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FRANCES BULA
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A Supreme Court judge has ruled that a majority of owners in a strata-type project in North Vancouver can ask for a sale of the whole property, even if a minority says the sale will force them out of the only affordable homes in their neighbourhood.

That adds one more decision to an increasingly contentious issue in British Columbia – how to deal with jointly owned properties in a province where a quarter of the population lives in collectively owned housing, largely stratas.

The issue is so thorny and prevalent that the B.C. Law Institute is working on a research project to look at how to improve the law in B.C. for dissolving strata corporations.

Lawyers for both groups at Seymour Estates, near Capilano University, say the decision by Supreme Court Justice Lauri Ann Fenlon put conditions on the order that require the final sale price and buyer to be approved by the court.

But the door is still firmly opened for 87 owners in the 114-unit project, who have been courted by Darwin Construction Ltd. of North Vancouver the last three years, to sell the entire seven-acre parcel. Seymour Estates, built in 1970, is not a strata under current B.C. law, but has an ownership model similar to a strata.

The court ruling is an important decision because it makes it clear that one small group of owners cannot block everyone else from selling, said Peter Roberts, the lawyer who acted for the pro-sale group.

John Whyte, who represented the small group of owners resisting, said the ruling Friday by the judge drew an “audible gasp” from the standing-room-only crowd.

For his clients, he said, “it was really their only option into the market in this neighbourhood.”

He and his clients are hopeful about Justice Fenlon’s conditions, which are meant to ensure the owners get the best possible price. That price will be scrutinized in the second legal round, to determine the impact for existing owners, Mr. Whyte said.

“Then we will know if people will be dislocated. They can compare that number for what they could buy in the area.”

Many residents in the complex didn’t want to speak publicly about where they stand on the issue. But some said they felt many owners didn’t understand that the Darwin offer was not the best deal they could get.

Darwin confirmed it is offering owners about 30 per cent more than they could get on the market right now. But if Darwin is successful in getting the land rezoned, the property will be worth significantly more than that. The area is slated for increased density, according to the District of North Vancouver’s official community plan.

One resident, however, said she’ll be happy to sell and get out.

“These are really nice places but everything is going wrong with them,” said Susan Watson, who has lived at Seymour Estates for 18 years. “If we stay, we’re going to be hit with a huge special levy. There’s plumbing trucks here every day.”

The dilemma of selling jointly owned properties has been rising to the surface, as the province’s older condos and jointly owned properties approach the 50-year mark and as builders hunt for low-density tracts near transit that they can redevelop.

The current B.C. Strata Property Act says that a strata-owned property can only be sold as a whole if 100 per cent of the owners agree.

“It’s very difficult to get to that point,” said Kevin Zakreski, the staff lawyer with the B.C. Law Institute working on the project to find a better mechanism.

At the moment, if there is anything less than unanimity, the group of owners wanting to sell have to go to court to try to get a sale ordered – an expensive, time-consuming procedure.

Two years ago, a group from an older North Van project, Cypress Gardens, tried to get a sale ordered, but were turned down because the judge said they didn’t represent a majority and they’d create too much hardship for those who didn’t want to sell.

Mr. Zakreski said B.C.’s rules are more onerous than those of other provinces, which typically allow a sale to be completed by the strata council if around 80 per cent of owners agree.

The law-institute project is going to go out for public consultation later this year.

© Copyright 2014 The Globe and Mail Inc.

By Bob Aaron
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A ruling of the Ontario Superior Court of Justice in December makes it clear that a seller is responsible for paying commission to the real estate agent if a full price offer is presented, whether or not the offer is accepted.

Back in September 2008, Richard Fody signed a listing agreement with T. L. Willaert Realty for a vacant parcel of vacant land near Tillsonburg, Ont. The $229,000 listing price was later reduced to $199,900.

In the standard OREA listing agreement Fody agreed to pay Willaert a commission of five per cent of the sale price.

The agreement stated that commission was due and payable upon delivery of any “valid offer” on the terms set out in the listing agreement or any other terms acceptable to the seller. Even if the transaction failed to close, commission was payable if the non-completion of the transaction was owing to the seller’s “default or neglect.”

A vacant land data input form signed at the same time as the listing agreement showed that the property was a “desirable treed building site just minutes from Tillsonburg” and that the buyer would be responsible for installing a well and septic system.

