In 2011, 1,806 residential properties in Québec were seized by their mortgage lender, a 19 per cent decrease compared to 2010, when 2,224 properties were seized. This was the second consecutive annual decrease in foreclosures, after the recent peak in 2009. According to the results obtained for 2011, we estimate that the number of foreclosures province-wide represents one property out of 1,140, compared to one property out of 911 in 2010.

There are also cases of voluntary relinquishments when mortgage holders, who are in default, choose to voluntarily give the keys to their property back to the mortgage lender before the end of the foreclosure process. These cases are quite uncommon and are rarely associated with the borrower’s main residence. In 2011, 271 Québec mortgage holders voluntarily relinquished their property, versus 355 in 2010.

The Number of Notices of Exercise Also Decreased
A foreclosure occurs after a notice of exercise is published at a Québec Registry Office. This warns the holder of an outstanding mortgage that his property will be seized if the outstanding amount is not paid within 60 days following the publication.

In Québec, 6,455 residential mortgage holders received a notice of exercise for the first time in 2011, compared to 7,200 in 2010, a decrease of 8 per cent

source: Fédération des Chambres Immobilières du Québec

When Buying or Selling a home in any big city and Montreal is not the exception, it is usually quite exhausting . Prepare yourself for it, be realistic, and the journey shall be much more tolerable and even enjoyable. We will walk you through every step and we will try to help you as much as possible.

When you are selling your home, make sure your house is priced properly and be prepared leave for that “ever-important” showing at a last minute. After all, those potential buyer could be “the ones”. The more you give, the more you get and in Montreal is not an exception. Have your house clean (watch out with animal smell), have fresh neutral colours on your walls, de-clutter, and de-personalize. There is no better way, or more economical way, to showcase your home for minimal dollar. Chances are, you’ll make it all back, and more!

As a home Buyer, be prepared to move quickly with an offer should that dream home pop up for sale.  Unfortunately in Montreal too many times we see people “sleep on it” and lose their dream home. Don’t be that person! Good properties are sold fast! weather you want to live in the west island of Montreal, downtown or in the north or south shore. Also, as home buyer, you want to make sure that your Real Estate Broker does their job and has you Pre-approved, in writing, from their lender. It will give you the upper hand in putting forth a stronger offer. After all, your Lender has given you the confidence to move forward!

If you prepare yourself you will not be disappointed. We will help you out!

Every property has its issues….. even the new ones!

The purchase of a home is one of the biggest investments people will make in their lifetimes. But it is also among the greatest sources of anxiety.

 A home inspection helps ensure homebuyers of the quality of their investment by making them aware of its condition and alerting them to any concerns.

 This can serve to relieve stress, increase confidence and even reduce the threat of legal action in the future.

 Some of the benefits of a home inspection are:

 -Knowledge: Understanding exactly what you’re buying – old or new.

-Peace of mind: Helps in making an informed purchase decision.

-Savings: Reveals the need for repairs or replacements before you buy and when things have to be done and how much would that cost you.

-Fewer surprises: The home inspection limits the number of problems you may discover after you move in

-Education: A good home inspection also gives you invaluable details about your new home in addition to information about the condition of the property. You’ll learn where the main shutoff valves to the utilities are located, how the house operates and more.

 

How do I find a good home inspector?

Not all inspection companies are alike, and selecting the wrong company could cost you thousands of dollars in repair and replacement costs. Consider the following when shopping for home inspection companies.

-Experience: How much experience do the inspectors have and how long have they have been in the business? The best home inspectors have been in business for years and have seen thousands of homes.

-Home Inspection Training: Have the inspectors gone through any extensive home inspection training? In many places inspectors can simply call themselves home inspectors without any training or licensing.

-Association Membership: Is the inspector a member of a professional home inspection organization? Companies that are affiliated with professional organizations are serious about what they do, and know about all the new developments in their fields. The Quebec Association of Building Inspectors (AIBQ) is recognized in the industry as being THE REFERENCE in building inspections throughoutQuebec.  This association ensures the public’s protection through the supervision of its members, by:  • Applying strict requirements in the candidate application process;  • Successful completion of exams determining the technical knowledge in building components;  • Continuous mandatory annual training;  • Obligatory professional liability insurance (errors or omissions).  If you ever need to collect on a legal judgment, an inspector without insurance my not be able to pay your claim.

 

What if I’m buying a newly constructed home?

An inspection on a new home is important for the buyer to level the playing field. As in any industry there are shortcuts and tricks of the trade in the construction business, and someone who is unfamiliar with them can easily miss them. A home inspector is better able to see nuances that may not be readily visible to an untrained eye. You also need an inspector to offset the builder’s or contractor’s interest. Much of the information about homes is either taken for granted by people, or remains unfound.

