Strata Tip | Earthquake Insurance and Calculating the Earthquake Deductible

strata corporations are not required to obtain earthquake insurance. That being said, purchasing a unit in a strata corporation that does not have earthquake insurance can pose significant risks, so it’s important to advise consumers accordingly.   It’s also important for your clients to be aware of how much they may be on the hook for, were an earthquake to happen and cause significant damage. By doing so, your clients will be able to make an informed decision on whether, or not, to obtain additional homeowner insurance, to mitigate their risks.   To calculate a strata lot’s earthquake deductible:   1. You need the following info: The strata’s current insurance policy, and from there: The Insured Value of the strata corporation, and The Earthquake Deductible, shown as a percentage (e.g. 15%). The strata lot’s Unit Entitlement. To calculate this, you’ll need: Schedule of Unit Entitlement (filed with the Land Title Office and known as a Form V, or if the strata was built pre-2000, this will be part of the Strata Plan). 2. You use the following formula: HINT: When using the formula, the earthquake deductible percentage should be expressed as a decimal (e.g. 15% should be entered as 0.15)     Disclaimer: The information provided is for general purposes only. It is not intended to provide legal advice or opinions of any kind. No one should act, or refrain from acting, based solely upon the materials provided, any hypertext links or other general information without first seeking appropriate legal or other professional advice.  

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My thoughts on the BREAKING NEWS: National Association of REALTORS® Reaches Agreement & Brantford Statistics in this weeks blog....

