A Buyer’s Guide: Completing Real Estate Transactions in Nanaimo.

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Completing a real estate transaction as a Buyer can be a complex process. Once the Buyer and Seller have a contract of purchase and sale in place and the conditions have been satisfied, the Buyer’s lawyer will conduct a land title search and review any charges on the title. The Buyer’s lawyer will also prepare the conveyancing documents, and coordinate signatures, registration and money transfers.

  1. Completing the Purchase of Sale: The Buyer’s lawyer prepares almost all of the documents in a real estate transaction in Nanaimo. These include conveyancing documents, mortgage documents (if any), land title searches, and a statement of adjustments. Any financial charges on title are to be discharged by the Seller.
  2. Prior to Closing: The Buyer’s lawyer meets with the Buyer prior to closing to review the entire transaction and sign the documents. The transfer documents are sent to the Seller’s lawyer to be executed by the Seller. The documents are then returned to the Buyer’s lawyer. Once the Buyer’s lawyer has received the down payment from the Buyer, and the Buyer has satisfied all conditions of the mortgage lender, the lawyer registers the land title transfer document, along with the mortgage document at the Land Title Office.
  3. Closing: Once the documents are registered and the Buyer’s lawyer receives the mortgage proceeds, then the down payment and mortgage proceeds are paid to the Seller’s lawyer. Often, the Buyer takes possession the next day after closing.
  4. Post-Closing: The Buyer’s lawyer will provide a final reporting letter to the Buyer once the state of title certificate is received from the Land Title Office and will also provide the state of title certificate to the Mortgagee.

Don’t let the above steps in the real estate process fool you with their seeming simplicity. These four steps each have their own complexity in the home buying and selling process and missing the wrong step can cost you thousands of dollars, or even the sale of your desired property. Be certain you’ve done everything right. Contact an experienced real estate lawyer at Heath Law, in Nanaimo BC.

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What are standard conditions that a Purchaser of residential real estate may want in a contract for the purchase of a home?

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Purchasing a home in British Columbia is an exciting and significant milestone. However, the process can be intricate, and it is crucial for Purchasers to include specific standard conditions in their purchase contracts to protect their interests and ensure a smooth transaction. The following are examples of conditions:

  1. Buyer Financing: Including a financing clause in the contract allows the Purchaser to withdraw if they are unable to obtain satisfactory mortgage financing within a specified timeframe. This condition is essential as it ensures that the Purchaser is not obligated to proceed with the purchase of the home if their financing falls through.
  2. Property Inspection: Conducting a thorough inspection of the property is crucial to identify any potential issues or defects. It may be desirable to include a broad inspection clause, which allows for inspections at the Purchaser’s discretion. This will allow for a home inspection and can include a subsurface oil tank inspection if necessary.
  3. Insurance: Including an insurance clause is essential to protecting the Purchaser’s interests. This clause allows the Purchaser to exit the contract if they are unable to obtain satisfactory property, fire, and liability insurance.
  4. Review of Title: This condition allows the Purchaser to perform a review of land title to address the potential encumbrances on the land. These could include covenants, liens, easements, and statutory building schemes. A thorough review of the title is essential to ensure that the property meets the Purchaser’s needs.
  5. Strata Documents: In the case that the property being purchased is part of a strata, the Purchaser can include a clause requesting to see the strata bylaws and rules, as well as the minutes from prior annual general meetings and a depreciation report.
  6. Property Disclosure Statement: A property disclosure statement can provide the Purchaser with valuable insight into the property. The statement may disclose defects such as insect infestation, asbestos insulation or moisture problems. It is often desirable for the Purchaser to request a copy of a property disclosure statement.
  7. Clarifying Fixtures vs. Chattels: The law surrounding what constitutes a fixture and what constitutes a chattel is complex. It is prudent for the Purchaser to specify what is included in the offer price in the purchase contract. This may be a hot tub or a large mirror fixed to the wall.
  8. Lawyer’s Approval: Where a Purchaser has reservations about the form of the contract, the Purchaser could insist on a condition that the contract be subject to their lawyer’s approval within a specific period of time.

 Remember however that the above list is just a few examples of standard conditions often included in a real estate contract. These are not guaranteed to be present, nor are they the only clauses that may be desirable for your specific home purchase. To make sure you’re not missing out on—or trapped by—a clause that could cost you thousands, contact Heath Law and speak to an experienced real estate lawyer today!

