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Real Estate Law

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Is a Mortgage Refinance Right for You?

Mortgage Refinance

[vc_row triangle_shape="no"][vc_column][vc_single_image image="12070" img_size="full"][vc_empty_space height="20px"][/vc_column][/vc_row][vc_row triangle_shape="no"][vc_column][vc_column_text]Refinancing your mortgage can have many benefits, including debt consolidation, locking in a lower interest rate, and much more. However, you should never rush into the refinance process without considering all of your options with the help of an experienced mortgage lawyer. At Nanda & Associates, our lawyers provide advice and representation to residential homeowners to ensure they make the right decision for their specific situation. The following are some reasons why a mortgage refinance may not be the best option at the current time. You Plan to Move Soon There are costs and fees involved with...

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Have You Signed a Leaseback Purchase Agreement on a Condo? You Might Owe the CRA Thousands of Dollars!

Condominium Building

Buying a condo unit with the intent to rent it out seems like a wise decision and many condo buyers opt for this. However, if you are among those individuals who signed a leaseback agreement with a company or directly with the builders, then you might now be owing thousands of dollars in taxes, according to the Canada Revenue Agency (CRA). In Canada, builders are selling their condo units to buyers, while also giving them an offer for a “guaranteed rental” incentive. Becoming a condo owner with a certain guaranteed amount for two to 10 years, as per the agreement, is...

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Pre-Build Condo Buyers Lose Legal Battle Against Developer

Buyers of the recently canceled Cosmos condos have lost their legal battle with the developer. They filed a lawsuit claiming compensation after the two-year-old project was scrapped. Real estate lawyers said that this case would set up a discouraging legal precedent for future condo buyers. The Condo Case Facts In this case, Liberty Developments launched the Cosmos condo project close to the Vaughan Metropolitan Centre about two years back. They accepted bookings and deposits from buyers for condo units and scrapped the project this year after an inability to secure satisfactory construction financing. Two years later, buyers were sent refunds and notice...

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Buyer Beware – Uncovering the Taxes arising from Non-Residency of the Property Seller

Introduction Did you know that the Canadian tax code has a rule in which the property purchaser can be held responsible for paying the capital gains tax on the transaction on behalf of the non-resident seller? You will need to take precautions if you are dealing with a non-resident seller of a house or condo if you don’t want to be responsible for paying someone else’s capital gains tax. Let’s review the facts of the recent case, in which this matter was highlighted. All Canadian residents have to pay tax on their worldwide income, while non-residents pay Canadian taxes, only when they earn...

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Lawyer Fees When Buying a House

Buying a house or condo is an exciting, but complicated, process that requires the help of an experienced lawyer. Hiring a lawyer is a requirement in the final stages of home buying, after a deal has been made. But hiring a lawyer early on in the process makes the whole thing easier and prepares you for any unforeseen circumstances. A lawyer will ensure that you have completed all the required paperwork, made all the required payments, and that everything is in order for your new purchase. That being said, because buying a home is one of the biggest and most...

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Real Estate: Deposit Protection Basics

Buying a home is an exciting, but sometimes very confusing and stressful, time in our lives. There’s a lot to consider when you are making this type of serious commitment, and just as much to worry about. This is especially true in terms of financing and payments. Not only are there down payments and mortgages to consider, there’s also deposits. Below we’ll introduce you to deposits and share some information on protection programs to give you some peace of mind during this exciting process. What is a Deposit? Similar to a down payment, a deposit is a payment that shows the seller...

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Legal Implications when you back out of a Real Estate Deal

In a recent landmark case, a GTA couple was fined $470,000.00 in damages for backing out of a real estate deal to purchase a Stouffville house. This decision outlines the harshness of legal consequences when parties renege on a real estate deal. With houses in the GTA reaching record-breaking prices, the real estate market has come under further stress and scrutiny due to a combination of new federal stress tests, mortgage qualification criteria, foreign homebuyers’ tax and rising interest rates. What happened in our case? David and Lea, the purchasers, made an offer of $2.25 million on a Stouffville property...

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Ottawa delays campaign promise over housing market fears

In Toronto and the GTA, real estate lawyers and their clients have grappled with climbing housing prices for several years. Both the federal and provincial governments have taken steps to cool Southern Ontario’s housing market, and now Ottawa appears ready to back away from a campaign pledge that it believes would exacerbate the problem. During the 2015 federal election campaign, Justin Trudeau’s Liberal Party pledged to modernize and expand the Home Buyers’ Plan, which allows Canadians to borrow money from their registered retirement saving plans (RRSPs) to help them buy a home. Today, the Home Buyers’ Plan permits first-time home buyers...

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The federal government announces revisions to tax plan

Earlier this month, we covered the Liberal Party of Canada’s new tax plan and outlined how the proposed changes could affect entrepreneurs and Ontario business lawyers. We also noted that Finance Minister Bill Morneau seemed open to revising the plan amid an uproar from business owners who feared their tax burdens would increase. In the weeks following that post, the Liberals stayed true to Morneau’s word and developed several revisions to the plan. Here’s what you need to know: Small business tax cut On Monday, October 16, Trudeau and Morneau appeared at a news conference in Stouffville, Ontario to announce revisions aimed at...

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New mortgage rules prompt concern from housing experts, real estate lawyers

On October 17, the Office of the Superintendent of Financial Institutions (OFSI), Canada’s top banking regulator, released new mortgage industry guidelines with far-reaching implications for prospective homebuyers, real estate lawyers, and the Canadian housing industry. Under the new rules, mortgage providers will be required to “stress test” all borrowers of uninsured loans, an expansion of a 2016 policy that applied only to insured mortgage applications or buyers who made a down payment of less than 20% towards the purchase of their property. The regulations are intended to cool red-hot housing markets in Toronto and Vancouver, and protect both banks and consumers...

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