In This Issue

1) Your Opportunity to be in a Canadian Best Selling Book

2) Real Estate Market Fundamentals Update

3) Special Audio Download-- Canadian Economy Update

(Ben Tal, CIBC World Markets)

4) Changes to the Alberta Rent Control Legislation

5) Tales from the Legal Trenches

6) Final Thoughts

Fundamental Shifts In Market

Welcome to the May edition of the Canadian Real Estate Insider. We want to welcome all the brand new members to our newsletter and the inner circle of the unbiased Canadian Real Estate market fundamentals. With April showers bring May flowers... and as the temperature and the Real Estate market warms up it is even more important now to listen to unbiased, fundamentally based information. Make sure the person you are listening to is qualified to give you unbiased info.

Once again this newsletter is jam packed with key research and numbers that will affect your portfolio. Make sure you read right to the bottom of this newsletter as you do not want to miss any of the information and you'll find additional bonus links we've included for you so you're even more well informed.

1) Your Opportunity to be in a Canadian Best Selling Book

Calling all Real Estate success stories. Here is a unique opportunity for you to be included in an upcoming Canadian best-selling book. It will be the details of Success Stories that real estate investors have created across the country. Whether it be your first piece of real estate or your 200th, it doesn't matter. All that matters is that you're proud of your story and you learned from it. We'll detail the lessons you’ve learned along the way so that others can follow in your footsteps. You don't have to be a professional writer either, we'll take care of polishing the story, you just provide the details!

Imagine the impact it will have if your story is chosen to be highlighted in a Canadian Best-Seller: with your bank, your potential Joint Venture Partners, your family, your friends. It is a celebration of the actions you’ve taken. To read all the detail and to submit your story click here:

============ REAL ESTATE EDITORIAL =============

2) Real Estate Market Fundamentals Update

Great news, Don Campbell and the Real Estate Investment Network's research team has been in full gear, and are proud to announce, for immediate release, the Top 10 Investment Towns. THis year's edition is more detailed than ever before with over 90 pages per Report. To find out more of the details click here

As the Canadian economy continues to heat up, the Canadian housing market has gotten off to an equally hot pace. This continuing trend has been predicted by our research staff over 6 months ago, and was not a surprise to the Members of the Real Estate Investment Network. But to those who don't follow our research, these market increases are surprising, even to some so called market experts, once again proving that un-biased research is critical.

A quote from Royal Lepage

"The combination of resilient consumer confidence and moderately low interest rates and improved affordability across most of the country led to a greater-than-expected actived during the typically slower first quarter," the report from Royal LePage stated.

Survey of Canadian Average House Prices in the First Quarter 2007

Standard Two Storey

Atlantic....... 176,750 (1.7%)

Montreal....... 338,857 (3.2%)

Ottawa......... 294,667 (6.2%)

Toronto........ 489,889 (4.7%)

Winnipeg....... 220,714 (12.5%)

Regina......... 159,500 (9.3%)

Saskatoon...... 257,500 (36.2%)

Calgary........ 411,456 (27.4%)

Edmonton....... 384,750 (54.4%)

Vancouver...... 837,500 (10.5%)

Victoria....... 418,000 (4.5%)

National....... 378,148 (11.8%)

Before you blindly go out and invest based just upon the market price increases, make sure you take a holistic view of the market. The average price growth is a result of a number of economic fundamentals you need to pay attention to. And if house prices are skyrocketing, but the fundamentals aren't proven to be true, you have a market that is filled with speculation. These are the fundamentals you want to check before investing into a market:

1) Mortgage Interest Rates

2) Net Wealth Effect (Disposable Incomes, Median Incomes, Employment Rates, Housing Affordability Index)

3) Increased Job Growth & In-Migration

4) Real Estate Doppler Effect

5) Local Regional & Provincial Political Climate

6) Critical Infrastructure Expansion

7) Increased Costs of Labor & Materials

8) Area Gentrification & Renewal

9) Maximizing Value and Zoning Opportunities

10) Renovations And Sweat Equity

11) Speculation & Rumors

Once you study all the fundamentals that drive a Real Estate market, predicting future price increases becomes a lot simpler and it turns you from a speculator (constantly chasing the market) into a sophisticated investor. For example, if you notice Real Estate values increasing while the average income, job growth and population are decreasing, you can immediately tell that there is speculation in that marketplace. These speculative investors drive up the values without the corresponding economic fundamentals in place, which inevitably leads to a correction.

