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Brian Madigan LL.B.

Business Partners ~ The Key to Success

Business Partners ~ The Key to Success


By Brian Madigan LL.B.


Many entrepreneurs and small business owners frequently search for the key to success. The answer is often quite simple: get the right business partners.

There are two types of partners:

1) external, outside partners, and
2) internal, inside partners.

The first type is easy. Most people get this. These are arrangements with suppliers, creditors and customers. These are merchandising groups, franchisors, and even competitors. Here, the advantage is to structure a business alliance to your advantage.

The second type of partner is a true partner. This is someone on the inside who shares in the risks and rewards in the business with you. This is someone who is just as worried as you about "meeting payroll".

The advantage with a good partner is not only that you allocate the risks, you can strategically improve the business because each of you will have different skill sets. You will concentrate and specialize in some aspect of the business you enjoy. Similarly, the partner will have other and different interests.

The essential component is the ability to delegate and specialize that makes partnerships attractive. However, you can appreciate that the wrong partner could be a disaster. In the vast majority of cases, good partners will make a valuable and beneficial contribution to the business.

Actually, finding the right partners in any small business is the key to success, and allows a small business to grow into a medium sized business.

Most small businesses can divide their operations into three separate activities:

1) sales,
2) production, and
3) administration.

It's difficult to find someone who is equally good at all three. Typically, the salesman will be a disaster when it comes to administration. And, the person who loves accounting, human resources and dealing with government agencies will not likely be good at sales.

Production is exactly what your particular business is all about. So, whether you are a lawyer, accountant, doctor, hairdresser, baker, travel consultant, or manufacturer, something in your organization needs to be produced so that you can make money. It's not sales, and it's not administration, that is important here.

However, let's not underestimate the significant contribution of sales and administration to the overall success of the business. There are lawyers in law firms that do nothing more than bring in work. There are others that handle the files, and still others who oversee the entire law firm.

So, some advice for a small business that wants to grow: find some good partners, delegate, and specialize.

And, you will soon find that your small business has become a big business.

Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com

Steps in the Process of Preparing a Survey

Steps in the Process of Preparing a Survey


By Brian Madigan LL.B.

When an Ontario Land Surveyor prepares a Surveyor's Real Property Report, there are certain basic steps that must be followed:

Research

· a search of title of the subject lands


· a search of title of the abutting properties


· a search of all pertinent encumbrances registered against the title of the subject property


· a search of all pertinent encumbrances registered against the title of the abutting properties


· a search of other surveyor's offices to obtain all plans relating to location of boundaries of the subject property


Field Inspection, Observation and Measurement

· a field survey to determine the actual dimensions of the property, the location of improvements and the setting of corner markers

Review of Research, Measurements and Analysis

· an analysis of research and field data


Graphical Presentation

· the preparation of the plan illustrating the results of the field survey and the title research

Written Opinion

· the preparation of a written report providing the surveyor's opinion about any contentious issues that may have been found during the survey

· execution of the document by signing the original and affixing the seal


Now, you have an original signed and sealed Surveyor's Real Property Report consisting of two pages, namely the graphical representation and the opinion.

Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com

October 2009 Mortgage Rates

October 2009 Mortgage Rates


By Brian Madigan LL.B.

Interest rates are at an all time low. Have a look at the posted rates and the preferred rates. The Bank of Canada prime is 0.25%.

Now, might be the time to lock-in, or at the very least secure a pre-approved mortgage commitment.


TERM.....POSTED.....PREFERRED

6 Mos........ 4.60%..... 3.85%
1 YEAR....... 3.75%..... 2.55%
2 YEARS..... 4.05%..... 3.05%
3 YEARS..... 4.60%..... 3.59%
4 YEARS..... 5.29%..... 4.09%
5 YEARS..... 5.78%..... 4.19%
7 YEARS..... 6.60%..... 5.30%
10YEARS..... 6.70%..... 5.40%




Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com

The Four Basic Types of Survey in Ontario

The Four Basic Types of Surveys in Ontario


By Brian Madigan LL.B.

Ontario Land Surveyors are called upon to prepare four basic types of survey:



"1)Plans of Subdivision (M-Plan, Registered Plan, Condominium Plan) Upon registration in the Land Registry Office, these surveys divide property into lots or units and set out boundaries for the first time, after appropriate approvals have been obtained.

2)Reference Plans (R-Plans) These are deposited plans and graphical representations of descriptions, as well as representations of divisions of land under the Planning Act.

3)Plan of Survey This may be a reference plan, an undeposited plan in the form of a Surveyor's Real Property Report (SRPR), or a standard survey plan.

4)Surveyor's Real Property Report A Surveyor's Real Property Report (SRPR) is a legal document that clearly illustrates the location of all visible public and private improvements relative to property boundaries."*

One of the principal purposes of a survey is the division of property. Simply put, without a survey, property remains as one large parcel. It is only with a proper survey that it can be divided into smaller units.

So, let's start out with the process. A farm in the close suburbs may be comprised of 100 acres along a major roadway. It may have street frontage on two sides. If it were the entire concession lot, it would be exactly 200 acres and have four streets as boundaries. The dimensions would be one and a quarter miles by one and a quarter miles. Over the years, this large farm may have been broken into two 100 acre farms or even four 50's.

