The Seller Wants to Change the Closing Date?

Your deal is done, buyer and seller have agreed to all terms, the down payment has been made, and the moving date is set. But your seller gets in touch requesting to change the closing date. What now?

The good news for you is that whether they want to move the date up, or push it back, the final decision is entirely yours. You’ve signed a legal document contingent on the agreed upon closing date and it is up to you how flexible you can or would like to be.

The closing date of your home sale is not an arbitrary thing. The many moving parts of a real estate transaction rely heavily on this date, the adjustment of which can have a domino effect on things such as booking movers, the selling and closing of a previous home, personal timelines like holidays or the first day of the school year, and many more.

Whether it is the seller or buyer requesting the change in closing date, the other party MUST agree to the proposed date adjustment for it to go through. If both parties cannot come together on a new date, the seller in this case must honour the original closing and make arrangements to be out on that day.

If a seller suggests a possible closing date change and you are open to the idea, but you’d like to be compensated for the inconvenience, that is something that can be negotiated through your real estate lawyer and your agent. Depending on how close to the original date the seller would like to reschedule the closing, the upset in your sale might be minimal and therefore easier to accommodate.

Courtesy of the Chestnut Park Blog

The Importance of Chestnut Park’s Affiliation With Christie’s International Real Estate

Christie’s – the world’s largest fine arts auctioneer founded in 1766 – is the most important high-end international brand in the world today. As Christie’s exclusive affiliate for Toronto, our clients benefit from the world’s most powerful and prestigious organization for national and international marketing of luxury real estate.

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We are proud to be the exclusive Christie’s affiliate not only in Toronto but in Caledon, King, Simcoe, Collingwood, Port Hope, Prince Edward County, Muskoka, Lake of Bays, Haliburton, and the Thousand Islands.

Toronto Real Estate Market Update May 2013

The month of May produced statistics that continued the string of strong resale activity in the Toronto market place. Notwithstanding that May of this year did not exceed last May’s sales results, in historical terms May 2013 was an outstanding month. May of last year was the pinnacle of the 2012 market. Following May, and especially after the introduction of the more restrictive lending practices by the Federal Minister of Finance, the Toronto real estate market softened, and remained soft for the remainder of 2012.

In May the Toronto Real Estate Board reported 10,182 residential sales. This compares very favourably with the 10,544 properties that were reported sold in May 2012. This represents a mere 3.4 percent decline. As reported in previous up dates the market is not uniform, with some sectors outperforming others.

Up until May, the high end market was lagging, as compared to last year. This May the high end market ($1 million and higher) has made a resurgence. This May 702 properties in this category were reported sold. This compares with 668 that were reported sold in 2012, an increase of 5 percent. At the very high end ($2 million or more) 120 property sales took place, an increase of 20 percent compared to the 100 properties in this category that sold last year. Until this month high end buyers appeared hesitant to enter the market. Their perception of value and the exorbitant and offensive combined land transfer tax no doubt were responsible for the hesitation. It is too early to tell if this resurgence is due to reduced asking prices or pent up demand, or both.

At the other end of the market, the condominium apartment sector continues to underperform, but not nearly as poorly as has been forecast. Last year 1,632 condominium apartments in the City of Toronto sold. This year 1,499 were reported sold, a decline of 8 percent. The decline was more dramatic in the 905 region, with sales down by 16 percent. Despite these declines, averages sale prices remained strong. Average sale prices for condominium apartments in the 416 region increased 1.2 percent to $372,768, and even in the 905 region, where sales were very slow compared to last year, prices moderately increased by 0.9 percent.

The total number of active condominium apartment listings is also not unfolding as forecast. In May in the City of Toronto there were 5,003 active listings. This compares very favourably to the 4,930 that were available in May 2012, an increase of only 1 percent. If the average sale price for all property types continues to rise, condominium apartments, being the least expensive housing form in Toronto, could see a resurgence, particularly if the available listing base stays low.

