Stigmatized Properties?

Recently, the BC real estate council issued a document called "'Stigmatized' Properties. Stigmatized properties are those that the value will be negatively affected because of some fact relating to the property. Examples of facts include a death in the house, an incestuous assault in the house, gang members lived there, terrible neighbours and ghosts.

The real estate council has issued a paper to help guide its real estate agent members for potential purchase and/or sales and it can be found at:
www.recbc.ca/pdf/StigmatizedProperties.pdf

Sometime in the early 1900's a series of cases started appearing in our courts. The principle of "buyer beware" (caveat emptor) started to erode. More recently, courts around the commonwealth world are etching a new corner out of this principle. Some jurisdictions are holding fast and true that the responsibility is that of the buyer to know what they are getting. A couple of jurisdictions are suggesting that the seller has a legal obligation to share certain information.

Here in British Columbia, there are few, if any cases to guide the current market.

The real estate council is recommending that the real estate agents involved act on the continuing principle of buyer beware. But does this mean the buyer can relieve themselves of their individual obligation by not asking questions? How much of the responsibility will fall on the agent's shoulders? Does the Seller have no obligation to disclose these type of facts? These questions haven't be asked and there are no guiding answers.... yet.

Blended families and asset protection.

I read recently (and make no claims to its accuracy) that the divorce rate is still around 40%. The remarriage rate is around 80%, and for people over 60, when they lose a spouse, the remarriage rate is over 90%. Based on my anecdotal observations, I think these numbers might be close to the truth.

My practice includes giving advice on children who get cut out of their mom or dad's will because everything is left to the new spouse. Sometimes the parents got it right and their respective children are fairly protected. More often than not, something goes wrong.

Without a doubt, blended families have to revisit their wills and estate planning regularly and definitely after a major change in residence, finances, death and so on.

Your lawyer, financial planner, accountant, banker and other related professionals should be talking to each other to make sure that they are all on the same page. We have many tools to achieve your goals but we need to know all of the big picture before we make suggestions.

Some simple options include using your investments and life insurance policies in lieu of a gift in a will. These options not only offer asset protection, but will save a small tax on your probate fee when the time comes.

If your lawyer is not helping you, ask yourself why not.

Builders Liens - limitations

Prior to the Builders Lien Act, contractors and subcontractors couldn't get their money out of the land or building that they worked on if they didn't get paid.

The Builders Lien Act is a powerful tool that tries to help contractors and protect owners at the same time. But it is very particular and the courts interpret it strictly according to the law.

The biggest problem for potential lien holders is the limitation date. Missing it is fatal to their claim.

I recommend that all my contractor clients follow a simple procedure when entering a contract by taking full advantage of section 7 of the act. This section puts the responsibility on someone else to give my client notice of when the time clock starts ticking.


If your lawyer is not helping you, ask yourself why not.

Buyers cancelling contracts?

Apparently the courts in BC are doing buyers of real estate justice. A recent Supreme Court ruling decided that a buyer was allowed to walk away from his purchase with his $350,000 deposit and this was consistent with the consumer protection laws in the Real Estate Development Marketing Act (REDMA).

The REDMA states that if a buyer of condo that has not yet been built does not receive notice of changes in the development, she has the option to rescind or walk away with the deposit. Of course, it is a little more complicated then that, but the point is that the laws to protect buyers, are being enforced and supported by the courts.

During the past year or so, I have reviewed many contracts of buyers wanting to get out of their obligation to complete their purchase. Most of the time, they had no recourse. In some cases, they walked away from their deposit. Most sellers know their obligation to keep the buyers informed, but it's worth exploring to make sure all disclosure has been properly given to the buyer.


If your lawyer is not helping you, ask yourself why not.

Serving Difficult Clients

So I don't usually ponder or worry so much about serving clients as I leave the litigating to my colleagues. But I couldn't help but marvel at the ingenuity of a lawyer in Australia and the harbingers of things to come.

The Australian court approved his application to serve the defendants via email through their Facebook account.

Google "Carmel Rita Corbo and Gordon Poyser" and you'll find various articles and blogs.


If your lawyer is not helping you, ask yourself why not.

Lenders Beware

One of the great things about the British Columbia Land Title system is that a registered owner of title, charge or mortgage can safely rely on the registered document.

Until 2009.

Recently the Court of Appeal returned a property, unencumbered to its rightful owner. The original owner's property was transferred to a buyer who used an innocent lender to complete the purchase. The "seller" walked away with the mortgage money and buyer's cash. The lender was left with no mortgage repayment and no registered mortgage.

If you're a lender, you'll want to explore with your lawyer possible protection for you.

If your lawyer isn't helping you - ask yourself, why not?

$5B in BC in 2 years from the Federal Government

During the next 2 years, approximately 5 billion dollars will be allocated to the British Columbia/Yukon region from the Federal government alone and mostly for capital projects.

Some of you will benefit directly and indirectly from these projects. For example, the bridge work and ancillary projects in the lower mainland will continue: The twinning of the Port Mann is only just beginning. This will be performed by various corporations and individuals and you may have a skill that can enhance these projects. However, you need to know who to contact to tap into those projects. Large corporations will bid for large portions of project and subcontract out various parts within the project. You can find out what projects are available for bidding, who has been the successful bidder, how to get on a “preferred supplier” list and other useful information by contacting us or visiting the www.contractscanada.gc.ca website.

A preferred supplier is provider of services or supplies that stays on a list for a period of time and the government chooses the next supplier on the list for each job that comes up. The list is rebuilt from the time to time so there is new suppliers have the opportunity to get on that list.

Some obvious trades that can benefit from these contracts include; construction and related business; traffic management related businesses; landscaping; equipment rentals and services; and many more.

If your lawyer isn't helping you - ask yourself, why not?