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Third Street home sold, but the money is still tied up in court

The home at 167 Third Street, now empty and slated for demolition, was left to the town and two charities by a handwritten note from the deceased owner, it's still uncertain who will get money from the sale
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The house at 167 Third Street, previously owned by Gloria Culbert, is now boarded up and fenced while the owner awaits approval of a demolition permit from the town.

Fences have been erected and windows have been boarded up at 167 Third St.

Gloria Culbert left her Third St. residence to three beneficiaries in a holographic (hand written) will: the Town of Collingwood, Home Horizon and Habitat for Humanity South Georgian Bay. Since Culbert’s death in 2019, the three beneficiaries along with a court-appointed trustee have been working their way through the court system to determine how the house could best be leveraged to help address homelessness in Collingwood, as per Culbert's handwritten instructions.

Though the handwritten note indicates the three beneficiaries, an official ruling still has to come from the court.

Most recently, according to property records, the home was sold for $1 million to Angela and Ella Karan as of Oct. 25 in a cash deal with no mortgage.

In response to questions sent this week by CollingwoodToday on the status of the matter, the town’s chief administrative officer Sonya Skinner said the Culbert estate is still in the hands of court-appointed trustee, Kitchener-based lawyer Clarke Melville.

While the town, Habitat for Humanity South Georgian Bay and Home Horizon were named beneficiaries in the will, Culbert did not appoint a trustee, so none of the three parties were able to manage the estate while the matter made its way through the court.

Prior to and over the past few years while the matter has made its way through the court system, the property has continued to deteriorate.

Melville was appointed by the court on April 3 as estate trustee to control and manage the property and estate. Melville’s role is to act on orders issued by the court, which included selling the house.

The home went on the market on June 1 for $899,000, with the house selling over asking.

According to the town's chief building officer, Tammy Hogg, a demolition permit has been applied for the property, however the town has not yet issued the permit.

“We are awaiting the required sign-off forms,” said Hogg.

According to a recent court ruling, Skinner says the court ruled that any legal expenses paid by the Town of Collingwood to date on the matter would be reimbursed.

“The court has yet to finally determine who will be the final beneficiaries of the estate,” said Skinner.

When asked how the town will use any funds it may be awarded by the courts, Skinner said the town intends to add it to the affordable housing reserve.

“The town remains hopeful to be able to use any proceeds that come to us as a potential beneficiary to support initiatives to increase the affordable housing supply, honouring Ms. Culbert’s intentions,” said Skinner.

It's unclear how much money will be leftover for the beneficiaries named by Culbert after legal fees are paid and if a court decides to award money to those three parties.

Skinner did not respond to a follow-up question asking how much the town has spent to date on legal fees on the matter.

Estate trustee Clarke Melville did not return multiple requests for comment for this story. Representatives from Habitat for Humanity South Georgian Bay and Home Horizon also did not return a request for comment.


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Jessica Owen

About the Author: Jessica Owen

Jessica Owen is an experienced journalist working for Village Media since 2018, primarily covering Collingwood and education.
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