EXAM Flashcards

Question

three things under REDMA

Answer 1

 1. Seven say rescission right • S. 21(2) Purchaser can rescind a purchase agreement within 7 days after the later of: o A. the date of the purchase agreement was made; or o B. the date of a written statement acknowledging the purchaser read the disclosure statement.  2. Failure to deliver disclosure statement • A. purchaser is entitled to an indefinite right of rescission  3. Failure to deliver an amendment • 1. The amendment was “reasonably relevant” to the purchase in deciding to enter into the purchase agreement; and • 2. No more than one year has elapsed after the transfer of title

Answer 2

• Applicant must be of “good reputation” o BCFSA inquire into any criminal records, history of bankruptcy and insolvency, as well as fraud, misappropriation of funds, etc. • Applicant is a person: o Must be atleast 19 years of age; and o Meet the educational and experience requirements under the rules • Mus not have been o Refused another license, or disciplined, by another regulatorty body o Disciplined by a professional body; or o Convicted of an offence For a reason that reveals the applicant to be unfit to be a licensee Licensees must apply to renew their licensee before the end of the 2-year term. If they do so, they can continue practicing until they year back from BCFSA.

Answer 3

Real estate errors and omissions insurance corporation (“E&O insurance corporation”) and indemnity plan Real estate compensation fund corporation RE foundation

Answer 4

fee simple life estate estates pur autre vie

Answer 5

easements restrictive covenants building schemes fixtures & chattels

Answer 6

joint tenancy tenancy in common

Answer 7

 the greatest estate u can own in Canada  the legal term for the maximum interest in land available to a person  “fee” means the estate can be inherited  “simple” meant there were no qualifications on who can inherit the estate

Answer 8

 Def: an interest in land to be enjoyed during a person’s life, and which ends on that person’s death.  Example: Mr. Jones’ Will: “To my spouse, Lacey, with remainder to my sibling, Remi.” • Life tenant (Lacey) is able to enjoy the property until death • Remainderman (Remi) receives property in fee simple upon Lacey’s life. o Refer to the estate pur autre vie for a different situation.

Answer 9

• Dictated by the document creating the life estate • Two possibilities: o If document provide a remaindermen, the remainderman will inherit the fee simple. o If there’s no remainderman, than it goes to the “reversioner” (former owner or the former owners heir).

Answer 10

 Def: the form of life estate where the measuring life is that of some other person  Ex. Mr. Jones’ Will “To my spouse, Lacey, with remainder to my sibling, Remi.” • Lacey sells her life estate to Pat – creating an estate per autre vie • Pats estate will terminate upon Lacey’s death

Answer 11

o A right to use a neighboring property in a specific way (without possessing it) for the benefit of the holder’s land. o The land receiving the benefit is called the dominant tenement o The land granting the benefit is called the servient tenement

Answer 12

o 1. There must be both a dominant and servient tenement o 2. The easement must accommodate the dominate tenement o 3. The easement must be capable of forming the subject matter of a grant

Answer 13

o A covenant restricting the use of land covenanter (the servient… o Requirements  It must be negative in nature  It must benefit or enhance the value of the covenantees land in some way  Both the benefitted and burdened land must be precisely identified in the agreement or document  The burden of the restriction must have been intended by the parties to bind the land  Notice must be given to new owner, its original covenanter transfers land

Answer 14

 The parties must receive their title from the same seller  The seller must have laid out and sole the property subject to restrictions  The seller must have intended that the benefit of the restrictions should bind each individual lot  The buyers must have purchased their individuals lots on the understanding that the restrictions were for the benefit of all the other lots

Answer 15

 Items that go with the land and become the property of the buyer upon completion • Things that increase the price of the home when buying one, like a really big rock

Answer 16

 Items that remain the personal property of the seller upon completion  Ex. a flat screen tv mounted on the wall.

Answer 17

test: what is the degree of affixation? what is the purpose of the affixation?

Answer 18

o Where two or more persons acquire an equal undivided interest in a property when one person dies, the remainder goes to the other partner. o Test – “Four Unities”  1. Unity of Time  2. Unity of Title  3. Unity of interest  4. Unity of Possession

Answer 19

 1. Severance of the joint tenancy by operation of law  2. Partition by mutual agreement of the tenants  3. Partition by a court order under the partition act.

Answer 20

o Where two or more persosn acqire interests in a single property. Each may sell or bequeath their interest and in the event of death, their interest becomes part of the estate o Joint tenancy allows for the other partner to iherit the resposnibile and ervything of the property once the other partners dies, however for tenancy for common, when one partner dies their responsibility goes to who they want it to go to. Point is, the deceased’s 50% ownership does not go to other partner. o Only has one unity: possession

Answer 21

1. By agreement to sell interest to each other 2. By agreement to sell to a third party 3. By a court order under the Partition of property Act.

Answer 22

o Existed pre-torrens o A buyer would check and verify the chain of title when considering to buy a property.  Ex. if a buyer wanted to buy a home, he woud look at who the current owner bought the property from, then they would look at the who the previous owner bought the property from, and again and again, etc. o This is called the chain of title • This is done to check if there wasn’t anything done to the property in the past, or if there was any fraud, etc. o Deed: a document used to transfer an interest in land to another o Chain of title: buyers had to verify the history of transactions

Answer 23

indefeasibility registration assurance principle

Answer 24

 Subject to certain exceptions, the Title Register is conclusive evidence that the person named as holding an estate in land is in fact entitled to that interest, and his holding is not subject to any condition or encumbrance other than those shown in The Register  1. Guaranteed title of the person named in certificate of title  2. Therefore, purchaser can rely on the ownership shown on the certificate of title  3. Over-rules common law doctrine of void deed  Indefeasibility: charges • Charges are not indefeasible in BC’s Torrens jurisdiction • Registration of charges on raises a rebuttable presumption that the charge is valid.

Answer 25

 1. Torrens – title passes at registration  2. Registration makes interests valid against 3rd parties  3. Unregistered titles are still effective between parties

Answer 26

a. Extremely broad “tory” intended to compensate victims who are harmed by carelessness of others i. Tort – civil wrong (as opposed to criminal wrongs) b. Negligence is about compensating a person (plaintiff) or losses they suffer due to the carelessness or mistakes of another (defendant) c. Requirements i. Defendant owes plaintiff a duty of care (people who you can reasonably foresee being affected by your actions incl. non-clients) 1. Don’t owe duty of care (DOC) to everyone the world: think railways workers case ii. Defendant breached the standard of care iii. Damages suffered as a result of breach were reasonably foreseeable

Answer 27

1. A person owes a duty to take care to all those whom he/she should reasonably foresee as being affected by his/ her actions

Answer 28

1. Duty to take the same care as a “reasonable person” would take in all circumstances.

Answer 29

1. Damages must have reasonable been in the contemplation of the D as a possible consequence.

Answer 30

Simply put, you said something you shouldn’t have, and someone relies on that and suffers damages b. Requirements: i. Untrue statement ii. Made negligently iii. Special relationship between the parties (skilled person or expert giving advice in course of business to a person who will reasonably rely on it) iv. Plaintiff must have relied on the statement and the reliance must have been reasonable

Answer 31

a. A false statement of fact made by a party who knows, or should know, that it is false, and is made with the intention of deceiving another b. Similar to negligent misrepresenaation, but also inlcuds an element of moral fraud, not just carelessness c. Two things you need to know: i. Person who made the statement either knew it was false, or made the statement recklessly ii. Does not need to be skilled or an expert

Answer 32

a. Licenses expected to be able to draft simple legally enforceable contracts in simple, accurate and understandable terms.

Answer 33

a. Acting as an agent on behalf of another rsults in an agency relationship, a types of Fidu. Relationship

Answer 34

a. Licensees can also face professional discipline from: i. The real estate council ii. The local real estate board

Answer 35

PCMLTFA aims to help authorities detect, investigate and deter money-laundering/ TF

Answer 36

o Compliance program o Know your client o Reporting o Record keeping

Answer 37

- AML “blueprint” that a licensees must understand and follow - Elements: o Compliance officer o Policies and procedures (written) o Risk assessment o Training program o Review of compliance program

Answer 38

- If an individual = identify them o 3 methods to do this:  Government-issues photo ID method, credit file method, dual process method - If an entity (corportation, partnerships, trust, etc.) =. Confirm the entity’s existence

Answer 39

- Terrorist property report must be filed without delay by a licensee when they know it is owned or correlated to a terrorist or group. - Large cash transactions o LCT report must be filed for all LCT’s - Suspicious transactions o ST report must filed asap when they determine that there are reasonable groups to suspect that a transactions is related to the commission of a money laundering or terrorist financing office.

Answer 40

- Commercial tenancies: governed by terms of lease and common law, and to a similar extent, the commercial tenancy act o Disputes usually resolved in court - Residential tenancies: governed mostly by residental tenancy act and tenancy agreement o Disputes usually resolved by residential tenancy act

Answer 41

o Essential terms  Parties  Rent  Premises rented  Term o Leases over 3 years must be in writing

Answer 42

o RTA states that tenancy agreements must be I writing, signed and dated by both the L and T, written so that a reasonable person can understand the terms, and delivered to T promptly o Tenancy agreements must contain…  Types of tenancy • Fixed term tenancy • Periodic tenancy

Answer 43

- Tenancies that continue to a certain period ot time jan 1- dec 31

Answer 44

 Ends automatically at the end of the fixed term  On the expiry of the term, the T must vacate and no notice is required from the L  If T remains in possession in the end of the fixed term commercial tenancy, and pays ren that the landlord accepts, a periodic tenancy will form.

Answer 45

 Residential Ieases longer than 20 years are considered commercial leases When a fixed term residential tenancy expires one of two things happens: When the term expires, unless the parties agree to a new fixed term, the tenancy automatically continues as a month-to-month (periodic) tenancy under the same terms as the original agreement Second, the agreement can end on the expiry date. There must be a prior written agreement for this to happen

Answer 46

s. 45 periodic tenancies - tenant may terminate by giving one months notice

Answer 47

for cause (s.47) - Reasons to end for cause examples o Repeatedly late paying rent o Significant intereference with others or seruoudly jeoparizied others safety pr rights

Answer 48

if landlord wishes to demolish and convert property into another type of property, such as non-residential property, the landlord can provide 4 months' notice.

Answer 49

no and tenant is entitled to one month of free rent, or payment in lieu

Answer 50

s. 44 (c)-(g) of RTA For cause (1 mo. - subject to RTB ending earlier) For non-payment of rent (10 days)

Answer 51

landlord or purchaser use (2 mos.) demolish or convert (4 mos.) tenant notice (1 mo.)

Answer 52

Renovations or repairs (order effective in 4 most.)

Answer 53

if a landlord wishes to Reno a rental uni, they must first apply to the RTB for an order that they be allowed to have possession of the unit (no less than 4 mos.) landlords can no longe simply provide notice to end tenancies to Reno/ repair rental properties. landlord must also pay on months rent to the tenant (or let the tenant stay one month for free) after Reno's are complete, tenant has the right to re-rent the unit at the rent determined by the landlord

Answer 54

tenancy agreement requires tenant to vacate AND 1) landlord intends to occupy; or 2) Lease was a sublease

Answer 55

- Some parts of the building/ land are owned by individual owners (“strata lots”)

Answer 56

- Some parts are owned by all of the owners, collectively (“common property”)

Answer 57

- every strat plan has a schedule of unit entitlement attached(form v) o Displays each strata lots proportionate ownership share, as a TIC, in the common property o Displays each strata lots share of common expenses - Each strta lots proprtiomate ownership and responsibility is based on that starta lots unti entitlement o The UE is based on a strta lots habitable area (the area of a residential strata lot that can be lived in, but does not indluces patios, balconies, garages, etc) - UE of strata lot/ total UE of all strata lots, and then multiply the product by the total contribution - SPA says that common expenses lke srata fees must be allocated based on UE - However, SPA allows owner to allocate on a different formula by unanimous resolution, which must be filed on title

Answer 58

- There are only a limited number of owners that can use this common property o Ex. storage space, parking space, etc. o LCP designation may appear in strta plan (changing the strata plan requires a unanimous vote) o The LCP designation may be made through a ¾ vote at a general meeting of strata corporation

Answer 59

o Used to give exclusive use of common property or a common asset to an owner/ tent o If the permission/ privilege would significantly change the common property’s use/ appearance, then owners must approve with ¾ vote at a general meeting  Otherwise the strat council can approve the privilege my simple majority

Answer 60

o An artificial legal “person” who has the same legal abilities as a living person (e.g. the strata corp can enter contracts or sue and can be sued) o Develop creates the strta corp by filing the strat plan in LTO o Difference between strat corp. and business corp:  Shareholders of business corp. are not personally liable for any judgements against the business corp.  However the owners of the starta corp are personally liable for payment of any judgement against the strata corp, based on the UE. o Manage, repair, insure common property, record keeping, and enforce bylaws and rules. o Formed by filing a strata plan with the land title office o Exists for as long as the strata plan is still filed with the land title office o All strata lot owners are members of the strata corp.

