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Newly Permitted Use Of Personal Real Estate Corporations For Ontario Real Estate Agents – Real Estate and Construction – Canada – Mondaq News Alerts

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Newly Permitted Use Of Personal Real Estate Corporations For Ontario Real Estate Agents

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On March 4, 2020, Bill 145 Trust in Real Estate Services Act, 2020
received Royal Assent, amending the Real Estate and Business Brokers Act, 2002
(the “Act”). Most recently, on October 1,
2020, Ontario Regulation 536/20: Personal Real Estate
Corporations
 (the “Regulation”) was filed and
came into force. As a result, Personal Real Estate Corporations
(“PREC”) are now permitted in Ontario. This means that
Ontario real estate agents can incorporate their business through a
PREC enabling them to take certain benefits of incorporation.

In order to qualify as a PREC, the PREC must satisfy the
following criteria:

  1. it must incorporate under the Ontario Business Corporations
    Act
    ;
  2. the real estate agent must be the
    PREC’s sole voting shareholder, director, and officer;
  3. all non-equity shares of the PREC, if
    any, must be owned by the real estate agent’s family members
    or trustees for the benefit of minor children; and
  4. there must be no agreement
    restricting or transferring the PREC’s sole director’s
    ability to manage or supervise the business affairs of the
    PREC.

If a corporation qualifies as a PREC, it will be exempt from
broker or salesperson registration requirements under the Act
assuming further additional criteria prescribed by the Regulation
are also met.

The main benefit of becoming a PREC for Ontario real estate
agents is the newly-opened tax planning avenues. Firstly, tax may
be deferred by keeping the remuneration paid from the brokerage to
the PREC in the PREC until the real estate agent requires the money
to be paid out of the corporation by way of a dividend. Secondly,
there are new opportunities for income splitting by giving family
members non-voting shares of the PREC and paying them dividends,
subject to the 2018 Tax on Split Income (“TOSI”)
rules and exceptions.

The main drawback of incorporation is the extra administrative
costs of time and money related to operating a corporation,
including hiring a bookkeeper or an accountant, associated legal
costs, as well as time and money spent on corporate filings.

Co Author by: Karlo Varga (Student-at-Law)

Originally published by Minden Gross, October 2020

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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Vancouver real estate: $2.5 million townhouse along Choklit Park, former home of Purdys, sells over asking price – The Georgia Straight

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For its location and views, it’s not suprising that this Vancouver townhouse beats a lot of single-family homes in price.

These also likely explain why the strata property at 1089 West 7th Avenue didn’t stay long on the market.

As well, the property sold over its listing price, when a buyer picked it up for $2,505,000.

The Fairview Slopes townhouse is located along a storied and unique green space, Choklit Park.

The 0.07-hectare park is associated with the legacy of Purdys chocolates.

“This site was formerly the location of the Purdy’s Chocolate factory, hence the name!”, according to the online parkfinder from the City of Vancouver.

The park is “tucked into a steep slope”, and comprised by a “series of steps and terraces with a beautiful collection of trees and shrubs”.

“Although tiny, the park is expanded with its views to False Creek and downtown,” the city notes.

Purdy’s made chocolates from 1949 until 1982 at what is now Choklit Park. Sold property indicated by red mark.
GOOGLE

The Vancouver Heritage Foundation recalls online that Charles Flavelle, owner of Purdys, said that the choklit spelling was suggested by one of the “hippie” carpenter crew that built the park.

“That’s the way a kid would spell it,” Flavelle was reportedly told.

The heritage association reproduced online the plaque recalling the history of the park:

Charles Flavelle of Purdy’s Chocolates created Choklit Park in 1970 on the unused Spruce Street right-of-way at 7th Avenue, using a crew of six hired on an “Opportunities for Youth” grant. The chocolate factory at 1107 W. 7th needed an improved truck-loading facility and the children in the neighbourhood needed an adventure playground. The crew used the right-of-way and all the available space around the factory for the children’s park. Purdy’s made chocolates here from 1949 until 1982.

Purdys Chocolatier moved to Kingsway in East Vancouver, where it continues to make and sell chocolates.

Engels and Volkers Vancouver listed 1089 West 7th Avenue on November 24, 2020, for $2,298,000.

After six days on November 30, the townhouse sold for $2,505,000 or $207,000 over its original asking price.

The transaction was tracked by fisherly.com, an online real-estate information site.