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Why should I meet with a lawyer before signing a residential real estate contract?

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Signing a residential real estate contract is a significant part of buying or selling a property, as it governs the legal obligations of the Buyer and Seller. Consulting a lawyer before signing a real estate contract is recommended for the following reasons:

  1. Legally Binding Document: A lawyer will review the contract with you to ensure that you understand that you are entering into a legally binding financial obligation.
  2. Understanding Complex Terminology: A lawyer can simplify complex legal jargon, ensuring you fully comprehend the contract’s terms and the implications they have for you.
  3. Inserting Conditions: If you are a Purchaser, a lawyer can assist you in determining what conditions or “subject to” provisions need to be inserted. Example conditions include financing, inspection, or the sale of your own home.
  4. Understanding your Risks: If you are a Seller, the lawyer can explain under what circumstances a Buyer can terminate their obligations under the contract.
  5. Reviewing Title and Identifying Problems: If you are a Buyer, the lawyer can assist you with understanding what encumbrances or charges will remain on the title after your purchase and whether these affect the marketability of the property.
  6. Understanding the Location: Many Buyers may be new to the area and a lawyer could advise on the neighbourhood and what future development may take place in adjoining properties.
  7. Peace of Mind: Finally, our lawyers provide peace of mind by protecting your interests and ensuring the contract is fair and enforceable.

All too often, people underestimate the complexity of real estate contracts and leave themselves at risk. Heath Law has experienced lawyers that can help you avoid the pitfalls of a shady real estate deal or incorrectly filed documentation. Contact us today for any real estate purchases you’re considering.

ALSO READ:

What are standard conditions that a Purchaser of residential real estate may want in a contract for the purchase of a home?

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Major Changes to Employer Obligations Under the Workers Compensation Act – Effective November. 24, 2022

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Our Corporate and Commercial clients should take notice that Bill 41 – 2022: Workers Compensation Amendment Act (No. 2), 2022, received Royal Assent on November 24, 2022 (the “Amendments”).

These Amendments introduce important changes to BC’s Workers Compensation Act (the “WCA”). This has many implications for how employers are expected to deal with injured workers. Employers should be up to date on these changes since they have a significant effect on administrative decisions, cost calculations, and employee relations policies.

First, employees who have been employed for 12 continuous months before their injury and who were injured at work are entitled to reinstatement in a suitable role. This applies to employees who sustained their injuries within two years of the amendments coming into force. Employers now have an obligation to accommodate such injured employees to the point of undue hardship. This standard is measured by the specific circumstances of the case but financial detriment and workplace disruption can be taken into account. An employer who terminates an injured employee within 6 months of returning to work can be deemed in breach of the new obligations unless the employer can show that the termination is for other legitimate reasons. Businesses who employ fewer than 20 employees are exempt. Additionally, if an employee has not returned to work two years after being injured, the employer is then released from their obligation to maintain employment.

WorkSafeBC is in charge of resolving disputes between employers and employees and each is entitled to make complaints about the other. As such, both employers and employees have a duty to cooperate in order to find suitable work for an injured employee.

Under the Amendments, employers face additional penalties if they attempt to prevent employees from reporting injuries or claim compensation. WorkSafeBC will investigate and impose fines if an employer is in breach of the obligations. To facilitate these investigations the Amendments also established a Fair Practices Commissioner who reports to WorkSafeBC, makes recommendations, and creates an annual report.

Since many of these amendments result in increased administrative costs, employers would be prudent to update their workplace injury policies in response to these changes. Proactivity will also reduce the likelihood of being found in breach of the new obligations.

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7 Reasons to Update Your Will and Related Estate Planning Documents

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7 Reasons to Update Your Will and Related Estate Planning Documents

End of life and incapacity planning are among the most important tasks an individual can complete to ensure that their assets, personal care, and health care are handled appropriately. While it’s not pleasant to think about one’s own death or potential incapacity due to sickness or injury, taking the steps to ensure that your estate planning documents reflect your wishes is well worth the effort.

