The Devil is in the Details – always a good thought to keep top of mind when working with contracts and the minutiae of buying and selling. However something new pops up with boring regularity – usually caused by someone out there trying to beat the system. The latest were 2 instances of attempted title fraud and in one case, the fraudster actually successfully managed to have the title transferred into his/her own name!
Along with money laundering, all of this has caused the birth of LOTR – the Land Owner Transparency Registry, which will become searchable on April 30. The first of its kind in Canada, it is a registry of information on individuals and entities who have an indirect interest in land through corporations, trusts and partnerships. The public as well as realtors will be able to search by the name of a buyer or seller, or by the PID number – the parcel identifier in the land registry. This is a giant step forward in transparency and prevention of money laundering and other fraud.
If you are wondering about other consequences of our heated, competitive market, think about those entities lending mortgage money. For instance Toronto Dominion Bank recently hired 120 new underwriters and some secondary (‘B’) lenders will not finance any property for more than 40% over the asking price! First time we have heard any figures like these!
If you are also wondering how our younger buyers are affording current prices, financial institutions tell us that 90% of first time buyers have financial help from their parents. The reason for that could well be that Covid-19 caused an estimated 1.5 million young people to move back into the family home with their parents!!
As well as vaccines, the other trend lending hope for our economic recovery is that the commercial real estate market picked up in the latter half of last year as businesses established safety protocols and began reassessing their needs. The dollar value of land sales increased by 28.7% last year over 2019. There were 73 multi family land sales in the Lower Mainland in 2020 – up 21.7% from the previous year.
Real Estate sales of all kinds positively affect other businesses, both large and small – many of whom have retained their employees and prospered during the pandemic. Try hiring a contractor right now – they are all fully employed renovating homes, patios and gardens as people use this at home time to make those longed for improvements. These are the residents and businesses who will keep our community afloat and lead the economic recovery at the micro level. Let’s continue to buy local, support our local dining patios and takeaways and keep the light growing at the end of the tunnel.
Local real estate expertise is our stock in trade and we are happy to share it if you are thinking, or simply wondering, about a move or an investment. We are your neighbours and….Generations Real Estate Partners:- Michelle Hawthorne, Scott Johnson, Ray Harris, Shane Goutsis and Sheila Francis.