It is not that difficult to ensure you are not getting caught up in hype and Rumors - simply follow the guidelines of the REIN™ Property Goldmine scorecard. It tells you what indicators to watch, and where best to get the information on ANY city, town or region in the country. At the upcoming ACRE System program in Calgary we will be going through, in detail, each one of the economic fundamentals (updated for June 2007) and how you can use this tool to identify your areas of opportunity. In fact, we will be releasing a major research study into the Canadian real estate markets that our research team is just completing.

If you would like to attend this event, and be one of the first to cut through the frenzy surrounding today's Canadian real estate markets, click here:

* * * * * * * * * * * * * *

Further insights into the Canadian housing markets... New Housing Price Index has just been released;

The New Housing Price Index is compiled by Statistics Canada and is used by sophisticated investors to see how RESALE homes will be increasing in value in the near future. That's right, we use this 'New Home' indicator to help identify where older properties are poised to go in the coming six months. New home sale prices have a direct effect on the surrounding area's re-sale homes, but have about a 6-month lag. We look at the ripple effect that new housing prices have on re-sale property values and can extrapolate what direction re-sale prices will be moving and by how much.

For instance, you can see how this reflects the growth in average sale price as indicated above. Analyzing the fundamentals is key to making a sophisticated investing decision and not getting caught in the 'emotional guessing game'. It is sad to see those people (including so called real estate gurus) who said in the last 2 years that the Alberta real estate market was over. If anyone was foolish enough to listen to these "Chicken Littles" they would have missed out in a very predictable (and very dramatic ) increase in their net worths. The same is true today; the indicators are still there (despite the major jumps recently) that we will be enjoying a 5 - 7 year upward run (minimum) in the Alberta Marketplace. Many will still sit on the sidelines, touting that it is too expensive, but that is only because they don't truly understand what the economics are supporting the market.

So, while you take action, and make a big difference in your portfolio, they will once again miss out on AMAZING gains, all because they didn't follow fundamentals, and you did! Remember, we don't sell real estate, so we don't have a vested interest in whether you buy or don't buy. Our job is to simply inform you of the un-biased research behind the market.

By comparison across the country, these are the New Housing Price Index numbers for Feb 2006 to Feb 2007:

1997 = $100, growth from previous year (in brackets) - Feb 2007

Canada...................... 142.0 (8.9%)

Halifax (N.S.).............. 130.4 (4.1%)

Montréal (Que.)............. 147.7 (4.0%)

Ottawa (Ont.)............... 158.9 (3.0%)

Toronto and Oshawa (Ont.)... 137.3 (3.6%)

Hamilton (Ont.)............. 142.0 (5.2%)

London (Ont.)............... 132.8 (4.9%)

Kitchener (Ont.)............ 136.8 (3.9%)

Winnipeg (Man.)............. 144.5 (8.7%)

Saskatoon (Sask.)........... 138.0 (8.3%)

Calgary (Alta.)............. 212.2 (30.3%)

Edmonton (Alta.)............ 177.5 (22.4%)

Vancouver (B.C.)............ 112.7 (6.5%)

Victoria (B.C.)............. 117.7 (3.7%)

Fundamental investing ALWAYS makes you look like a genius - emotional investing gives you quick highs, but also quick lows. Well done on your focus!

And be extra cautious of people who tell you they are experts in the market. There are lots of so-called gurus and experts coming out of the woodwork right now, but when you look behind the curtain on them, they often have a real estate project to sell, right after their workshops. Hmmmm, makes you wonder why they're selling to you if they believe in the market so much, eh?!?

Here is a special Audio from Don R. Campbell with more details on the reality of what's occurring in that industry right now and what makes unbiased research so important:

3) Special Audio Download-- Canadian Economy Update

(Ben Tal, CIBC World Markets)

Newsletter Subscribers, you are in for a treat. At a recent REIN™ Workshop the members were once again privileged to hear from one of Canada's most brilliant economists, Mr. Benjamin Tal. The response from his latest presentation at the Ontario REIN™ workshop drew a standing ovation; you'll want to hear his views on the dollar, the Canadian economy and the importance of paying attention in today's market.

You will be very interested in hearing his views and the term that he is using: "Canada is entering into a Mega-cycle of energy prices". We have decided to upload the audio from this presentation so all newsletter subscribers can listen to the message more than once (the message was that important). Plus Benjamin also included a special report he recently wrote talking about the differences between the US and Canadian Mortgage markets. Click here on the following link to hear the truth about Canada's economy:
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4) Changes to the Alberta Rent Control Legislation.
You can make a difference. Click here for the latest on this issue from Don R. Campbell

F5) Tales from the Legal Trenches
By Barry McGuire

This month's tale is titled:
IS TIME OF THE ESSENCE?

