SELLER FINANCING AND THE VENDOR TAKE-BACK MORTGAGE

Seller financing is usually done by way of a vender take-back mortgage. A vender take-take back mortgage is a mortgage whereby the seller of the property does not get paid a portion of the purchase price but instead registers a mortgage with repayment provisions on the property. In this instance title to the property transfers to the buyers.

There are advantages and disadvantages to a vendor take-back mortgages. One advantage is that vendors are more flexible with respect to interest rates than a bank to make a deal work. Vendors may not require the same kind of credit check than a bank. Care must be taken so that a vendor does not take a risk that they are not comfortable with. Vendors may also be more flexible regarding repayment terms (balloon payments, interest only payments, etc).

Some disadvantages or things to be cautious about mostly are based on a buyer’s inability to make payments. You must be comfortable with the interest rate. A frequent problem arises when the intention is for the vender take-back mortgage to be paid back in a short time frame but the buyers take much longer to do so and are allowed to take longer under the mortgage.

TITLE INSURANCE VS REAL PROPERTY REPORTS

Title insurance is a valuable tool and very much worth discussing with a purchaser. As this chapter deals with the sale of real property, only issues as they affect a seller shall be mentioned. A title insurance policy guarantees (with specific limitations as stated in the policy) your title to the property including such things as, encroachment issues of improvements on the land, title fraud, and unknown breaches of local land use bylaws.
A Real Property Report will show if there are any easements for utilities or rights-of-way on the property, and whether fences, trees, buildings, gardens, embankments, driveways, walkways, swimming pools, house additions and other property improvements are actually on your property — or if anything encroaches from your neighbour’s property onto yours.
Since title insurance was introduced in Canada in the early 1990s, it has been marketed as an inexpensive replacement for a property survey. Arguably purchasers put themselves at risk by not getting an up-to-date survey, even if they have title insurance. This is why my advise to purchasers is to not accept title insurance in lieu of a current RPR with compliance. Even if there are no issues with the property, there is still the issue that the buyers will need to pay for title insurance every tie the refinance their home and will certainly need to pay for a new RPR when they sell the home.
Title insurance is used most of the time in the United States because of the continued poor condition of deed registry systems in many states and because of the inconsistent manner in which American surveyors are licensed and regulated from state to state.
In Alberta, the Torrens system allowed for the orderly opening of land for development, and has provided security of tenure through reliable documentation of land ownership and a provincial guarantee of an interest in land.
As a seller there is every incentive to using title insurance in lieu of a RPR if a new one is required as it has a lower cost and passes off any obligation if an unknown problem is discovered after possession. If a purchaser agrees to this change to the standard purchase contract, then it is imperative to make changes to the contract that covers off all the RPR issues as well as encroachments and land use sections. Without these further changes, if a defect is discovered (ie that a new garage sits on City property) then the seller may still be liable.

The Cost of Selling Your Home

The following are some of the usual closing costs when you sell your home:

Legal Fees

Fees will range from firm to firm. Expect to pay, for selling a house under $1M about $600 to $1000. The lowest price is often not the best way to go. Pay attention to the time it takes for a lawyer to respond to your inquiry. If they are slow to respond when you want to give them work, imagine how long it may take if there is an issue important to you. Kahane Law Office includes usual disbursements in our quoted fees (not estoppels or RPRs) but many firms do not. Ensure you ask in advance what is and is not included. Listed below you will find other disbursements.

Land Titles Registration Fees (Provincial)

A disbursement to the land titles office. This fee (the cost of transferring the property into the buyer’s name) is paid for by the purchaser.)

Compliance Letter (Municipal)

The fee is $93 (subject to change) in Calgary. It is a stamp or letter that the Municipality confirms that the improvements on the property comply with local land bylaws and that everything on the property actually site on the property. If things do not comply or sit off the property, then you may need to get an encroachment agreement or a relaxation permit.

Tax Certificate (Municipal)

Municipalities charge this disbursement. It proves that your taxes are paid up to date or if there are arrears, whether you pay annually or monthly or if there are any levies.($10-$45)

Real Property Report (RPR)

Expect to pay $500 to $700 for a RPR in a major center. Rural properties may cost more due to travel costs and larger properties. Apartment style condos do not require a RPR. bare land condos do. If you purchased a property using the standard real estate purchase contract that real estate agents use, then there should have been an RPR given to you by your lawyer when you bought the property. If there are any structures on the property that are not shown on the RPR, then you need to get an updated one. Calling the surveyor who did an existing RPR for an update is less expensive than ordering a new one.

