Professional Corporation | Barristers, Solicitors, Notaries Est. 1955
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Updates

Jul24

Structuring Your Company’s Share Provisions: Involve Your Lawyer and Accountant

Categories // Updates

One of the key considerations when incorporating a new company is how to structure the share provisions in the articles of incorporation. These provisions will dictate the number of shares the corporation can have (i.e., authorized capital), the different types or “classes” of shares (e.g., common, special, preferred, etc.), and the share attributes attaching to each class of shares (e.g., the right to vote, to receive dividends, to receive the remaining property upon the corporation’s dissolution, liquidation or winding-up, etc.). Because the decision to create a corporation or amend one’s existing share provisions is typically driven and influenced by tax considerations, it is always recommended to consult your accountant before having your lawyer draft such share provisions.  In addition to complying with the governing corporate laws surrounding share structures for private corporations, you will want to ensure they are prepared in such a way that will allow you to take advantage of possible tax incentives that may be available to you based on advice from your accountant or other tax professional.

Jun25

Protecting Your Interest in Land Via Registration of a Notice or Caution Against Title

Categories // Updates

There is a well-known term in law called “a bona fide purchaser for value without notice”. It refers to a person who has purchased a property for some value (i.e., not as a gift) without receiving notice of any other party’s competing interest in such property. The significance of such label in the real estate context is that the purchaser for value without notice will take good and valid title to the real estate despite competing claims of other parties to the property where such competing claims are not made known to the public via registration against title.

May23

Have a Mortgage on Your Property? Don't Forget to Read the Standard Charge Terms

Categories // Updates

In the majority of residential real estate purchases, the purchaser must obtain a mortgage in order to finance the purchase of the property. In these mortgage transactions, the borrower is known as the “Chargor”, while the lender is called the “Chargee”. Most people understand the general concept of a mortgage: it is a type of loan where a lender agrees to loan a significant sum of money (at a specific rate of interest) towards a borrower’s purchase of a property in exchange for such property serving as the borrower’s collateral. Most people also understand the concept of interest rates, the term, amortization schedule, and approval process. However, for many Chargors, the extent of their knowledge and focus on mortgages ends there. Just as important to understand is that when a mortgage is registered on a property (called a “charge”) to secure the Chargee’s loan, a set of Standard Charge Terms (SCT) is also incorporated by reference into this registered charge. The SCT can vary from Chargee to Chargee, but there are key commonalities in most SCT that every Chargor should read and consider. 

Apr24

How Marijuana Legalization Will Shake Up the Residential Real Estate Industry

Categories // Updates

The summer of 2018 will see the federal government pass historic laws that will allow Canadians to smoke, eat or vape marijuana in their homes and grow up to four plants per household. Known as Bill C-45, the Cannabis Act, this legislation when passed will undoubtedly cause a stir in the residential real estate industry as it will affect homeowners, agents, brokers, insurance companies, home inspectors and lawyers. The new laws surrounding cannabis and its use may force many key players in this industry to adapt and change their terms, criteria and policies that expressly or impliedly involve marijuana.  For instance, existing home insurance policies, standard mortgage terms, condo corporation rules, and nuisance laws may need to be revisited and possibly amended to coincide with these new laws on marijuana use and grow-ops.

Mar22

The Co-Ownership Agreement: What is it and How is it Useful?

Categories // Updates

In today’s real estate market, with rising interest rates and stricter mortgage rules, it is becoming more and more difficult and unrealistic to afford a home using your own means alone. We have been noticing an increase in parents helping their children buy their first home by agreeing to co-sign on their mortgage and/or providing the bulk of the down-payment funds. There has also been a more pronounced need for adding people on title and on the mortgage in order to qualify for a mortgage or mortgage re-financing. More unique is the recent trend of real estate speed-dating events, where people can meet strangers interested in purchasing a home together by pooling their funds and credit scores; through this arrangement, each of them can finally break into the property market and start to build that tantalizing homeowner benefit: home equity.

Feb22

Do I Have a Legally Binding Contract?

Categories // Updates

While it may seem like a simple answer, at times many people do not truly know whether they have a legally binding agreement with another party, or what basic principles are actually required for contract formation. Have you thought there was a contract in place but the agreement was not binding? Have you been party to a binding contract when you thought you were still trying to reach an agreement? Misunderstandings around the basics of how and when a contract is created can lead to numerous and potentially severe consequences for parties doing business together.   

Feb01

Protecting Your Children's Inheritance When in a Second Marriage

Categories // Updates

Second marriages are becoming more and more common in today’s society. In such marital situations, it is typical for the spouses to have their own children from a previous relationship. Although each spouse may want to ensure the surviving spouse is looked after upon one of their deaths, their more primary concern is usually ensuring that the majority of their assets pass to their own respective children. It is important that you understand your legal rights and options in relation to your spouse's estate when in such second marriage situations.

