View Vancouver BC Homes

Estoppel, to the non-initiated, sounds more like the newest toy in the Pentagon’s vast array of secret weaponry and armaments, something that belongs more to Area 51 than the real estate world, or perhaps the latest scandal to permeate Capitol Hill. “CIA’s Probe Leak: The New Martin Lochheed F-22 Supersonic Estoppel!”, one might envision reading one day in the front page of USA Today. But readers of my Articles know better …

In Real Estate, an “Estoppel Certificate” is a document signed by the Seller, under oath, confirming the representations made by the Seller in the Contract of Purchase and Sale. The reasons for the Buyer to request an Estoppel Certificate are twofold. First, to confirm the Seller’s representations as stated above and, secondly, to bar and prevent the Seller from later on asserting a fact, that is inconsistent with the terms of the Contract.

For instance, when purchasing a rental property – whether a house or an apartment building – an investor might want to insert the following two conditions precedent (‘subject to’ clauses). The first might read:

“Subject to the Buyer by ( insert date ) reviewing and approving the Residential Tenancy Agreement(s) presently in effect and covering the property herein bought and sold. Seller warrants that the term(s) of the tenancy is/are for a period of ( insert length of tenancy ), the monthly rent(s) is/are ( insert amount ) and that the last rental increase was on ( insert date )”.

What happens if, by the time all the subjects are removed (and the property is virtually sold) and the time the investor completes the transaction, the tenant is run over by a bus and dies? In some instances the market value of the subject property may be altered, as in the case of an investor purchasing a professional building. This is where an Estoppel Certificate fits in.

The second clause might read:

“Subject to the Buyer, after all the other subjects herein are removed but in no event before two weeks (or any other time) prior to completion and no later than one week (or any other time) prior to completion, receiving, perusing and approving an Estoppel Certificate ratified by Seller covering the existence and confirming the validity at law of the subject matter and terms of the tenancies herein. Failure by the Seller to provide such Estoppel Certificate in the aforesaid time-frame will render this Contract null and void, and all deposit monies until then paid by Buyer will be refunded to Buyer forthwith with interest accrued thereon, if any there be”.

The reason for Estoppel Certificates to exist in Real Estate is to be found in the equitable Doctrine Of The Promissory Estoppel. Under this doctrine, one party is barred and prevented from withdrawing a promise made to another party, if the latter has relied on that promise and acted upon it. All the more so, since contracts in real estate are made ‘under seal’ (deeds) and, as such, the rule of evidence arising from the special status of a deed is that the parties are expected to take greater care to verify the contents of the agreement and their validity at law, before consummating it.

The American Law Institute goes one step further by discerning between equitable and promissory estoppel in its Restatements of Contracts as follows:

“Equitable estoppel is distinct from promissory estoppel. Promissory estoppel involves a clear and definite promise, while equitable estoppel involves only representations and inducements. The representations at issue in promissory estoppel go to future intent, while equitable estoppel involves statement of past or present fact. It is also said that equitable estoppel lies in tort, while promissory estoppel lies in contract. The major distinction between equitable estoppel and promissory estoppel is that the former is available only as a defense, while promissory estoppel can be used as the basis of a cause of action for damages. The American Law Institute’s website can be found at http://www.ali.org.

All the foregoing simply goes to prove, once again, that the discipline of real estate wheeling and dealing is littered with rubbish all the way – until such time as a contract is entered into and ratified by the parties, at which time Real Estate suddenly becomes all too deadly serious.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

Article Source:

http://EzineArticles.com/?expert=Luigi_Frascati

---

Back with more news for you today. It’s amazing how much good information there is on this stuff out there if you know where to look. Three in particular that I found really valuable were…

Homes for Sale in Downtown, Nelson, British Columbia $248900

1145.00 sq. ft. Homes for sale in Downtown Nelson, British Columbia. For sale at $248900.0000 CAD. 111 High Street, Downtown.

Homes for Sale in Lands End, North Saanich, British Columbia $768000

2596.00 sq. ft. Homes for sale in Lands End North Saanich, British Columbia. For sale at $768000.0000 CAD. 1453 Honeysuckle, Lands End.

