Remorse

Enough Millennial-bashing, already. Let’s do something nobler. Like trashing realtors.

Over the past few years this pathetic blog has warned you (repeatedly) against signing anyone’s BRA. The Buyers Representation Agreement may make perfect sense from an agent’s or broker’s point of view, but it can come to bite buyers in the rear.

In case you just became sentient, the BRA is a document real estate boards have been pushing for years in order to obligate buyers who are shopping the market. The clauses are draconian and rarely explained. No wonder. If most people understood what was being pushed in front of them, they’d freeze.

This thing ties you into one agent, which means if you decide to buy a house with another realtor, you may owe commission to the first guy who did nothing to assist you. It’s common practice for an agent insisting on a BRA to make it for a long period of time (I’ve often seen six months, sometimes a year) and for a broad geographic area (like an entire city). Other agents just refuse to show a home to you unless the document is executed.

So the first thing is to refuse. If that doesn’t work, agree to aBRA only for a specific house. Write that address in, and make the document effective for two days. The agent will hate you, but c’est la vie.

Now, here’s an instructive tale.

Obviously Marcello and Anita are among the handful of Canadians not addicted to this site. They listed their north-GTA house months ago and made an offer with agent Vince to buy another one for $1.3 million, after he asked for a BRA. Then the market tanked. M&A panicked since they’d bought firm without selling their existing place. After weeks of debate, they walked. The risk, they felt, was just too great.

So they lost their deposit – as anticipated. They now face a potential lawsuit from the jilted sellers who can go after the difference between $1.3 million and the ultimate selling price, plus costs and damages. And, to their profound shock, they owe Vince almost $40,000 in commission on a purchase that never materialized.

Huh, you say? Don’t vendors pay commissions? Why would they be responsible?

Yes, because of the BRA. One of the nasties in there clearly states that in the event a buyer inks a deal using the agent, then fails to complete that transaction, “due to the buyer’s default or neglect,” they must pay. Here’s what realtor Vince told a reporter: “…they refused to close, stringing sellers, agents, mortgage brokers and lawyers along the way… This is a case of a client taking advantage of the current situation of the housing market due to buyer’s remorse.”

If this goes to court (a bad idea), Marcello and Anita can add twenty grand in fees to a litigation lawyer to the pile they’ll be ordered to pay Vince. It’ll be good practice for being screwed-over by the lawyers for the sellers they walked out on. They may feel wronged and victimized, but those are the downfalls of ignorance and house lust.

So here is the realtor-bashing part: if Vince failed to explain the document clearly, to spell out the gravity of its provisions when he presented it to his clients, he was negligent. Moreover, when the buyers were considering abandoning their purchase, the commission grab should have been spelled out as a key consideration. Given all the cash M&A will be piddling away, it might have made sense to close, rent out one of both properties, and weather the equity storm until markets heal. At least then they’d have assets, not merely regret.

How does this compare with the financial business – where clients rarely make million-dollar decisions in less time than they spend buying underwear? Simple. An advisor failing to disclose risk, making an unsuitable recommendation, or guiding clients into a $40,000 loss without providing any tangible benefit, would be covered in peanut butter, naked, and thrown into a pen of hungry weasels. With fleas.

Never sign a BRA. If you do, make it for a single address. Make it short. Strike out offending clauses. And if an agent refuses to represent you as a result, find another. There are 120,000 of them in the nation and 45,000 in the GTA alone, where Marcella and Anita now contemplate their miserable future.

Imagine. If only they’d come here, they would have found salvation. For blessed even are the greater fools.

249 comments ↓

#1 n1tro on 09.21.17 at 4:58 pm

When I bought my modest place end of June, I made the realtor give me a cut of his commission just because I could. He gladly forked it over knowing he was getting money for almost no work.

#2 n1tro on 09.21.17 at 5:01 pm

“Imagine. If only they’d come here, they would have found salvation. ”

With a good dose of ridicule because come on, this is the GF comment (steerage) section.

#3 Money Miser @ Money-Miser.com on 09.21.17 at 5:01 pm

The sooner technology destroys the realtor industry the better. It’s a great shame our Canadian government allows realtors to get away with what they do. Nothing surprises me about those slimeballs anymore, they’re almost as bad as financial advisors.

Nobody deserves to be paid absurd amounts of money to put an advert online and host a few open houses, something anybody could do themselves if there was technology and government policies to support it.

#4 Hi on 09.21.17 at 5:03 pm

Garth, do they have BRA in the States?

#5 Kool Aid on 09.21.17 at 5:08 pm

That’s good advice…. and it was free, right?

#6 MCYVR on 09.21.17 at 5:08 pm

Wow , that is great info to know . Like most , I trusted the agent and never really understood that document and it’s potential ramifications .

#7 homeless on 09.21.17 at 5:10 pm

$40000 to no explain something. Makes me wonder about the reasons behind a recent restaurant shooting.

#8 homeless on 09.21.17 at 5:12 pm

$40000 to not explain something? Makes me wonder about the reasons behind a recent restaurant shooting.

#9 FLHTK on 09.21.17 at 5:14 pm

I never sign those! And now if an agent wants to list they get 1% commish if they don’t like it next agent!

#10 FLHTK on 09.21.17 at 5:15 pm

#8 homeless- ya no doubt I said the same thing oh this realestate agent screwed someone now he paid with his life!

#11 Prairieboy43 on 09.21.17 at 5:30 pm

My realtor was “BRA-LESS”. Wife wasn’t happy. Like the VW commercial.
PB43

#12 Penny Henny on 09.21.17 at 5:34 pm

I once signed a BRA with the tube top lady Sandra.

#13 Dan.t on 09.21.17 at 5:35 pm

House lust and horniness has not made Canada a better place.

Especially in BC (but GTA seems just as bad…only now it’s crashing) those who bought 25 years ago because they needed a home now act like pretentious investment gurus and the only rational explanation for those under 35 who own anything is that they are swimming in debt, got a Bank of Mom payment and put on a big show.

I’ve seen this transition over a 10-12 year time span. However my last visit there was lots of anger under the surface around YVR and lower mainland of people I talked to.

I don’t get it, if you love your houses so much then be happy. Be happy you just bought that 650k 1 bed plus den Burnaby condo. You can obviously afford it. Right?

Real estate is put on a pedestal because it has only ever, ever gone up- like 500% in 10 years but, once the herd feels the sting of falling prices (I know it’s not possible) that changes, all those realturd lies, shadow flipping, dirty deals, realturds owning 8 properties each and on and on, will all of a sudden be an issue. It’s never an issue when everyone is making money.

The herd is so predictable. Unaffordable housing in BC, no one cares, NDP run from election promises, it’s all good and forgivable to voters and home owners when prices keep going up. Lie, cheat, steal, screw the younger generation, just don’t mess with my equity!

Lets hope prices go up forever and ever because “no mortgage no life”, isn’t that what people think there? “It’s only debt”…that was my favorite, that and “it’s different this time”.

My impression of the real estate cartel is that it is simply criminal and shaddy as hell but that is painting all realtors with one brush. I m sure out of the 120,000 there are many honourable and competent ones but I think that hiding stats, lying, deceptive marketing tactics, pulling listing, resisting, keeping buyers and sellers in the dart , outright lying about the true state of the market and numerous other infractions should carry some kind of punishment…

oh, well, at least that nice realtor who screwed over those people with a BRA will donate that 40k to charity. Who wants to bet that happens?

Typical Canadian journalism, they know where their paycheque comes from. Just had to add that at the end that the nice friendly Realtor was going to donate the commission to charity after court expenses and the Audi 8 lease payment. That is so sweet.

I just love realtors….cue happy housing crash guy please.

#14 Drew on 09.21.17 at 5:36 pm

DELETED

#15 Stone on 09.21.17 at 5:42 pm

Good to know. Doesn’t help now that I don’t real estate. No worries though. Won’t touch real estate for the forseeable future. If I did, definitely wouldn’t sign a BRA and would squeeze the agent on the commission like a pimple. And the seller.

My absentee landlord passed by yesterday as they forgot to cash a rent cheque and it was over 6 months ago so the bank wouldn’t accept it stale dated. When I met them the first time, they were all high and mighty being real estate investors. At that time, I mentioned that real estate would become a losing proposition and renting was better. They laughed at me and I could see that they thought I was stupid. This time, the second time I’ve seen them, not so much high and mighty coming from them.

Anyways, who forgets to cash a rent cheque? And can you believe that they originally wanted me to drive 50 kms to hand deliver the new cheque and then drive 50 kms to get back home? Unbelievable. They can’t there things in order amd expect me to make up for it. I’ll be month to month soon. Will be nice to see them every month to collect the cheque. 100 kms each time. Who said being a landlord was easy money? Way better to own a REIT ETF. Fools. I do thank them for being that though.

#16 Nelson from The Simpsons on 09.21.17 at 5:47 pm

Ha-Ha!

Let the house prices fall in Toronto! We need those Hipsters to feel financial pain!

#17 Pat on 09.21.17 at 5:47 pm

Had they signed it and just inked in the one property as suggested, they would still be on the hook for the 40,000.00. to Vince

#18 Advice on 09.21.17 at 5:48 pm

Great advice, Garth!

Pretty horrible that those BRAs even exist.
If I ever encounter a realtor presenting me with one, I will walk and never talk to that person again.
Done.

#19 the ryguy on 09.21.17 at 5:52 pm

You will hear more stories like this going forward in the near future.

If Canadian RE crumbles the way many of us think it will; there will be a sh*tstorm of lawsuits, everyone suing everyone.

Also just wanted to say, its crazy to me the bickering going back and forth about taxes between people on this blog.

100% of the blame is on the government. THEY SPEND TOO MUCH MONEY, AND IN A MANNER THAT IS BEYOND INEFFICIENT.

You all can fight and bicker till you are blue in the face, this problem will never even be dented until there is a huge decrease in a)spending and b)promised spending.

You realize the amount of unfunded liabilities this country has? Stop fighting each other, we all pay an absurd amount of taxes. The problem is the government…FIN.

#20 The Great Gazoo on 09.21.17 at 5:53 pm

sen·tient
ˈsen(t)SH(ē)ənt/
adjective
adjective: sentient

able to perceive or feel things.
“she had been instructed from birth in the equality of all sentient life forms”
synonyms: (capable of) feeling, living, live; conscious, aware, responsive, reactive
“any sentient creature should have the good sense to avoid something so dangerous”

#21 Mike on 09.21.17 at 5:59 pm

.
OFSI(or OSFI) thing not happening looks like…..

#22 Pete from St. Cesaire on 09.21.17 at 6:03 pm

Non full disclosure and lack of explaining is a failure of one’s fiduciary duties is it not?
Also, how about all of those students who were drunk when they signed up for their student loans. I’ve seen it done right before my eyes. Many of these kids are never sober enough to drive. That should invalidate the debt, shouldn’t it?

#23 Spock on 09.21.17 at 6:04 pm

and there are always consequences.

http://bit.ly/2xqD3Oj

Thanks to Trudeau’s tax proposals, big fish are moving billions out of Canada, former finance minister says

#24 Mark Deflation Theory on 09.21.17 at 6:05 pm

@#8 &#10,

That doesn’t fit in with Mark (aka Pitz’s) deflation theory that Canadians will be paying off their debts after being screwed by realtors in the Toronto housing bubble.

Toronto is quite a grimy city. Lots of organized crime, money laundering, females who earn over $400,000 cash non-taxable income a year doing certain professions, drug dealing, dope peddling, wannabe gangster culture, you name it.

#25 I'm stupid on 09.21.17 at 6:16 pm

I feel a rant from happy housing crash. How could he resist.

#26 Money Miser @ Money-Miser.com on 09.21.17 at 6:19 pm

Im a troll just looking to increase my web traffic. I always post early so I get the highest number of views. I’m desperate

#27 PropertyGuy on 09.21.17 at 6:19 pm

Remember too Garth – When the market turns enough that the Seller does not have enough equity to cover closing costs (including the ridiculous commission to Buying & Selling agents), the Buying agent can make up any shortfall in the co-op commission by throwing the BRA in front of the buyers and getting them to cough up the difference!

#28 Screwed Canadian Millenial on 09.21.17 at 6:20 pm

I have a juicy post for you boomers but I’ll leave it for tmrw.

For now, check this out.

“Canadian” problems.

Hong Kong woman wants her ex out of B.C. home. The problem? His name is on the title
https://globalnews.ca/news/3760374/hong-kong-woman-bc-land-title/?platform=hootsuite

“A Hong Kong woman who says she bought a house in Richmond, B.C. and put it in her boyfriend’s name to dodge B.C.’s 15 per cent foreign buyers’ tax, is suing the now ex-boyfriend to get the house back.”

and no tin foilers… I did not write the article.

#29 Screwed Canadian Millenial on 09.21.17 at 6:22 pm

#23 Spock

Lol you’re really that gullible? You just believe whatever they tell you eh? You really are a servant for the billionaires. You poor sad useful idiot for the wealthy elites. Billionaires command, you obey. Pathetic!

#30 Clueless on 09.21.17 at 6:24 pm

Hi, I’ve been saving for a while but am clueless on investing. I’ve read this blog for a while and understand that I should max my TFSA, and invest in ETF’s. I have a pension, 25k, and am 27. I assume investing in a TFSA through the bank the way to do it? I would guess a mutual fund? But I’ve read don’t trust the [email protected] I was looking into a robo investor once my TFSA is maxed. But where do people invest in TFSA and ETFs? Anywhere I can begin reading on this?

Thanks for the blog Garth, learning every day.

#31 Raging Ranter on 09.21.17 at 6:27 pm

DELETED

#32 Screwed Canadian Millenial on 09.21.17 at 6:28 pm

#28 Raging Ranter on 09.21.17 at 6:27 pm

Why are you constantly so interested in my sex life?

#33 Gentle ,Loving Kindness on 09.21.17 at 6:29 pm

This article speculates the era of declining interest rates, the stagnate wages and rising economic inequalities is/are coming to an end. Boomers retiring from the workforce, the economic maturation of the Chinese economy and the unlikely repeat of the mass infusion of cheap labour into the world economy during the 80s and 90s will mean interest rates will be on a secular trend upward. This will be good news for the liquid and mobile, not so much for the over housed imprisoned.
http://business.financialpost.com/opinion/this-coming-global-shift-should-finally-raise-wages-and-reduce-inequality

#34 The Greater Cauliflower on 09.21.17 at 6:30 pm

RE: #7 homeless
RE: #10 FLHTK

Not the first time a realestate agent was executed…

http://www.cbc.ca/news/canada/british-columbia/buziak-murder-case-possible-online-confession-1.4241395

#35 Money Miser @ Money-Miser.com on 09.21.17 at 6:35 pm

#26

Thanks for the free advertising! Appreciated.

You know, commenting on respective blogs in the same community is common, accepted and even encouraged. I’d be more than happy for another blogger to comment on my posts linking to their own blog.

So you admit it. Bye. — Garth

#36 Ian on 09.21.17 at 6:35 pm

I predict a peak blood pressure / shyster overload by Happy Housing on this one! This is the pinnacle. It’s like what Edmund Hillary must have felt. The apex!

#37 Renter on 09.21.17 at 6:38 pm

@Stone

Why not be nice and mail those monthly cheques, or better yet arrange etransfers? You *might* want them as a reference, or want a fast response if something minor needs fixing.

#38 Daveyboy on 09.21.17 at 6:41 pm

@30 wealthsimple.com

Once u have a enuough. Go to Garth.

#39 SoggyShorts on 09.21.17 at 6:45 pm

#217 IHCTD9 on 09.21.17 at 11:20 am

Voting isn’t pointless, but you need to be realistic about what you’re going to get.

