4 1

416-931-4161James Metcalfe BROKER

www.OurHomeToronto.com | Service@OurHomeToronto.com

REAL ESTATE UPDATE

Royal LePage Real Estate Services Ltd.Johnston & Daniel Division, Brokerage

477 Mount Pleasant Rd., Toronto, ON M4S 2L9

The average price of a resale home in the GTA in July was $476,947 - which was up by a respectable 4% versus the July 2011 average price of $458,646. It is interesting to note that the MLS® Home Price Index (MLS® HPI), which provides an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 7.1% on a year-over-year basis. The variance between these two price growth rates is accounted for the fact that the mix of homes sold in July 2012 versus July 2011 was substantively different. As a result, the MLS® HPI likely offers a more accurate reading on actual price growth for this particular period. However, price growth has defi nitely moderated versus recent months due to a much better supplied market.

From a volume perspective, the month of July produced a 1% decline in sales (7,570 transactions versus 7,683 in July 2011). The sales decline was led by the condo apartment segment (-10%) while, at the opposite end of the spectrum, the townhome segment posted a very robust volume increase of 15%. The very strong annual sales growth in the fi rst half of 2012 and an earlier peak in sales this spring compared to 2011 help explain more moderate sales this summer. The new more stringent CMHC mortgage lending guidelines (which became effective on July 9th) and the continued weight of the additional upfront cost of the City of Toronto land transfer tax have also likely prompted some households to put their buying decisions on hold.

GTA RESALE HOME SALES8 9 10 11 12

GTA Resale Home Sales

MARJAN MAY SEP NOVJUL

3,000

1,500

4,500

6,000

7,500

9,000

10,500

12,0002011

2012

8 9 10 11 12

GTA Resale Home Sales

GTA AVERAGE RESALE PRICE

MARJAN MAY SEP NOVJUL$400,000

$540,000

$420,000

$440,000

$460,000

$480,000

$500,000

$520,00020122011

AUGUST 2012

Home renovations undertaken by Ontario’s 3.2 million homeowners produced over $20.3 billion in economic activity last year. Unfortunately, a large amount of home renovation work in this province is conducted via the “cash deal” or through the underground economy. Unlicensed workers hurt the reputations and competitiveness of legitimate renovation contractors and cheat governments out of billions of dollars. The Ontario Home Builders’ Association estimates that the underground home renovation economy causes the loss of up to $298 million in HST revenue annually, $1.6 billion in income tax revenue annually and $767 million in other revenues like CPP, WSIB, Employer Health Tax and Employment Insurance Premiums.

In addition, the underground home renovation industry poses a number of serious risks to homeowners. Underground contractors often do not meet health and safety standards, carry no liability insurance and do not offer warranties. Moreover, homeowners have little to no recourse in the event of shoddy or unsafe workmanship. If a worker falls on your property, you, as the property owner, may be held liable. Realtors and

homebuilders believe that the best way to mitigate the growth of the underground home renovation economy is to give home owners a fi nancial incentive to use professional contractors. Professional contractors have HST numbers, maintain insurance and pay taxes.

Specifi cally, Realtors are urging all provincial politicians to support the creation of a permanent Ontario Home Renovation Tax Rebate. If the provincial government were to institute a renovation rebate, payable to the homeowner, homeowners would be far more likely to insist on a receipt creating a paper trail that would deter underground economic activity. The payment to the homeowner provides the incentive for written contracts which is good for everybody, particularly governments losing billions of dollars in tax revenue to the underground economy and at the same time it can go a long way to stimulating the provincial economy.

As usual, your client referrals are both highly valued and much appreciated. Until next time, take care!

“A government that robs Peter to pay Paul can always depend upon the support of Paul.” –George Bernard Shaw

“A sure cure for seasickness is to sit under a tree.” – Spike Milligan

“A vegetarian is a person who won’t eat anything that can have children.” – David Brenner

“Happiness is having a large, loving, caring, close-knit family in another city.” – George Burns

