Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
213 Cards in this Set
- Front
- Back
|
What is the difference between Public Law versus Private Law?
|
Public Law – you versus the state (constitution & the gov’t . tax, constitutional & criminal law)
Private or Civil Law – you versus your neighbour (breach of contract ) |
|
|
What are the 4 courts in the Judicial System?
|
Trial or Courts of Original Jurisdiction
1. Small Claims (under $25,000) 2. BC Supreme Court (evidence may be re-heard) Appellate Courts: 3. BC Court of Appeal 4. Supreme Court of Canada |
|
|
What is the difference between Equitable, Common & Statute Law?
|
Equitable Law
- decides cases based on fairness – merged with common law “judicature act” Common Law - court/judge based law – stare decisis - precedents - looks at former cases Statute Law - government law – constitution |
|
|
What are the 4 methods of Enforcing a Judgment?
|
1. Examination of Judgment Debtor
(got assets?) 2. Writ of Execution (sheriff takes assets) 3. Land (got land – judicial sale) 4. Garnishing Order (only a “portion” 30% of wage) |
|
|
What is the Judicial System in BC?
(what is the suing process?) |
1. Commencing the Action (sue someone)
2. Notice of Civil Claim (was writ of summons) - File Response to a Civil Claim (was Appearance) Writing Pleadings: 3. Notice of Civil Claim & Response to Civil Claim 4. Discovery * Trial * Judgment |
|
|
What is the purpose of the Real Estate Services Act?
|
1. Protects the public
2. Establishes the Real Estate Council of BC 3. Sets licensing standards |
|
|
How is the Real Estate Services Act (RESA) administered?
|
Through the Real Estate Council of BC
|
|
|
What is the Real Estate Licensing System?
|
Representative (realtor)
Associate Broker (old agent) Managing Broker (supervises rep’s) Brokerage (ABC Realty) |
|
|
How does the Real Estate Services Act (RESA) govern the Licensees?
|
Through Rules & Bylaws
Regulations are governed by Lieutenant in Council |
|
|
What happens to a licensee if he/she breaches the Real Estate Services Act (RESA)?
|
A hearing is held & possible disciplinary action taken.
Council Can: Cancel, suspend license or fine licensee and/or order re-training. |
|
|
What is the Real Estate Council and what do they do?
|
The Council:
• administers the Act • maintains education • protects the public • issues, renews, cancels licenses |
|
|
What does Real Property consists of?
|
Real property consists of land and whatever is
erected, growing upon or affixed to the land. |
|
|
An estate is an abstract legal concept.
What does this mean? |
There is no tangible/visible existence with an “estate in land.” It is a concept that gives one limited rights to use the land.
“doctrine of estates” |
|
|
Chapter 3
What is a Life Estate? |
An estate that lasts for the lifetime of the
Life Tenant. |
|
|
How is a Life Estate given (sold etc.)?
|
The Reversioner holds the fee simple estate and
grants a life Estate to someone else. Life estate shows as a charge on title. |
|
|
What is a Life Estate pur autre vie?
|
The Life Tenant grants or sells her life estate to another. This now becomes a life estate pur autre vie (for another life).
Legal French meaning "for another's life."Bob is given use of the family house for as long as his mother lives, he has possession of the house pur autre vie. |
|
|
What are the 3 Common Law Wastes?
|
• Voluntary
• Permissive • Ameliorating Very Picky Aunt |
|
|
Is there another waste other than the
3 common law wastes? |
Yes.
Equitable Waste …. (intentionally destroying property). |
|
|
What does “Life without impeachment for waste” mean?
|
It means the Life Tenant is NOT responsible for the 3 common law wastes.
