When does a real estate deal close when the deed is registered, when the
keys and money change hands or when the seller moves out of the house?

Virtually all agreements of purchase and sale for homes or condominiums in
Ontario are prepared on standard forms published by the Ontario Real Estate
Association (OREA). Unfortunately, those forms have a great number of
shortcomings which do not promote the interests of the public who rely on real
estate agents for protection.

It s hard to think of any consumer purchase contract where the price on the
front page is not the full purchase price, where additional charges are
unlimited, and where the seller has no legal obligation to make full disclosure
of extra charges to the buyer at the time of sale.

In many parts of the City of Toronto, houses were built so
close together that when one owner wanted to repair or improve one side of his
or her house, it was often necessary to access a neighbour’s property.

Mortgage fraud may no longer be on the front pages, but the fallout from hundreds of past fraud cases is still wending its way through Ontario courts. The most recent decision in this area of law...

When a lawyer is presented with an unconditional but obviously defective
agreement of purchase and sale by a client, does he or she have an obligation to
try to negotiate an improvement to its terms?

Before closing the purchase of their home, Pierre Marcoux and Caroline Bougie
discovered the City of Toronto building department had an open file on the
house. They wanted the seller, Darlene Remlinger, to rectify the situation by
having the city’s file closed.

Bob Aaron bob@aaron.ca A discipline decision by the Real Estate Council of Ontario (RECO) earlier this year has established what may be a new disclosure standard for real estate agents dealing with...

Back in April, 2006, Walter and Shelley Cotton signed an agreement to buy their dream home in Brantford. After closing, the house turned out to be the worst nightmare they could have imagined,...

Emma and Henry (not their real names) live in a modest three-bedroom detached
home near Bathurst and Lawrence. A few weeks ago, their laundry room experienced
a minor sewage backup caused by a cracked sewage pipe under the front lawn.

Is the Ontario government about to auction off exclusive access to our land
registration system to the highest bidder? Is it in the public interest to have
a private monopoly control our land registration system?

Is a religious object attached to the outside of a house or condominium a
fixture, which remains with the home on a sale, or a chattel, which can be
removed by a departing owner?

The sad tale of the Glenlake Ave. driveway featured in the Star late last month has focussed public attention on the difference between the Land Registry and the Land Titles systems of property...

Down the street from my house, one of my neighbours has an old bathtub
filled with earth sitting on the front lawn. In season, it contains flowering
plants and is quite attractive. During the rest of the year, it just looks
like an old bathtub.

Does a mortgage lender have the right to add the outstanding balance on your Visa card to the amount outstanding on your mortgage? That was the issue in a 2009 court case involving Toronto law firm...

It has become common practice in Toronto for some developers to require
condominium purchasers in each building to contribute to the costs of guest
suites, superintendent’s units, carwash bays, car share units and similar
amenities.

A decision of the British Columbia Human Rights Tribunal late last year
could have an enormous effect on owners and occupants of condominiums and rental
apartments across Canada in the coming months.

CBC MARKETPLACE - ROAD TO RICH DAD - Erica Johnson (guest appearance: Bob Aaron)

In 2005, Stuart signed an agreement to purchase a condominium unit
for $326,900 in an upscale 20-storey project not far from the Annex area.

A recent decision of the Ontario Court of Appeal has come down strongly in favour of the rights of individual condominium owners. The case deals with Wentworth Condominium Corp. 198, a residential...

I’ve always found it strange that the organized real estate community in
Ontario is still highly concerned about urea formaldehyde foam insulation (UFFI)
in houses, years after it was proved that it carries no health risks, and yet
radon gas and other environmental contaminants which exist in many homes and
can be fatal are hardly ever mentioned in residential purchase agreements.

In a precedent-setting move, a recently discovered decision of the
provincial Assessment Review Board (ARB) has cut a homeowner’s assessment in
half because the house is located near a noisy hydro substation. The hydro plant
serves a nearby wind farm producing “clean” electricity.

The problems caused by the strike of civic workers in Toronto last summer
are now coming home to roost. Last June, John purchased a newly constructed
$600,000 freehold townhouse in downtown Toronto.

