Court File and Parties
CITATION: Abdollahpour v. Abdollahpour, 2017 ONSC 5171
COURT FILE NO.: 17-72439
DATE: August 31, 2017
SUPERIOR COURT OF JUSTICE - ONTARIO
RE: SIMA ABDOLLAHPOUR, Applicant AND HAMID ABDOLLAHPOUR and SHAKIBA SADAT BANIFATEMI, Respondents
BEFORE: Madam Justice Julianne Parfett
COUNSEL: John E. Summers, Counsel for Applicant James Anderson, Counsel for Respondent Hamid Abdollahpour Kevin Kavanagh, Counsel for Respondent Shakiba Sadat Banifatemi
HEARD: August 29, 2017 (Ottawa)
ENDORSEMENT
[1] The parties in this matter are family members who are in an acrimonious dispute in relation to the sale of a mutually-owned home. They cannot even agree which real estate agent should list the property and have submitted the matter to me for a decision.
[2] Despite the state of relations between these parties, they have agreed on some issues and those are reflected in the order made below.
[3] I have been given two choices with respect to a real estate agent: Frank Rizzo and Dominique Milne. Both agents are fully qualified and have significant experience. There is nothing to choose between them on the basis of their qualifications.
[4] On the other hand, they take two very different approaches to the sale of the property.
[5] This property has some important features. It is a property in the south-west part of Ottawa that is still being developed. The house is built to one side of a very large lot. Given the expansion of the city, severing off one or two lots and selling them separately is a realistic possibility. The applicant on this motion does not want the lot severed despite the fact the process is well underway and a subdivision plan has been filed with respect to this property. Consequently, the property must be sold as a single unit.
[6] Several appraisals and valuations were done on this property. Three valuation reports form part of the evidence on this motion. In one report prepared by Mr. Leonard Carty, he notes:
The subject property has been valued as one single lot. As noted in the site description, the house is situated to one side of the lot. Under current zoning a lot could be severed from this property….After reviewing lot sales in this area, it is felt that the severed lot would have a value of $225,000.
The house and severed lot would have a combined value of ($850,000 + $225,000) $1,075,000.
[7] A second report prepared by one of the suggested real estate agents, Dominique Milne indicates the following:
…I believe the highest and best use for the property would be to finalize the severance process and sell the three properties separately, therefore giving you the most strategic market position, by allowing you to target specific buyers for the various types of property.
Should you be willing to proceed with that option, I would recommend listing the property with the house on it for $799,000 … I would recommend listing the middle lot for $250,000 and the northernmost lot, which is slightly smaller, for $225,000….
If finalizing the severance is not an option, the suggested list price for the whole package is $1,000,000, as there will be costs incurred by the purchaser, which we have to consider in our list price.
[8] The third report was prepared by the other suggested real estate agent, Frank Rizzo. He did not address the possibility of severance of any lots from the property and suggested a list price for the entire property of $835,000.
[9] Clearly it is in the best interest of all parties to obtain the highest fair market value for this property. Based on two of the reports provided, that goal is best achieved either by severing lots in advance and selling them separately, or given that is not an option, by marketing the property with the idea of later severing and selling one or two lots.
[10] Mr. Rizzo was not asked to assess the property on the basis of severance of one or more lots and I cannot know what he would have said in relation to this sales approach. However, this approach has been assessed and recommended by two qualified real estate appraiser/brokers, including Ms. Milne. In my view, that fact makes Ms. Milne the better choice of real estate agent.
[11] Consequently, the order will go as follows:
- The property known municipally as 4 Leona Avenue, Ottawa, ON be immediately listed for sale with Dominique Milne, real estate broker;
- The property will be listed at a price recommended by Ms. Milne;
- The parties will accept any offer that is at least 95% of the listing price;
- The parties will accept Ms. Milne’s advice with respect to any change in the listing price;
- All remaining issues, including the distribution of the net proceeds of sale, determination of any costs incurred by any of the parties in relation to the maintenance or sale of the property, occupation rent, or income received by any of the parties from rental of the property are to be referred to the Master.
Costs
[12] The parties should attempt to resolve the issue of costs of this motion themselves. However, if the parties cannot resolve the issue of costs, they can refer the matter to me. All parties have provided me with their Bills of Costs. They can make written submissions in relation to this issue. The written submissions should be no more than two pages in length, and should be provided within 30 days, with a right of reply within a further ten days.
Madam Justice Julianne Parfett
Date: August 31, 2017
SUPERIOR COURT OF JUSTICE - ONTARIO
RE: SIMA ABDOLLAHPOUR, Applicant AND HAMID ABDOLLAHPOUR and SHAKIBA SADAT BANIFATEMI, Respondents
BEFORE: Madam Justice Julianne Parfett
COUNSEL: John E. Summers, Counsel for Applicant James Anderson, Counsel for Respondent Hamid Abdollahpour Kevin Kavanagh, Counsel for Respondent Shakiba Sadat Banifatemi
Costs ENDORSEMENT
Madam Justice Julianne Parfett
Released: August 31, 2017