAR) of home starts across all areas declined to an estimated 39,100 units in July, down from 45,800 units in June, reports the CMHC.

RECO Update course gets an update

REALTORS® need to stay abreast of ever changing issues, laws and regulatory activities in the real estate industry.

Updated pamphlet available on Legal Forum

Receiving a letter from the Registrar indicating a complaint has been filed against you can be very intimidating.

WIRED OFFICE: If you build it, will they come?

You’ve created a great Web site full of information that your clients and potential clients will find useful and interesting.

Don’t let a wet basement douse your deal

With the heavy rainfall in Southern Ontario throughout the spring and summer of 2009, moisture has to be a concern for homeowners and buyers alike.

LEGAL BEAT: Misreading a clause cost buyer $90,000

A property was being developed as a golf course, ran into financial problems and went into receivership.

Get CE credit for Leadership courses

As of this past August, Becoming a Leader, Leadership 200 and Enhancing Leadership Skills, Leadership 300 are now RECO continuing education credited courses.

Revised mentoring kit now available

Salespeople need to know about the properties they are trying to sell and they need to know how to close a real estate transaction.

Make music to make a difference

Back by popular demand, the REALTORS Care Foundation is pleased to announce Jamming with a Past President – Brian Walker and his band – at Stop 33 in the Sutton Place Hotel on Tuesday October 27th, 2009 during the OREA Political Affairs Conference (PAC).

RECO Election results

July 8, 2009

Following the Real Estate Council of Ontario’s Annual Meeting in June, the Board elected Glenda Brindle to serve as Chair and George Lavallee to serve as Vice-Chair.

Market Watch: Study shows there's no place like home

According to Genworth Financial Canada's First-Time Homebuyer's Monitor released in June, 84 per cent of those surveyed said that owning a home goes beyond its financial value and feel that homeownership pays off in more ways than one. First-time homebuyers closely associate financial security and emotional well being with homeownership.

Green homes LEED the way

The trend towards “green real estate” continues to accelerate as homebuyers, sellers and REALTORS® see the benefits of a more environmentally friendly living space.

Everything you need to know about brownfield remediation is on a new Web site

Many of Ontario’s commercial REALTORS® recognize brownfield redevelopment offer business opportunities.

OREA course teaches environmental awareness for real estate

Environmental legislation is extensive and varied. It covers all aspects of the environment, from drinking water protocols to snow removal.

Canadian dollar to again outpace American, economist say

The economy is beginning to respond to stimulus by the Bank of Canada, but Canadians can expect to see a very different economy when the smoke clears.

New exam format gives members and students more feedback

Members in the Course 3, articling or broker courses will have noticed a change in OREA exam format. Members and other students who enroll in a registration education course having a start date on or after April 1, 2009 are writing examinations using an all multiple choice testing format.

Ontario Realty Corp requests proposals

Two opportunities for brokerage services are available from Ontario Realty Corp (ORC).

LEGALBEAT: Be aware of your fiduciary duties

The buyer was led to believe that her unit would have granite countertops in the kitchen and a crawl space with a forced air heating system. As it turned out, it did not.

OREA podcasts now available

Listen to The EDGE, OREA’s new podcast series.

Government implements OREA recommendation on retrofit rebates

The Government of Ontario has adopted an OREA 2009 pre-budget recommendation, increasing the amount of funding available to Ontario homeowners for home energy retrofit rebates under the Home Energy Savings Program.

Keep track of the issues

OREA Government Relations recently updated all our issue summaries which became our Spring Legislative and Regulatory update.

Ontario home starts down in April

June 8, 2009

Ontario home starts moved lower in April. Ontario preliminary Seasonally Adjusted Annual Rate (SAAR) of home starts across all areas declined to 36,300 unit starts, down from 62,600 starts in March.

Market Watch: HST squeezes middle-class homebuyers

A report, titled "Big Hit on GTA Middle-Class Homebuyers with the Ontario Budget's HST Proposals," reveals that middle-class families get hit the hardest by the $800 million tax increase on new homebuyers across the province under the Provincial government's planned harmonized sales tax (HST).

Do your homework ahead of time to protect the deal

Over-leveraged properties can be difficult to sell. If the market won’t support the home’s asking price, it puts the whole transaction in jeopardy – including commission.

Power of sale: What you should know

A power of sale is a forced sale of a property by a mortgagee due to a default of one or more of the mortgagor’s obligations under the mortgage.

WIRED OFFICE: Keep your website simple

Anybody and everybody can have a website. Register a domain, follow a template, and in minutes you can have a website. Having a “good” website takes considerably more thought and effort.

RECO decision: Overly inflated price leads to penalty

Legalbeat: fax cover sheet muddies commission.

The seller listed the property with Re/Max for a year but it did not sell. He then signed a co-listing with LePage and Re/Max for 90 days although the actual listing was in the name of LePage.

Home energy audit bill amended

Concerted effort from OREA and REALTORS® to get the Ontario government to drop the idea of mandatory home energy audits when a home is sold has met with success. Ontario Bill 150, proposing amendments to the Green Energy Act, has been amended to allow buyers to waive the mandatory home energy audit requirement.

Broker viability study findings released

Southern and Eastern Board members (brokers and broker –managers only) will get a chance to hear the results of the Broker Viability Task Force research in June.

Become a “Green Agent”

May 5, 2009

The National Association of Green Agents and Brokers (NAGAB) offers a Greenrealestate™ program leading to the Accredited Green Agent™ and Accredited Green Broker™ (AGA™ & AGB™) designations.

Ontario home starts increase in March

Ontario home starts bucked a three month downward trend in March; preliminary Seasonally Adjusted Annual Rate (SAAR) of urban home starts rose to 60,900 unit starts, up from 45,100 starts in February, according to CMHC.

Electronic registration means easier access, but more responsibility

Technology has dramatically changed the way that real estate transactions are processed and completed in Ontario.

Opposition to sales tax harmonization is strong

The McGuinty governments plan to harmonize the GST and PST is hitting a wall of opposition built by REALTORS®.

Canadians retrench to weather economic crisis

Concerns over the cost of living have led to a bunker mentality among Canadian consumers according to a recent Pollara Strategic Insights survey.

RECO decision: Get buyers consent for advertising

Legalbeat: calculating ltt on a vacant lot.

Do you know how land transfer tax is calculated on the purchase of a vacant lot which is subject to a construction contract?

Registration courses feature e-Books

Students who enroll in courses in the OREA Real Estate College Path to Success real estate program will have access to an electronic workbook, or e-Book. These environmentally friendly e-Books provide students with interactive versions of the course accessible directly from their personal My Portfolio account. Students will also be able to access a PDF of the course providing them with the ability to download to their computers and/or print course material.