Last week’s column told the story of the illegal chimney on a north Toronto
bungalow owned by Ruta Benjamin and her husband.

Ruta Benjamin and her husband were sitting in their house, minding their
own business, when they suddenly found themselves in violation of regulations
of the Technical Standards and Safety Authority without doing anything wrong.

With less than a month to go, the Ontario court system is in for one of its
biggest shake-ups in recent memory.

Whatever money Pauline Rudling saved by using a will kit instead of a lawyer to prepare her last will and testament was spent hundreds of times over on legal fees so that a judge could figure out...

The home inspection industry in Canada may never be the same again following the decision of the British Columbia Supreme Court last week in the case of Salgado v. Toth*. Back in September 2006,...

There's a common misconception that the best way to avoid Ontario's 1.5 per cent probate fees on the value of an estate is to place the family home and other assets into joint ownership with a child...

As many as 244 purchasers received a nasty surprise at the end of
September when they got hit with thousands of dollars in “fictitious” charges on
final closing of their new condominium units.

Can a buyer refuse to close the purchase of a new home if there are
deficiencies in construction, forgotten or incomplete items, or unauthorized
changes to the design, layout or materials?

The Great SPIS Myth

With the proclamation of the Green Energy Act, 2009, Ontario has
moved one step closer to requiring mandatory energy audits on the sale of
residential properties.

Just how much privacy can a person expect in the comfort of
his or her own home, free from any government intrusion? That was the
question considered in August by a three-judge panel of the Alberta
Court of Appeal. The case involved the home of Daniel James Gomboc in
southwest Calgary.

Terry is a 23-year-old public servant, having recently graduated with a
bachelor of commerce degree.

One of the most controversial issues facing the real estate community is
the use of the Seller Property Information Statement (SPIS), which is often
provided by sellers to buyers to disclose various issues about a house being
offered for sale.

Power of entry is subject to a number of conditions and permit fees are costly A Star reader recently emailed me to say he was thinking of purchasing a property which is under construction but the...

The vast majority of residential real estate transactions close as scheduled, without problems or disputes. The chances of any given real estate deal resulting in litigation involving the buyers,...

In the course of my real estate law practice in Toronto, I often review
condominium status certificates for purchasers. Usually this is a fairly routine
function, where the lawyer looks for arrears in common expense payments,
underfunded reserve funds, litigation by or against the condominium corporation,
special assessments and similar items which could impact on the purchaser or her
bank account.

I was reviewing an offer to purchase a Toronto house last week and
was surprised to see a condition that I had never seen before in an offer on a
city home.

Back in the spring of 2004, Timothy and Cherese Scherbak signed a listing agreement to sell their property on Boland Ave. in Sudbury, using the services of Wendy Weddell and Re/Max Sudbury Inc. The...

A decision released by the Supreme Court of Canada last month raises the interesting question of how much privacy an individual may expect with respect to personal photographs taken inside his or...

Some roads named in a person’s honour are well thought out; other choices come into
question

Lenders need to have all pertinent information to prevent
mortgage fraud allegations

Bob Aaron bob@aaron.ca Melanie came to her lawyer's office in tears. Two years earlier she had received $5,000 from a "friend" to allow her name to be used on the purchase of a...

Bob Aaron bob@aaron.ca Late last month, Toronto became the first city in North America to adopt a bylaw requiring the construction of green roofs on new developments. It comes into force Jan. 31,...

Bob Aaron bob@aaron.ca The issue of toxic Chinese drywall may well become the biggest environmental crisis to hit North American homeowners and builders in decades. The defective Chinese drywall...

Sonia James learned the hard way that it’s not always a good idea to sue
your lawyer and blame your misfortunes on him or her.

Bob Aaron bob@aaron.ca One of the biggest mysteries of the local real estate market is the legality of basement apartments – also known as granny flats, in-law suites, accessory apartments or...

Bob Aaron bob@aaron.ca Barbara and Michael learned the hard way that pre-construction deposits paid to builders of condominium units are only protected by the Tarion Warranty Corp. up to a maximum...

