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YOU R T R U S T E D S OUR CE F OR RE A L E S T A T E L A W NEWSLETTER 2005 SPRING EDITION ISSUE 02

Hello again! It is with great pleasure that we present thesecond edition of Nakhuda Law Canada Inc. (and for thosealready familiar with us, ìNLC iî) 2005 newsletter.

NLCi is now in its sixth year of practice and focuses mainlyon real estate and commercial law. We hosted two eventslast year. The NLCi Canada Day Boat Cruise and the NLCi2004 end of year party were both fun events and we arehoping to renew the experience this year. Donít forget to calland book your ìguest ticketsî in advance.

Y a s m i n N a k h u d aBarrister, Solicitor & Notary Public

ìThe dream home comes true whenlawyers, real estate sales representatives,mortgage agents and brokers join handsand commit themselves to helping thehome buyers find their home and makingit happenÖî

AGENTS OF THE MONTH AND FOR THE YEAR 2004:The award for Agent of the Year 2004 was attributed to Vess Ivanov of Re/Max Executive and wegive him our warmest congrats! The following are the other persons who were nominated ìAgent o fthe Monthî:

January 2004: Sam Katoch of Sutton Group Estates (2000) Ltd.February 2004: Kamal Sood of Re/Max Realtron Realty Inc. & S. Shah of Century 21 Parkland Ltd.

From left to right: Kamal Sood, Manoj Atri and Sam Katoch

NLCi NEW RECRUITS: Newplayers on the team this year:Sherah Buhary, Younus Dasoo andMisfillah Rashid.

March 2004: Mohammed Mall of Re/Max Crossroads Realty Inc.April 2004: Syed Ahasan of Century 21 Parkland Ltd.May 2004 : Salim Al- Tamimi, mortgage agent, Bank of MontrealJune 2004: Syed Ahasan of Century 21 Parkland Ltd.July 2004: Onkar Chechi, Re/Max Executive Realty Inc.

August 2004: Alexandra Vassiyeva Re/Max West Realty IncSeptember 2004: Vess Ivanov of Re/Max Realtron Realty Inc.October 2004: Munzoor Quadir of Century 21 Parkland Ltd.November 2004: Mainul Syed of Sutton Group Commitment Realty Ltd. &

Raja Waheed of Re/Max Hallmark Realty Inc.December 2004: Manoj Atri of Re/Max Hallmark Realty Inc.

We thank all of them and we encourage you to look forward to your 2005 rewards.

From left to right: Vess Ivanov and guests From left to right: Fred Giankas, Patricia Giankas and Kelly Johar

Dee Ramotar and Hubert WattFrom left to right: Murtuza Rizwi and spouse, Harvinder Bogal, EshanQureshi and spouse, Mohammad Moosa Mall and spouse

LEGAL CONCERNS: A True StoryPitfalls of the New Home Agreement of Purchase and Sale

Recently we have encountered numerous cases where clients have entered into an ì assignmentagreementî to buy a new home from someone who purchased from a builder some time ago butwas selling his or her interest in the newly built home to them prior to the closing date. In thisedition of NLCi newsletter, we will discuss the relevant issues before signing the assignmentagreement.

This is the story of Mrs. C. who bought a new house at 10 Dream Lane. 10 Dream Lane was firstbought by Mr. and Mrs. Smith four years ago directly from the builder. The Smiths apparentlybought the property as an investment with the intention of selling at a profit on completion. 10Dream Lane was therefore listed on the M.L.S. The couple paid the builderís transfer fee of$5,000.00 to assign the agreement to Mrs. C. Mrs. C. agreed to close on October 28, 2004, a datethat was initially agreed upon by the Smiths and thereafter gave notice to her landlord.

Two weeks before closing, Mrs. C. received a notice from the builderís lawyer advising her that theclosing was postponed. Mrs. C. contacted our office to find out if the builder had the right to do so.Mrs. C. was informed that under the standard builderís agreement, the builder has the right toextend the closing date as often as may be required, provided the total days of extensions are notmore than 120 days. Mrs. C. who had booked her movers, bought and scheduled delivery of hernew furniture, located new schools for her children and made transfer arrangement, was unable tomove in.

