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REAL ESTATE
REAL ESTATE Homes you can’t move into until the owners die
by Carlito Pablo
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Ahomeowner 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 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 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”.
“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
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.
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Federal Government To Reverse GIS Clawback with One-Time Payment
Since before the election, New Democrats have been hearing from seniors who have been seriously hurt by the Liberal government’s unacceptable decision to claw back the Guaranteed Income Supplement (GIS) from seniors who received emergency pandemic supports such as CERB. The NDP brought the issue directly to the attention of the Ministers before the election, sadly they just ignored it. For months, we continued to call for the government to fi x this injustice immediately by excluding pandemic benefi t benefi ts in the calculation of GIS eligibility. As MP I have raised this directly with the Minister, in the media including at a press conference in October with affected senior citizens and advocates, and repeatedly in Parliament. In its November Fall Economic Update, the Liberals committed to a one-time emergency payment, but few details about the payment were released and seniors were told that they would have to wait up to six months, until at least May 2022, before this payment could be provided. That long delay has caused signifi cant harm to Canada’s most vulnerable seniors. I am so glad to report that the NDP’s work to advance the voices of the most vulnerable low-income seniors have won the day. Through negotiations, the Liberal government has also fi nally agreed to speed up payments for seniors. Specifi cally, the timeline for the one-time payment will be moved up to April 19.
Here are the details regarding the One-Time Grant for GIS recipients who received pandemic benefi ts.
- Eligible seniors will receive a payment equal to the annualized reduction of their GIS/Allowance payment.
- Payments will be issued on April 19, 2022 and there is no need to apply. Service Canada will automatically identify the eligible recipients and make the payment via direct deposit to the vast majority of individuals or by cheque if they have not signed up for direct deposit.
This is a major victory for the most vulnerable senior citizens and I believe that this relief will literally save lives. I want to take a moment to thank the many seniors and advocates, like the 411 Seniors’ Society and the Kettle, who have been in touch with my offi ce to speak up about the shameful decision that the Liberal government made to cut the GIS support. It should never have happened. New Democrat advocacy for low-income seniors will not stop here. One lesson that the government should have learned from the pandemic is that low-income seniors, those who rely on the GIS, cannot make ends meet. That is why they have to supplement their income with additional work in retirement. To that end, I will keep pushing for the NDP’s proposal for a guaranteed livable basic income so that seniors will never have to suffer the indignity they had to endure during the pandemic.
JENNY KWAN, MP Constituency Office
2572 E Hastings St, Vancouver (appointments mandatory during pandemic) | Email: Jenny.Kwan@parl.gc.ca | Tel: 604-775-5800
