Random struggles Flashcards
(198 cards)
1
Q
Option agreement
A
to ensure an offer will be kept open for the stipulated time period
- separate consideration is given (not deposit)
2
Q
Torrens system principles
A
- Indefeasibility Principle (“undefeatable”)
- Must acquire in good faith/reasonable price
- Reg. charges are NOT indefeasible (anything LESS than an estate) - Effect of registration
- title is effective when signed, sealed, delivered
- DO NOT TRANSFER INTEREST OR ESTATE IN LAND UNTIL REGISTERED - Abolition of doctrine of notice
- Title replaces this “rule book”
- Everything you need is on TIITLE - The assurance fund
- Provides compensation to those who suffered loss by omission mistake
- MUST PROVE - 1. lost interest in land 2. if LT had not been passed, claimant would have recovered estate 3. claimant CANNOT recover
3
Q
Satellite family
A
- untaxed worldwide earner
- individual who declares LESS than 50% of their TOTAL income on Canadian tac returns
4
Q
Who provides for subdivision regulation by requiring all developers to supply a disclosure statement?
A
REDMA (not resa)
5
Q
Who deals with prepayment mortgages?
A
Interest act
6
Q
PIPEDA
A
Canadian personal info protection & electronic documents act - establishes how a business engaged in commercial activity can collect info
BC has its own privacy law - PIPA (personal info protection act)
7
Q
Mortgage brokers act deals with:
A
the regulation of persons who deal with mortgages
8
Q
When is an occupier NOT liable for priv. nuisance?
A
- created by 3rd party (trespasser)
- unaware of the nuisance
9
Q
Liabilities include:
A
- accounts payable
- long term debt (mortgage)
10
Q
Limited dual agency
A
(NOW PROHIBITED)
- where brokerage represents 2 or more clients in a single transaction
11
Q
3 types of disclosures
A
early
continuous (updated)
full (avoid leaving out facts)
12
Q
Restrictive covenant:
A
MUST be negative in nature but can be worded in negative or positive terms
13
Q
Durress
A
UNDUE INFLUENCE
- forced into a contract & robbed of free will
14
Q
What are torts?
A
civil wrongs for which the court will grand legal remedy
15
Q
Under used housing act
A
1% on fair market value
16
Q
Who collects GST as an agent of the govt?
A
Sellers UNLESS seller is a non resident
17
Q
Misrepresentation MUST:
A
- be false statement
- induce other party
innocent - can sue for rescission
fraudulent - can sue for damages & rescission
18
Q
Order nisi
A
“nice guy”
courts can set a redemption period (6 months)
19
Q
Due on sale clause
A
prevents mortgage from being assumed by anyone unacceptable to the lender
- make sure buyer qualifies
20
Q
Marketing mix
A
Product, price, place, promotion
21
Q
How can a strata corp. be terminated?
A
80% vote in AGM
22
Q
Indemnity clause
A
If borrower defaults, the lender can collect if the property is sold an amount equal to 3 months interest
- UNENFORCEABLE as per the interest act
23
Q
T or F: a buyer has the right to rescind the purchase agreement at any time by providing appropriate notice, if the seller has not provided a disclosure statement to the buyer.
A
TRUE
24
Q
Can a judgement creditor register a notice of civil claim in the appropriate land title office against the judgment debtor’s property
A
NO
25
Who can demand an SGM?
a person holding 20% of strata corporation votes
26
If a seller is required to terminate a tenancy for buyer occupation, what cost may the seller incur because of accepting this offer?
Potential expenses to remove resisting tenant (eg: legal & RTB fees)
27
Easements:
- can be positive or negative in nature
- one party can own both the dominant & servient tenements
- MUST accommodate the dominant tenement
- run with the land
28
Reverse annuity mortgage
lender makes payments over the term of the mortgage
- advances + interest is repaid by SALE OF THE PROPERTY
29
Implied terms
Not written in the mortgage
30
Who is a listing contract between
vendor & brokerage
31
The business practices & consumer protection act
Interest rate cannot be HARSH & UNCONSCIONABLE
32
Unit entitlement formula
unit entitlement of SL / total unit entitlement of all SL's x total contribution
33
2 types of assignments
statutory & equitable
- statutory - complies with law & equity act
34
DCR =
NOI/PMT
35
Positioning maps
(aka perceptual maps) useful way to represent consumer perceptions of alternative products in a visual way
36
Dominant Tenement
Property that enjoys the benefit of the easement
37
What is the interest act limit?
there is no limit to the interest act
38
Who outlines the minimum LEGAL standard of conduct?
RESA
39
S.M.A.R.T.
