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Author Archives / Charlene Schafer

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Posted in Commercial, Policy, Residential

Raising capital in the real estate context, whether through large-scale investment or by smaller, more focused means, can be an intricate, time-consuming and expensive process. Developers and others raising capital need to be mindful of various considerations when operating in this arena, depending on whether their investors are pension funds, private investment vehicles or individual investors.… Continue Reading

Lenders and Execution Creditors Take Note! The Importance of Searching for Writs of Execution on Loan Advances & Providing Actual Notice of Same

Posted in Construction, Policy

Lenders advancing funds in stages or draws to a mortgagor should pay particular attention to searching for execution judgments against the mortgagor prior to advancing such funds. This is particularly common in construction loans whereby lenders will be making a series of advances over time.   Once a lender has registered its mortgage prior to the initial advance to ensure its priority on title, this is not necessarily the end of the matter. On subsequent advances, while it is important to search title to the property to determine if there are any registrations of concern, such as construction liens, it is … Continue Reading

The Challenges of Putting Humpty Dumpty Back Together Again

Posted in Awards and Recognitions, Litigation

A recent order of the Ontario Superior Court illustrates the complexities of the right of rescission in real estate transactions.  The purpose of the remedy of rescission is to restore the parties to the position they were in prior to the entering into of the transaction in question.  When there has been a conveyance of interests in real property and consequently, the transfer of legal ownership of those interests, which often triggers tax consequences, restoring the parties to their pre-contractual position and unwinding the transaction can be complicated and is akin to “putting Humpty Dumpty back together again.”

The recent … Continue Reading

Is Your Joint Venture GST/HST-compliant?

Posted in Municipal

There is less than 6 months remaining until the expiry of the Canada Revenue Agency’s (“CRA”) administrative tolerance for non-compliant joint venture nominee corporations to report and claim input tax credits (“ITC’s”) in respect of GST/HST payable on behalf of the joint venturers.  Earlier this year, the CRA released an administrative bulletin advising that joint venture bare trust nominee corporations that are not ‘participants’, as that term has been defined administratively by the CRA, for the purposes of GST/HST-reporting pursuant to Section 273 of the Excise Tax Act (Canada) will, as of January 1, 2015, … Continue Reading

Alert to Developers and Construction Lenders: Significant Increases to Development Charges in the City of Toronto

Posted in Construction, Policy

Are you a developer who is planning to construct a large-scale project in the City of Toronto or a construction lender providing financing to these developments? If so, you should be aware of significant, phased increases to development charges recently implemented in the City of Toronto pursuant to City of Toronto By-law No. 1347-2013. The by-law also changes how certain projects are categorized for the purposes of determining the applicable development charge.

As you may be aware, there were significant public consultations held on this issue. Although the City agreed to a reduced percentage increase in respect of the new … Continue Reading

Why You Need to Worry About Open Building Files

Posted in Construction, Municipal, Policy

If you are purchasing a property, you should be sure to ask your lawyer to find out if there are open building permit files with the municipality affecting the property. Similarly, if you are selling your property, before closing, you should be aware that you may be required by the buyer to have any open permit files closed. The Ontario courts recently decided that open building permit files pose a significant risk for buyers and form the basis for valid objections to be made of a seller (see link below). If a seller is unable to have the permit file … Continue Reading