Trusted Tips and Resources

Trusted Tips & Resources

Recently sold your home? Robert MacKay your Trusted Regina Real Estate Lawyer expert explains how CRA may penalize you if you fail to report it.

It’s an exciting time – the old house is sold, the new one is ready, and all that’s left is the move…..oh wait – not quite yet! There’s all that legal “stuff” to deal with now….signatures….titles to be given…and pages and pages of documents that need to be signed before the key is in your hand!!! And to top it all off – who really knows a good real estate lawyer?

The Trusted Regina team is proud to bring you a partner that can help! Welcome Robert MacKay, Regina’s #1 Home Lawyer to Regina’s directory of excellence!

In this article Robert explains why you have to report the sale of you principle residence to CRA. 

Reporting the sale of a principal residence was unnecessary before 2016, the year the federal government announced a series of steps designed to slow the housing market down and close housing-related tax loopholes. Some people used the previous lack of scrutiny of gains from the sale of a home to their advantage, including investors flipping homes, and others who owned both a cottage and a house and weren’t conscientious about declaring which was a principal residence.

CRA says that if you forget to report the sale of a principal residence, you’ll need to amend your tax return for that year as soon as possible. Late reporting may be accepted in some cases, but it’s possible you’ll have to pay a penalty equal to the lesser of $8,000 or $100 for each complete month you’re late in reporting.

In most cases, you won't pay tax on the money you make from selling your home if it was your principal residence every year since you bought it.

If you sold property in 2017 or after that was, at any time, your principal residence, you must report the sale on Schedule 3, Capital Gains (or Losses) corresponding with the tax year and Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust). 

According to CRA here is why you must report the sale.

For the sale of a principal residence in 2016 and subsequent years, we will only allow the principal residence exemption if you report the disposition and designation of your principal residence on your income tax return. If you forget to make this designation in the year of the disposition, it is very important to ask us to amend your income tax return for that year. Under proposed changes, we will be able to accept a late designation in certain circumstances, but a penalty may apply.


For more information check out this article from Tim Cestnick with the Globe and Mail

Once you have committed to either buying or selling your property, simply tell your realtor and lender, as applicable, that Robert MacKay will be representing you and to forward the appropriate instructions to MacKay & McLean, attention "Robert MacKay". 

Robert MacKay is your Trusted Regina Real Estate Lawyer   


Trusted Regina Mortgage Brokers Skott Enns and Ryan Boughen share a tip on renewing your mortgage.


Mortgage Renewal Time?

If you have a mortgage, at some point it will come up for renewal (unless of course, you are really close to paying it off, and in that case – congratulations!!!). When this happens, it is important for you to know your options, so that you are not leaving money on the table or putting yourself in a situation which could cost you money down the road.

There are two primary reasons that you may want to leave your existing lender: rate being the primary one, and sometimes you may simply be unhappy with the service (or lack of) that your existing lender is providing to you.

Approximately 65% of clients will simply sign the first mortgage renewal form offered to them by their existing lender when. No questions asked. That is a mistake, and often a costly one. Don’t get me wrong, the easiest thing for you to do is to sign that form. No re qualification, no additional questions, things just keep humming right along… but here is the thing: the banks are also aware of the fact that two-thirds of clients will ‘just sign’, and guess what… the higher the interest rate they can get you to pay, the more money they make.


How often do you think they will have your best interests at heart when renewing your mortgage?


Negotiating a Better Offer Upon Your Mortgage Renewal



The reality is that at the end of that term, you are indeed a free agent! Get out there and play the field. Here is how I would recommend doing that.

Ask Your Existing Lender To Come To The Table With Their Best Rate

Again, there is no doubt that the easiest thing to do IS to stick with your existing lender, and if they are offering a competitive rate, then my advice will always be to stay there. However until you know what they are willing to do for you, it is difficult to determine what the best course of action is.