Answer 61

o Executive body elected by the strata members o Elected annually at AGM o Eligibility  (a) Owners  (b) Individuals representing a corporate owners  (c) Tenants who have assigned a landlord’s rights to stand for council  Other classes of people set out in strata bylaws

Answer 62

o Strata lot owners are responsible for adhering to the Strata bylaw and rules, and paying Strata fees and any special levies.

Answer 63

 Rights of a Strata lot owner • Use their strata lot • Benefit of common property • Ensure strata corp. operate in accordance with act, regulations, rules and rules.  Remedies he or she has against the Strata corp. or other owners • Sue for damages • Injunction – requiring them to perform their duties • Order to prevent or remedy unfair action

Answer 64

o Requersting information certificate from strta corp o Requtesing certifaicate of payment from strta crp o Indirectly, by requiring the seller to provide the strata records to the buyer under the contrat

Answer 65

o If the developer intends to rent one more strata lots s 139 of the strata propery act requires the developer to file a rental disclosure form o Rental disclosure form, a form prepared by the owner developer of the starta property containing information about the rental of strata lots that must be filed with the superintendent of real estate before the first strata lot is offered for sale  Number of strata lots that can be rented  Length of time that strata lots may be rented  Whether there are any bylaw that restricts te renal of starta lots

Answer 66

o Cooperative ownership: a form of property ownership whereby owners possess shares in a non-profit corporation that holds title to the land, including any buildings, and wherby owners of tehse shares are entitled to lease a unit in the building from the non-profit organization o Co-op  No individual fee simple title. Co-op acquires fee simple title  Bound the cooperative association act  Co-op can provide can indirect financing to owners  Rights of an owner to sell interest in co-op may be restricted o Strata  Strata lot owners have individual fee simple title to their strata lot  Bound by strata property act.

Answer 67

- Contributions are made by owners, generally via strata fees - Can be use to pay expenses that are consistent with the purpose of the fund (common expenses occurring at least once per year and the expense falls into one of the following categories: o It is authorized in the budget o It is approved by ¾ vote at a general meeting o The expense is an authorized (under the SPA) unapproved expense, which may be:  An expense which the council is allowed to pay without approval, up to a spending limit set in bylaws (or the lesser of 5% of total OF contributions for this year or 2,000)  An immediate expense that is required to ensure safety or prevent signficiant loss or damage, in which case only the min. amount necessary can be spent

Answer 68

- CRF must be seeded by developer when the first strata lot is conveyed to a purchaser o If the first converyance is within 1 year of depotiing the strata plan, seed is 5% of estimated operating expenses in interim budget o If first conveyance is more than 1 year after depositing strata plan, seed may be up to 25% of interim expected operating expenses, depending on certain factors - Additionally, apart from seeding the CRF, the inerim bidget must also include… - At the first annual general meeting, if the amount of money in the CRF is less than 25% of the estimated operating expenses for the 12 month period in the interim budget, the strata corp. must contribute to the CRF o Required contribution is 10% of the total budgeted contribution to the OF in the current strata corp. budget (meaning the budget that will be used for the coming year) - After the first AGM, the starta corp. must contribute to the CRF if the amount of money in the CRF is less than 25% of the total budgeted contribution to the OF for the last fiscal year o Required contribution is the lesser of:  10% of the total budgeted contribution to the OF for the current fiscal year or  The amount need to bring CRF up to 25% of the total budgeted contribution to the OF for the current fiscal year o If the CRF amount does not fall below these thresholds, then the contributions are optional - Used to pay expenses that are consistent with the purpose of the fund (occur less than once per year, or do not usually occur) AND the expenses falls within one of the following categories: o The expense is approved by a majority (50%+1) vote if the expense is one that was recommened in a depreciation report

Answer 69

- An engineer will estimate the repair and reaplcement costs for major items in the strata copr, and the expected life of these items - First report required within 6 months of the second AGM, and then a new report is needed once every three years afterwards

Answer 70

- Strata fees are usually monthly payments used for operating expenses and CRF contributions, per budget o Calculated based on UE - Special levies used to rasie money for major repairs and other unanticipated expenses hat cant be covered by CRF/OF o Also calculated based on UE o Approved by ¾ resolution of owners (council cannot impose levies) at general meetings if UE is used – if cost will be allocated differently, then unanimous vote is needed - Sometimes, special levies are approved before a starte lot is transferred to a purchaser o The seller is responsible to pay any portion of the special levy amount that must be paid before the completion date o The buyer is responsible to pay any portion of the special levy that must be paid after the completion date o (if the buyer expects a special levy will be approved before the completion date, buyer can seek compensation for the buyer’s portion of the special levy from the seller)

Answer 71

offer acceptance consideration legal intention capacity legal object genuine consent

Answer 72

false statement statement induced innocent party to act reasonable that the innocent party would rely on the statement

Answer 73

o This is a false statement made unknowingly o Innocent party can sue for recession prior to execution of contract and the plaintiff cannot sue for damages

Answer 74

latent defect patent defect stigma

Answer 75

o Defect that would be discoverable during the course of reasonable inspection.  This needs to be disclosed! o Material latent defect  Means a material defect that cannot be discerned through a reasonable inspection of the property

Answer 76

o Defect which is visible or can be discovered during the course of a reasonable inspection

Answer 77

o Subjective issues  What one might consider and issue, the other may not.  Ex. smells in an area  Ex. sex offender next door

Answer 78

common - both parties make the same mistake with a contract • Void o Mutual  Both parties make a mistake, but a different one in a contract • Voidable o Unilateral  One party makes a mistake • Voidable

Answer 79

- Performance - Agreement to waive performance or substitute another agreement - Nonfulfillment of condition precedent - Frustration - Breach of a condition of the contract which is accepted by the injured party

Answer 80

o Legal term for a “subject to” clause. In contract law, a condition precedent calls for the happening of some event for the performance of some act before the contract shall be binding upon the parties

Answer 81

- Ex. In the context of the termination of a contract, "performance" means both parties completed their obligations and the contract is over. If A and B have a contract where A gives B $5 and B gives A a ride to the mall, and they both do that, that is an example of performance which would terminate the contract. A and B no longer have obligations to each other, and the contract is over.

Answer 82

- Meeting minutes are the record that is kept of what has been discussed and decided in a meeting, what actions might be taken, who must take them, and when those actions must happen.

Answer 83

- Subject conditions that are agreed upon by the buyer before buying the property. - You cannot use conditions precedent to get out of a contract

Answer 84

o Statutory  Complies with the Law and Equity Act • Original promiser and assignee o Equitable  Does not comply with all the requirements under the Law and Equity Act • All three parties named in action

Answer 85

o Terminate the contract and sue for damages; o Continue the contract and sue for damages and; o Continue and contract and sue for specific performance

Answer 86

 1. Professional misconduct • A type of misconduct under RESA (real estate services act) that focses on competency in practice and technical breaches of RESA, regs, and Rules  2. Conduct unbecoming a license • A type of misconduct that is contrary to the best interests of the public, undermines public confidence in the industry or brings industry into disrepute

Answer 87

- Acting in a manner that is sincere and truthful and free of deceit o Transparency o Informing clearly o Not withholding info o No deception o Settling appropriate and realistic expectations o Following through promises o Truthful about knowledge and experience

Answer 88

- Services of the industry will only be used if the public can trust its professionals o Key points  Long time to build, quickly destroyed  Building and maintaining trust

Answer 89

- Acting ethically and doing the “right thing” o Behave professionally o Act objectively o Deal fairly and in good faith o Maintain competence (know limits) o Maintain confidentiality o Act with due care and due diligence o Have accountability for actions

Answer 90

 Contractual (e.g. listing agreement)  Tort laws • If u act negligently • If u cost them something  Agency and fiduciary duties

Answer 91

rules (3-3 and 3-4)

Answer 92

• 3-3:Duties owed to clients o Fiduciary duties  Confidentiality  Full disclosure  Avoid conflicts of interest  Act in the best interest of your client • 3-4: general duties to clients and non-clients o Acting honestly and with reasonable care and skill o Reasonably prudent; licensee would in comparable circumtances

Answer 93

- Describe the rationale duty behind the duty to report - Common obligation of professionals - Enforcing values of professional = public confidence - RESA – not explicit (but fundamental component) - Rules – 3-2 o Professional misconduct o Conduct unbecoming a licensee o Improper or negligent conduct - General – ethical decision making

Answer 94

- 1. Consider the situation and identify the potential ethical issues - 2. Identify the stakeholders - 3. Specify feasible alternatives for evaluation - 4. Evaluate each alternative in terms of ethical consequences - 5. Make and justify your choice

Answer 95

- Complaints -->Responses -->Investigations --> Disciplinary Hearings (informal and formal) o Formal hearing is in front of a discipline hearing penalties: o Reprimand o Suspension of membership o Fine o Costs o Expulsion o Orders to attend courses o Or usually a combination of the above

Answer 96

- Possess knowledge, skills and abilities that the principal does not - Due to geographical or other limitations, the agent is able to perform a certain action that the principal cannot - The principal does not have the time or desire to perform certain actions.

Answer 97

- Agency: o A relationship in which one-person (the agent) is granted the authority to represent and act for another person (the principal) dealings with others - Dual agency: o An agency relationship where the agent acts for multiple parties in a single…

Answer 98

- Sole agency relationship o Licensee represents the consumer as a client and does not represent any other party to the trade - “no agency” relationship o May provide limited trading services outside of an agency relationship, consumer is unrepresented - Dual agency relationship o Limited trading services to multiple parties in a trade of real estate o Represents each party as a “client”  Only permitted in extreme circumstances

Answer 99

- Under designated agency, while the clident stills signs a services contract with the brokerage, the client agrees that the brokerage will appoint one or more specific licensees (rather than all of its related licensees) to act as a sole agent(s) of the client.

Answer 100

- Some licensees use to engage in limited dual agency = situations that were sometimes not appropriate and the licensee could not meet their fiduciary duty to both clients

Answer 101

o A real estate professional may not be able to be completely loyal and impartial to two clients with competing interests o A real estate professional may not be able to properly advise those clients without improperly disclosing their confidential information to each other o A real estate professional acting as a dual agent might prioritize his or her own interest in earning the whole commission, rather than acting in the best interest of his or her clients.

Answer 102

- Unrepresented parties - Licensee may only: o Share general information and real estate statistics o Show property and provide factual information about the property o Provide standard real estate forms a contract - Licensee cannot: o Give advice on appropriate price o Give advice on terms and conditions to include in contract o Negotiate on behalf of unrepresented party o Share any client’s confidential information o Protect confidentiality of unrepresented party

Answer 103

o Disclosure of interest in trade form o Disclosure of representation in trading services o Disclosure of risks to unrepresented parties

Answer 104

o Contract of purchase and sale o Multiple listing contract

Answer 105

o An agreement under which the agent is given authority to perform actions on behalf of a principal, in return for remuneration

Answer 106

o An agency relationship that is established by the actions and conduct of the parties

Answer 107

o Where one-person (the principal) acts in such a way as to lead a third party to believe another person (the agent) has authority to act on behalf of the principal

Answer 108

- Express- the principl and agent agree to terminate - Termination by conduct- act of principl….