REALTORS® ride for shelter related charities

Show your support for the REALTORS Care Foundation’s fourth annual REALTOR® ride for charity, a motorcycle ride in support of shelter-related charities.

Develop skills while having fun

Visit the OREA Cyber Café during REALTOR® QUEST 2009 on May 6th and 7th at the Toronto Congress Centre and enter the draw to win a free iPod Touch!

New homes can be LEED-certified

April 5, 2009

The Canada Green Building Council launched a new green home rating system in March, which it says will provide health and cost benefit and preserves resale value.

Housing activity to slow, BMO says

The Canadian economy is expected to contract about two per cent in 2009, marking the nation's first recession in 17 years, according to the BMO Financial Group.

Tarion amends registration rules for new home “flip”

REALTORS® who deal in new home and condominium sales take heed: there are new provisions for registering vendors with Tarion Warranty Corporation.

Health Canada issues advisory on foam insulation

Urea formaldehyde foam insulation (UFFI) has been sold illegally in Canada. In a consumer advisory, Health Canada says RetroFoam of Canada Incorporated imported and illegally sold RetroFoam insulation.

WIRED OFFICE: What to look for in a digital camera

Digital cameras are still one of the top tools used regularly by REALTORS®. According to the National Association or REALTORS® NAR’s latest member profile, 96 per cent of REALTORS® use a digital camera in their business.

Dealing with difficult to insure properties

The ability to obtain property insurance is a critical component of any real estate transaction.

LEGAL BEAT: Buyer has to keep on trucking

The buyer's agent contacts a seller and asks for a list of permitted uses of the unlisted land zoned "highway commercial." He is given a long list of permitted uses.

Skills training wins board honours

In recognition of its success recruiting and training its volunteers, the Toronto Real Estate Board (TREB) has won the OREA Volunteer Award, presented at the 2009 OREA Annual Conference.

Exam changes take effect April 1, 2009

In conjunction with the new Path to Success in Real Estate program, examination procedures will also be changing for courses beginning after April 1, 2009.

INSIDE EDGE absorbed into REALTOR® EDGE

March 12, 2009

Four times a year, we publish the INSIDE EDGE, with news more related to the work that OREA is doing.

Sales and prices drop in Q4

During the fourth quarter of 2008, Canada's real estate market weakened in both unit sales and house prices, according to a House Price Survey released by Royal LePage Real Estate Services.

Brokerages must have broker of record in place

Under REBBA 2002, each brokerage must have a designated broker of record.

Updated GST guide available on REALTOR Link®

Everything you need to know about the Goods and Services Tax (GST) and how it applies to REALTORS® is contained in the recently updated REALTORS® guide to GST/HST/QST.

ON THE MARKETS: Budget recognizes economic importance of housing to stimulate the economy

The Federal Budget 2009 introduced several incentives to get Canadians spending by buying a first time home, or renovating the one they are already in.

PRESIDENT’S NOTE: Ad campaign boosts REALTOR® image

To survive as REALTORS® we have to show potential customers who have not used a REALTOR® our worth.

In Your Corner: Refreshed ad campaign focuses in on REALTOR® value

Changing market conditions and new market research have prompted changes to the National Ad Campaign.

How does your brokerage compare?

The answer to a question mulled over in the abstract just a couple of years ago has now become quite relevant: How can a brokerage struggling in good times be viable when the market turns?

Thank you from the Foundation

REALTORS Care Foundation thanks our 42 real estate boards and our Ontario REALTOR® members for their continued support in 2008.

OREA continues the battle against Land Transfer Taxes.

Tips to pricing a heritage property

In today’s real estate market brokers and salespeople are often asked to suggest a value or asking price for heritage properties.

LEGALBEAT: “Shall not survive and merge” clause survives

The buyer and seller were represented by the same brokerage. T, an owner of the brokerage, was a dual agent.

Conference sponsors contribute to success

OREA’s 2009 Annual Conference was made possible by the donation of our generous sponsors.

Single sign-on gains popularity with members

Almost 15,000 members have discovered the advantages of single sign-on access on the OREA website.

RECO 2009 council seeks nominations

February 6, 2009

Members of the Real Estate Council of Ontario who are interested in serving as directors of the Council are required to submit their nomination form by no later than 2:00 p.m. on Wednesday, April 1, 2009.

Correction likely for market in 2009

Nationally, average house prices are forecast to dip by 3.0 per cent from last year to $295,000, while transactions are projected to fall to 416,000 (-3.5 %) unit sales in 2009, according to the Royal LePage 2009 Market Survey Forecast released in January.

Your knowledge of CMHC insurance products may help close the deal

The current economic situation has many potential homebuyers worried and confused about their prospects for buying a home. For many buyers – especially first time buyers – mortgage insurance is an option that may help them buy their own home sooner.

First impressions more important in a slower market

In a hot real estate market, even homes that don’t give the greatest first impression will still sell. However, as the market cools off, the listings that show well will be the ones that sell faster and for a better price.

WIRED OFFICE: Communicate by tapping, “Swyping” or video messaging

Sending a text message has become a very popular way to communicate quickly and conveniently.

Keep your wood-burning stove in good condition

On bitter cold winter days, a wood-burning stove or fireplace can add warmth and comfort to any home. For many of us, it’s part of our childhood memories.

LEGAL BEAT: You can’t park on the right of way

Fife lives at # 205 and has used a mutual driveway for more than 20 years. The right of way as registered is 76 feet long and 7 feet wide so that the two neighbours could access the backyard parking areas as long as no additions were built onto the back of the houses.

Forge the path to success in real estate

Effective April 1, 2009, the Path to Success in Real Estate for individuals aspiring to become real estate professionals in Ontario will be changing.

All OREA members are invited to attend the Annual Meeting of the Assembly on Wednesday, February 25, 2009 at the Sheraton Centre in Toronto, starting at 10:00 a.m.

Family business also LTT exempt

January 1, 2009

The Government of Ontario land transfer tax exemptions also include transfer of land to a family business corporation.

Fewer new homes built in November

Construction of new homes dropped to 172,000 units in November, down from 211,800 units in October, according to Canada Mortgage and Housing Corporation (CMHC).

Forum offers leasing lessons in a slow economy

The slowing economy has commercial real estate professionals anticipating various scenarios. What do you need to do to look out for your client? Can a tenant restructure his business without paying a penalty? Are landlords prepared to deal with a potential increase in tenant defaults and restructuring requests? What steps can be taken to anticipate default and minimise risk?

The REALTOR® EDGE gets a new look

Welcome to the new look of the REALTOR(r) EDGE. This year as the whole organization looked to refresh OREA's look, we took the opportunity to talk to members to see if there were any changes that they would like to see.

Sub-prime mortgages not responsible for world recession

The world economy is going down the drain because of some repossessed, boarded up, unsellable homes in Cleveland.

