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Some items that you will come across when purchasing or selling your home include chattels and fixtures.  I get many questions asking what they are and what the difference is.  As defined:

Chattel: an article of personal property, as opposed to real property; a thing personal and moveable; it may refer to animate as well as inanimate property; personal property which has no connection to real estate (Black’s Law Dictionary).

Fixture: an article in the nature of personal property which has been so annexed to the realty that it is regarded as a part of the land (Black’s Law Dictionary).

The big difference between the two is that chattels are MOVEABLE.  So, for some examples:

chattels – fridge, stove, washer, dryer, furniture, free standing shelving/bookcases, drapes

fixtures – window covering  hardware,  mounted shelves, cabinets, mirrors, light fixtures.

It is important to note that in any real estate purchase CHATTELS are not included unless specified in the contract.  Conversely, any FIXTURES are to be included in the purchase unless otherwise stated.

One problem I encounter when I work with buyers or sellers of condos; is that of self managed condos.  That being a small condo unit that chooses to manage itself as opposed to hiring a management company.

There is nothing wrong with this in itself, and often can lead to cost savings and better management in certain cases.  In other cases however, it can lead to gross mismanagement and money wasting.

The important thing to remember, is that by law – all condos need to follow certain criteria. (ie. they need to have proof of estoppel, insurance and compliance of bylaws, etc…).

When purchasing a self managed condo, it is important to ask these questions before proceeding with anything:

How is management conducted?

Are there meetings between the owners?

Who signs estoppel certificates and are they provided?

How is insurance for the building handled?

Where are the minutes?

Is there a reserve fund?

If you cant get a clear answer to all of the above questions, it may be wise to avoid the property altogether rather than dealing with potential issues that could arise during conveyancing.

Above all, if you have any questions regarding these matters, feel free to contact myself, or any certified Real Estate member that could help lead you down the right path.

Great news for all you first time home buyers out there – you can now get a $5000 tax credit when purchasing your new home.

All you have to do is meet the following criteria:

• you or your spouse or common-law partner acquired a qualifying home; and
• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

If so, under line 369 on your tax return, you can claim up to $5000.  Just another great way our country is encouraging first time home buyers to get into the market.

2014 was another booming Real Estate year for the province of Alberta.  According to recent MLS stats, Alberta saw an increase in number of sales again in 2015 of 8.3% compared to that of 5.1% of the national average.  As well, average prices in Alberta rose again by 5.2% to just slightly over the 400k mark.

So what does this mean for the future?  Its no secret that in a community that relies so heavily on the oil industry, plummeting oil prices can be quite worrisome for all areas of industry, including Real Estate.  Gregory Klump, the chief economist of the Canadian Real Estate Board, has this to say:

“It’s not clear how far oil prices may drop or for how long they’ll stay down. How that plays out may affect the outlook for interest rates, job growth, consumer confidence, and sentiment about making major purchases.”

However, that being said, interest rates still remain at historic lows, and real estate activity is holding strong.  The CREA is still predicting sales activity growth again next year in Alberta, albeit only 0.1%.  Alberta is also expected to see the greatest price increase at 1.9% compared to the national average of 0.9%

What does it all mean?  Well, it is impossible to know what 2015 will bring.   All we can do state the facts at this point – Alberta still has one of the strongest economies in North America, oil prices SHOULD eventually fluctuate back towards the norm, and we currently continue to see low interest rates which encourages buying.  If this continues to be the case, I would suggest we can continue to predict further growth in our province throughout 2015.

All stats taken from:   http://creastats.crea.ca/natl/