Valuable Real Estate Purchasing Tips

Perhaps the most important process of buying or selling your home is the ?contract of purchase and sale?. This one contract must be the strongest link in the chain that holds your purchase or sale together. The intent of each item included in this contract must be clear with no misunderstandings. In other words, everyone understand what to do and when to do it.

The ?contract of purchase and sale? has been developed by the B.C. Real Estate Association and the Canadian Bar Association within British Columbia. This contract is mostly suitable for residential real estate and should not be used for commercial transactions. One major issue in the contract of purchase and sale that is often over looked is the numbering of pages. The approved contract and all ammendum pages should be cross referenced. The appropriate page number should be written at the top of each page (i.e., Page 1 of 3, or Page 2 of 3 and so forth).

An amendment to an original contract of purchase and sale is essentially known as a change in the agreement. This new agreement that has been made should be put in writing in what as known as an ?addendum form? and signed by all the parties to the contract. Each of these parties much receive a copy and this copy must be dated appropriately. The amendment done on the addendum form must clearly refer to the original contract and ?all other terms and conditions remain the same? should be in writing after the change.

Are you out of the country or out of the province? The seller or buyer may appoint someone (realtor or another person) to act on his or her behalf with regards to any real estate transaction. This authorization should explain the exact terms and conditions under what authority the person has to sign on an agreement. For example: A telegram, letter or fax may be perfectly fine for this person to sign for. However, the signing of legal binding agreement may need the signature of ?power of attorney?. When a person is granting the power of attorney to another individual, the proper way to complete this is as shown. However, should not be taken as legal advice and should not be used without first consulting your lawyer.

? First-Name Last-Name grants a power of attorney to her friend First-Name Last-Name to enter into contracts for the sale of his/her property.? This friend could then sign both the listing contract and any other contracts including the contract of purchase and sale. This agreement should be witnessed by another person. This should be done on the correct form provided by your lawyer of choice. Legal Counsel is recommended that all parties to a transaction be advised to have legal advice from separate lawyers.

?Subject to? Clauses in the purchase of your new home, condo, apartment or mobile home is a very important binding element of your agreement. If one or both parties are not clear, this can weaken your agreement and could alter the original intentions of the purchase and sale. The ideal subject clause is one whose criteria are so clear that it is completely obvious whether the criteria for satisfying that clause are met. When your looking at your clauses consider this. Is your clause subjective or objective? Here?s the difference:

A subjective ? Is one that depends on the personal view of the individual who decides it.

An Objective ? (in contrast) Is an objective clause that depends on the external event.

The more subjective the wording of a subject clause, the higher the chases the court system in British Columbia will find the clause to be uncertain. So how do you make your clause more objective? Make it clear so that everyone may easily know whether the clause is fulfilled or not. The more objective it is, the more you can prove whether the subject clause is completed or not.

Your local realtor is required to take a course on proper contractual writing and should have an innate knowledge of the law. If you have questions, don?t only present your questions or concerts to your realtor, but your lawyer as well. For the most part the experience of your realtor and the requirements put forth by the BCREA (British Columbia Real Estate Association) should be sufficient. In conclusion the be sure that all pages are numbered, the addendum is clear with signatures and that your ?subject to? clauses are clear and objective.

Shane Toews is a Licenced Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada's Fraser Valley Real Estate Market

Buying Vacation Property in Palm Beach

The boom in vacation properties is just beginning. It appears to be a strong real estate trend in the coming years.

There are two main reasons for this trend. First, people born in the 1940s and ?50s are now looking toward retirement and are financially able to own a second home. As they live longer, healthier lives and stay active, many are choosing vacation homes near ski slopes, golf courses, or water-sport areas.

The other reason for the growth in the vacation market is money. Many people have refinanced loans and taken the equity from their primary residence to purchase a vacation home. Owning a second home appeals to some people as a safer investment than the stock market.