Property Tax Adjustments (Municipal)

If you pay your taxes once a year (June 30th) and you are selling your home between January 1st and June 30th, there will be an adjustment for the taxes to the benefit of the purchaser. You do not pay anything for this item, however you will receive less from your sale proceeds. (ranges form nothing to one half the annual tax levy)

Estoppel Certificate and Certificate of Insurance

This disbursement is for Condos only. They show that condo fees are paid up, that there is insurance on the building and that there are no special assessments not paid. ($100-$300)

Copy of Title

A copy of title has to be pulled showing the registrations on title. These include caveats, mortgages, liens, restrictive covenants, etc. (about $7)

ANNOTATED GUIDE TO THE PURCHASE CONTRACT

The following is an annotated guide to the standard real estate purchase contract (as of August 2008: see bottom left of contract) by section:

At the beginning of the contract, there is a spot for the buyer and seller. It is important to put down the seller who is actually on title. If a seller is married and their spouse is not on title, they must ensure that the spouse will be willing to release their dower rights in the property. the failure of a spouse who is not on title to waive their dower rights, can lead to the seller getting sued for breach of contract.

If a corporate entity is involved, it is mandatory to have the correct legal name of the company.

1. The Property: this section describes what is included and what is not included in the purchase. It is very important to ensure you have the correct legal and municipal address.

1.2 There are frequent issues with condominiums ion this section. Please ensure that every titled parking stall and/or storage locker is included in this section. Also, be aware that there is a difference between the legal unit number and the municipal one; they are often confused.

1.3 Ensure that all the items not attached to the house (such as a furnace) are clearly described here. Where there are two items, only one of which is included, ensure that sufficient details are given. Ideally, the make model and serial number are listed in this section, though this is seldom done.

1.4 If it is your intention to keep anything attached to the home (ie a light fixture or attached (not just hung) mirror), ensure that it is listed here.

1.5 This is the section that the seller agrees that they will pay out all the debt secured against title. Every week (September 2008 to present) we have seen people sell their homes and the sale price does not cover the amount of debt secured against the home. Lines of credit MUST be paid out if they are secured on the property.

2. The Transaction: this section sets out the price of the property. The total purchase price must be set (or ascertainable) you cannot have a “to be determined” statement here. The buyer will want a large deposit to ensure that the sale goes through. Once any conditions are waived, if the buyer fails to purchase the property, the deposit if forfeited to the seller.

Please be aware that if the transaction involves real property that was just built (no one has lived in the property before), then GST should be taken into account. Small builders and people who flip new properties usually use this standard agreement and there needs to be some issues taken into account with respect to the GST.

3. Deposits: This is the section that states who will hold the deposit and what happens to the deposits if there is a dispute.

4. Closing:

4.1 This section needs to have a date or be ascertainable on the face of this document. If there is no means to determine an exact date for the date of closing, the whole contact may be void.

15. Final Signing this section is not mandatory with respect to creating a legally binding contract. It has more to do with the timing of things to ascertain the time of final acceptance.

Vendor’s Guide

If you choose Kahane Law Office to represent you in the sale of your home, as your legal representative we will protect your legal interests and ensure the sale of your property is as smooth and stress-free as possible. If requested, we will review your purchase contract relating to the property before your sign it. Our objective is to make the sale of your home as smooth and stress-free as possible.

1. Kahane Law Office will complete your purchase for a fee starting at $399 plus GST. This figure includes all disbursements with the exception of costs incurred relating to a Real Property Report, relaxation permits, development permits, encroachment agreements, Certificate of Compliance, or Estoppel Certificates and condominium documents. We will not be required to order a new Real Property Report if you have the original copy of an updated Report and there have not been any structural changes to the property. We will have to order a new Report if the one you have is outdated or there have been changes to the property, (such as new fences, decks, additions, garages, etc.). We will do our best to minimize your expenses.

2. Kahane Law Office will prepare all transfer and related documentation, impose all appropriate trust conditions to protect you, and will be responsible for paying all mortgages and financial encumbrances from sale proceeds and clearing them off the title upon the closing of the transaction. We will also pay out any outstanding real estate commissions.