Specific
Measurable
Achievable
Relevant
Timely
40
Framework/steps for ethical decision making
1. consider situation & identify potential ethical issues
2. identify the stakeholders
3. specify alternatives
4. evaluate each alternative
5. make & justify your choice
41
Who adopts the code of ethics & standard of business practice?
The board! (crea, bcrea)
42
Land owner transparency registry
- record keeping database that contains info collected under LOTA
- public can view
43
What is the MAX amount a borrower can charge for interest rates?
J1= 60% (criminal code)
44
The Court Order usually obtained first in a foreclosure action is an:
Order nisi
- sets the final redemption period, during which the respondents can redeem the mortgage by paying the amount due and owing
45
Conditions vs warranties
conditions - fundamental term. breach allows injured party to terminate contract and/or sue for damages or specific performance
warranties - minor terms. injured party can sue for damages but CAN'T terminate the contract
46
Equitable mortgage
A mortgage of the lenders equity of redemption
47
Who should a licensee take instructions from when they have multiple clients on the same side of a transaction?
All of them or the person(s) authorized by the entire group in writing to provide instructions to the licensee;
48
Who pays PTT & conveyancing fees?
THE BUYER
49
Beneficial owner
any individual who owns or controls 25% or more of a corp. or other entity
50
Private law
- agency law, contract law, tort law
51
PIM (personal info management software) includes:
user's email, contact and calendar
52
2 sources of duties
common law (contractual duties, tort, agency & fiduciary) & legislation (rules, RESA)
53
contracts can be ineffective in 4 ways:
1. Void - never had legal existence
2. Illegal
3. Voidable - can be voided by each party. still enforceable
4. Unenforceable - valid but cannot be sued upon eg: oral contracts are not enforceable
54
Leases under _ years do not have to be registered
3
55
Commercial tenancies & residential tenancies
commercial - COMMON LAW
residential - STATUTE LAW
56
How is owners equity listed?
Proprietorship - capital
Corporation - stakeholder's equity
57
Can you assign liabilities in a contract?
No but you can assign benefits.
58
Target market
segment of market sharing common need
59
Omnibus clause
- lender can pay money ON BEHALF of the borrower then charge it back to the borrower WITH the lenders interest
- charges such as taxes, strata fees that get ADDED to the mortgage amount so lender can keep their priority
- this happens if the borrower has NOT paid their taxes
60
Public law
- constitutional, criminal, tax law
61
How does an easement appear on title?
serviant tenement - "charge"
dominant tenement - "legal notations"
62
What is the most reliable method for identifying encroachments on a property?
Obtaining a recent survey certificate from a BC Land Surveyor;
63
If a developer wants to subdivide an existing building into a SL they must:
1. get approval from municipal govt.
2. prove there is a need for rentals over private ownership
3. show how existing tenants will be relocated
64
A strata corporation is holding an annual general meeting by electronic means. What does the notice for the annual general meeting need to include?
Instructions for attending the meeting by electronic means.
65
Minimum PROFESSIONAL standard of conduct
CREA (BCREA)
66
If the borrower has lost the right to redeem, they still have the right to equity in the property unless:
The courts declare a judicial sale or order absolute.
67
Easement of necessity
There is no other way to access the property to get to land or waterways
68
How are equitable mortgages created?
1. Anything registered after the the legal mortgage
2. By deposit of duplicate certificate (which encumbers the title until delivered to the registrar for cancellation)
3. By agreement to give a mortgage
(filing the agreement as a caveat or charge on title)
4. By disguising a mortgage as a transfer (offering land as security for a loan, not calling it a mortgage)
69
SEO (search engine optimization)
how easily a website can be found UNPAID
70
7 essentials of a contract
1. offer (can be oral or written)
2. acceptance (when COMMUNICATED)
3. consideration (seal)
4. legal intention
5. capacity
6. legal object
7. genuine consent
71
Treaty settlement land
- often includes transfer of crown land in fee simple to Aboriginal groups
- 0.2% of the land in BC
72
Doctrine of privity
contracts run with LAND not person
73
Least -> most effort by consumer
unsought goods (life insurance), specialty goods (Ferrari), shopping goods (homes, cars, RE), convenience goods (groceries, newspaper)
74
7 ways to terminate a contract
1. performance
2. agreement to waive
3. non fulfilment of condition precedent
4. frustration
5. rescission
6. breach of condition
7. assignment
75
Firewalls
prevents unauthorized electronic access to a networked computer system
76
Easement MUST benefit:
The land
77
What is the notice requirement under the RTA for relocation of a tenant for major renovations or repairs?