RECO Decision: Disclose nature of interest

Seller A and Seller B listed a property located at 1-AB Street for sale with Brokerage A. The listing salesperson was Seller Representative A. The sellers reduced the asking price from $349,995 to $337,995. Two days after the price reduction, an offer was received and presented by Seller Representative A under dual agency.

RECO Real Estate Update is going green

In an effort to reduce waste and help the environment, all Real Estate Update course materials will now be available in either an e-book format or a PDF version for download as of February 1, 2009.

LEGAL BEAT: Check ownership thoroughly

The buyer signed an offer to buy a house in her own name but when the bank needed someone else on title, her mother was added to the Deed. Three years later she decided to sell the house and listed it with the same REALTOR® that helped in her purchase.

OREA Annual Meeting forum for trade issues

All OREA members are invited to attend the Annual Meeting of the Assembly on Wednesday February 25, 2009 at the Sheraton Centre in Toronto, starting at 10:00 A.M.

OREA, TREB work on Teranet deal

Representatives from the Toronto Real Estate Board and OREA met in November with Teranet to discuss providing member boards with low cost access to Teranet’s Geowarehouse service.

New forms available

The 2009 version of Form 220, SPIS, is now available. Unlike the other forms, these no carbon required (NCR) forms are available in packages of 50 at a cost of $20 per package and have a 2009 copyright date. Other forms will continue to be sold in packages of 25. Any forms that did not need to be updated will continue to have the 2008 date.

Ontario expands LTT exemptions

December 8, 2008

The Government of Ontario is expanding exemptions under the land transfer tax to include transfers of farmland from a family farm corporation to one or more family members.

Housing starts down in October says CMHC

The seasonally adjusted annual rate of housing starts was 211,800 units in October, down from 218,600 units in September, according to Canada Mortgage and Housing Corporation (CMHC).

Credit crunch squeezes mortgage seekers

While the majority of Canadian financial gurus continue to maintain that Canada will not experience the same economic meltdown as the United States, the global credit crisis is most certainly having an impact here. Just ask anyone looking to find mortgage financing. It seems the days of easy credit are over as financial institutions tighten up on lending policies.

New and revised standard forms address FINTRAC, Tarion changes

Identifying parties to a transaction, reporting suspicious transactions and keeping good records took on added meaning this year with the stricter FINTRAC requirements.

Searches and mapping modified on REALTOR.ca

Navigating the REALTOR.ca Web site should now be easier thanks to changes recently implemented by CREA.

Why it’s important to protect trademarks

Being a member of organized real estate has many benefits including the right to call yourself a REALTOR®.

CREA issues Do-Not-Call List advisory

Do-Not-Call List promotions by various companies should not be confused with any requirement to subscribe to the national Do-Not-Call List, CREA reminds members.

LEGALBEAT: Sellers should move out when deal closes

The typical Ontario Agreement of Purchase and Sale provides that, "Upon completion, vacant possession of the property shall be given to the buyer...".

Pricing to sell

In this increasingly complex and competitive market, it is essential for the real estate salesperson to be able to accurately price a single family property and list it as close to market value as possible.

Conference offers leadership courses

OREA Leadership Courses will be offered during the 2009 OREA Leadership Conference.

Brookfield buys GMAC

November 8, 2008

Brookfield Residential Property Services of Toronto is buying GMAC Home Services LLC, which operates one of the largest real estate brokerage companies in the United States.

New home starts dip

New home construction will begin to slow in 2008, but will remain high by historical standards, according to the Canada Mortgage and Housing Corporation's (CMHC) third quarter Housing Market Outlook report.

Green leases make going green easier for commercial buildings

The need for and benefits of green commercial buildings have been discussed for several years, and many commercial landlords agree that green is the way to go.

Tax assessments to rise in 2009

Ontario residential property taxpayers will see an average assessment increase of five per cent in 2009, the first year of a four-year phase-in plan.

WIRED OFFICE: Find it fast with Google Desktop

Like many professionals, REALTORS® can accumulate a lot of information on their computers over time. Between E-mails, instant messages, digital photos, PDF documents, spreadsheets, and other files, locating a specific tidbit of information can be like finding a needle in a haystack.

Property appraisal considered personal information

When banks conduct a residential property assessment as part of a loan application, the property owner has a right to receive a copy of the assessment.

LEGALBEAT: Honesty, clarity needed for SPIS

The sellers were aware of some water damage and had professionals do some repairs and restoration work.

Interested in running for a position on OREA’s 2009 Board of Directors?

Activate your OREA Card today!

Activate your OREA Card online today, or call our Customer Service Contact Centre at 1-866-234-0186 to activate your card!

CSAE elects OREA CEO

OREA CEO Edward Barisa was elected to the Canadian Society of Association Executives (CSAE) Board of Directors at the CSAE National Conference and Showcase in October. Ed also received a 20 year membership service pin at the conference.

Developers soon face tough FINTRAC rules

October 18, 2008

Canada's real estate developers will soon face the same tougher transaction reporting rules as REALTORS®.

MLS® listings soar

New MLS® listings rose to 80,147 nationally this summer, up 14.4 per cent year-over-year, according to CREA.

Energy efficient renovations offer good return on investment

REALTORS® are often asked to suggest improvements that will make their clients’ homes more saleable and provide the biggest return on investment (ROI).

Ontario REALTORS®embrace technology for business

Computers play an important role in a REALTORS®’ daily business and most use them at home or in a home office.

WIRED OFFICE: REALTOR® voices on the social scene

Real estate is such a relationship-based business that it’s no wonder REALTORS® across North America are embracing social networking.

RECO decision: Talk to member, not his client

Legalbeat: commission paid without a listing.

During a 5 per cent listing the buyer made several offers through its agent but no transaction was made.

Leadership course training heads west

OREA’s leadership courses have been so well received that they have been demanded nationally.

What do you mean ‘don’t call me’?

OREA offers this new two-credit, classroom only course to teach members about the Do-Not-Call registry.

The Real Estate Board of the future

What would the needs of the member be? What services would be required?

Tarion to get Ombuds

September 8, 2008

Tarion, the province’s new home warranty program, will soon have a New Home Buyer Ombudsperson to mediate homeowner's complaints, as well as to suggest any changes in policy or practice that may be needed.

Prices will rise, but sales will fall

House prices are expected to rise modestly overall in Canada this year, but national sales are projected to fall from last year's levels, according to a recent Royal LePage forecast.

New ad campaign promotes commercial sector

It worked so well for residential REALTORS®, why not give commercial REALTORS® their own ad campaign?

OREA signs Educational Services Agreement with RECO

The Real Estate Council of Ontario has selected the Ontario Real Estate Association as its designate to provide enhanced registration education under a five year agreement signed on July 31, 2008.