At the end of May there were 22,677 active listings. This represents a 10.8 percent increase compared to the 20,462 residential resale properties available for sale in 2012. This number of available properties represents 2.8 months of inventory. In May of last year there was only 2.2 months of inventory. Notwithstanding this increase in supply, the available inventory remains historically low, and still in the range of a seller’s market. In the City of Toronto (416 region) the available supply is slightly higher, coming in at 2.9 months of inventory. The eastern trading areas remain the most active with only 2.2 months of inventory with sale prices on average exceeding the asking price, in some districts coming in with a sale to list ratio of 103 percent.

Sales in May continued at a very brisk pace. In the greater Toronto area all properties sold in 23 days. In the City of Toronto sales were achieved even quicker, in 22 days. As has been the case, sales in the eastern districts took place at a blistering pace, taking only 18 days for all properties on average to sell. The condominium apartment market remains the slowest. In the greater Toronto area all sales were achieved in 32 days. The same sector in the City of Toronto was faster, all sales occurring in only 30 days, another sign that the condominium apartment market is healthier than forecast.

It is not surprising that the average sale price continues to rise. Over 10,000 sales on average taking place in only 23 days will put pressure on prices. In May the average sale price for all properties sold came in at $542,174. This is a 5.4 percent increase compared to the average sale price of $514,567 achieved in 2012. Average prices in the City of Toronto continue to rise as well. A typical home in the City (416) now costs $600,791. The most expensive properties in Toronto are detached homes in Toronto’s central districts. The average price for properties in these districts is $1,335,879, and they all sold in only 19 days.

Going forward I anticipate that the market will slightly moderate, but not to the extent that it did in the second half of 2012. Rising inventory levels should ease the pressure on buyers, enabling them to purchase properties other than in competitive situations. Ultimately rising average sale prices will make some of Toronto’s real estate unaffordable, resulting in some moderation of sale prices. This scenario is likely to play out as we head into the last part of 2013. Over the next few months I anticipate a strong market, with month end data showing positive variances compared to the same month last year.

Prepared by: Chris Kapches, Senior Vice President and Legal Counsel Chestnut Park Real Estate Limited, Brokerage

Muskoka Real Estate Market Update Spring 2013

The Muskoka real estate market started the first third of the year in a slower gear than it did during the same period in 2012. This was true for the entire recreational marketplace, including Haliburton Highlands (where Chestnut Park now has a presence), Lake of Bays and the Muskoka Lakes. At this stage the explanation for this slower market pace is two fold. Early data indicates that substantially fewer properties have been listed for sale by sellers. Less inventory means fewer sales.

The explanation for the decline in available recreational properties for sale is due to weather conditions. The 2012 winter was extremely mild. Access was made easy, and the warm conditions in March and April resulted in numerous sellers listing their properties early in order to take advantage of conditions that were conducive to spring viewings and sales. The winter and early spring of 2013 have been the polar opposite of 2012. Substantial amounts of snow made access difficult, and weather conditions were anything but conducive to cottage viewings. In April the region experienced severe flooding, with many boathouses, and in some cases cottages, submerged in water. Even as this report is being prepared (early May) the lingering effects of the flooding in the region are still negatively impacting the recreational resale market.

In the first third of 2013 overall recreational sales as reported by the Muskoka, Haliburton, and Orillia Board were off by 26 percent. In 2012 130 sales had been reported, whereas only 93 were reported this year. Sales on the Muskoka Lakes, Lake of Bays, and in the Haliburton Highlands were all off by 20 percent. On the Muskoka Lakes from 25 to 18 sales, 20 to 16 on Lake of Bays, and 35 to 28 in the Haliburton Highlands.

Although the correlation to inventory levels is not identical, the connection between lower sales and available properties for sale is quite apparent. Total active listings at the end of April for the region were down by 20 percent, from 1027 in 2012 to 822 in the first third of this year. The Muskoka Lakes have seen a 17 percent drop in inventory from 240 available properties to 199. Lake of Bays shows only a 6.3 percent decline, from 110 to 103, with the highest decline in the Haliburton Highlands, from 295 to 231 available properties, a drop of 21.5 percent.

