Real Estate Updates

 

Any news or cases of concern are being brought up here for--YOU--my clients' review and feedback.  All these are or will be impactful to the environment where you put your investment in.  It is always good to be provided with useful knowledge and to be informed wherever issues are putting forward.

January 3, 2012

 

NO SURPRISE COSTS 

To prepare for and be aware of expenses of applicable taxes incurred when buying a home, there is a great website of BCREA for calculating HST payable, HST rebates, PTT, PTT exemption, etc.

 

find it at http://www.bcrea.bc.ca/government-relations/shelter-taxes/shelter-tax-calculator

 

 

February 3, 2012

USING A POWER OF ATTORNEY

When you are away at the time of closing a real estate transaction, there are few options to ensure real estate transaction closes in a timely manner and papers executed legitimately. The most common one is the use of a Power of Attorney ("POA").

 

In giving a POA, you (the "Adult") can authorize an individual (the "Attorney") to make decisions or perform tasks on your behalf.  The Attorney is allowed to sign pursuant to a POA.  You will have to make sure that all parties are acting in a professional manner.  The POA is given to a trustworthy person to avoid future difficulties or unneccessary adverse results.  The use of POA to sell, refinance, or purchase a property is workable.

 

General Points to Note

  • In most cases, a POA should be limited in terms of how long the POA is valid and to what purpose it is to be used.

 

  • POA is a document to authorize an individual to perform tasks or make decisions on behalf of another person, but only to make legal and financial decision for the Adult and not personal care or health care decision.

 

  • Unless specified, a POA is not self-expiring.  s. 56 of the Land Title Act states that when the POA expressly excludes the effect of s. 56 or it is an enduring POA, the POA is not valid for land title purposes 3 years after the date of execution.

 

  • Unless the individual is also the child, parent, or spouse of the Adult, an Adult cannot appoint an Attorney who is an individual compensated for providing him/her personal care and health care to the Adult or an employee of a facility providing personal care or health care services to the Adult.

 

  • A POA can be revoked at any time, so long as the Adult is capable.  In the circumstances such as the death of the Adult or court order, the POA terminates.

 

  • Unless the POA specifically permits, a POA cannot be used to transfer land to the Attorney.

 

  • Confirmation must be obtained from the lender on their willingness or requirements about using a POA when considering using POA to purchase or refinance real estate.

 

  • There must be specific wording in the POA to permit a transfer of property to the Atorney, if that is part of the refinancing transaction.

 

  • An Enduring POA has no expiration date, but is not commonly used for estate planning purpose.  It will remain valid when the Adult becomes incapable of looking after his/her own affairs.

 

  • A Non-Enduring POA may have an expiry date.  It is usually limited to a specific task while the Adult is away.