My lessons thus far are as follows:

1. Politicians can not be trusted.
2. Politicians have little to no ability effect change.
**************************
That smells like voting is pointless to me.

P.S. sorry it takes a full day for a response, we can’t all have enough free time to post here 4-5x an hour every day like some kind of SCM

#40 rainclouds on 09.21.17 at 6:47 pm

Do millennials participate in the electoral process ? Not so much. But its others fault.

imbeciles

http://www.elections.ca/content.aspx?section=res&dir=rec/part/estim/42ge&document=p1&lang=e#a

#41 Millennial905er on 09.21.17 at 6:48 pm

I preferred the comments section before screwed(up) millenial(sic) found this pathetic blog. Thought he was banned?

In other news, Scheer exposing Trudeau and Morneau for the hypocrites they are :

“While answering media questions yesterday, the prime minister described his ‘family fortune,’ which is held in at least three separate numbered companies,” Conservative Leader Andrew Scheer said on Wednesday.

“He confirmed that he will not be affected by the tax changes he claims are intended to make wealthy Canadians pay more,” Scheer asked. “How is that fair?”

#42 Tbone on 09.21.17 at 6:49 pm

Hey all you real estate agent bashers ,
Sell your house yourself if you feel you get no value from hiring an agent.
Use comfree and you will get listed on the mls .
I have used them and I have also used agents for various properties.
You will have to do some work though if you do it yourself but you do have a choice.
If you do decide to represent yourself then you can test your savy sales and negotiating skills.If you don’t have any , then… Good luck.

#43 Money Miser @ Money-Miser.com on 09.21.17 at 6:50 pm

I’m not going to have a real opinion, I’m just going to write the most neutral comments I can so I can appeal to the highest number of people. I’m going to remain anonymous because I’m a financial loser living in the basement of my mommys house but I don’t want you to know that because I want to be a blogger. I’m going to say ridiculous things like you can retire at 40. Just as long as your favourite meal is cat food and you enjoy dumpster diving in your spare time.

#44 Moses and Bella on 09.21.17 at 6:51 pm

Was unaware I had signed one many years ago . My fault for not knowing what I was signing. Pretty unethical of the agent not to have made us aware. Fast forward purchase a house with different realtor. Got sued for commission. Explains my love of Happy Housing Crash

#45 AK on 09.21.17 at 6:55 pm

Those peppers are overcooked.

#46 Guy in Calgary on 09.21.17 at 6:56 pm

To defend the BRA, what if an agent works for you for 6 months showing you dozens of properties and you end up buying one of the properties they showed you through someone else? All the time, gas and other expenses would be for nothing.

Maybe amend some of the more predatory clauses but there has to be a middle ground there.

#47 jess on 09.21.17 at 7:02 pm

a first for bitcoin ponzi fraud oh the humanity!

…’The CFTC Complaint alleges that from approximately January 2014 through approximately January 2016, GBI and Gelfman, company Chief Executive Officer and Head Trader, operated a Bitcoin Ponzi scheme in which they fraudulently solicited more than $600,000 from approximately 80 persons, supposedly for placement in a pooled commodity fund that purportedly employed a high-frequency, algorithmic trading strategy, executed by Defendants’ computer trading program called “Jigsaw.” In fact, as charged in the CFTC Complaint, the strategy was fake, the purported performance reports were false, and — as in all Ponzi schemes — payouts of supposed profits to GBI Customers in actuality consisted of other customers’ misappropriated funds.

The CFTC Complaint further alleges that to conceal Defendants’ trading losses and misappropriation, Defendants made and provided false performance reports to pool participants, including statements that created the appearance of positive Bitcoin trading gains, when in truth Defendants’ Jigsaw trading account records reveal only infrequent and unprofitable trading. As alleged, Gelfman also staged a fake computer “hack” designed to conceal trading losses and misappropriation. “

#48 CaninAus on 09.21.17 at 7:02 pm

#30

Look into Questrade

#49 Daisy on 09.21.17 at 7:03 pm

Why don’t M&A claim that the real estate agent breached his/her fiduciary duty to them in advising them to purchase a property for an inflated price. And why not sue the real estate agent for the lost deposit?

#50 TheoryAndPractice on 09.21.17 at 7:03 pm

Garth, this is how I have found existence of your blog first time :

http://www.greaterfool.ca/2011/11/13/the-trouble-with-bras/

I was requested to sign one of these in the past , and I did not have any previous knowledge about this agreement, realtor said , it is default-agreement written by their organisation. I replied it does not matter I will still read up to the fine prints and I will think about it.

After I read multiple times BRA , I refused to sign but also needed to validate my understanding. And I did so by finding on google links your previous post above.

It is very bizarre agreement. I suggest to everyone to read once, just to understand their point of view… The knowledge is power.

It is my duty now to give credit to your blog one more time.

Thank you Garth !

#51 Trojan House on 09.21.17 at 7:07 pm

To Screwed Millennial:

A passage from Orwell’s 1984:

“Parson’s was Winston’s fellow employee at the Ministry of Truth. He was a fattish but active man of paralyzing stupidity, a mass of imbecile enthusiasms–one of those completely unquestioning, devoted drudges on whom, more even than on the Thought Police, the stability of the Party depended.”

#52 Tedfiftyfour on 09.21.17 at 7:10 pm

Stone on 09.21.17 at 5:42 pm
You are mistaken. It is your obligation to get your payment to the landlord on time at the address provide by the landlord. That’s why tenants generally prove post dated monthly cq’s. Alternatively send it by interact email. The landlord is not required to pick up the cq.

#53 Potato on 09.21.17 at 7:12 pm

@ 30 Clueless

There are a few ways to go. If you don’t want to learn the mechanics of it, then you can go with a robo-advisor (it’ll be a while before you have enough assets for an AUM-fee-based advisor like Garth’s crew to handle it for you). There are a bunch out there, there’s a calculator here to help compare them.

Oh, and you can invest in the TFSA (with a robo or on your own), which is likely a better use of the space than a plain savings account.

Or you can start reading to do it on your own. The short answer is a brokerage account and a few ETFs to get diversified. To actually do that, there are a few books to read — I have a suggested reading list on my site. Or if you prefer more structure and detail, there are courses to take on how to invest, online and depending on where you live, possibly in person (though those can vary considerably in quality and content).

#54 Hi on 09.21.17 at 7:15 pm

Spock, you are so right, poor Canada turning into Cuba. Circa 1959

#55 leebow on 09.21.17 at 7:20 pm

LMAO. What else to expect?

http://nationalpost.com/news/canada/tax-changes-anti-rich-rhetoric-have-already-inspired-big-fish-to-leave-manley#comments-area

[i]
Just yesterday my husband and I learned about pension-type savings options for small business owners called Retirement Compensation Arrangements (RCAs) and Individual Pension Plans (IPPs, geared more towards business owners in their 50s).

These retirement savings plans/products were suggested to us as potential next steps if the proposed federal tax legislation affecting small business goes through. (For context, given our incorporated structure, if the legislation is passed, any income we draw when we retire will have been taxed at a rate of 73%. Clearly, this doesn’t seem like a fair deal for a lifetime’s worth of work, so we—like every other incorporated small business owner out there—are working hard to understand what our options are.)

Today, from an All Nova Scotia article (Sept 19), we learned that the largest provider of these pension plans in Canada is none other than Morneau Shepell.

That’s right, Morneau Shepell—the multinational benefits/pensions consulting firm founded by Federal Finance Minister Bill Morneau’s dad, William Frank Morneau, Sr. in 1966, with annual revenue in 2016 totalling $592 million Cdn. It’s the largest benefits and pension firm in Canada. [/i/

#56 mike from mtl on 09.21.17 at 7:25 pm

#30 Clueless on 09.21.17 at 6:24 pm

/////////////////////////////////////////////////////

Myself I simply use the online brokerage of my bank, though do shop around for the costs of brokerages. Personally I wasn’t too confident putting six figures into a third party like QuestT despite slightly lower trading costs.

25k is around the minimum to not pay ‘maintenance fees’ for most brokerages these days (used to be much more).

Mutuals do have an advantage if you buy no-load ones, unlike equites, can be bought in partial units. However there are so many with various complex fee structures, even passive ones. MER in either at such a low amount is not much of a concern for you as trading costs quite significant. Realise contributions & rebalancing regular equites are NOT free. Conversely high MER of mutuals held long term is also working against you.

In my opinion, go for a simple three or four ETF bundled solution – read up. The saving of ‘cash’ itself to invest is more important than return at this point.

#57 OFSI - cancelled on 09.21.17 at 7:28 pm

What is this rumor that the OFSI mortgage rules won’t be implement?

#58 @ Raging Ranter on 09.21.17 at 7:31 pm

@ Raging Ranter

Your obsession with the Screwed Millennial’s sex life has me wondering if you’re a pervert?

If we searched your name, would we find you listed as a registered offender?

#59 Millmech on 09.21.17 at 7:31 pm

In Vancouver,a candidate for city council wants a rich tax of 1% on properties over 5 million and 2% on 10 million dollar homes.This tax will go for Vienna style homeless shelters with pools.Lol

#60 wow on 09.21.17 at 7:39 pm

Lol you’re really that gullible? You just believe whatever they tell you eh? You really are a servant for the billionaires. You poor sad useful idiot for the wealthy elites. Billionaires command, you obey. Pathetic!

………..

this is one angry person.

#61 Joe Schmoe on 09.21.17 at 7:42 pm

Can we dedicate a day a week poking fun of JT?

THAT guy is an idiot.

I like his fake apologetic attitude to FN issues…as he beat up a drug addicted FN in his drive for Liberal leadership.

Did he get is “I didn’t know!” tattoo yet? Will be the summary of his memoirs.

#62 MSM-Free Zone on 09.21.17 at 7:44 pm

#3 Money Miser @ Money-Miser.com on 09.21.17 at 5:01 pm
“…..It’s a great shame our Canadian government allows realtors to get away with what they do…….”
________________________________________

Not really surprising, given the current CEO of the Ontario Real Estate Association is none other than failed former Ontario PC leader Tim Hudak.

Yeah, that guy, the one who tweets that tightening credit from delusional, out-of-control moisters is a ‘war on first time home buyers’.

No conflict of interest there.

#63 Mark on 09.21.17 at 7:46 pm

“When I bought my modest place end of June, I made the realtor give me a cut of his commission just because I could. “

Yes, you did this, but was the transaction reported to the MLS at the full “price” you paid, or was the ‘discount’ you received from the Realtor netted out?

The problem with the MLS and prices on it is that Realtors commissions are embedded into the price. So anytime you see a quoted asking price on MLS, you need to subtract 5% typically as to what the house’s value will be when you actually take delivery.

That doesn’t fit in with Mark deflation theory that Canadians will be paying off their debts after being screwed by realtors in the Toronto housing bubble.

They may not pay off their debts per se (in the US housing collapse, the total size of the credit market didn’t deflate much), but they won’t be in any position to take on new debt when they are in negative equity. Hence, consumer prices are likely to deflate due to lack of demand. Deflation, like inflation, is self-reinforcing, so there will be a considerable liquidation period, and likely intervention by policy makers and central bankers in an attempt to arrest the cycle.

As far as CPI numbers, we’ll have a new release tomorrow. I expect explicit CPI deflation, although probably mild.

#64 For those about to flop... on 09.21.17 at 7:52 pm

Gravy Train.
I think I can say without fear of contradiction—even the Flopster may agree—that this has been the screwiest, screwed-up, and screwed-over comment section in recent memory! :)

//////////////////////////

Hey Gravy,yeah I’ve been staying out of it as I don’t believe any good will come out of it.

If someone writes in a cordial manner something like ” What differences do you notice from 20 years ago ,I am interested in your observations ” then you can have some reasonable discussion ,but if two sides want to lecture each other and are only looking for mistakes/faults in the other persons post then you really are just wasting your time.

When I want to waste time I try to prove that Vancouver real estate is in trouble…

M43BC

#65 T on 09.21.17 at 7:54 pm

#17 Pat on 09.21.17 at 5:47 pm
Had they signed it and just inked in the one property as suggested, they would still be on the hook for the 40,000.00. to Vince

——

Incorrect. The commission to Vince would have been paid by the sellers upon the deal closing.

#66 MSM-Free Zone on 09.21.17 at 7:55 pm

In other news, did you know that the melting rate of a Tiger Tail ice cream cone is directly proportional to the acceleration rate of temperature rise on a 32*C Sunday in September?

Who knew?

#67 bellend on 09.21.17 at 7:56 pm

can’t fix stupid eh?

#68 Grantmi on 09.21.17 at 7:58 pm

“A Hong Kong woman who says she bought a house in Richmond, B.C. and put it in her boyfriend’s name to dodge B.C.’s 15 per cent foreign buyers’ tax, is suing the now ex-boyfriend to get the house back.”

I absolutely love this…… lol… priceless

#69 T on 09.21.17 at 7:58 pm

#29 Screwed Canadian Millenial on 09.21.17 at 6:22 pm
#23 Spock

Lol you’re really that gullible? You just believe whatever they tell you eh? You really are a servant for the billionaires. You poor sad useful idiot for the wealthy elites. Billionaires command, you obey. Pathetic!

—–

No. You are pathetic and naive. Getting boring as well really. Oh well. It takes all kinds in this world. Enjoy being a bottom feeder forever.

#70 NoName on 09.21.17 at 8:08 pm

When you see communist roof and communist window once, you won’t forget it in you life time.

BBQ-ing dude was definitely member of central committee of the communist party, they have no soul, at and of the picture dog stays hungry…

#71 Manitoba Whale on 09.21.17 at 8:20 pm

LMAO. What else to expect
“Just yesterday my husband and I learned about pension-type savings options for small business owners called Retirement Compensation Arrangements (RCAs) and Individual Pension Plans (IPPs, geared more towards business owners in their 50s).

These retirement savings plans/products were suggested to us as potential next steps if the proposed federal tax legislation affecting small business goes through. (For context, given our incorporated structure, if the legislation is passed, any income we draw when we retire will have been taxed at a rate of 73%. Clearly, this doesn’t seem like a fair deal for a lifetime’s worth of work, so we—like every other incorporated small business owner out there—are working hard to understand what our options are.)

Today, from an All Nova Scotia article (Sept 19), we learned that the largest provider of these pension plans in Canada is none other than Morneau Shepell.”
*****

That seems a little too rich to be true. Never heard of the plans before. For big wigs?

#72 Stone on 09.21.17 at 8:22 pm

#52 Tedfiftyfour on 09.21.17 at 7:10 pm

Can you advise of your source that obliges me to go beyond providing a cheque monthly to the landlord? If I’m obligated, I will do what is necessary but I see nothing to indicate that in my lease agreement and nothing online either. They’re absentee and normally aren’t responsive unless they want something so goodwill isn’t there.

Thanks in advance.

#73 Happy Housing Crash Everyone! on 09.21.17 at 8:23 pm

Garth is right dont sign anything. Spite in their faces. In all seriousness ask to see proof of a high school diploma. You may get a response of I didn’t finished grade 6. In which case you call them a dirty SHYSTERS
.

#74 Travis Bickle on 09.21.17 at 8:23 pm

Someone on this site surely knows answer to this:
I purchased Apple stock in January this year for my TFSA ($20,000 worth of it).
I know that my capital gain is tax free.
However, how about the dividends paid to me by Apple? Is that taxable by IRS?

Thanks.

#75 Money Miser on 09.21.17 at 8:23 pm

So you admit it. Bye. — Garth
_____________________________

Sorry Garth, didn’t realise you had an issue with linking to other blogs since your comment options include linking to websites. I can always take out the “@money-miser.com” part if that’s the issue. I’m not here for the free ride, long time reader actually, just that loser was calling me out for no reason just for commenting and using my blog name.