For newly constructed homes, an inspection of the house before the drywall is installed, otherwise known as a “pre-closure inspection”, provides a level of quality assurance for the buyer that many builders don’t usually provide for their contractors. This inspection gives you a better chance of identifying and correcting potential problems when they are much easier and less expensive to fix, before they become physically or financially prohibitive.

For example, this inspection may prevent the need for moving a wall so that kitchen cabinets don’t protrude into a doorway opening, or moving electrical receptacles so they are placed where you need them.

 

Montréal,  On November 30, Ville de Montréal presented its 2012 budget. For the City as a whole, the increase in overall taxation is 3%. Taxpayers in LaSalle’s residential sector will see their tax bill rise 3.36%. This percentage will be slightly different from one property to another, however, based on the property assessment. Half of LaSalle’s homeowners will therefore see their tax bill go up between 2.5 and 5%, while the tax bill of over one quarter of them will be under 2.5%, and some will be even less than last year.

“Not counting the tax on services, which accounts for only 0.46% of the increase, overall taxes in LaSalle are up less than the Montréal average, with 2.41% for LaSalle and 2.5% for Montréal as a whole,” pointed out Mayor Manon Barbe. “The freeze on the tax on services for the past three years is helping to limit the pressure on homeowners, while making it possible for us to offer high-quality proximity services.” Half of Montréal’s boroughs now resort to a local tax.

Property tax rate and service charges
In 2012, the property tax rate will be 0.9472 in LaSalle, for every $100 of assessment, for all residential buildings with less than 6 housing units. The rate of 1.0240, which is marked in the budget documents, is indicated for comparison purposes and takes into account both the water and household waste tax, which are in fact billed separately to all LaSalle households, including tenants. This rate nevertheless makes it possible to equitably compare all boroughs’ taxes. The water tax billed to LaSalle homeowners and tenants will amount to $40 per housing unit, and the household waste tax, also billed to each household, will be $100. These are the same rates as in 2011.

Non-residential sector
In 2012, the overall tax increase will be 3.16% for LaSalle’s non-residential sector (with the average being 3%). The property tax rate will be 3.7871 per $100 of assessment.  Owners of non-residential buildings in LaSalle are benefiting from one of the lowest cumulative average tax rates in the City as a whole.

Source: Borough of LaSalle

Home Ownership Program

You dream of owning a property in Montréal? With the Home Ownership Program, you could take advantage of:

• Financial assistance when you purchase a new property

• A total or partial refund of your « welcome tax » when you purchase a new property or an existing duplex (two above-ground dwelling units) or triplex (three above-ground dwelling units)

You have kids? The program’s financial benefits are greater for families. In addition, you are entitled to receive six months of free public transit access on purchase of a one-year OPUS full-fare pass, and to two Accès Montréal cards to take advantage of rebates on many activities offered in the cultural metropolis.

The purpose of this program is to facilitate first-time home ownership for buyers of a new affordable residential unit or an existing residential building with two or three above-ground dwelling units (duplex or triplex).

More specifically, the program is designed to:

- Help Montréal tenants buy a property in Montréal;

- Encourage developers, indirectly, to build affordable housing, especially for families;

- Improve the quality of life of households and encourage them to settle in Montréal, especially young families;

- Increase the number of owner-occupants in existing duplexes and triplexes so as to encourage better maintenance of such buildings and revitalize Montréal neighbourhoods.

The program also provides incentives for households with at least one child to promote sustainable development and limit the use of cars in Montréal. These families will also be able to take advantage of rebates on many activities offered in the cultural metropolis.

Who is eligible for financial assistance?

First-time buyers (physical person) of a new affordable residential unit or an existing residential building with two or three dwelling units are eligible for financial assistance provided they meet program requirements.

What type of property is eligible?

The purchase in Montréal of one of the following types of properties can qualify for financial assistance:

• A new residential unit whose total purchase price, including taxes and extras, does not exceed the stipulated amount;
• An existing exclusively residential building that includes two or three above-ground dwelling units, with at least one of them being offered for rent, and whose purchase price does not exceed the stipulated amount.

What territory does the program cover?

The program is available throughout the city of Montréal.

What is the amount of financial assistance?

The amount of financial assistance varies according to the type of household and the type of property.

The financial assistance for the purchase of a new property includes a lump-sum payment and the refund of part or all of the real estate transfer tax (“welcome” tax).