Here are some tips to help you select a vacation home:

* Buy a home you are going to use in an area you enjoy visiting. If it is too far away or inconvenient to travel to, you won't go often enough.

* Choose a location with a variety of indoor and outdoor activities for when the weather turns bad.

* Research locations and visit destinations, preferably in different seasons.

If you're thinking about buying a vacation home in Palm Beach, make sure to take care of the points made above. The market for Palm Beach real estate is finnicky and the devil is definitely in the details. After talking with many a Palm Beach realtor, it is clear that the difference in making a fast sale and staying on the market for a while is the small fixes that svae lazy buyers from doing it themselves.

Buying Property Overseas the Common Misconceptions Solved

Janet and John part 5

Some of the misconceptions solved for buying overseas property

Janet and John had reserved their new property overseas. They had paid the reserve to the solicitor Raphael, and he had secured the property for them. He was now in the process of searching at Land Registry to see what if any were the problems related to their dream purchase. He soon found one. Janet and John were still recovering from the shock of having to put up half the money in cash and I mean real folding money!

It transpired that there was a mortgage on the property for 120K. He rang John and enquired if they knew? No was the reply but surely such a mortgage would be cancelled or settled by the current owner? Such is the habit in the UK that mortgages move with people but are secured on property. However in the UK when a property is sold the new owner buys it with clear title and no debt attached to the property.

In Spain the mortgage can stay with the property in question. The seller can happily transfer the mortgage to the name of the buyer or just walk away leaving the mortgage with the property. That mortgage never follows him but is charged against the property and the new owner becomes responsible to the Bank for the loan and the term.

It has often happened in Spain that foreign buyers have not employed a good solicitor or not even employed a solicitor at all but trusted the agent! Yes the hot sun gets to them all at some point. Unwittingly buying properties for the full price, only to find out later, that there is a mortgage on it or a huge council tax debt!

However it can also work to a buyer?s advantage. The old owner may have arranged a sizeable mortgage with a reputable lender over a long term and at a low interest rate. Even with variable mortgages, those that react to changing National base rates, by European standards these mortgages are normally inexpensive. Of course there is always the odd one that has been arranged for an un-creditworthy consumer with harsh conditions. Buyers beware!

What to do?

First contact Andy the Property pal. Is this normal? What shall we do? Back came the answer.? Yes it?s quite normal. First ask what the terms and conditions are. What is the rate of interest, who is the lender and what is the term? If they are acceptable and the lender is well known then it could be to your advantage to accept the mortgage as part of the purchase price.?

John spoke with the agent and explained the problem. Jose Miguel agreed to call the owner and make the necessary enquiry. John also had other queries relating to services and local taxes. John then asked if there was an electrical certificate. Poor John?.. Jose Miguel smiled, ?My friend this is Spain, the property is over 20 years old you will not be able to get such a thing however desirable.? John mentioned that Andy knew a local electrician, an Englishman called Brian would it be OK for Brian to do an inspection for him? ?Of course whenever you like!?

A few weeks later they are back in the UK and waiting for news. Nothing has been heard for a while and John is worried, Janet is becoming anxious. John decides to use the Property Pal network again and that night sends Andy, his Property Pal for Costa Valencia an Email. Andy replies two days later. He has phoned the agent and the solicitor and Brian the Sparks. All is going reasonably well, the legal process is progressing but John should plan to come back to Spain in 3 weeks time for a likely completion.

Janet is very happy with his news and John sits her down to discuss the outstanding problems.

The mortgage is a good one. The lender is Banco Popular a reputable lender and the interest rate is 3.5% with an outstanding term of 10 years. This means that 120K outstanding can be taken off the purchase price and Janet and John can take the responsibility of the mortgage with the property. The advantage is John does not have to register a new mortgage at the Town Hall and avoids paying a mortgage tax. He also saves a lot of time in not having to arrange his finance, albeit the loan is more than he wanted at least it is very cheap by UK standards and manageable.