Homes for Sale in Rosebury Lane, Surrey, British Columbia $385000

2200.00 sq. ft. Homes for sale in Rosebury Lane Surrey, British Columbia. For sale at $385000.0000 CAD. 6465 184A Street, Rosebury Lane.

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

---

Many people in the lower mainland or Greater Vancouver area prefer to buy a resale of a house for either personal or investment use. In any educated decision there are advantages and disadvantages to this decision. Here are some general guidelines.

Top 10 Advantages

1. Generally the sale of a used home is less expensive.

2. A resale house has a lived in feeling that can sometimes be cozy.

3. Perhaps this homes architectural style is unique and not often used anymore in newer designs.

4. As time goes on, you can see whether or not problems will occur. They will most often occur within the first 5 years of home ownership. A competent and professional building inspector in the Fraser Valley can discern if there are nay problems in the houses design or construction. You can find building inspectors that work out of Vancouver, Richmond, Surrey, White Rock, Langley, Burnaby, Maple Ridge, Langley, Abbotsford, Mission and Chilliwack.

5. The landscaping of a re-sale is often mature and looks better then a newer home.

6. Your neighborhood will be established and has developed it’s own “character”.

7. Community services has been established over the years.

8. Previous owners or owner of the home may have installed upgrades to the home that you’d normally not receive if it were a newer home purchase.

9. You will not have to pay GST on the purchase of a resale of your home in British Columbia!

10. The area should have developed enough to include amenities surrounding the area to make your shopping easy and accommodating.

Top 10 Disadvantages

1. An older home may not have been built to current building standards and may not meet today’s electrical and insulation codes. Keep your eyes out for formaldehyde foam insulation as it is not to be in any homes according to BC’s new health codes.

2. Defects in the house construction are not visible or identified unless a through inspection is done by a building inspector. A buyer of a new home is covered by the a warranty legislated by the government.

3. If you buy a resale in a high density area, the property could be more expensive then a new home depending on the location of the home in the Fraser Valley. Most homes in Vancouver, Richmond, White rock and Surrey are more expensive then Langley, Abbotsford, Mission, Chilliwack or Aldergrove.

4. Older homes will often have an un-attractive or functional design. Rooms may be smaller of the layout is a poor setup. You can find low basement ceilings that make the area less usable and your comfort level / standard of living depreciates.

5. The hot water tank, roof, air conditioner, fridge, stove and other amenities may be out dated.

6. A new home will look modern, fresh and smells NEW!

7. Market evaluation of the newer house is easer because of similar comparable properties built in the area.

8. Many new home builders are registered with the New Home Warranty program in their Fraser Valley area’s.

9. As the fist one in the house, you have the advantage of being able to personalize the house to meet your own family’s needs rather then a remodeling job.

10. When buying a new home your home builder will offer you a design scheme which outlines the kinds of kitchen cabinets, carpet and color’s as an option. You will find these mostly in new condominium developments.

However, if the contractor has no previous history in the industry of building a new home in the Fraser Valley or Lower Mainland area be very cautious. The contractor could have been operating under a previous company name but went under a different company name. Consider the possibility that the contractor is a first timer and learning the tricks of the trade at your expense. Do a little bit of research with your local Greater Vancouver Realtor to find out the background of your contractor. When buying a new home construction, make sure your deposits are held in a trust account and not given to the developer as a stakeholder. There is that risk that the money is going directly to the builder and not being held in a trust account by a lawyer or a real estate company. Ask your realtor about this and make sure they are covering all their bases.

Our rental network helps to find quality homes, apartments or vacation rentals in Canada’s Fraser Valley area. Visit the website RentBurnaby.com [http://www.RentBurnaby.com] for more information on Fraser Valley Homes and Apartments for Sale or Rent [http://RentBurnaby.com].

Article Source:

http://EzineArticles.com/?expert=Thomas_Berten

 Mail this post

Technorati Tags: houses for sale in BC

Tags: houses for sale in BC