Module 2 Flashcards
Real Estate
Only the tangle elements of the property (the building)
Improvements
Any structure other than the main property (shed, deck, etc.)
Real Property
Tangible and intangible elements of the property (e.g. the building and the rights associated with ownership)
Trade
REBBA term.
Disposition (selling) or acquisition (buying) or leasing of property.
Also includes advertising real estate for sale or negotiations.
Also includes if there is no sale of property but a business.
Seller/vendor
Can be used interchangeably (the person who is selling property)
Under REBBA they use the term seller
Buyer/purchaser
Used interchangeably, under REBBA it’s buyer.
Lessor
Person who is leasing the property out aka landlord
Lessee
Person who leases the property from the landlord aka tenant
Representation (person is the brokerage ‘Client’)
Agency relationship.
REBBA and fiduciary responsibilities are placed on brokerage - must be loyal and protect seller/buyer interests
Providing Services (person is the brokerage ‘Customer’)
Not the same level as Representation.
Must treat person with fairness, honesty, and integrity.
No fiduciary responsibilities (loyalty, confidentiality, or promoting best interest).
Representation agreement
Agency relationship (party is a client). Can be verbal or written, must be written at the earliest time, and before the offer is made. Working with seller = listing agreement Working with buyer = buyer agreement REBBA: provide signed copies to client immeditely after signing.
Customer Service Agreement
Written or verbal agreement to have person as customer.
Reduce to written at earliest opportunity, provide immediately after signing.
Non-exclusive. No obligation to compensate brokerage.
Agreement for purchase and sale
Used to negotiate terms between buyer and seller.
REBBA: Agreement for conveyance of interest.
Must be in writing and signed by both parties to be enforceable.
AKA ‘offer’
Personal property
Consumer goods - basically everything other than the actual building. Moveable.
Fixtures
Type of personal property.
Not moveable. Most often included in sale, unless explicitly outlined in the purchase agreement by seller and agreed to by buyer. E.g. curtain rod, built-in book case, light fixtures.
Chattels
Type of personal property. Not included in agreement as part of sale unless explicitly agreed to. E.g. barbeque, curtains.
Title
Legal ownership of land and associated rights.
Chain of title
Series of transfers of title and other documents to prove ownership. Goes back to root of title.
Encumberances
Outstanding claim or lien record against the property, or any legal right to use the property by another person who is not the owner.
Deed
Document to prove transfer of the property ownership.
Term used in the Registry Act.
Transfer
Same as deed, but term used in Land Registry Act. Used to show tranfer of ownership.
Completion date
Date that the transfer of ownership is complete. AKA closing date.
Mortgage
Claim or encumbrance on a property given by the owner to secure funding from the lender.
It is registered on the title in the applicable Land Registry Office.
Registry Act = mortgage
Land Titles Act = charge
Lender
Person who is providing the money.
If title is registered under Registry Act = mortgagee
If title is registered under Land Title Act = chargee
