Respected lawyer's thoughts on home inspections

Why home inspections aren't a waste of money

By Mark Weisleder | Fri May 20 2011

Moneyville.ca; Toronto Star

Almost every resale home purchase is conditional on the buyer being satisfied with the results of a home inspection.

But what does satisfied mean? When can a buyer back away and when are they just using the inspection as a convenient way to find a loophole when they get cold feet?

If the buyer decided not to do an inspection and then just cancelled the deal, they would likely lose their deposit and could probably be sued for breach of contract by the seller if they sold to anyone else for less money.

Inspection conditions are not an automatic option to terminate, as many buyers believe. A lot will depend on the exact wording of the condition language. It will help a buyer if it says that the buyer has to be satisfied with the inspection in their “sole and absolute discretion.” The buyer may have difficulties if they use a relative who is not qualified and who just says something like “This is not a good house.” Make sure you use a qualified home inspection firm. Check to make sure that they are registered with the Ontario Association of Home Inspectors.

Usually, a buyer will find an inspector or, if using an agent, the agent may suggest one. The buyer and inspector spend a few hours going through the house and after the tour make a decision about whether to go ahead based on what they’ve seen.

One of the main problems is that inspectors are limited in how much they can investigate. They are not allowed to look behind walls to see if there is evidence of leaks or mould. This is made worse because sellers may not disclose defects in their property, expecting the buyer to be bound by caveat emptor, or buyer beware, meaning too bad if you find out about problems after closing.

Sellers, on the other hand, are not permitted to see the buyer’s home inspection report, unless it says so in the condition. This can be serious for a seller. Let’s say the house sells subject to a home inspection condition. The buyer says “I am not satisfied” and cancels. Now new buyers suspect something must be wrong with the house and the seller has no way of knowing how to explain this.

In order to solve this problem for a seller, I recommend inserting a clause into every home inspection condition that if the buyer is not satisfied for any reason and cancels, they have to provide the seller with a copy of their inspection report within 24 hours. In this way the seller can explain the problem to a future buyer or, better still, just fix it.

Still, in some cases sellers are taking the position that the buyer was not acting in good faith when they cancelled the deal as a result of an unsatisfactory home inspection and are refusing to return the buyer’s deposit. Deposits cannot be returned to a buyer unless both the seller and buyer agree. This can cause a buyer difficulty as they will not have the necessary money to make an offer on another house while they fight over the deposit.

To avoid this, I recommend that buyers make two deposits when they buy their next re-sale home; one small deposit when the offer is accepted, and then a larger deposit once they are satisfied with the results of the home inspection condition. This way, if the buyer is not satisfied and the seller tries to withhold the deposit, you are only fighting over a smaller amount.

If buyers and sellers understand all their rights and obligations under the home inspection condition, there will hopefully be more disclosure of defects up front by the seller, so that the buyer can in good faith conduct a proper home inspection and close.

Mark Weisleder is a lawyer, author and speaker to the real estate industry. Contact him at mark@markweisleder.com

Are granite counters a solid choice?

Rewarding Experience
Here's a tough subject to attempt a discussion on.
Firstly, I must say I live in a 43-year-old house.
The PremiseIf you're planning on selling a 30-year-old house, do you get rewarded for your on-going improvements.
I'm not talking about shingles and a furnace -- all of which would be in their second generation by now.
I am referring to kitchens (with built-in microwave, new cabinets and high-end countertop), bathrooms (with jetted tub), carpeting, energy-efficient windows, light fixtures (ceiling fans can be expensive), breaker hydro box, plus modern amenities like central air, security and sprinkler systems, and extensive landscaping like interlocking brick and gardens with retaining walls.
The common wisdom today is that home buyers will see the upgrades and are willing to pay more for a home in move-in condition.
However, will the seller receive a return on investment (ROI) for all their efforts.
First and foremost, any significant improvement is meant to increase the owner's 'enjoyment' of a home. If you had gutted the kitchen, for example, and increase its functionality and modern amenities, three or four years before selling, you would have received a significant personal benefit from the renovation. The idea being, you would not spend over $5,000 on a renewal project, only to put the residence on the market.
The next term that would be considered is 'over-improving' a house. The best example of over-improving is an inground pool as conservative estimates are at $30,000 for a summer splash.
On the flip side, if you made only the minimum improvements in your ownership time, the pool of possible buyers would be reduced as many prospects would have to immediately consider a mortgage with 'purchase-plus-improvements'. In other words, obtaining a mortgage for an amount equal to the home's value because the property requires a new furnace, central air, and new shingles immediately. After the work has been completed, your house would most definitely be worth more than it was on closing day.
A home is an investment and a roof over your head.
The best consideration is to do the work that needs to be done. The best first impression is paint, including re-staining a back deck. Just last week I went through a 4-year-old house and already it need to be completely re-painted, in my opinion.
Granite countertops are a nice luxury, but will not pay you when you sell.
When it is time to sell, you know you've done the basics, and then your next tasks are to unclutter, weed the gardens, remove the cobwebs, scrub the floors and tub grout, and order a quick servicing of the furnace and a/c unit as inspectors really do look inside this appliance.
If you have any real estate questions, contact me at mschadenberg@rogers.com