The first part of the year for recreational markets is not an accurate barometer of how the market will perform throughout the remainder of the year. There is no doubt that the pace of sales will increase, however, the assessment of the market at the end of 2012 continues to apply. The softening of sales throughout Canada, and in particular in the major metropolitan areas like Toronto and Vancouver will have an impact on recreational property sales. High-end property sales in Toronto have experienced a substantial decline. Although not all the factors impacting high-end property sales in Toronto apply to Muskoka and the region (i.e. the double land transfer tax) buyer resistance to real or perceived inflated prices will be the norm in 2013.

As was indicated in the year-end market report, the key to sales is pricing. Recreational properties represent discretionary purchases. In times of instability, that is broader markets that are showing some weakness, discretionary purchases, not driven by need, cause buyers to sharpen their pencils, ensuring that there is value to their purchases. Realistic pricing will always overcome the broader economic considerations that may be negatively influencing buyers.

Prepared by: Chris Kapches, Senior Vice President and Legal Counsel Chestnut Park Real Estate Limited, Brokerage

Toronto Real Estate Market Update April 2013

By any standards other than a comparison to April 2012, the Toronto residential resale market performed brilliantly this month. April 2012 was one of a string of months in the early part of last year that were on track to achieve record-breaking statistics. April 2013 will unfortunately be compared to last year, particularly by journalists, who only see the decline year-over-year, and not the absolute numbers achieved.

In April, 9,811 residential resale properties were reported sold. This is only a 2 percent decline compared to the 10,021 properties reported sold last year. As has been the case throughout 2013, the market remains disjointed with sales of various property types in various trading districts selling at practically light speed, with other property types finding some market resistance.

All properties in the greater Toronto area sold in only 23 days (on average). This is faster than the 24 days that sales took place in March. In February it took 28 days for properties to sell. The pace of sales, as well as the volume, has been accelerating as the year has progressed. In some trading districts the pace of sales was astounding. For example, all semi-detached properties in the eastern trading districts sold in a mere 10 days. All detached homes sold in only 15 days. Even in Toronto’s most expensive central districts all properties sold very quickly. Semi-detached houses sold in 16 days, and detached homes, which had an average sale price of $817,649, in only 18 days.

The drag on the market was the condominium apartment sector. In central Toronto, where more than 60 percent of all condominium apartments for sale are located, it took 31 days for sales to take place. Condominium apartments accounted for more than 30 percent of the entire greater Toronto inventory of properties available for sale in April.

Overall inventory levels are increasing as new listings come to market. In April 18,270 new listings were placed on the market by sellers, an increase of 10.9 percent over the 16,470 that became available last year. At the beginning of May there were 20,866 homes for sale in the greater Toronto area, an increase of 13.5 percent compared to 2012. There are now 2.9 months of inventory in the City of Toronto. Last year at this time inventory levels were at 2.2 months. Expect inventory levels to increase as the year unfolds. An increase in inventory levels may not impact the number or speed of sales, but it will definitely impact average sale prices, as we saw in April.

In April the average sale price increased to $526,335, one of the lowest year-over-year increases this year. April’s average sale price was only 2 percent more than the $515,888 achieved in 2012. This moderate average sale price increase was no doubt impacted by the still sluggish high-end market. In April 606 properties having a sale price of $1 Million or more were reported sold. In 2012 643 were sold, a decline of 6 percent.

A bright spot in the market was the increase in the average sale price for condominium apartments. Since condominium apartments account for such a large portion of the overall market, a decline in average sale prices will be negatively felt throughout the market. In April, however, the average sale price for condominium apartments in Toronto increased by 5.6 percent to $379,266. Unfortunately there was a 5.9 percent decline in the 905 region, but that marketplace accounts for much fewer sales than the City of Toronto.

The number of condominium apartment listings is higher than in 2012, but not the volume that was forecast. In April there were 4,755 condominium apartments for sale in Toronto (with 1,990 apartments in the 905 region). This is only an 8 percent increase compared to the same period in 2012. In the central districts, where most condominium apartments are to be found, there were 3,045 apartments available for sale. Last year there were 2,608, an increase of 17 percent year-over-year. 17 percent is not substantially higher than the 13.5 percent increase in listings in the greater Toronto area marketplace for all property types.