Bloggers who come here to comment solely in order to build traffic have been routinely punted. You, too. — Garth

#76 Money Miser on 09.21.17 at 8:30 pm

DELETED

#77 marty mcfly on 09.21.17 at 8:32 pm

http://www.ctvnews.ca/canada/toronto-area-family-on-the-hook-for-37k-commission-after-failed-home-purchase-1.3599860

It’s too bad but 1.3 mil for a semi was the first red flag lol

#78 Manitoba Whale on 09.21.17 at 8:32 pm

National Post, 21 September 2017: John Ivison
“A finance minister already disillusioned by politics, according to people close to him, has been wounded by the affair. In particular, he appears agitated at suggestions that he engineered the changes so that his pensions consulting firm, Morneau Shepell, could benefit from increased sales of individual pension plans, as business owners shift their retirement savings from private corporations.”
*****

I think that this is a bit of a stretch. There must be a pile of pension companies in Canada.

#79 Drill Baby Drill on 09.21.17 at 8:34 pm

Instead of signing a BRA how about a Mansier?

#80 MinchinWeb on 09.21.17 at 8:34 pm

I was once asked to sign a Buyer’s Representation Agreement … covering the entire state of Utah … for a year!

I told the realtor he was crazy, but claimed the local board wouldn’t let him submit our offer without one, so the agreement was whitled down to the single address, and a period of 2-3 months.

So yes, BRAs exist in the States.

#81 MWS on 09.21.17 at 8:37 pm

@ Mike

Source?

@ OFSI – cancelled

Source?

I found it. — Garth

#82 crowdedelevatorfartz on 09.21.17 at 8:38 pm

Popped into the Dr’s office today for my annual proctological exam( gotta keep everything in tip top shape in my line of work !)
Anywho.
I jokingly asked the Dr if he had voted for Trudeau in the last election to which he replied, ” You keep talking about Trudeau and the new tax laws yer gonna have to check MY blood pressure!”

He gave me a clean bill of health…… countless elevators to ride in the retirement years…….

#83 crowdedelevatorfartz on 09.21.17 at 8:39 pm

@#76 Money Miser
DELETED
+++++++

Money Miser is now a little bit wiser.

#84 Don Regan on 09.21.17 at 8:40 pm

From my little part of the world, Van Wetside

Today I walked down Laburnum Street from 57th to 62nd Ave. I counted 17 Listings. Many of these listings have
been on the Market for Months, none sold. 16 Months ago
when a listing came up, it sold immediately. Has the blush gone off the rose?

#85 not 1st on 09.21.17 at 8:43 pm

Garth, realtors arent going to sink this country but a bunch of clueless millenials will. They are so righteous when they are 22. Wait until they get T2s bill when they are 30.

Meanwhile;

http://www.huffingtonpost.ca/2017/09/21/big-money-leaving-canada-over-tax-changes-john-manley-says_a_23218305/

You think business owners are just going to take it? They are way ahead of the millenials. They are busy protecting their wealth so T2 never touches it. But hey you SJW can donate your earnings to T2s socialist utopia.

#86 FOUR FINGERS WATSON on 09.21.17 at 8:44 pm

#57 OFSI – cancelled on 09.21.17 at 7:28 pm
What is this rumor that the OFSI mortgage rules won’t be implement?
…………………………

They will drop it like a hot potato once rates rise a bit and people start snivelling and whining.

#87 For those about to flop... on 09.21.17 at 8:46 pm

37 pm
@ Mike

Source?

@ OFSI – cancelled

Source?

I found it. — Garth

//////////////////////

They don’t look very disruptive to me…

M43BC

https://howmuch.net/articles/the-worlds-unicorn-companies-2017

#88 When Will They Raise Rates? on 09.21.17 at 8:48 pm

Never sign a BRA. If you do, make it for a single address. Make it short. Strike out offending clauses. And if an agent refuses to represent you as a result, find another.

Caveat emptor.

I’m amazed that people routinely sign contracts without first bothering to read the fine print. My wife and I read every word and always strike out offending clauses… Never had a deal fall through because of it. We find that commissioned sales people look the other way and accept the revised contract because they want to quickly close the deal. We take full advantage of their greed…

Good example was a car we bought from GM a few years back (by the way, never buy GM). We crossed out the part about 1.9% financing fees. LOL GM called us after the fact and we told to screw off and read the contract. Never ended up paying a dime in interest charges!

Stupidity works both ways.

#89 Chaddywack on 09.21.17 at 8:48 pm

I love striking out clauses, initialling them, and asking the other party to do the same.

So many people never think to do this and just sign whatever is presented to them…..

#90 Renter on 09.21.17 at 8:50 pm

@Stone

Use some common sense. If you don’t get the payment to the landlord, they boot you out. Sheesh, costs you a stamp.

https://www.cmhc-schl.gc.ca/en/co/reho/yogureho/fore/reagma/reagma_003.cfm

#91 SW on 09.21.17 at 8:51 pm

I was talking to a friend who, about a year ago, had bought a tiny house in a blue collar town on the St. Lawrence for peanuts. He bought through the local listing realtor™.

When that worthy person heard that my friend was going to sell his house in Ottawa (about an hour away) he somehow managed to get my friend, who is normally no dummy, to sign a 17(!) page form agreement, the upshot of which was that the realtor would “sell” the Ottawa house.

6 months went by. Crickets. My friend was busy renovating the little house, so he wasn’t too upset at no action. Then the realtor called and asked for an extension to the agreement. My friend took it to a lawyer buddy and that person said, “This isn’t a contract, it’s not even dated!”

6 months became 9 months and my friend finally told the realtor™ to get knotted. He contacted an Ottawa realtor who asked him to sign a 2 page agreement (his lawyer said OK). Then the house was staged, there were 20 viewings and 2 offers, in 2 days. The lady got her commission and the client bought her dinner!

The ex-realtor had the gall to call my friend and complain that he had received no commission…and received a hostile response, “You can come over here because there are some things I won’t say on the phone.”

Nothing heard from him since.

Moral: Perhaps there are bad realtors, perhaps there are good ones who know how to sell “product”, but imo, no-one should be hiding the data and trying to fool the public during (as Mr. Turner says) the biggest financial transaction of their lives.

I think realtors need to be regulated™.

#92 Adam on 09.21.17 at 8:57 pm

I am a long time reader first time poster. I am married to a Kiwi, and considering moving our family there at some point. Anyways, this video hits all the right spots. Especially for you Screwd Millennial:

https://www.facebook.com/topnz/videos/715055155350903/

#93 Knapman on 09.21.17 at 8:57 pm

Bloggers who come here to comment solely in order to build traffic have been routinely punted. You, too. — Garth
__________________________________

Understood and no worries, I shall return to commenting in my usual name without linking if that’s okay. Accept my apologies.

#94 Andrew Woburn on 09.21.17 at 9:01 pm

A while ago I wrote about Flippy the hamburger robot reporting for duty at a California fast food chain. I noted that if Flippy replaced two daily shifts at the soon-to-be California $15 hourly minimum wage, the annual payroll saved would be about $60,000. I said this threatened low end jobs because it means the robot could easily be financed over five years. I assumed Flippy would cost $250K or more.

I was wrong. Flippy is coming on the market at about $60,000. Even if it costs $90,000 with training and install, if you’ve ever been in the restaurant business, dealing with endless labour turnover, you will know how irresistible this idea will be.

Of course all this displaced burger flippers will be retrained as computer programmers so no worries.

https://techcrunch.com/2017/09/19/flippy-the-hamburger-cooking-robot-gets-its-first-restaurant-gig/

#95 Chico on 09.21.17 at 9:06 pm

#58 @ Raging Ranter on 09.21.17 at 7:31 pm

@ Raging Ranter

Your obsession with the Screwed Millennial’s sex life has me wondering if you’re a pervert?

If we searched your name, would we find you listed as a registered offender?

People have to register to be offensive?!?!? I thought most people just shot from the hip and without any consideration for how other people feel. Thanks for the info.

#96 Ronaldo on 09.21.17 at 9:09 pm

This is the worst reno story you will ever hear. Very sad. Let it be a warning to others when purchasing real estate.

http://nationalpost.com/news/toronto/home-sweet-homewreck-this-is-the-worst-reno-story-you-will-ever-hear

#97 ShowbiZZa on 09.21.17 at 9:09 pm

# 81
I found it. — Garth
That might be the funniest response I’ve ever seen! Check the link if you haven’t clicked it yet. Wait for it …

#98 Renter on 09.21.17 at 9:11 pm

@Travis

US dividends are taxable in a TFSA

#99 The end is near on 09.21.17 at 9:12 pm

Salvation is found in Christ alone.

John 14:6
Jesus answered, “I am the way and the truth and the life. No one comes to the Father except through me.

#100 SWL1976 on 09.21.17 at 9:14 pm

Thanks Garth, as always sage advice

@ Screwed Canadian Millenial

First off your name says it all right down to the misspelling of millennial. I tried to engage you in a rational conversation the other day, but with no response from you. After reading many of your nauseating comments I quickly have realized that rational conversation may be impossible to you.

All I have to say now to you and all those like yourself who do support more and more taxes upon the population is this… Why not ask yourself this???

Has government not proven to you beyond any reasonable doubt that they have been horrible at managing finances taken from us over the past 40 years???

What do they have to show for almost 50% taxation on the general public???

Billions upon billions in debt and a bloated beast of a machine that only knows how to siphon off every last bit of wealth from the same people the say the are here to protect.

You my Screwed little friend have been hoodwinked by the same system you think is here to save you. The way you choose to bash on boomers or others with more wealth than you simply shows you have taken the bait…

Hook… Line… and Sinker

It’s a race to the bottom and you seem quite ambitious to get there

#101 Focus on what matters on 09.21.17 at 9:17 pm

#61 Joe Schmoe on 09.21.17 at 7:42 pm

Agree, we need a Weekly Turner Nation watch on the pathetic ways of the ruling Libs. Trudope is the idiot driving this massive downward spiral of our great country, yet he always goes unscathed.

#102 crowdedelevatorfartz on 09.21.17 at 9:18 pm

Ahhhh Yesssss
Another day. Another Realtor convicted of irregularities.

http://www.google.ca/url?url=http://bc.ctvnews.ca/realtor-suspended-fined-for-attempted-shadow-flip-of-multimillion-dollar-home-1.3600498&rct=j&frm=1&q=&esrc=s&sa=U&ved=0ahUKEwi3-v_Qz7fWAhVL6GMKHduuAJ8QqQIIKTAA&usg=AFQjCNFNzeo_ZZw-G7MLx7-o2CPzd-rehw

A Vancouver Realtor purchased two houses through his construction company . HE was the listing agent for both homes.
After purchasing the houses …..He immediately relisted the houses for much higher prices. ( One house was relisted immediately for $400,000.00 more…..so much for working in the best interests of the client ).

His “punishment”?
The self regulatory Real Estate authority fined him $8000.00 and suspended him for 45 days…….

Now thats a deterrent!

#103 crowdedelevatorfartz on 09.21.17 at 9:20 pm

@#99 The end is near for Apocalypse 2017
“Salvation is found in Christ alone. ”

+++++++

Well ‘Pocky”
As Studs Terkel once said when asked if he believed in Jesus,
“Only when I stub my toe”

#104 Stone on 09.21.17 at 9:21 pm

#90 Renter on 09.21.17 at 8:50 pm

I have been humbled. Thanks for the link. I just don’t like this particular landlord. They’re jerks. I’ve rented before over the years when my employer had me working temporarily in a different location and the experiences were always good and reciprocating. Great landlords who cared. This one is different and I just don’t feel like doing more than the minimum with them. I won’t go into details but I did my part to assist them and when it comes to returning the favour to get things fixed, they can’t be bothered. Yes, I can go to the tenant landlord board but what a hassle. It shouldn’t come to that. When they demanded that I drive to go see them to drop off the cheque because of their stupidity, it just made me steam and it was the last straw. Best option will be to move on and find somewhere else to live when the 12 months are near finished.

#105 Sue on 09.21.17 at 9:22 pm

I know its trash realtor night, but this is a very interesting article about the tax changes to ccpc’s written by head actuary at morneau shepell, suggests they should tune up the federal pensions next, very interesting read….apologise if its been posted already.

https://beta.theglobeandmail.com/report-on-business/rob-commentary/if-proposed-tax-rules-are-about-fairness-federal-civil-servants-should-be-next/article36287503/?ref=https://www.theglobeandmail.com&

#106 Focus on what matters on 09.21.17 at 9:23 pm

Screwed Canadian Millenial
I like many on this blog stopped reading your endless drivel, with all your supporting facts and links, long ago.
Now, I’m annoyed that I have to put the energy to scroll through your posts- frankly not worth the effort to get to the next post, so give it a res and STFU.

#107 knock knock, whose there? your honest realtor. on 09.21.17 at 9:24 pm

#99 The end is near on 09.21.17 at 9:12 pm
Salvation is found in Christ alone.

John 14:6
Jesus answered, “I am the way and the truth and the life. No one comes to the Father except through me.
———————————————————
Realtor in disguise. #99 hoping to be ruptured this weekend. its 2017 and people believe in fairy tales, no wonder they trust realturds

#108 suburban coyote and pup on 09.21.17 at 9:25 pm

#81 Garth “I found it” LMAO

f52on

#109 knock knock, whose there? your honest realtor. on 09.21.17 at 9:26 pm

#81 MWS on 09.21.17 at 8:37 pm
@ Mike

Source?

@ OFSI – cancelled

Source?

I found it. — Garth
————————————–
haha Garth. just brutal

#110 T on 09.21.17 at 9:28 pm

#77 marty mcfly on 09.21.17 at 8:32 pm
http://www.ctvnews.ca/canada/toronto-area-family-on-the-hook-for-37k-commission-after-failed-home-purchase-1.3599860

It’s too bad but 1.3 mil for a semi was the first red flag lol

—–

It is. Thanks for the link.

Here’s something we can all agree is a funny quote from their agent:

“In a statement to CTV News, Tarasca explained that many hours and days were devoted to the family and that agents involved did their jobs correctly, “with integrity and honesty.””

Many hours and days were devoted… so Tarasca (the agent) is entitled to $37,000. Agents are a funny bunch.

#111 Renter on 09.21.17 at 9:33 pm

@Stone

Then vote with your feet and move. I know, costs you more money but if it removes stress, aggravation etc. It is worth it. I have been fortunate and always had good landlords. But I would move in a heartbeat otherwise.

#112 Spock on 09.21.17 at 9:37 pm

#29 Screwed Canadian Millenial on 09.21.17 at 6:22 pm

I understand it is hard to understand what a Billion is.

You do not believe articles that do not adhere to your views and google and paste articles which do. Does not work that way in real life and one day you will run in to the wrong person in your career and will pay the price for that. Keep my words in your mind.

Keep in mind that the person who says this in the article is none other than Manley, a former Liberal finance minister in the Chretien government.

You are full of hot air and the baloon will come down.

#29 Screwed Canadian Millenial on 09.21.17 at 6:22 pm
#23 Spock

Lol you’re really that gullible? You just believe whatever they tell you eh? You really are a servant for the billionaires. You poor sad useful idiot for the wealthy elites. Billionaires command, you obey. Pathetic!

#113 Happy Housing Crash Everyone! on 09.21.17 at 9:39 pm

T on 09.21.17 at 9:28 pm
#77 marty mcfly on 09.21.17 at 8:32 pm
http://www.ctvnews.ca/canada/toronto-area-family-on-the-hook-for-37k-commission-after-failed-home-purchase-1.3599860

It’s too bad but 1.3 mil for a semi was the first red flag lol

—–

It is. Thanks for the link.