Call A Mortgage Broker

As a Mortgage Broker, we work with an array of lenders: big banks, credit unions, mortgage finance companies, private lenders etc. Once you have a rate from your existing lender, your Mortgage Broker will be able to run through the mortgage products that the various lenders are offering, and figure out whether or not you would save money by switching lenders. Once we are within 120 days of your mortgage coming up for renewal, if there is a better rate out there for you, we can lock it in.One other reason to avoid signing blindly is that life happens, and situations change… if you just got out of a 5 year fixed term, but have a growing family and recognize that you will likely be upgrading your home in less than two years, perhaps it makes more sense for you to consider a shorter fixed term or a variable term (where the penalty for breaking that term is only a 3-month interest penalty). A Mortgage Broker will help you to work through all of these scenarios.

 

A Quick Re qualification

In the event that you can save money by switching lenders, it is important to realize that you will need to requalify. However, in most cases, assuming your financial situation is similar or better than what it was when you first obtained the last mortgage, this shouldn’t be a big deal. Typically, you will require the following documentation:

  • A letter of employment confirming position, salary, and full-time/part-time status
  • A recent paystub
  • A copy of a recent mortgage/renewal statement from your existing lender
  • A copy of your house insurance policy
  • A copy of your property tax bill ensuring payments are up to date
  • A void cheque or PAD form for the bank account where you would like your new mortgage to come out of

Other Points to Consider When Renewing Your Mortgage

Please recognize that every mortgage is different, and if you are self-employed, a part-time employee, own rental properties or something a little outside the norm, additional documentation may be requested, but the above list will cover the majority of the paperwork. Clearly, it may take a little bit of time to gather these documents. It is up to you whether or not you believe it is worth it.

If I can save you $5,300 (recent real-life example) over the next 5 years through lower payments and interest savings, is it worth spending 2-3 hours collecting a little information? In my eyes, you are making $1,766 per hour if it takes you three hours…. Now there are a LOT of things that I would do if I was paid $1,766/hr to do them, even if they are not my favourite! I would teach myself to snowboard. I would eat plates of raw oysters. I would shop at WalMart. And I would definitely collect void cheques and paystubs if it meant I could save that kind of cash.

When switching lenders, there may or may not be fees involved. Discharge fees, appraisal fees, ‘legal’ fees can all be part of the switching process, HOWEVER, in many cases, these fees can be covered by the new lender. Again, best to discuss these options with your Mortgage Broker, and see what they can do to save you money.


One final point about moving lenders… 

Since October 2016 there has been a substantial rule change that has come into effect which does make it more difficult to qualify for purchasing a home today. That is the truth and there is no getting around it. However, if you are simply renewing your mortgage with a different lender, although you DO have to re qualify, you are grandfathered in under the pre-October 2016 guidelines… which is great news, and ensures that you have a much better chance of being able to move lenders if it makes sense to do so.

If you are looking for honest, unbiased advice from a mortgage broker in Regina they would love to talk with you!

Skott Phone 306-201-6500  Ryan Phone 306-570-3379 

No Time to set up an appointment! No Problem! You can also click here to apply now  with Ryan or apply now with Skott and get the ball rolling.

TMG The Mortgage Group Skott Enns & Ryan Boughen are Trusted Regina Mortgage Brokers

Trusted Regina Real Estate Lawyer Robert MacKay warns about the potential implications of renting your property.

Our Trusted Regina Real Estate Lawyer Robert MacKay want's to ensure Landlords are fully aware of the financial and legal issues that can arise from criminal activity conducted by a tenant.  

A recent article from the Star Phoenix "Regina landlords lose bid to make insurer pay for drug-house explosion" details how a local landlord attempted to gain compensation for the home from the insurance company.  The insurance company had denied their claim and pointed to a 2003 notice posted in a renewal package that stated simply: “We do not insure property used for the illegal cultivating, harvesting, processing, manufacturing, distributing or selling of marijuana.”

Even though the landlords claimed they took all reasonable steps to screen the tenant and his partner, who had children and were otherwise “model tenants.” There was simply no way for them to know the tenants were surreptitiously running an illegal drug operation in the home, they argued.  However Court of Queen’s Bench Justice Richard Elson rejected those arguments stating "changes to the policy were hardly “buried.” They came highlighted in a special box on the front page of the renewal form". Further, he noted that renting always carries an element of uncertainty — and landlords should be prepared for the worst.