Jan02

Lease Provisions Every Commercial Tenant Needs to Understand

Categories // Updates

A commercial lease can be for a business of any type and size. It can be a lease to run a convenience store, a large manufacturing facility or a retail space in a mall.  Such leases are often very lengthy documents filled with legalese and are almost always drafted to favour the landlord’s rights. They generally bind the parties for several years and include major contractual commitments and obligations.

Nov20

Creditor-Proofing Techniques for Your Incorporated Business

Categories // Updates

Whether you’ve built your own business from the ground up or have been tasked with taking over the long-time family business, it would be prudent to ensure the hard-earned assets contained in your business are protected as much as possible from third parties, namely creditors.  Creditor proofing for a business owner means protecting significant business assets from exposure to potential future creditors – that is, from persons who may have legal rights against the business and its property for various reasons (e.g., for money owed). Although the law in Ontario generally prohibits creditor-proofing techniques performed with improper intent, such as those that hinder or impair the rights of existing creditors, it is perfectly acceptable (and highly recommended) to organize your business’ affairs in a way that reduces the risk of the business’ property becoming vulnerable to the claims of future creditors. There are numerous methods of structuring your business to minimize creditor risk that can and should be implemented to safeguard your business’ assets.

Oct20

Implications of Assisting a Child With Buying a Home

Categories // Updates

A combination of high real estate prices and new mortgage rules designed to restrict risky lending have led to an increase in parents opting to assist their children with purchasing their first home. Desperate, cash-strapped millennials looking to finally break into the hot housing market are turning to the "bank of Mom and Dad" in record numbers for the financial help they require. Many times, the parents are helping a child reach the 20 per cent threshold for a downpayment, which could help save them thousands, because they will not need the government-mandated mortgage default insurance. However, there are numerous legal considerations to take into account for both the parents and the child when entering into this sort of home purchasing arrangement.

Sep20

How and Why You Should Keep Your Corporation's Minute Book Up to Date

Categories // Updates

A corporation’s minute book is a story of the corporation’s life from beginning (incorporation) to end (dissolution). Although maintaining a full and complete corporate record is likely the last thing on a business owner’s mind, it can critical and essential that your minute book is updated to acknowledge the current state of affairs of the corporation. Minute books are relied upon by lawyers, accountants, lenders and third party purchasers for various important reasons, and an updated minute book provides certainty in many critical situations. Moreover, a current and accurate minute book is mandated by law.

Aug18

Vendor Take-Back Mortgages: An Alternative Home Financing Route

Categories // Updates

With mortgage interest rates on the rise and the housing market shifting to a more buyer-friendly version, we may begin to notice a resurgence in vendor take-back (VTB) mortgages. Although more commonly used in commercial real estate transactions, a VTB mortgage can used as a creative financing strategy in residential deals as well. Prospective purchasers having trouble securing a mortgage with a traditional lender due to their poor credit or inability to make a large enough downpayment are prime candidates for a VTB mortgage.

Jul03

Getting Out of the Deal: The Buyer's Dilemma

Categories // Updates

The real estate market in these last few months has taken quite the turn - the strong seller's market has subsided and some may even argue that we are entering a buyer's market. One of the significant consequences of this recent and abrupt shift is buyers wanting out of their executed agreements of purchase and sale. Why? They signed such agreements in the hot seller's market (likely sometime before March 2017), but their closings are during this cooler spring/summer, more buyer-friendly market. Accordingly, they believe they've overpaid for such properties, seeing as how similar properties in the area are now listing at much lower prices. They have the classic case of "buyer's remorse". 

Jun06

Buying or Selling Real Estate Privately: Reviewing the Offer

Categories // Updates

Buying or selling real property privately means that a real estate agent or agents are not involved in the process. In today's market, we are seeing more and more of these private deals cross our desks. The obvious benefit for both parties in such private deals is that no real estate commission is payable on the transaction.  As such, buyers can usually negotiate a lower purchase price as sellers do not have to pay any of this commission out of their sale proceeds: it's a win-win.  Nonetheless, in the absence of real estate agents, parties wishing to buy or sell real estate privately should always consult their real estate lawyer before the private offer becomes binding. 

May29

Deposits on New Homes: Know Your Rights and the Risks

Categories // Updates

Like in all agreements of purchase and sale ("APS") for real estate, buyers of new homes are required to provide a deposit or multiple deposits to secure the agreement and as an offer of confidence to the builder that the buyer is serious in completing the deal. The difference in providing deposits towards new homes versus resale homes is that deposits for new homes tend to be larger, especially when buying a pre-construction home. Because of this, and due to the increased risk of the buyer losing its deposit, the Ontario New Home Warranties Plan Act, administered by Tarion Warranty Corporation ("Tarion"), was created to protect these deposits, up to certain limits. 

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LCOLAW

65 Old Kingston Rd, Ajax, ON L1T 3A5

Tel (905) 683-2741

Email: info@lcolaw.ca