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Son evicts mom who paid down payment, contributed to mortgage on shared house

Here's an interesting article I read this week.

Son evicts mom who paid down payment, contributed to mortgage on shared house

A son and mother who bought an Abbotsford house together have been ordered to sell the shared residence after he evicted her, claiming the home was his – although she made the down payment and contributed toward the mortgage.
B.C. Supreme Court Justice Christopher Grauer said Anne Iberg and Russell Gordon Claridge have had a strained relationship for some time.
Since the eviction, Grauer said in a Feb. 12 decision, “they have been fully estranged, and it is clear that sharing the same residence is no longer practicable.”
In June 2008, Iberg, 75, paid more than $100,000 towards the purchase of a house to live in with Claridge, the ruling said. She also paid significant sums for furniture and appliances in two suites in the house and for landscaping.
Claridge, said the court, contributed no money of his own toward the purchase, but did pay equally with his mother towards the mortgage payments and expenses.
Iberg testified that she understood they would be joint owners, each living in their own suite.
They had shared the house for a decade but on Feb 26, 2018, Claridge served his mother with a two-month notice to end tenancy for landlord’s use of property.
“He said that he did so because he had a new child on the way, and wanted to live in the larger upstairs suite, switching with his mother, an idea she had raised herself,” Grauer said.
When she missed her contribution to the March 2018 mortgage payment, the first such instance, Claridge served a 10-day notice to end tenancy for unpaid rent.
Iberg testified she realized only then that she had signed the assignment of purchase contract in favour of her son. Soon after, she also realized she had apparently signed a residential tenancy agreement with her son as landlord, she said.
“There is no doubt that she signed the documents,” Grauer said.
Claridge claimed the money was a gift – a condition required by the lender – and that the house is his and that he was entitled to evict his mother.
“This would leave Mrs. Iberg with nothing after a lifetime of supporting her son,” Grauer said in his ruling.
Grauer ruled Iberg should receive $130,000 to reflect what she had put into the property and that any equity left from the payout of a first mortgage on the house should be divided equally. Always be fully aware of everything you sign and obtain professional and legal advise...especially when purchasing property with the intention of being joint tenants.


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What is a pre-sale?

Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.

Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.

If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.

The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.

Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.

A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.

If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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