How can a landlord limit responsibility for crime committed by strangers on the rental property?

Screen tenants carefully and choose tenants who are likely to be law-abiding and peaceful citizens. Weed out violent or dangerous individuals to the extent allowable under privacy and anti-discrimination laws that may limit questions about a tenant's past criminal activity.

  • Don't accept cash rental payments.
  • Do not tolerate tenants' disruptive behavior. Include an explicit provision in the lease or rental agreement prohibiting drug dealing and other illegal activity and promptly evict tenants who violate the clause.
  • Be aware of suspicious activity, such as heavy traffic in and out of the rental premises.
  • Respond to tenant and neighbor complaints about drug dealing on the rental property. Get advice from police immediately upon learning of a problem.
  • Consult with security experts to do everything reasonable to discover and prevent illegal activity on the rental property.
As in this case screening doesn't always help it can limit the possibility of being denied by your insurance company.  Ultimately the liability falls on the property owner to be aware of the possible issues that can arise from criminal activity.  

Before you decide to rent out a property consult with a lawyer such as Robert MacKay to be certain that you are aware of all the potential legal implications and your options.  

For more questions and help with any legal property issues consult with our Trusted Regina Real Estate Lawyer Robert MacKay



Full article:

Regina landlords lose bid to make insurer pay for drug-house explosion

Nine years after a "honey hash oil" operation sent a fire ripping through a Princess Street home, the tenants will have to pay more than $179K

ARTHUR WHITE-CRUMMEY, REGINA LEADER-POST Updated: May 29, 2018

Trusted Regina Real Estate professionals W2 Real Estate share a tip on common home inspection items

W2 Realty team share a tip on common home inspection items

The W2 Realty team are Karin Wees and Jen Welykholowa, two very well respected Regina Real Estate Agents from Realty One Real Estate Services Inc. The decision to purchase your home is one of the most important decisions you will ever make, and will also be one of your largest investments. Done right, it can also be one of the most exciting and fulfilling times in your life!

When you work with Karin and Jen at W2 Realty, you are getting a team of dedicated real estate professionals working together for your best interest. The W2 Realty team are Trusted Regina Real Estate Agents.

Karin and Jen.... The Regina real estate team dedicated to you making the "right move" 

A professional home inspection is generally a standard condition of your real estate purchase when you are buying a home and it's a super important part of the process!  There are a few normal maintenance items that come up regularly in inspections so as a seller it’s a great idea to address these issues prior to listing and help to make that part of the sale process go smoothly! Here are a few items of note:


  1. Furnace Maintenance & Service including regular changing of filters - Mechanical service is generally recommended every 12-24 months depending on the age of the furnace and cost will vary depending the extent of service & provider. Furnace filters should be changed often & length of time depends on the filter & your home environment i.e. if you have pets, etc.  To simplify the process we recommend buying the 4 pack and change them quarterly on the 1st of the month…then it’s easy to remember January/April/July/October.
  2. Water Heater maintenance - the regularity of service depends on the type of water heater but chances are if you have never had it serviced, you should!! Our Regina water is tough on our water heaters for sure and if you rent your heater, regular service should likely be part of your contract.  If not call any qualified plumber to help you out!          
  3. Proper Grading - this comes up more often than not because of ground or concrete settling near the foundation of your home. One of the biggest culprits of water issues in basements is improper grading so It’s super important that water runs away from your foundation. One of the simplest remedies is making sure that extensions on your downspouts are suitable …and at this time of year it’s the one thing you can address, as well as moving all of that snow away from the foundation walls.  Once it has melted you want to be sure that the ground level is taking water away from the foundation and it may require topping up the soil levels to accomplish that. If you’re not handy in that regard of course we have great landscape companies in Regina that can help out and make sure you get the right product to address the issue! 

 

If you have questions about the process of buying or selling a home we are happyy to help and don't hesitate to ask...you can contact us at info@w2realtyteam.com

We are your Trusted Regina real estate team and we are here to help you make the right move!