Here’s something we can all agree is a funny quote from their agent:

“In a statement to CTV News, Tarasca explained that many hours and days were devoted to the family and that agents involved did their jobs correctly, “with integrity and honesty.””

Many hours and days were devoted… so Tarasca (the agent) is entitled to $37,000. Agents are a funny bunch.

_______________________________

These dirty POS SHYSTERS love to stretch the true. “Many hours and days were devoted” . THE truth is most likely between many minutes and hours. The fact the SHYSTERS are saying hours and days shows you how detached from reality they have become. These shysters are not worth $15 an hour . I wonder if they even passed elementary school since we know high school is a pipe dream for some SHYSTERS.

#114 akashic records on 09.21.17 at 9:41 pm

#100 SWL1976

Has government not proven to you beyond any reasonable doubt that they have been horrible at managing finances taken from us over the past 40 years???

What do they have to show for almost 50% taxation on the general public???

====

Excellent questions.

But there is one more:

What have you done in the past 40 years and what do you do now to change it?

Whatever it was, it does not seem to work and SMC most likely did not cast vote in most of those decades.

So the blame game is pointless and should stop here.

Otherwise we can circle around it for ever, instead of dealing with the real thing:

Where do we go from here to make sure that what you have described does not continue to happen?

#115 Innumeracy Chick No More on 09.21.17 at 9:42 pm

@ 45 AK …. oh so that’s what those are.

#116 MaxtheTax on 09.21.17 at 9:44 pm

Hey Garth,

Let’s implement the RE speculation tax. Works wonders over in Europe: if you buy a property and sell it within 3 years of buying, you get to pay the 15% RE speculation tax. Keeps communities stable and neighbours neighbourly.

Also, better provinces want to protect consumers from such vile greedy real estate predators as in the sad story above. So don’t forget to add BRAs to the survey folks:

https://www.alberta.ca/consumer-protection-consultation.aspx

#117 Spock on 09.21.17 at 9:47 pm

@ Screwed Millenial:

I am not a boomer but your description below (of boomers) is actually the textbook dictionary description of a screwed millenial.

Since you claim that boomers do not do anything for those not so well off and in another post (copied below) you claim that you back up your facts then let us see some facts:

(i) Can you compare the $$$ amounts donated to charity in 2015 and 2016 by the Boomers vs the Millenials (and no excuses saying millenials do not have money etc.).

You probably think most of the charities in Canada run on donations by screwed millenials like yourself.

You claim that boomers do not care about he less fortunate (which I think is completely wrong but your selfish brain will think whatever makes you agree with your agendas).

So provide the proof and data to back up your statement or have the guts to say you were wrong and that you cannot back up everything you say (which is perfectly fine – most folks including me may not be able to do the same at some point of time in their life).

——————-

#5 Screwed Canadian Millenial on 09.20.17 at 6:36 pm

I have to reiterate how you boomers are so oblivious to how entitled, spoiled and arrogant you come off. Everything is about YOU, what you can GET, what the government owes YOU.

Not an ounce of thought goes to those less well off than you. Nor towards paying it forward to the next generation.

———–

#28 Screwed Canadian Millenial on 09.20.17 at 6:59 pm

No I’m not trolling. I’m dead serious and I back everything up with facts.

——————–

#118 Bottoms_Up on 09.21.17 at 9:53 pm

Let’s not forget the BRA is also meant to hold the realtor liable in that they must act in the buyers best interests.

#119 Spock on 09.21.17 at 9:54 pm

Donating to Robbing Hood (aka T2 and Wild Bill):

Since T2 and Bill both say they are trying to raise $250 million from the tax changes for the small business – there is a better way to save time and effort for everyone involved.

Just charge each of the 1.17 million businesses $213.67 annually as a “We are poor and desperate and we can legally screw you so whatever fee” and that will raise $250 million.

From Government website:

As of December 2015, there were 1.17 million employer businesses in Canada, as shown in Table 1.1-1. Of these, 1.14 million (97.9 percent) businesses were small businesses, 21,415 (1.8 percent) were medium-sized businesses and 2,933 (0.3 percent) were large enterprises.

https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03018.html

#120 S.Bby on 09.21.17 at 9:54 pm

#52
Wrong on all points.

#121 Bottoms_Up on 09.21.17 at 9:57 pm

#113 Happy Housing Crash Everyone! on 09.21.17
—————————–
The buyer or sellers agent only gets 25% of the commission. So they would gross $10,000 on a 40k commission. Their net pay for that deal would be roughly $6,000, less expenses they may have incurred to help buy/sell the house.

#122 A soon to be screwed small bus owner on 09.21.17 at 10:01 pm

If JT rams through this insane tax grab of small bus cash the unintended consequence will be lay offs of employees! Isn’t he trying to help workers?

From 13% to 48% immediately!

Oh, and if you think I’m greedy for wanting to defer company taxes, we leave retained earnings in the company to grow the company, buy equipment and weather the financial storms that come so there’s cash for payroll.

I’m an employee too, I pay the same same rate as any employee, I just happen to own a company that may or may not make a profit once in a while. Our company must have the option to defer taxes or its game over Canada!

If you’re a smug employee that works for a small business thinking this will be a good thing, you’ll be unemployed soon enough.

If you’re your an employee, let’s say gov worker thinking you pay too much tax and it’s not fair!

Here’s me: no EI option, no sick days, no pension after 25yrs, 60 hr work weeks with the hope of making enough extra money risking my house to make the business work.

Oh, and then paying 48% tax on the profits and another 25% when I finally cash out.
You think 73% is fair?

I think I’ll start looking for a gov job.

Sorry for my ranting! I’m not the 1% I’m a middle class business owner with 12 employees.

There is a shit storm coming in this country, it’s not going to be pretty, hang on for the ride!

#123 Bob Loblaw on 09.21.17 at 10:01 pm

My wife and I were in the market for a new home several years ago so we went to an open house that we were interested in.

The realtor on site was more than happy to show us around for 20-30 minutes. Finally, at the end of the tour, he asked us if we we interested in the house, to which we replied we were, but guess what…the house was already conditionally sold. But don’t worry!…he had some other properties to show us, just sign this BRA, and he could show us similar properties.

Just a little annoyed he wasted our time, I said sure, show us the other properties, but I’m not signing the BRA. He drove us around town and showed us three additional properties. The third one we really liked, so that night I called a good friend of mine who was also a Realtor and got him to submit our offer, which was accepted.

The next week, the first realtor called my friend’s brokerage demanding to be listed as buying agent…but because there was no BRA, he didn’t get squat.

I still remember that experience fondly.

#124 TnT on 09.21.17 at 10:03 pm

#117 Spock on 09.21.17 at 9:47 pm

(i) Can you compare the $$$ amounts donated to charity in 2015 and 2016 by the Boomers vs the Millenials (and no excuses saying millenials do not have money etc.).

You probably think most of the charities in Canada run on donations by screwed millenials like yourself.

Silly comment…

Charities are run by volunteers – which means time.

Millennials beat boomers when it comes to volunteers.

Millennials are also exploited by having to work for free in many co-ops. Only way to get experience.

Millennials donate 40 hours each during high school alone.

It’s the boomers who get paid running charities.

#125 Smoking Man on 09.21.17 at 10:05 pm

Being accutly paranoid some times works in you’re favour.

Savage road trip lasted 20 days 4 hours. 18 casinos later all the loot from my corp is gone. I gifted long branch to the kids. Still legal.

Now my trustee has to call CRA and give them the bad news. When he’s done with them he’s got call all
Rbc and CIBC credit card companies and explane that he’s not paying. There a ford truck with 15k miles that’s a bit beat up and you can pick it up here.

T2 can you see my double middle finger solute.

Never fk with creative entrupenurs. We always find work around to problems.

Next week we start rehab to cure gambling drinking, not sure I’m giving up smoking yet. Nothing gives me more satisfaction than blowing some into the face of bike ridders that voted for communism.

I found some loot in an old trading account that I forgot about. At Seneca this weekend making that vanish too.

I love life.

#126 OttawaMike on 09.21.17 at 10:09 pm

Welcome to the wild west of Canadian real estate.

I just sold my 3rd house privately. Might as well. You’re on your own,even when you have representation.

#127 gfd on 09.21.17 at 10:11 pm

Exodus in motion.
http://nationalpost.com/news/canada/tax-changes-anti-rich-rhetoric-have-already-inspired-big-fish-to-leave-manley

#128 Owly Eyes on 09.21.17 at 10:17 pm

Remorse
http://cdn.historysaint.com/wp-content/uploads/2017/05/2016-10-04-10-32-17.jpg

#129 Spectacle on 09.21.17 at 10:17 pm

#82 crowdedelevatorfartz on 09.21.17 at 8:38 pm
Popped into the Dr’s office today for my annual proctological exam( gotta keep everything in tip top shape in my line of work !)
Anywho.
I jokingly asked the Dr ………….., ” You keep talking about Trudeau and the new tax laws yer gonna have to check MY blood pressure!”

He gave me a clean bill of health…… countless elevators to ride in the retirement years.

———————–funny—–
Got the joke, snicker, ack, gaaahh, how do you turn the fan on, in an old elevator?

Speaking of Stinking Elevators ( no slight Crowded Elevator Farts…) Looks like Canadians may be riding a slow elevator down as the economy is destroyed by Trudeau ( the crooked man, who runs his gifted millions through Morneaue, who also are both linked directly to the Panama Papers.). Some blind trust blush– !

My guess is he will get a plush position working for the Aga khans scamming religious organization in the future.

What a computer hack to that organization that would turn out to be. Epic actually! Knock-knock, hello Anonymous tm. Are you listening?!!

#130 Daisy on 09.21.17 at 10:21 pm

Garth, re: 49, under agency law, all agents have a fiduciary duty. A quick Google search can confirm that.

#131 um, no on 09.21.17 at 10:24 pm

Good to know. Doesn’t help now that I don’t real estate. No worries though. Won’t touch real estate for the forseeable future. If I did, definitely wouldn’t sign a BRA and would squeeze the agent on the commission like a pimple. And the seller.

My absentee landlord passed by yesterday as they forgot to cash a rent cheque and it was over 6 months ago so the bank wouldn’t accept it stale dated. When I met them the first time, they were all high and mighty being real estate investors. At that time, I mentioned that real estate would become a losing proposition and renting was better. They laughed at me and I could see that they thought I was stupid. This time, the second time I’ve seen them, not so much high and mighty coming from them.

Anyways, who forgets to cash a rent cheque? And can you believe that they originally wanted me to drive 50 kms to hand deliver the new cheque and then drive 50 kms to get back home? Unbelievable. They can’t there things in order amd expect me to make up for it. I’ll be month to month soon. Will be nice to see them every month to collect the cheque. 100 kms each time. Who said being a landlord was easy money? Way better to own a REIT ETF. Fools. I do thank them for being that though.

…………

you’re generalizing based on your limited experience. MANY people do quite well owning/renting out. Some rent out the basement which takes care of the mortgage. Some don’t like REIT’s, they are more hands on.

try to have an open mind. You’re likely not as smart as you think you are. Good luck

#132 Smoking Man on 09.21.17 at 10:26 pm

#124 TnT on 09.21.17 at 10:03 pm
Millennials donate 40 hours each during high school alone.
……

Not my kids. Screw that communist shit. I just gave letters out from my corp while they played video games.

Creativity starts at home.

#133 Ian on 09.21.17 at 10:26 pm

The OSFI B-20 doubters are back!!!

Too funny! Although, Scotia wouldn’t give me any HCG stock to short so they must be shorting it themselves as a hedge on their absurd mortgage portfolio. So the joke is clearly on me.

The bear pack is emerging from the woods. Happy BoC Day October edition less than five weeks away! And Happy Stress Test is like a stocking stuffer well in advance of Christmas!

#134 OlderbutWiser on 09.21.17 at 10:26 pm

@98 Renter – your comments are not quite correct. Shares of US corporations held in a TFSA are subject to US withholding tax of 15% but are NOT subject to Canadian tax. Note that the 15% withholding tax is NOT recoverable in a TFSA i.e. it cannot be claimed as a foreign tax credit.

Shares of US corporations should be held in retirement accounts such as RRSP, LIRA, RIF’s etc. Under the Can/US Treaty the withholding tax is reduced to nil. The rules are different if you are not dealing with shares of a US corporation.

#135 Is this true? on 09.21.17 at 10:34 pm

Here in Montreal friends of ours who wanted to negotiate down the commission of their realtor were told by the realtor that it is illegal for them to do so. Surely that is bullshit and bluff, no? On a related note, might the large realtor firm punish realtors associated with them who do accept lower commissions? The latter would make sense from a business perspective for the realtor firms (but, if this is indeed how industry works, should be declared illegal by government :-)

#136 conan on 09.21.17 at 10:34 pm

#125 Smoking Man on 09.21.17 at 10:05 pm

You could have learned how to play Poker and given yourself a fighting chance. Slot machines are the Devil incarnate.

https://giphy.com/gifs/u6pPVgnBvueI0

#137 OlderbutWiser on 09.21.17 at 10:36 pm

It is imperative that people read contracts before signing them. Never take anyone’s word for it…if they want to bind you legally it is generally because they are getting some benefit from it.

We sold our condo in May of this year and the realtor provided us with the Agreement of Purchase and Sale to sign. Upon reading it thoroughly I discovered a clause that essentially said that if the purchaser walked i.e. failed to close after signing the contract…I would have to pay the realtor’s commission from any deposit that the courts deemed I was entitled to! Needless to say, I amended that clause! When I explained my actions to the realtor he said “oh, I would not have claimed my commission in such a situation”…what a pile of crap!!! Of course he would have and I would have legally been obligated to pay!!! ALWAYS read a contract before you sign…if you have not signed, then you have the RIGHT to change any terms that you do not agree with. Oh and by the way, the realtor was SHOCKED that I actually took the time to read it, comment on it and change it….said it was the first time that had happened to him….WTF????

#138 Smoking Man on 09.21.17 at 10:42 pm

#126 OttawaMike on 09.21.17 at 10:09 pm
Welcome to the wild west of Canadian real estate.

I just sold my 3rd house privately. Might as well. You’re on your own,even when you have representation.
…..

Good for you. Now just image if your a govt worker with a defined pension and a new govt takes hold and says no retirement for you. Take this 73% hit on your pension.

What would you do. Still love you. Make your voice loud. But do it softly.

#139 akashic records on 09.21.17 at 10:42 pm

#125 Smoking Man

I am afraid Smoking Man you missed an important lesson (no, not from school).

If you say the exact same thing it will be seen entirely differently (even here, or here, at a financial blog especially) – based on whether you are thick on loot, or lootless.

May Wakan Tanka watch over your soul, my friend.

https://www.youtube.com/watch?v=UKMXtsWb6Bw&list=PL35vE4zMl6KzgJgto2NRyHkmAx5q-zPja

#140 SWL1976 on 09.21.17 at 10:46 pm

#114 akashic records

#100 SWL1976

Has government not proven to you beyond any reasonable doubt that they have been horrible at managing finances taken from us over the past 40 years???

What do they have to show for almost 50% taxation on the general public???

====

Excellent questions.

But there is one more:

What have you done in the past 40 years and what do you do now to change it?

Whatever it was, it does not seem to work and SMC most likely did not cast vote in most of those decades.

So the blame game is pointless and should stop here.

—————–

I agree the blame game needs to stop and Joe and Jill public really need to wake up and understand who the real crooks are.

As far as what I have done… We I have contributed my fair share always paid my taxes on time. I started a business in my early 20’s and had a brush with bankruptcy due in most part because of government bureaucracy. I came good for all my debts after years of hard work and now have an incorporated company with retained earnings should I fall on hard times again – or at least I thought – and just recently this past year I started a pizza shop with my wife and business partner for which we now employ 7 people. Now with the recent tax changes I really do question my sanity.