….hmmm (love is blind) |
|
|
What does “Life without impeachment for waste, including equitable waste” mean?
|
It means the Life Tenant is not responsible for the 3 common law wastes and equitable waste so he/she could destroy the property and no action could be taken.
|
|
|
What is the Doctrine of Privity of Contract?
|
Only parties to a contract can enforce the rights to it.
|
|
|
What are 3 interests in land that do not amount to Estates?
|
Less than Estates (pre)
Profits a Prendre Restrictive Covenants Easements “PRE” |
|
|
What are the 3 basic requirements of an easement?
|
• must be a dominant & servient tenement
• must benefit land not person • must be capable of forming the subject matter of a grant (identify boundaries) |
|
|
What is a Restrictive Covenant?
|
Restrictive – stops/prevents
Covenant - one-way agreement whereby the covenantor is the only party bound by the promise. Imposes restrictions on the use of one person’s land for the benefit of another piece of land. |
|
|
What are the three requirements for a restrictive covenant?
|
1. Must be negative
2. Covenantee must retain the property or if the RC benefits the land, then the RC runs with the land (other owners) 3. The burden or restriction must have been intended to bind the land |
|
|
What is a Profits a Prendre?
|
A right giving access onto another person’s property to harvest the land. (fish or hunt)
A Prendre: French … to take, to seize, in contracts, as profits a prendre |
|
|
What is a Fixture?
What is a Chattel? |
Fixture: Something that stays with the land (screwed in or nailed down)
Chattel: Something that was for better enjoyment of the chattel itself (can be easily taken down) |
|
|
What is the KEY concept with Joint Tenancy?
|
The Right of Survivorship. You cannot will your property to heirs. It automatically goes to the survivor in the joint tenancy.
|
|
|
What are the 4 unities in Joint Tenancy?
|
T-TIP
1. Time 2. Title 3. Interest 4. Possession |
|
|
What is a Tenancy in Common?
|
You can Will your property to anyone you want.
Only one unity – Possession. |
|
|
Chapter 4
What is the difference between a void and a voidable deed? |
A void deed has no legal affect.
A voidable deed gives an option to void. |
|
|
What is the Torrens System?
|
Actual title to land is registered, not just the documents affecting title. We no longer have to search back through deeds to prove ownership.
|
|
|
What does the principle of Indefeasibility mean?
|
It guarantees title to the buyer, that if they have dealt with the registered owner on title and
paid fair market value, no one can dispute their ownership. |
|
|
If the true owner (fee simple owner) cannot get his property back due to the Principle of Indefeasibility what can he do?
|
He can apply to the Assurance Fund for compensation.
|
|
|
What is the difference between a Caveat and Pending Litigation?
|
Caveat – is a note placed on title by a person claiming an interest in that land and hinders the sale. Must renew the caveat every 2 months.
Pending Litigation – Court action has begun. Hinders the sales as well. |
|
|
Does a Manufactured Home have the same registration system as the Torrens System?
|
No. Not registered in Land Title Office but in a Manufactured Home Registry in Victoria.
|
|
|
Chapter 5
In Trespass, what are? 1. Wrongful Entering? 2. Wrongful Remaining? 3. Wrongful Placing? |
1. Wrongful entering
… entered areas of no trespassing 2. Wrongful remaining … asked to leave, but you continue to stay 3. Wrongful placing … put something on another’s property |
|
|
What 3 things must be proven for trespass?
|
1. It must be Intentional (meant to do it)
2. Direct Act (voluntary) 3. Actionable per se (no damages need to be proven) |
|
|
What are the Remedies to Trespass?
|
1. Damages (money)
2. Injunction (stop something) 3. Self help (gently remove someone) |
|
|
What is Private versus Public Nuisance?
|
Private Nuisance – affects the use and enjoyment of an individual’s property. (bees in my hot tub)
Public Nuisance – affects the safety/comfort of the public. (large factory emitting toxic waste) |
|
|
Do you need to Prove Damages in Trespass and Nuisance?
|
Trespass - No
Nuisance – Yes |
|
|
If a bee keeper has been running his business for 25 years and you moved in next door and claimed the bees attack every night you go out to use your hot tub -
Could you sue for Nuisance? |
Yes, this “could” be a Private Nuisance if the bees disturbed the person’s use and enjoyment of their property, continually.
|
|
|
The remedies for Nuisance are very similar to Trespass.
What is the difference? |
AID
Damages …. (same as trespass) Injunction …. (same as trespass) Abatement – peaceable entry onto someone’s property to stop/prevent a nuisance |
|
|
What is Negligence?
|
A failure by someone who is considered a skilled expert in his or her field to provide the duty of care as required by law.