Moulds are forms of fungus (mildew, yeast and mushrooms are other forms of fungus) that grow indoors and outdoors. People are exposed to mould spores (i.e. airborne “seeds”) daily in the air they breathe; however, sometimes moulds grow excessively in certain areas called “amplification sites” (see below for further information) and can cause different types of illnesses. Some moulds are more hazardous than other moulds and different people have different responses to mould exposure. In particular, those with allergies, existing respiratory conditions or suppressed immune systems are especially susceptible to health problems from mould exposure. Additionally, infants and children, pregnant women and the elderly can be sensitive to the effects of mould exposure. Some people that are exposed to mould experience allergic reactions, with symptoms similar to hay fever and the common cold but that last for longer periods, while others can experience aggravation to asthma. Researchers have identified that some fungi in indoor environments can induce allergic and irritant response, infectious disease, respiratory problems, hypersensitivity reactions and organ toxicity. In addition, some moulds produce chemicals called mycotoxins, which can cause flu-like symptoms. It should be noted that the causes and effects of mould exposure on people are not very well understood. In some cases, health problems that are attributable to mould are temporary and can be controlled by limiting exposure to moulds.

What factors affect mould growth?

Several factors affect mould growth, including:• Nutrient availability - nutrients absorb moisture to maintain

a favourable environment for mould growth, and include many surfaces such as soil, dirt, wood, cellulose (paper, ceiling tile, jute carpet backing, cork, pipe wrap), some forms of insulation, fabric, oil, etc.

• Moisture content - the amount of moisture in a material influences how an organism can support growth. Moisture sources include condensation in humid rooms, on windows, walls, unheated closets, dampness under carpets and on shower curtains, and periodic wet sections in duct work of air conditioned ventilation.

• Temperature - Temperature is also a factor that affects mould growth; moulds typically require temperatures between 5°C and 38ºC to grow.

What is an “amplification site”?

As mentioned above, buildings are not sterile; the presence of mould spores is very common in most buildings. It is interesting to note that the mere presence of mould spores in a building is not a concern; the concern arises when mould areas have grown in a building. When areas in a building have suitable nutrient and moisture content that fosters mould growth, the area is called an amplification site.

Can mould be easily identified in homes by a visual inspection?

No. Past studies have indicated that up to 90% of mould growth is not visible at the surface. Certain school boards have found a very poor correlation between the results of visual (surface) inspections and subsequent invasive inspections in portables in Ontario. Certain guidelines state that invasive inspection is necessary to make a complete assessment of the extent of mould contamination in a building.

HELPFUL TIP

Moisture is one of the key factors that affect mould growth. There is very little time after a flood to prevent development of an amplification site. Buildings are not sterile and pre-existing mould spores will begin to develop rapidly with the proper nutrient, moisture and temperature combinations. It is considered good practice to remove water very quickly (within 24 to 48 hours) after flooding. Surface moisture should be reduced to below 70% relative humidity as soon as possible to reduce the potential for mould growth.

WHAT YOU NEED TO KNOW ABOUT MOULD

3

Basement apartments also play an important role in meeting demand for housing throughout the Greater Toronto Area and if you have ever listed a property with one, you may be familiar with the “Seller does not warrant retrofi t” clause. Second suites can cause confusion for homebuyers and REALTORS® alike, but this doesn’t have to be the case.

According to noted home inspectors Carson Dunlop, achieving a “legal” basement apartment involves fi ve areas of consideration: bylaw permissibility; compliance with the building, fi re, and electrical safety codes; and registration. In short, if a listing indicates that a property has a retrofi t basement apartment, it must meet municipal bylaw requirements, have a Certifi cate of Compliance to verify that it has passed fi re and electrical inspections, and be registered with Municipal Property Standards. Additionally, if it is newly constructed, it must meet Building Code requirements.

Identifying whether a municipality’s bylaws permit basement apartments and if any special conditions apply is the fi rst step in the process. Since 1995, municipalities have had the authority to enforce their bylaws with respect to basement apartments; however, units that existed prior to November 1995 are exempt from meeting local bylaw requirements.

The Building and Fire Codes are related in that the Fire Code is a subset of the Building Code. There is, however, an important distinction between them. The Building Code, which prescribes minimum requirements for the construction of buildings, for the most part applies only to the day the house was built, not retroactively. The Fire Code, which prescribes construction and safety issues related to how a building is required to perform should it catch fi re, does apply retroactively. In 1994, the provincial government set new Fire Code rules with which all basement apartments, new and existing, must comply. A unit upgraded to comply with the Fire Code is called a “basement retrofi t”. The fi re department must inspect all basement apartments and when any defi ciencies have been corrected, as is required, it will issue a certifi cate to verify compliance.

The Fire Code involves four key areas of compliance: fi re containment, means of egress, fi re detection and alarms, and electrical safety.

