Tag Archives: legal

The most important question to ask before investing

Posted on by

Over the past 15 years, I have been exposed to a wide variety of investments in diverse asset classes from stocks, bonds and options, to licensing agreements, commodities and real estate. It is very important to know what you are investing in and be able to forecast a cash flow in your investment. It is also important to know if there could be a capital gain and have a clear understanding of where your money goes. I used to believe that these were the most important questions to ask.

I have completely revamped my philosophy and now ask the following question before anything else. Is the investment being offered to you legal or not? Let me give you a few examples.

Someone asks you to sign a document for a mortgage on a property which you claim to be moving into. You never actually live there as your home and collect a commission for lying on the mortgage application. Congratulations, you have an infinite rate of return (because you put no money into the deal) and have committed fraud!!

You attend an investment seminar whereby a promoter you have never met is selling shares in a real estate development project. They go to great lengths to discuss the rents, landscaping, new roads, amenities, etc. At the end of the seminar, they give you a piece of paper asking you to purchase shares in their real estate project. For the purposes of illustration, let us assume you are not an accredited investor (i.e. millionaire). The following questions must be asked by you:

1) Are they legally registered with the appropriate securities commission to solicit these non-real estate investments? If not, it is illegal.  Real estate is not the same as shares in a real estate project!!

2) Do they have a prospectus filed to prove that the securities being offered have been thoroughly vetted (i.e. reviewed).  Ask to see the prospectus (especially if they are not registered to do this work). If they don’t have one, this is also an indicator that the offering is most likely illegal.

The next time you see an investment offered for a development or quick cash for signing a mortgage application, ensure that it is legal? If uncertain, ask someone not interested in your transaction for assistance such as a real estate or securities lawyer before you invest.

Foreclosures Fall Even as Judges Ramp Up

Posted on by

U.S. foreclosure activity in June fell to the lowest level since December of 2006, but certain states are seeing a rise in activity, as judges work through tremendous backlogs of delinquent loans. Close to 128,000 properties received some kind of foreclosure filing in June, down 35 percent from a year ago, according to a new report from online foreclosure sales and analytics company RealtyTrac. Newly started foreclosures fell 21 percent month-to-month to the lowest level since the end of 2005.

Read more: http://www.cnbc.com/id/100877414

Hatter ready for legal action over smart meters

Posted on by

City utility customers will learn more about the rollout of automated metering to the entire city over the next few months, say officials with the department.

But at least one Medicine Hat resident who is concerned about privacy and health issues says he won’t allow it and may consider court action to stop the installation in his house.

Read more: http://tinyurl.com/d8uvld3

Landowners launch lawsuit to derail power lines

Posted on by

EDMONTON – The seven-year battle over two new north-south transmission lines could heat up again with a pending court challenge designed to derail both lines.

A new lawsuit will argue the province had no jurisdiction to designate as necessary Altalink’s $1.5-billion western transmission line because it will be used to export electricity and, as such, falls under federal jurisdiction.

Read more: http://tinyurl.com/ave24ou

 

Push on for courthouse expansion

Posted on by

Local MLAs from both sides of Alberta’s Legislature are being asked to join the push for a bigger courthouse in Red Deer.

Alberta Justice has a time-limited opportunity for a land swap that would create an ideal location for a bigger courthouse while creating new office space for city staff, says Brent Handel, president of the Central Alberta Bar Association.

Read more:  http://tinyurl.com/ccuo2qj