Remember to turn off your outdoor taps for winter

Do you turn off your outdoor water taps and drain them before winter?  If you don't, you can get lucky for a time, but you may suddenly find yourself sending out an SOS like this one I once saw on Facebook:

"OMG - outside tap blew up and water is spewing everywhere & flooding towards house!! I DON'T know where shut off valve is!!"

If you've ever frozen a bottle of water and noticed how the bottle has bulged, you understand to some extent why this happens. Unlike many liquids that shrink in volume when frozen, water actually expands, causing the bottle to bulge - or break if it is inflexible material like glass. 

When this happens inside plumbing, the push of the water expanding as it freezes into ice can burst a pipe. In the example above, my friend was lucky that the burst was outside the house and the water was spewing into the yard. They were also lucky that it happened while they were home or it could have still flooded back into the house, but it would have been much worse if the freeze had occurred a bit further into the pipe because water would have been flooding directly into their basement.

Frozen pipes are always a nuisance and can happen anywhere plumbing is running on or close to exterior walls, but outdoor taps are especially risky because by their nature they extend beyond the interior of the house and are exposed to the outdoor temperatures.

So, if you haven't already, go figure out where the shutoff valves are for your outdoor taps and turn them off, then open the taps outside to drain any water still inside and confirm they are off.

#Terminology Tuesday: Escape Clause

A sale-of-property condition allows a buyer to make an offer on a property with a condition on selling their property, rather than waiting until they are sold first. This is the most usual situation where we may see an 'Escape Clause'.

Because selling a property can take longer than other conditions, such as mortgage or home inspection, a seller is often not keen on accepting this condition from a buyer.  After all, you're then stuck in limbo with a conditional sale until the buyer gets their own property sold. If they don't successfully sell and end up giving up, then you can find yourself without a buyer and a lot of wasted time.

An Escape Clause helps to mitigate this risk.  The standard wording from the Ontario Real Estate Association's clause library is:

Provided further that the Seller may continue to offer the property for sale and, in the event the Seller receives another Offer satisfactory to the Seller, the Seller may so notify the Buyer in writing by delivery to the Buyer personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto. The Buyer shall have <XX> hours from the giving of such notice to waive this condition by notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto, failing which this Offer shall be null and void, and the Buyer's deposit shall be returned in full without deduction.

So the seller gets to continue to market their property for sale and potentially accept another offer from a different buyer (with a condition on the seller getting out of the previous sale).  If this happens, then the buyer will have "XX" hours from the time the seller gives them notice to either firm up or back out.  The time given varies, typically between 24 and 72 hours.  The seller naturally wants less time, the buyer wants more. I find 48 hours to be a pretty usual compromise, but market conditions may dictate one way or the other.

When this happens, the buyer can waive their sale-of-property condition and enter into a firm sale.  The obvious risk is that you don't sell your house in time to close on the agreed closing day.  If you can't finance the purchase without the funds from selling, this puts you into a breach of contract with all the related problems that brings. 

But the other way, you're backing out of the sale and letting the other buyer have it (with your deposit being returned just like any other condition falling through).  Not an appealing option, but better than not closing, losing your deposit, and getting sued.

In a situation like this, it is important to discuss your options with your real estate professional and maybe even your lawyer.

Market Media Monday - November 17, 2025

A curated list of recent headlines relevant to real estate in Canada, with short excerpts. Click each headline link to read the full article on the source site.

[ Calgary to be Canada’s top real estate market amid transitionary 2026, report says ]
"Real estate is expected to be in transition next year as companies look to find new sources of growth, with Calgary’s market emerging as a particular bright spot, according to a PwC Canada report."

[ Donald Trump’s 50-year mortgage plan is being panned. It also wouldn’t fly in Canada ]
"U.S. President Donald Trump’s proposal for a 50-year mortgage may sound enticing to many first-time homebuyers in America seeking an affordable way to enter the housing market. But many industry observers have panned the idea to extend the 30-year loan period that most in the U.S. sign up for. And it’s very unlikely such an idea would gain traction anytime soon in Canada, where amortization periods have been shortened over the last two decades."

[ Ontario weighs taking control of real estate regulator ]
"The Ontario government is considering taking control of the province's real estate regulator after an audit into its handling of what it describes as iPro Realty's "misappropriation" of funds. The minister of public and business service delivery says in a statement that the review of the Real Estate Council of Ontario identifies significant issues with the regulator's practices, processes and procedures."

#TerminologyTuesday: Co-op

In your real estate browsing, you might come across an occasional listing that looks like a lot like a condo, but is described as a "co-op"..  just what is that?

Well, first off, it's not a condo. With a condo, an owner legally owns their unit and it is registered in the land titles system the same as any other piece of property you might buy. The rest of the property (hallways, elevator, etc, in an apartment condo) is called "common element" and is owned and taken care of by the condominium corporation.  As a condo owner with share in that corporation, all the 'common element' is essentially owned together by all the owners, and maintenance is paid for through the monthly fees.

Community ownership

Co-ops are an earlier community-ownership option that predates the laws that allowed the development of condominiums and the registration of condo unit ownership in land titles.  In a co-op, the entire property is owned by the co-op corporation and an owner owns SHARES in that corporation - not any physical property itself - which allow use of the unit as part of those shares' rights.

