RBC reports that Fears of U.S. recession fading; Canada’s terms of trade boost continues

Fears of U.S. recession fading; Canada's terms of trade boost continues

The economy continued to expand in the first quarter, but posted the weakest six-month growth rate since 2003. The economy is

expected to remain weak, but market forecasters see reduced odds of a recession despite higher-than-expected energy prices.

Risks of a second-quarter contraction are lessening as the early wave of fiscal stimulus cheques may give consumer spending a

boost and keep the economic growth numbers positive.

The elevated inflation rate as a result of high energy and food prices threatens to boost inflation expectations.

Oil prices are expected to trend lower through the forecast period.

The Fed is likely the hold the policy rate steady for the remainder of this year.

Canada's economy contracted in first quarter as special factors and inventories dragged the growth rate down, but domestic demand

is holding up and will more than offset the significant drag from net exports this year.

Import growth will remain robust, but flagging U.S. demand will weigh on export volumes.

High commodity prices and the attendant rise in terms of trade will support real income growth and jobs.

Consumer spending has slowed from its robust 2007 fourth-quarter pace but will still remain a key support for the economy in

2008.

Business investment will continue to be a strong support to the economy as the high Canadian dollar lowers prices of imported

machinery and equipment, and high commodity prices will warrant an increase in capacity.

Canada's housing market is losing steam but is not headed for U.S.-style crash.

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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Lawyer check-up just as important as doctor visit

When was your last check-up. with your lawyer?

Most of us see a regular check-up with our doctor as preventative medicine. Similarly, a simple visit with your lawyer could prevent or minimize legal problems for you in your future. Too often we don't take the time to consider if our current financial or legal situation is right for us, or whether our arrangements will work in our best interest in the event that something should happen to us or our families.

A good time for a legal check-up is when you are meeting with your lawyer anyway, such as when you refinance your mortgage.

"A mortgage is a large financial commitment and getting professional advice when you are refinancing can be invaluable to protecting your interests and saving money," says Kathleen Waters, a specialist in real estate law and vice president of TitlePLUS title insurance. "Having a lawyer involved helps borrowers understand the transaction and know their legal options."

You may not even be aware of some potential problems. For example, your mortgage may prevent you from renting out part of your house, as planned. Your lawyer can help negotiate more suitable mortgage terms or suggest other options.

If you did not buy title insurance when you bought the property, your lawyer can discuss its benefits and help you obtain a policy, if appropriate. For example title insurance may protect you if your property is the target of a fraud scheme.

Meeting with your lawyer when you are refinancing is also the perfect time for a tune-up of other legal matters. Do you have a will and is it up-to-date? Getting married, separated, divorced or having a child are just some of the reasons for updating your will.

Have you signed powers of attorney for property and/or health care? These are very important documents that can allow others to manage your assets (such as paying your bills) or make decisions about your health care when you are incapacitated. Having these documents and keeping them up-to-date can help to avoid costly court applications by family members who need to manage your assets.

A useful resource is the TitlePLUS Real Simple Real Estate Guide, a website that provides information on what lawyers do and how to avoid fraud, as well as mortgage calculators, a locate-a-lawyer feature and other tools. It is available for free at www.titleplus.ca. www.newscanada.com

See my list of lawyers that I recommend

Read more about:

• Interest Rates


• Power of Sale Properties


• Price Trends


• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


• On-Line Real Estate Newsletter sign up


• See seasonal housing patterns

Legal Advice can be very important!

Have your lawyer review purchase agreement before you sign anything

This can be the best advice you may ever receive when you are contemplating purchasing real estate

A decision of a three-judge panel of the Ontario Divisional Court earlier this year highlights the risk of waiving conditions in a multiple-offer scenario.

In December 2001, Saeid Sharifara and his wife were refugees from Iran who had started their own business in Canada and accumulated enough capital for a down payment on a house.

Sharifara submitted an offer to buy a house through a real estate agent. Among other things, the offer was conditional on arranging financing within seven business days. One day later, Sharifara learned there were other potential buyers bidding for the property. He then submitted a second written offer to purchase the house at a higher price and with a larger deposit.

He says that at the time he signed the second offer, he believed that only the price and the amount of the deposit had been increased and that the new offer was conditional in the same way as the first had been. It wasn't, and when the second offer was accepted by the seller, an unconditional agreement of purchase and sale was made.

Sharifara testified that the agent, without his consent, did not include the financing and other conditions in the second offer. The agent disputes this and testified that Sharifara was aware the second offer was unconditional.

Four days after submitting the second offer, the buyer was approved for financing by the Bank of Montreal. He began preparations to move into the house on Jan. 10, 2002, the scheduled closing date.

Two days before closing, however, the bank withdrew its approval for financing because of discrepancies in the mortgage application. All of the dealings Sharifara had with the bank were handled by a mortgage broker without any direct participation or involvement by the applicant.

Sharifara then consulted a lawyer to review the agreement of purchase and sale and says that only then did he learn the agreement was unconditional. Despite this, he decided not to proceed with the transaction. Using the services of another lawyer, he negotiated a return of one-half of his deposit and successfully sued his real estate agent and broker for damages including the forfeited half of the deposit.

The agent and broker then appealed the judgment against them to the Divisional Court. In a decision released in March of this year, the trial judgment was reversed and the buyer's action against the agent and broker was dismissed.

Writing for the three-judge panel, Justice Theodore Matlow notes that the real cause of Sharifara's problem was not the unconditional offer prepared by the agent, but rather "the decision of the bank to withdraw the financing that it had earlier offered to provide to him."

Even if the second offer had been made conditional, as Sharifara says he expected, the financing condition would have expired before the bank withdrew its offer of financing, and the buyer "would have been left in exactly the same position he would have been in had the offer been conditional, namely, without the desired financing from the bank."

In dismissing the action, the court concluded that Sharifara suffered no damage as a result of any act or omission of his agent or broker, since they had no responsibility for the actions of the bank.

Three important lessons to be learned from the case are:

Always have an agreement of purchase and sale reviewed by a real estate lawyer before signing it or make it conditional on subsequent approval of the terms by a lawyer.

Remember that a financing commitment is almost always conditional until closing. A prudent buyer will have a Plan B in case the bank changes its mind at the last minute.

Blaming the real estate agent for something that's not his or her fault is not a wise idea.

Read more about lawyers, legal advice and cautions when making an offer



For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com