April finished strong, and there are no economic factors that would cause May to be any less active. Last May 10,545 properties were reported sold. That represented the peak of sales in 2012. Following May sales began to decline throughout the remainder of 2012. This year the opposite should occur with sales remaining strong, posting positive variances compared to 2012 to the end of the year.

Prepared by: Chris Kapches, Senior Vice President and Legal Counsel Chestnut Park properties in the Toronto area

Toronto Real Estate Market Report Spring 2013

There was a pronounced resemblance between the performance of the Toronto residential resale market in February and in March. In February sales were off by 15 percent compared to February of last year, while average sale prices rose moderately by 2.1 percent. Upon deeper review it became obvious that the market was fractured, with some sectors being very active, in some cases frenetic, while others lagged.

We see more of the same in March. March sales were off by 17 percent compared to March of 2012. Notwithstanding this decline in sales, average sale prices for all properties sold in the greater Toronto area rose by 3.8 percent. The Toronto Real Estate Board reported 7,765 properties sold in March. In 2012, 9,385 properties were reported sold. As in February, those properties that were sold were sold in almost record time, at speeds consistent with a strong seller’s market. In February all sales took place in 28 days. In March the pace of sales increased by almost 17 percent to 24 days. The pace of sales is inconsistent with declining sales.

The explanation for this inconsistency is to be found in the performance of the various Toronto market sectors. Properties coming to market with price points ranging from $300,000 to under $1,500,000 sold quickly, and for the most part in excess of the asking prices. For example, it was not uncommon for trading areas in the west and eastern districts of Toronto to report average sale prices (for the entire district) that exceeded the asking price. This phenomenon was less prominent in the central districts where house prices remain the most expensive in Toronto. In the central districts the average sale price for detached houses came in at $1,302,359 while semi-detached homes sold for $771,232, approximately $250,000more than semi-detached homes in the west and eastern trading areas.

The pace and the number of sales in the high end of the market and in the condominium apartment sectors continue to be a drag on the overall market. There were 11 percent few high-end properties ($1 Million or more) sold in March of 2013 compared to the same month last year. It should be noted that is a promising improvement compared to February’s results. In February the high end sector was off by 18 percent. The improvement was more dramatic for properties having sale prices in excess of $2Million. In February that marketplace was off by 27 percent. InMarch, the decline was only 7.6 percent compared to March 2012. In actual numbers, March saw 462 reported sales having a value of $1 Million or more (521 in 2012) and 72 having a value of $2 Million or more (78 in 2012).

The condominium apartment sector continues to lag.Whereas the overall market (including condominium apartments) saw all sales take place in 24 days (on average) in Toronto it took condominium apartments 32 days to sell, 33 percent longer. Central Toronto was slightly more robust with sales taking place in 30 days. Last year sales took place in 28 and 26 days, respectively. By comparison, detached and semi-detached homes in March were selling in less than 24 days and as quickly as 12 days in some trading areas (the eastern districts).

There are two aspects of the condominium apartment market that were encouraging in March. Firstly, average sale prices for condominium apartments actually increased by 2 percent compared to last year to $367,595. Secondly, the market is not being overwhelmed by inventory. In the city of Toronto there were 4,330 condominium apartment listings. This is only 8 percent higher than the number of listings on the market in 2012. In this regard the central districts, where the highest concentration of condominium apartments is to be found, did not fare as well. There condominium apartment inventories increased by 39 percent, from 1956 units for sale in 2012 to 2,733 in March of this year. It was also encouraging to see that in some trading areas sale prices of reported condominium sales were equal to or exceeded the asking price.

Going forward,April will no doubtmirror the performances of February andMarch. Some sectors of themarket will be extraordinarily strong, while condominium apartment sales, and less so high-end property sales, will be a drag on the market. At this time there is nothing in the economic forecast nor is there any likelihood that there will be any changes to the stricter mortgage lending requirements that would cause the market will move to a higher gear.