Keep proof of payment of Do Not Call List

Marketing, specifically telemarketing, gets a little tougher by the end of this month when the National Do Not Call List (DCNL) will be up and running on September 30, 2008.

Shorter amortization better in the long run

As of October 15th, 40-year mortgages with no money down will no longer be covered through the federal government insurance program administered by Canada Mortgage and Housing (CMHC).

WIRED OFFICE: Cool gadgets for busy REALTORS®

REALTORS® are big users of the latest technology in their business whether it’s the newest cell phone, GPS, digital camera or laptop.

LEGALBEAT: Failure to give notice voids increase

The tenant paid $179 per month rent for her occupancy of land in an Ontario land lease park.

College expands its online offerings

OREA’s reputation for providing quality continuing education courses is spreading across the country.

New ministry oversees REALTORS®

In August, Premier McGuinty announced a reorganization that moves the Consumer Services Division of the Ministry of Government and Consumer Services to the newly named Ministry of Small Business and Consumer Services.

August 8, 2008

Following the Real Estate Council of Ontario’s Annual Meeting in June, the Board elected Brian Sukkau to serve a second term as Chair and Glenda Brindle to serve as Vice-Chair. The following people, elected by RECO members in May, were installed as Directors at the Annual General Meeting:

Ontario starts up in 2008, down in 2009

New home construction will remain above historical averages, with housing starts in Ontario climbing to 72,175 units in 2008, before moderating to 65,000 units in 2009, according to the 2008 Second Quarter CMHC Housing Market Outlook - Canada Edition.

New FINTRAC rules in place

The specific regulations for the real estate sector for anti-money laundering and anti-terrorist financing took effect on June 23rd, 2008.

Seller take-back mortgages exempt from mortgage legislation

OREA members arranging seller take-back (or vendor take-back) mortgages as part of a real estate transaction are exempted from the requirements of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA).

WIRED OFFICE: PoGo goes where you go

Hard to believe it was more than 60 years ago that Polaroid introduced the instant camera amazing consumers with its ability to produce a printed picture within 60 seconds.

The National Do Not call list: dos, don’ts and definitions

CREA has created the booklet “The National Do-Not-Call List” to provide more information to REALTORS® about how they will be affected when the list comes into effect on September 30, 2008.

LEGALBEAT: No parking: both agents found negligent

The seller, buyer's lawyer, buyer's agent and seller's agent were all guilty of negligence in failing to properly deal with property measurements and parking requirements.

Ed Barisa wins award

OREA’s CEO, Ed Barisa, CAE, has won the Chapter Service Excellence Award from the Canadian Society of Association Executives (CSAE) Trillium Chapter.

York Board dissolves

The York Region Real Estate Board was dissolved on July 1, to better serve all REALTORS® within the board’s boundaries.

OREA will be rolling out a new look

Watch for OREA’s new look in all of its printed material, including the REALTOR® EDGE.

New website details best mortgage options

June 6, 2008

The Canadian Association of Accredited Mortgage Professionals (CAAMP) has launched a new website to provide consumers with the tools to find the best mortgage options to suit their needs.

Canadian economy to grow through 2010

The deterioration in economic and financial conditions in the United States will have direct consequences for the Canadian economy, the Bank of Canada said in May.

mls.ca is changing

On June 30, the new REALTOR.ca portal will be launched.

Look to website for FINTRAC updates

On June 23, REALTORS® will have to begin complying with new requirements under Canada’s anti-money laundering legislation.

National Do Not Call List coming in September

Telemarketers, including REALTORS®, will face a new marketing challenge and will have more rules to observe as the National Do Not Call List (National DNCL) comes into effect on September 30, 2008.

WIRED OFFICE: iPhones coming soon to Canada

The Apple iPhone’s much-hyped debut in the U.S. almost a year ago left many Canadian technophiles anxiously awaiting the product’s release in Canada.

Green buildings may affect lease negotiations

Getting the right tenant with the right landlord or the right developer often requires masterful negotiations.

LEGALBEAT: Oil tank ruled not a latent defect

Goodyear owned a property which was sold to buyer 1 in 1988 and then sold to buyer 2 in 1996 who discovered a buried oil tank. Goodyear was sued by buyer 2.

OREA is recognized as a leader in quality continuing education not only in the province of Ontario, but across the country.

Get easier access to your information

Responding to the requests of many boards, OREA is making access to the information you need to know easier.

OREA mourns Past President Johnson

The Ontario Real Estate Association is sad to report the passing of 1978 President Arthur F. Johnson, 72, in Guelph, in May.

RECO introduces on-line voting

May 6, 2008

New this year, registrants can vote on-line in the upcoming RECO elections.

Ontario housing starts down slightly in March

For the first quarter of 2008, actual Canadian housing starts in both rural and urban areas combined increased by 12.8 per cent compared to the same period last year according to Canada Mortgage and Housing Corporation (CMHC).

New rules for real estate lawyer representation

Two lawyers are now required for many real estate transactions involving a transfer of title following recent amendments to the Rules of Professional Conduct by the Law Society of Upper Canada (LSUC).

Property owners to get a fairer assessment appeal system

A fairer property tax appeal system is expected with changes announced by the provincial government.

WIRED OFFICE: New Microsoft technology about to “Surface”

New product development in the computer technology industry could be the stuff spy action-thrillers are made of.

Some FINTRAC issues clarified

The fog of confusion of complying with some of the new requirements of Canada’s anti-money laundering legislation may be a little less dense now that FINTRAC has provided CREA and members with some answers and tools.

RECO Decision: registrant concealed UFFI

The following RECO Complaints, Compliance and Discipline Appeal decision has been condensed and can be viewed in its entirety on the RECO web site at www.reco.on.ca.

LEGALBEAT: Initialled counter-offer stands

The buyer presented an offer to the seller who discussed it with her husband. Subsequent discussions and negotiations also involved the husband.

Construction at OREA

Construction has begun at OREA to add an extension onto our office at 99 Duncan Mill Road.

Keep cell phone handy

Keep cell phones, PDAs, portable MP3 players, or sunglasses within easy reach on the dash of your car with the OREA Real Estate College Cell-Mate.

New course maximizes use of your Blackberry®

Two new one-credit courses, Introduction to Blackberry® 101 – “Trackball” and Introduction to Blackberry® 101– “Trackwheel” are now offered by the OREA Real Estate College.

Continue leadership training with courses

Take the opportunity to continue your leadership training by taking and perhaps completing OREA’s current series of leadership courses at upcoming workshops.

Learn about mortgage brokerage at session

April 7, 2008

On July 1, 2008, the new Mortgage Brokerages, Lenders and Administrators Act, 2006 comes into full effect.