3. You are responsible for notifying the City of Calgary Tax Department to cancel all TIPP payments, if applicable. You are also responsible for notifying the gas company, city utilities department, cable TV, telephone company, etc., of the change of ownership of the property. Your Homeowners insurance on the property should only be cancelled once you have received your net sale proceeds.

4. You will normally be responsible for all mortgage payments to your present mortgage company up to and including the date of the sale.

5. Although we make every effort to ensure a timely closing, you should be aware that there may be delays in the closing due to unforeseen circumstances. We will, however authorize release of the keys to the purchasers on the closing date providing our trust conditions have been complied with. If the purchasers cause the delay, the purchasers will pay interest to you at a rate of prime + 3% from the date of possession until all funds have been received by our office free for release.

6. We will require a new address, telephone number, and instructions from you with respect to payment of the proceeds of your sale. If we have no instructions for payment of your proceeds, we will normally telephone you when the transaction is completed to have you attend at our office to pick them up.

7. Finally, in order to ensure a smooth closing, we ask that you leave your home in a clean and tidy condition and that all of your personal belongings have been removed no later than 12:00 noon on the possession date. The keys for the property should be given to your real estate agent, and he or she is responsible for obtaining authorization from our office before releasing them to the new owners. If you do not have a realtor involved in the transaction, please advise our office about how you would like to handle the transfer of your keys.

8. If you are purchasing a new home, Kahane Law Office would be pleased to be your legal representatives. We would also like to extend added protection for you and your family by offering a will package to you at a preferred client rate.

We hope the information in this guide has been helpful. Please do not hesitate to contact our office if you have any questions or concerns.

KAHANE LAW OFFICE

Jeffrey V. Kahane

Purchaser’s Guide

If you choose Kahane Law Office to represent you in the purchase of your new home, as your legal representative we will protect your legal interests by ensuring the property you are considering purchasing does not have any building or statutory liens or charges, or work orders associated with it. We will review the Offer/Agreement to Purchase relating to the property before your sign it. Our objective is to make the purchase of your new home as smooth and stress-free as possible.

1. Kahane Law Office purchase fees start from $999.00, plus GST. This amount includes all usual disbursements. There will be additional costs for obtaining title insurance, if required, and a Real Property Report and Certificate of Compliance, if they are not provided by the Vendor.

2. If an up-to-date Survey is available, we will not order a new Real Property Report with Certificate of Compliance unless we are specifically instructed by yourselves or your mortgage company to do so. The responsibility for payment for the new Real Property Report and Certificate of Compliance will be determined by the Offer to Purchase.

3. If requested, we will review any registered encumbrances on title and ensure that non-financial encumbrances do not adversely affect your rights to the property in any way. We will also explain non-financial encumbrances, which usually relate to municipal requirements like utility-rights-of-way, drainage, and grading, or architectural control requirements of the developer of your community.

4. We recommend that you have an independent appraisal done on a property before you make an offer to purchase. This will give you a clearer idea of what the property is worth so you do not overpay. Your lender may also ask for a recognized appraisal in order to complete a mortgage loan. The appraisal should include an unbiased assessment of the property’s physical and functional characteristics, and analysis of recent comparable sales, and an assessment of market conditions affecting the value of the property. You should not pay more than $250-$350 in most areas for a single family home.

5. We recommend that you have the property inspected by a knowledgeable and professional home inspector. The inspector will go through the property and perform a comprehensive visual inspection to assess the condition of the home and all of its systems. When you receive the home inspection report, you and your real estate agent should discuss how required repairs may affect the sale price that was agreed upon.

6. If you are purchasing a new home, an inspector is not normally used where the builder provides a New Home Warranty. You may, however, wish to have the home professionally inspected just prior to the expiration of the home warranty period. Warranty coverage usually covers labour and material costs in your new home for at least one year after completion. It is also intended to address structural defects for a minimum of 5 years, and up to 10 years with some extended coverage options. A dollar cap is common. Before you sign the contract for the purchase of a new home, contact the Alberta New Home Warranty Program at 1-800-352-8240 for information about Warranty coverage for your new home, and a list of registered builders in your area and contact information. You can also obtain detailed information at the Alberta New Home Warranty Program at www.anhwp.com. The National Home Warranty Group Inc. covers Manitoba, Saskatchewan, Alberta, and British Columbia, and can be reached at 1-888-776-7707. The website is www.nationalhomewarranty.com.