(Doctor, Lawyer, Pilot, Realtor – fiduciary duty to take care) |
|
|
What 3 things do the courts look at to determine Negligence?
|
1. there must have been an untrue statement
2. it must have been made negligently 3. a reasonable person would have relied on that statement ..if yes, then there may be a case of negligence. |
|
|
What is the difference between Negligent Misstatement or Deceit & Fraudulent Misrepresentation?
|
Negligent Misrepresentation - gives advice or opinion without due care or qualification.
(don’t worry about it, I’m sure it’s fine…. attitude) Fraudulent Misrepresentation – Big Lie! |
|
|
What is a Tort?
|
A tort is a civil wrong such as:
Defamation of character or negligence…. |
|
|
What is the Occupiers Liability Act?
How may it affect you? |
An occupier owes a duty of care to see that the premises are reasonably safe for persons coming on the property.
This affects realtors at open houses as the “occupier” is liable. |
|
|
Chapter 6
What is the difference between a lease and a license? |
A lease creates an interest in land (registered on title)
A license does not. There is no landlord tenant relationship with a license. Test: Did you receive “exclusive” possession? Then you probably received a Lease. |
|
|
Do lease agreements have to be in writing?
|
Yes, unless the lease is for less than 3 years.
|
|
|
How do you terminate a Commercial Fixed Term tenancy?
|
It just ends – No notice required.
|
|
|
In a Residential tenancy, if the landlord wants to use the property, how much notice to vacate must he/she give the tenant?
|
Two months and in writing.
|
|
|
What are some ways a Residential Landlord can end the tenancy?
|
1. Non-payment of Rent
2. Just Cause 3. Landlord use of the property 4. Landlord sells property |
|
|
In a Residential one year fixed term tenancy, can a landlord who wants his mother to move in, give the tenant the appropriate 2 months notice to move out early, after the tenant has been there for 6 months?
|
Absolutely not. He/she must give notice 2 months before the fixed term period ends. The tenant cannot be made to leave before the fixed term ends, unless he wants to of course. But the landlord must wait until the term is up to move in.
|
|
|
What rules govern residential tenancy?
|
The Residential Tenancy Act
|
|
|
In Commercial tenancy how much notice must be given to terminate the tenancy if it is not a fixed term?
|
One rental period for weekly or monthly and 6 months for yearly. (Form does not matter).
|
|
|
In a commercial and residential tenancy can the landlord seize and sell tenants goods for non payment of rent? (called distress)
|
Commercial tenancy - Yes.
Residential tenancy – No (must go through Sheriff) |
|
|
Who makes up the Strata Corporation?
|
All the strata lot owners.
|
|
|
Chapter 7
What is limited common property? |
Common property that is limited or exclusive to a unit owner – things such as parking stalls, balconies, patios. Limited to that owners use.
|
|
|
What is the formula for Unit Entitlement?
|
Owner’s sq. footage divided by the total sq. ft. of all strata lots, multiplied by the common area
costs, then divide by 12 for monthly. 1400 160,000 x 65,000 ÷ 12 = ______ |
|
|
What is a Special Resolution and what vote does it take to pass it?
|
A special resolution involves a significant change in the use or appearance of the common property. There must be ¾ (75%) vote to pass a special resolution.
|
|
|
A husband and wife living in the same condominium unit, have how many votes?
|
Only one vote per unit.
|
|
|
When selling a strata unit what two forms should be requested from the Strata Corporation?
|
1. Form B (Information Certificate)
2. Form F (Certificate of Payment) (Better Find) |
|
|
When selling a strata unit a purchaser should review the minutes from all meetings from how far back?
|
Go back 24 months
(see what the strata council has been talking about). |
|
|
A condominium owner receives a fee simple title. What is different when purchasing a cooperative?
|
In a Coop, the owner becomes a shareholder and signs a Shareholder’s Agreement. No fee simple interest.
|
|
|
Chapter 8
What is the liability of a sole proprietor? |
Unlimited liability (creditors may collect personal assets)
|
|
|
What is the liability of a General Partnership?
|
Unlimited liability (creditors may collect personal assets). Also liable for each other.
|
|
|
What is a Limited Partnership made up of?
|
One (or more) General partners and one or more Limited partners. Limited are like silent partners or investors.
|
|
|
In a limited partnership what is the liability?
|
General partners have unlimited liability.