Business real estate betters bonds in 2007

Real estate return on investment remained strong throughout 2007 according to results of the recently released ICREIM/IPD Canadian Annual Property Index. IPD, a leading commercial real estate performance analysis service,

Money laundering law taxes REALTORS®

Changes to Canada’s anti-money laundering legislation, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PC(ML)TFA) come into effect on June 23, 2008,

CREA addresses recession fears

The Canadian real estate market is not on the brink of collapse and is expected to have balanced conditions in 2008, and REALTORS® need to get that message out.

WIRED OFFICE: Put two numbers on one cell phone

If you are one of those people who carries two cell phones – one for business and one for personal use – you may be happy to hear about a relatively new offering from Rogers Wireless called Second Voice Line Service (SVLS).

More paperwork needed for new homes

Tarion Warranty Corporation is introducing new regulations regarding delayed closing and delayed occupancy warranties for new homes and condominiums which will come into effect on July 1.

LEGALBEAT: Fee or commission – not both!

An employee/salesperson alleged that his employers had breached a provision of the Real Estate and Business Brokers Act by charging clients a flat processing fee and a percent sales commission.

Training, mentoring wins board honours

In recognition of its success recruiting, training, and recognizing the contributions of its volunteers,

REALTOR QUEST hosts leadership workshops

Take the opportunity to complete OREA’s Leadership series of courses at the upcoming Toronto Real Estate Board REALTOR QUEST conference at the Toronto Congress Centre, May 12 and 13.

Join the REALTOR®Ride

Show your support for the REALTORS Care Foundation’s third annual REALTOR® ride for charity, a motorcycle ride is support of shelter-related charities.

Commercial job search web site launched

March 7, 2008

Produced in English and French, both www.BusinessRealEstateCanada.com and www.ImmoCommCanada.com feature job search and career information to serve the Canadian commercial real estate industry.

Winter recreational properties are hot

High levels of demand combined with limited inventory have pressured winter recreational property prices upward according to the 2008 Royal LePage Winter Recreational Property Report.

Rules change for reinstatement

As a further sign of a more professional regulatory environment in the real estate industry, a new requirement comes into effect this month.

Ottawa gets grow house registry

A new online registry will allow potential homebuyers in Ottawa to find out if the house they want to buy has been used as a marijuana grow house or crystal meth lab.

Tips for a more effective Web site

Over and over again, studies show that consumers want to start their search for a home online and expect REALTORS® to have a Web site. According to NAR’s latest technology survey more than 75 per cent of respondents have their own real estate business Web site.

Property assessment freeze lifted

The end of a three-year assessment freeze could mean homeowners in some parts of the province may face double-digit hikes in property taxes.

New energy initiatives good to know for homeowners

Grants are available for homeowners going green. Both the provincial and federal government have programs designed to encourage energy reduction.

LEGALBEAT: Wrong measurement leads to abatement

The Agreement of Purchase and Sale described the lands as being approximately 98,950 square feet as outlined on [a Schedule] attached.

OREA’s 2008 Annual Conference was made possible by the donation of our generous sponsors.

Terms phase out: course covers it all

Registrants must remember that as of April 1, 2008 the term associate broker can no longer be used in advertising.

Fahmi wins award of merit

The REALTORS® Association of Hamilton-Burlington (RAHB) recently bestowed its Award of Merit on 2005 OREA President Tamer Fahmi.

Hail 50-year mortgage?

February 11, 2008

We’ve seen the 30-year and even the 40-year mortgage.

New homes up in 2007

Housing starts in 2007 reached their second highest level in nearly two decades, according to Canada Mortgage and Housing Corporation (CMHC).

Consumers want more commitment, aftercare from REALTORS®

REALTORS® are seen as professional, knowledgeable and communicative according to a recent OREA online consumer survey.

TSSA warns of pitfalls of purchasing gasoline stations

With some economists telling Canadians to prepare themselves to pay $1.50 a litre for gasoline and predicting oil to reach US$150 per barrel, purchasing a gasoline station may seem like a sound investment.

WIRED OFFICE: Voice-to-text service now available through Rogers

In the ever-changing world of mobile communication technology, voicemail to text conversion is a hot new trend.

Home inspections – to be there or not to be there?

RECO has received several questions regarding home inspections and who should be present during the inspection as well as how client instructions should be handled.

Dip in new home builds slows growth in Ontario

Ontario's economy will continue to struggle with a beleaguered manufacturing sector and the effects of Canada’s high dollar slowing growth to 1.4 per cent in 2008, according to a provincial forecast released in January by RBC.

LEGALBEAT: Buyers should have asked about mice

The buyers viewed a home for sale with a REALTOR® and while other potential purchasers were present, they did not observe any evidence of mice.

New Student Handbook replaces career guide

The Student Handbook is now available, replacing the Real Estate Career Guide of previous years.

Uncover leader secrets

Board leaders are invited to the 2008 OREA Annual Conference, February 26 to 28, at the Sheraton Hotel in Toronto, to discover the secrets of how to be a leader in this industry.

All OREA members are invited to attend the Annual Meeting of the Assembly on Wednesday, February 27, 2008 at the Sheraton Centre in Toronto, starting at 10:00 a.m.

Ontario Expands Land Transfer Tax Refund

January 12, 2008

First time buyers of resale homes are now eligible for a refund from the provincial government of up to two thousand dollars of the land transfer tax paid.

Market Watch

Home ownership is a high priority for new Canadians. According to a recent report by Genworth Financial, half of new Canadian immigrants purchase a home within three years of their arrival in the country.

Canada not linked to US real estate market troubles

The melt-down of the U.S. real estate market has left many homebuyers wondering if and how it may affect the housing market in Canada.

GST cut good for new homebuyers and homeowners

The tax changes outlined in the federal government’s economic statement will bring significant savings to new homebuyers, but will also benefit existing homeowners.

WIRED OFFICE: Video tours may be the next big thing in online marketing

Consumer surveys consistently reveal that potential homebuyers want to see lots of pictures in online listings.

Boilers need annual testing and inspections

A new rule regarding heating systems in Ontario means all natural draft gas and propane-fired boilers in homes will require annual inspection and testing.

LEGALBEAT: Checking for easements

The buyer paid a deposit of $60,000 with an offer for a Toronto home.

New MPAC online course coming soon

What gives the Municipal Property Assessment Corporation (MPAC) the right to go onto your property and assess it?

Get updated forms

New forms have been introduced and changes have been made to enhance the readability of existing forms.

Participate in RECO's satisfaction survey

December 5, 2007

RECO is conducting its second registrant satisfaction survey in order to assess its service delivery, identify areas for improvement

Housing starts to dip slightly in 2008

Canada Mortgage and Housing Corporation’s (CMHC) fourth quarter Housing Market Outlook predicts residential construction in Canada will decline to about 214,000 units next year.

