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October Preferred Client Update

Blog by Kim Twohey | October 2nd, 2018


I saw an ad saying a real estate professional will buy my house if it’s not sold in 90 days. 
Should I Be Wary?

Wary might not be the best word, but you do need to make sure you understand the details of the offer. This type of offer is a guaranteed sales agreement, and while there is nothing illegal or wrong with a real estate company offering this kind of arrangement, it is rarely the best option for consumers.

In a guaranteed sales agreement, a real estate brokerage agrees to buy a piece of real estate from a seller at a previously agreed upon price, if it hasn’t sold to someone else before a certain date.

Only real estate brokerages can offer these agreements, not individual real estate professionals.

What sellers need to keep in mind in these arrangements is that the real estate brokerage wants to minimize its risk.

For example, it’s rare that a guaranteed purchase price will be based on the property’s listing price or the property’s market value. In most cases, the brokerage calculates the guaranteed purchase price using a formula where legal fees, carrying costs, and commission on the resale are subtracted from the purchase price. This minimizes the brokerage’s risk, but it can also greatly reduce how much that seller receives for their home.

Brokerages that offer guaranteed sales programs are required to have policies for those programs. Those policies should include how the brokerage sets the guaranteed sales price and who is in control of the property’s listing price during the listing period; it may not be the seller. It’s not unusual for a guaranteed sales agreement to include a clause that requires a seller to lower their listing price during the term of the listing.

Make Sure You Are On The List By Participating In The 2018 Provincial Enumeration

Per section 21 of the Election Act, Elections Alberta is required to conduct an enumeration, prior to the next general election, to ensure that the voter’s list is up-to-date. Enumerators will begin visiting homes across Alberta, starting on September 8, 2018. 

There are many benefits to updating your registration. By providing your information to the enumerator, your name will appear on the voter’s list when you go to vote in 2019; and, it also ensures that you will receive both a “Where to Vote” card in the mail – and that you receive faster, more efficient services at the poll.

To be eligible to vote, you must be:
-  a Canadian citizen;
-  at least 16 years of age*; and,
-  ordinarily resident in Alberta.

Enumerators are also collecting information on future voters (16-17 year olds), who may register if they meet the other criteria above. They will be added to the voter’s list upon their 18th birthday. 

Online and call centre registration will be available. The phone number for the Elections Alberta Enumeration Call Centre 1-877-422-VOTE (8683)

In order to register online, you must have an Alberta Driver’s License number or Alberta Identification Card number. For more information, visit www.elections.ab.ca.