Fire containment refers to a building’s ability to contain a fi re in the unit where it started. Walls, fl oors, ceilings and doors are rated based on how long they will survive a direct fi re before burning through. The typical requirement is a rating that affords a 30-minute separation between the units. Drywall and plaster ceilings for example are acceptable, but they must be continuous so that joists are not exposed in any room. By contrast, suspended ceilings are not acceptable. 

Means of egress refers to the occupants’ ability to exit the house. Ideally, units should have their own exits. Units that share a common exit are allowed if the common exit is ‘fi re separated’ from both of the units with a 30-minute rating. If it not rated as such, it can still be used provided that there is a second exit from each unit and the fi re alarms are interconnected. To be considered an acceptable second exit, a window must have an opening of at least 600 square inches, with the smallest dimension being 18 inches; the windowsill must be within three feet of grade; and basement window wells must extend three feet out from the house wall, to allow room to crawl out.

The fi re detection area of compliance requires that all units have smoke alarms. Smoke alarms do not have to be interconnected unless the fi re separation to the common exit area does not have a 30-minute rating. Some municipalities may also require carbon monoxide detectors.

Electrical safety refers to the required inspection by the Electrical Safety Authority. As with the fi re department’s inspection, defi ciencies that the Electrical Safety Authority identifi es must be addressed. In general, an apartment’s minimum ceiling height must be 6 feet 5 inches; its entrance door must be at least 32 inches by 78 inches; bathrooms require either a window or an exhaust fan; and if there is a parking spot for one of the units, there must also be a parking spot for the other unit.

Once bylaw and code requirements have been met and certifi ed, homeowners can register the basement apartment with Municipal Property Standards.

Bear in mind that if you are planning to construct a basement apartment, you must also apply for a building permit and comply with today’s Building Code.

This article was sourced from the Toronto Real Estate Board.

BASEMENT APARTMENT LEGALITIES

2 This article was contributed by AmeriSpec Canada, a leading home inspection company. Please visit them online at www.en.amerispec.ca.

Moulds are forms of fungus (mildew, yeast and mushrooms are other forms of fungus) that grow indoors and outdoors. People are exposed to mould spores (i.e. airborne “seeds”) daily in the air they breathe; however, sometimes moulds grow excessively in certain areas called “amplification sites” (see below for further information) and can cause different types of illnesses. Some moulds are more hazardous than other moulds and different people have different responses to mould exposure. In particular, those with allergies, existing respiratory conditions or suppressed immune systems are especially susceptible to health problems from mould exposure. Additionally, infants and children, pregnant women and the elderly can be sensitive to the effects of mould exposure. Some people that are exposed to mould experience allergic reactions, with symptoms similar to hay fever and the common cold but that last for longer periods, while others can experience aggravation to asthma. Researchers have identified that some fungi in indoor environments can induce allergic and irritant response, infectious disease, respiratory problems, hypersensitivity reactions and organ toxicity. In addition, some moulds produce chemicals called mycotoxins, which can cause flu-like symptoms. It should be noted that the causes and effects of mould exposure on people are not very well understood. In some cases, health problems that are attributable to mould are temporary and can be controlled by limiting exposure to moulds.

What factors affect mould growth?

Several factors affect mould growth, including:• Nutrient availability - nutrients absorb moisture to maintain

a favourable environment for mould growth, and include many surfaces such as soil, dirt, wood, cellulose (paper, ceiling tile, jute carpet backing, cork, pipe wrap), some forms of insulation, fabric, oil, etc.

• Moisture content - the amount of moisture in a material influences how an organism can support growth. Moisture sources include condensation in humid rooms, on windows, walls, unheated closets, dampness under carpets and on shower curtains, and periodic wet sections in duct work of air conditioned ventilation.

• Temperature - Temperature is also a factor that affects mould growth; moulds typically require temperatures between 5°C and 38ºC to grow.

What is an “amplification site”?

As mentioned above, buildings are not sterile; the presence of mould spores is very common in most buildings. It is interesting to note that the mere presence of mould spores in a building is not a concern; the concern arises when mould areas have grown in a building. When areas in a building have suitable nutrient and moisture content that fosters mould growth, the area is called an amplification site.

Can mould be easily identified in homes by a visual inspection?

No. Past studies have indicated that up to 90% of mould growth is not visible at the surface. Certain school boards have found a very poor correlation between the results of visual (surface) inspections and subsequent invasive inspections in portables in Ontario. Certain guidelines state that invasive inspection is necessary to make a complete assessment of the extent of mould contamination in a building.