New and revised forms for 2008 keep pace with the industry

REALTORS® rely on OREA’s standard forms extensively in their day-to-day businesses.

Legal Forum tops 3,000 questions

OREA’s online Legal Forum has hit another milestone.

WIRED OFFICE: More REALTORS® investing more money on technology

A new survey by the National Association of REALTORS® (NAR) suggests REALTORS® invest heavily in technology with more than half of brokers, salespeople, and managers saying they spent more than $1,000 last year.

Pamphlet offers septic system advice

Having knowledge about septic systems is important for REALTORS® who deal with cottage and rural properties.

LEGALBEAT: Two listings, two commissions

The mortgagee started a British Columbia foreclosure action and the court ordered that the property was to be sold.

“Sell” book updated

Guiding sellers through the sale of their home is always easier if they come into the process with some knowledge.

Leadership courses on to next level

Leadership 200, Becoming a Leader is the second in a series of leadership courses offered by the OREA Centre for Leadership Development.

Ontario workers to get another day off

November 8, 2007

A day after the provincial election was held in October, the Ontario government confirmed that it would create a new statutory holiday called Family Day.

Condo market cooling

Condo market demand across Canada is expected to ease slightly although new construction and resale activity will remain high by historical standards according to a report by Genworth Financial Canada.

CREA issues Call to Action on proposed FINTRAC changes

Proposed changes to Canada's anti-money laundering and anti-terrorist financing framework could be costly for REALTORS®.

Anti-competitive behaviour – be aware of it; avoid it

How well do you know Canada’s Competition Act?

Add these wireless gadgets to your wish list

Wireless technology is becoming more common in notebooks, PDAs, and especially cell phones.

REALTOR® profile high; volunteers key

In 2007 OREA instituted the OREA Centre for Leadership Development, and the time could not have been better.

Delayed occupancy agreement is not a waiver

Under Ontario's new home legislation there are provisions dealing with a delayed or extended closing of a transaction.

Barisa reaches CSAE Pinnacle

OREA CEO Ed Barisa has won the Canadian Society of Association Executives (CSAE) 2007 Pinnacle Award.

Interested in running for a position on OREA’s 2008 Board of Directors?

New reverse mortgage kid on the block

October 9, 2007

New Zealand-based Senior's Money International has announced it will open a Canadian branch to offer "reverse mortgages" that will compete against the Canadian Home Income Plan product offered by Home Equity Income Trust.

Resales break more records

According to CREA, resale home transactions in Canada hit a fourth straight monthly record in July, with the average price rising to $332,442, a 13.1 per cent increase over July 2006.

Why you should use the SPIS

OREA’s Seller Property Information Statement (SPIS) is a valuable tool that all REALTORS® should consider using at all times.

Improving water quality through reverse osmosis

A reliable supply of clean drinking water is always a concern for homebuyers of rural and recreational property.

Podcasting can boost your marketing efforts

Technology has forever changed the world of real estate marketing.

RECO decision: Failure to disclose costly

The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety in the 2007 Discipline and Appeals Decisions on the RECO Web site at http://www.reco.on.ca/.

Merv’s column: Independent contractor put to test

The issue in this case was whether the mortgage broker was engaged pursuant to a contract of services or a contract for services.

Leadership program wins award

OREA and the OREA Centre for Leadership Development has won a national award for Education and Professional Development from the Canadian Society of Association Executives’ (CSAE) “Associations Make a Better Canada Award”.

Multiple Offers now offered on-line

The two-hour, two-credit course Multiple Offers: Risks and Rewards is now available on-line.

Tim Lee honoured for years of service

OREA has bestowed an Honorary Life Membership on 2007 Past President Tim Lee for his many years of service.

Housing market studied at CMHC conferences

September 9, 2007

CMHC will host five Housing Outlook Conferences in Ontario from November 6 to November 22.

Goodnews or bad news for Ontario economy?

Despite concerns over a higher Canadian dollar and its impact on the province’s manufacturing sector, stronger than expected consumer confidence levels have fuelled extraordinary demand for properties across Ontario

High-rise condo market continues to climb

Most people want to own a home. But with legislation restricting the places where people can build, how will that affect consumers?

Ontario rent increase guideline lowest rate ever

At only 1.4 per cent, the Ontario rent increase guideline for 2008 will be the lowest guideline since rent increase guidelines were introduced more than 30 years ago.

The wonderful world of Web 2.0

If you’re just getting comfortable with using the Internet in your business, hang on to your mouse!

Property tax deferral programs benefit seniors and disabled homeowners

Low-income seniors and disabled people in the City of Ottawa who own their homes may be able to defer some of the taxes on their property.

Correcting three prevalent myths about heritage properties

Heritage properties are becoming an area of focus for some Ontario real estate salespeople and brokers. In Brampton (at time of writing), for example, there are no fewer than 400 listed heritage properties on the municipal inventory.

Merv’s Column: No option

A 74 acre parcel of farmland sold for $850,000 in a Purchase Agreement that contained an addendum that was allegedly drafted to allow the seller to acquire title to the farm’s residential parcel if the rest of the property was ever subdivided.

Tap into apartments

Ontario is Canada’s second-largest overall rental apartment market, trailing only Quebec.

Teach new leaders!

The OREA Centre for Leadership Development is now accepting applications for Leadership Instructors to teach the newly developed leadership courses.

July 9, 2007

Following the Real Estate Council of Ontario’s Annual Meeting in June, the RECO board elected Brian Sukkau to serve as chair and Lawrence Bremner to serve as vice-chair. In earlier voting for its 2007 Board of Directors, members elected the following people:

Real estate market slowing down

Canada’s housing market is expected to cool off gradually this year thanks mainly to rising interest rates, an increased supply of homes on the market and an aging population according to Scotiabank’s most recent economic report.

Closed book examinations will raise education bar

Brokers, REALTORS®, regulators and other certification bodies have all expressed a need to implement more rigorous registration standards to prepare real estate professionals to deal with consumers and other professionals with credibility and authority.

Non-payment of insurance will result in suspension

As a result of amendments to the Real Estate and Business Brokers Act, 2002 and regulations, the consequences of failing to pay required insurance amounts have changed.

Wired Office: Smartphones offer all-in-one solution

From getting listings to showing properties to closing sales -- REALTORS® are often away from their desks.

Check hydro pole ownership in rural areas

When your clients buy a rural property do you think they know they might be buying hydro poles, too?

Employee’s indiscretion results in complaint to Privacy Commissioner

A recent decision of the Office of the Privacy Commissioner (OPC) shows how an employee’s “slip of the tongue” during a relatively routine telephone call about debt collection resulted in her employer getting into trouble with the Privacy Commissioner.

Merv’s Column: What constitutes “nuisance”?

