The summer is here and sellers will be warming to the fact that July has seen another spike in house price levels across West Vancouver and Greater Vancouver in general. Yes, once again house prices have peaked, giving homeowners in West Vancouver an opportunity to make hay while the sun is shining on the real estate market.
In the month of June 2014, house prices across Greater Vancouver rose by 6.2 percent year on year. Furthermore, these figures are calculated by leaving out some of the more expensive mansions priced up in West Vancouver. So if one were to include the high-end luxury homes in the equation that figure might even be higher still.
The burning question for sellers is – has the latest bubble in the housing market reached its zenith and will we see a burst in the very near future? Is this summer a good time to sell and relocate or should a seller be holding on and wait it out to see what the market does?
The real issue with the real estate market in West Vancouver is that is does not follow the same trend as the rest of Canada. Index prices for West Vancouver detached homes has reached just over $2 million, that’s double the amount of index prices from the less opulent North Vancouver district.
It’s also worth noting that West Vancouver and British Columbia as a whole has benefited from the influx of immigration from around the world, particular Asia. It has boosted an already-vibrant economy and helped to bolster the housing market. Investors from China have helped to push up the price of luxury real estate in a way never seen before. You have to understand there’s something of a revolution in China and its economy and back in the 20th century making money behind the bamboo curtain was something exclusive only to a few Communist Party bigwigs. Now such an opportunity to become wealthy in the world’s most populous country has become easier for millions more. Much of this wealth is used on buying luxury real estate in places like California, Florida and West Vancouver.
The future is very bright is we rely on the investment of Chinese and Asian property investors and all that comes despite the tightening controls implemented by both Canadian and Chinese authorities implemented to stem to rising tide of overseas investment in Canada (and the United States) as a whole.
Every business established in China, whether domestic or foreign, is required to have a legal representative. He/she is the main principal of the company and is the employee with the legal power to represent and enter into binding obligations on behalf of the company in accordance with the law or articles of association of the company. Essentially, the legal representative is someone who is appointed to act on the companys behalf and Article 38 of the General Principles of Civil Law of the Peoples Republic of China defines the role as the responsible person who performs the duties and powers on behalf of a legal person in accordance with the law or the constituent documents of the legal person.
However, foreign investors often have only a limited understanding of the legal representatives role and are startled when they learn of their power and how difficult it is to replace an un-cooperative one. Legal representatives possess broad powers and potentially unlimited liability. When concluding a contract a legal representatives acts are binding on the company even if he/she is acting beyond their authorized scope. Failure to properly understand the powers and responsibilities of a legal representative can therefore lead to a situation where foreign investors are held to ransom. In appointing a legal representative, it is vital to bear in mind that the legal representative will essentially have the full keys to the company, cash, and capital.
Amendments to the PRC Company Law require a new company established on or after January 1, 2006 to appoint a supervisor, or board of supervisors depending on the size of the company, whose role is to monitor the activities of the legal representative. Shareholders and employee representatives of a company can act as supervisors. However, members of the companys board of directors or senior management may not simultaneously serve as supervisors. If a company has a board of supervisors, it must have a proportion of employee representatives which accounts for at least one-third of supervisory membership. The supervisor, like the companys directors, is not required to reside in or visit China.
The main role of the supervisor is to safeguard and supervise the operation of a company and exercise supervision over the work of directors and senior management. The Company Law gives supervisors an array of powers, such as inspecting the companys finances, supervising the company directors and senior managers, recommending dismissal of directors or senior managers who violate laws or damage the companys interests, proposing shareholder meetings, and any other powers specified in the companys articles of association.
The role of supervisor is very relevant to the potential liabilities of the legal representative as they are permitted to supervise and constrain the legal representative in order to reduce the potential risks of a rogue legal representative acting on behalf of the company.