Answer 109

- Actual authority- Given to the agent by the principal o Express  Terms of a contract o Implied  Authority to carry out anything incidental to express authority o Usual or customary  Customs of the industry of the trade - Apparent authority o Through the operation of the doctrine of estoppel

Answer 110

o No disclosure of agency  Can be held liable as is he/ she was the principal o No authority or insufficient authority  An agent who makes a conyrct with a third party on behalf of the principal is presumed at law to have warranted or guaranteed that the agent had the appropriate authority to do so o Torts committed by agent  Ex. negligence, trespass, misrepresentation

Answer 111

- Conflicts respecting remuneration - Conflicts respecting current client - Conflicts respecting former clients - Other o Purchasing principal’s (clients)property o Selling own property to principal o Receiving referral fee from service provider referred to principal (e.g. home inspector)

Answer 112

- Duty to comply with agency agreement - Duty to remunerate agent - Duty to idemniy agent – common law right

Answer 113

- Identify the sections in the rules that deal with a licensee’s duty to client and others o Rule 3-3 (duties to clients) o Rule 3-4 (duties to act honestly o Rule 3-5 (duties to act with reasonable care and skill?

Answer 114

- Disclosure of representation in trading services - Disclosure of risks to unrepresented parties - Disclosure for residential tenancies - Disclosure when engaging in dual agency

Answer 115

- Disclosure of remuneration (5-11) o Disclosure of receiving remuneration thats not paid directly principal o Buyers agent. Is splitting the sellers agents remuneration - Disclosure to seller of expected remuneration o Offer for sale has been received

Answer 116

- Disclosure of intrest in trade o Licensee buys, sells, or rents real estate for themselves - Disclosure of latent defects - Notice relating to contract assignments o Standard term has been amended

Answer 117

o Section 59 of the Law and Equity Act specifies that contract dealing with land must be in writing (does not apply to leases of three years or less) in order to e enforceable

Answer 118

 Restitution of benefit received  Compensation for money spent relying on the contract  S. 59 remedies • If a court decides that an alleged gift or contract cannot be enforced, it may order either or both of….

Answer 119

o Party denying the contract acted in a way indicted its existence (estoppel) o Party seeking to enforce reasonably relied on the existence of the contract and in doing so changed his/ her position (usually by spending money)

Answer 120

 They prevent errors • Plan filed backwards. People registered on wrong title. • Miss portion of land. property goes over more than one legal title

Answer 121

- Names and occupations of parties - Description of property being sold - Description of price and related financing = certainty

Answer 122

- Protecting the seller – conditions precedent o Prequalification of purchaser o Time limit on satisfaction of conditions precedent o Use of time date (not just date)

Answer 123

o Deliver written notice to other party before deadline  Verbal not sufficient

Answer 124

o Timing  Acceptance - 24 hours of acceptance is in CPS  Subject removal?  Multiple? o Method or payment:  Certified cheque, bank draft, cash, or trust cheque  Uncertified cheque o Stakeholder  Held in trust unless both parties agree

Answer 125

o 1. Contracts must not be assignment without the written consent of the seller; and o 2. The seller is entitled to any profits resulting from an assignment of the contract by the buyer or any subsequent assignee.

Answer 126

Hold business actors accountable for mis-leading, deceptive, or anti-competitive practices

Answer 127

 Restraint of trade and misleading advertising • Restraint of trade (Real Estate exmaples): o Fixing specific minimum commission o Allocating territories, markets and customers o Fix the split o Restrict public marketing real property o Prohibit the advertising of commission rates o Set common fees for specific services o Control entry of licensee or firms • False or Misleading representations o No person shall, for the purpose of promoting, direclt , or indirectly, the supplt or use of a product or for the purpose of promoting, directly, or indirectly, any business interest, by any means whatever, knowlingly or recklessly….

Answer 128

o Efficiency (quantity of time and effort) o Satisfaction of parties at the end o No wasted resources left on the table (divide goods so that value of good is fully realized)

Answer 129

risk anticipation o Avoiding purchaser’s remorse o Document disclosures and disclaimers o Avail yourself to others’ experience o Continuing education risk shifting o Insurance o Referring out scertain work o Property disclosure statement o Third party experts risk control o Procedures and policies o Avoiding litigation flashpoint o Drafting agreements o Documenting due diligence o Seeking professional advice

Answer 130

 1. Mortgage of the equity of redemption  2. Deposit of the duplicate certificate title  3. Agreement to give a mortgage

Answer 131

o 1. Contract o 2. Evidence of a debt between the mortgagor and mortgagee o 3. A transfer of an interest in security for a loan.

Answer 132

prohibition against clogging stipulations for a collateral advantage

Answer 133

o 1. Clauses that prevent borrower from redeeming his/her property free and clear of mortgage o 2. Such clauses will have no effect o 3. Ex. Option to purchases property

Answer 134

o 1. Terms that give the lender advantages in addition to the security and interest payments. o 2. Can extend past the mortgage term  Unless it is a penalty, unfair or unconscionable o 3. Ex. owner of gas station purchases lenders automobile products

Answer 135

land title act personal covenant security in land

Answer 136

o LTA – Two-page form  Part (Form B): parties, legal description, signature…etc.  Part 2: all other mortgage terms

Answer 137

o That the mortgagor will pay the mortgage money and intertest… o Contractual promise to pay o Does not run with the land

Answer 138

o That the mortgagor has good title… o And that he or she has the right to convey the land.. o And that on default the mortgages shall have possession of the land… o Free from all encumbrances

Answer 139

o Acceleration clause  Entire principal amount due upon default o Omnibus clause  Amount not paid is added to the mortgage amount o Advance clause  Mortgage not bound to advance funds o Costs clause  If legal costs are incurred it, they will be covered on a solicitor-client basis.

Answer 140

o S. 3 – no interest mentioned, no interest payable o S. 10 – individuals can repay mortgage after 5 years o S. 6 & 7 – blended payments

Answer 141

Allows courts to intervene where transaction is “so harsh or adverse… as to be inequitable”

Answer 142

o Regulates persons who deal in mortgages within BC o Defines a mortgage brokers

Answer 143

 To acquire the residence  To make improvements  To the residence  To make expenditures for a household for family purposes; or  To refinance for one of the above three purposes

Answer 144

o Occurs when an original contract between the lender and seller is replaced by a new contract between a lender and the buyer o Allows the original borrower to be released from liability o Broader scope than Property Law Act

Answer 145

- Demand letter o First step before formal foreclosure proceedings o Accelerates loan - Petition and support affidavit & Service documents o Commences foreclosure proceedings o Filed in the supreme court o Lender that initiates foreclosure is the “petitioner” o Any interests below the petitioner are respondents - Petition hearing & Order Nisi o Lender can request an order nisi o May grant remedies o Defines length of redemption period (typically 6 months) o Order nisi = final order of the court - Conduct of sale (judicial sale) o Sale of land carried out under the supervision of the court o Allows lender exclusive right to list on the MLS o Borrower is still liable or entitled to the balance - Order of absolute foreclosure o Order forecloses of any right, title or interest in the mortgage properly for respondents o Respondents must deliver possession of property o Once granted petitioner can apply for title in the LTO

Answer 146

o A borrower may “redeem” the mortgage, or take back ownership of the property, free from the mort., upon payment of the debt o This right continues even after the due date of the mortgage, usually for approx. 6 months o It is an implied term in all mortgage agreements and it cannot be contacted out of

Answer 147

o The first mortgage grantd by a borrower with respect to their property o The effect of a legal mortgage is to transfer title of a property to a lender

Answer 148

o Any mortgages registered on a property after the first, legal mortgage (i.e. mortgage of the equity of redemption) – sometimes called “junior mortgages” o Duplicate certificate of title o Agreement to a title

Answer 149

- Lender A will retain full priority in three situations o No written notice of second mort was given by B  So, lender b must register its mort and give written notice to lender a about its mort it it wants priority over lender a’s further advances o Lender a was contractually required to advance the money o Lender a and lender b have agreed that lender a have priority (most common)

Answer 150

- Statutes give priority to the following types of claims or charges: o Builders liens o Wage liens o Starta corporation liens o Unpaid tax o Others

Answer 151

o Binding tems of the mort that are not written down in the mort documents  Equity of redemption is an implied term

Answer 152

o Terms of the mort that are written down  Historically, mort agreements were faily short as each was drafted by hand. By lawyers.  With the improvement of word processing and printing, morts began to grow longer and longer, which created problems for the land title officer when these lengthy morts were filed by banks  In 1990, the land title act was amended to introduce the form B and the concept of standard mort terms to address this issue o Term of the mort  The dates between which you are required to make monthly payments, usually 5 years or less (because of the interest act) o Amortization period  Period of time you would require to repay the loan, including interest, at a certain monthly payment amount (usually 25 or 30 years)  At the end of the initial term, need to “renew” the mort with the lender, switch lenders, or pay out the balance owing o Repayment and renewals  Two common misconceptions: • Lenders will always allow you to break your mort (i.e. prepay) prior to the end of the term in exchange for 3 months’ interest o Some mort have no prepayment penalty, some charge 3 mos interest, and some charge the “interest rate differential” which compensates the bank ofr the loss interst it is no longer going to receive ince youre paying the mort off early • At the end of the term, lendrs will always renew your mort

Answer 153

o Section 8: a lender cannot charge a higher rate of interest on money that is in arrears (i.e. in default) than the mort interst rate that would apply to the money that is not in arrears/ default (e.g. interest rate is normally 5%, but if you default, he interst rate increase to 10%) o Cannot disguise that higher interest rate as a “fee” or “penalty” o Ex. a mort loan bears interest of 3%. However, the mort loan document states that if a borrower defaults, then in addition to the 3%, the borrower will be charged an “indemnity fee” equal to 3 months interest. This “indemnity fee” would be in breach of section 8 o Ex. a mort that gives a discount which is taken away when the borrower defaults is also a breach of s. 8

Answer 154

federal provincial local

Answer 155

 Indirect control • Encountered in special circumstances o Ex. airports and fisheries  Ex. • Arbutus greenway • CR Rail vs City of Vancouver

Answer 156

 Agricultural land commission act • Agricultural land reserves established 1970’s to preserve agricultural land • Powers: o Pass regulations affecting ALR land o Exclude land from ALR o Allow non-farm use (application required) o Allow subdivision (application required)  Health act • Established public health departments responsible for maintaining the public health of the province  Local services act • Provincial govern. Enforces planning regulations • Rural areas where no other body exists  The islands trust act • Provincial govern. Assigned planning powers to the islands trust council • To simplify and standardize the planning process for gulf islands

Answer 157

 1. Regional districts • Province divided into 30 regional districts • Role varies depending on area • Some long-term planning powers • Ex. Garbage disposal  2. Municipal govern. • Villages • Towns • Cities • Municipal districts  3. Improvement districts • Construction, operation, and maintenance of utilities • Established after resident’s petition minister of municipal affairs • Power to levy taxes, borrow money, and expropriate land.

Answer 158

o Public health and safety  Building code regulations to prevent spread of fire  Subdivision regulations to prevent health hazard (i.e. improper water or sewer installations) o Protection of property values  Maintain existing property values  Zoning controls o Efficiency, convenience and appearance  Designed to be convenient for residents  Communities are arranged for efficient installing of utility systems o Conservation of natural resources  Ex. ALRs

Answer 159

o The legislation division of a region into separate districts with different regulations for land use  Frequently encountered restrictions • Restrictions on the number of buildings on a lot • Set-backs and yards • Height • Density • Home occupations • Off street parking • Signs

Answer 160

Usually initiated by property owners

Answer 161

building permits inspectors

Answer 162

local government act community charter Vancouver charter

Answer 163

regional districts municipalities improvement districts

Answer 164

o Public health and safety o Protection of property values o Efficiency, convenience, and appearance o Conservation of natural resources

Answer 165

- Aka official development plans in van - Optional for munici. And regional distric - OCPs encourage local govermenst to plan future growth and financial capacity for the growth - OCPs, if created, must contain policies on things like: o Residential developemtn required to meet future housing need o Location and phasing of public works like highways, sewers, water lines o Present and future public facilities - Not the same as bylaw, but any bylaws or permits after an OCP is enacted must be consistent with the OCP

Answer 166

- Zoning bylaws regulate only current land use, unlike OCPs which deal with current and future use

Answer 167

- A self-contained dweling located in another dwelling - Non-complianant secondary suites are “illegal suites” or “unauthorized accommodation” or “non-conforming suites” - Risk: if an illegal suite is discovered, owner may need to bring it into compliance with current codes/ bylaws… - Buyers (or listing) agents can easily confirm whether a suite islegal by contracting the local government o As a buyers agent, don’t simply rely on what the seller puts in the PDS – rules require you to discover relevant facts about the property the buyer may be acquiring o As a lisiting agent, before you make representations about a suite being legal, you should also takes steps to make sure that it is by contacting the local government  Advertsiign an illegal suite as a possible source of reventue is false and misleading advertising which is prohibited by the rules

Answer 168

o May not be permitted under zoning bylaws o May not have been constructed with proper suites

Answer 169

o Non-conforming uses are where a property previously complied with zoning, but no long dpes do because of a change in the zoning

Answer 170

- Subject to this part, every recipient of a taxable supply made in Canada shal pay to her majesty in right of Canada tax in respect of the supply calculated at the rate of 5% on the value of the consideration for the supply. - Taxable supply is “a supply that is made in the coruse of a commercial activity”. - Supply means to provide property (including real property like fee simple intrests, or even an option to purchase real property) or services in any manner whatever.