¹ Including taxes and extras. The maximum eligible purchase price is increased by $2,500 for a building certified as being conform to the Novoclimat energy efficiency program or by $5,000 for a LEED-certified building.

The financial assistance for the purchase of an existing residential building consistsq of the refund of part or all of the real estate transfer tax.

The financial assistance is paid once the new owner has demonstrated that he/she occupies the dwelling unit and satisfies all other program requirements. The applicant must pay the real estate transfer tax within the allotted time; it will be refunded in part or in whole, depending on the situation. Interest due to late payment of the transfer tax is not included in the financial assistance calculation.

Households with children who take advantage of this program are eligible to receive six months of free public transit access on purchase of a one-year OPUS full-fare pass (one free pass per household). These families will also receive two free Accès Montréal cards. They will be informed of the procedure to obtain these benefits upon approval of the financial assistance.

Are there any specific program requirements?

For all property types:

• Each of the applicants must prove that he/she has not owned a residential property in Québec over the last five years. This five-year period is based on the dates when the sale of the previous property and the purchase of the new one were recorded in the Land register.
• To be considered a household with children, the household must include at least one child who is under 18 years of age on the date of purchase or who will be born or adopted within six months of that date. In addition, the child must reside with the applicant at least 40 % of the time.
• The date of purchase is the date of registration of the transaction in the Land register.
• When the financial assistance is approved on the basis of an accepted offer-to-purchase, the transaction must be completed within 18 months of signing the offer; applicants then have six months from the date of purchase to provide all documents required to receive payment of the financial assistance.
• When the application for financial assistance is made on the basis of a deed of sale, it must be submitted within six months of the date of purchase. Applicants then have six months from the approval of the financial assistance to provide all documents required for its payment.

For new properties:

• The applicant must be the first buyer of the property.
• The property must not have been occupied before it was purchased, except by the applicant and only for a maximum of 12 months before the date of purchase.
• The property must be registered under a warranty program for new homes.
• A “family housing unit” is defined as a new residential unit that includes at least five rooms, at least three of which are bedrooms, and that has a minimum floor area of 96 m² (1,033 ft²) as per the certificate of location.

For existing residential buildings:

• Only the purchase of an existing residential building that includes two or three above-ground dwelling units, with at least one of them being offered for rent, and that has no other main use is eligible for financial assistance.
• The building must have been constructed or converted into a residential building for at least ten years.
• The building must not be a divided co-ownership at the time of purchase. In addition, the owner cannot apply for such a conversion while the application for financial assistance is being processed.

What are the owner’s obligations?

• The applicant purchasing a new residential unit must commit to remain the owner-occupant of the property and occupy it as his/her primary residence for at least three years from the date of purchase.This requirement must be recorded in the Land register by a notary chosen by the applicant. Notaries may charge a fee for this service. Owners who fail to comply with these obligations will be required to reimburse part or all of the financial assistance. This provision does not apply if the owner sells this residential property within three years of purchase but buys another residential property in Montréal.
• The applicant purchasing an existing residential building with two or three dwelling units must commit not to convert the building into a divided co-ownership for at least three years after the financial assistance has been granted. Owners who fail to comply with this obligation will be required to reimburse part or all of the financial assistance.

What is the procedure to apply?

Applicants who are eligible for financial assistance should fill out the form for the Home Ownership Program available:

• On the Ville de Montréal Web site at habitermontreal.qc.ca by selecting “Financial Assistance”,“Home Ownership”, then again “Home Ownership Application Form”;
• In borough offices or the reception desk of the Direction de l’habitation of Ville de Montréal, 303, rue Notre-Dame Est, 4th floor, Montréal, Québec H2Y 3Y8.

The completed form with the required documents may be sent by mail or delivered in person to one of the above locations, or sent by fax to 514 872-3883. Required documents are listed in the application form. For information, please call 514 872-4630.

Once the application has been received, a letter will be sent to the applicant explaining the approval procedure and the waiting period to be expected.

How much does it cost to apply?

There is no fee for processing financial assistance applications under this program.

Welcome tax “Taxe de Bienvenue”

 

The commonly called ”Welcome tax” or Taxe de Bienvenue” was not created to welcome you in your new house or town but rather a tax that was introduced at the time of the former minister Jean Bienvenue (1976), who later became the controversial judge that we know.

This tax was intended as a source of additional revenue for municipalities. The transfer tax is raised by the municipality during a transfer of property, new or used, from one owner to another.