As far as where do we go from here… As I always say, I’m just a guy trying to survive in a mixed up world

#141 OttawaMike on 09.21.17 at 10:54 pm

And now I present surfing dogs:
https://twitter.com/planetepics/status/911020472359407616

#142 Bob Dog on 09.21.17 at 10:59 pm

par·a·site

ˈperəˌsīt

noun: parasite; plural noun: parasites

1. an organism that lives in or on another organism (its host) and benefits by deriving nutrients at the host’s expense.
derogatory

2. a person who habitually relies on or exploits others and gives nothing in return.

3. a person who receives support, advantage, or the like, from another or others without giving any useful or proper return, as one who lives on the hospitality of others.

4. (in ancient Greece) a person who received free meals in return for amusing or impudent conversation, flattering remarks, etc.

synonyms: hanger-on, cadger, leech, passenger; informalbloodsucker, sponger, bottom feeder, scrounger, freeloader, mooch

“she longed to be free of the parasites in her family”

#143 Dmitry on 09.21.17 at 11:00 pm

#122 A soon to be screwed small bus owner

Do not bother to spend time explaining and providing reasonable fact.
They would not listen.
They simply do not care.
I’ve made the same mistake trying to explain, providing facts and numbers, but they just ignore.
All the screwies can focus is on their communist BS like confiscate from wealthy and divide among losers.
Just ignore them. They’re losers that will never understand.
Let’s focus on other more important things.

Back to RE and realtors.
Looks strange, but for some reason CommFree is not popular in Ontario and GTA especially.
When I moved from Edmonton to Toronto in 2008, I was selling my townhouse in Edmonton via CommFree.
The experience was great. In fact, every one I knew were using CommFree as well. It did cost me ~$800 altogether. The agent came and took pictures and dropped signs. Then online ad came up on CommFree site. There was no MLS site back then, at least no one knew about it. Everyone was shopping for RE directly on CommFree site. All I had to do is to make sure the house looks nice and take calls from potential buyers. Then show them the house and negotiate, which was pretty easy as I knew how much I wanted at the end.
Of course RE agent were quick to show up.
I did not deny them right away.
I say sure, no problem using your services. See, I want this much $$$, so sell above $$$ and it’s all yours. It seems to fair to me. But the response I was getting something along the lines that it does not work that way. So fine, do not give a damn, it’s not me coming to your door and bagging to sell, so if you come to my door, I dictate conditions. So they quickly loose their smiles and walk away.

Still do not get why it doesn’t work in GTA with CommFree as it used to work in Edmonton.
Maybe it’s part of this hype and corrupt system that developed over the years?
In any case, next time I sell, I’ll use CommFree and see what happens. Worst case I can loose somewhat under $1k.
What do you think?

#144 n1tro on 09.21.17 at 11:02 pm

@Mark #63

The assessment price was $10K more than what the asking price was. Pretty sure the seller knew what was coming and priced it accordingly for a quick sale. I’m going demand a cut of the commission when I sell too unless the agent does something extraordinary to earn it.

#145 Spectacle on 09.21.17 at 11:07 pm

“Mr Mystery Money Misery “on 09.21.17 at 8:30 pm
DELETED

———- you know…….

We get people, Canadins like The Honourable Garth Turner , stepping in front of a bus for us, all of Canadians. And then we get those entitled , who feed or prey of of their efforts.

So much I appreciate about wht Garth does with his contribution here. And what he did while appointed.

Thanks,

Now imagine 10 others just like him, working to scrub the satin within our system.

Sleep well my friends.

#146 Entrepreneur on 09.21.17 at 11:08 pm

I think the realtors should have these things iron out before the buyer enters the room, BRA should be banned entirely. Come on, ruin more lives, correct this nonsense and no one should sign it just to stand together.

T2 did not talk much about the CETA free-trade agreement between Canada & Europe, avoided it talking about our domestic problems. And he says it will benefit all Canadian “Trudeau says CETA will benefit all Canadians experts not so sure” site. It says it will help the big businesses/corporations but losses to the citizens, unemployment & environmental.

And not much talk with the panels on the news either. Did T2 purposely sneak this deal through without the citizens of Canada knowing what was signed? And for all of us, what hog wash!

#147 Dmitry on 09.21.17 at 11:09 pm

# 81
I found it. — Garth

Just showed the pic to my 12-year daughter.
She wears her unicorn t-shirt almost every day.
First thing she said – “photoshop”.
Like there’re real ones that are not “photoshop”.

#148 Rentin on 09.21.17 at 11:31 pm

“Given all the cash M&A will be piddling away, it might have made sense to close, rent out one of both properties, and weather the equity storm until markets heal. At least then they’d have assets, not merely regret.”

Garth – First piece of bad advice since 2008. The sellers and the agent first have to spend their own money to get what they are owed. They won’t be spending 20K to maybe recoup 40K that was agreed to under questionable circumstances. As for the sellers, they need to sell first before they are able to establish a loss. Maybe they sell for 10K less. Maybe they never sell….

In BC property transfer tax is 2%. M&A are 20K ahead by not purchasing already….

#149 45north on 09.21.17 at 11:35 pm

Sue: from your link: If the federal government really wants to make a dent in the deficit and promote fairness, it should consider what can be done in its own backyard. There are nearly half a million active and retired civil servants who participate in the federal Public Service Pension Plan (PSPP for short). If any program is in need of an overhaul, it is the PSPP.

except that the Federal Government took money out of the Plan.

The government countered that since retirees are receiving their pension benefits as required by law, they are getting what they’re entitled to and do not have the right to share any surplus.

http://www.ottawasun.com/2012/12/19/supreme-court-ruling-says-ok-for-chretien-to-take-ps-pension-funds?token=698dc98594b2b9525de23d4b5d23f47c

so by taking the money from the Plan, the government explicitly guaranteed “the pension benefits as required by law”.

January 2012: not that long ago

#150 Ian on 09.21.17 at 11:36 pm

Awesome bear pic!!!

The U.S. stock market looks like it did before most of the previous 13 bear markets

http://on.mktw.net/2hm5R1o

#151 OttawaMike on 09.21.17 at 11:40 pm

Smoking Man on 09.21.17 at 10:42 pm

I do have an indexed govt pension. Don’t worry Smokie, the guys who are 40 and in govt. won’t see their’s. The system cannot sustain these deals.

As much as I dislike new taxes, the CCPC changes are all overblown. It’s more about the optics than the reality. The libs have done a shite job of selling it to the business owners as well.

#152 Briana on 09.21.17 at 11:43 pm

The Dip after the Blip!!! Stay tuned folks. Sorry to all of those who bought complete shacks in bidding wars without home inspections… aka pigs with lipstick. Now those places are going to be worth much less than the actual going price from price decline….and def lots of those places out there, new and old. Shotty condo buildings and homes with major work that should be done, mold, foundation issues/roofing, electrical etc…..

#153 Briana on 09.21.17 at 11:53 pm

Why won’t Trudeau stop real estate scammers?
Very interesting article ….

https://beta.theglobeandmail.com/opinion/why-wont-trudeau-stop-real-estate-scammers/article36351746/?ref=https://www.theglobeandmail.com&service=mobile

#154 will on 09.21.17 at 11:57 pm

And Jesus wept.

#155 DG on 09.22.17 at 12:01 am

Stories from two friend who recently sold their townhouses in Metro Vancouver:
– The first unit was posted for 629K. Two offers after a week but both offers were at the asking price. Friend took the offer and sold. In the same compound, a similar unit was posted at about the same time for 650K. It has been on the market for two months already. The seller recently reduce to 640K, Still not sold.
– Another friend wanted to post his townhouse for 650K, based on the prices of similar units in his area, but the relator convinced him to post for 690K. Three offers came. Two offers were below the asking price (both around 650K) and one offer was for 700K.
The offer for 700K was from a recently divorced single mother who’s daughter had a friend that lived in the same compound. So the mother “really wanted the unit”. After the offers were received mu friend’s relator called the relator representing the single mother and said that two additional offers were received, the mother freaked out and offered for 720K. Essentially overpaying 70K!!!

#156 Mclatch on 09.22.17 at 12:15 am

@SCM

I was wondering what good comes from taxes? Where does ones “fair share”go? Just curious. Is income tax an efficient means of spending or could there be a better way? I hear what your sayin but wonder aren’t we all just being set upon one another? For all the boomers I wonder couldn’t we all done more to keep us from our present plight?

#157 Long-Time Lurker on 09.22.17 at 12:24 am

#181 Arne on 09.21.17 at 6:05 am

Garth, I read your article carefully, especially the last 5 paragraphs, then reluctantly waded through the usual 200 or so useless comments from people more interested in being witty than engaging in any meaningful debate, and I still don’t understand a frigging thing.

What the heck is a HISA? (Google tells me it’s the Human Initiative to Save Animals)

I’ve got a little money (so I think that means 3 ETFs for me) … which ones for crying out loud?

HISA = High interest savings account. (Try not to laugh)

Read Garth’s post again. Figure out what balanced and diversified is. 60% growth (equities) 40% safe (bonds). Not all in one country, either. Less in US, very overvalued.

Try this:

VXC 30% (World ex-canada equity etf)
VCN 30% (Canada equity etf)
ZAG 25% (federal bond etf)
ZPR 10% (preferred share etf)
HISA 5% (high interest savings account)

Whaddya think, Garth? I tried to keep it simple.

Taken from this:

#138 Jesse Wierz on 03.21.17 at 2:19 pm
Sample Garthfolio?

ZAG 7% (federal bond etf)
ZPL 7% (provincial bond etf)
ZHY 16% (US corporate bond etf)
ZPR 20% (preferred share etf)

VTI 20% (Total market etf in US$)
VCN 15% (Canada equity etf)
VRE 5% (Canada REIT)
VXC 20% (World ex-canada equity etf)

The correct US weighting is about 20%, of which 13% will be the last 500 US corporations.

Yes, Disney is included. — Garth

#27 Martha on 03.23.17 at 7:13 pm
Newbie’s DIY sample Garthfolio. Lookin’ for feedback in all the wrong places. Pleeeeeeeze and thanks.

XIU – 16% Cdn equity
ZRE 5% Cdn REITs
21% Total Cdn Equity

VTI 13% US equity (USD)
VBR 6% US small-cap (USD)
19% Total US Equity

XEF 16% Itn’l Equity
VEE 3% Emerging markets
19% Total Itn’l Equity

ZFS 6% Gov’t bonds
CBO 8% Corp bonds
VSB 9% Short-return bonds
XPF 18% Preferreds
41% Total Fixed Income

Yellen’s starting to “normalize the Fed’s balance sheet” (take money out of the US financial system). I forgot the number. ($20 bil a month?) So is this going to cause deflation (disinflation)? I think if things go south then Trump will fire Yellen in February (?) when her term expires and stack the Fed with his own team.

“Janet, you’re fired.”

#158 Financial Samurai on 09.22.17 at 12:30 am

Wow, what a sham!

Ugh… I hate the pricing structure of the real estate industry. But, they are all in cahoots and won’t show buyers a house unless a juicy commission is attached to it.

I sold my house in June 2017, and I’m still glad I did. But I will always feel bad paying the 4.5% commission. At least it is a write off!

Sam

#159 Karma on 09.22.17 at 12:54 am

#74 Travis Bickle on 09.21.17 at 8:23 pm
“Someone on this site surely knows answer to this:
I purchased Apple stock in January this year for my TFSA ($20,000 worth of it).
I know that my capital gain is tax free.
However, how about the dividends paid to me by Apple? Is that taxable by IRS?

Thanks.”

US dividends are taxable in the TFSA, but it should be withheld by custodian banks on your behalf before arriving in your account. Do the math yourself to confirm. See how much dividends come into your account vs what was expected.

#160 Karma on 09.22.17 at 12:55 am

#74 Travis Bickle on 09.21.17 at 8:23 pm
“Someone on this site surely knows answer to this:
I purchased Apple stock in January this year for my TFSA ($20,000 worth of it).
I know that my capital gain is tax free.
However, how about the dividends paid to me by Apple? Is that taxable by IRS?

Thanks.”

This should help:
http://www.taxtips.ca/stocksandbonds/recommendedstocks.htm

#161 Dolce Vita on 09.22.17 at 1:39 am

#86 FOUR FINGERS WATSON

I disagree.

OSFI exists to protect the Banks from bad financial decision making, not the people.

I wonder though if B20 will have a negative impact on the RE market in the long run?

The worst case was Vancouver after the Oct. 2016 insured mortgage stress test which resulted in 32% fewer new mortgages and a 7% drop in the average mortgage amount [1st Qtr 2017]. The impact was less in other Cdn. cities.

It seems to me that the end result is fewer but more qualified buyers that will not sell their homes at a discount in the future to escape financial strains from rising interest rates.

I suspect this is why in Vancouver prices are sticky even with greatly diminished unit sales and stagnant price appreciation. Those that bought post Oct. 2016 with an insured mortgage can financially weather a +2% increase in rates.

CMHC reports 80% of 1st Qtr 2017 mortgagees had a credit score of 700+ and only 10% a score of < 660.

The same ought to be true for uninsured mortgage stress testing.

So if anything, B20 helps to ensure that rising interest rates will not cause buyers to sell their homes in a panic due to mortgage interest cash flow financial strains [i.e., up to +2% from today].

#162 Dolce Vita on 09.22.17 at 1:50 am

#86 FOUR FINGERS WATSON

Forgot to add, true in the short run many buyers will be disqualified by B20 but in the long run, better for RE values as panic selling diminished due to interest rate increase financial strains.

Means price appreciation more likely in the long run; however, some short term pain in volume sales vs. long term pain as a result of panic selling due to financial strains.

B20 probably a good thing in that it will protect people from their financially unqualified house lust and thus, bad economic decision making.

I worry more about buyers that purchased in the past few years without a mortgage stress test.

Doomer financial marketing studies say they will implode financially with rising interest rates.

We’ll learn soon enough if that is true.

#163 T on 09.22.17 at 1:58 am

#121 Bottoms_Up on 09.21.17 at 9:57 pm
#113 Happy Housing Crash Everyone! on 09.21.17
—————————–
The buyer or sellers agent only gets 25% of the commission. So they would gross $10,000 on a 40k commission. Their net pay for that deal would be roughly $6,000, less expenses they may have incurred to help buy/sell the house.

—–

There are listing and selling agents. There is no such thing as a buying agent in a deal. One side lists a home, the other side sells it.

As far as the commission. First the commission is split between representing brokerages. It’s common for this split to be 50/50 but also common for it to be 70/30 and variations in between. Then the brokerage splits with the agent and no residential brokerage has a 50% split anymore. Agents are often paying a flat fee to do the deal of less than $1000 a deal, often less than $500. It’s a newer brokerage model but it has been adopted by many brokerages over the past decade.

So – point is agents are taking home far more than 25% of a deal’s commission these days.

#164 Dolce Vita on 09.22.17 at 2:04 am

#73 Happy Housing Crash Everyone!

#81 MWS

I found it. — Garth
__________________________

Yet again, thank you upper deity of choice or Big Electron otherwise as I drank my morning espresso BEFORE I read your posts.

Otherwise, it would have come out thru my nose laughing so hard.

Thanks for making my morning news read fun as always here at the THE Great Canadian Blog!

#165 T on 09.22.17 at 2:11 am

#118 Bottoms_Up on 09.21.17 at 9:53 pm
Let’s not forget the BRA is also meant to hold the realtor liable in that they must act in the buyers best interests.