Answer 171

o A developer who builds/ substantially renovates a residential property for sale o A person buys a residential property after the construction is complete and then resells it before it is occupied as a residence o A person who is not a developer (Called “one-off” developers in the manual) but who builds/ substantially renovates a residential property and then sells it befoe they occupy It as their residence (or they only occupy it for a short time)

Answer 172

- A builder may be deemed to have supplied a newly constructed/ renovated residential property to themselves (and would be responsible to pay gst) if: o They move into the propert (even tho these no actual sale) o They rent out the home to a long-term tenant before an actual sale

Answer 173

March 31st multiple owners must submit one for each owner

Answer 174

community charter - owner is taxed assessment act - registered owner is taxed taxed at market value land is taxed improvements are taxed • Any buildings, fixture, structure or similar thing constructed or placed on or in land or water over land or on another improvement

Answer 175

o Property assessment review panel  Onus is on the complainant o Property assessment appeal board

Answer 176

o Intro o Sources o Three dates o Debit or credit o Items on a statement

Answer 177

The license the conveyancer will coduct a title search on myLTSA to verify info in Contract o Errors in terms relating to title can result in:  A potentially voidable contract  Liability for the licensee  Loss of commission

Answer 178

o Completion date  The date the title is transferred and seller becomes entitled to the sale proceeds o Possession date  The date the buyer is entitled to possession of the property o Adjustment date  The date set for the adjustment of taxes, interests, rents, etc.

Answer 179

o A lawyer or notary who handles the land title officer filling relating to the sale of the property o Conveyancers will require information for:  Tax, water, rent, and other adjustsments  Loan information for buyer’s new mortgage  Balance payable by seller to discharge existing mortgage

Answer 180

survey title insurance

Answer 181

o Form A transfer o PTT form o Buyers and seller statements of adjustments (SOAs) o Mortgage documents like form B o Balance due to complete from buyer o These documents are held by the conveyancer on undertakings

Answer 182

o Registering docs into LTO  On closing date, the conevyaner will check title once again to make sure there is nothing unexpected (liens, CPLs)  Form a is then sent to lto for registration, along with mortage docs (form B)  Once docs are sent for filing, the lto will acknowledge receipt and show that they are “pending”  Once the lto shows them pending, BC conveyancers will make closing payments  The LTO will check the pending docs and sort out any issues with the conveyancer – very rare for applications to be rejected.

Answer 183

o A statement of adjustments provide detailed info concerning the transaction specific to each party  Seller SOA – net sale proceeds  Buyer SOA– balance owed o Statements for buyer and sellers are not comprised of identical so they will not be the same.

Answer 184

• Primary sources o The contract of purchase and sale • Other sources o Property tax statements, mortgage payout statements, electivity bills, etc.

Answer 185

 Amounts owed by the party  Increases the cash needed to close for buyer  Decreases the cash received by seller on closing

Answer 186

 Amounts owed to or already paid by the party  Decreases the amount of cashed need to close for buyer  Increases cash received by seller on closing

Answer 187

The buyer!

Answer 188

 Whereas property taxes ae paid on a yearly basis, rental revenues are earned on a monthly basis  Expeneses like utilities are also paid on a monthly basis  Monthly revenues/ expenses are adjusted according to the days in each month, rather than the days in each year

Answer 189

o Focuses on competency in practice and technical breaches of RESA and the Rules.

Answer 190

o 1. Contrary to the best interests of the public; o 2. Undermines public confidence in the real estate industry; or o 3. Brings the real estate industry into disrepute

Answer 191

o Applicants must be fit to be licensed (Section, 10, RESA) o Licensees must also promply notify their regulator and managing broker of certain events (Section 23, Rules)

Answer 192

 Contractual dual  Tort law duties  Agency and fiduciary duties

Answer 193

 The rules (sections 30 and 33); and  RESA (sections 35(1) and (2))

Answer 194

- Conduct unbecoming a licensee (section 35(2), RESA) - Reasonableness standard (section 33, RESA)

Answer 195

- RESA (section 35): o The duty to report misconduct directly relates to conduct unbecoming a licensee - Profession is a shared responsibility o Licensees have an important role in maintaining the integrity of the real estate profession

Answer 196

- A contact that never had any legal existence or effect and which is not capable of being enforced

Answer 197

- A contract that offends against public policy or statute

Answer 198

- A contract which exists until repudiated by a party entitled to do so, at which time it becomes void.

Answer 199

- A contract which has all the essential elements of a valid contract, but which cannot be sued upon for some procedural reason.

Answer 200

 1. Infancy • In BC, this means a person younger than 19 years of age  2. Insanity • 1. Inability to understand the terms of the contract • 2. Inability to understand how tge contract will adffect tehir interests • 3. The other party has knowledge of the first patys mental capacity  3. Drunkenness  4. Lack of capacity of a corporation

Answer 201

- 1. Performacne o All parties to the contract perfrom their respective obligations - 2. Agreement o The peraties agree to terminae the contract… - 3. Nonfulfillment of a condition precedent o Condition precedent  Calls for the happeneing of some event or the performance of some act before the contrac will be binding on the parties o If the condition precedent is not fulfilled, the contract never becomes a bidning legal document. - 4. Frustration o Where the exitsnce of a specific thing is necessary fro perfroance of the contract, the duty for performacen of the contract, th euty to perform is discharged if the thing, for reasons beyond ones control, is no longer in exisence… - 5. Breach of a condition accepted by the injured party

Answer 202

 Damages (money)  Specific performance (order to complete transaction)  Injunction (order to do something/ stop doing something)  Quantum meruit (fee for service)

Answer 203

o Information about property, including:  Financial encumbrances (e.g. mortgage)  Type of dwelling  Size of dwelling and property o If there ia sounds factual basis for suspecting that information from the seller is incorrect or misleading, the licensee has a duty to verify it

Answer 204

 Agreements to: • Fix specific or minimum commission rates on property transactions • Allocate territories, markets, or customers • Fix the split between listing and selling licensees; or • Set common fees for specific services

Answer 205

 Agreements between competitors that substantially prevent or lessen, or are likely to substantially prevent or lessen, competition in the marketplace

Answer 206

 No person shall, for the purpose of directly or indirectly romoting the supply or use of a product or any business interest, knowingly or recklessly make a reperesentaion to the public that is false or misleading in a material respect.

Answer 207

 The civil sanction is very similar to the criminal sanction, except there is no requirement to prove that the deceptive practices were made knowingly or recklessly

Answer 208

 Price maintenance (section 76)  Sale above advertised price (section 74.01)

Answer 209

 Don’t collude  Don’t discriminate  Don’t mislead

Answer 210

• Collect, use, and disclose personal information of their clients and customers according to specific rules • Ensure adequate polcieis and procedures are in place to protect information as the law requires • Create internal processes to handle inquiries, complaints, and requests from people for access to their own information.

Answer 211

- Includes registered owner information as well as legal description and civil address of property - Title search can be obtained online - Nominal fee

Answer 212

o Names and occupations of the parties  Joint tenants vs tenants in common o Description of the property being sold  Legal description, civic address, and chattels o Description of the price and related financing  Mortgages and agreements for sale o Terms, conditions, and warranties  Term: a promise • Condition: a fundamental term o Breach may equal termination of contract • Warranty: a subsidiary term o Breach may not equal termination of contract o Deposit  An amount of money deposited with the brokerage by the purchaser when an offer to purchase is made

Answer 213

o Calls for the happening of some event or the performance of some act before the contract is binding…

Answer 214

o A condition or event the occurrence of which will discharge the principal obligations of a party to the contract  Ex. if the buyer defaults on any of the buyers deposit obligations, the seller may choose to terminate the contract.

Answer 215

o A subject clause may not be too subjective – otherwise, there will be no binding contract o There will be no binding contract if one party has the sole discretion whether to proceed with the sale o To remove a subhect clause, the removal must be delivered in writing prior to the subject removal deadline.

Answer 216

 Prequalification of the purchaser  Time lmit on satisfaction of condition precedent  The use of a time clause

Answer 217

o The contract must not be assigned without the written consent of the seller; and o The seller is entitled to any profit resulting from an assignment of the contract by the buyer or any subsequent assignee.

Answer 218

o Deposit of the duplicate certificate of title o By an agreement to give a mortgage o By disguising a mortgage as a transfer  Substance over form

Answer 219

 Part 1 • Parties, legal description of property, sign of parties  Part 2 • Terms of mort

Answer 220

- Similar to conventional mort - The seller “takes back” a mortgage from the buyer for part of the sale price of the property to facilitate the sale - Vendor = mortgagee - Purchaser = mortgagor

Answer 221

- The lender makes a series of payments to the borrower over the term of the mort - At the end of the term, the loan balance and interest is repaid by: o Refinancing o Sale of the property o Estate of the borrower

Answer 222

- Short term o Interim financing - Borrower receives a loan and grants a mort to the lender for a short period of time while long-term financing is being pursued - Often see it when a borrower has purchased a new property but has not sold their existing property

Answer 223

o Demand letter o Foreclosure proceedings are commenced when the lender files a petition in BCSC with a supporting affidavit setting our the factual basis for the petition and to support the refief sought o All respondents - The order nisi o A final order includes  Declaration  Declaration  Amount  Order  Order

Answer 224

- two or more people - expectation of sharing of profit - each partner personally liable for themselves and the other partners - not a separate taxable entity

Answer 225

- consists of one or more general partners and one or more limited partners - general partner – unlimited liability - limited partner – liability limited to amount invested - One or more limited partners (cannot take part in day to day operations) with liability limited to amount paid into partnership - Both types of partners are taxed on personal income

Answer 226

- taxes – separate taxable entity, pay (lower) coporate taxes, and provide for additional deductable expenses. - income splitting (via non-voting shares) to family members – to lower taxes - tax deferral ($ can be kept within the PREC)

Answer 227

- a vehicle for collectively investing (family trust or REIT) - separate legal entity - asset held “in trust” for beneficial owner” - trustee manages the assets on their behalf - beneficiary owns “right” to income, not the asset itself - taxed in the hands of the beneficiary (benefit) - real estate investment trust (REIT) – trust units are sold to investors

Answer 228

- revenue should be recognized by an enterprise when it is earned (accrual basis) , not necessarily when cash is received (Cash basis). E.g. real estate commission revenue

Answer 229

- match expenses with the revenues they generate – in the same period

Answer 230

- expenses need to be “material enough” (i.e…

Answer 231

- accounting information must be reported on objective and verifiable information - aligned with the cost principle

Answer 232

o All operating expenses (e.g. heat, A/C, insurance, property taxes, maintenance, wages, etc.)