1. You haven’t drafted a Will: It’s integral that you have a Will so that you can ensure your assets are given to the beneficiaries of your choosing. Otherwise, the intestacy provisions of the Wills Estates and Succession Act of British Columbia will dictate who ends up with an inheritance and who doesn’t. Beloved friends or family members may inadvertently be excluded.

2. You receive a problematic or terminal medical diagnosis: To ensure that you receive satisfactory financial and legal management during periods when you don’t have legal capacity, as an example, falling into a coma, it would be prudent to execute an Enduring Power of Attorney. This document appoints an individual of your choosing to manage your legal and financial affairs. A Power of Attorney does not permit someone to make health care decisions on your behalf – this requires the appointment of a Representative under a Representation Agreement.

3. You have specific instructions you want healthcare providers to follow: If you have specific preferences regarding the scope of medical treatment provided to you when you’re incapacitated, you should execute an Advance Directive. This document can cover preferences such as “do not resuscitate” or “do not provide blood transfusions”.

4. A beneficiary under your Will has become disabled: Unfortunately, if people with disabilities obtain inheritances, their government benefits could be discontinued. To avoid this situation, a will-maker needs to ensure their Will provides fully discretionary trusts for any disabled beneficiaries.

5. You marry, enter a marriage-like relationship or get divorced: While the intestacy provisions of the Wills Estates and Succession Act ensure spouses are provided for in some fashion in the event that there is no Will, the preferable option is to have a Will that fully reflects your wishes. Alternatively, if you divorce or separate from a partner, you need to update your Will. You also need to closely review who benefits from accounts such as group benefits or insurance plans, as the current beneficiary might be your ex.

6. Your financial position significantly changes: If you come into a substantial amount of money by inheritance or other means, you’ll likely want to revise your estate plan to allocate the assets differently. If you do not, a large portion of the funds could fall into the category of residue, and may not go to an intended beneficiary. On the other hand, decreases in income that can come with retirement or losing employment may create a need to revise your Will. If you sell or dispose of assets specifically referenced in your Will to fund your financial needs, the beneficiaries will no longer obtain those gifts. It is prudent to plan ahead and revise your Will as your financial circumstances change.

7. New Grandchildren: If your current Will names specific grandchildren, only those named grandchildren will obtain a share of your Estate. You will need to update your Will to include any new grandchildren.

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Capacity of a Will-Maker and Undue Influence

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Capacity of a Will-Maker and Undue Influence:

Jung Estate v. Jung Estate, 2022 BCSC 1298 (“Jung Estate”) is an instructive case regarding testamentary capacity, the testator’s knowledge and approval of the contents of their Will, and the concept of undue influence. By way of background, the testator in Jung Estate was Rose Jung. Rose was described by witnesses as passive and non-confrontational. She left two surviving children: Steven and Jerry. Her assets consisted of a house worth over $1.6 million and the residue of her estate, which was fully spent in paying the expenses of her estate. Multiple factors brought Rose’s capacity into question and caused suspicion around her knowledge and approval of her Will. She made a new Will in 2017, just one month before her passing, although she’d also made a Will in 2001. Despite Rose’s history of treating her sons equally, which was reflected in her 2001 Will, the 2017 Will essentially disinherited Steven, yet offered Jerry a gift of over $1.6 million. Steven started the action; after he passed away, his wife took over the litigation, as she was the executor of Steven’s estate. The action successfully invalidated Rose’s 2017 Will.

In Jung Estate, the court laid out the law surrounding testamentary capacity. It stated that the formal validity requirements of the Will having been met lead to the presumption that Rose, as the testator, had necessary capacity as well as knowledge and approval of the contents of her Will. However, the presumption was rebutted due to the suspicious circumstances raised. The burden to prove the validity of the Will then shifted to Jerry: the person seeking to show the Will was valid. In making its ultimate finding that Rose did not have the requisite capacity, the court discussed and highlighted some of the circumstances that raised suspicion.

In looking to the details of Rose’s situation, the court held that testators must have a disposing mind and memory, such that they appreciate the nature and extent of their assets, as well as the consequences of their Will. The court noted that Rose could not comprehend the value of $1 million, nor did she understand that her gift to Steven, being the residue of the estate, had essentially no value. She did not appreciate the consequences of her 2017 Will. While the lawyer who assisted Rose with her 2017 Will, Mr. Micner, had arranged for a specialist to assess Rose’s capacity, the specialist noted that Mr. Micner “provided him with ‘the softest definition’ of testamentary capacity he had ever received from a lawyer”. The specialist noted that Rose didn’t understand the extent of her wealth, nor could she manage her finances.