Willaert found a buyer who submitted an offer for $150,000 in March 2009. When Fody refused to meet with the agent, the offering price was increased to $170,000, $184,000 and finally $186,272.50. Fody signed the offer back at $195,000, but ultimately refused to accept it.

At the end of April, the purchaser submitted an offer at the full asking price of $199,900. The offer was faxed to Fody’s lawyer and a copy was dropped off the same evening in Fody’s mailbox. Fody and the agent also exchanged text messages over the next four days. Fody did not respond.

Terry Willaert then sent a text message to Fody advising him that the offer would expire at midnight on that day and should he decide not to sign the offer, “the commission will still be payable” under the terms of the listing agreement. Ultimately, Fody did not accept the offer.

Willaert sued Fody in Small Claims Court for the commission of $8,995.50 plus HST and costs. In a detailed and well-reasoned decision, deputy judge James Searle ruled in favour of the real estate agent and found that the listing agreement was sufficient to make the seller liable to pay the stated commission on the basis of an offer that met all the terms of the listing agreement.

In his decision, the deputy judge wrote, “The court has no doubt Fody was avoiding and otherwise frustrating Willaert because he decided not to sell unless he was able to purchase a farm. When the prospect of purchasing a farm evaporated late in April of 2009 he became inaccessible and nasty and refused to act in good faith when Willaert was obtaining and communicating offers that were near, then at, the listing price, something Willaert was obligated and entitled to do.”

Fody appealed the Small Claims Court decision to the Superior Court of Justice and the court released its reasons on December 12.

Justice Marc Garson ruled that the price offered by the buyer was both the full listing price and the best available price at the time.

After reviewing previous judicial decisions, Justice Garson wrote, “Simply put, courts have recognized that listing agreements are binding contracts … The law further provides that the vendor may be liable for the commission even though the transaction does not close.”

In dismissing the appeal and holding that the full commission was payable, the court ruled that a valid offer was submitted to the seller during the listing period and that the seller acted “in bad faith and attempted to frustrate the efforts” of the agent in presenting the final offer.

“Acceptance of the offer is not required. The listing agreement clearly contemplated payment of the commission upon presentation of an offer at the full asking price.”

Sellers should think twice before refusing to pay their real estate agents for doing what they were hired to do.

Bob Aaron is a Toronto real estate lawyer and chair of the Tarion consumer advisory council. His bi-weekly columns appear in The Toronto Star. He frequently lectures to real estate agents. Email [email protected]. Website www.aaron.ca. 

Toby Welch
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Curb appeal has been talked to death in the real estate industry for decades.  We get it – a house needs to make a mind-blowing impression when buyers see it for the first time.  As that rarely happens anymore when a client steps out of a Realtor’s car, a positive first impression online is essential.  The curb these days is a virtual one.

The importance of virtual curb appeal hit me when I came across Michael Thorne’s website when I was mindlessly surfing the web.  The B.C. Realtor with Re/Max Little Oak Realty Langley had a video on his website, “The Dinner Party.”  I watched the four-minute video and was floored by how attractive it made the featured property appear; the virtual listing highlighted the home better than any other advertising campaign I’ve come across.

After seeing “The Dinner Party”, I contacted Thorne, who said the feedback he’s received from the video has been “fantastic.”  His goal was to do something that no one in his community had done before, and he succeeded.  Thorne shared his thoughts on the topic of incorporating videos into his marketing plan to showcase properties in their best possible light.

“I can’t remember the exact statistic but it is something like 73 per cent of sellers are more likely to list with an agent who is using video.  We did 30 videos in 30 days of our favourite 30 places in the community.  The response was incredible.  Video allows the viewer to really “connect”, whether that is with the community, the home or you.  Pictures can be enough but our team isn’t looking to do what’s ‘enough’ for our clients.”

Colleen DePodesta, a sales rep with Re/Max Garden City Realty in Burlington, Ont., incorporates video and online media in all her marketing; she believes there isn’t any other way to maximize virtual curb appeal.  “You have three seconds to capture the attention of an online consumer.  Don’t believe me?  Google it!,” she says. “Listings sell faster and for more money when showcased online for mobility and accessibility.  Almost every home buyer conducts their home search online and over half of those people are on mobile devices.  That is just a fact.”