When you decide to work with an agent you should choose someone you feel comfortable with and trust to have your best interests at heart. We can answer your questions and concerns and provide referrals for staging, mortgage brokers, home inspectors, real estate attorneys, and pretty much anything else you may need in the purchase or sale of your home! We are your advocate and guide through the process.

Happy House Shopping!!

Karin & Jen

 

So make the smart and simple choice today, you see a Trusted Regina realtor is never a risk and W2 Realty are Trusted Regina Real Estate experts! 


Have a look at more amazing tips from the W2 Realty team which are sure to help you in buying or selling your home in the Regina and surrounding area:



    

Our Trusted Regina Realtor Peter Woldu shares a tip about how to sell your home

Peter Woldu is a Trusted Regina Realty Expert.  Here he shares a tip on selling your home!

Buyers do not see your home the same way you do. They are very discriminating about its condition, the neighbourhood and the price. An average Buyer will view between 15-20 homes, ranking yours among all that they have viewed

     

1. Find A Good REALTOR® To Represent Your Needs 

A professional REALTOR® is your best bet. This person has the educational background, the industry and community connections to work in your best interests.

2. Be Clear About Why You Are Selling 

Knowing the reasons for your move determines everything from setting the price to allocating funds for repairs and improvements. Is the price you obtain more important than how long your home is on the market? Do you need to sell immediately? Each “why”requires a different strategy. At the same time, you do not need to reveal your “why”to anyone. Something negative might be used as a bargaining tool at the negotiating table. If someone wants to know why you are selling, politely respond that your housing needs have changed.

3. Conduct Thorough Research Before Setting Price

 Establishing an offering price is an investment in your future. Find out what similar homes in your neighborhood have sold for in the last 6-12 months. Also check out the prices of homes currently listed. The price you ask should be within the range of similar homes in the neighbourhood. If it is too high or too low, buyers will question the reasons for this discrepancy. Your home could stay on the market longer than you would like. You may also have to adjust the price and wind up getting less than you hoped.



4. Maximize Your Home’s Sale Potential

 First impressions are absolutely critical. The look, the feel and the care of your home promote an emotional response. Even before they walk in your door, prospective Buyers will try to imagine themselves living in your home. Just like a new outfit, Buyers want to see if this home will "fit" their lifestyle. Clean everything until it sparkles. Pick up, organize, throw away, scrub, scour, dust and disinfect. Be sure to complete all minor repairs. Buyers are especially keen on work that may need to be completed.

5. Ensure All Areas Of The Contract Are Covered

 It is in your best interests to disclose everything you know about the property. Failure to disclose could result in costly delays, litigation or even cancellation of the sales transaction. Most importantly, if a Buyer knows about an item, he or she has no future recourse. Be sure you understand all terms, costs and responsibilities. 

6. Stay In Your Home Until Closing 

It may be harder to sell a vacant home. Furniture, drapes and all the excitement of daily activities go a long way to create the warmth and comfort of a home. To some Buyers, an unoccupied home could be seen as forlorn, forgotten and not as appealing. You might have to reduce your price, depending upon the Buyer. At the same time, you are sending the message that you have found a new home, and you likely need to sell fast.

7. Stay Out Of The Way During Showings 

When Buyers view your home, gently remove yourself and allow them to feel at home. By pointing out features, improvements and decorating items that are meaningful to you, or you have spent money on, you could be seen as adding pressure to the sale. It is best to leave the showing to your REALTOR®

To find out more about Peter check out his listing in the Trusted Regina Realty Category.


Categories

Previous Posts

ADDRESS

S & E Trusted Online Directories Inc
Trusted Licensee: Bonne Idée
TrustedRegina.com
1307 Ottawa Street
Regina, SK   S4R 1P3
Ph: 306.529.8558

GET THE APP

App Store Google Play
Follow us on Facebook Linked In Twitter YouTube RSS Feed
Abex
Abex
Stevies
Sabex
NEYA
Website hosting by Insight Hosting