1. MarketNews
JAMES METCALFE’S REAL ESTATE UPDATE OCTOBER 2011
SEPTEMBER RESALE MARKET STAYS STRONG
Greater Toronto REALTORS® reported 7,658 sales through While sales have been strong especially in recent months, the
the TorontoMLS® system in September 2011, continuing the market continues to experience a shortage of listings, which
strong momentum of the past several months. The growth has resulted in more competition between home buyers.
rate versus September 2010 was a whopping 25% and, on a Buyers also have enjoyed rising incomes combined with
year-to-date basis (January thru September), sales growth now the aforementioned low interest rates. These factors have
stands at 2.6 percent versus the first nine months of 2010. conspired to push the average price of a resale home in the
The fragile state of the global economic recovery has clearly GTA to $465,369 - which is up almost by 10% versus the
benefitted the market by propagating our exceptionally low September 2010 average price of $425,757. The total number
interest rate environment. The Bank of Canada is now solidly of active listings on the market stood at 18,808 at the end
committed to maintaining low rates well into 2012 (good news of September, which was down by 8% versus the September
for variable mortgage rates) while the continued migration 2010 month-end figure of 20,334. It took 27 days on average
of stocks into bonds will keep bond yields very low as well to sell a resale home in September, which was 6 days fewer
(good news for fixed mortgage rates). than the 33 days it took to sell a home in September 2010.
GTA RESALE HOME SALES (UNITS SOLD) - SEPTEMBER GTA RESALE HOME SALES (AVERAGE PRICE) - SEPTEMBER
2008 2008
2009 2009
2010 2010
2011 2011
5,000 6,000 7,000 8,000 $300,000 $350,000 $400,000 $450,000
James Metcalfe BROKER
416-931-4161 Royal LePage Real Estate Services Ltd.
www.OurHomeToronto.com Johnston & Daniel Division, Brokerage
Service@OurHomeToronto.com 477 Mount Pleasant Rd., Toronto, ON M4S 2L9
PAGE 1
2. Smoking in condominiums
Condo
Corner
As the debate about smoking heats up across the country, it seems the Tribunal made the following statement:
to be getting close to the boiling point in some condominium If the Kabatoff’s are able to establish that they have
corporations. In the condominium setting, balancing the rights disabilities that are exacerbated by secondhand
or privileges of all residents is often a difficult task. In the case of smoke, their complaint that [the condo corp.] failed
smoking, it seems there is never an easy answer. The issues related to to accommodate their disabilities could amount to
smoking may slowly be coming into sharper focus. discrimination under the Code.
Changes in provincial legislation which occurred in 2006 had This is a strong statement. In essence, the statement suggests that
the effect of prohibiting smoking of tobacco in any enclosed if human rights issues are raised, there could be a possibility that a
common area of a condominium. So, for example, it was clear that condominium corporation could be forced to become “smoke free”
condominium corporations were now required to have smoke-free – both on the common elements, and in the units!
hallways, party rooms and lobbies.
NOTE: As noted briefly above, this case has not been argued on its
It has also been our view that the application of this legislation in merits. Furthermore, there is some indication that it may not reach a
conjunction with general condominium law principles permits a full hearing, as settlement discussions are underway.
condominium corporation to prohibit smoking on all common
Where do we go from here? If a condominium wants to become
elements (including the exclusive use common element areas and
entirely smoke-free (by banning smoking in the units), the
other outdoor areas) by passing a rule.
condominium may consider the following:
The issue which has remained in question is: Can the corporation 1. Amending the Declaration (with the consent of the owners of
prohibit smoking in the units as well? A recent decision of the at least 80% of the units); or
British Columbia Human Rights Tribunal [Kabatoff v. Strata Corp. 2. Passing a Rule.
NW 2767, 2009 BCFRT 344] may shed some light on this issue,
In our view, a Declaration amendment would very likely be valid and
and could have national implications. The Kabatoffs have lived in
enforceable. However, the validity of such a rule is questionable.
their condominium unit for many years. The Kabatoffs suffer from
[The Courts have not yet considered such a Rule.] In either case
respiratory illnesses and allergies, both of which are exasperated by
(Declaration or Rule), we are inclined to feel that existing smokers
cigarette smoke. Recently, a new owner moved into a neighbouring
would have to be grandfathered. [Yes, smokers have rights too!]
unit. The new owner smokes. The Kabatoffs attempted, without
success, to have the condominium corporation resolve the issue Furthermore, the Kabatoff case tells us that condominium corporations
– essentially by forcing the neighbouring owner to either stop MIGHT have a duty to take some measures (to control smoke in
smoking, or alternatively to stop all smoke transfer from the unit. units) in cases where smoke is shown to be causing a disturbance or
Because they were unable to resolve the issue with the Board of harm to any residents. We might even see new legislation or Court
Directors, the Kabatoffs commenced a Human Rights Application. decisions that may impose duties on condominium corporations in
The Corporation sought to have the Application dismissed. these cases.
The decision of the Human Rights tribunal dealt with whether
This article was contributed by Nancy Houle. Nancy practices condominium law
or not the case should be dismissed. A full hearing on the “merits” with the law firm Nelligan O’Brien Payne. Please visit them at nelligan.ca. Nancy
of the case has not yet occurred. However, at this initial hearing, is a partner in the firm.
PAGE 2
3. Most common causes of high heating bills
House
The exact cause of high home heating bills and uncomfortable drafts
Smart
in the ceilings or walls. Depending on the current insulation
are unique to specific conditions in each home, however one or more levels in your home, retrofitting your ceilings/walls with more
of the following factors are generally at play. insulation may be an option to reduce heat loss from your home
and heating bills.
