eLaw - Property & Succession Update│ October 2016 - No. 83
 
 
                                         
                                     
                                     

 

The Law Society of Manitoba
Professional Education and Competence

 
 

     
 

       eLaw Property & Succession                                                      October 2016

In This Issue
Court Quashes Board of Revision Assessment Order: MBQB
Personal Representatives Barred From Seeking Unequal Sharing of Assets: MBQB
Family Members Are Preferred Caregivers: MBQB
Mortgage Rule Changes
Legislative Update
Rent Increase Guideline 2017
Registrar-General Directive and Notice
Recommended Reading
 2016 Isaac Pitblado Lectures
Continuing Professional Development: LSM
Real Property Section Program: MBA
 STEP Programs

 
     
 

Court Quashes Board of Revision Assessment Order: MBQB

In Boeing Canada Operations Ltd. v. Winnipeg (City) Assessor, 2016 MBQB 175, the court quashed an order of the Board of Revision applying a penalty provision under The Municipal Assessment Act to order a one year deferral of a $3,575,000 reduction in the assessed value of property leased by Boeing. Boeing was responsible for paying taxes on the property, but was not made aware of the fact that the property owner had failed to comply with the City Assessor’s request for information needed to reassess the property. As a result of the application of the penalty provision Boeing became obligated to pay in excess of $90,000 in taxes through no fault of theirs. The court rejected the Assessor’s argument that judicial review was inappropriate given the existence of an alternative remedy within the administrative process (an appeal to the Municipal Board). In this case, said the court, where the legislation is silent on the question of an appeal against a decision deferring the reduction in the assessment value only, and where issues of fairness and undue process are raised, the courts are better placed than municipal boards to decide the matter.

 
 

Personal Representatives Barred From Seeking Unequal Sharing of Assets: MBQB

In Evans v. Evans, 2016 MBQB 168, the court dismissed a motion brought by the executrices of the estate of a farm wife who sought leave to amend their mother’s Family Property Act petition (filed prior to death and seeking an accounting and “equal” sharing of assets) to allow an application for an “unequal” division of assets pursuant to s. 14(2) of the FPA. The action came about, said the court, as a result of “a profound and fundamental disagreement” between the deceased and her husband, “as to how their “combined” estates should be left to the next generation.” The wife favoured an “equal” entitlement to the farm property amongst their 11 children, but the husband felt that a larger portion should be left to the three sons who were actively engaged in the farming operations. After reviewing the Part IV provisions and the policy behind them, the court found it was very clear that an appropriate assessment of the equities cannot be made unless both sides of the story can be heard, thus the discretion to vary is lost on the death of a spouse.

 
 

Family Members Are Preferred Caregivers: MBQB

The court consolidated three proceedings concerning the care of an elderly woman in Gorrie v. Manitoba (Director of Psychiatric Services) et al, 2016 MBQB 163, one by the appointed Public Guardian asking for advice and directions, and the other two by her estranged children (a daughter seeking to administer under the fifth and final power of attorney made by her mother and a son requesting an appointment as committee). Although the court found there was “no deficiency in the decision…to appoint the Public Guardian as committee,” it declined to continue the appointment given the competing applications brought by family members. In the court’s view, “where there are competing claims by family members who cared for and were involved in the life of the person under supervision, the court should choose between the family members rather than automatically resort to the appointment of the Public Guardian.” The court dismissed the daughter’s application due to reservations about the validity of the power of attorney, her stewardship of her mother’s financial affairs, and her ability to relate to others. Although there were also concerns about the son’s actions and insensitivities, they were not significant enough for the court to deprive him of the right to act as committee.

 
 

Mortgage Rule Changes

The Minister of Finance announced changes to Canada’s mortgage rules designed to reinforce the Canadian housing finance system and protect borrowers on October 3, 2016. Among other things, the changes standardize eligibility criteria for high-and low-ratio insured mortgages and introduce a mortgage rate stress test for all insured mortgages. They also close a tax loophole allowing non-residents to avoid capital gains tax. The government is also launching consultations on lender risk sharing.

 
 

Legislative Update

The New Home Warranty Act, S.M. 2013, c. 23 and regulation (MR 10/2016), will come into force January 1, 2017. The legislation ensures that all new homes built for sale are covered by a warranty against defects in materials, labour and design, and structural defects, and requires home builders and warranty providers to register. The Consumer Protection Office will administer the new program.

The Groundwater and Water Well and Related Amendments Act, S.M. 2012, c. 27, (except sections 6(d)(i) and (ii), 10(a),12, 14 to 19, 33, 50(2) and (3), and 86(3)(f)), will come into force January 1, 2017. The Act, which received royal assent June 14, 2012, replaces the existing Ground Water and Water Well Act, and makes consequential amendments to The Drinking Water Safety Act, The Planning Act, and The Water Protection Act. Its purpose is to protect groundwater and regulate the construction of wells and aquifers. Further detail can be found in the explanatory note to the bill.

Schedule B of The Municipal By-law Enforcement Act, S.M. 2013, c. 47 was proclaimed in force effective August 8, 2016, (except for s.4(2), which comes into force February 6, 2017). Schedule B gives municipalities the ability to process and resolve parking violations and other contraventions of their by-laws using an administrative penalty scheme that does not involve court proceedings.

