Module 4

Question 1

Infill lot

Answer 1

development occurs in a built-up neighbourhood

Question 2

Provides additional housing stock by using existing services rather than developing vacant land

Answer 2

intensification

Question 3

Permits required for urban lot w a structure

Answer 3

demolition and building permit

Question 4

Does the prop have a sufficent frontage and area to be divided into more than 1 lot?

Answer 4

infill redevelopment and severance

Question 5

covers construction, C.C.E, sub of matierals, deposit protection

Answer 5

provinical warranty

Question 6

Homes covered under warranty program must be enrolled before

Answer 6

construction

Question 7

Homes not covered under warranty program

Answer 7

previously occupied, built by owner & seasonal homes

Question 8

Alterations, deletions or additions made by owner, normal wear and tear, material shrinkage

Answer 8

not covered by warranty program

Question 9

Representation agreements must end

Answer 9

on a specific day

Question 10

builders will use this to establish a listing price (buyer can negotiate additional upgrades @ time of offer)

Answer 10

Standard package of finishings

Question 11

Speculative (Spec) Homes

Answer 11

properties where construction has begun without a buyer in mind

Question 12

Only the foundation, framing, roof and window, no finishes has been constructed

Answer 12

partially constructed home

Question 13

interior and exterior finishes have been completed but not all of the construction (last items-cabinets, bathroom fixtures, flooring)

Answer 13

mostly constructed home

Question 14

Ontario new home warranty plan applies to deposits by protecting the buyer from

Answer 14

builder not completing due to bankruptcy, break

Question 15

Ontario new home warranty plan coverage for deposits

Answer 15

sale price 600k = up to 60k

Sales price > 600k: 10% of sale + up to 100k

Question 16

If the closing date is extended, terms of a mortgage commitment may not be

Answer 16

honoured because the commitment has expired

Question 17

Standards and finishes sheet

Answer 17

used to market the development

Question 18

If the builder is willing to pay remuneration, a SP will have to introduce & register

Answer 18

the buyer prior to or during the first visit to the new development

Question 19

Salesperson should register their buyer w/ builder when they 1st visit the sales office or

Answer 19

builder will not pay comission

Question 20

Construction loans are typically

Answer 20

short-term, high interest loans

Question 21

• Most common type of construction loan

- lender pays the builder “draws” at various phases (ranges from 3-5)

Answer 21

Progress Draw Mortgage

Question 22

Take-out mortgage

Answer 22

once construction is completed and is verified by the appraiser this is organized

Question 23

When acquisition and construction costs are rolled into a final mort. that has favourable interest rates and less risk for lender bc it is a finished product

Answer 23

Take-out mortgage

Question 24

Deposits are higher than resale homes

Answer 24

homes purchased from plans

Question 25

Lien claimant can only register a claim for the value

Answer 25

of services/materials supplied

Question 26

must be registered at LRO, be verified by affidavit

Answer 26

liens

Question 27

Must be registered within 50 days of specified events

Answer 27

lien

Question 28

Prevents transfer of ownership between seller or buyer unless specified amount is paid

Answer 28

lien

Question 29

Lien process gives trades people

Answer 29

added security of payment

Question 30

Individual lien

Answer 30

applies to persons providing services or materials (concerns 1 premises)

Question 31

general lien

Answer 31

when the work is conducted on several premises

Question 32

Each payer on a contract must retain a 10%

Answer 32

holdback of the price of services/materials under the contract until the period where liens have expired, satisfied or discharged

Question 33

Basic holdback

Answer 33

10% of the price of all services/materials

Question 34

Basic holdback is held until the

Answer 34

oppotunity for all liens to be claimed under the act has expired

Question 35

Finishing holdback

Answer 35

payer under the contract can retain a seperate holdback of 10% of the price of the remaining services or materials until all liens that may be claimed have been satisfied

Question 36

A lien is not effective until

Answer 36

the owner is notified

Question 37

Tarion coverages is broken down into

Answer 37

1,2, and 7 year segments

Question 38

Buyers of newly constructed homes have coverage relating to

Answer 38

deposits, delayed closing and substitutions

Question 39

Homes must be enrolled in Tarion

Answer 39

before construction

Question 40

(Tarion) SPs must asked builders for their

Answer 40

registration number and home's enrolment number

Question 41

Warranty period begins at for new houses/condo common ele

Answer 41

date of possession/date of condo registration

Question 42

Forms used for warranty

Answer 42

30 day form (used after first 30 of posesssion) and year end form (outstanding warranty items), second year form, major structural defect form during 3rd year

Question 43

- Requires home is free from defects in workmanship and materials - Home is fit for habitation, meets OBC

Answer 43

1 year warranty coverage

Question 44

Covers: - Water penetration (basement, foundation) - Defects in materials and work - Violation of OBC

Answer 44

Two year warranty

Question 45

Covers major structural damage and defects in work or materials that result in significant damage (failure of a load bearing wall)

Answer 45

7 year warranty

Question 46

Information of available warranty is found in

Answer 46

the certificate of posession and completion

Question 47

Condo common ele coverage is based on a formula of

Answer 47

50k x # of units (max of 2.5 mil)

Question 48

All warranties apply to a condo conversion project except for

Answer 48

1st year workmanship warranty on preexisting elements

Question 49

Builders can only subtitute items when they are of

Answer 49

equal or better quality

Question 50

Max warranted damage caused by environmentally harmful substances or hazards

Answer 50

$15k

Question 51

Max warranty coverage for septic systems

Answer 51

$25k

Question 52

Pre-delivery inspection

Answer 52

Builder & buyer tour the new house and list any defects in order to ensure they are repaired

Question 53

Purpose of a Pre-delivery inspection

Answer 53

Important step to obtaining certificate of completion and possession (indicates day warranty will begin)

Question 54

Provision must be included that every APS has this package delivered on or before date of PDI

Answer 54

Homeowner info package

Question 55

Homeowner info package details

Answer 55

buyer's provincial warranty rights

Question 56

After PDI buyer and builder must

Answer 56

complete certificate of completion and possession/warranty certificate and PDI form

Question 57

For condo units PDIs are conducted a few days prior

Answer 57

to the date set for interim occupancy

Question 58

certificate of completion and possession signals start

Answer 58

of warranty protection

Question 59

Builder must submit the certificate of completion and possession

Answer 59

within 15 days of posession

Question 60

Builder will remove a warranty sticker from the

Answer 60

CCP and place it on the electrical panel