DePodesta used an analogy to express her point. “When I started in the business 28 years ago, if you went to buy a new fridge, you’d be given a beautifully designed, high-gloss, colour brochure to seal the deal.  In stark comparison, real estate agents at the time were still using black and white MLS listing printouts to sell a property worth hundreds of thousands of dollars.  That disconnect is the relation I give to modern-day online consumers.”

We’ve all heard the statistics – over 90 per cent of home buyers use the Internet to research homes before they ever see a property in person.  That fact drives home the notion that virtual curb appeal has never been more important than it is today. So how do you create superior online curb appeal?

Regardless of whether you want to use photos or video, stroll around the property and list the features you want to highlight.  When light is optimum for the effect you want, shoot the pictures or videos, making sure to keep the equipment steady. (Blurry pictures or jerky video shots will do nothing but annoy viewers and ruin any hope of cultivating curb appeal.)  Consider adding dialogue once they are uploaded.  Take a look at the website once the files go live to confirm they turned out as you’d planned.  As with all marketing paraphernalia, ensure nothing in the client’s home is displayed that would make your clients or potential buyers uncomfortable.

As you go about creating virtual curb appeal for your listed properties, focus on the feeling that you want to come across to web surfers and what will appeal to potential buyers.  Keep in mind that video is becoming so mainstream online that consumers now expect it.  More and more of those are expecting HD video.  Offering a video tour of each property will be the norm relatively soon.

Another bonus for having videos on your website is that search engines prefer videos.  By having video listings, you will pop up sooner when buyers look for property.  Forrester Research did a study on this subject and found that videos are 53 times more likely to appear on the first page on Google as opposed to traditional web pages without video.

By creating virtual curb appeal, you will elicit an emotional response in your viewers without them consciously thinking about it.  Done right, it can prompt buyers to consider a property they wouldn’t have otherwise had on their radar.  Done wrong, it doesn’t matter if you have the greatest property available for sale in your area; the chances of luring buyers to see your listing plummets without virtual curb appeal.

Jennifer Campbell, home stager, decor specialist, owner of Set Your Stage and the teacher of CREB’s course The Basics of Home Staging, offers tips on how to create virtual curb appeal:

Clean, tidy and well-kept are the only options.

Think like a photographer – consider camera angles, sightlines, lighting and vignettes.

Create a focal point in every core room.

Highlight key features – architecture, views and landscaping.

Create an inviting feeling that suits the potential buyer’s desired lifestyle

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Sotheby’s International Realty says 2013 activity shows a return of buyer confidence in luxury residential real estate in the country’s largest cities.

It says that despite a sluggish start to 2013, the luxury real estate market exceeded experts’ expectations in the latter half of the year. Vancouver, Toronto and Calgary all ended 2013 with positive year-over-year sales growth, with 19 per cent (Vancouver), 13 per cent (Toronto) and 33 per cent (Calgary) gains respectively. Montreal stood as the only major urban centre in Canada to post negative sales growth for 2013 year over year, reporting an eight per cent decrease in homes sold over $1 million compared to 2012.

Sotheby’s International Realty Canada CEO Ross McCredie says, “2013 proved to be a year that defied many analyst predictions. We expect to see continued growth in western Canada’s high-end housing market, specifically in attached and single family homes in Vancouver and Calgary. Entering 2014 we also anticipate Toronto maintaining its current upward sales trajectory.”

Leading the country in overall sales growth, Calgary saw properties over $1 million grow by 33 per cent compared to the year prior. From January to December 2013, property sales over $1 million set records in 10 of the 12 months of the year. A total of 722 homes (condominiums, attached and single family) sold over $1 million in 2013. Attached home sales increased 94 per cent year-over-year. Rising international immigration, inter-provincial migration and foreign investment continue to put Calgary in an enviable economic position. Entering 2014, the outlook for high-end properties and neighbourhoods remains strong, says Sotheby’s.

Coming out of a sluggish 2012, confidence returned to Vancouver’s high-end real estate in late spring of 2013. A total of 2,505 homes (condominiums, attached and single family) sold over $1 million marking a 19 per cent increase over 2012. Sales in the high end saw the greatest gains in the $4 million-plus price segment, increasing 48 per cent compared to the year prior. In the last half of 2013, the detached home market in Vancouver flourished, with a 74 per cent increase in sales over $1 million compared to the same six-month period last year.