 
 

Rent Increase Guideline 2017

The Residential Tenancies Branch has confirmed that the 2017 rent increase guideline has been set at 1.5 per cent, effective January 1, 2017.

 
 

Registrar-General Directive and Notice

This September 26, 2016 Directive and Notice confirm that updated versions of the electronically fillable Discharge (version e7.1) and Mortgage (version e6.1) forms have been approved and are available for download from the Property Registry website. Use of the eForms will become mandatory in December 2017.

 
 

Recommended Reading

What do "Title" and "Marketable" Title Mean? – this paper by Ned Brown discusses why it’s important for lawyers dealing in real estate to understand the meaning of the words “marketable title.”

Why We Don’t Have Twenty-Five Year Mortgages in Canada – this Torys LLP blog post links to a National Banking Law Review article exploring why renewal risk is an impediment to the development of a private label residential mortgage backed securites market in Canada and how this could change.

Taxing the condo flip – this Lawyers Weekly article discusses the potential tax pitfalls of flipping condominiums.

Musqueam Indian Band v Musqueam Indian Band (Board of Review): Supreme Court of Canada Considers First Nations’ Right to Tax Golf Course Based on its Value as Residential Land (The Court) and Supreme Court of Canada Decides Indian Bands Assessing Leased Reserve Lands for Property Tax Purposes Can't Have it Both Ways (McInnes Cooper) – these blog posts discuss Musqueam Indian Band v. Musqueam Indian Band (Board of Review), 2016 SCC 36, in which the Supreme Court confirms that HABU (highest and best use) is a basic principle of Canadian assessment law.

Ontario Land Titles System to Add Risk to Owners – the author of this Slaw post criticizes proposed changes to the Ontario Land Titles Act and argues that the Ontario land titles system is seriously outdated.

No dishonour in estate bankruptcy – this Lawyers Weekly article discusses how an estate bankruptcy can be used to protect matrimonial property and insurance proceeds from creditor claims.

 
 

2016 Isaac Pitblado Lectures

The 2016 Isaac Pitblado Lectures, Pimohtéwin tati‎ mínowastánowahk (Journey to Reconciliation): Lawyers Called to Action, will examine the Calls to Action issued by the Truth and Reconciliation Commission and explore the role of lawyers in renewing relationships between Indigenous and non-Indigenous people in Canada. The lectures will be held November 4-5, 2016 at the Fort Garry Hotel.  See the program agenda for further details.

 
 

Continuing Professional Development: LSM

Mortgage Sale and Foreclosure: Two Perspectives - Russell Davidson (LTO) and Albina Moran (TDS LLP) will offer different perspectives on the complicated mortgage sale and foreclosure process at this lunch session on October 26, 2016. Register soon to attend in-person or by tele-conference.

Hot Topics in Wills and Estates (Winnipeg session) – Put your name on the wait list to attend this sold out program dealing with current issues facing wills and estates practitioners. Topics to be considered include estate planning for common-law couples and blended families; family farm transfers; and educating clients on unintended distributions. The program takes place from 1:00 to 4:00 pm on November 8, 2016 at the Law Society classroom.

Land Titles eForms 101 – Join Registrars Davidson (LTO) and Terra (Property Registry), and KK Pinkowski (Aikins) as they walk you through the new discharge, mortgage, caveat and transfer eForms now in use at Land Titles. Register soon as the first of two Winnipeg dates, December 6 (pm) has now sold out and few spots are remaining for December 7(am), 2016. Third program date has now been added for Brandon and will take place December 16 (pm) at the Riverbank Discovery Centre.

Plain Language Communication – learn to communicate more effectively using plain language at this lunch program to be held November 23, 2016 at the Law Society classroom. Registration discounts apply to students and teleconference participants.

NEW Language Rights Rule – This program will examine ethical and professional obligations under the new Code of Professional Conduct rule on language rights and offer practical suggestions for both solicitors and litigators to meet those requirements. It will be held at the Law Society classroom on November 24, 2016.

You are Not Alone: The Lawyer’s Guide to Dealing with Anxiety – learn how to recognize and manage anxiety at this highly recommended program developed specifically for Manitoba lawyers by the Anxiety Disorders Association of Manitoba. Take advantage of our reduced rate and register to attend on November 29 or 30, 2016, from noon to 1:30 pm.

 
 

Real Property Section Program: MBA

The New Home Warranty Act - the next meeting of the Real Property section will be held November 17, 2016, from 5:00-6:30 pm in the Pitblado LLP boardroom. Representatives of the Consumer Protection Office will discuss the rules and requirements of the new mandatory program under the Act and regulation coming into effect January 1, 2017.

 
 

STEP Programs

Upcoming programs offered by the Winnipeg branch of the Society of Trust and Estate Practitioners (STEP) include: Trust and the 21 Year Rule (October 25, 2016); Owner-Manager Compensation (December 06, 2016); Post-Mortem Planning (January 24, 2017); Powers of Attorney and Inherent Dangers of Ill-Advised Schemes (February 21, 2017 ); The Role of the Public Guardian and Trustee (March 21, 2017); and Developments in Canadian Pensions (May 16, 2017). To register, or for information on how to become a member of STEP, check their website.

 
 
 
 
ISSN 1916-3916
 
 
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
 
 
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