This phrase appears in almost all real estate contracts, but what does it mean?

On a strict interpretation-basis, it means that if the contract has certain timing requirements, then everyone must meet those timing requirements exactly or be offside the contract. Over the years when buyers and sellers have disputed the timing aspect of a contract, courts have taken many positions on whether this clause should be strictly enforced.

In a recent case our REIN™ member was working on two transactions at once. Seller #1 had made it very clear that there would be no extensions to the contract, and if our member didn't close on time the deal was dead. Seller #2 made no comment on whether he was worried about time. Both closings were difficult with sub-prime lenders and insufficient time to close. At the closing day, Seller #1 who said he wouldn't extend the time in fact did extend. Seller #2 (previously silent) said, "You didn't pay me on the closing day, the deal is dead and I'm taking your deposit". Our member was only one day late in being ready to pay. Could the seller actually do that?

We quickly reviewed the cases and found that the mishmash of legal opinion across the country has been clarified by a recent judgment of the Ontario Court of Appeal. Following is a summary of the facts and the decision.

On Sept. 18, 2003, Loblaw Properties Limited signed an agreement with five individual vendors to purchase a parcel of land near Fergus, Ont. for a supermarket. The agreement called for a deposit of $75,000 to be paid by Sept. 23. It also contained two clauses stating that "time shall be of the essence" of the agreement. (This type of clause appears in virtually every Agreement of Purchase and Sale for new and resale homes, and for commercial properties as well.) Through inadvertence by Loblaw, the deposit was not delivered until Sept. 30.

Since the deposit cheque was seven days late, the lawyer for the sellers immediately returned it to Loblaw's lawyers. A few days later, the sellers signed a deal with Forecast, which had expressed interest in the property after the Loblaw offer was signed. Everybody then headed to court to determine which deal was binding: the Loblaw purchase or the Forecast one.

The case was heard by Justice Douglas Rutherford in Toronto last year. He had to determine whether the parties would be held strictly to their bargain, or whether there was a little wiggle room to allow late payment of the deposit based on Loblaw's good faith and inadvertent error.

In order to reach his decision, Rutherford analyzed what is probably the most important common law case in this area: the 1997 decision of the British Privy Council in Union Eagle Ltd. v. Golden Achievement Ltd. In that case, the buyer entered into an agreement in August 1991 to purchase an apartment in Hong Kong for HK$4.2 million, the equivalent at the time of about $622,000 Canadian.

The buyer paid a deposit of HK$422,000 to the seller's lawyer. Completion of the deal was to take place on or before Sept. 30, 1991 at 5 p.m., and time was to be ‘of the essence’ of the agreement. The seller's lawyer had warned the buyer's lawyer that they would insist on strict compliance with the closing deadline, or the seller would terminate the deal and forfeit the deposit.

At the time scheduled for closing, a courier from the office of the buyer's lawyers was heading for the office of the seller's lawyer with the balance of the funds, but was stuck in traffic in downtown Hong Kong. He finally arrived at 5:10 p.m., just 10 minutes late.

At 5:11 p.m., the seller's lawyer phoned the buyer's lawyer and advised that the deal was terminated under the ‘time of the essence’ clause, and they returned the envelope and contents to the courier.

In the hyper-inflation of the Hong Kong condominium market at the time, the buyer took the seller to court to enforce the contract. The evidence at trial showed there was no intentional delay by the buyer, there was no specific deadline for registration, and the vendor did not suffer any damages as a result of the 10-minute delay.

In February 1997, the case wound up before the Judicial Committee of the Privy Council, which at the time was the highest court of appeal for the Crown colony. All five law lords in London agreed with the Hong Kong courts, and sided with the seller's right to terminate due to the 10-minute delay in payment. The Privy Council said, "The fact is that the buyer was late. Any suggestion that relief can be obtained on the ground that he was only slightly late is bound to lead to arguments over how late is too late, which can be resolved only by litigation."

Eventually, the owner of the Hong Kong apartment sold it for HK$19.5 million, or close to $3 million Canadian — a profit of HK$15 million ($2.25 million Canadian) as a result of the 10-minute delay.

Applying the Union Eagle reasoning to the Loblaw case in Fergus, Justice Rutherford ruled that Loblaw was in breach of the agreement and could not proceed with its purchase. The sellers were entitled to kill the deal when Loblaw's deposit arrived late.