The next item is a large 150 year old farmhouse and small barns and outbuildings. When setting out to develop the property, the first item to check will be #3 a Plan of Survey. Does it show the boundaries and does it show the buildings? If matters are to proceed, a new and current survey will have to be prepared. This will be #4, the Surveyors Real Property Report. It will contain two pages:

1) a graphical representation of the property, and
2) an opinion from the surveyor.

The next stage will be to carve up the property into two pieces. Let's assume here that one acre is to remain with the farmhouse and to continue as a residential property, and the remaining 99 acres are to be developed.

Now we need an updated survey. So, we need to have a graphical representation that can be used to apply for a division of the lands into two parcels, one 1 acre and one 99 acres.

A surveyor will utilize the #4 Surveyors Real Property Report as the basis, and outline the two parts:

1) Part 1, being one acre with a farmhouse,
2) Part 2, being ninety-nine acres.

This particular survey will be taken before the Land Division Committee or the Committee of Adjustments, depending upon which committee has jurisdiction for severances in that area.

This particular survey is not "deposited". The term deposit is a reference to the fact that the survey might be "filed" or registered in a particular Registry Office. In this case, the survey is submitted to the municipality to go through the land severance process. At this point, there is no need for registration.

Let's assume that the severance is granted.

The surveyor then prepares a Reference Plan, known also as an R-Plan. It is taken over to the Registry Office to be filed. Upon the payment of the prescribed fee, the R-Plan is "deposited" in the office as a reference plan, or at least a plan that can be "referred to", if need be. The term "registered" is a term of art in the conveyancing business, so a similar but different term was required, hence: "deposited".

For ease of location within the office, it is given a number, ie. 241 (the next number in series at that office).

Now, we have a legal description that could be used for future conveyances, two parcels as follows:

1) Part 1, Reference Plan 241 (being one acre with a farmhouse),
2) Part 2, Reference Plan 241 (being ninety-nine acres).

So far, the farmer still owns the entire 100 acres. Nothing has happened yet. There are three choices in terms of conveyance:

1) the entire 100 acres using the old property description,
2) the one acre parcel, using Part 1 R-Plan 241, and
3) the ninety nine acres, using Part 2 R-Plan 241.

Actually, there's one more possibility and that is to use the new description to convey the entire 100 acre parcel. So, that would be Parts 1 and 2 R-Plan 241.

But, remember even though there has been an approval of the severance, there is no severance until there is a conveyance. The "approval" is of limited duration. It will expire in 12 months unless it is acted upon.

That means the farmer must convey either Part 1 or Part 2 separately to a third party. Upon registration of the conveyance which has the consent of the appropriate approving authority attached, the property consisting of 100 acres will be severed into two parcels, one acre and ninety-nine acres.

And, when it comes to dividing up the 99 acres, a plan of subdivision (#1) or M-Plan will be used.

* source The Association of Ontario Land Surveyors

Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com

Ontario Land Surveyor's Real Property Report

Ontario Land Surveyor's Real Property Report Explained


By Brian Madigan LL.B.

A Surveyor's Real Property Report is a graphical representation demonstrating the location of all visible public and private improvements in relationship to the boundaries of the property.

It is a plan or illustration of the various physical features of the property together with a written report outlining the surveyor's opinion.

Usually, page 1 of the document is the plan and page 2 is the opinion.

The Surveyor's Real Property Report can be relied upon by the purchaser, the seller, the lending institution, and anyone else as an accurate representation of the property.

What is Included in a Surveyors Real Property Report (SRPR)?

· the legal description of the property.


· the address of the property.


· the dimensions and locations of property boundaries.


· the location of all buildings relative to property boundaries.


· the location of adjacent properties, roads, lanes, etc.


· the location and description of all pertinent improvements located on the property, along with the setbacks to the property boundaries. The projections of overhangs and eaves may also be noted.


· the type and location of any land-related encumbrances or interests on the property title including utility rights-of-way, roadways, neighbour's rights-of-access, etc.


· the location of survey bars marking the property corners.


· a note indicating for whom the plan is prepared.


· certification by an Ontario Land Surveyor.


· the Association of Ontario Land Surveyors' Plan Submission Form.


In a real estate transaction everyone is looking for a survey. But, the actual survey is the surveyor's opinion and that is "time sensitive".

A current survey means NOW.

An up to date survey means any old survey where there have been no changes. The problem here is how would you know that unless a surveyor expressed a current opinion.

So, what is a survey worth? Twelve hundred dollars is the standard cost for an uncomplicated survey of a reasonably sized residential lot. Or, ten cents is the cost of photocopying an old one.

However, you should remember that you might not be able to simply photocopy an old survey. Do you have permission? Is this an improper conversion and use of the survey contrary to the provision of the Copyright Act?

And, what was contained in the agreement? Did you ask the vendor to provide a survey of the property. That's available from the Registry Office for one dollar if the property is contained within a registered plan of subdivision.

Maybe you asked for a building location survey? That's better, but it could be old? Also, the vendor better have an actual survey. That means one signed by and sealed by an Ontario Land Surveyor. Forget about the ten cent photocopy! That's not good enough. Would you accept a photocopy of a twenty dollar bill as payment?

The up to date, or current building location survey is really what you are looking for. This is the Surveyors Real Property Report, two pages, the plan and the opinion, signed and sealed.

Yet many transaction are completed without such a document.

Please be careful and if you are a buyer know what you are asking for, and if you are a seller, know what you have in your possession.

Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com