HELPFUL TIP

Moisture is one of the key factors that affect mould growth. There is very little time after a flood to prevent development of an amplification site. Buildings are not sterile and pre-existing mould spores will begin to develop rapidly with the proper nutrient, moisture and temperature combinations. It is considered good practice to remove water very quickly (within 24 to 48 hours) after flooding. Surface moisture should be reduced to below 70% relative humidity as soon as possible to reduce the potential for mould growth.

WHAT YOU NEED TO KNOW ABOUT MOULD

3

Basement apartments also play an important role in meeting demand for housing throughout the Greater Toronto Area and if you have ever listed a property with one, you may be familiar with the “Seller does not warrant retrofi t” clause. Second suites can cause confusion for homebuyers and REALTORS® alike, but this doesn’t have to be the case.

According to noted home inspectors Carson Dunlop, achieving a “legal” basement apartment involves fi ve areas of consideration: bylaw permissibility; compliance with the building, fi re, and electrical safety codes; and registration. In short, if a listing indicates that a property has a retrofi t basement apartment, it must meet municipal bylaw requirements, have a Certifi cate of Compliance to verify that it has passed fi re and electrical inspections, and be registered with Municipal Property Standards. Additionally, if it is newly constructed, it must meet Building Code requirements.

Identifying whether a municipality’s bylaws permit basement apartments and if any special conditions apply is the fi rst step in the process. Since 1995, municipalities have had the authority to enforce their bylaws with respect to basement apartments; however, units that existed prior to November 1995 are exempt from meeting local bylaw requirements.

The Building and Fire Codes are related in that the Fire Code is a subset of the Building Code. There is, however, an important distinction between them. The Building Code, which prescribes minimum requirements for the construction of buildings, for the most part applies only to the day the house was built, not retroactively. The Fire Code, which prescribes construction and safety issues related to how a building is required to perform should it catch fi re, does apply retroactively. In 1994, the provincial government set new Fire Code rules with which all basement apartments, new and existing, must comply. A unit upgraded to comply with the Fire Code is called a “basement retrofi t”. The fi re department must inspect all basement apartments and when any defi ciencies have been corrected, as is required, it will issue a certifi cate to verify compliance.

The Fire Code involves four key areas of compliance: fi re containment, means of egress, fi re detection and alarms, and electrical safety.

Fire containment refers to a building’s ability to contain a fi re in the unit where it started. Walls, fl oors, ceilings and doors are rated based on how long they will survive a direct fi re before burning through. The typical requirement is a rating that affords a 30-minute separation between the units. Drywall and plaster ceilings for example are acceptable, but they must be continuous so that joists are not exposed in any room. By contrast, suspended ceilings are not acceptable. 

Means of egress refers to the occupants’ ability to exit the house. Ideally, units should have their own exits. Units that share a common exit are allowed if the common exit is ‘fi re separated’ from both of the units with a 30-minute rating. If it not rated as such, it can still be used provided that there is a second exit from each unit and the fi re alarms are interconnected. To be considered an acceptable second exit, a window must have an opening of at least 600 square inches, with the smallest dimension being 18 inches; the windowsill must be within three feet of grade; and basement window wells must extend three feet out from the house wall, to allow room to crawl out.

The fi re detection area of compliance requires that all units have smoke alarms. Smoke alarms do not have to be interconnected unless the fi re separation to the common exit area does not have a 30-minute rating. Some municipalities may also require carbon monoxide detectors.

Electrical safety refers to the required inspection by the Electrical Safety Authority. As with the fi re department’s inspection, defi ciencies that the Electrical Safety Authority identifi es must be addressed. In general, an apartment’s minimum ceiling height must be 6 feet 5 inches; its entrance door must be at least 32 inches by 78 inches; bathrooms require either a window or an exhaust fan; and if there is a parking spot for one of the units, there must also be a parking spot for the other unit.

Once bylaw and code requirements have been met and certifi ed, homeowners can register the basement apartment with Municipal Property Standards.

Bear in mind that if you are planning to construct a basement apartment, you must also apply for a building permit and comply with today’s Building Code.

This article was sourced from the Toronto Real Estate Board.

BASEMENT APARTMENT LEGALITIES

2 This article was contributed by AmeriSpec Canada, a leading home inspection company. Please visit them online at www.en.amerispec.ca.