Answer 233

o Cost of borrowing, bank loans/ debt

Answer 234

o The cost of purchase or manufacture goods for sale

Answer 235

- The process of developing an opinion of value - An estimate of the value of an interest in real property

Answer 236

- 1. Turnover is low: few transactions, so limited data. - 2. Properties are uiqye (heterogeneous) – so difficult to compare - 3. Long-lived – properties last far beyond demand and supply cycles, so need to account for time value changes. - 4. Property markets are local (fixed)

Answer 237

- Consistency o Once a method or approach for recording accouting information is adopted, the same approach should be followed in future years - Objectivity o All amounts entered onto the financial statements must be objective (unbiased) and verifiable (i.e., by a third party) - Fiscal year o Calendar year for individuals Jan 1 to Dec 31 - Cost o “Historic cost principle” o Record the amount paid for an asset - Revenue recognition o Revenue should be recognized (put inot the financial statements) when earned, not necessarily when received - Matching o Expenses should be recognized (and recorded) in the same period as the revenues they generated - Materiality o Low-cost items (assets) may be expenses immediately and not depreciated o The effort to allocate the costs over the priod of use if greater than any benefit generated from the additional information o Will not have an impact on any users decisions o Examples: office supplies

Answer 238

o At a specific date, the BS lists the assets, liabilities, and owners equity o Assets: what the business owns o Libailites: what the business owes to investors o balance sheet assets = liabilities + owners equity

Answer 239

o CCA is the amount of depreciation that the Canada revenue agency will allow for tax purposes that are prescribed in the income tax act o Assets are grouped into classes, and CCA is calculated using the aggregate bok value (called the Undpreacited capital cost (UCC) of the class rather than on individual assets o The CRA list the asset classes and the allowable tax rates (and methods) in the tax code. For example buildings (after 1987) Class 1: 4% per year o Generally cannot create a loss (negatve tatable income) using CCA o Only one-half of the maximum CCA can be claimed in year 1 o No CCA claim allowed in the year an asset is sold

Answer 240

because real property and markets are different than other assets/ markets: low turnover rate it is unique it is durable, long lifespan highly local markets and immobile

Answer 241

- Formal apprisals are needed for: o Mortage finance (market reason) o Expropriation (statutory reason) o Property tax assessment (statutory reason) o Insurance and financial (market reason) o Legal: estate planning, gifts, and divorce (statutory reason) - Informal appraisals: o Any time properties are bought or sold (market reason)

Answer 242

- Anyone - BC has no licensing requirement for appraisers

Answer 243

subjective value objective value value in exchange subjective value

Answer 244

o Rights of ownership (interests in land) o Physaicl property (location, improvements, amenities)

Answer 245

house, lot, location (subject property information) neighbourhood economic factors like inflation, interest rates, exchange rates, etc. highest and best use

Answer 246

comparative methods cost method income method residual method market comparison method

Answer 247

o (1) IFRS: international financial reporting standards: used by for publically traded companies o (2) ASPE: Accounting standards for private enterprise also known as PE-GAAP: Private enterprise generally accepted accounting principles used by non-publically traded (private) companies

Answer 248

o Use x% o Depreciation per year = cost – salvage value/ remaining economic life (years) o Total depreciation Depre. Per year multiplied by the effective age of the building. All difficult to measure.

Answer 249

- Limited practical appeal, last resort use - Used where separate land/ builing values needed, e.g., insurance appraisals - Used for unique properties – churches, stadiums, factories, etc. – when little comparison data available

Answer 250

- Does cost equal market value? - Depreciation calculations are difficult, particularly with very old buildings

Answer 251

- Income or investment approach o Market value is equal to present value of all future benefits from the property

Answer 252

o Economic age, not physical age o No objective way to determine economic life o Very long economic life, dpere./ year is negligible o Builings deprecaite, but land appreciates o For similar buildings, difficult to know if/ how depreciation is relevant ot vendor/ purchaser

Answer 253

o Real property taxes o Insurance policies

Answer 254

o Manuageemnt costs o Utilties o Maintenance o Wages o Garbage removal o = net operating income

Answer 255

Depreciation income tax CCA Debt Services

Answer 256

o Manuageemnt costs o Utilties o Maintenance o Wages o Garbage removal o = net operating income

Answer 257

o The return an investor requires for investing in a property to receive the actual net operating income

Answer 258

NOI/ sale price = Cap price. o NOI = 45,000, recently sold for 562,000. What is the return?  NOI/ sale price = 45,000/ 562,000 = 0.08007 or 8% (Cap rate or return)

Answer 259

NOI/ interest rate = Market value

Answer 260

Specific Performance Injunction Quantum Meruit: As much as he deserves NOTE: Specific performance is generally not granted where the court feels that damages are a sufficient remedy

Answer 261

Provincial Government delegates powers regarding property and civil rights to the third level of government i.e. municipalities.

Answer 262

This is private law that is of no direct concern to the state (breach of contract, agency, and tort). Civil law is the most important law to the licensee, particularly real property law.

Answer 263

Public law includes areas of law that deal with the constitution (tax law, constitutional law, and criminal law). It addresses the disagreements with the Government or government agencies. E.g. Income Tax disputes are addressed by public law.

Answer 264

Our Common Law system is based on an adversarial process in which each of the two opposing parties presents its point of view to an impartial Trier of fact whose decision is binding on both parties.

Answer 265

Small Claims Court B.C. Supreme Court

Answer 266

B.C. Court of Appeal Supreme Court of Canada

Answer 267

Lowest trial court Hears cases involving claims of 25 000 or less. Claim must be filed in the Small Claims Court nearest to where the defendant lives or where the cause of action arose

Answer 268

Highest trial court and appeal court for small claims court decision No territorial or monetary limitations exist

Answer 269

Highest appellate court in BC 3, 5 OR 7 judges hear appeals from the B.C. Supreme Court. Considers legal issues only. No evidence is reheard. The decision of the majority of the judges decides the matter.

Answer 270

Highest appellate court in Canada Can decide not to hear an appeal. LEGAL issues only, no evidence will be reheard. 3, 5, 7 0r 9 judges hear the appeal. Majority decision of the judges decides the matter

Answer 271

If the judgment debtor has assets, they can be seized and sold. Plaintiff can request a Writ of Execution from the court to the sheriff. Sheriff can seize and sell enough of the debtor’s assets to pay the judgment + the cost of seizure. If the debtor has no assets, the sheriff returns the Writ to the court marked “nulla bona” or “no goods”.

Answer 272

Where a third person owes money to the judgment debtor, a garnishing order can be served on the third person to pay the money into court instead of the debtor. Wages or bank accounts are two common forms of the debt that may be subject to a garnishing order. It is not possible to garnish all of a judgment debtor’s wages.

Answer 273

1. 19 years of age 2. Of good reputation 3. Education(UBC examination)

Answer 274

1. Be 19years of age 2. Have good reputation 3. have two years of experience as a licensee 4. Education (UBC examination)

Answer 275

1. Provide financial statements of brokerage. 2. Appoint one managing broker.

Answer 276

1. Trading of properties 2. Trading of businesses 3. Collection of rent 4. Selling of mortgages 5. Leasing the property

Answer 277

The persons who can do real estate business or who are exempted from real estate license but still can buy or sell property are: 1. Lawyers dealing with a case 2. Accountants: For sale of business 3. Employees of mega construction companies

Answer 278

BCFSA consists of 16 members: All members of BCFSA are publically appointed by the Lieutenant Governor in Council, bringing a wide range of expertise in regulatory and governance best practices.

Answer 279

1. Issue and renew real estate licenses 2. To collect premium for error and omission insurance 3. To take disciplinary action against members and brokerages 4. To implement laws

Answer 280

1. To implement Code of Ethics (Standard to maintain) 2. To run MLS (Multiple Listing System)

Answer 281

1. Property description 2. Names of the parties (Purchaser and Seller) 3. Price at which property has been sold 4. Commission paid

Answer 282

1. MLS date 2. Names of financial institutes (example: name of a bank)

Answer 283

If there are five or more lots developed then disclosure statement has to be sent to Superintendent of Real Estate. If the property has been sold in B.C. without the disclosure statement to superintendent, the purchaser can rescind (cancel) the contract within 7 days. If the property has been sold without disclosure statement outside B.C. then the purchaser can rescind the contract within one year.

Answer 284

Any advertising must include the name of the brokerage. If advertisement includes the name of managing broker, associate broker or representative, it must be the licensed name of the individual. If an office address is identified, it must be the brokerage office (not licensee’s home office address).

Answer 285

You must disclose that you are a licensee to the owner of the real estate if you or an associate licensee is acquiring real estate. Similarly, if you are selling real estate, you must disclose that you are a licensee.

Answer 286

A brokerage must keep a real estate trade record sheet for each transaction where the brokerage or licensee holds or receives money. A brokerage must have at least one trust account in a bank, trust company or credit union.

Answer 287

Real Estate Boards and real estate brokerages can not fix commission rates. It is illegal to enter into an agreement for a net listing i.e. the commission will be any amount realized over and above a specific sale price.

Answer 288

A brokerage is vicariously liable for any misrepresentation made by a licensee, even if the brokerage is not aware of misrepresentation.

Answer 289

A brokerage holds money as a stakeholder and is not an agent for one of the parties unless the parties agree otherwise.

Answer 290

(a) land or real property and (b) personal property.

Answer 291

Land is not subject to ownership except by the Crown. The only thing that is subject to ownership is an estate in land. An estate is a bundle of rights held by the owner.

Answer 292

A life estate lasts for the lifetime of the holder (life tenant) and terminates upon his/her death. A life tenant may use the land and receive any revenue generated from it. A life estate is registered as a charge on the fee simple title.

Answer 293

If a life tenant disposes off the property to another person, the third party receives an estate known as a pur autre vie (an estate based on the life of another person). The estate ends on the death of the life tenant. Upon the death of the life tenant, the estate will pass to the “remainderman”.

Answer 294

Voluntary Waste: Direct positive acts which result in damage to property beyond the use of a life tenant. Life tenant will be liable to the remainderman for this type of waste Permissive Waste: Allowing property to deteriorate. Life tenant is not liable to the remainderman. Ameliorating Waste: Direct positive acts that improve property. Life tenant is liable to the remainderman

Answer 295

Courts of equity created a 4th category of waste known as Equitable Waste. For a life tenant to be exempt from liability for this type of waste, the document creating the life tenancy must expressly provide against the liability for equitable waste.

Answer 296

The remainderman or reversioner must pay any principael owing on the mortgage and insurance premiums.

Answer 297

• Easements • Restrictive covenants • Profits a prendre

Answer 298

Easements can be granted for any length of time. They may be granted by: • Statute • An express document • Implication of law

Answer 299

An easement will be deemed to be released if, the dominant owner shows an intention to release it by abandonment, or an express agreement is made between the parties.

Answer 300

1. Can be released by an agreement between the parties (must be current owners). 2. It ceases to be enforceable if the neighborhood has changed so as to make enforcement useless

Answer 301

1. All parties must receive their title from the same vendor (initial purchaser may sell to others without affecting the building scheme) 2. The vendor must have sold the property subject to restrictions that apply equally to all of the lots 3. The benefit of the restrictions must bind each individual lot 4. The purchasers must have purchased their individual lots on the understanding that the restrictions were for the benefit of all the lots

Answer 302

A landowner has the rights to airspace above his/her property only to the extent that he can make effective use of it. This can be altered by statute. The federal Aviation Act allows aircraft to pass through it without liability for lawsuits if there is no damage caused.

Answer 303

The provincial government retains most subsurface rights i.e. precious minerals, metals and petroleum products

Answer 304

Therefore, the courts have devised a two-part test Degree of Affixation: Articles that are affixed, even slightly, will be considered fixtures unless circumstances show that they were intended to be chattels. Purpose of Affixation: If an item is affixed for the better use or enjoyment of the object, it will be considered a chattel. If the item is affixed to enhance the land, it will probably be considered a fixture.

Answer 305

• The forged deed (fraud, forgery must be proven) • A deed given in exchange for an illegal act or thing • The deed signed in circumstances where the party can plead non est factum

Answer 306

The main objects of the Torrens system are to provide security in the holding of interests in real property and to remove the need for looking back through old title documents.

Answer 307

The principle of indefeasibility means that the title of an innocent purchaser who purchased for valuable consideration from the registered owner in fee simple cannot be annulled. These purchasers can keep their interest in land even if the registered owner has acquired title by forgery. However, persons acquiring an interest in land by fraud are not protected by the Indefeasibility Principle.

Answer 308

1. Reservations contained in the original or other Crown grant 2. Federal or Provincial taxes, rates or assessments, etc. 3. Municipal charges, rates or assessments, etc. 4. Leases for terms of three years or less where the tenant is in actual occupation 5. Highways or public rights-of-way, watercourses, public easements, etc. 6. Rights of expropriation or to an escheat 7. A caution, caveat, charge, builder’s lien, judgment, certificate of pending litigation, etc. noted or endorsed on the certificate of title 8. The right of a person to show that the land is, by wrong description of boundaries, included in the certificate of title 9. Fraud, including forgery, by the registered owner 10. A restrictive condition imposed on the land by the Forest Act that is endorsed on title

Answer 309

Abolition of the Doctrine of Notice means that you do not have to search back through deeds anymore. The person purchasing only needs to be concerned with those interests contained on the register. This is subject to an exception of “fraud”.

