The Disclosure of Representation of Trading Services Form (link updated October 2019) is a mandatory form in BC. Courtesy of the BC Council of Real Estate. The form content has to be explained by the realtor, so that you are comfortable signing it. The form basically binds the realtor to you, but does not bind you to the realtor. Typically, I get into the details of the form and the buyer makes a hand motion indicating they are ready to sign it.

I look at this form as the start of a form-filled experience of buying or selling Whistler real estate. It is important to ensure that the correct form is signed at the appropriate time in the transaction, and I am all over that!

The following is an article courtesy of the Real Estate Board of Greater Vancouver (REBGV) of which Whistler is a member.

Future Whistler Development for Ski-in Ski-out Property

Are there any approved plans for more Whistler development of ski-in ski-out property? Short answer is no, there are no approved plans, long answer refers to the Official Community Plan (OCP)…spoiler alert, the answer is still no. This OCP was adopted in 1976 and explains the measurement of bed units. Courtesy of the Resort Municipality of Whistler (RMOW), the following is their definition of bed units.

Managing Future Growth in Whistler

“A bed unit is a measure of development intended to reflect servicing and facility requirements for one person. The bed unit measurement was introduced in Whistler’s first OCP adopted in 1976. It was a means to manage the future growth of Whistler. A consistent measurement with infrastructure capacity, highway capacity and ski lift capacity. Bed units have become a key reference point for the resort community’s understanding of, and expectations for Whistler’s ultimate size and capacity. 

“The distinction between developed and undeveloped is based on occupancy as of year-end, December 31. Determination of ‘Developed’ is made by the issuance of a ‘Completed’ building permit, which indicates occupancy. Undeveloped units are those that have been committed to by Council (either through rezoning or subdivision applications) but have yet to be constructed or completed.”

Assigned Bed Units

The following is my interpretation. Decades ago, Whistler Resort was developed on paper, with a vision for the future. The development of the OCP was a thorough process, involving the community and council. The RMOW factored in that the infrastructure of Whistler could only cope with so many residents and visitors. The result was the RMOW assigned bed units to each residential and commercial building lot in Whistler. This was documented in the OCP, and termed the “bed cap”. This assured all concerned that there could be no more bed units added into Whistler.

Recently, due to the shortage of housing for the locals who live and work in Whistler, the RMOW created more bed units. However, these units were under the Whistler Housing Authority and were going to be built for the locals who provide services to the tourists.

Challenges to the Bed Cap

The big question has always been, how solid is the OCP bed cap? Over the years, any challenge to the bed cap had always been fiercely argued in the newspaper. The arguments came from both primary and secondary property owners in Whistler. The addition of new development in Whistler for ski-in ski-out real estate, has neither been questioned nor argued, so what you see is what we’ve got.

Vail Resorts Development

A few years ago, Vail Resorts published that they wanted to develop an amusement styled, water park on Blackcomb Mountain. With such a development on Crown Land, Vail Resorts would also be able to request a development permit for real estate from the Federal Government. The main response to this article was from the locals. Their response pertained to housing for the local worker who would operate this attraction. That article was published back in 2017. Since then, I have not heard a peep.

I am here to help you before, during and after the transaction. The rules effective June 15, 2018 have banned dual agency, so it is prudent to contact a Buyer’s Agent like me, for more information. Please contact me if you are not working with a realtor.

Click the following link for more information on the Market Update for Whistler real estate. Statistics courtesy of Real Estate Board of Greater Vancouver.

It’s a Good Life in Whistler!

Marion

marion@whistlerskiinskiout.com
604 938 3885
Marion Anderson PREC*

How Does the Vendor’s Mortgage Get Removed From Title?

For Whistler real estate, the real estate transaction closing process is not complicated, however it is a process which takes time. Recently, upon closing a transaction, the lawyer acting for the buyer sent them a copy of the “new” title. The Buyers names were on the title, in addition, so was the vendor’s mortgage. Naturally, this alarmed the buyers as the lawyer had not fully explained the process to them. Although there may be other steps to this process this outline will give you a sense of the basic process:

• Upon closing, the Buyer’s lawyer (BL) sends the money from the sale, as per the adjustment document to the Seller’s Lawyer (SL).
• SL then sends the money outstanding to the Bank which held the vendor’s mortgage. This is accompanied by a Discharge Document (DD). The Bank has up to 90 days to sign the DD. Bank returns the signed DD back to the SL usually with 45 to 60 days.
• Upon receipt, the SL files the signed DD with the Land Title Office (LTO).  LTO filing happens within a few weeks, and when it does, they send notification to the SL that the DD has been filed. Any mortgage held by the vendor should now be removed from the title.
• Finally, the SL can notify the BL who orders a current copy of the title from the LTO and sends that to the Buyer. In addition to having the Buyer’s name and address on it, the title will be free from any encumbrances. Just as it says in the Contract of Purchase and Sale.

For more FAQ on purchasing Whistler ski-in ski-out real estate, please read the FAQ Buyer’s Page.   

I am here to help you before, during and after the transaction. Please contact me if you are not working with a realtor. 

It’s a Good Life in Whistler!

Marion 

House Suite Can Be Factored Into Your Mortgage Application, With Restrictions.

Using suite rental income to qualify for a mortgage in Whistler is a process. It starts with finding a house with a legitimate suite which the lending institution will accept as authorized accommodation. Some real estate agents in Whistler refer to unauthorized accommodation, as non-conforming, or illegal space. I prefer to use the term provided by the Real Estate Council of BC, which is unauthorized accommodation.

What is Unauthorized Accommodation?

The building plans are presented to and approved by the Resort Municipality of Whistler (RMOW). Through due process everything on those plans would be deemed authorized space. The suite must be in the original building plans. If the suite was added after those plans were approved, the suite would be referred to as unauthorized accommodation.