—–

BRAs are meant to protect the interests of realtors in the deal. A BRA is insurance someone doesn’t use a realtor to view many homes then use a different one for the deal – like say dealing directly with a listing agent. There is some language to make it look like an agent is representing a buyer’s interests at first glance, but if you actually read it you will see it’s just contract fluffing.

If an agent was representing a buyer’s interests an agent would be incentivized (paid more) for negotiating a lower price. Unfortunately this is not how the industry works.

Side note. RE/MAX stands for Real Estate Maximum Commissions. Cleverly disguised in the open, like much of the industry.

#166 NEVER GIVE UP on 09.22.17 at 2:31 am

#99 The end is near on 09.21.17 at 9:12 pm
=============================
I had an employee who, through his Jehovah Witness programming believed that the end was very near. He fretted about it every time I saw him.
He was having financial problems and then his mother died and this tipped him over the edge.
Sadly he ended his own life by hanging a few years back.
I miss him.
Anyone who is depressed and gets caught up in this type of delusion should see a doctor and get simple medication to balance brain chemistry.
I am sure if my friend did this he would be here with us today.
I am not saying you are at risk but your handle reminds me of my friend and employee.

#167 Mark on 09.22.17 at 2:37 am

“Here in Montreal friends of ours who wanted to negotiate down the commission of their realtor were told by the realtor that it is illegal for them to do so. “

Complete and unadulterated BS. In fact it is illegal for any industry association to conspire or racketeer in such a manner in restraint of trade.

A Realtor can refuse to negotiate with you on their compensation other than the offer they make in terms of their professional fees. But it definitely is not illegal (quite the opposite in fact) for a Realtor to negotiate with his/her client the fees applicable for services rendered.

#168 Steve French on 09.22.17 at 3:16 am

I’m with Screwed Canadian Millennial !

———–

“It’s time for a global Millennials revolt”

https://www.macrobusiness.com.au/2017/09/time-global-millennials-revolt/

#169 Karma on 09.22.17 at 3:31 am

Well this is interesting. Flop, you got some competition!!

https://thinkpol.ca/2017/09/09/investors-dumping-metro-vancouver-homes-at-a-loss-as-bubble-bursts/

#170 Tony on 09.22.17 at 3:41 am

Re: #30 Clueless on 09.21.17 at 6:24 pm

I’m waiting for the new Bitcoin ETF in Canada. With the U.S. dollar poised to collapse it looks like the perfect place to park money.

#171 Myra Andrews on 09.22.17 at 3:42 am

There are 500 detached houses for sale for $4 million or higher ($3,988,000 and up to be exact) in Vancouver’s westside.

Does that sound like a lot? This is for detached homes only.

http://www.realtylink.org/prop_search/Summary.cfm?BCD=GV&imdp=9&RSPP=5&AIDL=21,22,23,24,26,27,28,29,30,31,32,33,34,35,36,37,39,40,41,42,43,44,10105,853&SRTB=P_Price&ERTA=True&MNAGE=0&MXAGE=200&MNBD=0&MNBT=0&PTYTID=5&MNPRC=3988000&MXPRC=75000000&SCTP=RS

#172 Tony on 09.22.17 at 3:53 am

Re: #143 Dmitry on 09.21.17 at 11:00 pm

My brother sold his house in 1987 through, it was either Peachtree or Peartree. I think it was Peartree. The real estate market fizzled out after that and companies like Peartree went to into obscurity. There was also 1 percent reality but it didn’t catch on. Anyone with a brain would have just put a sign on their lawn “for sale by owner” in the days where a house sold in one day rather than giving all your money to a realtor needlessly. In America homes are just sold on the internet like any other commodity. I guess Canadians just like giving money away for free.

#173 BillyBob on 09.22.17 at 4:09 am

#29 Screwed Canadian Millenial on 09.21.17 at 6:22 pm
#23 Spock

Lol you’re really that gullible? You just believe whatever they tell you eh? You really are a servant for the billionaires. You poor sad useful idiot for the wealthy elites. Billionaires command, you obey. Pathetic!

===================================

Hmmm.

I am no billionaire, nor am I a boomer (earlier model Gen X). But as someone who left Canada to make his (modest) fortune, I can tell you the political/social climate in Canuckistan (as well as the actual climate!) is the main driver behind my decision to leave every tax-free penny outside Canadian borders forever. If me and my relatively modest net worth think this way, I can’t imagine why you wouldn’t think someone with far more to lose wouldn’t be upping stakes and moving their assets out of Canada. Wishful thinking on your part, nothing more.

It gives me great satisfaction to know I will never, ever, be forced to support your whiny views in any substantive way. An you have made zero case for anyone to do so. Every theory and idea you espouse has been tried, failed, and discredited. It is the curse of each new generation, I suppose, to continually think they’ve discovered something new. Like a baby who thinks they’re the first person to observe the sun. But if you think your baiting is achieving anything other than hardening people’s opinion against everything you purport to believe in, you are truly mistaken. I can only hope your ranting gives you some sort of therapeutic release?

It’s one thing to be charitable and giving towards those with less, it’s quite another when those with less decide to just sorta grab it. It amuses me no end that you consider boomers “gimmes” when your entire mantra with wages, confiscation, and redistribution is one giant “GIMME!” I thought Millennials were supposed to have a grasp of irony?

There’s no shame in lacking in life experience or IQ points, but can you at least tell us why you choose to broadcast these facts about yourself so aggressively?

I know, I know. Trolling is fun. But some of us would like to have an adult conversation.

#174 I'm stupid on 09.22.17 at 4:24 am

If T2 and his tax collecting army want more revenue I have an idea; instead of going after doctors and hard working small business owners why don’t they force internet retailers to collect sales tax. eBay power sellers, amazon secondary sellers etc etc.

I’ll use car sales as an example; if you sell your car privately that’s fine. Buyer pays hst etc etc.

If you sell a car every week you’re a curbsider, not cool because you’re operating a business but avoiding taxes.

A lot of people have re selling businesses online but disguise them within sites like EBay and Kijiji. Those are the ones not paying their fair share.

#175 dotard on 09.22.17 at 5:41 am

I wish the “Dotard” would Shut the F%$% Up

While Canadians continue to get horny over real estate
the rest of the world is becoming a more dangerous place.

http://www.bbc.com/news/world-asia-41356836

I know KIM Jong is a dangerous person, but hell, I believe the most dangerous person in this world right now is the Dotard Trump.

Hopefully a more reasonable leader such as china or russian will calm the storm. Before we have a trigger WW3

#176 GTA investor on 09.22.17 at 7:39 am

Wow, we definitely knew about these BRAs and never signed one for our RE deals, but THANKS for this story and final tips Garth. Everyone involved in RE must become educated first before buying. Don’t rely on someone else to guide you through the process. Take the time to learn every detail you are responsible for.

Vince definitely has the correct last name.
lol…. translation, take your pick:

http://www.spanishdict.com/translate/tarasca

tarasca
1 (monstruo) carnival dragon; monster
2 (comilón) glutton; (sangría de recursos) person who is a drain on one’s resources
3 (mujer) old hag; old bag (familiar)
4 (And) (Centroamérica) (S. Cone) (boca) big mouth

#177 Oft deleted much maligned stock picker on 09.22.17 at 7:43 am

Indeed….only an idiot would sign a BRA. Realtards are a dime a dozen……line them up outside the door and take offers. I never did a deal without forcing the agent to reduce the commission by more than half. With MLS the realtors you use doesn’t matter…..even a blind monkey can list a property. It’s up to the individual to have done their due diligence beforehand and know the market. In a hot market there is zero reason to use a real turd. If one comes sniffing around your FSBO give them an exclusive for twenty four hours specific to a client. If four identical houses on your street sold in the last three months identical to yours , one just yesterday…..you don’t need to be a chartered surveyor to know what market value is……dummy……so why use a realtard? Take their offers…..negotiate the commission down….sit back and let them stew. This way the buyer will get super pissed if the offer is blocked by the commish alone….and the 24 clock is ticking like a proverbial pistol to the nads. Take charge….read a book…..don’t be a sucker……and guys……never wear a BRA.

Vote…..my little pony jumped another 15% …..giving me 36% in two days……normally I’m a 20% guy……but I’m older now…..can handle a little risk….know the fundamentals on this 100%…..so I’ll wait for a thousand percent and more……greed is good.

ADD: 35 stocks is plenty for a full seven figure quiver…..60 issues would be unwieldy unless you had staff to do all the necessary reading. At 37 personally ….90 % of the issues I own pay divvies….and stare you in the face every day. The average holding is up 50% over 3 years….and all maple. US issues also come with a withholding problem….which means extra accounting and tax strategies. Forget the TSX as an index….pick the right stocks. Since this is not a bullboard and Garth isn’t a promoter I choose not to disclose individual names currently speculated…..but my little pony trades on the TSX…..in brilliant colour for all to see. Anyone who studies the entrails every day on every issue…as I do….it’s obvious.

#178 Darryl on 09.22.17 at 8:03 am

@ Mike
Source?
@ OFSI – cancelled
Source?
I found it. — Garth

——————————————————————
Now that was funny Garth .
Thanks for the end of week laugh .
Tears in my eyes

You had that one stashed away for the perfect moment didn’t you ?

#179 Once again.... on 09.22.17 at 8:18 am

@ Mike

Source?

@ OFSI – cancelled

Source?

I found it. — Garth

*****

Haha! once again, thank you Garth for the healthy therapy!

#180 crowdedelevatorfartz on 09.22.17 at 8:29 am

@#173 BillyBob
“I thought Millennials were supposed to have a grasp of irony?”
******

Total agreement , well said

Nah, Screwed Canuck Millenial Whiner is too busy spewing anti boomer vitriol to actually take a look around.
Scroll on by, ignore the texted tripe, eventually time and rising taxes will suck the wind out of her sails.
Or the next generation blaming millenials for all the worlds’ problems…..

#181 TurnerNation on 09.22.17 at 8:32 am

Was this posted? Why pay Kanadians $30-60 an hour.
See ya in Mexico or Brazil.
We are redundant on the world stage. Just a tax slave colony to be milked.

(Hint: “Commonwealth” means the elites’ wealth, not ours. Always flip their words around to make sense.
Fellow commoners. God stave (off) the Queen?)

http://www.cp24.com/news/up-to-255-gm-canada-workers-to-be-laid-off-at-st-catharines-facility-1.3600470

#182 Victor V on 09.22.17 at 8:42 am

Breaking news: Canadian CPI rose 1.4% year over year in August vs estimated 1.5% rise.

#183 crowdedelevatorfartz on 09.22.17 at 8:53 am

Well, its taken a North Korean Dictator to opine the obvious about Prez Trumps mental capabilities….and with an obscure english word no less.

Word of the week………

Dotard.

#184 Russ on 09.22.17 at 8:57 am

to paraphrase:
The end is near on 09.21.17 at 9:12 pm

Salvation is found in Christaxing alone.

John 14:6
Justin answered, “I am the way and the truth and the life. No one comes to the Father except through me.

#185 Chicken Little on 09.22.17 at 9:02 am

Sounds like Vince the agent is going through hard times and needed that BRA to finance his Audi payment. Has it come to this already?

#186 IHCTD9 on 09.22.17 at 9:34 am

#174 I’m stupid on 09.22.17 at 4:24 am

If you sell a car every week you’re a curbsider, not cool because you’re operating a business but avoiding taxes.

A lot of people have re selling businesses online but disguise them within sites like EBay and Kijiji. Those are the ones not paying their fair share.

____________________________________

That ain’t the half of it either. The online stuff and car sales are small potatoes.

It’s getting worse all the time, and the government’s answer is “scary” robo calls from OMVIC at the behest of bots on Kijiji.

Someday Trudeau or his successor will realize they’ve got a real problem on their hands, but until then – it’s a bloody free-for-all. Essentially NOBODY is getting caught doing this stuff.

#187 IHCTD9 on 09.22.17 at 9:36 am

#174 I’m stupid on 09.22.17 at 4:24 am

If you sell a car every week you’re a curbsider, not cool because you’re operating a business but avoiding taxes.

A lot of people have re selling businesses online but disguise them within sites like EBay and Kijiji. Those are the ones not paying their fair share.

____________________________________

That ain’t the half of it either. The online stuff and car sales are small potatoes.

It’s getting worse all the time, and the government’s answer is “scary” robo calls from OMVIC at the behest of bots on Kijiji.

Someday Trudeau or his successor will realize they’ve got a real problem on their hands, but until then – it’s a bloody free-for-all. Essentially NOBODY is getting caught doing this stuff.

#188 Prairieboy43 on 09.22.17 at 9:57 am

Millenial bashing daily on this Blog?? Many people have issues with Millenials. Most are excellent contributors to our society. However there a few, that influenced others.

Here is good vid, regarding Brendan O Neil beef with Millenials.

https://youtu.be/SW7jszRrI60

#189 For those about to flop... on 09.22.17 at 9:59 am

Karma 9.22.17 at 3:31 am
Well this is interesting. Flop, you got some competition!!

https://thinkpol.ca/2017/09/09/investors-dumping-metro-vancouver-homes-at-a-loss-as-bubble-bursts/

//////////////////////////

Hey Karma,they are only showing potential losses and the Flop is showing you actual losses and has been for six months.

People are losing money on condos.

People are losing money on low end detached

People are losing money on high end detached,although these guys have deeper pockets and the bulk of them are hanging on

David Eby needs to start reading this beast of a blog.

If I was allowed to publish my Pink Folder in full, I believe I would change a few people’s minds on here.

A lot of people seem to think because the media hasn’t reported much yet that the game is in the same period.

One of the cheapest houses in Vancouver around the corner from where I live just took 80k off after trying to get a number that would have flown off the shelf 18 months ago.

People will continue to do what they’re gonna do ,but at least I tried to show a few guys on here what is going on while I was laid up for an extended period.

I am back at work now doing 42/43 hours a week but I still do it on the weekends as all I can do is try and rest from the soreness from the weeks work.

From the time I locate the case ,the sale gets done and then confirmed,seems to be roughly taking 6/7 months and so as long as I am still collecting them and prepared to follow it through I will continue.

Luckily for me ,I am already married because I don’t think I could pull my wife if I had this as a hobby when we were dating…

M43BC

#190 Dups on 09.22.17 at 10:00 am

The realtors have had it so easy for a long time. They earn big money for little work most of the time. They also rush clients to make a split minute decision like they are buying oranges at the store. These agents somehow forget that the ones that have the $$ have the power, but somehow that is reversed in Canada. I have not idea why people that sell the property think they have the upper hand!

#191 @ dotard on 09.22.17 at 10:01 am

#175 dotard on 09.22.17 at 5:41 am

I wish the “Dotard” would Shut the F%$% Up

While Canadians continue to get horny over real estate
the rest of the world is becoming a more dangerous place.

http://www.bbc.com/news/world-asia-41356836

I know KIM Jong is a dangerous person, but hell, I believe the most dangerous person in this world right now is the Dotard Trump.

Hopefully a more reasonable leader such as china or russian will calm the storm. Before we have a trigger WW3

—-

The problem with people who never experienced actual political dictatorship is that they don’t have a clue.

I would suggest you to try this post at the local public sphere while living in China, North Korea or many other countries around around the world.

I bet you would not dare.

What you don’t realize is that while you can say whatever you want about Trump (or T2 for that matter) without the fear of getting your life destroyed, attempts to delegitimize a US president in office in an internal political fight greatly emboldens the actual political dictators, who would not hesitate to send you to a labor camp for a decade for your little post of “dislike”.

Just look at some new nuclear players, like Kim Jong or Iranian president Hassan Rouhani changed, more aggressive attitude due to the delegitimization of the US president.

If you think that this makes you safer, you should really live in a real dictatorship to learn some lessons.

