Maria Mak. Burnaby Realtors. Understanding Agency Relationship when working with REALTOR®

The agency relationship is established through a contract between you, the client, and your agent, the company under which the REALTOR® is licensed. Most REALTOR® use a blue brochure titled Working with a Real Estate Agent to disclose the nature of the agency relationship with their client.

A REALTOR® can act for a seller or a buyer, or to a limited degree, both. Whomever they represent, REALTORS® have a legal obligation to uphold the integrity of their clients, while protecting and promoting their interests.

Seller's Agent /Buyer's Agent /Dual Agency  

•For your REALTOR® to list your property for sale on MLS®, the Real Estate Board of Greater Vancouver requires completion of a listing agreement.

•Signing this agreement with you commits your REALTOR® to uphold the above obligations.

•The listing agreement also states the compensation amount the seller will pay the REALTOR®.

•The contract of purchase and sale is initiated when an offer is made by the buyer to purchase the sellers's property.

•The contract outlines the terms and conditions of the offer, such as offer price and subject conditions.

•The seller may reject the offer or make a counter offer.

•Once all terms have been accepted and both seller and buyer have signed the contract, each party is legally bound to fulfill the conditions of the contract.

•Dual agency is created when an agent represents both the buyer and seller in a single transaction.

•This can happen if a REALTOR® who is representing a buyer, sells one of their own listings to that buyer.

•A dual agent must be impartial to both buyer and seller and fully disclose all information relating to the transaction.

•A REALTOR® can be a dual agent only if both seller and buyer agree in writing.

Remember: always read all contracts and disclosure forms before signing. If you have questions about agency relationships contact your REALTOR® or Maria Mak @ Sutton Centre Realty or visit her website at www.mariamak.com , You'll be smilling too!

What are the tax implications of building a laneway house?

A laneway house is a small detached residential infill house that typically fronts on the lane of a larger principal house.
It’s important for property owners to understand their options before building a laneway house or buying a property with a laneway house. Here, you'll find information about the tax implications of laneway houses through these scenarios outlined by the Canada Revenue Agency (CRA).
1 You own a principal residence and you hire a builder to build a new laneway house. You then rent or lease the laneway home to a non-relative.
The CRA considers you to be the builder, and to have:
• sold, repurchased, or “self-supplied” the laneway house at its fair market value
• self-assessed and collected the GST on the sale
• paid the GST on the repurchase of the laneway house
You must account for the GST on a GST/HST return (self-assessing), even if you are not a GST/HST registrant. You may:
• be eligible to claim a GST rebate on the construction of the laneway house, which is considered an improvement to the property, and on the land that forms part of the laneway house. Read: Guide RC4033, General Application for GST/HST Rebates
• claim the rebate on Form GST189, General Application for rebate of GST/HST using reason Code 7. For information, read GST/HST Memorandum 19.3.6, Rebate on Non-Registrant's Sale of Real Property
• be eligible for a GST/HST New Residential Rental Property Rebate as a builder/landlord to recover some of the GST
2 You own a principal residence and hire a builder to build a new laneway house for a relative, former spouse, or common-law partner to live in as their principal residence.
The CRA does not consider that you have sold and repurchased the laneway house and collected the GST if:
• the laneway house is used primarily (more than 50 per cent) as a place of residence
• the laneway house is not used primarily for any other purpose after construction of the house is substantially completed
• the individual (builder) did not claim any input tax credits (ITCs) when building the laneway house
You can’t claim a non-registrant’s rebate for the GST paid on construction costs. You may:
• be eligible for a GST/HST New Housing Rebate for your principal residence
• claim the rebate on Form GST189, General Application for rebate of GST/HST, using reason Code 7.
3 You buy a property that includes a new principal residence and laneway house and you rent or lease the laneway home another individual as a place of residence.
The CRA does not consider you to be the builder of the laneway house or to have sold and repurchased the laneway house, or to have collected tax when you rent to a non-relative.
• You may be eligible for a GST/HST New Housing Rebate on the construction of the laneway house if your relative uses it as a principal residence
• If you rent or lease the laneway house to a non-relative, you may be eligible for a GST/HST New Housing Rebate for your principal house if it is your primary place of residence
• You can claim the rebate on Form GST189, General Application for rebate of GST/HST, using reason Code 7. Read GST/HST Memorandum 19.3.6, Rebate on Non-Registrant's Sale of Real Property
• You may be eligible for a GST/HST New Residential Rental Property Rebate.
For more information, tell your clients to read the CRA’s The HST/HST Implications of the Construction of Secondary Housing Unites (Laneway Housing).

Did you know?

A laneway home increases the value of a client’s home. Building a laneway home:
• could affect the client’s eligibility to claim the Home Owner Grant because of the increase in property value beyond the price thresholds
• may also result in increased property taxes

Laneway houses can affect a client’s principal residence exemption

How does a laneway house affect the capital gains principal residence exemption on a property owner’s income tax? The rules are complicated. Click here to read advice from tax advisor Grant Thornton.
As always, we advise you to seek a qualified legal opinion.
It’s important you understand your options before building a laneway house or buying a property with a laneway house.

 

 

The Benefits of Using a Realtor ®

Selling or buying a home is a huge undertaking involving hundreds of different steps.

Some people go it alone. They see the wealth of real estate resources available online and decide to do it themselves. It's true that there's ample information available, but there are so many tangible and intangible elements to the process that mere information can't cover it all.

Selling or buying a home is a financial and emotional minefield. A Realtor is a local real estate expert with the training, experience, and proprietary market information to guide you through it.
Realtors...

• Know what to do next—they’ve been through the whole process of selling and buying a home many times
• Open up possibilities you might not think of—different neighbourhoods, different types of housing, alternatives that suit your needs and budget
• Ease the intense stress of selling or buying a home by offering perspective and expertise
• Steer you away from costly mistakes by identifying risks
• Educate you about the current conditions of the local market—right down to block level
• Get you the best deal possible by negotiating from experience, not emotion

Search for a Realtor on REW.ca, and browse through the many qualified local experts we have on our site. You can find a local specialist by entering a city or neighbourhood in the search bar. Or you can enter the name of a specific Realtor, real estate office, or franchise.

Maria Mak- Burnaby Realtor - serving her clients in Metro Vancouver for over 25 years

https://realtimes.real.com/s/AU7W0X

Maria Mak is a dedicated professional Realtor at Sutton Centre Realty, she has been serving her clients in Metro Vancouver and Burnaby in British Columbia in Canada for over 25 years with a big heart, with a big smile, most importantly with passion.

Thinking of Buying and Selling Real Estate, Contact Maria Mak and her elite team at 604-839-6368 or visit her website @ www.mariamak.com