Prepared by Chris Kapches

Toronto Real Estate Market Update Winter 2012-2013

The Toronto residential resale market provided some intriguing data for the month of February. Looked at as a whole it would appear that it is undergoing a negative shift, the continuation of a trend that started in the second half of 2012 and has continued into this year. On closer inspection we see a fragmented market, with some sectors as robust as the record breaking pace of early 2012, and others clearly lagging, dragging the overall performance of the market into negative variance territory.

In February, 5,759 properties were reported sold. In 2012, 6,809 properties were reported sold by the Toronto Real Estate Board, a decrease of more than 15 per cent. Notwithstanding the decline in sales compared to last year, the average sale price increased, but more moderately than recent months. Last February the average sale price came in at $500,249. This year it increased to $510,580, an increase of 2.1 percent. Increases over the past few months have been in the 5 to 7 percent range.

Interestingly enough, the sales that were recorded took place at a pace normally associated with very robust markets. In February all reported sales took place in 28 days (on average) after they were listed. Any time the average days on market is less than 30 days it reflects a seller’s market, which is ironic in light of the fact that compared to last year, the market was off by more than 15 percent.

Last year, when the market was on pace to smash all previous records for sales, the average days on market was 24 days. A deeper analysis of the market indicates that some sectors and housing types are more robust than others. The high-end, or ‘luxury’ home, market is showing weakness compared to last year. Similarly the condominium apartment market is lagging compared to 2012.

In February 2012, 407 properties having a value of $1 Million or more were reported sold. This year that number declined to 334, a decline of 18 percent. The decline in the very high-end properties, having a value of $2 Million or more, has been even more dramatic. Last year 69 properties in this category were reported sold. That number declined to 50 this year, a decrease of more than 27 percent. This decrease has an obvious impact on the monthly average sale price.

It is difficult to pinpoint why this area of the marketplace is not performing well. One explanation is that buyers can no longer obtain a high ratio mortgage on properties with sale prices in excess of $1 Million. It might also be that the value of high-end properties, particularly with values in excess of $2Million, are no longer supportable. During the robust market between the spring of 2009 and last year, prices of high-end properties were strong. Perhaps they pushed the limits that the market could bear. With a second land transfer tax, purchases in excess of $2 Million become quite onerous. For example the combined provincial and municipal land transfer tax a buyer of a $2.5 Million property pays is an outrageous $92,200.

The other sector that is lagging is the condominium apartment sales. I do not believe, as is often reported in the press, that this is primarily due to an overwhelming increase in inventory. In the Toronto (416) marketplace, sales in February were down by 20 percent. Average sale prices declined by 4.7 percent. On average it took 36 days for a listed condominium apartment to sell, 33 percent longer than all properties in Toronto. Detached and semi-detached homes in Toronto sold very quickly, as low as 15 days in Toronto east end districts to 20 days in Toronto’s central districts. In comparison, condominium apartment sales are at best tepid.

Condominium apartment inventory has not increased dramatically compared to last year. The total number of condominium apartments available for sale in the Greater TorontoArea (416 and 905) was 5,458. Last year there were 5,066, an increase of slightly more than 8 percent. In the city, where the bulk of condominium apartments is to be found, the increase is less dramatic. Last year there were 3,712 available for sale. In February of this year there were 3,785, an increase of a mere 73 additional condominium apartments. Considering that sales are off by 20 percent, inventory levels have actually declined. It may be that we will see inventory levels grow as we proceed through the year, but it has not happened yet.

So the reputed cause for the slow down in condominium apartment sales cannot be attributed to higher inventory levels. Rather it is not doubt due to the restrictive mortgage lending rules that the federal government has implemented. Condominium apartments are usually the first and only choice for first time buyers. In the city of Toronto (416), the average sale price in February was only $352,614. There are reports that indicate that 17 percent fewer buyers qualify under the new stricter lending guidelines. A number that is not inconsistent with the 20 percent decline in the condominium apartment market in 2013.