Four months
78
"boot to the ground"
licensees are in the best position to identify misconduct at the earliest stage
79
T or F: landlords MUST comply with PIPA?
TRUE
80
Market value =
cost of improvements - depreciation + land value = market value
81
A friend who is also a licensee asks you to represent them in the sale of their property. Who should make the disclosure of interest in trade to a buyer?
a) The friend:
b) You:
c) You and the friend; or d) No one.
The friend
82
Agency by estoppel
Apparent authority - where principle leads 3rd party to believe that agent is acting for them
83
4 appraisal methods
1. residual - latent value, redevelopment potential
2. market/comparative - recent (time period where demand & supply are stable) similar
3. cost method - reproduction - EXACT REPLICA - replacement - modern equivalent
4. income method - income producing property
84
T or F: Builders Lien Act (the “BLA”) gives priority to the lien over a mortgage as of the date the lien is filed in the Land Title Office
TRUE
85
Residential (statute) rent
- one increase every 12 months
- regulated by cpi
86
Transport Canada requires all pilots to pass an on-line aviation knowledge test when:
drones are 250g-25kg
87
When must transparency declarations be filed by transferees?
- fee simple estate
- life estate
- rights to occupy under lease exceeding 10 yrs
- certain rights under agreement for sale
88
Doctrine of merger
limits remedies available to parties
89
Private Nuisance defenses:
- statutory authority (unavoidable)
- damage caused is trifling or of little consequence
90
The equity of redemption
A legal principle that grants a borrower to redeem the mortgage after the contractual date.
91
In British Columbia, a lender who holds a mortgage registered as a charge on an otherwise clear title to a borrower’s land has:
an interest in land created by contract.
92
When must a brokerage file financial statements, accounting report?
within 120 days after the fiscal year end
93
Leasehold interest
Fixed duration
94
how much $ needs to be in the operating expenses (common expenses) fund for strata
MUST have 25% of operating costs in the bank AT ALL TIMES
95
Which of the following is a type of summary that needs to be attached to a Form B:
A summary of the strata corporation's insurance coverage.
96
What regulations may give tenants a right of first refusal over a renovated or newly constructed rental unit?
a) The corporate bylaws of the developer or the landlord;
b) The RTA and the regulations that establish the Residential Tenancy Board; c) The RTA and municipal tenant relocation policies; or
d) RESA
C
97
T or F: a team can be a combination of licensees & non-licensees
TRUE
98
How often are depreciation reports required?
every 3 years
99
it is impossible to develop a marketing program that fits every buyer & seller
Market segmentation
100
T or F: An implied easement may result if the intention of the property owners has not been sufficiently explicit.
TRUE
101
Order absolute
- final step of foreclosure
- lender cannot sue borrower on personal covenant
102
Indian reserves - Indian act
- first nations have the right to benefit from the land allocated to them
- not subject to the land titles
103
What is legislation?
The land title act
104
Advances
bank won't give you full amount of $. they will give you little by little & check to see if you have paid for construction.
- stages
105
A special flights operation certificate is required:
to fly a drone over 25kg!
106
T or F: a mortgage that is taken over by a buyer from the original borrower, the original borrower can still be liable
TRUE
- Assumption
107
What levels of radon are harmful to health?
Radon levels exceeding 200Ba/m3 are harmful
108
Bylaws cannot be enforced until:
filed at the LTO
109
6 ways to terminate authority
1. express
2. termination by conduct (act by principle that is inconsistent)
3. operation of law
4. revocation
5. frustration
6. performance
110
Where is the manufactured home registry maintained?
by BC registry services under the act
111
What does a buyer buy in a strata corp?
a leasehold interest NOT fee simple interest
112
Quit claim
terminates borrowers rights in favour of the lender
113
Agreement for sale
an agreement for sale is a purchase agreement where the purchaser agrees to pay the purchase price of the property (usually with a down payment plus monthly payments of principal and interest) directly to the seller
- the vendor “lends” the purchaser some portion of the purchase price but remains the owner of the property
114
Disclosure of remuneration MUST be expressed as:
$$$
- presented when presenting offer
115
Marketing concept focuses on:
clients needs
116
Taxable income formula
net income + depreciation expense (per year) - CCA = taxable income
117
Any clause contained in a mortgage that clogs the equity of redemption is:
VOID
Clog - An option to purchase the mortgaged property given by the mortgagor to the mortgagee at the time the mortgage is negotiated is:
118
What can be shown on both a balance sheet & income statement?
owners equity & retained earnings
119
4 ways to create authority
1. agency by express - writing or oral
2. agency by implication - a party has implied to act on their behalf (do whatever it takes!)
