Harry Mitz was an elementary school dropout, but a streetwise, wheeling-and-dealing entrepreneur who could make “money out of crap,” according to his son, Lewis.
Real eState
The mystery of a tiny Toronto laneway that sparked a historical real estate drama
He earned a fair penny at it, too, more than enough to buy a Cadillac for his wife that, given his humble beginnings, he was too embarrassed to drive himself. Instead, he preferred the mid-range Buick that he parked in the narrow laneway directly behind 185 King, securing access to the spot with a lock and chain.
Mitz passed away in 2000, whereupon his son, who spent Saturday mornings in his father’s machine shop as a child but grew up to be a real estate lawyer with a thriving practice in the building his father paid $4,500 for in 1941, started parking his Chevy Suburban in the laneway. He would move his vehicle, as Harry had before him, when the neighbours to the west, the Lazareks, asked for permission to access the rear of their furniture store.
Strange discovery
Such was life, and commerce, until the younger Mitz sold his property for about $4 million to developer Steve Gupta, who subsequently bought the Lazareks out for several millions more and proposed to build a 33-storey, mixed-use tower on the site — with parking for 33 cars.
“This was strange,” he said.
What transpired next was a most unusual Toronto real estate drama, featuring a professional genealogist, some lawyers and, ultimately, a courtroom tiff where some of Boulton’s great-great-great-grandchildren — who may or may not have heard of the man prior to the summer of 2022 — argued that the lane, and presumably whatever monetary value could be attached to it, was theirs.
“The lane was a critical part to Gupta’s future,” Mitz said. “Gupta didn’t have a future without it.”
Hidden gems
Canadians have a particular enthusiasm for residential real estate, given both its intrinsic and financial value to those lucky enough to be homeowners. But not a lot of attention is paid to the thousands of small property chunks sprinkled about the urban landscape, sometimes in laneways, and Toronto has more than 3,000 of them alone, sometimes not. And sometimes these parcels are so inconsequential that their owners, like Boulton, die without leaving them to an heir.
Known as “orphaned” land in the industry, these properties tend not to attract much notice from anyone — assuming they have been noticed at all — until someone comes along to build something upon them, such as a condominium.
The stakes are high. A hypothetical heir emerging from the woodwork waving a will, or other legal document, that proves the lone-gone relative bequeathed the land to their great grand-dad who, in turn, left it to their grand-dad and so on would put that heir in position for a major payday, particularly in Toronto or Vancouver, where prime downtown real estate doesn’t come cheap.
That explains the friendly voicemail Vanessa Grafi received last summer from Jeff Stewart, a forensic genealogist and a generally polite, soft-spoken man, who earns a living rooting around in the past for clients, including Sood and his colleagues, at Aird and Berlis LLP.
It turns out, Henry John Boulton originally bought a chunk of land known as Lot 21 at the corner of King and George Street in 1824. This was prime, practically waterfront Toronto land. At the time, Boulton, a barrister’s son and grandson of Sir John Strange, a “master of the rolls,” was just a few years shy of being appointed attorney general of Upper Canada. In other words, he was an extremely well-connected bigwig.
There is no mention of the laneway in his last will and testament dated Dec. 17, 1869, and when he died the following year, he left the “balance arising” from the sales of his property to be divided among three of his children, Sophia (Boulton) Forlong, Clara Louise (Boulton) Cayley and George D’Arcy Boulton, all of whom were dead by 1898. (Adding to the mystery of the laneway is why Boulton cut five of his kids out of his will, but we digress.)
Grafi’s mother was an enthusiastic amateur historian and enjoyed stories of the past, but there was never any talk about an orphaned laneway until a genealogist called to fill Grafi in.
“It was a fun find,” she said. “And it happens: a long-lost lot looking for relatives, for plans to develop.”
Alas, there was no smoking will in a safety deposit box indicating Grafi had, by way of her ancestors, inherited the lane. Learning more of her family’s history was payment enough, she said, and she left it at that.
But not every Boulton descendant was willing to let go of the lane, or the past, so easily.
Courtroom drama
Patricia Hertzberg, an artist, and a handful of other members from the Boulton bloodline several generations removed, went to court to oppose the developer’s application seeking a declaration that they owned the laneway behind 185 King.
It did not go well for the descendants, none of whom could produce a will, or any paper evidence, proving they had any legal right to the lane.
“The land does not belong to them as a group or individually because they trace roots to an owner 200 years ago,” Ontario Superior Court Justice Fred Myers said in a December 2022 decision. “This is not a close call.”
But in court filings, she more fully articulated her motivation to fight for ownership.
“When we learned there was property in downtown Toronto, belonging to our ancestor, where a high-rise development was planned, we were expecting potential compensation,” she said. “However, when we received an application asking the court to simply grant the developer full title to the land, with no compensation to the descendants, we were offended. It felt like an egregious affront to our family.”
Squatter’s rights
An entrepreneur with a keen eye for action, but apparently not for the fine print, Harry mistakenly believed he had bought the lane behind 185 King when he bought the property. Lewis believed the same. They parked in the lane for 75 years to the exclusion of anyone else, save for those occasions when they gave a neighbour, contractor, friend or anyone else express permission to park in the spot.
The chain securing the lane appeared in the early 1970s. Claiming, however mistakenly, the lane as their own, and occupying it as such for a decade (and more) “shows that they exercised the rights of an owner,” Myers said in his decision.
In March, Lewis Mitz stood across the street from the lane that caused the whole kerfuffle. There were three orange construction pylons set in front of it. The chain he and his father put there was still in place.
The 77-year-old was tanned, having recently returned home from a trip to the Bahamas. He wore a brown leather jacket, scarf and stylish glasses, and carried an old leather briefcase that you could imagine a practicing lawyer with more than 50 years’ experience lugging around.
“It is inventory,” he said. “You carry the memories with you.”
His recollections of the Boulton descendants who surfaced in court after the genealogist had done the legwork of finding them were unsentimental, too.
“I am going to be 78 soon, I’ve been around, it is not my first rodeo, and when it comes to money I don’t have to say anymore: they were looking for a payoff,” he said. “They couldn’t prove anything. They thought, ‘Aha, this is my opportunity.’”
Tacked onto the front of 185 King today is a City of Toronto development proposal depicting a tower rising on the land Henry John Boulton purchased in 1824.
The notice makes no mention of the laneway out back.
Real eState
Mortgage rule changes will help spark demand, but supply is ‘core’ issue: economist
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
The Canadian Press. All rights reserved.
Real eState
National housing market in ‘holding pattern’ as buyers patient for lower rates: CREA
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
The Canadian Press. All rights reserved.
Real eState
Two Quebec real estate brokers suspended for using fake bids to drive up prices
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
The Canadian Press. All rights reserved.
-
Politics8 hours ago
New Brunswick Premier Blaine Higgs expected to call provincial election today
-
Media8 hours ago
Sutherland House Experts Book Publishing Launches To Empower Quiet Experts
-
News19 hours ago
Alberta Premier Smith aims to help fund private school construction
-
Investment7 hours ago
Canada’s Probate Laws: What You Need to Know about Estate Planning in 2024
-
Politics7 hours ago
New Brunswick Premier Blaine Higgs kicks off provincial election campaign
-
Sports3 hours ago
Former Canada captain Atiba Hutchinson tells his story in ‘The Beautiful Dream”
-
News8 hours ago
Quebec won’t fund graphite mine project tied to Pentagon; locals claim ‘victory’
-
News19 hours ago
Health Minister Mark Holland appeals to Senate not to amend pharmacare bill