Another big Toronto sale

Bidding war adds $605,000 premium By SYDNIA YU

From Friday's Globe and Mail
Published Friday, Jun. 24, 2011 9:53AM EDT
508 VESTA DR., TORONTO
ASKING PRICE $1,495,000
SELLING PRICE $2,100,000
TAXES $9,618 (2011)
DAYS ON THE MARKET: 7

LISTING AGENT Elli Davis, Royal LePage Real Estate Services Ltd.
The Action: On top of a busy open house one weekend, more than 50 parties arranged for a private visit of this historic Tudor residence in Forest Hill.
Priced for less than $1.5-million, a bidding war quickly erupted between a dozen buyers on the day offers were accepted. The offer accepted added $605,000 to the list price.
What They Got: This 50- by 144-foot property features landscaped gardens surrounding a brick and stone house well maintained with four bedrooms, four bathrooms and several public and private rooms with leaded glass windows and hardwood floors, plus an attic that could be finished for extra space.
For entertaining small or large groups, there is a fireside living room, a formal dining room, an eat-in kitchen, a family room and a sunroom with a rear walkout, plus a lower-level recreation room with a wet bar.
Residents and guests can retreat to the second floor where the bedrooms are located. The master bedroom has the convenience of a five-piece bathroom and walk-in closet.
Parking is available in the detached double garage or on the private driveway.
As for amenities, the house has easy access to shops and schools on Eglinton Avenue West, such as Forest Hill Collegiate, and is within close proximity to the Eglinton West subway station.
The Agent’s Take: "The lot size and location of the house really stimulated the activity," agent Elli Davis says. "It was a beautiful original Tudor home probably built in the thirties, and people just loved to retain the older characteristics and charm."

Relay For Life has arrived

The purpose of all marketing is this: 'When you think real estate, hopefully you think Mark Schadenberg.'
When community involvement is factored in, the idea is to assist a worthwhile local cause and know that your participation will be rewarded.
I've enjoyed working with the Relay For Life committee. The 12th annual event has arrived. Here's my final pre-event press release, which should appear in The Sentinel-Review as well.