Otherwise, co-ops operate on a day-to-day basis in a similar fashion to condos. There is a board of directors responsible for the management and maintenance, and monthly fees that pay for that. Legal requirements around management of co-ops are not quite the same: management may be done almost entirely by the co-op board of directors, whereas a condo should have a professional and licensed condominium management company. This means that quality of management can easily vary from building to building.  But, as long as management is well-run, this is not a significant concern.

Financing

One of the biggest practical differences from a real estate market perspective is that the type of ownership greatly affects the financing that is available. Because you are not buying a property that will be registered in the land title system, you will not be able to get a mortgage when buying a co-op. Yes, you read that correctly, no mortgage. 

There are some financial institutions that will offer financing in a share purchase agreement format, but the amount you can get will be significantly less. With the one I am familiar with, you can only get 40% loan-to-value. This means if you buy a co-op at $300,000, your loan will only be $120,000 maximum. You have to come up with the other $180,000 yourself.  With a condominium and a mortgage, you can usually get at least 80% loan-to-value (depending on income qualification, appraisal, etc, of course).

The other option for buying a co-op is all cash, whether your own savings or borrowed from somewhere else like a line of credit or family member.

Occupancy Rights

Some other factors that are important to understand about co-ops is that the shares bring a right to occupancy in a specific unit, but those rights are not unlimited.  

For one thing, many co-ops require approval of a new buyer by the co-op board. In theory, this shouldn't be a problem if the buyers are financially stable enough to buy the co-op, but it is at least a step in the sale process that needs to be taken care of.

Another important factor is that occupancy is granted to the owner who owns the shares and their family, and no one else. So in general, co-op units can not be rented out to anyone else. This obviously reduces the market interest in it compared to condominium ownership, as most condos can be rented fairly easily.

Affordability

The combination of the factors above generally translates into a lower market price for a co-op compared to an otherwise similar condominium. When it's easier to finance and easier to rent, higher prices are more feasible for condos. There is more demand for a condo simply because there are more buyers qualified with the easier financing.  However, if you are going to be a largely cash buyer anyways, a co-op might give you more bang for you buck, and possibly less competition depending on the market.  

As always, make sure you're working with professionals and do your due diligence. With that, a co-op just might be the right fit for your needs.

Market Media Monday - November 10, 2025

A curated list of recent headlines relevant to real estate in Canada, with short excerpts. Click each headline link to read the full article on the source site.

[ Toronto housing market is dying and here's how much average prices have dropped ]
"The latest data from the Toronto Regional Real Estate Board (TRREB) highlights continued market challenges affecting homeowners and sellers, while the ever-falling cost of a home in the region offers a ray of hope for would-be homebuyers who have been priced out of the market throughout the last decade of runaway land values."

[ Home purchased for $875K sells for a 44% loss in Ontario ]
"Housing prices are down in Hamilton. The unadjusted benchmark price was $747,200 in October 2025, which is similar to the price from last month and nine per cent lower than the same period in 2024, the Realtors Association of Hamilton-Burlington said in its monthly report."

#Terminology Tuesday: What is a final walk-through?

 A final walk-through is exactly what it sounds like: a final walk through the property so the buyer can take a last look before closing.

It's pretty common practice, but there is a standard clause that should be in the offer to ensure the buyer will have an opportunity to take this final walk-through:

The Buyer shall have the right to inspect the property one further time prior to completion, at a mutually agreed upon time, provided that written notice is given to the Seller. The Seller agrees to provide access to the property for the purpose of this inspection.

Although the standard wording refers to it as "inspecting" the property, it is important to note that this is NOT a condition, like a home inspection condition, so there is no automatic right to cancel the deal if there is some problem found.  But it does provide an opportunity to make sure there have been no significant changes to the property. If there was some major new damage or issues revealed, the buyer would want to immediately discuss the situation with their lawyer.

This opportunity to revisit the property is also often used by buyers to make some measurements for new furniture or renovations they have decided to do in between when they made the offer and closing.  Unless it is a short closing time frame, I usually write the clause in to include "two further times" so that buyers can take an opportunity to measure if they need to make orders sooner, and still be guaranteed a final walk-through closer to actual closing.

Market Media Monday - November 3, 2025

A curated list of recent headlines relevant to real estate in Canada, with short excerpts. Click each headline link to read the full article on the source site.

[ Bank of Canada announces new rate cut ]
"The Bank of Canada has lowered its benchmark interest rate, cutting by 25 basis points amid continuing signs of a softening national economy. The central bank said on Wednesday morning it was bringing that policy rate, which directly impacts variable mortgage rates, down to 2.25% in a decision widely expected by most economists."

[ How do lower interest rates impact your life? ]
"Ahead of this latest change, CBC News spoke with economists, mortgage experts and financial planners who explained how interest rates work and what they watch for with every Bank of Canada announcement. Here's what lower interest rates mean for you, small businesses and the Canadian economy."

[ Canada faces $400 mortgage payment spike: How banks are preparing for the renewal storm ]
"Canada’s banking sector is entering what may be the most significant mortgage renewal cycle in decades. By the end of 2026, nearly half of Canadian homeowners will renew their mortgages, trading the rock-bottom rates of the pandemic years for noticeably higher payments."

[ Mortgages in arrears in Canada – what the numbers mean ]
"Mortgages in arrears in Canada remain very low compared to historical and international standards. While an increase in arrears rates remains possible if the employment market in Canada softens, banks remain committed to supporting their customers through periods of financial stress, as they have in the past."