Last July, the Ontario Court of Appeal dismissed Loblaw's appeal in three short paragraphs.

Until the Loblaw Properties case, courts had been willing to bend the rules in cases like this ‘where justice requires it’, and when the parties were acting in good faith.

Commenting on the case in The Lawyers Weekly, Toronto lawyers Jeffrey Lem and Brian Clark noted it may be premature to say the law in Canada on ‘time of the essence’ has undergone a ‘complete 180’, but it would not be an overstatement to suggest that Union Eagle has now officially landed in Canada.

In future, real estate buyers who are slightly late in complying with the terms of the purchase agreement run a substantial risk of being held in breach of contract. If you have to pay a deposit or the balance of the full purchase price on a specific day, make sure you won't be late.

============= IMPORTANT NOTICE ================

The ACRE System Program (15th anniversary) in Calgary, taught entirely by Canadian best-selling author Don R. Campbell, and special Canadian Real Estate guests, is coming up soon (June 9th & 10th) and is right around the corner. All of our new research will be released at this special weekend event. This event will be held at the Calgary Stampede – Big 4 Building (1801 Big Four Tr. SE). It will definately sell out quickly and be the largest ACRE System event to date. In fact, the last two ACRE System we held in Vancouver and Toronto sold out 8- 10 days in advance, with a substantial waiting list of people.

For all of the details and a special special $200 subscriber discount:
:
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Final Thoughts

Congratulations on staying on top of the market, and NOT getting caught up in the fear and greed that surrounds Real Estate. As real estate investors, we are known targets for scams and 'hype-based selling artists' . That is why you are witnessing so many so called 'Real Estate Experts" and other 'Investment Experts' coming out of the woodwork selling their wares at free seminars and workshops. In fact, be prepared for an onslaught of these types of invitations as our winter disappears. You'll see the marketing everywhere. It happens every time there is a boom - just be aware and do your homework and focus on what is real, not fabricated... and ask the TOUGH questions and don't act until you get an answer you are happy with. Be sophisticated in ALL that you do.

If you just stay focused in Real Estate for the next 3 - 5 years, in a fundamentally strong area, you have the potential to set yourself up for life. After you have achieved your goals then go out and try all of the different 'get-rich-quick' schemes you want, but today the focus is on long-term fundamentals and taking action. It is all lining up for you right now in many areas in the country, and by focusing on the research and avoiding getting caught up in a slick sales job, you will do incredibly well.

If you are one of the 2,400+ Members of REIN™, the next REIN™ Workshops for you are extra special. Check out the details on the calendar. You'll want to get there early for these ones.

If you are not yet a Member of REIN™, please focus on taking action. Real estate is not a race, it is a long-term strategy. Learn what you need to learn, make sure it is TRULY Canadian based and surround yourself with quality like-minded people who will help you achieve what you want to achieve. Avoid the "Hype-Fests" that are floating around Canada right now, and focus on what you know to be real.

Looking forward to hearing from you soon with your success story. Feel free to submit one today for the upcoming best-seller:

We'd love to hear what you think of this issue

Please send your comments, questions, and ideas for upcoming issues to:

info@reincanada.com

Your feedback matters to us. What would you like to hear more about?

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Don R. Campbell and The REIN™ Team

"Turning Real Estate Dreams Into Realities... One Investor At A Time!"

To Tap Into The Latest Canadian Real Estate Strategies Visit http://www.reincanada.com

Copyright 1996-2007 by Real Estate Investment Network. All rights reserved.

P.S... The last two ACRE System in Vancouver & Toronto sold out 8 days before the event. If you are serious and want to learn the unbiased fundamentals of Real Estate make sure you are registered for the upcoming ACRE System event in Calgary. For $200 Discount all the details click on the following link.

P.P.S... Make sure you listen to an exclusive interview of Don R. Campbell talking about what you will learn at the upcoming ACRE System program

In This Issue

4) Changes to the Alberta Rent Control Legislation.
You can make a difference. Click here for the latest on this issue from Don R. Campbell

F5) Tales from the Legal Trenches
By Barry McGuire

Main Links

Real Estate Resources

Learn More About

Questions

In This Issue

4) Changes to the Alberta Rent Control Legislation. You can make a difference. Click here for the latest on this issue from Don R. Campbell

F5) Tales from the Legal Trenches By Barry McGuire

Main Links

Real Estate Resources

Learn More About

Questions

4) Changes to the Alberta Rent Control Legislation.
You can make a difference. Click here for the latest on this issue from Don R. Campbell

F5) Tales from the Legal Trenches
By Barry McGuire