Canadian Funding Corp Reviews CMHC Sustainability Reports

Canadian Funding Corp Reviews Sustainability, August, 2009 – The Government of Canada today marked the start of construction of the Green Dream Home demonstration project, an energy-efficient and environmentally friendly home to be built in Kamloops.

The home will be constructed by the Canadian Home Builders’ Association Central Interior (CHBA CI), in partnership with Thompson Rivers University (TRU), as part of Canada Mortgage and Housing Corporation’s (CMHC’s) EQuilibrium™ Sustainable Housing Demonstration Initiative, which encourages builders and developers to build the next generation of sustainable housing in Canada.

Cathy McLeod, Member of Parliament for Kamloops – Thompson – Cariboo, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for CMHC, was joined today by Darryl Caunt, President, CHBA CI, and Dr. Ulrich Scheck, Provost and Vice-President Academic, TRU, along with sponsors and supporters in the ground-breaking of the first demonstration home of its kind in British Columbia.

“The Government of Canada is pleased to work with the private sector to develop such innovative homes. We congratulate CHBA CI and TRU on their winning design/concept and commitment to environmental responsibility,” said MP McLeod. “The Kamloops Green Dream Home gives people in this region an opportunity to see first-hand how we can create beautiful, healthy homes, conserve energy and resources, and reduce pollutant emissions.”

The Kamloops Green Dream Home will integrate optimal solar orientation, energy efficiency and renewable energy systems into its design and construction, in addition to using natural materials with low levels of pollutants. To reduce water use, rainwater will be captured and drought-resistant native plants will be used on the site. The Green Dream Home will be built primarily by TRU students as part of their training program.   Once completed, the home will be open for public tours and then raffled off to raise funds for a local charity.

“We are proud that this project will showcase leading innovations in home energy efficiency and environmental responsibility for our local community, and serve as an example for similar projects across the country,” said Darryl Caunt.

“The Green Dream Home is an amazing opportunity for Thompson Rivers University students and faculty to be involved in a project that integrates all the elements that define TRU as the university of choice for environmental sustainability, career success and student engagement,” said Dr. Scheck. “The practical experience gained by participating in this initiative will enable our graduates to pursue careers as future leaders who will help Canadians develop and live in sustainable communities.”

The Green Dream Home is one of 15 projects that won CMHC’s national EQuilibrium™ sustainable housing competitions since the initiative was launched in 2006. All EQuilibrium™ projects will be open to both the general public and professional audiences for tours, and then monitored for performance by CMHC for one year, once occupied.

CMHC’s EQuilibrium™ Sustainable Housing Demonstration Initiative provides a new approach to housing in Canada, representing a fundamental change in the way Canadians think about their homes. It strives to balance our housing needs with environmental concerns. It brings together — under one roof — the principles of occupant health and comfort, energy efficiency, renewable energy production, resource and water conservation, and reduced environmental impact.

By Brian Madigan LL.B.

Ordinarily, one would think that chattels are not included in an agreement of purchase and sale concerning real estate. And, most of the time they would be right.

However, this is not the case when we are talking about the sale of a business. Under the Real Estate and Business Brokers Act the term “real estate” is defined to include real property, leasehold and business whether with or without premises, fixtures, stock-in-trade, goods or chattels in connection with the operation of the business.

Bob operated a small electrical contracting company. After 25 years in the business, he felt that it was time to retire. In addition to the 10 trucks all clearly marked “Bob’s Electric”, he had recently purchased a minivan. Bob used this vehicle to get to work. He acquired it right at the end of the year so that he could maximize the depreciation. Bob listed the business and negotiated an excellent price.

You might imagine his surprise when it came to the day of closing and his lawyer had prepared a Transfer of the minivan for him to sign. Bob said it was not part of the deal. There was nothing about the minivan in the agreement of purchase and sale. This was true!

His lawyer reviewed the agreement and said that the definition of “real estate” when it concerned the sale of a business included chattels. Since the minivan had been acquired and used in connection with the business, no matter how remote this connection might be, the minivan was deemed to be part of the deal. The obligation rested upon Bob to clearly exclude it, if that was his intention. It did not have to be written into the agreement to become part of the deal. Silence meant the minivan was part of the deal.

So, on closing the purchaser received an assignment of the lease, the stock-in-trade, the fixtures, the 10 trucks, and to his surprise, Bob’s brand new minivan that he drove to work.

In addition, there is one more little problem here worth mentioning. Bob was attracted to the minivan because of the zero percent financing spread out over five years. You guessed it! The agreement of purchase and sale conveyed the title to the assets “free and clear of all encumbrances”. So, out of the funds due on closing, Bob had to pay off the loan on the minivan in order that the purchaser would get clear title.

This little glitch arises in many business transactions, but most of the time neither the buyer nor the seller are aware, and no one asks about the minivan that the owner uses to get to work. There was some good news however. Bob had been thinking about buying a Mercedes.

http://ontariorealestatesource.blogspot.com/2009/07/dont-sell-minivan-by-mistake.html

reviewed by Moishe Alexander, canadian funding corp CEO