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By Mark Schadenberg
With less than 48 hours to go before the 12-hour Relay For Life, organizers are wishing for good weather and are confident the 70 teams raising money for the Canadian Cancer Society will: 'celebrate . . remember . . . fight back'.
Led by co-chairs Kim Whitehead and Nancy Springstead, the steering committee is prepared for the event's 12th year at College Avenue Secondary School, Friday night to Saturday morning at 7 a.m.
Dazzling Dozens is the theme. Opening ceremonies are at 7 p.m. and includes the Survivors' victory lap. Participants involved in only the survivor's lap can register as early as 5 p.m.
Luminaries will surround the track by 10 p.m. -- lighted paper bags to pay tribute to those who died of cancer and to recognize those who continue their battle. The luminaries can still be purchased on the day of the event at $5 apiece.
One committee member new to Relay For Life is current fundraising coordinator Tracy Piett of the Oxford County Unit.
"The anticipation of watching Relay For Life come to life is astounding," says Piett. "It truly is a community event and we at the Canadian Cancer Society Oxford County Unit can not be more gracious to the committee members who commit their time in organizing the event, the volunteers giving their time, the sponsors and donors throughout Oxford County who support Relay For Life, and of course the participants who spend their time and energy raising money to support the Canadian Cancer Society."
Piett is quick to remind that Relay is hosted in Tillsonburg (last weekend), and upcoming in Ingersoll at IDCI on June 24-25, and many centres from coast-to-coast.
"This year, more than 70,000 people in 112 communities across Ontario will come together to raise more than $19 million (projected) and to work toward the Canadian Cancer Society’s vision of creating a world where no Canadian fears cancer," says Piett.
Relay includes many sub-committees -- logistics, team recruiting, volunteers, entertainment, food, promotions and sponsorship.
The benefit also includes a silent auction (4 - 11 p.m.) in the food tent area.
Inside CASS, massage therapy (nominal fee) and yoga will be available. From 8 - 10 p.m., there will be medically-trained staff available for breast examinations.
After the opening ceremony, entertainment will continue with music performances by Brompton Park, Gone On Arrival, Reed Curtis and Steve Yeager, plus an appearance by Tim McDonald who wrote a Relay anthem called Walk The Night.
It's an all-night non-competitive walking event, so many teams have created fun ways to pass the time including bingo, a scavenger hunt and a game the program calls Alphabet Soup.
With a realization that Relay is also designed for families with children, there is also face painting, crafts, a fish pond game, bubbles and a popcorn machine.
With as many as 1,000 participants (including all volunteers), there are many food sponsors, including Swiss Chalet, Tim Hortons and New Orleans Pizza. Breakfast is also served at 5:30 a.m.
Shoppers Drug Mart and the Woodstock Camera Club have again combined forces to supply team photos.
Parking crew volunteers will direct cars of team members to Oliver Stephens school, but a shuttle is available. Parking at CASS is available, but only for the cancer survivors and those with disabilities.
You can volunteer At this point, Relay For Life is still accepting volunteers for assistance in luminaries starting late morning Friday, for set up and parking by late afternoon, and to cleanup on Saturday morning. Call the Cancer Society at 537-5592 if you have time available.
"I volunteered for Relay For Life several years ago to do my part and give back to the community," says Whitehead. "I chose the Cancer Society because it's hard to find someone whose life hasn't been affected by cancer.
"Relay is a wonderful event to remember, celebrate and to fight back against cancer," Whitehead continued. "I am very glad I chose this event to volunteer at."

John Nadalin is an accomplished video producer

As years go by, one can observe how people they knew as teenagers eventually graduate university and accomplish great things.
John Nadalin of Woodstock (I know, he really grew up just outside Sweaburg) is such an example. As John was a hockey goalie, I coached him on travel minor hockey teams in Woodstock. I was, of course, the pylon at practice that bantam hockey players could duck around quite easily in puck-control drills. Nadalin didn't participate in those relays as he was quite a good goalie.
Later, after graduating from College Ave Secondary School, he attended Ryerson. Today, he is likely among the top five in Canada for music video production, and seems to finally be getting the recognition he has earned.
Parents Bill and Marg must be very proud.
Here's a story from the Woodstock Sentinel-Review:

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Woodstock native nominated for MMVA
By Tara Bowie Sentinel-Review
TORONTO – He's gone from working with big names in the music business to running one of the biggest music video production companies in the Greater Toronto Area.
Woodstock native John Nadalin started production house The NE Inc. with his partner RT! in 2003. And in a short eight-year span, the house has reached a level of skill that netted them 17 nominations at this year's MuchMusic Video Awards.
"As far as the MMVAs go, we completely dominate. There's three or four companies in Toronto most relevant in the music video business, and we're one of them," Nadalin said during a telephone interview from his home in Toronto. "I think you never want to assume that you're going to win anything.
"If we were to get one or two of the awards, we'd be happy. We've had a great year and worked with great artists."
This year has been such a great year for the company that, in some categories, it will be competing against itself to earn the MuchMusic Video Award on Sunday, June 19.
Major nominations for The NE Inc. include video of the year, director of the year, pop video of the year and fan favourite video of the year.
The heavy-hitter in all those categories this year is Shawn Desman's video for Electric/Night Like This, which RT! directed and Nadalin produced.
"In my career, I've worked with some pretty big people. This year was more a pop music year with Shawn Desman and Danny Fernandes. I've really run the gamut with different artists over the years – rock stuff, hip hop, pop stuff. It's really what the kids are leaning to that decides it," he said.
During previous years, the 34-year-old has worked with Three Days Grace, Simple Plan, K'naan, Kardinal Offishall and Sarah Harmer, to name a few.
Nadalin, a College Avenue Secondary School grad, explained the company's success is based on teamwork In house, there are six steady directors who work projects, and several freelance directors that use the production studios and resources from time to time. Nadalin's role as executive producer is to make sure everything goes smoothly to ensure the video's success.
"Everything you can think of – or not think of – when you are looking at a music video, we do," Nadalin said.
One of his main responsibilities is to be on top of what's hot in the industry. He's constantly talking to record companies, radio contacts and going to live shows to maintain relationships and build new ones for future projects. He acts as a liaison between the artist and the director to communicate a vision for the video and then he lines up all the details.
"On the production side, you go out and look for locations, hire all crew and the wardrobe department. We do all the logistical elements of bringing the director's creative vision into reality," he said.
Nadalin has built an array of contacts in the music industry, which allows the company to do a fairly high volume of projects. Usually the company is producing at least one project a week, whether it be a music video, short film or a commercial.
"We started in music videos because you flip them over quite quickly. From start to finish, you can see a project done in three to four weeks. In television and film, it could be months or years before you see the fruits of your labour come to fruition," he said.
Although the company's bread and butter is in music videos at the moment, the future plans are to move more into the commercials and future films arena.
"It's (music videos) a medium that let's you play with a lot of cool toys. We're using it to build a reputation and a springboard to launch into film and commercials," he said.
The NE Inc. has produced several commercials over the past few years, including a Waste Reduction Week campaign where Nadalin worked with Oscar the Grouch from Sesame Street.
"I don't think a small company like we started could survive in very many countries," he said. "If you're serious about your career as an artist, management company, whatever, you can make a pretty go on it if you're serious and of course have some talent."

