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Courts have no empathy for failed Buyers:

As you know, pressures on home buyers have intensified. “Clean” offers without conditions, have become the norm. In many cases though, unconditional offers are poor choices: they often result in purchasers being unable to close in time. Buyers should tread with caution and strive to put contingency plans in place if financing or the sale of their existing home falls through. Failing to close may lead for more than the shortfall in purchase price. Recoverable damages embrace all reasonable costs incurred by vendors in dealing with the breach and mitigating their losses. These include carrying costs, maintenance outlays, property tax, realty commissions, legal fees, as well as staging and other reasonable expenses. This is in line with the basic legal concept that courts should restore vendors to the position they would have enjoyed had the purchaser not breached the contract. In some cases, buyers cite falling markets, offering to close for less than the original price to which the parties agreed. If the vendor refuses the lower offer, the buyer may try to allege a failure to mitigate. But courts have consistently ruled that vendors have no duty to mitigate until after the purchaser’s breach of contract. This suggest that vendors can ignore revised offers. Most agreements of purchase and sale (including the standard OREA form) include a “time is of the essence” clause, meaning that parties must respect the deadlines in the contract. Courts have repeatedly enforced these terms, with the goal of maintaining certainty and predictability in our property transfer system. Our market is unpredictable, still it seems that we have reach a ceiling in April. I am staying positive, as I am not expecting a bad market, the market should stay strong, but the multiple offer situation is smoothing, depending of your neighbourhood it might be a good idea to sell first at this stage.

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Capital Gains Tax on a Principal Residence ?

The Globe and Mail published an article on March 20, 2021 putting back the idea of Capital Gains Tax on a Principal Residence. The idea behind is obviously that home owners are making too much money, with a market that across the country is up 25% from a year ago. In other words, if there are not enough homes to accommodate the population, it is because of the home owners are driving prices up. In 2017, it was the foreigners! So, the easy way, for some, is to say that it is the responsibility of Canadians! Let me tell you something very simple, if a home buyer has the choice between 5 homes…do you really thing that the seller will be able to push prices up. Finding together solutions including investors, home owners, tenants and the government. A good leader should start the conversation and listen to everyone including professionals. What is at steak? • Currently, the sale of a principal residence is exempt from capital gains tax. For most in Canada, it is retirement planning. • the United States is often used as an example. There, you are exempt from tax on the first $500,000 USD as a couple, and $250,000 USD as an individual, of capital gains. But what is often not mentioned is that the interest paid on mortgages is tax deductible in the U.S. This important distinction has not been part of the discussion in Canada. Homeowners already pay • Land transfer taxes (Ontario +Toronto, if applicable), and • property taxes. Adding capital gains tax wouldn’t be solving the problem, and will certainly not be a way to cool housing markets as the Non-Resident Speculation Tax didn’t.

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Upbeat Outlook for GTHA Economy to 2031

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2019 the Good , the Bad or the Ugly?

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According to Ipsos, Housing Issues are Important to Voters

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Politics & Real Estate: What’s next?

What is happening to our Real Estate Market?

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Stress tests: what impact for our housing market in 2018?

In 2017, foreign buyers have been the first target of Policy-makers in Toronto with a 15% tax on foreign buyers. In fact Toronto and Vancouver still have less than five per cent foreign ownership, but this decision had a big emotional impact on buyers and sellers The impact on both markets was immediate although they have since both rebounded.

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Our market on a downward slope?

For once, let us talk numbers. You are all wondering how is doing our local real estate market. Many home buyers and sellers have been playing the waiting game, “Has the market slowed down for the summer or are we on a downward slope?”

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An unpredictable housing market

I would like to share with you things that I have experienced myself or heard from colleagues.

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Is our market going to crash?

You probably all wonder how our Real Estate Market is reacting after the Ontario government announced 16 measures as part of Ontario's Fair Housing Plan to address some of the challenges facing Ontario families as they look to purchase a home.

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