Small question for the JV experts.

[Nir]

Hi Everyone,

I`m purchasing a Plex with a partner who will be both on title and on mortgage.
our JV agreement will define everything needed - 50/50 ownership, 50/50 net income etc.

I already have a few Plexes, never late paying my bills. Therefore, hydro, union gas etc. do not require any deposit when updating a new property under my name.

HOWEVER, for my friend it will be the first property. Should I get his authority to call Hydro on his behalf and tell them about our agreement etc. OR should we just pay the $2000 deposit? In other words, is there anything we can do about it, or because he is on title we must start all over again with them for this property?

Thanks,
Neil

 

[GarthChapman]

Why not open the account in both your names. Use your history to avoid the deposit and simultaneously build same for your partner.

 

[Nir]

Thank you Garth, good idea. will Hydro not require a match though between name on title and name on account? I think they get the initial update from the lawyers prior to closing, and that will NOT include my name. Are you saying I can call them/go there anytime after closing and just ask them to add my name to the account?

 

[GarthChapman]

Don`t know the mechanism on Ontario. In Alberta anyone can set up the account and pay the bill. Why don`t you call Hydro and explain to them what you are doing. Tell them you will be on the account with your JV and hence will not expect to pay the deposit. Surely they wouldn`t refuse that - they will have more security.

 

[Nir]

Thanks Garth, will do. sometimes it`s the secretary`s mood more than the province

 

[GarthChapman]

Do it in person, and bring your smile and charming nature...