Direct agreements or tripartite agreements are often an important feature of financings involving ground leases or single tenants, as well as in project finance. … Continue Reading
Equity crowdfunding is a relatively new concept, and governmental regulation is struggling to keep pace with the rapidly changing crowdfunding landscape the world over. Crowdfunding for real estate is still in its early days in Canada. However, it has been making significant inroads in the US. In 2014 and 2015, there have been a number of large real estate projects in the US backed by crowdfunding campaigns (i.e. 17 John Street commercial real estate overhaul in Manhattan, $25M raised as of September 2014). In contrast to traditional investing through REITS (real estate investment trusts), crowdfunding portals provide investors the … Continue Reading
It is not uncommon for parties to enter into contracts for the purchase and sale of real estate that contain defects which may affect their enforceability.
To be enforceable, a purchase contract must set out the essential terms of the agreement; in particular, it must clearly describe the “three Ps” (parties, property and price) and other key terms such as the completion date and the particulars of any vendor financing or leaseback. Although these legal requirements are well known, even the most experienced real estate professional will occasionally fail to adequately describe one or more essential terms in a purchase … Continue Reading
If your organization is currently thinking about establishing or acquiring a business in Canada, the newest edition of Doing Business in Canada, written by McCarthy Tétrault, will prove to be a valuable resource. The guide provides a broad overview of the legal considerations that non-residents should take into account to help ensure their success as they enter into a business venture in Canada. Each section offers timely information and insightful commentary on different areas of law.
The book includes a chapter on Canada’s real estate sector, with sections on:
- land registration
- environmental assessments
- title opinions and title insurance
Lenders should be more aware of the sweeping effects of the British Columbia Real Estate Development Marketing Act (REDMA). Compliance by developers with the REDMA is crucial for lenders because failure to comply can lead to unenforceable purchase contracts.
The REDMA requires a developer to file a disclosure statement before marketing commences. The disclosure statement must, without misrepresentation, plainly disclose all material facts. Before a purchaser enters into a purchase contract with a developer, the developer must provide the purchaser with a copy of the disclosure statement and a reasonable opportunity to review it. Purchasers have a right of … Continue Reading
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