#192 IHCTD9 on 09.22.17 at 10:08 am

#173 BillyBob on 09.22.17 at 4:09 am
_____________________________

The whole idea of government being able to extract revenue from a population at will is a joke anyway. It’s been demonstrated over and over again that it just doesn’t work past a certain point. We’re already well past.

If SCM and her ilk want to tax the “wealthy” into submission – let her think she can do it. She’ll die broke like the rest of ’em.

Myself – I’ve never made more money than now, and 2016 taxes have never been so low. I even took my unnecessarily increased Federal CCB (thanks Trudeau) payments and chucked ’em into RRSP’s just so I could get a “tax return” on it lol!

I’ll be voting Trudeau for even more of this action. Wynne too, just because I’m not really feeling the idea of those big tuition bills coming up in my near future. Hey, if the tax paying youth of Canada prefer to foot the bill for me – I sure won’t say no sukas.

SCM and her crew are going to forget all about the boomers when they realize it was actually Gen X who had the easy road, and that it was paved with the blood and sweat of poor Liberal voting Millennials.

You’re doing well keeping your fortune outside of Canada, and I applaud your decision on this. But, for those of us unable to leave, it is actually pretty easy to simply pull out the cleaver and “make some adjustments”.

#193 Old Ron the Realtor on 09.22.17 at 10:15 am

Thanks for the article Garth, In the old days there was no “Buyer Agency” meaning both the Listing and Selling Broker worked for the Seller. Buyer Agency came into being, and with it the BRA.

There should be a shorter time limit on the contract, no doubt. Say 30 days max. If the agent has performed well the buyer can renew the contract very easily. If not, it is time to choose another agent. The idea of tying a buyer up for several months is just wrong.

However writing up a new contract for every property is over-kill . I have shown buyers as many as 15 properties in a week. The buyers would get sick of the paperwork. Just put a shorter time limit on the BRA, and most problems are solved.

#194 n1tro on 09.22.17 at 10:21 am

Why is Jamie Dimon got such a hate for Bitcoin to have to trash it so much?

https://finance.yahoo.com/news/jamie-dimon-bashes-bitcoin-again-132200710.html

Company files complaint about Dimon’s comments.

https://finance.yahoo.com/news/company-files-market-abuse-claim-104438393.html

#195 Russ on 09.22.17 at 10:21 am

akashic records on 09.21.17 at 9:41 pm

What do they have to show for almost 50% taxation on the general public???

====

So the blame game is pointless and should stop here.

Otherwise we can circle around it for ever, instead of dealing with the real thing:

Where do we go from here to make sure that what you have described does not continue to happen?

===============

Boomer flashback. It’s not different this time.

https://www.youtube.com/watch?v=rGIY5Vyj4YM

#196 Dmitry on 09.22.17 at 10:26 am

#172 Tony

I’ve tried to sell my townhouse in GTA in 2010 by just putting signs in front and on the major roads around.
It was there for couple weeks, but only a single person called and came to look. Only when I hired RE agent viewings started to happen.
It must be something with people’s mentality or laziness just to call realtor and let them look for homes. For some reasons no one here want to look for homes themselves.
I guess the logic is when you’re buying you “do not pay” for realtor service, but it myth, as you pay with the seller, otherwise the commission could be split between the seller and buyer.
That’s exactly what is done when selling/buying via CommFree.
If only CommFree could put more efforts in advertising and convincing people that this is the way to go.
But maybe they’ve been bought by RE board or RE agencies so it’s kept udder the radar purposely.

#197 Eks dee Sipal on 09.22.17 at 10:27 am

#142 Bob Dog

par·a·site

ˈperəˌsīt

noun: parasite; plural noun: parasites

………

5. (modern day) BANKERS and their government puppets who own numbered companies to hide their wealth as trust fund babies and happen to be all related by blood like Aga Khan and T1, T2 even calls him uncleK

#198 Spock on 09.22.17 at 10:27 am

#173 BillyBob on 09.22.17 at 4:09 am

Well put but I doubt SCM will understand the irony. Anyways he has been asked for data to backup his statment

#173 BillyBob on 09.22.17 at 4:09 am
#29 Screwed Canadian Millenial on 09.21.17 at 6:22 pm
#23 Spock

===================================

It amuses me no end that you consider boomers “gimmes” when your entire mantra with wages, confiscation, and redistribution is one giant “GIMME!” I thought Millennials were supposed to have a grasp of irony?

#199 Spock on 09.22.17 at 10:31 am

#124 TnT on 09.21.17 at 10:03 pm

Not sure if you are trying to be funny or did not understand that I was referring to the the boomer contribution from financial support to the charity.

No donations – no money – nothing to volunteer for.

And there are plenty of boomers who are volunteering (same as people of all ages) without needing anything.

High school kids have no choice since they need the credits but hopefully it teaches them some good skills unlike what SCM has learnt over the years.

#124 TnT on 09.21.17 at 10:03 pm
#117 Spock on 09.21.17 at 9:47 pm

(i) Can you compare the $$$ amounts donated to charity in 2015 and 2016 by the Boomers vs the Millenials (and no excuses saying millenials do not have money etc.).

You probably think most of the charities in Canada run on donations by screwed millenials like yourself.

Silly comment…

Charities are run by volunteers – which means time.

Millennials beat boomers when it comes to volunteers.

Millennials are also exploited by having to work for free in many co-ops. Only way to get experience.

Millennials donate 40 hours each during high school alone.

It’s the boomers who get paid running charities.

#200 Keith in Calgary on 09.22.17 at 10:35 am

Any sales rep worth their salt should be personally ashamed if they need to ask a client to sign a BRA. If you cannot control and close your clients, you are weak and useless, and do not deserve to get scraps let alone a coffee (insert your favorite Glengarry Glen Ross skit here). But as the vast overwhelming majority of realtors are disgusting pieces of human trash anyways, what else is new.

As to commissions, when I sold my father’s house in February I had the clauses related to who holds and owns the deposit, the payment of commission, etc, all struck out. The deposit was paid to me and my lawyer held it, and there was no commission payable to anyone at any time, unless the deal actually closed.

The realtor didn’t like it one bit…….heh……said contracts are never done like that, her broker wouldn’t approve………blah…….blah……blah…….what a joke. She signed “my” contract. They’re just property pimps who bring no value to the table whatsoever.

#201 Eks dee Sipal on 09.22.17 at 10:36 am

#166 NEVER GIVE UP

“Anyone who is depressed and gets caught up in this type of delusion should see a doctor and get simple medication to balance brain chemistry.”

That’s 5 billion people on this planet alone. Drugs ain’t the answer, either.

http://www.washingtontimes.com/blog/watercooler/2012/dec/23/84-percent-world-population-has-faith-third-are-ch/

#202 Sue on 09.22.17 at 10:40 am

@145. 45north
Thank you for the link, interesting its been in the courts since 1999. I wonder, in the interest of “fairness”… if the feds want to tax the heck out of ccpc’s , and small business owners run out of money in their personally saved pension, will the feds be providing a guarantee of retirement funds? as they will have totally disrupted their financial plan of pretty much every small business in Canada if these tax changes go through, Doubtful. Such a double standard in this county run by hypocrites
My advice to anyone young. Get a government job or get out of canada, run dont walk!
BNN interview with Stephen Jarislowsky, he said he met with 20 entrepreneurs and told them they were not good entrepreneurs because they set up their business in Canada.
Rant over:)

#203 HaHaHa on 09.22.17 at 10:48 am

#55 leebow—– BINGO… At least you are getting it. The finance minister is a blood sucking parasite in it for himself. The same guy who introduced a bill to change the 1985 pension act. While most people get distracted by the half wit prime minister or crazy trump this blood sucking leech is setting up for his heirs. At your expense! Smoke and mirrors. Millenials vs Boomers, haves vs have-nots. By the time these Liberals are done their family fortunes will be mind boggling. Wake up

#204 2 Cents Canadian on 09.22.17 at 11:00 am

#191 @dotard
I 100% agree. David Suzuki and some of the worlds most well regarded social scientists were asked to give their best guess as to how long man kind has on this planet. They gave us 50/50 to last another 100 years. And this was BRFORE Trump came along. Anyone who hasn’t noticed an increase in human “tensions” the last few years both local, national and global has their head up their arse. Trump isn’t just bad for USA … he’s bad for man kind …. and every living thing on the planet. For the first time ever even the cock roaches are scared! Uuuge ego’s and small brains are a dangerous combination. Especially when they have access to the big red button.

#205 DON on 09.22.17 at 11:01 am

#189 For those about to flop… on 09.22.17 at 9:59 am

A lot of people seem to think because the media hasn’t reported much yet that the game is in the same period.

*********************

The media has been reluctant to report what is going on as they count heavily on the real estate ad money to keep their version of the national enquirer up an running. Lately the media has been forced to report trouble…couple more months of this and it will be impossible for anyone to get out from under the market collapse.

Keep on keeping on Flop…appreciate the perspective and hard work. Take care of that injury!

#206 n1tro on 09.22.17 at 11:08 am

#177 Oft deleted much maligned stock picker on 09.22.17 at 7:43 am

Forget the TSX as an index….pick the right stocks. Since this is not a bullboard and Garth isn’t a promoter I choose not to disclose individual names currently speculated…..but my little pony trades on the TSX…..in brilliant colour for all to see.
——————————–
Found it. Thanks.

#207 Ian on 09.22.17 at 11:09 am

Was just enjoying this 30 degree weather on the Starbucks patio at Church / Adelaide downtown here.

NW corner has a Sotheby’s International Realty office.

I noticed a distinct increase in the number of listings they hang up in their window!

I’m adding this to my “Ian’s anecdotal indicators” file.

#208 DON on 09.22.17 at 11:14 am

@SCM

I love your spunk and attack dog energy. You remind me of my younger self. But better to get your point across if you try to influence people rather than beat them down. Making generalizations about Boomers or any age group is simply off base and Poor Form. I don’t choose who I like or interact based on age, that would be limiting. Yes I understand your frustration but Boomer’s had their own troubles to deal with growing up (Dads came home from WW2 – messed up, etc).

No need to rip into people…unless you want the same treatment back. If so you are in the right place for this. Try being a guide dog rather than a pitbull.

Get back on topic…or I might start to believe you have been sent here by TREB to muddy the waters. Back to finance and real estate.

#209 n1tro on 09.22.17 at 11:23 am

#192 IHCTD9 on 09.22.17 at 10:08 am

SCM and her crew are going to forget all about the boomers when they realize it was actually Gen X who had the easy road, and that it was paved with the blood and sweat of poor Liberal voting Millennials.
——————————————-
Damn you for revealing our secret!!

#210 Rebs on 09.22.17 at 11:37 am

You should always carefully read every agreement someone puts before you; and if you don’t understand it, ask for help.

**This goes for everything, except the iphone/google/cell phone agreements where it’s pretty much impossible to read before accepting. In that case, we have to just hope that consumer law protects us.

#211 AGuyInVancouver on 09.22.17 at 11:39 am

DELETED

#212 simple medication on 09.22.17 at 11:41 am

#166 NEVER GIVE UP

Anyone who is depressed and gets caught up in this type of delusion should see a doctor and get simple medication to balance brain chemistry.

—-

The belief that there is a “simple medication to balance brain chemistry”, administered by doctors is like a form of religion.

#213 Braj on 09.22.17 at 11:49 am

#43 Money Miser @ Money-Miser.com on 09.21.17 at 6:50 pm
I’m not going to have a real opinion, I’m just going to write the most neutral comments I can so I can appeal to the highest number of people. I’m going to remain anonymous because I’m a financial loser living in the basement of my mommys house but I don’t want you to know that because I want to be a blogger. I’m going to say ridiculous things like you can retire at 40. Just as long as your favourite meal is cat food and you enjoy dumpster diving in your spare time.

You are a big ol’ lame-o.

#214 Pre-retiree on 09.22.17 at 12:05 pm

There is a similar clause in the Selling agreement when you put your house for sale with an agent.
If the deal tanks because of the seller’s negligence, the
seller still needs to pay the agent’s fee.
Seller beware!

#215 BOB, Bob, Bawb on 09.22.17 at 12:11 pm

#123 Bob Loblaw on 09.21.17 at 10:01 pm

::::::::::::

Slow clap for Bob everyone, he’s a case study in why us less Ass-holey folks have BRAs shoved down our throats. Way2GoBob

Bob buddy, have you paused to think how this little ditty makes YOU look? I’m guessing you’ve been telling this tale for years, you may want to stop or at least edit the story….jeeze louise. Hopefully you didn’t post your real name here! yikes.

Bob’s cast of characters:

FIRST REALTOR’s inside voice “bob looks like a greasy (NLFD slang) slimeball (AB slang) I better make him sign a BRA he might screw me. {original realtor was not wrong, now was he}

GOOD FRIEND REALTOR’s inside voice “why didn’t Bob come to me in the first place, I thought we were ‘good friends’, he probably wanted to screw me out of a commission” {yep}

BOB’s WIFE’s inside voice “gee whiz Bob is screwing over everyone, I wonder if he’d screw me over too…..” {yes! Bonnie he prolly would….smell the coffee?}

I’m a parent and if one of my kids behaved like our friend Bob here I would wonder where I went wrong!

nope, I’m NOT a realtor (dirty shysters, cite; Happy Housing), not a millennial, not a SJW, not a Boomer and Apologies Bob I should not be judging you (admittedly though, I am judging)….it’s sneaky punks like this that make the world a wee bit darker and send my blood pressure north of 60 forcing me to sign up for Tai Chi on Mondays so I can chill the eff out *sigh*

#216 paulo on 09.22.17 at 12:25 pm

It is unfortunate that in Ontario a person whom purchases a vacuum cleaner from a door to door salesman/woman has more rites and protection including a cooling off period (consumer protection act Ontario )
Than a person committing to the largest purchase most people make in there lives !

Anybody see a problem with this situation?

For M&A i suspect you where rushed into signing the BRA.
when this gets before the judge and you can reasonably show that “vince” failed to explain the gravity and obligation that you where agreeing to in the BRA in addition to failing to advise you to SEEK LEGAL ADVICE prior to signing in addition to insisting the form was required to make a “TIMELY” offer thereby not permitting time to SEEK LEGAL ADVICE, You got a fairly good shot! don’t forget to make “Vince and his Broker”
enjoined litigants in the action. good luck!

#217 Say Goodbye To Your Sales Job on 09.22.17 at 12:29 pm

In the future, probably not too far future, realtors will be replaced by Apps.
Realtor is a middle party/step that adds no value to the transaction. It’s info being moved from one party to another.
People make legal binding contracts whenever they use a credit card. Often done with a credit card app. So acceptance with such transactions is already here.

#218 fiduciary duty vs tweets on 09.22.17 at 12:56 pm

#194 n1tro on 09.22.17 at 10:21 am

Why is Jamie Dimon got such a hate for Bitcoin to have to trash it so much?

https://finance.yahoo.com/news/jamie-dimon-bashes-bitcoin-again-132200710.html

Company files complaint about Dimon’s comments.

https://finance.yahoo.com/news/company-files-market-abuse-claim-104438393.html

=====

It’s no surprise that Jamie Dimon is not fond of something that is seen as a potential disruption of the banking industry.

His tweet talk – certainly not checked by legals – that exposes him and JPMorgan and the shareholders is what’s truly surprising.