Injunction granted after protesters stall
construction at Hagersville home-building site

Bob Aaron bob@aaron.ca The Canadian condominium industry and the real estate bar lost one of its towering giants last weekend with the passing of Mark Freedman, a senior partner at Harris, Sheaffer...

Bob Aaron bob@aaron.ca Last month I reviewed an offer to purchase a waterfront cottage near Kirkfield, Ont. The property was listed by a real estate agent in the Kawarthas and the offer was prepared...

Bob Aaron bob@aaron.ca I learned of a new term in the housing industry last week. "White box" refers to a newly constructed house or condominium unit that is built to the minimum standards...

Bob Aaron bob@aaron.ca Last week I had the opportunity to review a condominium builder purchase agreement with a couple of clients. They had been told in the sales office what they thought was the...

Bob Aaron bob@aaron.ca The Ontario Court of Appeal has dismissed an appeal by a mother who promised to give her son two family cottages if he renovated them, but then changed her mind. The story...

Christopher and Lindsay Taggart were dismayed to discover that the lot underneath their newly constructed home was 1,000 square feet smaller than it was represented to be. The home is located in a...

Bob Aaron bob@aaron.ca What happens if you buy a house and it turns out to be more than 18 per cent smaller than the advertised size? That's what happened in the summer of 2003 to Bruce and...

Bob Aaron bob@aaron.ca A new American law set to take effect June 1, 2009 will require anyone selling a residential property in Cook County, Ill. which includes Chicago to provide a thumbprint or...

Bob Aaron bob@aaron.ca Over the last 18 months, approximately 700 older homes in Ontario have been insulated with a product containing urea formaldehyde foam insulation, or UFFI. The problem is that...

Bob Aaron bob@aaron.ca As part of its green energy legislation, the McGuinty government is poised to shred the right to privacy that all citizens enjoy in their lawyer's offices solicitor-client...

Imposing mandatory energy reports will further depress prices and sales volumes

Bob Aaron bob@aaron.ca The Ontario Court of Appeal has written what may well be the final chapter in what I call The Case of the $100,000 Fence. The case involved a dispute over a strip of land...

CBC MARKETPLACE - NEW HOME NIGHTMARES - Wendy Mesley (with Mike Holmes and Bob Aaron)

Bob Aaron bob@aaron.ca The already battered real estate industry had reason for concern when Premier Dalton McGuinty said last month that "we owe it to ourselves to take a good, long hard...

Bob Aaron bob@aaron.ca British Columbia has become the first province in Canada to license home inspectors in order to protect buyers by ensuring qualified inspections. The B.C. model could well...

Bob Aaron bob@aaron.ca Earlier this month, the Supreme Court of Canada issued a decisive ruling that clarifies once and for all that the interest paid on a mortgage taken out to purchase a principal...

Bob Aaron bob@aaron.ca Is a real estate agent responsible for accurately advertising the lot size? What happens if he or she gets it wrong? Those were the questions facing clients of mine recently....

Bob Aaron bob@aaron.ca A territorial judge in the Yukon has told the local real estate industry to take a hard look at one of its standard form documents. His comments were made in the context of a...

Judge rules that deck should have been inspected at the end of construction, not earlier

Bob Aaron bob@aaron.ca December 27, 2008 Consumer protection common theme in 2008 When it comes to consumer issues, my goal in this column is to educate, protect, and occasionally, entertain. Over the past year, I emphasized how important it is to have a lawyer’s input in a purchase or sale transaction as early as possible […]

Bob Aaron bob@aaron.ca December 20, 2008 Court is an expensive way to deal with a noise complaint issue A decision of the Superior Court of Justice in Toronto earlier this year clarifies the huge financial risks a condominium owner assumes if he or she is found to be in breach of the rules of the […]

Bob Aaron bob@aaron.ca December 13, 2008 In litigation cases, often only the lawyers win In 1997, James and Barbara Dinsmore bought a new townhouse in Windsor for $177,000 from Masterpiece Homes. On taking possession, they noticed dampness on the basement floor, which raised concerns about potential drainage problems. After investigation, the builder acknowledged that the […]