Limited partners have limited liability. |
|
|
What are three main points about a Corporation?
|
1. Separate legal entity
2. Board of directors responsible to shareholders 3. Has its own income tax status |
|
|
What would be the reason for forming a Joint Venture?
|
Two or more individuals or companies join together to share the expense of a venture and subsequently share in the profit (or loss). Less of a risk.
|
|
|
What is the Cost Principle?
|
Price actually paid for an asset (not what it is worth today).
|
|
|
What is the Revenue Principle?
|
Revenue recorded when earned (accrual basis).
Date Rev |
|
|
What is the Matching Principle?
|
Expenses are matched with Revenue.
|
|
|
What is the Objectivity Principle?
|
All accounting information should be reported on objectively determined and verifiable data. (not post it notes!)
|
|
|
What is the Consistency Principle?
|
Once a company has adopted an accounting method they should stay with it. Don’t hop around!
|
|
|
What are three things about a Fiscal Year end?
|
1. Can be different than a calendar year
2. Taxation year can be no longer than 53 weeks 3. Can only change fiscal year once |
|
|
What is the First Year Rule in deducting Capital Cost Allowance? (CCA)
|
Only 50% of the depreciation is allowed the First Year.
|
|
|
What is the formula for the Straight Line Method of Depreciation?
|
Cost of Asset – Salvage Value
______________________________ Economic Life = depreciation expense |
|
|
Chapter 9
A licensee who does not follow the client’s instructions has breached what? |
His/her Fiduciary Duty.
|
|
|
If a licensee is receiving fees from more that one client, what must the licensee do?
|
Disclose to all parties, in writing, BEFORE a contract is presented.
|
|
|
What does Duty of Discretion mean?
|
Duty to keep the client’s information confidential. (divorce, financial trouble, must move fast etc.)
|
|
|
What does Duty to Disclose all options mean?
|
The licensee has an ethical duty to present all options to a client, even if it isn’t in favour of the licensee. Let the client make that decision.
|
|
|
What must a licensee do if she is buying or selling a property for herself, or for an immediate family member?
|
Disclose in Writing, BEFORE she presents the offer, that she is a licensed realtor and she is buying the property for herself (or family member) AND describe Why she is buying it. (to flip, to rent out, to live in etc.).
|
|
|
Chapter 10
What is a standing offer? |
Offer made to general public and can be accepted by anyone.
|
|
|
When can an offer be revoked?
(taken back) |
Before Acceptance.
(“I revoke, hello how are you”) |
|
|
What is Consideration?
|
Giving one thing for another, such as title to property for a sum of money.
|
|
|
You must have capacity to create a binding contract.
What are 4 issues that could make a Contract Voidable? |
1. Infancy (19 in BC)
2. Insanity and Intoxication 3. Foreigners and Illiterates 4. Incorporated Companies (does it exist?) |
|
|
A contract must have Legal Object.
What does this mean? |
A Contract is Void if it is for illegal, immoral or criminal purposes.
|
|
|
What does Genuine Consent mean?
|
Parties are in mutual agreement as to their respective rights and obligations. They have a clear understanding as to the substance of the contract.
|
|
|
In law what are the three things that constitute Misrepresentation?
|
1. Statement must be false
2. Must have induced the party to enter into a contract 3. Must be one which would have induced a reasonable person to enter into the contract |
|
|
What is the difference between Innocent Misrepresentation and Fraudulent Misrepresentation?
|
Innocent – false statement made without knowing it is false
Fraudulent- knows it is false and doesn’t care! BIG LIE! |
|
|
What is the difference between latent and patent defects?
|
Patent – visible to the eye. Easily discoverable
Latent – not easily discovered and crucial to the use and enjoyment of the property. |
|
|
What is a Common Mistake?