My thoughts... Consumers have a choice currently, whether to work with an agent or not, and ultimately even negotiate the fee for service.  In our current system consumers are free to choose who they hire or if they hire anyone. They can choose to have representation, no representation or limited multiple representation (not allowed in BC.) In addition, Realtors can choose what fee they will charge to provide representation.  It was once believed that allowing the seller to compensate an independent buyer agent to represent the buyers interest was a step in the right direction for true buyer agency.  Previous to this, it had been that the agent of the seller was also, indirectly the agent of buyer.  In what has been proposed in the settlement, we will be taking another step forward by no longer allowing a seller to compensate the buyer agent. Only a buyer can compensate their own agent, however, the seller CAN pay other closing costs via MLS co-operation offerings and this impacts the overall cost of purchase. Changing how representation services are paid for will impact the structure of purchase. I suspect mortgages may end up being adapted to allow buyers to afford representation or mortgage amounts being offset by seller offerings of other closing costs.  Buyers who want representation, and Lenders who prefer they have representation will also want to protect themselves from self-represented purchases.  The collective value of the MLS system and co-operation of Realtors offers value in its ability to match up home buyers and sellers and co-ordinate all what goes into such a transition.  Buying and selling a home can be a huge undertaking and a lot of moving parts to make it happen. If people could figure out how to do this on their own, they would have.  Technology create efficiencies that improve the home buying and selling experience, and utilizing all tools and resources in making expensive decisions is likely still going to be happening regardless of who pays for what. Arguably the buyers are paying for it indirectly in our current structure by the fact that it impacts overall purchase / sale price decisions. In addition, I feel it is important to note, the real estate profession is a difficult one to enter and sustain and only a small percentage of real estate professionals make it past 5 years in the industry. If it was easy, the success rate would be high, not low.   Changing the structure of the paperwork and improving transparency is good for everyone, in my opinion. The consumers will still need to make the same choices ultimately. At the end of the day people will still hire professional negotiators to represent their interests, they will still negotiate the fee and pay for that representation. The market forces determine what the market will bear for that service, as it does even now.  We have ample competition offering various options to consumers. Will be interesting to see this all play out both in USA and in Can…. break out the popcorn! 🤓🍿 Read the press release by accessing the link from the blog post CURRENT INTEREST RATES First-Time Home Buyers’ Tax Credit (HBTC) - FEDERAL INCOME TAXES Tips to Improve Your Credit Score You may be eligible for the New to Canada program that can assist with the purchase of a home with just 5% down on homes under $500,000. IN CASE YOU MISSED IT...MORE REAL ESTATE NEWS CBC News - Ontario minister says help is on the way for homeowners stuck with 'fraudulent' liens Toronto Star - Number of households missing mortgage payments soars alongside consumer, business insolvencies Toronto Star - 'We were sold a big lie': Hamilton tells Ancaster resort residents their tiny homes are illegal London Free Press - London begins first new public housing project in 50-plus years CBC Kitchener-Waterloo - Region of Waterloo one step closer to tackling affordable housing crisis Cambridge receives $13M in federal funding for housing (CTV News) Real Estate Magazine – Decline in affordable homes: MPAC data highlights shift in Ontario's property landscape CBC Toronto – How one Ontario city is using modular cabins to help with 'unprecedented' homelessness crisis Hamilton Spectator – Brant Land Trust acquires two unique properties in Brantford and Brant County The Record – 'It's like a tsunami of bad events that are happening to people,' lawyer says of housing crisis London Free Press – 1,000-plus new London apartments nearly ready, but it's not enough: Builders London Free Press – 20 empty acres. A 142-unit townhouse proposal. Lots of unhappy neighbours Brantford Expositor - Brant realtors see early start to spring market  CBC News Bank of Canada holds key interest rate at 5% again, saying it's still too soon for rate cuts The Bank of Canada has held its key interest rate at five per cent again, saying that it's still too soon to consider rate cuts while underlying inflation persists. Real Estate Magazine Canadian real estate market sees doubling of home prices over past decade Canada’s real estate market has seen much change over the last 10 years, thanks to interest rate changes, economic fluctuations, immigration increases, the impact of a global pandemic and more.   Bank of Canada rate cut watchers starting to look past the summer (Financial Post) Variable or short-term fixed mortgage? Where experts see the ‘sweet spot’ (Global News) Value of Canadian farmland rises 11.5% in 2023: report (Canadian Mortgage Trends) Equitable Bank’s mortgage arrears rate triples amid surge in renewals (Canadian Mortgage Trends) Average asking rent prices reach $2,193 in February, up 10.5% from 2023 (Canadian Mortgage Trends) Rising water: Quebec lender ending new mortgages in flood zones 'just the beginning (CTV News) Demand is soaring for prefab homes. So why isn’t Canada seeing rapid growth? (Global News) BoC Interest rate decision could bring homebuyers back to the market (The Globe and Mail) Globe and Mail - Canada Infrastructure Bank, First Nations banks strike $100-million loan deal to build projects faster Globe and Mail - What does it look like to tackle homelessness? Lessons from a city that tried Financial Post - 'All but rules out a cut in April': What economists say about the Bank of Canada's hold Financial Post - Bank of Canada rate cut risks igniting housing market CBC News - Bank of Canada worries a rate cut now could overheat the spring housing market Real Estate Magazine - Home inspections focus on detecting major risks for your clients Real Estate Magazine - Hope for first-time homebuyers: Equal opportunity in select Canadian markets despite savings disparities Real Estate Magazine - Canadians pause homebuying plans amid rising borrowing costs: Royal LePage Real Estate Magazine - How natural hazard and its catastrophic loss impact housing affordability, supply and demand Real Estate Magazine - Budget-friendly home staging tips: Transform the space without breaking the bank First National saw revenue rise 29% in 2023 despite drop in residential mortgage volumes (Canadian Mortgage Trends) Increasing productivity to address Canada’s housing crisis: Where are the gains? (CMHC) Canada poised for a 'very hot' housing market this spring (The Intelligencer) January sees drop in income required to pass mortgage stress test (Calgary Herald) They’re back: The GTA is seeing bidding wars once again (Real Estate Magazine) Globe and Mail – Best ways to renovate your home with a $10,000 budget Toronto Star – Renters have harder time accumulating wealth than homeowners: RBC economist Toronto Star – HUDAK: How to build homes families can afford Canadian Mortgage Professional – How big an impact does housing affordability have on quality of life? Canada’s next wealth divide? It’s renters versus homeowners, RBC says (Global News) What to know about refinancing in today’s real estate market (Real Estate Magazine)   Diana Winger, REALTOR® CNE, SRS, SRES, ABR Mortgage Agent, Level 1 Valko Financial LTD #13047 eXp Realty | Dominion Lending Centres |  226-705-3369 | 250-588-8839 ON YOUR TEAM! WingerRealEstate.com Housesforsale365.com   |   SearchBestMortgages.com  

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