The electrical report has come back from Brian the Sparks. It is not good news. The system that exists is illegal. The power input is so low that a microwave will set off the trip each time it is used. Brian assumed correctly that Janet would want a dishwasher, tumble dryer, air-conditioner unit, kettle and other electrical appliances installed and the power is just inadequate. John would have to apply to the local power company for an increase in supply. They would arrive to inspect and declare the current installation illegal.

What to do?

Contact Andy the Property Pal. Andy instructs Brian to quote for the upgrading and re-wiring and installation of new circuit breakers. Andy will see if he can call the local power company and start a process for Janet and John. If Brian can do the work first then when they make their inspection, and of course when is the keyword, they will declare it acceptable for a power supply increase.

The next problem for our intrepid pair is how to handle the darker side of the cash purchase.

In Spain there is no Capital Gains Tax on your primary home but in theory there is on your second or weekend home. Traditionally over the years property has changed hands with little concern for the accuracy of the boundaries or deeds. Much of the price has been paid in cash from below the bed. This habit is changing and many lawyers are now under greater scrutiny from National and local bodies who wish to see the real value of a house declared and tax paid thereon. So the habit still exists but lawyers are encouraging and cajoling sellers to declare at least 70% of the value in legal tender.

Thus 30% is paid for in hard folding cash. If the declared value is too low then the Town hall Notary has been known to fine the seller for the assumed balance by going out and valuing the property! It is not unusual for buyers and sellers to exchange cash at the Notary?s office in a large bag. Obviously this does not go unnoticed by the local criminal fraternity and there are many instances of persons being robbed on their way to or from the completion meeting. It is normal but absurd as the Public Notary? office is fully aware that this practice exists, and the Notary in question will simply withdraw from the room for 5 minutes whilst the parties exchange the cash!

Often there will be two solicitors and two opposing bankers present, as well as the bagman, his counterpart and maybe a translator. It is a real farce which is slowly changing. It is now even acceptable for a Bank to draw a check for the cash element and bring that with them for their client instead of the insecure currency notes. However there are still sellers that insist on cash for their balance outstanding and some who even do another portion outside of the auspices of the Town Hall! Do not get involved in this practice is the advice from the myProertyPal.com website. The system is becoming so farcical that I have heard stories of Banks running out of cash and having to go around the local town and collect it from other Banks!

Janet and John chose Banco Popular and they and the opposing side were able to accept a check for the funny balance and all went well with their date of completion.

So the intrepid pair completed their learning curve of buying their investment property overseas, but was that the end of the story or was there much more to learn about Living in Spain? Of course and we will re-join them later!

http://www.mypropertypal.com

UK FirstTime House Buyers Feeling Over Stretched

The population of Britain is renowned across Europe as a nation of fanatical home owners. While members of other countries are content to rent their home rather than take on the burden of actual ownership and long-term financial debt, people in the UK seem fixated with the idea of buying and owning their home. Unfortunately for the thousands of current prospective first-time home buyers, the soaring levels of house prices in recent years has made it increasingly difficult to get into the first rung of the property ladder. As the value of houses at all levels increases, the number of first-time buyers who are having to borrow the full value or more of their property, or rely on more financially secure friends and relatives to stand any chance of buying a home, has also increased.

According to a recent report by the Post Office, there are currently many first-time buyers who have become so overstretched through their borrowing that they now stand the risk of losing their homes within the next six months. According to Claire Oldstein from the Post Office: First-time buyers tend to overstretch themselves, but need to consider what they would do if they lost their income.

?One in three first-time buyers accepts that their household costs are higher than they had anticipated and 45 per cent do not have any insurance against loss of income resulting from accident, sickness of unemployment.?

While the major mortgage lenders like the Woolwich mortgages, understand that the introduction of first-time buyers is essential to keep the housing market from becoming stagnant, making it essential that many first-time buyer mortgages include incentives such as introductory reduced fixed rate interest periods, to help buyers regain their secure financial footing, this does not address the fundamental problem of increased borrowing.