Looking to Rose’s poor health at the point she made and executed her 2017 Will, the court noted that Rose became depressed after her husband’s death, and began suffering memory issues and frequent falls starting in 2012. Her health deteriorated to the point that she needed full-time care by 2016, having issues including heart problems, renal dysfunction, and dementia. Rose was a vulnerable individual.

The court also noted the degradation of the relationship between Steven and Jerry. It discussed how the brothers’ relationship took a marked decline after Jerry went through an acrimonious divorce. Steven, a lawyer, had assisted Jerry for some time through the litigation, but was forced to step away due to significant health issues. Jerry was very hurt. Jerry became alienated from his family; he eventually began refusing to visit Steven, even for the holidays. Near the point of Rose’s death, Jerry had began refusing to communicate with Steven about their mother’s care, and refusing to recognize Steven’s power of attorney (with Rose as the subject) or to provide him with receipts.

While the court found that Rose lacked capacity to have validly made or signed the Will, and as such the Will was invalid on the ground of capacity alone, the court went on to discuss markers of a testators’ knowledge and approval. The court discussed the differences between capacity versus knowledge and approval; it stated that capacity includes a person’s ability to make choices, while knowledge and approval include the testator’s ability to understand and approve of their choices. For proper knowledge, the testator must be aware of the magnitude of their estate and the effects of their chosen dispositions. The Will was held to be invalid on this ground too, in addition to the ground of inadequate testator capacity.

Finally, the court explored the possibility that Jerry had unduly influenced Rose. The court held that the Wills Estates and Succession Act (WESA) requires that a party claiming undue influence must show the potential for dependence or domination of the testator. If they’re able to show that potential, the onus to prove that the testator’s will was not overborne through undue influence falls on the person seeking to validate the Will. The court noted that Jerry had the potential for dominance for several reasons. First, Rose was very susceptible to financial abuse. Second, Jerry was instrumental in causing temporary alienation between Rose and Steven. Further, Jerry made the arrangements for Rose to meet with Mr. Micner. While the potential did exist, the court held that Jerry had not exerted undue influence over Rose. Jerry had respected Mr. Micner’s instructions that meetings with Rose must occur without Jerry’s presence, and Jerry further respected Rose undergoing an independent medical assessment.

Jung Estate serves as a guideline of factors that may cause an individual’s Will to be held as invalid. The case warns lawyers of the importance of proper documentation around a testator’s capacity, as well as around any suspicious circumstances or interactions. Estate litigation can be time-consuming, emotional, and costly. The lawyers at Heath Law LLP are experienced in preparing enforceable Wills that meet the needs of testators and recognize the rights of beneficiaries.

If you have questions about preparing a will, contact us today to schedule a consultation.

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The Death of a Child’s Guardian

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Parents are considered guardians of their children at law, and issues can arise if a guardian passes away. If a guardian passes away, there are family law rules to consider that determine who will become the child’s guardian. These considerations apply to children under the age of 19.

If two parents were the joint guardians of the child, and one passes, the surviving guardian will assume sole guardianship and all parental responsibilities, unless a Court Order or agreement states otherwise. If only one parent was the child’s guardian, and they pass, the other parent does not automatically become the sole guardian. That said, the surviving parent of a child who is not a guardian may be appointed as guardian through an application to Court under the Family Law Act. This may be the case if one parent solely raised the child, while the non-guardian parent did not spend any regular time with the child. If a child does not have a guardian for a duration of time, the Public Guardian and Trustee (the PGT) will step in. The PGT is a BC corporation with the goal of protecting individuals who do not have legal capacity, such as children.

A parent who is a guardian of a child may choose to appoint a successor guardian. The guardian can do this through their Will or specified form under the Family Law Act. It is important to remember that the successor guardian cannot be granted more rights than the recently deceased guardian. Further, appointments of successor guardians can only be made in accordance with the “best interests of the child” principles. These principles are involved in nearly all aspects of family law and require that the best interests of the child be considered, such as the child’s mental and physical well-being.

