REAL ESTATE
Homes you can’t move into until the owners die
A
by Carlito Pablo
homeowner in North Vancouver has listed his property for $1.6 million. However, the man does not plan to leave when his house sells. The owner wants to continue living at his 1281 McBride Street home until he dies. Or until he moves to a seniors’ facility for good. How is this possible? The Macdonald Realty listing explains that this can be done through a “life estate” registered on the property’s title. What is a life estate? Vancouver lawyer Trevor Todd specializes in estate litigation. Todd’s website has a page explaining the concept, noting that life estates, also known as life interests, are a “well-established part of estate planning”. “The owner of a life estate (‘the life tenant’) has the right to occupy, use and deal with real and/or personal property for his or her lifetime,” the page explains. “When the life tenant dies,” it continues, “the remaining interest in the property then passes to the next person entitled, historically named the ‘remainderman’.” After the life tenant dies, the remainderman “enjoys full ownership of the property”. “During his or her lifetime, a life tenant
Perhaps this is what the market has come to: buy now and move in later… – realtor David Hutchinson
This home at 1281 McBride Street In North Vancouver is on the market for $1.6 million, but it is being sold as a “life estate”, which means the owner gets to live there until they die or move out.
enjoys the right to possession and management of the property,” the site states. As well, a life tenant “must treat the property in such a manner that it is not damaged and does not deteriorate, beyond reasonable wear and tear”. Life estates may be created through a number of means. One is through a will. Another is with a land transfer. “Historically men of means, by their
DO YOU
LIKE TO
WALK?
The Jewish Seniors Alliance Friendly Visitor service is adding a walking option for seniors! If you are a senior who enjoys and benefits from walking, our volunteers are ready to walk with you!
JSALLIANCE.ORG
To sign up or to find out more, please contact Charles Leibovitch at Jewish Seniors Alliance. CHARLES@JSALLIANCE.ORG / 778-840-4949
wills, left their wives life estates in their property,” the site notes. The listing for the North Vancouver home indicates that the seller is 73 years old and plans to remain a resident and pay rent of $2,000 per month. He will also be “responsible for all repair & maintenance of the home, insurance costs and the utilities portion (2021 = $1,827.40) of property taxes”.
MARCH MADNESS
SALE PRESSURE CANNERS VACUUM SEALERS AND BAGS GLASS PACKAGING BEER BOTTLES ORDER NOW! Online at wellscan.ca Phone: 604-420-0959 Visit: 8705 Government St. Burnaby
Jewish Seniors Alliance “Seniors Stronger Together”
8
THE GEORGIA STR AIGHT
MARCH 3 – 10 / 2022
while stock lasts | no raincheques free shipping (conditions apply)
“Life estate will be released for owner for possession upon seller’s death or upon moving out of the home permanently (to a care facility for example),” the Macdonald Realty listing states. Financing may be challenging. “Note, lenders will not provide a mortgage with a Life Estate on title. Seller may finance over 10 years only for qualified buyer,” the listing notes. The text points out that 1281 McBride Street is listed below market value. The property has a 2022 assessment of $1,438,900. The four-bedroom and twobath rancher sits on a huge lot with a frontage of 68 feet and depth of 108 feet. Vancouver realtor David Hutchinson brought the North Vancouver listing to the Straight’s attention. The Sutton Group–West Coast Realty agent has been working with a couple looking to buy their first home, and they asked him if the life-estate offering was a good deal. “Perhaps this is what the market has come to: buy now and move in later, possibly much later,” Hutchinson said. His clients didn’t buy the property. “I think they could consider this property if the seller allowed them to live in the property also,” Hutchinson said, in jest. “Or at least have weekend sleepovers.” Listing agent Julia Stauffer, of Macdonald Realty, told the Straight that her client has received legal advice about the life-estate option, which she said “gives him the most security in being able to stay”. “It’s him trying to be creative in something that he’s looking to do,” the realtor said, noting that her client has owned 1281 McBride Street for about 20 years. And the owner is, generally, healthy. “He’s not infirm in any way,” Stauffer said. The agent noted that the listing presents a “very long-term option for an investor. It comes down to someone either having the capital and be willing to invest or to accept my vendor’s financing, which is quite steep,” she said. Stauffer said that the seller is offering reasonable interest. However, since it’s going to be a 10-year term, the financing makes for an “expensive proposition”. “He’s doing what he wants to do and I’m supporting him,” Stauffer said about her seller. g