Answer 310

The Assurance Fund was established to compensate persons that lost their rights to land by dishonest means. To qualify for compensation from the fund, a claimant must prove the following: • That the claimant has lost an interest or estate in land; • That the claimant cannot recover it by a court action; • That if the Land Title Act had not been passed, the claimant would have recovered the interest at common law by a court action

Answer 311

In some cases, a person holds a property ‘in trust’ for the benefit of another. The person holding the property is known as the “trustee”. Notation of Trust is made on the title, and the trust document is filed in the Land Title Office.

Answer 312

There is a prescribed form for most types of transactions. Other forms can be used only by permission of the Registrar.

Answer 313

caveat judgement builder's lien registration manufactured homes

Answer 314

It is wrongful entering or placing something on another’s land. Trespass is actionable per se-physical damage does not need to occur for a legal action to succeed. Remedies 1. Damages 2. Injunction 3. Self help

Answer 315

Private Nuisance A private nuisance involves some use of a person’s own property which interferes with the use and enjoyment of, or cause damage to the property of another. Valid Remedies: 1. Damages 2. Injunction 3. Abatement: Peaceful prevention of the nuisance- notice should be given to cut down over hanging branches

Answer 316

1. The nuisance is the unavoidable result of statutorily authorized activity. (Taking a municipal business license does not qualify for the above statutorily authorized activity). 2. The damage suffered is trifling in nature (of little consequences).

Answer 317

Occupier is one who is in physical possession of the property and having responsibility for and control over the condition of the premises and the activities conducted on the premises.

Answer 318

1. Trespasser: Responsibility of the occupier is very limited but he/she cannot intentionally harm the trespasser. 2. Licensee: Licensee is a person who comes on the property with express or implied permission of the occupier for the purpose in which the occupier has no economic interest. E.g. Mail delivery: warning of dangers must be given. 3. Invitee: Invitee is a person who enters the property with the permission of the occupier and for a purpose in which the occupier has an economic interest. E.g. Customers to retail store. Occupier should keep the invitee safe from all dangers which he knows and from all those dangers which he ought to know. 4. Children: Occupier owes the highest duty of care towards the children.

Answer 319

A lease creates an interest in land and it runs with the land; therefore a lease binds successors. Further a lease creates a landlord/tenant situation, but a license does not. Generally speaking a lease creates an exclusive possession. A license to occupy is a contract between two parties and does not run with the land.

Answer 320

Commercial Tenancies are governed completely by common law, the actual terms of the lease and the Commercial Tenancy Act. The Residential Tenancy Act governs residential tenancies. This Act covers dwellings used for residential purposes

Answer 321

Commercial: Time period of more than three years requires a lease in writing to comply with the Law and Equity Act. It is strongly recommended that a lease always be in writing regardless in order to avoid disputes. A lease document must have the following: • Names of the parties • Description of the premises • Start date of the lease • Duration of the Lease • Rent to be paid • Any other material term of the contract A commercial lease must cover matters in detail, or otherwise common law can impose unexpected obligations on the parties. Matters not covered in a residential tenancy agreement are covered by the commercial Act.

Answer 322

Any agreement after 1996 is subject to the Tenancy Agreement Regulation, which requires a tenancy agreement be in writing, signed and dated by both parties, and written in a manner that is easily understood. Each tenancy agreement must contain the following terms: • Legal names of the landlord and tenant • Address of the premises • Address and telephone number of the landlord/landlord's agent • The amount of rent and frequency of payments • The day of the month the rent is due • The amount of the security deposit and the date paid • The date the tenancy starts • Whether the tenancy is daily, weekly, monthly or fixed term Where there is a fixed term, it must be specified, beginning and end and whether the tenancy may continue at the end. NOTE: There is no need to maintain the professional and previous address of the tenant.

Answer 323

This tenancy automatically renews itself on the last day of the term for a further term of the same length until either party with proper notice terminates it.

Answer 324

Creation: Express terms of the lease can create a periodic commercial tenancy or It can be created by implication of law, this happens when the tenant stays on the premises and pays rent which the landlord accepts.

Answer 325

Creation: When fixed terms end, they automatically become periodic unless the parties agree otherwise. Termination by the landlord: Can only take place for specific reasons: • Proper notice of termination in accordance with the act • Where the tenant vacates or abandons the property • Fixed term agreement and term expires • Mutual agreement

Answer 326

Non-payment of rent • The landlord can give notice of end of tenancy to be effective not earlier than 10 business days after the date the notice is given. • A tenant may, within 5 business days after receiving notice pay all rent due and any notice will be void. For Cause: The landlord can give notice of end of tenancy if any of the following occurs: • The enjoyment of others has been unreasonably disturbed. • Extraordinary damages have occurred • The tenant has failed to give the security deposit within 30 days • The number of persons permanently occupying the premises is unreasonable The notice must be for at least one month Landlord Use of Property Under these circumstances notice can be given to the tenant for certain reasons such as the property has been sold and the new purchasers wish to occupy Notice must be at least for 2 months and one month rent free accommodation. If there is a lease, the expiry date applies. Termination by Tenant I f there is no fixed agreement; the tenant can give notice before the Iast day of the rental period to be effective one month later. Form of Notice A landlord has to give notice on a prescribed form: in writing and signed by LL & tenant Residential Tenancy Arbitrations Arbitrators facilitate a simple and inexpensive way of settling disputes in residential tenancies. It is not available in commercial tenancies.

Answer 327

Commercial: A landlord can seize the tenant’s goods and eventually sell them to satisfy a claim for rent owing Residential: No such provision

Answer 328

Commercial: Amount is left open to the market place, as is possible. No interest payable. Residential: A Security deposit must be paid within 30 days, cannot exceed half a month's rent. LL must pay interest on the deposit (Annual Compounding).

Answer 329

Commercial: Unless expressly prohibited the tenant has the right to assign. Residential: With the LL consent.

Answer 330

Commercial: A landlord is not obligated to mitigate.

Answer 331

Commercial: If the tenant cannot get possession the only remedy would be sue for damages. Residential: The residential tenant is not governed by this and can gain an order for possession if necessary. The residential tenant is not limited to damages.

Answer 332

Commercial and Residential: This assures the tenant of the use and enjoyment of the premises for all usual purposes without interference from the LL, also ensures against defective title, if the tenant’s rights to remain on premises is attacked.

Answer 333

Commercial and Residential: The LL cannot take away any rights which he has created for the tenant.

Answer 334

Commercial: No obligation Residential: A LL has a duty to repair and maintain all types of residential premises in order that the property is safe for human habitation.

Answer 335

The strata corporation consists of individual strata owners once the strata plan is deposited in the land title office.

Answer 336

1. Maintenance of common property insurance 2. Creation of operating funds for common expenses 3. Contingency (unpredicted happenings) reserve fund NOTE: Council is not responsible for a public authority work required on an individual strata lot.

Answer 337

1. Control and management 2. Register lien on unpaid expenses (strata fees) 3. Remove use of common property by an individual, for a valid reason.

Answer 338

As per strata property act either party to a management contract can rescind (cancel) the contract by giving two months notice and hence there is no breach of contract. The parties to the management contract are Strata council and the Strata management company.

Answer 339

By-laws are passed by the Strata Corporation while the rules are passed by Strata Council. If there is a conflict, the by-laws prevail. Amendment (changes) of By-Laws: The council needs ¾ votes in favor of amendment for residential stratas and a majority vote for commercial strata. If someone is dissatisfied with the decision of strata council, he/she can move to B.C. Supreme Court or can bring Mandatory Injunction (i.e. stay order issued by B.C. Supreme Court) or can get an arbitrator appointed in residential strata.

Answer 340

No decision can be enforced retro-actively (from back-date). If there is change in the by-laws but a person is already practising that before the law is changed, he is exempted under the grand-fathering clause.

Answer 341

For converting an existing building into a strata, the approving authority (i.e. Municipal Corporation) will consider following things: 1. Priority of rental accommodation over privately owned housing in that area. 2. Proposals for re-locating persons presently occupying the building. 3. Life expectancy of the building.

Answer 342

• Owned by single individual; • Owner is liable for all debts personally i.e. unlimited liability; • Not a separate legal entity, does not pay income tax; • Profits accrue directly to the owner and taxed on personal income

Answer 343

• A Separate legal entity • Company subject to income tax • Limited liability of share holders

Answer 344

It states that the actual amount paid to acquire an asset is recorded in books of account.

Answer 345

It states that revenue should be recognized when it is earned, NOT when cash is received

Answer 346

Any expenses associated with revenue should be recognized in the same period as the revenue is recognized. Expense is recognized when incurred and not when paid.

Answer 347

The general format is: Revenue-Expenses = Net Income

Answer 348

When an asset is purchased, an estimate is made of its economic life (number of useful years)

Answer 349

The amount that can be realized from the sale of the asset at the end of its economic life.

Answer 350

Cost-Salvage Value/ Estimated Economic life in years Once established, this amount will be used every year for depreciation expense. Example: Cost of Truck $50,000 Estimated Economic Life 10 years Estimated Salvage Value (end of 10 years) $5,000 Depreciation Expense = $50,000-$5,000/10 = $4,500 per year used for depreciation of assets

Answer 351

Prescribed percentage rate according to the Income Tax Act Depreciation is not a deductible expense for computing taxable income but Capital Cost Allowance is.

Answer 352

discloe all the options duty of discretion duty to follows clients instructions acting for competing clients disciplinary hearings

Answer 353

Could be one or more of the following: • A reprimand (warning) • A suspension membership privileges • A fine • The costs of hearing • Expulsion from membership in the board • An order to complete certain real estate courses

Answer 354

An agent is a person authorized to act on behalf of another person called the principal. The agent has the authority to represent and act on behalf of the principal in dealing with others for a fee or commission (Real Estate Commission is payable on completion)

Answer 355

1. Revocation: Any act of the principal which is inconsistent with the continuation of the agency. 2. Frustration 3. Performance

Answer 356

Listing contracts is a specialized type of agency. Exclusive listing: Multiple listing: Open or general listing If no listing contract- but principal requests- commission is payable

Answer 357

if not disclosing: principal still binding plus agent becomes personally liable

Answer 358

Loyal: Agent must be loyal to the principal; otherwise the profits must be counted for.

Answer 359

Which has seven essentials

Answer 360

Offer is released or expires when one of the following takes place: • A time limit is specified in the offer and the offer is not accepted within the specified time; • No time limit is specified, but reasonable time has passed; • The offeror (person who made the offer) revokes the offer before acceptance; • Either party becomes insane or dies before acceptance; • Counter-offer is made. When a change is made to the offer, it forms a counter-offer; It becomes the offer. If counter-offer is not accepted, the offeree (person who received the offer) can not accept the first offer because it has been terminated; • Offer is rejected

Answer 361

An offer can be revoked without the specified time limit running out. Revocation must be communicated to the offeree. It can be revoked anytime before acceptance.

Answer 362

An “invitation to treat” is not an offer- it is a request for offer.

Answer 363

• Can keep an offer open for a stipulated period of time (can not be revoked) under an option agreement, separate consideration is made to keep the offer open. • A request for information does not terminate an offer

Answer 364

• Must be a positive act • Acceptance should be made in the manner specified in the offer • If the offer is silent about acceptance, it should be accepted the same way the offer was made • If acceptance is by instantaneous means (e.g. telephone) it is not effective until the receiving party hears it • If acceptance is by non-instantaneous means (e.g. mail), it is effective when it is posted in the mailbox

Answer 365

• Consideration means exchange of something of value • “Past consideration” not effective • Contract can be without consideration if under seal, that is to say, a seal is a substitute for consideration.

Answer 366

• Consideration means exchange of something of value • “Past consideration” not effective • Contract can be without consideration if under seal, that is to say, a seal is a substitute for consideration.

Answer 367

• Must intend to be bound by a contract

Answer 368

Parties entering into a contract must be competent.

Answer 369

Infancy: Contract unenforceable against an infant (legal definition is a person who has not reached the age of majority i.e. 19 years). This applies even if the adult was unaware that the other party is an infant. Insanity or Intoxication: Any person under the influence of intoxication is not competent to enter into a contract.