The law surrounding guardianship can be complex. The experienced lawyers at Heath Law LLP are happy to assist you with family law and other types of legal matters.

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What Happens in BC When a Person Dies Without a Will?

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What happens when a person dies without creating a will?

In BC, when a person dies without creating a will this is referred to as intestacy. Intestacy prompts the obvious question: what happens to the person’s assets? The Wills, Estates, and Succession Act, S.B.C. 2009, c. 13 (WESA), establishes a standard asset distribution scheme in the event of intestacy. In general, the intestate’s (deceased’s) spouse is first in line but their share of the assets depends on whether the intestate had children or descendants. Other relatives may also be entitled to a share if there is no spouse or children. However, before any assets are distributed, the court must appoint an administrator of the estate.

An administrator of an intestate estate has various responsibilities including the disposition of the remains, collecting and documenting assets and liabilities, keeping expense records, identifying potential beneficiaries, and eventually distributing the assets. Section 130 of WESA gives priority to the spouse to be appointed as administrator and gives them the ability to nominate an alternate. If the spouse is not appointed, the children of the deceased are next in priority order. Additionally, the consent of the majority of the deceased’s children can affect which child is ultimately appointed. If neither the spouse nor the children of the deceased are appointed, the court may appoint a person they consider appropriate in the circumstances.

According to section 25 of WESA, the standard asset distribution scheme will apply when there is no will (i.e. intestacy has occurred), as well as when a will is silent on the status of a part of the estate (partial intestacy). The starting point for distribution is always the spouse. WESA defines “spouses” as married people or people living in a “marriage-like relationship” for at least two years. People will no longer be spouses if they terminate their relationship, or in the case of marriage, divorce. Notably, WESA will not consider a couple “separated” if they begin living together again within one year of separation for the purpose of reconciliation, or for one or more periods totalling more than 90 days. If a person dies with a spouse but no children, section 20 of WESA determines that the spouse is entitled to the entire estate. Section 21 describes other possibilities: if there is a spouse and children, the spouse is entitled to the household furnishings and $300 000 with the remainder being split equally with half to the spouse and half to the children. If the children are from a deceased’s previous relationship, the $300 000 is reduced to $150 000. Spouses are entitled to their $300 000 (or $150 000) before any assets are distributed to the children. This means that if the total value of the estate is less than those amounts, the spouse will be entitled to the entire estate. In the rare circumstance that an intestate had two or more spouses, section 22 directs the surviving spouses to come to an agreement. If they cannot, the court may decide what happens for them.

If there is no spouse but the deceased had children, section 23 of WESA says the children split the estate equally among themselves. Section 23 goes on to detail which other relatives may be able to claim interest in the estate if there is no spouse or children. In priority order, these are parents, siblings, grandparents, siblings of parents and cousins, great grandparents, and descendants of great grandparents (second cousins etc.). If none of these relatives can be found, the estate will “escheat” to the provincial government according to section 23(2)(f) of WESA. This means that the government will be entitled to the deceased’s assets.

Finally, if a person dies without a will and there are no surviving guardians for a child, the default is that the director under the Child, Family and Community Service Act becomes the personal guardian of the child and the Public Guardian and Trustee becomes the property guardian of the child. If a family member or other interested person wishes to become a guardian, they must apply to the court under section 51 of the Family Law Act for an order appointing them. The court bases this decision on the best interests of the child and as such the court has final discretion on who may become the guardian.

Overall the framework created by WESA provides a clear pathway for resolving how an intestate estate must be distributed as well as the care and guardianship of any surviving minor children.

If you don’t have a will, or you’re ready to begin estate planning so your beneficiaries receive their intended inheritance, contact Heath Law 

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The Federal Child Support Guidelines Child Support Table

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The Federal Child Support Guidelines Child Support Table was updated effective November 22, 2017, to account for tax and other changes since the previous Child Support Table came into effect on December 31, 2011.

The minimum gross annual income at which the Child Support Table applies was increased from $10,820.00 under the 2011 Table to $12,000.00 under the 2017 Table. As a result, the Table no longer specifies a child support amount for payors living in British Columbia with an annual income of $11,999.00 or less.
For child support payors living in British Columbia with an annual income of between $12,100.00 and approximately $27,000.00 (depending on the number of children for which support is being paid), specified child support decreased under the 2017 Table.

