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What Happens When A Party To A Contract Involving Real Estate Dies? – Real Estate and Construction – Canada – Mondaq News Alerts

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Canada:

What Happens When A Party To A Contract Involving Real Estate Dies?

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What happens when an individual buyer or seller dies prior to
the completion of a transaction involving real estate? This blog
post discusses the complications that can arise in real estate
transactions where there is a piece of land under contract and the
individual seller or buyer dies prior to the completion of the
transaction.

At common law, a contract may be discharged or set aside on the
ground of frustration where an unforeseen event renders the
contract physically or commercially impossible to
fulfill.1 Courts have considered whether the death of a
party to a contract for a real estate transaction amounts to
frustration of the contract, but have held that the contract will
only be frustrated if there is some personal aspect of the deceased
that was central to the contract. In a 1996 case called
Butterfield v Todd Estate, the deceased had entered into
an agreement with the plaintiff to jointly purchase a property and
share the mortgage and maintenance payments. The executor of the
deceased’s estate refused to fulfil the deceased’s
obligations under the contract. The British Columbia Court of
Appeal held that the estate was obligated to pay the deceased’s
share of the purchase price of the property and to share mortgage
and maintenance payments. These were financial obligations of the
deceased that were not something that only he was capable of
performing personally.2

Given the above, in most cases, if a seller or buyer dies prior
to the completion of a real estate transaction, then the obligation
to complete the transaction on behalf of the deceased falls to
their executor and is not extinguished by reason of such death.
There may be a delay to the completion of the transaction while an
executor or administrator is recognized to administer the
deceased’s estate. Such a delay may be particularly problematic
if the transaction is part of a land assembly, as the entire land
assembly and redevelopment process could be stalled.

In British Columbia, one way to minimize the delay caused by the
death of a seller is to apply to court on an urgent basis for a
limited grant of administration allowing the applicant to deal
specifically with the land under contract rather than any other
aspect of the deceased’s estate. The provisions of the
Wills, Estates & Succession Act give the courts the
jurisdiction to grant this type of relief.3 To obtain a
limited grant like this, the applicant must show that there are
special circumstances, that such an appointment is necessary and
that it does not prejudice the interests of the beneficiaries of
the deceased’s estate.

Footnotes

1. Naylor Group Inc v Ellis-Don Construction
Ltd
, 2001 SCC 58, paras 53-55.

2. Butterfield v Todd Estate, 1996 BCJ No. 826
(BCCA).

3. Berkner (Estate), 2017 BCSC 619.

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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Canadian Real Estate Prices Will Have A Hard Time With Higher Mortgage Rates: BMO – Better Dwelling

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Canadian Real Estate Prices Will Have A Hard Time With Higher Mortgage Rates: BMO  Better Dwelling



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Seeking BCREA Appointee to the Real Estate Foundation of BC – BCREA

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The BC Real Estate Association (BCREA) Board of Directors is seeking an appointee for the Real Estate Foundation of BC’s Board of Governors. This appointment term would commence April 1, 2022.

About the Real Estate Foundation of BC

In August 1985 the British Columbia real estate industry, in cooperation with the BC Ministry of Consumer and Corporate Affairs, established the Real Estate Foundation as a non-profit corporation under the Real Estate Act. On January 1, 2005, the Real Estate Services Act and the Real Estate Development Marketing Act replaced the Real Estate Act. The Foundation continued under the Real Estate Services Act.

The purpose of the Foundation is to undertake and carry out real estate public and professional education, real estate law reform, real estate research and other projects intended for the public or professional good in relation to real estate activities and to undertake and carry out projects and activities that the Minister designates as being in the public interest.

Call for Letters of Interest

Responsibilities include:

  • Governing in public interest;
  • participating in Board affairs;
  • understand the organization’s mandate;
  • participate in the development, review, and approve the strategic plan;
  • select, appoint, compensate, evaluate, and terminate the Chief Executive Officer;
  • review financial and corporate issues; and
  • review and consider staff grant recommendations.

The Board operates within the broad policy direction prescribed by section 93 (1) of the Real Estate Services Act.