4 1

James Metcalfe BROKER

416-931-4161 www.OurHomeToronto.com | Service@OurHomeToronto.com

In accordance with PIPEDA, to be removed from this mailing list please e-mail or phone this request to the REALTOR® Not intended to solicit buyers or sellers currently under contract with a broker. The information and opinions contained in this newsletter are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for damages resulting from using the published information. This newsletter is provided with the understanding that it does not render legal, accounting or other professional advice. Statistics are courtesy of the Toronto Real Estate Board. Copyright © 2012 Mission Response Inc. 416.236.0543 All Rights Reserved. D191

“YOUR REFERRALS ARE SINCERELY APPRECIATED! THANK YOU!”

Royal LePage Real Estate Services Ltd.Johnston & Daniel Division, Brokerage

477 Mount Pleasant Rd., Toronto, ON M4S 2L9

The average price of a resale home in the GTA in July was $476,947 - which was up by a respectable 4% versus the July 2011 average price of $458,646. It is interesting to note that the MLS® Home Price Index (MLS® HPI), which provides an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 7.1% on a year-over-year basis. The variance between these two price growth rates is accounted for the fact that the mix of homes sold in July 2012 versus July 2011 was substantively different. As a result, the MLS® HPI likely offers a more accurate reading on actual price growth for this particular period. However, price growth has defi nitely moderated versus recent months due to a much better supplied market.

From a volume perspective, the month of July produced a 1% decline in sales (7,570 transactions versus 7,683 in July 2011). The sales decline was led by the condo apartment segment (-10%) while, at the opposite end of the spectrum, the townhome segment posted a very robust volume increase of 15%. The very strong annual sales growth in the fi rst half of 2012 and an earlier peak in sales this spring compared to 2011 help explain more moderate sales this summer. The new more stringent CMHC mortgage lending guidelines (which became effective on July 9th) and the continued weight of the additional upfront cost of the City of Toronto land transfer tax have also likely prompted some households to put their buying decisions on hold.

GTA RESALE HOME SALES8 9 10 11 12

GTA Resale Home Sales

MARJAN MAY SEP NOVJUL

3,000

1,500

4,500

6,000

7,500

9,000

10,500

12,0002011

2012

8 9 10 11 12

GTA Resale Home Sales

GTA AVERAGE RESALE PRICE

MARJAN MAY SEP NOVJUL$400,000

$540,000

$420,000

$440,000

$460,000

$480,000

$500,000

$520,00020122011

AUGUST 2012

Home renovations undertaken by Ontario’s 3.2 million homeowners produced over $20.3 billion in economic activity last year. Unfortunately, a large amount of home renovation work in this province is conducted via the “cash deal” or through the underground economy. Unlicensed workers hurt the reputations and competitiveness of legitimate renovation contractors and cheat governments out of billions of dollars. The Ontario Home Builders’ Association estimates that the underground home renovation economy causes the loss of up to $298 million in HST revenue annually, $1.6 billion in income tax revenue annually and $767 million in other revenues like CPP, WSIB, Employer Health Tax and Employment Insurance Premiums.

In addition, the underground home renovation industry poses a number of serious risks to homeowners. Underground contractors often do not meet health and safety standards, carry no liability insurance and do not offer warranties. Moreover, homeowners have little to no recourse in the event of shoddy or unsafe workmanship. If a worker falls on your property, you, as the property owner, may be held liable. Realtors and

homebuilders believe that the best way to mitigate the growth of the underground home renovation economy is to give home owners a fi nancial incentive to use professional contractors. Professional contractors have HST numbers, maintain insurance and pay taxes.

Specifi cally, Realtors are urging all provincial politicians to support the creation of a permanent Ontario Home Renovation Tax Rebate. If the provincial government were to institute a renovation rebate, payable to the homeowner, homeowners would be far more likely to insist on a receipt creating a paper trail that would deter underground economic activity. The payment to the homeowner provides the incentive for written contracts which is good for everybody, particularly governments losing billions of dollars in tax revenue to the underground economy and at the same time it can go a long way to stimulating the provincial economy.

As usual, your client referrals are both highly valued and much appreciated. Until next time, take care!

“A government that robs Peter to pay Paul can always depend upon the support of Paul.” –George Bernard Shaw

“A sure cure for seasickness is to sit under a tree.” – Spike Milligan

“A vegetarian is a person who won’t eat anything that can have children.” – David Brenner

“Happiness is having a large, loving, caring, close-knit family in another city.” – George Burns