Answer 370

• The infant affirms contact after turning 19 • The infant performs/partially performs the contract after turning 19 • The infant does not repudiate the contract within one year of turning 19

Answer 371

The object under the contract should be a legal object

Answer 372

Parties have clear understanding of the substance of the contract. There should be no violence or threat of violence used to make a contract.

Answer 373

• The statement must be false • It must have induced the other party to enter the contract • It must be one that would have induced a reasonable person to enter the contract • If any party to a contract is victim of a misrepresentation, he/she can approach the court for rescission of the contract

Answer 374

• Both parties make the same mistake and the contract is void • Must occur before contract is entered into (e.g. a house being sold has been destroyed and both parties are unaware of it)

Answer 375

• Performance: Contracts end when performance occurs • Agreement: Mutual waiver of obligations • Non-fulfillment of a Condition Precedent: Condition that must be satisfied before a contract is to be performed e.g. purchaser to arrange for a mortgage loan • Frustration: Events outside the control of the parties that change the subject matter in such a way that it becomes fundamentally different from the original contract. Parties are mutually relieved of their obligations. For example: A house, for which a contract has been written, burns down after the date of the contract. • NOTE: “Subject to” in a contract of purchase and sale: The legal name for “subject to” clause is “condition precedent”.

Answer 376

A person can assign benefits under a contract to a third party. The third party can sue to enforce the benefits. A party can not assign liabilities under a contract.

Answer 377

• Must be in writing. • Must be for the whole amount. • Notice of the assignment must be given in writing to the original promisor

Answer 378

Damages: • Only common law remedy available for the breach of contract • Anyone who can prove loss suffered as a result of breach of contract is entitled to be awarded damages Specific Performance: to perform the original contract specifically • An equitable remedy • Will not be exercised when damages are considered to be an adequate remedy Injunction (stay-orders) • An equitable remedy • Can stop a party from doing something • Can require a party to do something Quantum Meruit • An equitable remedy i.e. as much as he/she deserves

Answer 379

A corporation can enter into a contract. Before making a contract with a corporation, any person may ascertain the legal capacity of a corporation to a contract by reviewing its incorporation documents maintained at its official records office.

Answer 380

Subject to some exceptions, only the parties to a contract have a right to sue or be sued for breach of a contract. Exception: A contract which creates an interest in land is one of the exceptions to the doctrine of privity of contract.

Answer 381

The Real Estate Services Act requires that an exclusive listing be in writing.

Answer 382

states that in most cases a contract dealing with Real Estate must be in writing to be enforceable. This is called the requirement of writing.

Answer 383

The first exception to the writing requirement is where the party seeking to enforce the contract can prove that the party denying it had acted in such a way, that indicated the existence of a contract, The second exception is where the party seeking to enforce the contract had reasonably relied on the existence of a contract and in doing so had changed its position, usually by spending money. Make sure all contracts, offers, acceptances, counter-offers and amendments are in writing.

Answer 384

This section does not apply to leases or agreements to lease land for a term of 3 years or less.

Answer 385

A listing agreement is a contract between the seller and a real estate brokerage. The buyer is not a party to this contract.

Answer 386

Most importantly the property has to be described accurately and the listing contract must be signed by all owners of the property. Title search should be undertaken. All information must be correct. Physical features of the property must be checked, as well as legal and financial characteristics

Answer 387

Be aware of general information regarding contaminated sites in your area and always verify information given by the seller.

Answer 388

This Act is designed to: • Eliminate restraints of trade and to encourage competition. Each company must be free to set its own commission rates and split with the cooperating broker. • Prevent misleading advertising. • Prevent certain deceptive practices (showing one model, with other models price)

Answer 389

To avoid liability for a misleading advertisement, you must prove that you took reasonable care, used due diligence and honestly believed the advertisement to be true

Answer 390

Use the standard form. Any changes must be considered very carefully. This form has been created by the legal professionals. Confirm lot size, house size, zoning from outside sources. Technical Requirements: • Write clearly • Name and occupations of the parties • Make sure any amendment does not terminate the original contract (each party must sign the changes). The initial agreement is binding upon all parties until the amendment is finalized. • Financing clauses must be clear and not ambiguous. • Precise description of property, street address and legal description • Chattels and fixtures, describe what goes and what stays. • Don't write conditions as a free option, tie the subjects down, be specific.

Answer 391

A condition or a subject clause can be an essential term in a contract. A term is a promise that forms part of the contract, for example the terms of paying a deposit. Remember the deposit is held by a party as a stakeholder, meaning the deposit cannot be released unless all parties agree as to who gets the money, if they do not, the money gets paid in the court.

Answer 392

Some specific event must happen before an unconditional contract is entered into. This event is usually determined by some outside party (mortgage approval, inspection, rezoning). Be careful you are not writing a free option, be specific. Removing a subject clause must take place before the deadline, or otherwise the contract will be null and void.

Answer 393

I. Pre-qualify the Buyer 2. Time limit on satisfaction of subject (must be reasonable) 3. Use the Time clause (72 hours clause). 4. Promise to attempt to satisfy the condition.

Answer 394

Have all parties signed a subject removal form. A written notice for removal of subjects will be given by the benefiting party on or before the deadline, or otherwise the transaction will be null and void.

Answer 395

The buyer has the right to assign a contract, providing there is a standard assignment clause in the original contract and assignment is not prohibited.

Answer 396

• Has established restrictions regulating the height of buildings near airports or in flight paths • Has jurisdiction over rivers that support spawning areas • Has jurisdiction over its own lands and is not subject to municipal zoning

Answer 397

Has delegated most of its authority to regulate land use to local governments

Answer 398

The Agricultural Land Commission has the power to: • Pass regulations affecting ALR (Agricultural Land Reserve) • Exclude land from an ALR • Allow non-farm use of ALR • Allow subdivision of ALR land Note: Agricultural Land Commission has no power to add land to ALR

Answer 399

It is responsible for maintaining public health of the province. It has control over the installation of septic tank disposal fields. It must be determined that the lands can be adequately serviced by a septic system

Answer 400

Regional Districts: Thirty regional districts in the province. In unorganized areas, the regional district assumes the roles of a municipal government. Municipal Governments: Forms of government are villages, towns, cities and municipal districts. Improvement Districts: Generally the powers of improvement districts are restricted to the construction, operation or maintenance of utilities such as water works, sewer or drainage systems and electrical distribution.

Answer 401

• Public health and safety • Protection of Property Values • Efficiency, convenience and appearance • Conservation of natural resources

Answer 402

A community plan defines the policy of a local government in terms of existing and proposed land use and servicing requirements. A plan is usually prepared by the municipal or district staff. The council must then hold a public hearing to obtain public input after which it may be adopted as a bylaw.

Answer 403

A Zoning bylaw places some restriction on the use of that property, the location of buildings on the property and the form or shape of the buildings that are permitted. Zoning bylaws usually consist of three parts: The official map The sections listing definitions used in the bylaw The schedules outlining the regulations

Answer 404

In some zones, the density of building may be limited. Density is often measured in terms of the total floor area of the building in relation to the size of the lot. The most common term for this is floor area ratio. Density may also be measured by the number of dwelling units per hectare or by prescribing the minimum lot area per dwelling. Common zones are industrial, commercial, residential and agricultural zone

Answer 405

A council or regional district may begin the rezoning process on its own or upon receiving an application from a property owner. Most local governments will, as a matter of policy, require that a public hearing be held, before amending, adopting or repealing a zoning by-law.

Answer 406

Under the Local Government Act, non-conforming uses may continue in the following circumstances: • Through successive changes of ownership. Loses its status if the use is discontinued for more than six months, unless discontinuance is part of normal seasonal practice. • A structural alteration cannot be made to a building used for a non-conforming use. • Non-conforming use may be extended throughout the existing structure. • Where a building with a non-conforming use is destroyed to the extent of 75 % or more of its value, it cannot be rebuilt without conforming to the new bylaw.

Answer 407

A board of variance can determine if compliance with a zoning bylaw would cause undue hardship to the property owners

Answer 408

1. Minor deviations from by-laws 2. Review decisions of building inspectors 3. Time limit for variance to be completed Note: A Board of Variance cannot amend the by-laws

Answer 409

The tax rate is a rate of tax per $1,000 of the net taxable value (called a “mille rate”) A tax rate of 4.9762 means a real property tax of $4.9762 for every $1,000 in net taxable value. If a property has a net taxable value of $122,258, the taxes payable are calculated as follows: Real Property Tax= Tax Rate x Net Taxable Value/ 1000 Real Property Taxes= 4.9762 x $122,258/ 1000 = 4.9762x $122.258 = $608.38

Answer 410

General Tax Rate is determined by the local municipal council. Other statutes which affect the Property Tax are: 1. School Act 2. Hospital Act 3. Regional Districts

Answer 411

Under the Assessment Act, an “owner” is defined as the registered owner of an estate in fee simple and includes: The registered owner of a life estate or an estate in fee simple If there is a registered agreement for sale , the registered holder of the last registered agreement for sale and purchase The occupier of the real property if it is occupied in the following manner: Crown/municipal lands/tax exempt organizations, universities, cemeteries are exempt from real property taxes. But, if the land is leased to a private citizen or corporation that is not tax-exempt, the occupier is liable for taxes. Note: Residences owned by elected government officials are assessed at market value for purposes of property taxation.

Answer 412

The assessor must determine the actual value of the land and improvements and must enter the actual value of the land and improvements in the assessment roll. The assessor may consider the following in determining the actual value: • Present Use • Location • Original cost • Revenue or rental value

Answer 413

It is an extract from the assessment roll concerning a specific property.

Answer 414

An owner of an eligible residence, who occupies it as his/her principal residence is entitled to a grant.

Answer 415

A Canadian citizen or landed Immigrant who has lived in BC for one year or more, and is 60 years of age or more, or a widow or a widower, or a permanently disabled person may apply to defer 100% of the net property taxes payable.

Answer 416

If a property owner considers that the actual value assessment of his property is too high or too low, he must first submit his complaint to the Property Assessment Review Panel.

Answer 417

The first level of appeals from property assessments. An owner or another party may appeal an assessment. If the appeal is made by another party, the assessor must deliver notice of the hearing to the owner as well. If not satisfied with the decision of the review panel, the owner can appeal to Property Assessment Appeal Board. After that, the owner can go to the Supreme Court of B.C. and further to Appeal Court of BC but only at a point of law.

Answer 418

• Vendor planning to sell • Purchaser planning to buy • Developer requiring estimates for redevelopment • Mortgagee assessing loan security • Determining insurable value for insurance • Real property taxation • Legal Circumstances (estate, gift and transfer taxes, divorce) • Expropriation

Answer 419

In BC anyone may legally undertake appraisal work and charge a fee.

Answer 420

It is the value of legal interests in real estate (legal rights of ownership) that is estimated. They may include: 1. Fee-simple ownership 2. Leasehold estate 3. Condominium ownership 4. Air space 5. Easements 6. Any combination of the above

Answer 421

1. Right of ownership 2. The physical property in which those rights are vested

Answer 422

Value of owner is assessed from investment point of view

Answer 423

The owner’s minimum price

Answer 424

The prospective buyer’s maximum price For a potential sale to occur; there must be at least one buyer who is prepared to make an offer (ceiling price) equal to or greater than the vendor’s floor price. When a price is agreed upon, it is referred to as the sale price or value in exchange

Answer 425

Circumstances surrounding individual sales may cause variations in sale prices

Answer 426

The length of time allowed for the sale to take place will affect the sale price

Answer 427

Adequately advertised property will probably realize a higher sale price

Answer 428

In cases where there is some relationship between the parties (e.g. father and daughter), the sale price will likely differ from what is expected in an open market. When there is no relationship between the parties, they are said to have been bargaining at arms’ length.

Answer 429

Terms of financing may affect a sale price. For example: A vendor take-back mortgage with a lower interest rate will probably increase the sale price of a property.

Answer 430

If a property has a unique advantage to a prospective buyer (e.g. an adjacent property); the buyer will probably be prepared to pay more for it. The presence of a special purchase will increase the number of possible bids.

Answer 431

At any given time, the market value of an interest in land is the price it might reasonably be expected to realize when sold by a willing seller to a willing buyer after adequate time and exposure to the market.

Answer 432

Allowable error will vary with the purpose and complexity of the appraisal. Where the object of the appraisal is to find market value, the property is of a common type (e.g. a single family residence) and there is sufficient evidence of recent sales, up to 10 % may be reasonable.