Prepared by: Chris Kapches, Senior Vice-President and Legal Counsel

February 2013

1300 Yonge Street, Suite 100 Toronto, Ontario M4T 1X3 • P: 416.925.9191 • F: 416.925.3935

101 Reasons to Use a Realtor

Typical Pre-Listing Activities

1. Research Current Properties

2. Research Sales Activity from MLS and public records databases

3. Provide Average Days on Market Assessment

4. Review Property Tax Roll

5. Prepare a Comparable Market Analysis (CMA)

6. Verify Ownership and Deed Type

7. Verify County Public Property Records

8. Perform Curb Appeal Assessment

9. Provide Public School Value

10. Provide a Listing Presentation

11. Analyze Current Market Conditions

12. Present Credentials

13. Deliver CMA Results

14. Discuss Planning and Strategy

15. Explain Listing Contract, Disclosures & Addendum

16. Screen Calls from Buyers or Agents

17. Explain Homeowner Warranty

Selling the Property Activities

18. Review Title Details

19. Order Plat Map

20. Create Showing Instructions

21. Obtain Mortgage Loan Information

22. Review Homeowner Association Fees and Bylaws

23. Submit Homeowner Warranty Application

24. Add Homeowner Warranty in MLS

25. Review Electricity Details

26. Arrange Inspections for City Sewer/Septic Tank Systems

27. Collect Natural Gas Information

28. Provide Security System Status

29. Determine Termite Bond Status

30. Analyze Lead-based Paint Status

31. Distribute Disclosure Packages

32. Prepare Property Amenities

33. Detail Inclusions & Conveyances with Sale

34. Compile Repairs Needed List

35. Send Seller Vacancy Checklist

36. Install Lockbox

37. Make Copies of Leases for Rental Units (if applicable)

38. Verify Rents, Utilities, Water, and Deposits for Rentals

39. Inform Tenants of Listing for Rentals

40. Install Yard Sign

41. Perform Interior Assessment

42. Perform Exterior Assessment

Advertising and Marketing a Listing

43. Enter a Profile Sheet into the MLS Listing Database

44. Provide Copies of MLS Agreement

45. Take Additional Photos for MLS and Marketing

46. Create and Advertise Property Listing

47. Coordinate Showing Times

48. Create and Mail Flyers

49. Compare MLS Listings

50. Develop Marketing Brochure

51. Notify the Network Referral Program

52. Create Special Feature Cards

53. Analyze Feedback Emails and Faxes

Handling Offers and Contracts

54. Receive Offer(s) to Purchase

55. Evaluate Net Sheet

56. Counsel and Mediate Offer(s)

57. Deliver Seller’s Disclosure

58. Obtain Pre-qualification Letter

59. Negotiate Offers on the Seller’s Behalf

60. Mediate Counteroffers or Amendments

61. Fax Contract Copies

62. Deliver ‘Offer to Purchase’ Copies

63. Assist with Escrow Account

64. Distribute Under-Contract Showing Restrictions

65. Update MLS to “Sale Pending”

66. Review Credit Report

67. Deliver Unrecorded Property Information

68. Order Well Flow Test Reports (if applicable)

69. Order Termite Inspection (if applicable)

70. Order Mold Inspection (if applicable)

71. Confirm Deposit and Buyer’s Employment

72. Follow Up with Loan Processing

73. Communicate with Lender

74. Confirm Approval of Loan

75. Remove Loan Contingency

Home Inspection and Home Appraisal Activities

76. Coordinate Buyer’s Home Inspection

77. Review Home Inspector’s Report

78. Interpret Loan Limits

79. Verify Home Inspection Clauses

80. Contractor Preparation

81. Confirm Repair Completion

82. Attend Appraiser Appointment

83. Provide Appraiser Information and Remove Contingency

Closing Preparations and Actions

84. Ensure Contract is Sealed

85. Coordinate Closing Process

86. Coordinate Closing Formal Procedure

87. Assist with Title Issues

88. Perform Final Walk-through

89. Verify Tax and Utility Preparations

90. Review and Distribute Final Closing Figures

91. Request Closing Document Copies

92. Confirm Receipt of Title Insurance Commitment

93. Make Homeowners Warranty Available

94. Review Closing Documents

95. Confirm and Assist with Final Deposit

96. Coordinate with Next Purchase

97. Ensure “No Surprises” Closing

98. Final MLS Update

99. Follow Up and Resolve Repairs

100. Documentation Follow Up

101. Hand the keys to the new owners