7. You may have either a conventional mortgage or a high-ratio mortgage, depending on the amount of your down payment. A conventional mortgage does not exceed 80% of the lending value of the property. The lending value is usually the lesser of the purchase price of the property and the assessed market value. Your down payment is at least 20% of the purchase price or market value. A high-ratio mortgage is greater than 80% of the purchase price or market value. Lenders of high-ratio mortgages usually require additional mortgage loan insurance, which may be obtained from CMHC or a private insurance company. Your lender may require you to pay the full mortgage insurance premium upon closing, or they may add the premium to the mortgage. High-ratio mortgages are riskier for the Purchaser because if the value of the property falls below the value of the property and the mortgage is defaulted, the Purchaser will be personally liable for the difference between the resale value of the property and the outstanding value of the mortgage in the case of foreclosure, regardless of whether they still own the property or they have sold it to someone assuming the mortgage.

8. You may obtain either an open mortgage or a closed mortgage. A closed mortgage is not flexible and there are frequently penalties or restrictive conditions attached to prepayments or additional lump sum payments. This type of mortgage may be right for you if you want a fixed payment plan that is predictable and allows you to budget accordingly. It may not be the right type of mortgage for you if you decide to move before the end of the term of the mortgage, or if you would like to pay off the mortgage more quickly and take advantage of a potential decrease of interest rates. Most mortgages allow for 10, 15, or 20% prepayment annual increases to your regular payments and/or double up payment option.

9. An open mortgage is flexible and allows you to prepay any lump sum at any time without any penalty. This may be a good type of mortgage for you if you plan to resell the property before the expiry of the mortgage, or want to pay off the mortgage more quickly. Most lenders allow you to convert to a closed mortgage, however you may be charged a small fee.

10. Mortgage interest rates may be fixed or variable. Fixed rates are locked-in and do not change for the entire life of the mortgage. Variable rates change in accordance with market conditions.

11. Your Lender should discuss the options available for the term of your mortgage. The term will be the length of time agreed upon in the mortgage contract, and will include the fixed interest rate you will be paying. Mortgage terms can vary from 6 months to 10 years, however most mortgage terms do not exceed 5 years. A longer term allows you to plan ahead and protects you from interest rate increases, however the payout penalty may be substantial if you payout the mortgage early. You can ask your Lender to explain and calculate the differences between various term lengths.

12. Amortization is the amount of time over which the entire debt will be repaid. Most mortgages are amortized over 20, 25, or 30-year periods. Longer amortization periods have lower mortgage payments, and you will pay more interest over the course of the mortgage.

13. The payment schedule of a mortgage is usually regular payments made monthly, bi-monthly, bi-weekly, or weekly. More frequent payments can save interest costs by reducing the outstanding principle balance more quickly than monthly payments. More frequent payments will always decrease the overall interest you pay on your mortgage. You should discuss a payment schedule with your Lender that best suits your interests.

14. If you have not been pre-approved for a mortgage, you should find a good mortgage broker to assist you for duration of the purchase process and the life of the mortgage. Mortgage brokers work for you, and their job is to help you find a mortgage with the terms and rates that will best suit your needs. A pre-approved mortgage certificate is not a guarantee of being approved for a loan, and you must still meet with your lender during the conditional offer period to get final approval.

15. If you are assuming an existing mortgage, Kahane Law Office will order an assumption statement from the lender to verify the mortgage the mortgage figures. Be aware that the actual mortgage amount may vary from the figure quoted in the Offer to Purchase, which will result in a greater or lesser amount of cash required to close the transaction.

16. If you have obtained a new mortgage, you may receive a document entitled “Caveat Forbidding Registration” in the mail shortly after the closing date from the Calgary Land Titles Office. Don’t worry about this document if it relates to a “Vendor’s Lien”, as it is simply a caveat registered by the Vendor on title during the period of time between the closing date and our office’s receipt of the mortgage funds. This lien will be discharged from title once the mortgage funds have been received.

17. Once you have obtained a mortgage, Kahane Law Office will prepare all mortgage documents in accordance with the instructions we receive from your mortgage company. We will compile all of the required documentation for your mortgage, as well as the documentation provided by the Vendor’s lawyer, and will negotiate trust conditions on your behalf.