What is spam and what is a newsletter?

Not All Email Is The Same
Federal laws are passed by our elected and unelected (the Senate) government, and are certainly intended to paint with a very large brush.
Our federal government passed in December of last year a new law (C-28) which in its intent is a very good idea. Ottawa wants to stop spam, so it dutifully created and passed with royal assent by our Governor-General David Johnston, the Fighting Internet and Wireless Spam (FISA) bill.
I would lead the list of those with the pet peeve about receiving unwanted spam – marketing for everything from medication to concert tickets and from the possibility of inheriting a large sum of money to an invitation to real estate seminars I have no intention of attending. Email arriving in a computer that I did not request and certainly don’t need.
Actually, up until late last year, Canada was the only G8 country not having a formal strict anti-spam law.
At the end of the day, there is a large difference, in my opinion, between issuing fines to spam artists who send out thousands of non-requested emails, and comparing them to a local Realtor you know.
At the same time, I don’t mind saying that a local well-established travel agency sends me updates on travel packages or a planned open house with a speaker discussing a European vacation. I never requested this information, but I don't mind receiving it either. I believe, and I think you would agree, that if you receive one such note a month that’s fine. However, if this type of marketing – even from someone you know -- ever became continuous and annoying, and if you wanted to opt-out of receiving it, you should be able to send a quick note to that person/company indicating the same.
If, for example, you no longer want to receive my newsletter, which I compose maybe 9 or 10 times a year, that’s your option.
The new federal legislation, however, turns the tables on average people operating a small business from contacting their friends, relatives and acquaintances (In real estate marketing we call it a ‘sphere of infleunce’).
There are a couple government web links noted at the end of this commentary, but the Industry Canada website says: "The proposed FISA is intended to deter the most damaging and deceptive forms of spam, such as identity theft, phishing and spyware, from occurring in Canada and to help drive spammers out of Canada."
Industry Canada continues, however, in its FAQ section: I'm a legitimate business owner who uses bulk email to reach my customers. How will I be affected by these new anti-spam measures? Legitimate businesses that use email to market their products to Canadians should not be negatively impacted by this legislation. The regime to allow for email marketing is based on a consumer opt-in approach, which stipulates that businesses must get consent prior to sending commercial email or have a pre-existing business relationship with a consumer.
By filling out on-line requests, I knowingly receive and have requested therefore, thus granting permission to receive, information from local car dealerships, restaurants and even hardware stores. I do not give out my email contact list, and I would expect these businesses would not either. Any consumer can opt-in to any legitimate marketing plan on Facebook, Twitter or many other destinations. Every time you visit a fast food outlet, the back of your receipt asks for comments and when you go to the internet you must supply your email address to possibly win a prize, such as a gift card for participating in their survey. Does this in-turn mean you have now opted in to receive junk email from this company? No. They also smartly ask you to 'check' a small box if you want to receive promotional messages such as coupons or invitation to specials.
This very newsletter, by the way, will appear where everyone and anyone can see it:

It would appear that before this law comes into effect, I may have to ask you to opt-in. When that time arrives, please opt-in as I’m a self-employed full-time dedicated and knowledgeable Realtor who works only on commission. Woodstock is a great place to live. When talking real estate, I always say my job is to sell houses (bricks and mortar, lumber and carpet, shingles and windows), but I really sell homes, neighbourhoods, communities and our county.
Interesting Links For More Details:
http://www.ic.gc.ca/eic/site/ecic-ceac.nsf/eng/gv00521.html
http://www.ic.gc.ca/eic/site/ic1.nsf/eng/05596.html

www.markroyallepage.blogspot.com.