1. Older, inefficient heating equipment. An older, conventional
natural gas or oil fired furnace commonly operates at efficiencies 3. Air leakage through gaps in the building’s thermal
on the order of 65-70%. In general, this means that for every envelope. A building that has a poorly sealed thermal envelope
dollar you are spending on heating, approximately 30-35 cents (i.e., inadequately trimmed or caulked/sealed windows, doors,
is going up your chimney to heat the great outdoors. Newer, attic hatches, plumb vents, foundation sills, etc.) can rapidly
high efficiency systems are often 90% (or more) efficient, which leak warm air out of and cold air into the building, dropping
results in less than 10 cents of each dollar being wasted. On the house temperature quickly in winter months and therefore
this basis, an upgrade from a conventional furnace to a high requiring the heating system to run longer and more often.
efficiency furnace could reduce heating fuel usage and costs By properly sealing the thermal envelope of leaky buildings,
by 20-30%. significant energy cost reductions can often be achieved.
2. Low insulation levels in the walls and ceilings. Heat flows 4. Continuous furnace blower fan operation. If the house
from the inside of your home to the outside during colder is heated by a forced air central heating system, the drafty
months. The barrier between the interior heated portion of conditions may be caused by continuous furnace blower
your home and the outside or unheated portions of your home operation. The blower is a large fan located in the base of the
(i.e., most attics and garages) is called a “thermal envelope”. furnace that circulates air in a home. You can check if continuous
The more insulation you have in your walls and ceilings blower operation is the source of the drafty conditions by feeling
(thermal envelope), the slower the rate of heat loss from the for an intermittent cool breeze at heat registers in your home.
house. Insulation levels within the thermal envelope are often If a cool breeze is noted, attempt to adjust the fan setting on
measured by R-value. An R-value is simply a measure of thermal your thermostat from “manual” to “automatic” mode. If your
resistance. The higher the R-value, the greater the resistance thermostat is older and not equipped with these settings, a
to heat transfer. Current R-values required by building codes similar switch may be located at the main panel of your furnace.
in Canada are on the order of R-32 for ceilings and R-19 for If neither of these switches are present, consider consulting a
walls, although this varies significantly with the location of the heating contractor to discuss possible options to reduce the
home. A typical house built 30 years ago often had an R-15 drafty conditions and improve comfort in your home.
ceiling insulation level and R-10 wall insulation level. Houses
This article was contributed by Amerispec Canada, a leading Canadian home
built before 1940 often had very little or no insulation installed inspection company. Visit them online at www.amerispec.ca
PAGE 3
![Smoking in condominiums
Condo
Corner
As the debate about smoking heats up across the country, it seems the Tribunal made the following statement:
to be getting close to the boiling point in some condominium If the Kabatoff’s are able to establish that they have
corporations. In the condominium setting, balancing the rights disabilities that are exacerbated by secondhand
or privileges of all residents is often a difficult task. In the case of smoke, their complaint that [the condo corp.] failed
smoking, it seems there is never an easy answer. The issues related to to accommodate their disabilities could amount to
smoking may slowly be coming into sharper focus. discrimination under the Code.
Changes in provincial legislation which occurred in 2006 had This is a strong statement. In essence, the statement suggests that
the effect of prohibiting smoking of tobacco in any enclosed if human rights issues are raised, there could be a possibility that a
common area of a condominium. So, for example, it was clear that condominium corporation could be forced to become “smoke free”
condominium corporations were now required to have smoke-free – both on the common elements, and in the units!
hallways, party rooms and lobbies.
NOTE: As noted briefly above, this case has not been argued on its
It has also been our view that the application of this legislation in merits. Furthermore, there is some indication that it may not reach a
conjunction with general condominium law principles permits a full hearing, as settlement discussions are underway.
condominium corporation to prohibit smoking on all common
Where do we go from here? If a condominium wants to become
elements (including the exclusive use common element areas and
entirely smoke-free (by banning smoking in the units), the
other outdoor areas) by passing a rule.
condominium may consider the following:
The issue which has remained in question is: Can the corporation 1. Amending the Declaration (with the consent of the owners of
prohibit smoking in the units as well? A recent decision of the at least 80% of the units); or
British Columbia Human Rights Tribunal [Kabatoff v. Strata Corp. 2. Passing a Rule.
NW 2767, 2009 BCFRT 344] may shed some light on this issue,
In our view, a Declaration amendment would very likely be valid and
and could have national implications. The Kabatoffs have lived in
enforceable. However, the validity of such a rule is questionable.
their condominium unit for many years. The Kabatoffs suffer from
[The Courts have not yet considered such a Rule.] In either case
respiratory illnesses and allergies, both of which are exasperated by
(Declaration or Rule), we are inclined to feel that existing smokers
cigarette smoke. Recently, a new owner moved into a neighbouring
would have to be grandfathered. [Yes, smokers have rights too!]
unit. The new owner smokes. The Kabatoffs attempted, without
success, to have the condominium corporation resolve the issue Furthermore, the Kabatoff case tells us that condominium corporations
– essentially by forcing the neighbouring owner to either stop MIGHT have a duty to take some measures (to control smoke in
smoking, or alternatively to stop all smoke transfer from the unit. units) in cases where smoke is shown to be causing a disturbance or
Because they were unable to resolve the issue with the Board of harm to any residents. We might even see new legislation or Court
Directors, the Kabatoffs commenced a Human Rights Application. decisions that may impose duties on condominium corporations in
The Corporation sought to have the Application dismissed. these cases.
The decision of the Human Rights tribunal dealt with whether
This article was contributed by Nancy Houle. Nancy practices condominium law
or not the case should be dismissed. A full hearing on the “merits” with the law firm Nelligan O’Brien Payne. Please visit them at nelligan.ca. Nancy
of the case has not yet occurred. However, at this initial hearing, is a partner in the firm.
PAGE 2](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)