3. usual or customary of the trade
4. agency by ratification - accepts after the fact
120
Minimum LEGAL standard of conduct
RESA
121
Standing offer
can be made to public and accepted by anyone
122
Leasehold
Fee simple with a time limit (eg: first nations land, ubc etc...)
123
3 types of void deed
1. forged deed
2. deed given in exchange for illegal activity
3. non est factum - idk what i signed
124
Retained earnings = ?
Net value
125
PMT =
GDS x income - tax
126
T or F: The registration of a mortgage in the land title office is conclusive evidence that the mortgagee is entitled to an interest in the land described in the mortgage document.
FALSE
- Registration of a mortgage raises only a rebuttable presumption that the mortgage is valid; a registered mortgage is not “guaranteed” under the British Columbia land registration system.
127
A computer program designed specifically to damage or disrupt a system
Malware
128
T or F: The covenantor must retain the restricted property, as any subsequent buyer will not be a party to the original contract.
FALSE
129
Interest act
can be any amount. if not stated, 5%
130
When desks are assigned to workers as needs rather than assigning a permanent desk to each worker
hot desking
131
Can an individual tender prepayment of a mortgage if it is NOT PAYABLE for more than 5 years from the date of the mortgage?
YES. an individual can but a CORP. CANNOT.
- it can be for business purposes
132
Terrorist property report must be filed to who?
RCMP & CSIS
133
What releases an offer
- time limit
- no time limit but reasonable time has passed
- revoke before acceptance (MUST BE COMMUNICATED)
- offer rejected
- counter offer
- insanity/death
134
Assets = ?
Liability + owners equity (ALOE)
135
Individuals who are permitted to have how much cannabis?
1. up to 30 grams of dry cannabis
2. up to 4 plants per RESIDENCE (provided that no part of the residence is used as a day-care & they are not visible to the public)
136
Under the Environmental Management Act, a mortgage lender may be liable for the remediation of a contaminated site if the lender:
becomes the registered owner of the site.
137
What is the MAX amount fine allowed for infraction for short term bylaw?
MAX = $2,000
138
Mary registers a document, given to her by John, in the Land Title Office. The document states that:
“I, John, grant to Mary and her heirs, assigns, executors, and administrators, a right of way for persons and vehicles along and upon the easterly 30 feet of the southerly 64 feet of Lot 1, Plan 910, in order to give access to Mary’s property, Lot 2, Plan 910.”
The interest granted is:
An easement (right of way!)
139
Builders lien
- claim made by a contractor
- must be placed within 45 days of project being completed
- placed for 1 year
- developers can use a 10% holdback (holdback period - 55 days)
140
Interim blanket mortgage
- used in developments
- mortgage is placed on the whole development and each lot is released
- once strata plan is created and FILED
141
EV chargers?
strata corps. of 5 or more units are required to obtain an electrical planning report
142
Yield =
NOI/sale price
143
Assets include:
- cash
- accounts receivable
- inventory
144
How much notice is given for disciplinary hearings?
21 days
145
Clogging
VOID
- prevents borrower from redeeming property
146
Acceleration on default
if mortgagor defaults, mortgagee has the option to demand full payment
(Banks will not do this if it is not in their best interest eg: int rates dropped)
147
Can owners of a strata corp. sue the strata corp.?
Yes
148
What is the minimum amount that can be included in the budget for contribution to the contingency reserve fund?
AT LEAST 10 per cent of the total amount budgeted for the contribution to the operating fund for the current fiscal year, regardless of the amount in the contingency reserve fund;
149
A mortgage is:
Evidence & security for a loan
150
Incapacity can occur in 4 ways:
1. infancy
2. mental incapacity
3. foreigners & illiterates
4. incorporated companies
151
What is the notice requirement under the RTA for relocation of a tenant if the owner or their parent, spouse or child, or the owner's spouse's parent or child intends to occupy the unit?
At least 4 months
152
GDS =
PMT + tax / income
153
Appraisal margin of error
10%
154
If a seller serves 3 month notice to their tenant because a buyer intends to occupy the unit, can the tenant dispute this?
YES. within 15 days of receiving it
155
Vendor take back mortgage
vendor transfers the title to the buyer and the SELLER is the LENDER for part of the sale price
156
BC land can be subdivided into:
2 parcels (BC Land title act)
- must be in the public's interest
157
The owner of an interest in real property that is located in British Columbia always has:
common law rights as modified by legislation.
158
T or F: a tenant can grant an easement over a property that extends beyond the end of the tenancy.