First-time buyers are becoming more wary over the disparity between wages and the size of the debts accrued through taking out long-term mortgage loans. A study by the National Association of Estate Agents, indicated that only 12% of all houses sold last year were bought by first-timers, compared with nearly a third in 2000.

Mortgage comparison services like Moneynet and special introductory rates can help to ensure buyers get a better deal, but as the average length of time take to save up the deposit for a new house increases, and with it the average age of all first-time buyers, it is evident that the burden being felt is starting to weigh heavily on the already financially stretched resources of young house hunters.

Claire Oldstein warned that, It's unlikely they will have a big enough rainy day fund to rely on especially after pulling together a deposit. Protecting yourself may seem another unwelcome expense but it could actually be money well spent should the unexpected happen.?

Submitted by:
Michael Hanna

About Michael
Michael is a keen writer, and internet marketer living in Scotland:

Contact details:
E-mail: samqam@googlemail.com
Phone: 0131 561 2251
Michael's Website: Belfast Taxi

Making the Decision to Move to Atlanta

The decision to settle in a new city, town, or state is very difficult to make. Not only is it a hassle to pack and haul all your things to a new territory, but it is also quite inconvenient to prepare for the move. However, if you have the right reasons to transfer to a place then it is a choice you have to make. To prepare yourself to relocate, you should first learn as much as you can about the place in which you are about to move.

Making the decision to move to Atlanta can be easier than you would have imagined. This unique city in the southern state of Georgia has its own charms and appeal that make its residents love it so much. Much of the renowned Southern hospitality is still very alive in this city, despite the hustle and bustle that drives its population nowadays. This place has a good mix of excitement and coziness that makes the decision to move quite easy. Perhaps this is why a lot people refer to Atlanta as the city that is too busy for you to hate.

A major factor that entices a lot of people to move to Atlanta is that it is teeming with commercial life. The city boasts of housing among the United States? and the world?s leaders in the corporate community. Here, well-known giants have planted their headquarters. The likes of UPS, Mindspring, CNN, Delta Airlines, Southern Companies, Russell Construction, and perhaps the most famous beverage company, Coca-Cola, find solace in this commercial hub. Atlanta is also the hub for the big companies of the future as it is where many young technology, communications, and designs companies are based. This is why many people who were just visiting the city suddenly make the decision to stay permanently.

Atlanta is a cozy city that sprawls for only about 131 square miles. However, it houses more than 3.5 million people quite comfortably with various types of homes available for every need. All types of houses are available from townhouses, single-family houses to duplexes, condos and sprawling mansions. Buying a home is relatively affordable with prices starting from under $100,000. You really can get alot of house for the money.

Going to and from Atlanta is quite convenient. This relatively small city houses the Hartsfield International Airport, which is the second busiest airport in the USA. While traffic can be a hassle in the city, one can easily take advantage of MARTA, the clean and safe rapid-rail system that is conveniently integrated with bus routes that are quite efficient.

The entertainment scene is very much alive in Atlanta. Whatever type of music that moves you can be found here, whether it is jazz, rock, R&B, rap, pop, or Latin. The city also houses fabulous entertainment hubs such as the Fox Theater, the Roxy, and the Tabernacle. You might also want to see the renowned Ballethnic Dance Company and the Jomandi Productions, which are established companies. Sports fans may also be excited to see the Hawks, Falcons, Braves, and Thrashers in action, or any of the other major sporting events hosted by the city.

The best part about moving to Atlanta is that you are sure to live in a friendly and exciting place. You can easily walk around and say hi to every person you meet on the street without getting any awkward stares you might experience in other great cities. Atlanta can sure be a home to anyone and this can make the decision to move here the best choice you would make for your entire life.

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Are you thinking of relocating to the Atlanta, Georgia area but don't know where to start? Bettye Prothro is available to become your Personal Connection for Atlanta Homes and Real Estate information. Visit http://www.AtlantaHomesAdvisor.com for Atlanta Homes & Real Estate Information and Resources.

