B.C. couple on the hook for real estate commission after sale of their properties fell through - CBC.ca | Canada News Media
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B.C. couple on the hook for real estate commission after sale of their properties fell through – CBC.ca

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A judge has ordered a B.C. couple to pay a $52,500 commission to the real estate agency that listed two properties they owned, even though a sale of the properties was never completed.

The judgment this week in the case of Mike and Jessica Armstrong’s two lots on Lake Errock confirms that the standard listing contract for homes in B.C. allows for commission to be collected as long as there is a legally enforceable contract of sale. It doesn’t require the sale to actually close.

“The commission clause does not refer to a closing or completion,” B.C. Supreme Court Justice Sheila Tucker wrote in a judgment on Monday

“The commission clause … discloses the possibility that commission can be owing under the MLS contracts without a closing on a completion date.”

The judge said the Armstrongs were on the hook for the commission to Century 21 Seaside Realty in White Rock, as well as legal costs. 

Seaside’s lawsuit had asked for a commission of $70,875 to be paid, but a disclosure of remuneration document capped the agency’s commission at $52,500, the judge wrote.

Tucker also dismissed a third-party claim filed by the Armstrongs against real estate agent Fabian Saul, and said he was entitled to his costs.

Agency fulfilled conditions of contract, judge says

The Armstrongs signed a standard multiple listing service (MLS) agreement with Seaside in May 2017 for their two rustic cabins on a quiet lake east of Mission, court documents show. They would later sign a limited dual agency agreement as well, allowing the brokerage to represent both the buyer and the seller in the deal.

In August of 2017, a company called Vans Intrust Investments, represented by Michael Tran, entered into an agreement of purchase and sale to buy the two lots.

The contract had to be extended once, but the eventual deal was to pay $1.35 million with a closing date in July 2018.

When the closing date arrived, the buyer was nowhere to be found, and $70,000 in deposits was forfeited to the Armstrongs.

Mike and Jessica Armstrong still own the two lots on Lake Errock. (Christian Amundson/CBC)

Seaside filed suit against the Armstrongs in 2020, demanding commission plus interest for the aborted sale. The Armstrongs later filed a third-party claim against Saul, alleging he’d breached his fiduciary duty and misled them.

In their response to Seaside’s claim, the Armstrongs alleged that the sales agreement was unenforceable because of a clause that stipulated the buyer would visit the properties before completion. They claimed they had failed to ferry Tran across the lake to see the lots after the agreement was signed.

But Saul had taken Tran to visit the lots at least twice, so “if the visit clause was a true condition, it was a fulfilled condition,” Tucker wrote.

And while the Armstrongs alleged that Saul had breached his fiduciary duty to them by failing to advise them they would have to pay commission even without a completed closing, the judge said there was no basis for that.

She pointed out that Mike Armstrong is a professional accountant, and the couple has bought and sold property before. There was no evidence suggesting they weren’t given enough time to read the listing agreement, she said.

She also said that the Armstrongs had failed to show Saul had fraudulently misrepresented himself by advertising that he can provide services in B.C. and Washington state.

Tucker pointed out that even if Saul had initially misled the Armstrongs about his ability to list the properties in the U.S., they still continued to work with him after learning it wouldn’t be possible, even signing the dual agency agreement.

Property records show the Armstrongs are still owners of both properties, now valued at more than $2.23 million in the 2022 assessments.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

The Canadian Press. All rights reserved.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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