The buyer purchased a New Brunswick gas station site “as is” and added it to other adjacent lands for development.

New course offers technology tips

OREA Real Estate College offers a new online one-credit course to help REALTORS® make good choices when it comes to hand held technology.

Continue leadership training with course

The OREA Centre for Leadership Development is about to launch its second leadership development course, Leadership 200.

Lenovo cuts prices for OREA members

If you are looking for a new computer, now might be the time to buy.

The Real Estate Book, LiveDeal.ca partner

June 10, 2007

Network Communications, Inc. (NCI), publisher of the Real Estate Book, recently signed an agreement with LiveDeal.ca, to post all Canadian listings of homes for sale from The Real Estate Book on LiveDeal.ca.

High-end cottage property in demand

According to the 2007 RE/MAX Recreational Property Report, sales of luxury recreational properties are set to soar in the coming months across the country.

Same advertising rules apply for REALTOR® Web sites

Web presence in the early days of the Internet was mainly limited to big business.

Mortgage insurance changes may not be a good thing

For the last 40 years, homebuyers have been required to buy mortgage insurance unless their down payment totalled at least 25 per cent of the purchase price.

Internet to Go!

Considering the amount of time a REALTOR® spends out of the office, mobile Internet technology can have many advantages.

RECO decision: Deal fairly other members

The following RECO Complaints, Compliance and Discipline Appeals decision has been condensed and can be viewed in its entirety on the RECO Web site at http://www.reco.on.ca/.

Discipline under REBBA 2002

The RECO Code of Ethics now falls under the Real Estate and Business Brokers Act, 2002.

Merv’s Column: GST – CONDO Q&A

QUESTION: The buyers accepted the bank's offer on power of sale listing (price etc.) except that the bank's agent brought an offer which indicated that GST is "in addition to" the agreed up on price of a resale property "sold as is where is".

Course praised for quality education

The course “Agency Fundamentals: The National Perspective” has been chosen as the Real Estate Educators Association’s (REEA) Education Program of the Year for 2007.

OREA offers new service to members

Feeling like a valued customer or client is important in any service relationship.

Achieving excellence in the classroom

OREA Instructor Geof Smith addresses instructors at a seminar with a focus on "Classroom Performance — Achieving Excellence”.

Opportunity: ORC looking for vendors

May 10, 2007

Real estate brokerages are invited to submit proposals to be considered as Vendor of Record as detailed in Ontario Realty Corporation’s (ORC) Request for Proposals (RFP) RFP 06C037.

Housing market exceeds expectations

Canada's housing market got off to a surprisingly strong start in 2007 with average house prices rising in all major markets surveyed, according to a first quarter report released by Royal LePage Real Estate Services.

WEBForms™ V4 now available

WEBForms™ officially released Version 4 to REALTORS® across Canada at the end of March. Prior to the release, the upgrade was put through three months of beta testing with over 80 REALTORS® and staff.

Protect your reputation

NAR’s most recent Profile of Home Buyers and Sellers showed that potential clients look for a good reputation and trustworthiness when choosing a REALTOR®.

Do your listing photos reflect your professionalism?

A picture tells a thousand words as the saying goes. But, when it comes to listing photos, a bad picture can tell a negative story and can hamper your ability to sell a house for the best price possible.

What you should know about surveys

There are many situations when REALTORS® should recommend to their clients to have a survey of the property completed.

Merv’s Column: Aren't tax laws just super?

The owner gives a first mortgage at a time when he owes money to Canada Revenue Agency (CRA) for GST and source deductions.

Learn how to lead

The OREA Centre for Leadership Development launched Leadership 100 in April.

Spring into action

Take advantage of the OREA College’s Spring into Action promotion for continuing education online course credits.

New 55-year mortgage aimed at self-employed

April 8, 2007

Reliant Home Warranty Corporation's Canadian subsidiary, Reliant Home Mortgage Canada Inc.

MLS® sales stay high

According to statistics released by The Canadian Real Estate Association, resale housing activity in Canada's major markets remained strong in February 2007.

Underground fuel oil tanks: get the facts

Did you know that as of May 1, 2007, all existing fuel oil storage tanks (aboveground and underground) and associated appliances must undergo a comprehensive inspection?

New act governs tenanted-properties

The Residential Tenancies Act (the RTA) came into effect on January 31, 2007.

WIRED OFFICE: Don’t trash your old PC – recycle it!

The rate of change in computer technology may prompt you to upgrade your PC every few years.

RECO decision: Act in client's best interest

The following RECO Complaints, Compliance and Discipline decision has been condensed and can be viewed in its entirety on the RECO Web site at http://www.reco.on.ca/.

Merv's Column: Seller must honour agreement

IMAGES

What Is an Assignment Sale? Understanding the Ins and Outs of This Real
What is Assignment Sale? What's the process of assignment sale?
What Is an Assignment Sale? Understanding the Ins and Outs of This Real
What Is an Assignment Sale? (Benefits for Sellers and Buyers)
Understanding Challenges in the Assignment Sales Process
What is an Assignment Sale ???

VIDEO

Experience Buyers Question on Presale and Assignment sale Transactions?#realestate #Assignmentssale
What’s the assignment?
Assignment Sale
Condo Assignment Sales: What You Need to Know
Oakville assignment sale! #shortvideo #viral #oakville #brampton #assignmentsale @sukh_bhardwaj
Assignment Sale at West Peak Condos in North York #shorts