How do we calculate the tax?
Must allocate the amount between the highest price paid and evaluation under the following ranges:

- $ 0 – $ 50,000 0.5% of the amount in this range
– $ 50 000 – $ 250,000 1.0% of the amount in this range
– $ 250 000 and 1.5% of the amount in this range
– $ 500,000 + 2% (in the city of MTL)

So for a $ 200 000 building, the first $50.000 is taxed at 0.5%, between $50.000and $200.000 or $ 150 000 it will be taxed at 1%

The buyer does not pay duties on transfers of real estate when:

The price is below $ 5000
This is a transfer between parents, including:
Son, daughter, father, mother, spouse, in-laws, daughter-in-law
The transfer of property to his company by a shareholder owning more than 90% of the shares in the company or vice versa

When should I pay this tax?
The time varies from one town to another but usually, the municipality will forward an account within 3 to 6 months following the date of the official signing of the real estate transaction at the notary. Upon receipt of the account, a period of 30 days to pay the entire balance is allocated.

WHAT IS RADON?

Radon is a radioactive gas produced naturally by the decay of uranium in the earth’s crust. It exists all over the world, although its production and, consequently, its concentration are not uniform. Because radon is odourless, colourless and tasteless, it cannot be detected by the senses.

RADON IN YOUR HOME?

Whether your house is new or old, radon tends to accumulate in the lower and less ventilated rooms, like the basement for example, where it can reach high concentrations.

The gas can seep into the house in a variety of places:

1. foundation wall cracks;
2. between floor tiles;
3. packed earth floors;
4. construction seams;
5. gaps around waste pipes (e.g. pipe couplings), gaps around service pipes and support posts;
6. crawl spaces, drains and sumps.

The only way to know if you have a radon problem in your home is to measure its concentration.

ITS HEALTH IMPACT

The only known risk is long-term development of lung cancer. The level of risk depends on the concentration of radon as well as the number of years of exposure. It is estimated that 10% of all lung-cancer-related deaths in Quebec are linked to radon exposure.

The 2^nd cause of lung cancer after smoking

Smokers run a much greater risk than non-smokers (including second-hand smoke). In fact, individuals who are exposed to both tobacco smoke and high levels of radon over an extended period of time are more likely to develop lung cancer. The effect is more than additive. Incidentally, 60% of radon-related lung cancer deaths occur among smokers while 30% occur among former smokers. For example, if you smoke your entire life and are exposed to 800 Bq/m³ of radon, your risk of developing cancer is 1 in 3.

APPROXIMATELY 10% OF ALL RADON-RELATED LUNG CANCER DEATHS OCCUR AMONG NON-SMOKERS.

Smokers are not the only ones at risk. Among non-smokers, exposure to radon is the leading cause of lung cancer.

PROTECT YOUR FAMILY, MEASURE RADON LEVELS IN YOUR HOME

The only way to know if you have a radon problem in your home is to measure its levels. The marketplace offers a number of measuring devices and services. Testing is safe, simple and relatively inexpensive (approximately $75). Various devices allow you to measure radon concentrations over short periods while others do so over several months.

Health Canada recommends measuring radon in your home for at least three (3) months, ideally in winter. The test must be performed in a room occupied more than four (4) hours a day and located on the lowest level, e.g. basement bedroom or recreation room.

If the annual average exceeds 200 becquerels per cubic meter of air (200Bq/m³ ), corrective measures should be taken. (A becquerel is a unit of radioactivity equal to one disintegration per second).

BEAR IN MIND THAT YOU SHOULD NOT RELY ON NEIGHBOURHOOD OR NEXT-DOOR RESULTS, AS THESE MAY VARY SIGNIFICANTLY FROM ONE HOME TO THE NEXT.

 

WHAT CAN YOU DO TO REDUCE RADON LEVELS IN YOU
R HOME?

As each house is unique, a diagnostic test will have to be performed by a qualified contractor who will recommend one or several mitigation techniques. In most cases, these measures are simple and relatively inexpensive. For example:

1. depressurize the gases under the concrete slab by installing small pumps that will suck out and exhaust the radon outside;
2. install a balanced ventilation system;
3. seal all cracks and holes in the foundation walls and floors, and gaps around pipes and drains;
4. make sure the floor drain always contains water.

The work should be done by an experienced contractor who has received proper training from a certified organization. Expect the work to cost anywhere from $800 to $2,500.

For new homes

When a new home is being built, it is generally impossible to predict the levels of radon it will contain. It is therefore simpler and less expensive to adopt preventive measures during construction than to take steps later on. For example, to reduce radon infiltration routes, you can:

1. use highly resistant concrete;
2. add plasticizer to the concrete;
3. install a polyethylene membrane under the concrete;
4. install a balanced ventilation system;
5. install a pipe that runs across the concrete slab, to hook up a depressurization system if necessary.