The “complaint” is actually a legal step against JPMorgan and Dimon:

“The firm filed the report with the Swedish Financial Supervisory Authority against JPMorgan Chase and Dimon, the company’s chief executive. Blockswater said Dimon violated Article 12 of the European Union’s Market Abuse Regulation (MAR) by declaring that cryptocurrency bitcoin was “a fraud”.

http://www.zerohedge.com/news/2017-09-21/jamie-dimon-faces-market-abuse-claim-over-false-misleading-bitcoin-comments

Jamie Dimon may find himself in a legally uncomfortable situation, since JPMorgan Securities continues to allow clients to trade this ‘fraudulent’ security through its platform…

http://www.zerohedge.com/news/2017-09-22/bitcoin-slides-after-dimon-doubles-down-cryptocurrency-concerns-it-will-end-badly

“As we asked rhetorically previously, does the bank not have a fiduciary duty not to transact on clients’ behalf in a security it defines as fraud?”

With Jamie Dimon, the unexpected patient zero, the tweet disease now officially jumped from the political sphere to the financial world, where fiduciary duties might make it more deadly for the infected.

#219 VE on 09.22.17 at 1:02 pm

#110 T
All realtors think their hours are worth $1,000 per hour. LOL.

#220 VE on 09.22.17 at 1:04 pm

#217 Say Goodbye To Your Sales Job

Agreed 100%. Realtors are useless bunch. We don’t even need a lawyer. Just a paralegal who knows about the process is good enough.

#221 Lorne on 09.22.17 at 1:21 pm

Do you use a middle person to help you sell your car?

#222 Promissory Note on 09.22.17 at 1:23 pm

Hey blog dogs, any mortgage experts in the house?

ING (now Tangerine) saddled me with a collateral charge mortgage.

I understand I am no longer free to switch lender.
Are there other dangers w this?

Googling led me to believe that Collateral Charge means there is a Promissory Note involved?
What the heck is that, and is that bad?

Thanks a lot!

#223 Oft deleted much maligned stock picker on 09.22.17 at 1:24 pm

#206….Nitro….see……it’s just a matter of paying attention.

#224 AGuyInVancouver on 09.22.17 at 1:31 pm

Deleted when it doesn’t fit the narrative eh?

Deleted when you are racist, which is most of the time. — Garth

#225 Rational Optimist on 09.22.17 at 1:33 pm

110 T on 09.21.17 at 9:28 pm

‘Here’s something we can all agree is a funny quote from their agent:

“In a statement to CTV News, Tarasca explained that many hours and days were devoted to the family and that agents involved did their jobs correctly, “with integrity and honesty.””

Many hours and days were devoted… so Tarasca (the agent) is entitled to $37,000. Agents are a funny bunch.’

Yes, for sure that’s hilarious. But worse for me is the quote from the buyer: “We didn’t end up in the house, we lost a large deposit. So how do you go about thinking you are allowed your commission? The deal never went through.”

Normally I’m pretty sympathetic to people who are quoted to look like morons in newspaper articles. In this case, though, the buyers reached out to the media to get themselves portrayed as sympathetic victims.

“The deal never went through” because she and her husband failed to close, and for no other reason. If they thought all they would lose is a large deposit, they didn’t seek the proper advice. Are we going to read another article with them whining when the sellers sue them for a quarter of a million dollars after it finally sells in November? “How do you go about thinking you are allowed the full purchase price we contracted for? The deal never went through.”

The tale in the blog post was instructive. Everyone should read these Buyers Representation Agreements (along with other agreements…) carefully. That CTV article, unsurprisingly, was just a bunch of whining from supposed adults who didn’t act prudently and now think others should have to pay the costs of that.

#226 protea on 09.22.17 at 1:33 pm

Staying on the subject of Trudeau and Morneau on their proposed attack on the middle class and small business.rather than focus on foreign money laundering it questions the competence of the Federal Liberals. In Vancouver the local MP’s like Fry,Beech and Sidhu have remained very quiet or have no influence within their party.
The two people who inherited their wealth Trudeau and Bill Morneau who are telling people who built their businesses from nothing that they are tax cheats !!because they use a tax provision the way it was intended to be used.What a bunch of hypocrites.

#227 n1tro on 09.22.17 at 2:07 pm

#223 Oft deleted much maligned stock picker on 09.22.17 at 1:24 pm
#206….Nitro….see……it’s just a matter of paying attention.
———————————–
I don’t usually trade CAD stocks as esignal doesnt always have the price history since I rely more on technicals than fundamentals.
Care to shed some light on how you read the “entrails” of these types of stocks? Email me @hotmail.com as to not hijack Garth’s blog. Refreshing to meet someone with similar hobbies.

#228 Trudeau's tax return on 09.22.17 at 2:11 pm

#226 protea on 09.22.17 at 1:33 pm

Staying on the subject of and Morneau

—-

Where is Trudeau’s tax return?

#229 rainclouds on 09.22.17 at 2:18 pm

#226 protea “In Vancouver the local MP’s like Fry,Beech and Sidhu have remained very quiet or have no influence within their party.”
—————————————————————-
Agreed, shortly after the election I sent an email off to my MP, the lovely Dr Fry (who has been in the house since the Klu Klux Klan were INCINERATING front yards in BC:-), I was inquiring “what the plan was for housing in Vansterdam”? (with helpful suggestions gleaned from THE BLOG) .

Waited 2 weeks. Nada.

Forwarded it to Minister Morneau and the Prime Minister. 2 days later Madame KKK’s minions deigned to respond in the condescending way you would imagine a 7 term politician might.

Methinks my MP is relegated to the geriatric section of the caucus and there is little love from the kid….

#230 Ace Goodheart on 09.22.17 at 2:23 pm

Realtors are about to get shellacked. They don’t know what’s coming. The vision now is of a bunch of people who provide little to no good to anyone, drive around in fancy cars and make boat loads of money for doing essentially nothing. And it’s all held together by a secretive society that resists any attempt openness or transparency of its practices.

The same thing that happened to securities sellers after stock market crashes is about to happen to the real estate industry. They are going to regulate the crap out of it and make it so transparent you will be able to see through everything it does from a mile away.

The real estate industry is not user-friendly in its current form and actually is a danger to those who are using it as a service. It is also the only service provider in its class, having a complete monopoly on the provision of sales of residential properties in Ontario.

Yes people need to know that the contracts and agreements of purchase and sale that they make you sign, are not “standard” forms, and not even necessary or prescribed by any law.

In other news, Trumpster has decided to cancel all American’s health insurance by 2027.

What is it with Americans and health insurance? Why do they dislike it so much?

#231 I'm stupid on 09.22.17 at 2:40 pm

To add to my previous post at 174

Brick and mortar stores are dying because of online platforms. The only reason places like Amazon work is because consumers test and look at things in the stores then go home and buy online. I’m guilty of it myself especially with high end goods. What we have now are shopping malls full of trolls window shopping then buying online for less. The brick and mortar stores do all the work while the online platforms make all the money. Until everyone realizes this truth things won’t improve.

#232 WUL on 09.22.17 at 2:56 pm

Staggering. The casino regulator in BC notes:

“…GPEB “compiled a document which identified approximately $13.5 million in $20 bills being accepted in River Rock in July 2015.”

One casino. I wonder how much of that was simply cashed out and carried out. Clean as a whistle.

#233 jess on 09.22.17 at 3:37 pm

#51 Trojan House on 09.21.17 at 7:07 pm

in other words a “dotard”

====
online platforms = regulatory /tax arbitrage ?

uber question
spend 2b./yr over yr how do they come up with a valuation of 70b.???
uber loses london license -” fit for purpose”

=
How much “fake” stuff was put into Edgar?

#234 McLovin on 09.22.17 at 3:37 pm

BRAs shouldn’t be able to legally exist as they are completely one-sided and add nothing of benefit to the ‘client’. I was advising my elderly mother (at her request) at one point about selling her house and told her whatever you do, DON’T sign a BRA. I also told her agent that I had advised her as such, and that we wanted to pay 5% commission, not the 6% he was asking. As soon as I wasn’t there, he got her to sign a BRA and a listing at 6%. Total slimebucket. I told him he was fired, but my elderly mother (dealing with my father’s death) almost had a nervous breakdown upon hearing I was ‘fighting’ with the agent. Jeezus. What a profession.

#235 Gulf Breeze on 09.22.17 at 3:42 pm

Millenials are being taken advantage of in so called ‘mentoring’ or apprenticing programs that don’t pay and are SUPPOSED to lead to employment but rarely do. They end up volunteering and it’s often for privately held companies, not charities.

I don’t recall us boomers being subjected to this.
I also don’t recall boomers having to live with their parents due to low wages.

Funny, I DO recall the UIC ski team at Whistler; young boomers who would work six or seven months, then quit and go on unemployment insurance and ski all winter.

This was very common. Half the people I know and probably some of the boomers on this blog, worked part of the year, quit and lived off UIC the rest of the year.

The govt eventually stepped in and altered the rules of that game to cut down on the abuse. I wonder how many doctors and small business boomer types lived like this when they were young?

Never ever believe the mythology that ANY boomers had it that bad. We didn’t

#236 Smoking Man on 09.22.17 at 3:43 pm

#151 OttawaMike on 09.21.17 at 11:40 pm
Smoking Man on 09.21.17 at 10:42 pm

I do have an indexed govt pension. Don’t worry Smokie, the guys who are 40 and in govt. won’t see their’s. The system cannot sustain these deals.

As much as I dislike new taxes, the CCPC changes are all overblown. It’s more about the optics than the reality. The libs have done a shite job of selling it to the business owners as well.
………

It’s globalist manifesto. Take farms from family and give it to big corps.

Tax portfolios in a business 73%

Kill Income Splitting right after they raise the marginal rate.

T2 saying all small business are rich complete bull shit. If this goes through the way it is, going to see massive tax evasion. People are that pissed off.
…….

On the plus side, my office productivity business will be in much higher demand as the business will go out of their way to eliminate jobs after 15 dollar min wage kicks in.

#237 jess on 09.22.17 at 3:48 pm

…”disruption of the banking industry.”

Remember MERS

Origins of MERS

MERS is a confidential electronic registry that banks helped create in 1997 in order to keep track of mortgage paperwork. As we noted in our primer on the foreclosure scandal players, MERS saved the banks time and money by providing a private, electronic alternative to the public system used by local government recorders. By using the MERS registry, they largely avoided the recording fees.

“Fewer than 30 percent of the mortgages had an accurate record in MERS,” Mr. White says. “I kind of assumed that MERS at least kept an accurate list of current ownership. They don’t. MERS is going to make solving the foreclosure problem vastly more expensive.”

https://www.propublica.org/article/backgrounder-a-closer-look-at-mers-the-industrys-controversial-mortgage-cle

#238 Yuus bin Haad on 09.22.17 at 3:54 pm

How about a nice Customer Service Agreement – that really gets their goat!

#239 Stan Broock on 09.22.17 at 4:45 pm

Listen to this man. Then pack and leave.

https://ca.finance.yahoo.com/news/morneau-draws-criticism-business-concerns-171309423.html

#240 Stan Broock on 09.22.17 at 4:51 pm

There is ONE (1) startup company in the list of top 214 startups.

https://www.cbinsights.com/research-unicorn-companies

worth ONE (1) billion out of 744.

The country of the wild bill and trudope ‘súperclusters’

they should be called ‘cluster f..ks’ instead.

#241 45north on 09.22.17 at 5:09 pm

Sue: I wonder, in the interest of “fairness”… if the feds want to tax the heck out of ccpc’s , and small business owners run out of money in their personally saved pension, will the feds be providing a guarantee of retirement funds? as they will have totally disrupted their financial plan of pretty much every small business in Canada if these tax changes go through, Doubtful.

Now you see it now you don’t. What I mean is that as criticism of the proposed tax changes mounts then the proposed tax changes shrink. Even disappear.

John Ivison: But, as will become clear when the government releases its refined proposal later this fall, very few individuals in these categories will be affected.

http://nationalpost.com/opinion/john-ivison-with-proposed-liberal-reforms-impacting-less-than-one-in-10-small-businesses-this-tax-revolt-will-fail

whatever

fact is the Finance Minister has made major speeches where he trumpets the cause of “hard working Canadians who deserve tax fairness”. As the poster “Lead Paint” points out it’s not specific changes to the tax code but the “rhetoric and positioning” of Prime Minister Justin Trudeau and the Minister of Finance Bill Morneau. The speeches count. Damage has been done.

#242 @ Stan Broock on 09.22.17 at 5:09 pm

@ Stan Broock #240

Having only “1” unicorn company in Canada has absolutely nothing to do with Trudeau. He hasn’t even implement these tax changes, so your logic seems a bit cloudy.

Btw, you money must be really short if tax changes like these have you questioning your survival lol You might want to draft up another business plan that is a bit more robust than whatever it is you are doing now to make your money. Just a thought, eh?

#243 @ Stan Broock on 09.22.17 at 5:11 pm

@ Stan Broock

Btw, I didn’t mean ‘short’ as in ‘short stature’. I meant ‘short’ as in ‘short of money’.

#244 Mark on 09.22.17 at 5:29 pm

“There is ONE (1) startup company in the list of top 214 startups.”

What about junior mining companies? They’re ‘startups’ too, except that they’re not in the research or ICT space. Well in a way they are in the research space, ie: they’re researching a particular piece of land for its mineral content. Is that really any less of a ‘startup’ than one that is doing mobile phone apps, for instance?

Canada does some things well. Mining is one of them. We don’t do other things well, such as IT. Its not the end of the world. The bigger concern in Canada is that many major businesses really don’t invest extensively enough in internal IT and R&D relating to their own businesses.

#245 Farquad on 09.22.17 at 5:56 pm

Real estate woes.
Shrek: (looks at Farquaad’s very large castle) Gee, you think he’s compensating for something?

#246 EB on 09.22.17 at 6:13 pm

#191 @ dotard on 09.22.17 at 10:01 am –

We certainly don’t live in a dictatorship, but these things exist in degrees as well. There are plenty of thoughtcrimes which are now serious enough to get you fired if they are discovered. Anyone who hasn’t fully drained the Kool Aid at this point is well aware of the limits of dialog and where one must simply nod and agree. Or else.

#247 maxx on 09.22.17 at 6:21 pm

#79 Drill Baby Drill on 09.21.17 at 8:34 pm

“Instead of signing a BRA how about a Mansier?”

https://www.youtube.com/watch?v=AS8nXc3X-6k

Excellent!

#248 Asterix1 on 09.22.17 at 10:04 pm

https://www.zolo.ca/toronto-real-estate/trends

Prices up according to Zolo in Toronto (average +5% and median +5.86%)

Is this the start of a dead cat bounce?
or
People did not get the memo yet that interest rates are up+B20+credit crunch+debt
or
Not accurate stats (thought prices were falling in September)

#249 Denise MacDonell on 09.25.17 at 9:12 am

Mr. Turner – Since January 1, 2017, the Nova Scotia Real Estate Commission (the Regulator of the industry here in NS, not our professional association) has made buyer contracts mandatory. We are not permitted to assist a buyer without one. I had not used them before, as I figured if people wanted to work with me they would, and if they didn’t, they’d go elsewhere. I still feel that way. I tell my folks that if they aren’t happy, let me know and I’ll try to make them happy. If I can’t, we’ll terminate the buyer’s contract.

I have also been in the situation where I have worked with a buyer for months, found an appropriate property, then the buyer goes silent. I later found out that the buyer and seller of the property I found waited for the seller’s listing agreement to expire so they could transact privately. They cut out the agent that had listed the home (who spent months trying to sell it) and I (who spent months trying to find my folks a home). Our buyer contract spells out buyers’ and agents’ obligations to each other.

Regarding the couple who refused to close – They signed a contract with the sellers. Their refusal to close puts them in breach of that contract, which is unethical and puts the sellers in peril (perhaps they already bought another house). Even if they did not have a buyer’s contract, most Agreements of Purchase and Sale clearly state the liability should you fail to complete the transaction.