The home features two bedrooms and three baths.

The listing describes it as an “architectural oasis that will capture those in search of privacy, beauty and incredible views”.

The three-level concrete and brick townhouse includes three private decks, including one on the rooftop, which offer “panoramic city views”.

“Large master retreat includes rare solarium, perfect art studio/office/shop + custom closets,” the listing adds.

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Vancouver real estate: Shift on to big corporate landlords of apartment buildings

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Article content continued

Goodman describes the market as being balanced between the supply of and demand for listings, even though he is seeing more rental buildings for sale than in the past.

“While private investors made up the majority of vendors and purchasers in the first half of 2020, real estate investment trusts, or REITs and institutions are likely to increasingly emerge as buyers, particularly on larger deals, in the back half of the year and into early 2021,” according to a fall 2020 report by Avison Young.

Rental apartment buildings are seen as a very attractive and reliable investment for REITs and other financial companies in these uncertain times, said John Bunting of PwC Canada’s B.C. region real estate practice.

“It’s called (investing in) ‘beds and sheds,’ or the first basic needs of safety, security, shelter and food,” he said.

Bidding opened Monday for a package of 10 apartment buildings, with over 400 rental suites across Vancouver.

A family-run, Vancouver-based company, Hollyburn Properties Ltd., is selling these properties, which it has owned for decades. They make up almost a third of the 33 multi-family, rental buildings it owns in the Vancouver area.

Lance Coulson of real estate broker CBRE, which has the listing, and Hollyburn spokesperson Olivia Brown did not respond to questions and there is no publicly listed asking price.

Coun. Jean Swanson had a motion on the agenda for Vancouver city council last week, which mentioned the Hollyburn listing, picking it as an example of “a portfolio that could be attractive to REITS” because of its large number of buildings and units and its likely higher dollar value, she said.

Source: – Vancouver Sun

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Vancouver real estate: $2.5 million townhouse along Choklit Park, former home of Purdys, sells over asking price – The Georgia Straight

Published

 on


For its location and views, it’s not suprising that this Vancouver townhouse beats a lot of single-family homes in price.

These also likely explain why the strata property at 1089 West 7th Avenue didn’t stay long on the market.

As well, the property sold over its listing price, when a buyer picked it up for $2,505,000.

The Fairview Slopes townhouse is located along a storied and unique green space, Choklit Park.

The 0.07-hectare park is associated with the legacy of Purdys chocolates.

“This site was formerly the location of the Purdy’s Chocolate factory, hence the name!”, according to the online parkfinder from the City of Vancouver.

The park is “tucked into a steep slope”, and comprised by a “series of steps and terraces with a beautiful collection of trees and shrubs”.

“Although tiny, the park is expanded with its views to False Creek and downtown,” the city notes.

Purdy’s made chocolates from 1949 until 1982 at what is now Choklit Park. Sold property indicated by red mark.
GOOGLE

The Vancouver Heritage Foundation recalls online that Charles Flavelle, owner of Purdys, said that the choklit spelling was suggested by one of the “hippie” carpenter crew that built the park.

“That’s the way a kid would spell it,” Flavelle was reportedly told.

The heritage association reproduced online the plaque recalling the history of the park:

Charles Flavelle of Purdy’s Chocolates created Choklit Park in 1970 on the unused Spruce Street right-of-way at 7th Avenue, using a crew of six hired on an “Opportunities for Youth” grant. The chocolate factory at 1107 W. 7th needed an improved truck-loading facility and the children in the neighbourhood needed an adventure playground. The crew used the right-of-way and all the available space around the factory for the children’s park. Purdy’s made chocolates here from 1949 until 1982.

Purdys Chocolatier moved to Kingsway in East Vancouver, where it continues to make and sell chocolates.

Engels and Volkers Vancouver listed 1089 West 7th Avenue on November 24, 2020, for $2,298,000.

After six days on November 30, the townhouse sold for $2,505,000 or $207,000 over its original asking price.

The transaction was tracked by fisherly.com, an online real-estate information site.

The home features two bedrooms and three baths.

The listing describes it as an “architectural oasis that will capture those in search of privacy, beauty and incredible views”.

The three-level concrete and brick townhouse includes three private decks, including one on the rooftop, which offer “panoramic city views”.

“Large master retreat includes rare solarium, perfect art studio/office/shop + custom closets,” the listing adds.

More

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