FALSE
159
Can a strata corp. sue owners?
Yes
160
Servient tenement
This is the property that is subject to the easement, meaning the owner must allow the dominant tenement to use or access their land for a specific purpose.
161
T or F: The person who agrees to be bound is called the covenantor.
TRUE
- party who makes the promise = covenantor
162
Income =
PMT + tax / GDS
163
CRM (customer relationship software)
a database that manages the user's contacts
164
Portability
Borrower can take current mortgage to new property
- if rates have been changed, they can do a blended rate
165
When can a manufactured home be transferred?
when the home AND the transfer is registered
166
Is the PFF (portable mortgage fund) always charged on portable mortgages
NO. portable funds fee is not necessarily always charged on a portable mortgage
167
As one lowers a discount (or expected yield) rate, the present value of a given series of future payments does which of the following?
it increases
168
The cost approach of appraisal is NOT generally used to value:
Vacant lots
169
Scrambling credit card information into an unreadable format is BEST known as which of the following?
ENCRYPTION
170
Which one of the following transactions does NOT affect the amount of owner’s equity?
business expenses
171
There are two ways to surrender a lease under a commercial tenancy. One is by an act of the parties; the other is:
by operation of law.
172
From the point of view of the lender, the interest charged on a mortgage does NOT represent which of the following?
A payment for a portion of the general overhead and operating costs of the lender
The cost of financing the lender’s debt
An incentive to accept uncertainty or risk
A return on capital invested
The cost of financing the lender’s debt
173
The risk to a mortgagee can be reduced by:
(1) increasing the amortization period.
(2) reducing the monthly payments.
(3) reducing the loan-to-value ratio.
(4) reducing the debt coverage ratio.
(3) reducing the loan-to-value ratio.
174
When determining the rights of a tenant of residential premises, which of the following sources of law must the parties look to?
common law
175
How long does an owner have to live in a property as a principle residence to AVOID ETH
6 months
176
Marketable securities
CURRENT assets
177
The principle of substitution in the comparative approach of appraisal states that:
similar properties that have recently sold are comparable.
178
The consumer price index is a good method to adjust sale prices to the level of values prevailing as of the date of appraisal:
Where the comparable sales are deemed to be not recent.
179
When using the cost approach of appraisal, cost of the improvements is more commonly determined by utilizing:
Correct Answer
current replacement cost.
180
Reproduction cost
exact replica
181
Replacement cost
modern equivalent
182
Of the following methods, which one MUST be used to determine the market value of an unused vacant site?
Comparative approach
183
The cost approach of appraisal is NOT generally used to value:
Vacant lots
184
What is the consumer price index a good method to adjust sale prices to the level of values prevailing as of the date of appraisal:
UNDER NO CIRCUMSTANCES
185
Yield R% (cap rate) =
Income (NOI) / Sale price (Market Value)
186
Yield =
Income / value
187
Market value =
NOI / R%
188
How do you calculate NOI in the Income method process of appraisal?
Gross potential Revenue + other Income - Vacancy & bad debt allowance = GROSS REALIZED REVENUE (aka effective gross income)
GRIV BAD = GRR
- OE = NOI
- Operating expenses
= NOI (net operating income)
189
NOI =
Gross realized income - operating expenses
190
The abolition of the doctrine of notice by the Land Title Act is subject to the exception of:
Fraud
191
The principle of Indefeasibility
Any registered owner who acquires a fee simple estate in good faith and for valuable consideration is protected by our land title system.
- if a person is named on a certificate of title as the owner of the fee simple estate in land, then that is conclusive proof, as far as the world is concerned, that he or she is entitled to that fee simple estate
192
Once a break in the chain of title has occurred, all subsequent transfers or other dealings with the land are of no effect, even though the transactions have been made in good faith and for value.
common law doctrine of the void deed which was overruled by the principle of indefeasibility
193
T or F: for the purpose of assessment & taxation - Each strata lot, together with the owner's share in the common property, is deemed to be a separate parcel of land and improvement.
TRUE
194
T or F: Registered fee simple owners enjoy the guarantee of indefeasibility but registered chargeholders do not.
TRUE
195
T or F: The Strata Property Act generally does not apply on First Nation reserve land, subject to some exceptions.
TRUE
196
Can a Duplicate certificate of title be issued if the property is subject to a mortgage.
NO
197
In relation to the notation of a trust on the title for a property, which of the following correctly describes the meaning of a trustee?
The trustee is the individual or entity in whose name the trust property is held.
The trustee is the individual or entity for whom the property is beneficially held.
A) The trustee is the individual or entity in whose name the trust property is held.
198