Top-tier residential real estate sales in the Greater Toronto Area, including Durham, Halton, Peel, Toronto and York saw continued upward luxury sales momentum in 2013. This trend came in spite of a year in which many analysts called for a “cooling”, particularly in luxury condo sales, says Sotheby’s. In spite of a slower start to the year, Toronto’s 2013 top-tier residential home sales saw resurgence the latter half of 2013. Overall, a total of 5,449 properties (condominiums, attached and single family) sold in 2013 over $1 million, representing an increase of 13 per cent over 2012. Attached homes saw the greatest movement as a category, selling 23 per cent more in 2013 than in 2012.

In contrast to the rebound seen in other major centres across Canada, 2013 proved to be a quieter year for Montreal’s high-end real estate market. Montreal experienced an eight per cent decline in homes sold over $1 million compared to 2012 sales. In total, 359 homes (condominiums, attached and single family) sold over $1 million in 2013, compared to 390 units sold in 2012. The million-dollar-plus condo and attached home markets remained stable from July 1 to Dec. 31, 2013 compared to the last half of 2012, increasing three per cent and two per cent respectively.

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You’ve saved up a down payment, you’re pre-approved for a mortgage, you’ve found a place you love.

Now, HEADS UP! There’ll be all sorts of extra fees and charges coming at you. Be prepared with this handy chart.

Bill Mah
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EDMONTON – Skinny sells when it comes to lattes and jeans, but will Edmontonians buy skinny houses?

Local developer Doug Kelly believes so, having just listed two of Edmonton’s first wave of “skinny homes” on Friday.

Kelly partnered with Matthew Kaprowy of Kirkland Homes to knock down an old bungalow on a 15-metre (50-foot) lot in the King Edward Park neighbourhood, subdivide the lot into two 7.5-metre (25-foot) lots and build two five-metre (17-foot) wide, two-storey houses in its place.

“Even though they’re 17 feet wide, they don’t appear to be that narrow,” Kelly said. “We’ve got 1,750 square feet on two levels, plus a finished basement for a total of over 2,400 square feet of living space.”

City council approved zoning changes last year that made it easier to build houses on narrow lots in some mature neighbourhoods. Previously, only duplexes or semi-detached homes were allowed on 15-metre lots in older communities with RF3 zoning. The bylaw amendments, which came after four years of consultation and study, were intended to encourage greater population density in older areas while preserving their walkable, historic character.

“It rejuvenates the area. What was on this lot before was an old decrepit house,” said Kelly. “Now we have two units which are adaptable to families.”

Kelly and Kaprowy plan on building more skinny homes in areas such as Ritchie, Inglewood, Westmount and Bonnie Doon, but King Edward Park was a good place to start.

“The housing stock is at the age where it makes economic sense to tear down some of these old bungalows. We feel we’re going to do our part in rejuvenating these areas.”

The craftsman-style houses come with three bedrooms on the second floor, two and a half baths, double detached garages, a front veranda, full-width rear deck and front landscaping. The list price is $599,999.

Kelly said Edmonton lags behind other cities such as Vancouver and Calgary when it comes to building skinny homes.

“Vancouver has houses that are even narrower than this and quite livable. When you get that population and that cost of land, people have to think smaller. We’re just on that cusp here in Edmonton.”

But Kelly says the city also needs to go further in allowing more areas where similar developments can occur.

“City council has to be very brave and zone more neighbourhoods to accommodate this. Right now, it’s only allowed in RF3 zones, and that’s not in many neighbourhoods. There are a hundred mature neighbourhoods.”

Mayor Don Iveson, who cut the ribbons on the new homes Friday, is a vocal advocate of infill housing and likes the skinny home concept.

“They provide new housing, which many people are looking for, but in established areas, and it can be more affordable simply because the cost of the land is significantly less than on a full lot,” Iveson said.

He acknowledged concerns such as traffic and parking congestion, but said those can be looked at as signs of life in a neighbourhood.

“This puts living centrally within the reach of more families looking for new homes, which is very exciting and very important for Edmonton.”

Iveson said he would ultimately like to see more skinny homes allowed in more mature neighbourhoods.

“Having these examples built allows people to see that these can be very positive.”

© Copyright (c) The Edmonton Journal