Mrs. C. was forced to sign an agreement extending the closing date to November 30, 2004 with thebuilder. Mrs. C. paid for cancellation of moving trucks, and was appalled to find out from herlandlord that her unit had been rented out to another tenant and that she had to vacate her place.

Mrs. C. was appalled to hear that under the law, the house was deemed to be ì substantiallycompleteî a nd that she was obligated to move in. In fact if Mrs. C. refused to close thetransaction, she would be in default of the agreement of purchase and sale and would likely forfeither deposit. Mrs. C. decided not to close and threatened to sue her sales representative.

How could all of this have been avoided? Mrs. C.ís agent should have insisted that she sees her

When Mrs. C. did her final home inspection two daysbefore November 30, she was horrified to find that thetiles were of the wrong color, the kitchen cabinets weremissing, the niche in the wall was nowhere to be seen,there were bumps on the walls, door handles weremissing and while the water pressure was low in sometaps, there was a huge clanking sound when sheopened the shower tap. Mrs. C. did not want to moveinto this house. It was certainly not the dream housethat was sold to her by the eager sales representativesseveral months ago!

THE NLCi ILLEGAL JOKE CORNERAT THE TORONTO CANINE LAND REGISTRY OFFICE

D ISC LA I MER : N o la wyer ís new s letter c an be publis hed w ithout prope r dis c laimer . S o her e is our NLCi I dis c laimer : T heMrs . C . s tory , the law s tatemen ts , and f or that matter, the s ynta x , s pelling, p unc tuation, unauthoriz ed pictures ha ve allbeen pu t together h a s tily, without any c ohe renc e, form or order . W e hav e deligh tfully plagi ar iz ed tex ts , c ut and pa s tedfrom w e ll-lear ned a nd ment ally inc ompetent authors and mis printed t hem, par odie d and/ or otherwis e her ei naf ter,her eto and her einbe fore and/ or on an ì a s is î c ondition inc orporated s a me into this new s letter. A ll v iew points ex pre s s edar e per verted and u noriginal. A ll ì heî c an be a ì s heî a nd v ic e v ers a. P leas e be adv is ed t ha t y ou ar e he rebyrec omme nded not to believ e ev er ything you r ead or y ou ma y end up v iolating s tat utory law s , bylaw s or other honor abl e

and/or hopeles s ena c tments Ö c ertainly if y ou ar e f ined, and/or det ai ned, and/or impris oned, NLCi s hould not be t hename on y our lips . H a ve a law ye r f ree day ! ! !

Yasmin NakhudaBarrister, Solicitor & Notary Public

NEWSLETTER YO UR T R US T E D S O U R C E F O R RE AL E S T A T E L A W 2005 SPRING EDITION ISSUE 02

1 20 0 M a r k h a m Ro a d , Su i t e 30 9 , T o r o n t o , O N , M 1 H 3 C 3 T e l : ( 4 16 ) 2 9 2 4 66 7 F a x : ( 4 16 ) 2 9 2 5 72 5 E ma i l : n a k hu d a l a w@ b e l l n e t . c a

A first time homebuyer walked into a realestate lawyerís office and inquired about thelawyerís rates. ìWe charge three hundredand ninety-nine dollars and ninety nine centsfor three questionsî, the lawyer replied.ì Isnít that kinda steep?î said the ratherintimidated buyer. ìYes, Sirî, said the lawyeras she sat down, pulling out her fee sheet,ì Öand what is the third question?î.

lawyer and obtains legal advice prior to executing the assignment agreement. Mrs. C. did notbenefit from the ten-day conditional period and did not have the new home purchase agreementreviewed by a lawyer, as should be the case.

My office welcomes your questions and we are happy to talk with your clients to ensure theyunderstand the nature and consequences of entering into any type of agreement of purchaseand sale. Please act prudently and identify your clientís needs for legal consultation when itarises.

Again, It is important that if you find a property listed for sale is by sellers who are not theregistered owners of the property, that you remember the rule that a person who does not owna property cannot legally transfer the ownership thereof. Please call us if you find yourself in thistype of situation.

Finally, it is always a good thing to invite your clients to visit the website www.newhome.on.caand view their builderís ratings and review the parameters of their insurance coverage under theOntario New Home Warranty Protection (ONHWP) Act.