18. If you are selling a home with a possession date prior to or within 3 days of the possession date on your new property, you will usually be required to obtain interim financing, or “bridge” financing, to complete the transaction on time. The balance of your down payment is required approximately 3 to 5 days prior to the closing date in order to ensure that registration has been completed and the mortgage funds are advanced on time.

19. Kahane Law Office makes every effort to ensure a timely closing, however delays may occurs due to circumstances beyond our control. If there is a delay in our receipt of funds from your Lender, you will be required to pay the Vendor interest on a daily basis at a rate of prime + 3%. However, you will not be required to pay interest to the Lender until they have advanced the full amount of the mortgage. If the delay is due to the Sellers, you will still be required to pay late interest if you wish to take possession, but at the same amount as you would have paid your lender if they had advanced the mortgage, less any principle portion.

20. Please note that our office has a 12:00 noon deadline to release funds to the Vendor. We will automatically release the mortgage funds at 12:00 noon on the closing date unless we are advised by you to the contrary. Be aware that in most cases we are unable to hold back funds for minor deficiencies in the condition of the property. If you have any concerns we will try to address them with the Vendor’s lawyer, however if we are unable to come to an satisfactory solution, your recourse is limited to suing the Vendor in Small Claims Court for damages.

21. You are responsible for notifying the City Utilities Department, cable TV, gas company, telephone company, etc., of the change of ownership of the property, and we recommend that you do this well in advance of the possession date.

22. a) You must obtain property insurance on your new property. Lenders insist on property insurance because the property is security for your mortgage. Premiums vary in accordance with the value of the property.

b) You may also buy mortgage life insurance, which covers the outstanding balance of the mortgage should you die before the principle of the mortgage is paid off. Mortgage insurance is entirely different than property insurance, and may be required for high-ratio mortgages.

23. You must provide our office with proof of fire insurance coverage on your property, and we recommend that you contact your insurance agent as soon as possible to advise them of the change in ownership. Please provide us with the name of your insurance agent prior to possession, and a binder letter showing the name of your lender as 1st loss payee.

24. If you choose to pay your property taxes through the Tax Installment Payment Plan (TIPP) with the City of Calgary, you will need to contact them directly to make arrangements prior to the closing date. The TIPP telephone number is (403)311-8118. If the property taxes have already been paid in full by the Vendors for the current calendar year, you may be required to wait until January of the following year to commence your payments to the TIPP program.

25. The keys for your new property are normally given to your realtor who will obtain authorization from the Vendor’s lawyer to release them to you on the closing date.

We hope the information in this guide has been helpful. Please do not hesitate to contact our office if you have any questions or concerns.

KAHANE LAW OFFICE

Jeffrey V. Kahane

What Happens to Your Home in Divorces

Divorce is a difficult situation which opens up many emotional and financial issues which need to be resolved. One of the most important issues is what to do about your home. There are many questions you might be asking at this time, we, at Kahane Law Office, are here to help. Let’s first break down some of the basics.

“I think I want to stay in my home…what do I need to keep in mind?”

First, take into consideration the size of the home, utilities, payments and family needs. Will the familiar surroundings bring you comfort and emotional security, or unpleasant memories? Do you want to minimize change by staying where you are, or sell your home and move to a new place that offers a fresh start? Does staying in the home truly make sense? You will likely now be entirely responsible for the house payment, taxes, insurance, upkeep, maintenance and other related bills. Your household income may be decreasing, and your overall expenses may be increasing if you are subject to a court order for spousal or child support. It is important that you are aware and thorough in determining what your actual expenses will be in keeping and maintaining the home on your own.

“My spouse is entitled to share in the equity we have in our home…how is this handled?”

The equity in the home needs to be determined by an appraiser – call us if you need a recommendation and referral. The appraised value less the eventual costs of selling (commissions and seller closing costs), less any joint financial obligations related to the property (mortgages, secured credit lines) equals the equity to be split between the parties (in most cases). Any money you or your spouse contributed to the home from your own pre-marital assets must also be accounted for in determining the final division of equity.