The Dangers Of Overvaluing Real Estate

We all have done it at one time or another.

When short of listings, the Realtor goes out and ?buys' one. The process of buying a listing is as old as Real Estate itself. The agent shows up at someone's doorsteps and inflates the value of the property by more than $30,000, $40,000 or even $50,000 over and above the actual market value. I know of agents who have actually listed properties for $200,000 more than what those properties were in fact worth. The owner happily signs the listing agreement with those dollar signs sparking right in the eyes, and the Realtor happily sticks up a sign right in the front lawn. Of course the house subsequently does not sell because it is overpriced, but it doesn't really matter.

Or does it?

All the way back in 1988, in a legal case entitled Basic Inc. v. Levinson, the United States Supreme Court endorsed a theory known as ?fraud on the market', which in turn relies on another theory known in Economics as the Efficient Market Hypothesis. The Efficient Market Hypothesis postulates that prices of traded assets like stocks, bonds, or real property, already reflect all known information and therefore are unbiased in the sense that they reflect the collective beliefs of all investors about the value of the underlying asset and enable investors, therefore, to assess future prospects.

In essence the Efficient Market Hypothesis, which was developed in the 1950's and 1960's, states that subject to certain conditions the market price of a traded asset fully and accurately reflects all the available information relevant to its value. Under this Hypothesis, in an efficient market the only reason as to why a price changes is that new information comes to light.

Because market prices reflect all available information about an asset, reasoned the Supreme Court, misleading statements as to the integrity of price will affect and negatively impact the decision-making process of investors, who rely on those statements as the primary guide to finalize a purchase. Which is tantamount to ?intentional deceit', more vulgarly known as ... fraud.

That ruling has proven a goldmine for American trial lawyers, who have won fortunes by suing firms for damages when new financial information, often in practice a restatement of their balance sheets, is followed by a sharp fall in stock prices of the same firms. The fall is treated as proof of overvaluation due to the initial, wrong statements.

This decision of America's highest Court has now crossed the border with Canada and has spilled into Real Estate. A case involving a Seller, a Buyer and a Real Estate Agent acting in a position of dual agency is now pending in front of the Supreme Court of Ontario. The Agent first grossly overvalued the subject property at the time he took the listing, then actually found a Purchaser ready, willing and able to buy at a price close the grossly inflated asking price. As the transaction was being financed through an institutional lender, the underlying case initially also involved an appraisal firm, which subsequently has settled out of Court with the disgruntled Purchaser.

The decision of the Supreme Court will have an enormous impact on how real estate is practiced in Ontario and possibly throughout the whole country, and it will be interesting to see what the outcome will be. The Buyer bases his case on the Efficient Market Hypothesis arguing that he reached the decision to purchase on the integrity of the asking price and claims, furthermore, that the dual Agent knew or should have know that the asking price was grossly over and above the market value of the subject property. The Buyer is claiming damages both as against the Agent and the Seller.

The line of defence is that the true meaningful value of an interest in land is given by its ?objective value', defined as the price that the property will fetch in an open and fair market, given sufficient time to find a Purchaser, the amount of advertising involved in the marketing of the property, the relationship between the parties and the terms of financing. The additional argument of the defence is that the truthfulness of the Efficient Market Hypothesis is actually being disputed by Economists even in its original field of application: the Stock Market. More specifically, the defence argues that even highly developed financial markets such as the New York Stock Exchange are not efficient enough to allow Courts to calculate the financial damages caused by fraud, and that estimates of damages based on the Hypothesis will be necessarily overstated.

The Realtor in particular contends, furthermore, that at no time the thought of earning a double commission ever crossed his innocent mind (he was walking the dog one day and ...).

All of which goes to prove once again the point I have been making for years - that is sellers, buyers, realtors, lawyers and judges invariably make an explosive mix.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles on Real Estate Economics and Finance. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.