Answer 433

Situations may arise where a carelessly prepared appraisal report results in one action based on contract law by a person who ordered the appraisal (e.g. a mortgage lender)and a second action based on the law of tort by another person who relied on the appraisal (e.g. a purchaser).

Answer 434

Properties can be classified by their degree of development: 1. Those which possess highest and best use, or 2. Those which possess potential for redevelopment (latent value).

Answer 435

Implies that the existing development is likely to yield the maximum net return to the land during the foreseeable future. Ask, “if this building burned down, would the same type of building be constructed in its place?” If so, it represents its highest and best use

Answer 436

Latent value occurs when the maximum net returns are likely to result if existing redevelopment is changed in the foreseeable future Most properties representing highest and best use are located within areas of similar use. For example: a residential property in a residential subdivision. Zoning and restrictive covenants may complicate the process of converting a property to its highest and best use.

Answer 437

It involves collecting and analyzing data for similar properties that have been recently sold. It operates on the principle of substitution. This method is likely to provide most reliable estimate of market value. It is most useful for properties that are within their property class. For example: single-family dwellings. The assumption is that if several identical properties recently sold for $60,000; the subject property should sell for $60,000. “Recent” means that time period during which the market forces of demand and supply have remained stable.

Answer 438

It is often used for income-producing properties. It requires recent market evidence of similar properties to compare rental levels, operating expenses, sale prices and yield (capitalization rate). Net Operating Income (NOI) _______________________ Market value/sale price = Yield (capitalization rate)

Answer 439

It is based on the assumption that cost is equal to value which is not necessarily correct. This method is inexact since cost and market value are not necessarily equal at any given time. This method can be used for properties on which there is a little comparable data. For example: A Church i.e. the property is unique.

Answer 440

Should only be used if the property possesses latent value i.e. the property is not at its highest and best use. The property has redevelopment potential.

Answer 441

Demand measures the quantity of property that the market would like to purchase at any given price. Demand decreases as the price increases. Demand for real estate changes: 1. In the short-run, due to change in: a) Rate of interest b) Tastes and preferences of buyers 2. In the long-run; due to a change in: a) Population b) Income of people c) Government projects

Answer 442

Land cannot be created. The supply of real property is fixed in location. Real property markets are local by nature because real property is immobile. Real property will be affected by external influences from neighboring property. Real property is more prone to the effect of externalities because of its immobility.

Answer 443

The appraiser should ascertain the effect that each factor will have on the subject property. For example: socio-economic factors, the comparables chosen, the trends in the market viz-a-viz the subject.

Answer 444

No, mortgage is not a loan. 1. It is a contract which is an evidence for a loan and 2. It is a security for a loan

Answer 445

A mortgage is an interest in land created by contract as security for a loan made by the lender (mortgagee) to the borrower (mortgagor). A mortgage transfers a legal or equitable interest in land. The interest will be returned to the borrower when the debt is repaid

Answer 446

The first mortgage granted is the only ‘legal’ mortgage. The borrower retains an equitable interest in land (Equity of Redemption) after granting a legal mortgage and is free to mortgage this equitable interest by a 2nd, 3rd, etc. mortgage. Mortgages are registered as charges against the title.

Answer 447

Equitable Mortgage: A mortgage of equity of redemption. By deposit of Duplicate Certificate of Title: A fee simple owner of property that is free of financial charges can apply in writing to the registrar of the Land Title Office for the Duplicate Certificate of Title. This document can be used to obtain an equitable mortgage by giving the certificate to the new lender as security. The lender will hold the Certificate as collateral security because a person cannot sell the property or take out another mortgage without the Certificate being present in the LTO. By an Agreement to Give a Mortgage An agreement to grant a mortgage in the future is a present equitable mortgage. Also, a mortgage that is granted but for procedural rules is not registrable, is an equitable mortgage. The lender should file a caveat to protect its interests. Disguising a Mortgage as a Transfer Sometimes a mortgage agreement is written to appear that it is transferring the estate in fee simple to avoid the Doctrine of Equity of Redemption. If the courts find that the main purpose of the document was to offer land as security for loan, they will find the arrangement to be a mortgage and the Equity of Redemption will apply.

Answer 448

Express terms contain amount of loan, rate of interest, repayment etc.

Answer 449

the principle and interest secured hereby shall become due and payable forthwith, at the option of mortgagee, on default

Answer 450

In case of default of any money by the mortgagor, the mortgagee may pay the wholesome and the amount so paid will be added to the principal loan

Answer 451

In case of default, the mortgagor shall hand over the possession of the property to the mortgagee.

Answer 452

It is common for mortgages to contain terms giving the lender advantages in addition to the security and interest payments. A collateral advantage that extends past the term of the mortgage is not a clog. It can be enforced unless it is viewed as a penalty, or as being unfair and unconscionable. In that case, the borrower can go to the court under Consumer Protection Act.

Answer 453

The Federal Interest Act imposes no limit on the rate of interest that can be charged on a mortgage. Under the Federal Criminal Code, it is an offence for a person or a corporation to enter into an agreement to receive interest at a criminal rate, which is defined as an effective annual rate of over 60%. Section 3 of the Federal Interest Act states that if a document does not refer to interest, no interest can be charged. If a document states that interest is to be paid, but does not specify the rate, then the rate will be 5% per annum.

Answer 454

Section 10 of the Federal Interest Act says that, “at any time after the expiry of 5 years from the date of mortgage, the borrower can tender payment of all o/s principal and interest, plus an additional three months interest in lieu of notice”. After this, the lender cannot charge any further interest.

Answer 455

Assumable mortgages are ones that can be assumed by the future purchases. The original borrower may remain liable on their personal covenant if the purchaser defaults on his/her payments. But if the lender becomes disabled from restoring the property unimpaired, the original borrower will be released of his personal covenant.

Answer 456

when the borrower defaults, the lender (mortgagee) will file a recovery case in the court and the court will first issue: Order Nisi: this is an order given at the first court appearance granting the requested remedies. Order Absolute: If payment of the amount due is not made within the set period of time for redemption, the petitioner can apply to the Court for an Order Absolute, declaring that the respondents are foreclosed on any title or interest in the mortgages property. When a petitioner has received an order absolute, he/she cannot sue the borrower on the borrower’s personal covenant. Judicial Sale The petitioner or any of the respondents can apply for a judicial sale. The application would normally be made if the property is worth less than the mortgage debt, because the petitioner is entitled to recover the difference between the sale proceeds and the mortgage debt from the borrower. If the property is worth more than the mortgage debt, the petitioner would want to try to obtain an order absolute, because there is no requirement to account to the borrower for any profit made. The petitioner can make an offer on the property. If the court approves the sale and the proceeds are not sufficient to pay the mortgage debt and the costs of the sale, the petitioner can sue the borrower for the difference.

Answer 457

The lender can exercise the remedy of an ordinary creditor and sue the borrower on the borrower’s personal covenant.

Answer 458

If the borrower does not wish to redeem the mortgage, the borrower may wish to quitclaim his/her interest in the property. The borrower must receive some consideration from the lender for doing this. When the quitclaim is registered, it transfers title to the lender and usually extinguishes the mortgage loan.

Answer 459

When the purchase price is payable in installments, the title to the property stays in the vendor’s name, until the purchaser has made the final payment. Title is transferred at that point.

Answer 460

Use of existing physical sizes now specified in metric measurement. For example: The old 2”X4” structural lumber is now specified as 38 mmx89 mm.

Answer 461

Involve the establishment of metric standards. For example: the metric building module is now 100 square meters. Also involves the dimensions of sheet products i.e. plywood, gyproc etc.

Answer 462

By size of Living Area and/ or Number of Floors Living area is the total finished living area situated above ground. Living areas exclude: basements, sundecks, patios, balconies, garages, carports and parking stalls. If areas are calculated in square meters, imperial measurements (square feet) can be calculated by multiplying the number of square meters by 10.76.

Answer 463

• Tudor • Heritage • West Coast Contemporary • Ranch • Narrow Lot (Vancouver Special) • Manufactured Home

Answer 464

Bay Window: An extension of the floor and walls to increase the size of a room. Dormer: Extensions in the main roof to provide extra floor area, headroom and light.

Answer 465

• Log • Brick • Stone • Concrete Block • Post, Beam and Plank

Answer 466

This style is composed of angular roof components and broken rectangular walls.

Answer 467

• Joist: A horizontal framing member used to support a floor and /or ceiling • Stud: The vertical framing member used to construct walls • Lintel: The supporting structure over an exterior opening. For example: A wooden support above the window • Truss: An engineered, pre-fabricated roof or floor support structure • Plate: the horizontal lumber that the studs rest on at the bottom and the top of all framed walls

Answer 468

the frame of the window is split in two parts from the inside to the outside to reduce the conduction of heat from the home to outside and vice-versa

Answer 469

Fuels are: wood, electricity, gas or fuel oil

Answer 470

No ducts or pipe Very Clean Moderately rapid response to changes in outside temperature Mostly convection heat with some radiation Lack of Air Filtration Baseboard occupies wall space

Answer 471

Rapid response to changes in outside temperature Air filtration included Clean Can add humidifier Requires ductwork under main floor Air ducts require cleaning

Answer 472

Steady consistent heat Clean Provides mostly convection heat with some radiation Lack of Air Filtration Baseboard occupies wall space Slow response to changes in outside temperature

Answer 473

Reduced heating expense Provides radiant and convection heat Rooms other than space heated room remain cool Inconvenient

Answer 474

Piping for the water supply may be copper, Plastic, galvanized steel.

Answer 475

Voltage: Measure of pressure of current flow Amperage: Measure of the rate of current flow Wattage: Measure of power consumption Watts= Volts X Amps. Therefore, Amps=Watts/Volts The Canadian Electrical Code requires that new or substantially renovated houses over 80 square meters have a service capacity of at least 100 amps

Answer 476

For Example: Main entrance directly through the bedroom or utility room, main bathroom directly off living room, etc.

Answer 477

Defects from improper installation (cracks in the foundation from installing footing on non-compacted fill). Can also be caused by installing low-quality products, improper use or inadequate maintenance

Answer 478

Defects of omission (lack of moisture barrier). Can also be caused by installing low-quality products, improper use or inadequate maintenance

Answer 479

1. Using metal framed windows with a thermal break 2. Including an air to heat exchanger to bring in cold exterior air 3. Follow R 2000 standards 4. Installing sliding glass doors to a SOUTH facing patio

Answer 480

Zinc is a chemical used on the roof toppings to prevent the growth of moss on the roof.

Answer 481

- Financial - Transaction & - Reports - Analysis - Centre of …

Answer 482

- Doing something on my own property, but it is bothering the neighbors o Playing music really loud, and this bothers the neighbors. - Doing something on my own property, but also damaging the neighbors property. o Cleaning my swimming pool, but the water goes over the fence and damages the neighbors plants, etc

Answer 483

- Let’s say you are a occupier (u are occupying the building), u have a responsibility for take care of visitors. - This applies to occupiers liable to the visitor. o Trespassers  Enter the property without permission, you don’t have a duty as a occupier to take care of them. • Ex. If they slip on the floor, they cannot bring a liability case against me. But I do have a minimal duty to not intentally injure them.  Self-help • Using reasonable force against a danger me. • Someone tries to fight me if I entered their property. o Cannot beat to death, they must be reasonable  Remedies • I can sure for damages if the trespasser steals stuff. • Trespasser trespasses onto neighbours property o Licensees  Come on your property for doing their job. • Must giving the licensee a warning of the dangers within the property. o Like dog inside, slippery floor, broken steps, etc. • Ex. mail man enters property to deliver mail. • Ex. pizza man delivers pizza. o Invitee  Come on our property for an economic interest. • Ex. you own a furniture store, customers come to the property to purchase things. o Give warning of any dangers within property like slippery floor.  Can give liability case against the owner since they did not warn the invitee of the dangers they knew of, or should have known of. o Children  Simply putting a warning sign of slippery floor does not help with children. • There must be a barrier preventing children from getting injured.

Answer 484

o Specific  For ex. I wanna make 4 sales in my first year o Manageable o Achievable o Relevant  Should be relevant to the business one is involved in o Timely

Answer 485

- Attractive - Interested - Desire - Act

Answer 486

- Felt need - Pre-Purchase activity - Purchase activity - Post-purchase

Answer 487

Scrambling credit card information into an unreadable format

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