Bob Aaron bob@aaron.ca December 13, 2008 Star columnist appointed to Tarion board Long-time critic will serve three-year term Gail Swainson Real Estate Reporter Lawyer and Toronto Star columnist Bob Aaron has been appointed to the board of Tarion, Ontario’s new home warranty program. "I’ve personally known Bob for 30 years and he has a long […]

Bob Aaron bob@aaron.ca December 6, 2008 Buyer gets frosty welcome A recent decision of the Small Claims Court in Winnipeg illustrates whether the buyer or seller is responsible for damage to a home, which is discovered on closing. Hazem Alzawawy was interested in buying a small house in Winnipeg. He found a tiny 612-square-foot, one-bedroom […]

Bob Aaron bob@aaron.ca November 29, 2008 Fraudster’s house ‘sale’ ends up costing bank The fallout from mortgage fraud cases in recent years continues to occupy the attention of lawyers, judges and the innocent parties involved. Back in 2006, Paul Reviczky rented out a house he owned on Sheppard Ave. W. to a person who turned […]

Bob Aaron bob@aaron.ca November 22, 2008 Lawyers may kill deals not in client’s best interest From time to time, lawyers get accused by real estate agents of being “deal killers.” I was reminded of this recently in an email from Paula Riopelle, a real estate lawyer in Orleans, Ont. She was responding to my Nov. […]

Bob Aaron bob@aaron.ca November 15, 2008 Tarion softens approach on vendors who sell newly built homes Tarion Warranty Corporation, which provides new home warranty coverage to most Ontario houses and condominiums, has amended its registration requirements for purchasers who resell (or “flip”) their homes without moving in. The issue was first publicized in April when […]

Bob Aaron bob@aaron.ca November 8, 2008 Known dangerous defects must be disclosed by vendor Does the doctrine of “buyer beware” allow a seller to conceal the mere possibility that there is a potentially dangerous condition in a house? That was the issue in a case heard earlier this year in Edmonton. In April 2005, George […]

Bob Aaron bob@aaron.ca November 1, 2008 Agents should never brush off the need for a survey Nathan Vlahos and his wife are about to become first-time homebuyers. They are looking for a home between Richmond Hill and Newmarket and have selected a local real estate agent to help in their search. Vlahos describes himself as […]

Bob Aaron bob@aaron.ca October 25, 2008 When it comes to property’s paranormal history, it’s buyer beware In the real estate field, when the value of a house is, or could be, affected by a history of murder, suicide, ghosts, hauntings or other unexplained happenings, it is said to be stigmatized. This may occur when the […]

Bob Aaron bob@aaron.ca October 18, 2008 Nail down right-of-access before purchase A decision of the Superior Court of Ontario last month was a powerful reminder that real estate disputes can become very costly if they ever reach a courtroom. Millstone Consulting Services Inc. is a corporation owned by Paula and Vico Von Stedingk. In 2002, […]

Bob Aaron bob@aaron.ca October 11, 2008 Health card acceptable for voting but not for mortgage   Why is an Ontario photo health card not a valid form of identification for purposes of a real estate transaction, but it’s perfectly acceptable for the federal election next week? Whenever clients sign mortgage documents with their real estate […]

Bob Aaron bob@aaron.ca October 4, 2008 Always review purchase agreements with a lawyer A recent decision of the Superior Court of Justice highlights the risks of a buyer failing to close a transaction to buy a new home or condominium from a builder. Back in March 2003, Siavash Valizadeh signed an agreement to buy a […]

Bob Aaron bob@aaron.ca September 27, 2008 Brother messes up with email scam Back in 1998, brothers Faheem, Shaun and Narool Samad decided to purchase a house in Toronto for the three of them and their parents to occupy. At the time, they signed an agreement that set out the terms of the ownership, use, occupation […]