COMMENTS

10 Things To Know About Assignment Sales in Real Estate
An assignment is when a Seller sells their interest in a property before they take possession, usually a pre-construction condo. Learn about the reasons, benefits, costs, risks and tax implications of assignment sales for Sellers.
10 Essential Things To Know About Real Estate Assignment Sale (For
An assignment is different from a sale of property because in a sale both parties (the seller and buyer) are involved; and in an assignment, the seller transfers their rights, interest and benefits under their contract to another buyer. The seller can assign their contract before or after closing day.
What Is An Assignment Sale & How Does It work?
Are there any advantages of purchasing an assignment? Is it better than buying a resale? This video is your comprehensive guide on assignment sales. You'll l...
What Is an Assignment Sale? Understanding the Ins and Outs of This Real
Understanding the Ins and Outs of This Real Estate Process. An assignment sale occurs when the original buyer of a property (the assignor) transfers their rights and obligations of the property contract to another buyer (the assignee) before the official closing of the sale. This process allows the assignee to step into the original purchaser's ...
Real Estate Definition: Assignment Sale
An assignment sale refers to a sales transaction in which the original buyer of a property ("assignor") transfers their rights and obligations of the Agreement of Purchase and Sale to another buyer ("assignee") before the original buyer takes possession of the property. The assignee then becomes responsible for completing the deal with ...
What Is an Assignment Sale? (Benefits for Sellers and Buyers)
An assignment sale is... If you've purchased a pre-construction condo unit and you want to sell it before it's built, you might benefit from an assignment sale. An assignment sale is...
A Comprehensive Guide To Selling Your Assignment Condo
An assignment sale is a sale where the original buyers of a condo or home resell their contract to another buyer before closing. The most common type of assignment is a preconstruction condo assignment. Preconstruction condo assignments are prevalent because of the time lag between purchasing the home and the move-in date. While condo ...
Real Estate Definition: Assignment Sale
An assignment sale is when the original buyer of a property transfers their rights and obligations to another buyer before taking possession. Learn what to consider before entering an assignment sale, how it works, and why it happens.
Assignment Sale: A Guide
An Assignment Sale occurs when a buyer successfully allows a third party to assume the rights and responsibilities of an Agreement of Purchase and Sale, prior to completion of the transaction. The third party, known as the "assignee", then completes the transaction with the original seller. The original buyer (assignor) is free of all ...
What is an Assignment Sale in Real Estate?
An Assignment Sale is when I take that paper that I signed, my right to purchase, and sell it to someone else; The Assignee, for a certain amount. To break it down, if I agreed to buy the condo for $300,000, then found a Buyer aka Assignee, the Assignee has the right to purchase said unit for $300,000 but he/she has paid me a premium on top of ...
What You Need to Know About Assignment Sales
An assignment is a sales transaction where the original buyer of a property (the "assignor") allows another buyer (the "assignee") to take over the buyer's rights and obligations of the Agreement of Purchase and Sale, before the original buyer closes on the property (that is, where they take possession of the property).
What Is Assignment Sale And How Does It Work?
The sale allows new buyers to be given opportunities to own an interest in the units still if specific individuals decide to sell their assignment. When an offer is made on a pre-construction condo unit, an Agreement of Purchase & Sale would be signed by the original purchaser. The agreement would include an Assignment Agreement Clause ...
How Do Assignment Sales Work
Assignment sales can be beneficial for both parties in a real estate transaction. Although the assignor takes on some risk in buying before the project breaks ground, they reap other benefits. For example, if the value of the property goes up in the interim, they can usually sell it for more than they paid.
What Is An Assignment Sale
It is the sale of a contract to buy a unit that is still under construction. In other words, the contract or right to purchase the property after it is finished is being sold, not a unit that has already been completed. The initial buyer of a property (the "assignor") transfers their contractual duties to a subsequent buyer (the "assignee
Assignment Sale Explained
The sale must be done before the original buyer takes registered possession of the home for it to be considered an assignment sale. As such, the second buyer (the purchaser of the assignment sale) is the one who completes the transaction with the original seller (the builder).
Assignment sales 101
Learn what assignment sales are, how they work, and the pros and cons for buyers and sellers. Find out how to navigate the complex process with a realtor and a lawyer.
A Guide to Assignment of Contract in Real Estate
Written by MasterClass. Last updated: Jul 12, 2021 • 4 min read. Assignment of contract involves one party transferring the rights of a real estate purchase agreement to another party. This real estate investing strategy can involve time and financial pressure, but the assignor can potentially make a quick buck.
What Is Assignment Sale And How Does It Work?
An Assignment sale is basically the sale of a contract for purchasing pre-construction condo suites as well as freehold properties. An assignment sale is usually applicable to non-registered pre-construction condos and freehold properties. Before we dive deeper into the topic, it's important to understand some of the terms that are used in ...
Assignment Sales Explained
The sale must be done before the original buyer takes registered possession of the home for it to be considered an assignment sale. As such, the second buyer (the purchaser of the assignment sale) is the one who completes the transaction with the original seller (the builder). To put it simply, it's basically a purchase of the agreement between ...
What is an Assignment Sale?
An assignment sale represents the transfer of the rights and obligations of a property purchase contract from the original buyer (assignor) to a new buyer (assignee) before the completion of the property's construction, or before the final closing date. In simpler terms, it's when the purchaser of a property sells their rights to purchase that ...
What Is an Assignment in Real Estate?
An assignment or assignment of contract is a way to profit from a real estate transaction without becoming the owner of the property. The assignment method is a standard tool in a real estate wholesaler's kit and lowers the barrier to entry for a real estate investor because it does not require the wholesaler to use much (or any) of their own ...
Guide To Pros and Cons of Assignment Sale
Pros of Assignment Sales. One of the primary advantages of assignment sales is the potential for a significant profit. Assignors can secure a property at a lower price and then sell their contract to a new buyer at a higher price, capitalising on market appreciation or favourable negotiation. Assignment sales allow buyers to secure a property ...
What consumers need to know about assignments: RECO
A: An assignment is a sales transaction where the original buyer of a property (the "assignor") allows another buyer (the "assignee") to take over the buyer's rights and obligations of the Agreement of Purchase and Sale, before the original buyer closes on the property (that is, where they take possession of the property).

10 Essential Things to Know About Real Estate Assignment Sales (for Sellers)

What’s an assignment?

Do assignments only happen with pre-construction condos?

Why would someone want to assign a condo?

What can be negotiated in an assignment sale?

Builder Approval and Fees

Marketing Restrictions

What are the tax implications of real estate assignment?

How much does it cost to assign a pre-construction condo?

How does the closing of an assignment work?

Assignments vs. Resale: Which is Better?

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What Is an Assignment Sale? Understanding the Ins and Outs of This Real Estate Process

Demystifying the Elements of an Assignment Sale

How Assignment Sales Work

The Assignment Clause: A Vital Cog in the Wheel

Understanding the Financials: Costs and Fees

Navigating Through the Interim Occupancy Period

The Pros and Cons of Assignment Sales

The Bright Side: Benefits of Assignment Sales

The Flip Side: Challenges and Risks of Assignment Sales

Making the Move: Deciding If an Assignment Sale Is Right for You

Conduct Due Diligence: Know What You're Getting Into

Consider Your Financial Standing and Long-Term Goals

Stay Informed About Market Conditions

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Frequently Asked Questions

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What Is the Difference Between a Transfer and an Assignment?

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Real Estate Definition: Assignment Sale

What is an Assignment Sale?

Factors to Consider Before Entering an Assignment Sale

Developer’s Consent

Assignment Fees

Legal Advice

How Does an Assignment Sale Work?

Why Do Assignment Sales Happen?

Benefits of Assignment Sales

Profit Potential

Opportunity for Early Ownership

Flexibility

How a Real Estate Agent Can Help You Navigate this Process

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A Comprehensive Guide To Selling Your Assignment Condo

What is a preconstruction condo assignment sale?

The Builder’s Role In Assignments:

How do you sell an assignment condo?

Important Dates:

What Is Negotiable During An Assignment Sale:

Conditions In Assignment Sales