One of the most common area for change is adding on a suite, or adding on a second suite. The Seller must divulge that there is unauthorized accommodation on the Property Disclosure Statement (PDS). Which is why the BC Council of Real Estate requests that buyer views the PDS before writing the offer. In addition, viewing the property’s file from the building department of the RMOW would also be advantageous. However, most listing agents do not have the RMOW documents on-hand when they rush to list a property, rarely is the PDS completed. So, the buyer could have written an offer and then once the plans arrive, find out that there is unauthorized accommodation. The listing agent may tell us what is unauthorized space, but it really should not be relied upon. We are better to do our own research.

Whistler Mortgage Broker Comments

I asked Karen Garrett of Dominion Lending, Whistler, how easy it was to get financing on a house with a suite. Karen responded “The banks are very strict about lending against unauthorized space. If the contract states something like ‘buyer is aware the suite is non-conforming and illegal’ then it is more likely the lender won’t allow the suite to be factored in to the financings.”

To avoid a misunderstanding, the buyer’s agent should be adding the unauthorized accommodation clause to the contract. This clause states “The Buyer is aware that the property contains unauthorized accommodation and has been informed of the consequences of such ownership and the potential loss of income should the rental use be discontinued.” A clause like that will surely raise the question of “what is unauthorized?” from the lending institution.

How to Spot An Unauthorized Suite

Unauthorized suites are easy to spot. A suite is defined by it’s own exterior entrance. If the entrance is through the main house, that is your first clue. Second clue is the suite does not have a full kitchen, for example, the ‘kitchen’ only has a hot plate, that is not a true suite. Third clue is if there is already one authorized suite factored in for financing. Then you ask to use a second suite in the home. Two suites are not allowed in a Whistler home.

Banks Have An Independent Appraiser

The banks send out an independent property appraiser, hired by the bank to prepare a report on the property you are asking them to finance. This is usually done at the last minute prior to subject removal. So the report will tell them if you have accidentally misled them. These pitfalls should be identified by your real estate agent, before making an offer.

Are you looking for a real estate agent who can help navigate the pitfalls of purchasing real estate in Whistler? Check out the FAQ for Buyers page on this site. Contact me if you are not already working with a realtor.

Marion

Why it Benefits You to Sign the Disclosure of Representation in Trading Services Form

In summary, by signing the Disclosure of Representation in Trading Services Form you are binding the agent you have chosen, to honour four legal duties. These duties are: 1)Loyalty, 2)Avoid conflicts of interest, 3)Fully disclose any relevant information, and 4) Protect your confidentiality (indefinitely).

The Real Estate Council of BC is very serious about this form. To the point where the agent has to email each signed copy to their Broker. The Broker then keeps it on file, for future audits. There are massive fines to the real estate agent and their broker by not following this ruling. The fines can be $250,000. Needless to say, that is a game changer for most realtors. 

In summary, this is not a binding document which ties you to your agent. It actually binds the agent to you legally, and to honour the four duties mentioned above.

Real Estate Board of Greater Vancouver

Please click the following link to view the entire Disclosure of Representation in Trading Services Form.  The following is an excerpt which is taken directly from the form.

Another excellent resource is refer to the Real Estate Council of BC’s website at www.recbc.ca.

Dual Agency in Whistler is Banned

The Superintendent of Real Estate for BC, has banned dual agency in Whistler effective June 15, 2018. This is good, ethical practice for the buyer, the seller and the real estate agent. I may be one of the few agents in Whistler who think this is good practice, possibly because I represent more buyers than I list properties. Regardless, I have a strong obligation to serve my clients real estate needs before, during and after the transaction. The transaction should be all about you. The transaction should not be about the realtor, or the team double-ending the commission.

Specifically, the new rules will prohibit the practice of limited dual agency. The move to single agency is a significant change from the practice over the years when Realtors could represent both sellers and buyers in a transaction. BC is the first Canadian province to implement rules that require Realtors to act only for one party.

This new ruling also means that listing agents won’t be able to bring their own buyers to their listing. The listing agent must choose who to represent, the buyer or the seller, or neither. It is such a serious ruling, that the listing agent can provide a fact sheet, but when the licensee receives or solicits confidential information from the buyer then the listing agent must now ask the buyer to sign a Disclosure of Representation of Trading Services Form. The form clearly states, that an agent can only represent one client. Without the form being explained and signed by both the agent and the potential buyer, the agent is at serious risk of a massive fine, $250,000, and a legal hassle.

In addition, the Real Estate Council of BC has banned any team member or any agent who is related, from acting as a referral agent in the transaction. That way, the listing agent will need to refer the buyer to another realtor or help the buyer as an unrepresented party, which is a recipe for disaster.

Courtesy of the Real Estate Council of BC (RECBC)

RECBC has provided the following information on the “Disclosure of Risks Associated with the Dual Agency” document:

“When a licensed real estate professional represents two parties with competing interests in a real estate transaction, it is known as ‘dual agency’. Some examples of dual agency are when one real estate professional represents 1) both the buyer and the seller and 2) two separate buyers who each hope to purchase the same property”

Dual Agency is not Relevant in Whistler

In Whistler, BC, dual agency is not an option. Other remote parts of BC may have the option of a dual agency situation. However, I am not going to go into that on this post since it is not relevant to those who are considering Whistler ski-in ski-out real estate.

Click the link for more FAQ on Whistler real estate which will help you understand the intricacies of buying real estate in Whistler. If you are not working with a real estate agent, please contact me anytime. I am here to help you.

marion@whistlerskiinskiout.com
(604)938-3885
Marion Anderson
Personal Real Estate Corporation
Sutton Group – West Coast Realty
203-1080 Millar Creek Road, Whistler, BC V0N 1B1