If you are somebody who has the following attributes and competencies, we would love to hear from you:

  • strong real estate experience;
  • governance experience;
  • a commitment to advancing equity, diversity, and inclusion; and
  • a commitment to learning and strengthening relationships with Indigenous Peoples and governing entities.

For the full list of desired personal attributes & competencies, please click here.

While previous experience as a governor is not required, it is important that Governors understand the roles and responsibilities of a member of a not-for-profit governing board and have the necessary experience and demonstrated skills to enable them to contribute to board planning, decision-making and oversight.

Time and Term Commitment

The amount of time a Governor spends on Foundation business varies from month to month, and from person to person.  A Governor can expect to spend a minimum of eight in-person days on Foundation business throughout the year. This does not include committee, meeting preparation or travel time.

In addition, Governors are requested–individually or as a Board–to attend special events from time to time.

Each member is appointed for a one to three-year term and may serve up to six years in a row.

How to Apply

For the full Governor role description, click here.

If you have questions about the vacancy or wish to apply, please submit a letter of interest and current resume to the attention of the BCREA Nominating Committee at [email protected] by February 11, 2022.

The BCREA Nominating Committee thanks all applicants; however only those selected as potential candidates will be contacted.

To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.

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Another record month for Woodstock-area real estate market – Woodstock Sentinel Review

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While the number of home sales in Woodstock hit a record high last year, real estate officials predict the ongoing shortage of housing inventory will continue throughout 2022.

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While the number of home sales in Woodstock hit a record high last year, real estate officials predict the ongoing shortage of housing inventory will continue throughout 2022.

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Last year, home sales totalled 1,888 units in the Woodstock area, Woodstock-Ingersoll & District Real Estate Board officials said, which was a 10.2 per cent increase from 2020.

Anthony Montanaro, the president of the Woodstock-Ingersoll & District Real Estate Board, said the surging home sales and scarcity of new listings were simply the result of an increased demand for housing.

“It’s basically the old supply and demand. Woodstock is in a lot of demand from outside our area,” Montanaro said.

He says this heightened demand is primarily coming from buyers in the Greater Toronto Area.

“A lot of people are migrating down the 401 (and) 403 corridors going out west, but we are also seeing some migration from Kitchener, Guelph and the Hamilton area,” Montanaro said.

Because of this new migration leading to a higher demand, the Woodstock area’s current housing shortage has only become worse.

“Although the number of newly listed properties during December was well above average for this time of year, it was still insufficient to keep up with the seemingly endless demand. As a result, overall inventory has dropped below 40 active listings for the first time in history. Without an influx of new listings, the ability of buyers to find a home that suits them will soon become severely limited,” Montanaro said.

At the end of this past month, active listings had fallen to 36, a sharp decrease of 39 per cent from December 2020. This was the lowest number of active listings for the month of December in past three decades, real estate officials said.

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Despite this shortage, Montanaro said that demand will only continue.

“There’s no inventory – the demand is tight because of that – so it’s going to be more of the same. We are going to see repeats of this going forward into 2022,” he said.

A recent population study by Ontario’s Ministry of Finance also predicts Oxford County’s population will increase by more than 35 per cent by the year 2046, adding to the demand on the local market.

In light of this, Montanaro said there are more and more buyers competing for the same homes, resulting in “multiple-offer situations” and contributing to rising home prices in the region.

“It’s being fuelled by people coming from the Greater Toronto Area area,” Montanaro said.

The benchmark for home prices – measured by the MLS Home Price Index, which was used to calculate the standard prices of houses in the region in December 2021 – had reached $641,400, a 32.4 per cent from December 2020.

The total dollar value of all homes sold last month was $82.4 million, a 56.2 per cent jump from last December and an all-time record for the month.

“With fierce competition for such few listings, it’s no surprise that both average price and the (benchmark price) set all-time records in December,” Montanaro said.

Looking ahead to 2022, Montanaro said the market would be dictated by inventory levels.

“If inventory starts to increase, then I think you can see prices kind of level off but, if the demand is still there – which we forecast that it still will be there – and the inventory is low then, yes, I can see prices increasing a little bit this year,” he said.

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