For child support payors living in British Columbia with an annual income exceeding approximately $27,000.00, specified child support increased under the 2017 Table.
The maximum annual income for which child support is specified remains unchanged at $150,000.00. Beyond that income, there is a formula upon which child support is based.

For example, a payor living in British Columbia with an annual income of $17,000.00 paying child support for one child will now pay $111.00 per month under the 2017 Table as opposed to $133.00 per month under the 2011 Table. A payor living in British Columbia with an annual income of $75,000.00 paying child support for 3 children will now pay $1,522.00 per month under the 2017 Table as opposed to $1,483.00 per month under the 2011 Table.

While the changes to the Table were relatively minor, over time the difference in the amounts being paid and amounts otherwise payable may add up. If you are required to pay child support or receive child support as a result of an order made prior to November 22, 2017, we would encourage you to consult with a lawyer to ensure that a child support underpayment or overpayment does not accumulate.

Note that the Family Law Act will only allow a court to change, suspend or terminate an order respecting child support if certain conditions are met (see section 152). A court will require the parent seeking to vary the order to show that there has been a change in circumstances, evidence of a substantial nature that was unavailable when the order was made has become available, or that there was evidence of a lack of financial disclosure by a party that was discovered after the order was made. If one of the following applies to your situation, we recommend speaking to a lawyer about your options and your chances of success should you seek to change the child support amount payable or receivable.

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Update and reminder! URGENT: B.C. LAND OWNER TRANSPARENCY REGISTER (“LOTR”)

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URGENT: B.C. LAND OWNER TRANSPARENCY REGISTER (“LOTR”)

We write to advise that effective November 30, 2021, the B.C. Government requires that
any Corporation, Trust or Partnership that owns an interest in real estate must file a
Land Owner Transparency Report with the Land Owner Transparency Registry.
Failure to file may result in government-imposed penalties.

What is the Land Owner Transparency Registry?

The Land Owner Transparency Registry is a publicly searchable registry of information about
beneficial ownership of land in British Columbia. Beneficial land owners are people who own or
control land indirectly, such as through a corporation, partnership, or trust.

The Registry is intended to end hidden ownership of land and combat money laundering in B.C.
The B.C. provincial government created the LOTR to identify the individuals that actually own
real estate in the province.

Does the Land Owner Transparency Registry apply to you?

With few exceptions, all corporations, partnerships, and trusts that own real estate in British
Columbia must register. Trusts include formal trusts, bare trusts, and prescribed trusts.

What do you need to do?

If you own an interest in land in a corporation, partnership, or trust, you must prepare and
register a Transparency Report with the LOTR by November 30, 2022. An interest in land
includes a fee simple interest, life estate, or long-term lease.

Only a Legal Professional can register the Report.

The Transparency Report contains information about:

1. The corporation, partnership, or trust that owns real estate (“Reporting Bodies”);
and,

2. The individuals who are beneficial owners of the corporation, partnership, or
trust, as well as settlors of trusts (“Interest Holders”).

The Transparency Report discloses information about Interest Holders, including:

1. Name
2. Citizenship
3. Social Insurance Number (or Individual Tax Number)
4. Date of Birth,
5. Residency for Tax Purposes, and
6. Address

Only some of this information will be publicly searchable, and certain Interest Holders are
eligible to restrict what is available to the public. Government agencies will have access to all
information. All Interest Holders must be advised that their personal information was included
in a Transparency Report and a special letter giving notice under the legislation must be
provided to the Interest Holder.

The Transparency Report must be uploaded to the LOTR Registry online.

The report must also be updated when the information concerning the Interest Holder changes, for
example, a change in residential address, name, or ceasing to be an interest holder.
Specific reporting requirements apply for each type of corporation, partnership, trust, and
Interest Holder.
A failure to prepare and upload a Transparency Report may result in the government pursuing
administrative penalties of up to $50,000 or 5% of the assessed value of the real estate.

What can Heath Law LLP do to help?

We have a team of lawyers and staff well versed in preparing Transparency Reports and
compliance under this new LOTR legislation.

Please advise our office by November 1, 2022, if you own real estate in a corporation, trust or
partnership, and if you would like our assistance in preparing and filing a Land Owner
Transparency Report.

Yours truly,
HEATH LAW LLP

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