Other corrective and preventive measures are featured in the Canada Mortgage and Housing Corporation’s brochure “Radon – A Guide for Canadian Homeowners”.

Source: L’Association Pulmonaire de Quebec, http://www.pq.poumon.ca

Check the details of the will to avoid unpleasant surprises down the road. Like if the property still has an outstanding mortgage or lien attached to it, depends on how the estate has been arranged.

When a property is inherited, the estate becomes the owner – the estate then distributes the property, according to the will, and the distribution is done debt-free. So, the first obligation of an estate trustee is to pay the debt, once the debts are paid then it’s distributed what is left. A person before making a will should consult an estate lawyer in order to make sure that, when leaving their properties, they don’t also leave a financial headache for their beneficiary.

As a beneficiary of an inheritance, you have the right to refuse it if you can’t assume the mortgage debt obligation.  But you can’t say ‘No, I don’t want the mortgage.’ You don’t have a choice. You either take the property with the mortgage or you don’t take the property.

Check with the lender, as not all will simply allow you to take over the deceased’s mortgage.

One option to avoid leaving mortgage debt behind is to consider credit protection insurance. A credit protection plan is part of your bigger financial plan, not just around your mortgage. A credit protection allows you to have insurance on your mortgage. As you pay down your mortgage, in case you suffer critical illness or on your passing, the mortgage outstanding balance is paid off.

An insurance professional can help you decide if you just need insurance for the mortgage debt or more general life coverage.

Do you need to sell yours? Give us a call!

Since the new Quebec Real Estate Brokerage Act came into force on May 1, 2010, buyers are no longer represented in a real estate transaction when dealing directly with the listing broker. This is one of the many reasons it is so important to have your own representation and work with a buyer’s broker when looking to purchase a property.

The job of a buyer’s broker is not to “sell” any particular property, but to represent the best interests of the buyer throughout the home buying process. The broker will advise the buyer even if it means pointing out reasons not to buy.

1. Your buyer’s broker will pay full attention to your needs to make sure you find the home that is right for you whereas the listing broker’s mandate is to sell their client’s property.

2. The listing broker will give you just the facts but your buyer’s broker will perform due diligence and intensive research, which will help eliminate costly mistakes or uncover hidden surprises.

3. Your buyer’s broker is there to protect and guide you. Your broker will negotiate on your behalf, thus avoiding any conflict of interest.

4. Your broker will work to solve problems to your advantage and satisfaction whereas the listing broker is focused on closing the deal. This is especially important if the building inspection reveals any issues with the property.

Contrary to popular belief, commission costs are the same regardless of who sells the home. There’s no cost to you, the buyer. The Buyer’s broker is paid from the commission as previously agreed to by the seller in the listing agreement. As a matter of fact, studies suggest that a buyer’s broker helps buyers save both time and money.

You should also choose to work with a local broker who will be able to highlight the pros and cons on the pricing of various neighborhoods, discuss schools, shopping areas, resale values, commuting times and options, as well as other important considerations when buying a home.

Each area has its own idiosyncrasies; some are known to have red ochre, pyrite, septic tanks, and others still may have infrastructure drawings with highways planned to run right through them in the future.

Using a local broker also means benefiting from local professionals on your broker’s “team,” i.e. notaries, lenders, home inspectors, pest control companies, roofers, electricians, plumbers, etc. These individuals understand the local rules and regulations.

Your buyer’s broker is there to help steer you through the home buying process while smoothing out bumps in the negotiations. Think of your buyer’s broker as a partner who helps you make informed decisions as you look to buy your next home.

The housing price index (NHPI) rose 0.2% in October, following a similar increase in September, Statistics Canada said Thursday.

Metropolitan Toronto and Oshawa and Edmonton, are those that contributed most to the increase in October. The federal agency said, however, that the positive impact of these metropolitan areas on the overall index was partly offset by declines in Vancouver and Victoria.

Between September and October, Edmonton (+0.6%) posted the monthly increase in prices the highest, followed by Toronto and Oshawa (0.4%).

In Edmonton, the price increases were mainly the result of higher costs of materials and labor, and the growth of land prices. As for manufacturers in Toronto and Oshawa, some mentioned the good market conditions as the main reason for their price increases.

In October, prices were unchanged in nine of the 21 metropolitan areas surveyed.

The monthly declines in price the most important were recorded in Victoria (-0.6%) and Saskatoon (-0.3%).

From one year to another, the NHPI was up 2.5% in October.