eh vs 42 - Friday, March 14, 1986 - North Shore News Real Estate — Homeowners warned of con artists THE REAL Estate Council of B.C. last. week issued a warning to property owners to beware of os ‘‘nothing down real estate purchase schemes currently being promoted through public seminars offered by touring lecturers. Accompanying the warn- ings was a cautionary reminder io real estate licensees in B.C., that if re- quested to submit a purchase offer in which the buyer will have no equity interest, they have a duty to warn owners of the dangers involved. If they fail to warn the owner and fail to recommend re- fusal of such offers by the vendor, they are liable to discipline under the Real Estate Act for cither negligence, misconduct or both, the council stated. “The hazard to an owner selling his property is that the purchaser in such a tran- saction can walk away after several months leaving the property owner {to salvage his property from a foreclosure action, a step that ends up costing the owner money,”* noted coun- cil chairman Hugh Clee of Vancouver. FINANCIAL JEOPARDY “Purchasers using no down payment offers may also wind up pulling themselves in financial jeopardy’’, Clee added. “If you borrow 100 per cent of the property's value, you could well be personally liable when you fail to live up to your commitments on the mortgages. The vendor can seize the property, sell it 1986-4371 (24hrs.) be JUST LISTED! mediate possession. Hurry! JAGA STOLARSK! 689-4712 | 986-4371 MILADA NOHEL 980-4955 | 986-4371 812 Shakespeare. charmer! 90's! Beautiful 3 bedroom home with 3 bdrm. mort- gage helper. Large corner lot, tots of extras, im- 28 LOOKING FOR THAT SOMETHING DIFFERENT?! Then you must see this terrific rancher. Situated ona huge corner lot, the inside is a MUST SEE! CHEYENNE McDONALD 925-3557 DON KLASSEN 985-8944 3 LEVEL TOWNHOME “CAPILANO COLLEGE” LOCATION immaculate home in generous room sizes in prime location. The rec room wiwet bar is a DOROTHY TRASK 929-5954 . MARCIA CAMERON 929-5542 and sue you for any defi- ciency."” The council issued the warning because of concern over a rash of such courses being offered and which. in many instances, are based on United States examples and practices. These are often significantly different in many legal respects from practices in B.C. and Canada. GREAT RISK Such courses typically claim to teach how a port- folio of real estate may be acquired without any finan- cial investment on the part of + purchaser. Such schemes cannot exist without significant risk toa sellers as well as some parallel risks to purchasers. the council noted, Commenting on the prac- tices involved, Clee explain- ed conventional mortgage lenders will only advance funds if the Joan is ade- quately secured by the real estate involved. The bor- rower is generally expected to provide a substantial down payment which will constitute equity in the property. The reason is that the buyer is unlikely to walk away from a situation where he has invested a substantial sum. PRICE SLASHED Attractive 2 bedroom full bsmt. home with exten- sive updating all on private landscaped fot, 80,000 assumable wilnout qualification mort- gage. HURRY, this one’s hot. 739 East 3rd St. ED HUME 985. 5597. Clee noted down pay- ments in the order of 20 per cent are traditional in Canada but even a 10 per cent down payment lends a certain degree of sccurity to the vendor and to the mor- tgage company. “Over the years payments as low as five per cent have been acceptable where the borrower buys mortgage in- [oo ec surance {0 guarantee mor- tgage repayment in the event of default,"’ Clee added. “In some instances, the seller will carry more financ- ing than is actually required, enabling the purchaser to pocket an ‘instant profit’ and still be able to walk away from his obligations because he still has no equity in the venture."* The impression given is that the buyer can walk without tisk, but that is not a certain- ty, Clee noted. Typically the idea behind these schemes is 10 purchase the property and rent it out with the rental payments applied in payment of the mortgage. If the rent is in- sufficient to pay the mor- tgage, the purchaser might Simply retain the rents until a foreclosure takes place and then walk away. The proceeds of the foreclosure sale may not be sufficient to pay both the first and second mortgages, in which case the loss is borne by the holder of the second mortgage, the origi- nal owner who sold on a “nothing down” scheme. rE ys 986-4371 (24hrs.)| ) — REALTY ‘iD. — BELIEVE IT OR NOT! This 4 level contemporary split is sti! on the market! It's got everything — 4 bedrooms, family room, living recom & playroom, each have a tirepiace — den on main level & sauna. Call for your viewing appointment. BARBARA SHEE 980-0487 201-441 EAST THIRD FIRST OPEN SUN 2-4:30! Excellent price on this nicely decorated 2 bdrm suite. $5,000 down and you can own your first real estate! onOre HARRIS 986-4371 SUNDAY 1-3 °2BR * woodburning fireplace « Sunken living room with vaulted ceilings * Double glazed windows * Large private fot (60x129) ¢ Professionally landscaped DUPLEX © $26,400 gross/annum * View property * Centrally located ROB LeBLOND 985-4666 1561 LYNN VALLEY ROAD LAUREN RUSSELL 986-8843 ED HUME 985- 5597 tra details. ds NEAT—FULL BSMT. HOME This home is well cared for and just move in shape. Good sturdy garage with auto. opener. Upgraded insulation and loads more. Call for ex- CAROLE HARRIS 986-4371 LUXURY TOWNHOME! © Skylights, decks & patios « Sunken living room, fam. room off kiteb 3 bdrm., ensuite bath. ¢ Central tocation, $120’s. S ROB LeBLOND 985-4666 sh VERY UNIQUE CONDO! * Concrete building « Sunken living room s insuite laundry * Security parking * Close to Lonsdale Quay & Seabus ROB LeBLOND 985-4666 NEWS phota lan Smith THIS UNUSUAL aerial shot of an industrial area in North Vancouver gives readers a bird's eye view of the aabanse of heavy industry on the waterfront, west of Second Narrows Bridge and along Main Street.