If you choose to stay in the home, when it comes to mortgage financing, you have two options to pay your ex-spouse. You can either refinance your current home to get cash out, or you can obtain a new second mortgage or home equity loan. This is where you will want the advice of a trusted licensed mortgage professional.

Even though you may now be qualifying for the loan without a spouse’s income – with your own good credit and income, you can usually qualify on your own. Often, child support and alimony is viewed as stable income and can, in most cases, be used to help support the mortgage application.

“What if I am the one leaving the home?”

It is important to know that even though the divorce agreement awarded the home to your spouse, you are still obligated for this debt in the eyes of the mortgage company.

Many people assume that by filing for a divorce and removing themselves from the title, they are no longer responsible for the mortgage. A divorce agreement may only eliminate your name from the title of the property, but not necessarily from the mortgage. This is something to be aware of and we always recommend getting your own legal advice to make sure you are properly protected.

“What if we both decide to sell the home?”

If you and your ex-spouse have made a mutual decision to sell your current home, it is important to work together with a good real estate professional to maximize your return. Differences aside, you should both be present when a listing contract is put together and both be consulted on all potential offers. Consult a qualified real estate agent.

“If I want to buy another home – am I going to be out of luck while I am still listed on the old mortgage?”

Consult with your lawyer as to whether or not it is advisable to purchase a new home before your divorce is final. Contact us and we can identify any issues to resolve that might slow the process. Remember that in most situations, child support and alimony can be used to support the mortgage application but must be properly documented. Even if you are still listed as a co-borrower on the mortgage for the prior home, if the divorce agreement states that you are not obligated for the mortgage, many mortgage programs will allow you to be qualified without this obligation. However, every situation is different and it is best to give us a call to discuss your circumstances prior to making any purchases.

“What if I do want to purchase another home before the divorce is final?”

Get advise you can trust. Discuss the potential pitfalls with your lawyer. Your spouse may present an obstacle to this process if the details of the divorce have not been finalized. Without the final divorce agreement (or at least a signed separation agreement), many lenders are reluctant to proceed. With prudent planning, we can work together to manage the challenges presented and hopefully make the process as painless as possible.

The best advise we have is that you consult a licensed professional for your real estate, mortgage and legal needs.

For more information contact Jeff Kahane at Kahane Law Office or 403-225-8810.

New FINTRAC Rules for Real Estate Developers

On February 20, 2009, an amendment to regulations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, 2000, c.17 (the “Act”) comes into force. This change now includes “real estate developers” as part of the group of financial service providers and financial intermediaries that must meet the reporting and record-keeping requirements described in the Act.

When a real estate developer sells a new building, which includes houses and condos, they must comply with the specific requirements under two regulations under the Act (the “Regulations”):

1. Under the Regulations, they must report ‘suspicious transactions’ to FINTRAC. ‘Suspicious transactions’ are transactions that are in progress or have been completed in which there are reasonable grounds to suspect that that money involved in the transaction stems from a money laundering offense, which can include a terrorist activity financing.

2. Under the Regulations, the developer must:
• Maintain a ‘receipt of funds record’ for funds received in the course of a transaction (subject to certain exceptions);
• Maintain a ‘client information record’ for every client;
• Follow specific procedures for determining the identity of every person who conducts the transaction and every corporation (including the names of their directors);
• Submit a ‘large cash transaction report’ to FINTRAC when the developer or its solicitor receives $10,000 or more in cash; and
• Report any transactions involving known terrorists or terrorist property.

FINTRAC has the authority to make inquiries into the real estate developer’s business and obtain documents or other information from the developer’s records for compliance purposes. The consequences of not complying with the requirement to report to FINTRAC involve criminal penalties and, depending on the offense, could result in a fine, imprisonment, or both. The maximum financial penalty amount that can be imposed for violations classified as very serious is, in the case of an entity, $500,000 and in the case of a person, $100,000.

If you have questions contact Jeff Kahane at  Ask Gurus, or www.kahanelaw.com

Kahane Law First Blog Post

Kahane Law office is excited to be part of www.thecalgaryrealestateblog.com team. Jumping into this world of blogging I thought the following would be an appropriate first quote/post.

“Computers have enabled people to make more mistakes faster than almost any invention in history, with the possible exception of tequila and hand guns.”

-Mitch Ratcliffe

We will aim for a higher standard! Please check back for our law related posts.

Jeff Kahane (www.kahanelaw.com)