Bob Aaron bob@aaron.ca September 20, 2008 Not a good idea to interfere with right-of-way Grant and Lisa Hall were next-door neighbours to Loraine Wiltshire in north Toronto. The Hall property is west of the Wiltshire property, and both are registered under the Land Titles Act. There is a shared walkway two feet 10 inches wide […]

Bob Aaron bob@aaron.ca September 13, 2008 Oil storage tank leak a cautionary tale A scary tale of an oil leak in an Ottawa-area home provides a valuable lesson for homeowners whose homes are heated by oil. In early 2006, an exterior oil storage tank next to the residence released approximately 900 litres of fuel oil […]

Bob Aaron bob@aaron.ca September 6, 2008 Bylaw sinks pirate ship playhouse After architect Andrew Dewberry and author Jayne Seagrave bought their house in Vancouver three years ago, they decided to build a tree fort for their two young sons. In September 2006, the fort was constructed in a tree located a few feet inside the […]

Bob Aaron bob@aaron.ca August 30, 2008 Foreclosure tale is coyote ugly Ronald and Ann Bonnar owned a house in Cape Breton, N.S. The house had two mortgages registered against it a first to Royal Bank of Canada, and a second in favour of Canada Trust Company as trustees for the owners of various registered retirement […]

Bob Aaron bob@aaron.ca August 23, 2008 Presence of asbestos kills home purchase Carlos Lameiro fell in love with a three-bedroom bungalow, near Dixon Rd. and Kipling Ave. in Etobicoke. It has a finished basement with a separate entrance, air conditioning, two kitchens and a great location. Unfortunately, it came with a problem no one knew […]

Bob Aaron bob@aaron.ca August 16, 2008 Mortgage fraud scheme manipulated ‘puppet’ purchasers Norman Ave. is a two-block long street near St. Clair Ave. W., and Lansdowne Ave. Number 16A is a small row house that recently became the subject of an apparent mortgage fraud case in Ontario Superior Court. A title search of the property […]

Bob Aaron bob@aaron.ca August 9, 2008 Putting oil in wrong tank adds fuel to this warning A decision of the Ontario Superior Court earlier this year provides a valuable lesson to property owners whose homes were once heated with fuel oil. Back in 1979, Mary and Francis Bingley decided to replace their old oil furnace […]

Bob Aaron bob@aaron.ca August 2, 2008 Clients will suffer if articling program is abolished Imagine hiring a newly minted real estate lawyer for the largest purchase transaction of your lifetime a new home only to find out that he or she has had no exposure to any real estate transactions beyond a law school course […]

Bob Aaron bob@aaron.ca July 26, 2008 Vendors take risk signing SPIS form A recent leaky basement court case from the Ontario Superior Court in Thunder Bay is the latest in what might be called a flood of litigation resulting from the use of the Seller Property Information Statement (SPIS) by Ontario real estate agents. Rhonda […]

Bob Aaron bob@aaron.ca July 19, 2008 Family feud sparked over ownership of cottages A recent decision of the Ontario Superior Court of Justice (see below)  provides a timely reminder that parents who want their cottages to remain in the family should consider a plan for orderly succession in ownership, and put those instructions in writing. […]

Bob Aaron bob@aaron.ca July 12, 2008 New delayed occupancy warranty benefits consumers Tarion Warranty Corporation has introduced a new set of rules for delayed condominium occupancies. The new delayed occupancy warranty came into effect July 1, 2008, and applies to every new condominium project as long as no unit in the project was sold before […]

Bob Aaron bob@aaron.ca July 5, 2008 Closing dates you can take to the bank On July 1, Tarion Warranty Corp. introduced a completely new set of rules and procedures for delayed closings of freehold homes and condominiums purchased from builders. According to Howard Bogach, Tarion’s recently appointed president and CEO, the updated warranty is intended […]

Bob Aaron bob@aaron.ca June 28, 2008 SPIS form could spell rocky legal ride for buyers An Ontario court decision released last month serves as a potent reminder of the dangers of using a Seller Property Information Statement (SPIS) when selling real estate. In December 2003, Paul and Judith Riley signed an agreement to buy a […]