Return on shopping investment

I saw a column online in the Toronto Star that I had to pass along.
Often, people will shop at a certain location to receive points (HBC or Hoppers Rug Art) or instant coupons. For as long as I remember, I had gathered quite a stack of Canadian Tire bills in my car's ashtray. I could redeem the paper for the salt I needed for my water softener or driveway in winter, or would purchase grass seed for my lawn. You get the idea. Today, however, you have to spend significant dollars at that retailer to receive a modest dividend of paper money.
When my brother ran a business a few years ago, he would (quietly) accept this coupon currency, because like everyone it was almost like real money.
It was a good lure to visit that store.
Anyway, here's the Toronto Star story, which is both a history of the CTire money and reasoning about its reduction in return.
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Ellen Roseman column: What's happened to Canadian Tire money?By Ellen Roseman | Sun Jun 5 2011
TORONTO - When I received only 50 cents in Canadian Tire money on a $110 purchase (before tax), I was shocked to see how little of it I got.
Canadian Tire money was introduced in 1958 to lure customers into the company’s first gas bar in Toronto. It spread to the stores in 1961.
The first paper bills were very generous, giving customers a discount of up to 5 per cent on future purchases. This fell to 3 per cent in the mid-1990s, when Canadian Tire coupons were offered to all their stores in the country.
Today, customers who have a Canadian Tire credit card get a better deal than those who pay with cash or debit cards.
"Canadian Tire Money on our Options MasterCard is realizing increased growth and redemption," says spokeswoman Liz Hamilton.
"Combined, the Canadian Tire Money program (paper and plastic) handed out more than $100 million to customers in the past year, with a 95+ per cent redemption rate. We don’t break out the numbers."
Credit cards are a big money maker for retail chains. Cash is out of style for a number of reasons.
Retailers want to track your purchases, which they can do with credit cards. They know you’re more impulsive and less price-conscious when using credit cards than when using cash.
Also, they can give incentives for higher spending with tiered credit cards, whose rebates depend on your annual purchases.
Canadian Tire’s Cash Advantage MasterCard, for example, offers a rebate of 0.25 per cent on the first $1,500 of eligible purchases, reaching 1.5 per cent on spending above $24,000 a year.
You can double the rate — up to 3 per cent cash back — if you use the card at Canadian Tire stores, gas bars and Mark’s Work Wearhouse stores.
Most Canadian retailers have introduced Visa or MasterCards in addition to, or instead of, their house-brand credit cards.
They promote these new cards heavily, often using salespeople in the stores to encourage customers to sign up.
"We get a lot of phone calls about credit card accounts opened by a marketing representative at our stores," says a person who works for Canadian Tire Financial Services.
"These marketing reps promise all kinds of things, such as gift certificates. They even go so far as to say they’re only doing a survey and the unsuspecting people won’t receive a card.
"They’re deceiving customers and management doesn’t care. Management says they bring a lot of new cardholders to Canadian Tire."
I heard a similar complaint from a Shoppers Drug Mart customer, who had been accosted at her local store.
"I was approached by a young woman who asked me if I had one of their Optimum reward cards. When I said yes, she asked if I’d like to have my points doubled every time I used the card.
"As her questions grew more personal and intrusive, I asked if this was a MasterCard application. She said no. But the store manager confirmed that it was a Master Card application."
Lisa Gibson, a Shoppers Drug Mart spokeswoman, apologized and sent a $50 gift card as a goodwill gesture.
"The representative that approached you is employed with one of our vendor partners," she told the customer. "We are selective about who we allow in our stores and have policies and guidelines in place that they must follow.
"We contacted the vendor and they responded immediately. They have a zero tolerance policy for this type of behaviour."
The sales representative was fired afterward. She called the customer and then called me, insisting she had followed the rules.
Gibson apologized to both of us: "The vendor has called the sales rep and she has agreed to stop any further activity."
My advice: Resist the pressure to sign up for Visa and MasterCard products while shopping at chain stores.
You can’t ask questions and read the fine print on credit applications when ambushed by an outside marketing representative. Just say no.
Ellen Rosemaneroseman@thestar.ca. writes about personal finance and consumer issues. You can reach her at