Agreements for Sale in BC

[MKBridge]

Hi All:

I took my real estate lawyer out for lunch last week to talk about Agreements for Sale in BC. It is legal and done in this Province! He has done many throughout his career and has no problem with it. He does complete them somewhat different than what Ron talked about, and I will get more clarification as questions arise. When he completes an Agreement for Sale, he wants complete disclosure and lets the lender know what is happening. He has never had a lender say no to the arrangement. He also completes the process in a way that the land transfer tax gets paid to the government (darn) but does include in the agreement a clause for the assignment of title so that the tax is only paid once at the beginning, not when the title goes into your buyers name. As with Ron`s course, you (or your corporation) ends up as a caveat on the title until the original seller is paid off.
So, for all those in BC who have not had luck with getting information from your RE lawyer, they just don`t know enough about this type of transaction. It is a legal transaction in BC. Good luck, Kathi

 

[EdRenkema]

QUOTE (MKBridge @ Nov 8 2009, 11:40 AM) Hi All:

I took my real estate lawyer out for lunch last week to talk about Agreements for Sale in BC. It is legal and done in this Province! He has done many throughout his career and has no problem with it. He does complete them somewhat different than what Ron talked about, and I will get more clarification as questions arise. When he completes an Agreement for Sale, he wants complete disclosure and lets the lender know what is happening. He has never had a lender say no to the arrangement. He also completes the process in a way that the land transfer tax gets paid to the government (darn) but does include in the agreement a clause for the assignment of title so that the tax is only paid once at the beginning, not when the title goes into your buyers name. As with Ron`s course, you (or your corporation) ends up as a caveat on the title until the original seller is paid off.
So, for all those in BC who have not had luck with getting information from your RE lawyer, they just don`t know enough about this type of transaction. It is a legal transaction in BC. Good luck, Kathi

Great post Kathi!
I will be attempting this on my BC condo soon.
Q: is the land transfer tax triggered at the time the AFS document is completed or when the actual title transfer occurs?
Also why does the lender need full disclosure before the deal is completed, if the document is signed and a downpayment is taken that is between the buyer and seller, the mortgage is a lien against the property and title has not yet changed hands, hence why doe the lender need to know.
Do I need to disclose to my lender every time I put in a new tenant??(no) - Just curious.

 

[MKBridge]

Hi Ed:
The land transfer tax occurs when the AFS document is completed.
One reason the lender is notified is so that where the money is coming from (ie bank account) is not questioned by them. It is also done this way to protect my interest in the property.
Also, this method is the way my lawyer likes to do things, not necessarily how others would do it.
And no, you would`nt need to disclose to your lender everytime you put a new tenant in the property. Until they take title, it is your interest that is registered on the title.
Hope things move quickly on your Kimberely property. Kathi

 

[Thomas Beyer]

QUOTE (EdRenkema @ Nov 8 2009, 04:17 PM) ..
Also why does the lender need full disclosure before the deal is completed, if the document is signed and a downpayment is taken that is between the buyer and seller, the mortgage is a lien against the property and title has not yet changed hands, hence why doe the lender need to know.
..
Because the beneficial owner changes !

Not doing it is an option but you risk a call from the bank and possibly demand to pay up ..

 

[EdRenkema]

QUOTE (ThomasBeyer @ Nov 8 2009, 05:57 PM) Because the beneficial owner changes !

Not doing it is an option but you risk a call from the bank and possibly demand to pay up ..

If I stay on title I`m still the owner and I`m still making payments - that is all the bank/financier cares about. They are not in the RE business and do not want to be, they are in the money business.
That said on my lawyer`s advice I disclose it to the lender, they still don`t care as long as I continue making payments.
They can call the loan at any time, possible-yes, likley-no, why? its not in their best interest, especially since the AFS shows some cash or cashflow.

 

[RussellWestcott]

QUOTE (MKBridge @ Nov 8 2009, 10:40 AM) Hi All:

I took my real estate lawyer out for lunch last week to talk about Agreements for Sale in BC. It is legal and done in this Province! He has done many throughout his career and has no problem with it. He does complete them somewhat different than what Ron talked about, and I will get more clarification as questions arise. When he completes an Agreement for Sale, he wants complete disclosure and lets the lender know what is happening. He has never had a lender say no to the arrangement. He also completes the process in a way that the land transfer tax gets paid to the government (darn) but does include in the agreement a clause for the assignment of title so that the tax is only paid once at the beginning, not when the title goes into your buyers name. As with Ron`s course, you (or your corporation) ends up as a caveat on the title until the original seller is paid off.
So, for all those in BC who have not had luck with getting information from your RE lawyer, they just don`t know enough about this type of transaction. It is a legal transaction in BC. Good luck, Kathi


Kathi, can you please drop me a note at the REIN office with the name of your lawyer... send it to info(at)reincanad(dot)com.

As well for REIN members in BC, Mark Warkentin is preparing a presentation for next Thursday night (at the BC REIN™ workshop), and will have BC specific documents in hand and some commentary how to use them.

Make sure you are there to hear all the details.

 

[Cargren]

QUOTE (MKBridge @ Nov 8 2009, 11:40 AM) ... He also completes the process in a way that the land transfer tax gets paid to the government (darn) but does include in the agreement a clause for the assignment of title so that the tax is only paid once at the beginning, not when the title goes into your buyers name....

Good info! Do you have to have a buyer and include the buyers name at time of signing, or can it be assigned in the future when if you don`t already have a buyer?

Rob

 

[MKBridge]

[quote name=`Cargren` date=`Dec 1 2009, 10:56 AM` post=`73126`]
Good info! Do you have to have a buyer and include the buyers name at time of signing, or can it be assigned in the future when if you don`t already have a buyer?

Rob

No It can be assigned in the future when you find a buyer. Kathi