|
Both parties contract for something that doesn’t exist. (cabin burned down before the contract was made, but neither party was aware of this)
|
|
|
What is a Mutual Mistake?
|
Both parties make a fundamental mistake about the contract but each make a different mistake. (one thinks London, England and the other London, Ontario)
|
|
|
What is a Unilateral Mistake?
|
One party makes a mistake and the other party is aware of it and does nothing to correct it.
|
|
|
What is Frustration?
|
Parties contract for a house, which exists but before completion it burns down.
|
|
|
What is Duress?
|
One person is forced into entering into a contract against their will (bodily harm).
|
|
|
What is Undue Influence?
|
One person in a dominant position influences the other to sign a contract.
|
|
|
What is a Warranty?
|
A promise in a contract.
“I warrant the pool is in good working order” |
|
|
What is the Doctrine of Privity of Contract?
|
Only the parties to the contract can be sued.
This doctrine does not apply to land. |
|
|
What are the three main rules in Statutory Assignment?
|
1. The assignment is in writing
2. It is absolute (whole amount) and unconditional 3. Notice has been given in writing to original promissory |
|
|
Who does the escape clause in the contract of purchase and sale protect and why?
|
It protects the Vendor by stating that the buyer agrees that only the representations concerning the property are those written into the contract.
|
|
|
What remedy is available for breach of contract under common law?
|
Damages
|
|
|
What 3 remedies are available for breach of contract under equitable law?
|
1. Specific performance
2. Injunction 3. Quantum Meruit |
|
|
Chapter 11
Under Common Law, do contracts have to be in writing to be valid and enforceable? |
No, they can be verbal or by conduct.
|
|
|
What does section 59 of the Law and Equity Act say about contracts dealing with land?
|
That (in most cases) they must be in writing to be enforceable. There are exceptions.
|
|
|
What form accompanies the Listing Contract?
|
An Information Form (compiles additional information such as contaminated property)
|
|
|
What is the role of the Competition Act?
|
Eliminates restraints on trade, to encourage competition.
Prohibits things like price fixing and misleading advertising. |
|
|
In a Contract of Purchase and Sale, what is the difference between an amendment and an addendum?
|
Amendment – records any changes to the contract
Addendum – records any additions to the contract |
|
|
What is a “subject to clause” called in a Contract of Purchase and Sale?
|
A condition precedent. (subject to the sale of your home..)
|
|
|
Are Contracts of Purchase and Sale binding without a deposit?
|
Yes, consideration is your promise to sell, my promise to buy.
|
|
|
What are the 3 main requirements for a contract?
|
1. Offer
2. Acceptance 3. Consideration (usually money but not necessarily) |
|
|
What is the difference between express warranty and implied warranty?
|
Express warranty – written into the contract
(vendor warrants the roof is new) Implied warranty – not written in but implied or assumed (builder’s work is of good quality) |
|
|
What is a Collateral Warranty?
|
Not part of the main contract but associated with it.
|
|
|
What is the Doctrine of Merger?
|
The responsibilities of parties to a contract merge or end upon completion of that contract.
|
|
|
Under the Builders Lien Act how many days does the claimant have to file a claim?
|
45 days
|
|
|
Under the builders lien act how much should the owner hold back and for how long?
|
Owner should hold back 10%in trust for 55 days from issuance of a certificate of completion.
|
|
|
What is Norfolk vs. Aikens?
|
Upon completion of the transaction, the vendor will provide title to the property in return for payment of the purchase price.
|
|
|
What is a Condition Subsequent?
|
A condition whose occurrence will bring the contract to an end.
(a clause that says, “if the buyer fails to pay deposit, seller may terminate, for example”) |
|
|
What is a True Condition?
|
This condition must happen for the contract to be fulfilled – no one can waive the condition.
|
|
|
What does a Time Clause do?
|
It protects the vendor. If the buyer has a “subject to the sale of his house” clause, the licensee would add a time clause which states that if another offer comes in the vendor has the right to invoke the time clause and accept the 2nd offer.
|
|
|
Chapter 12
What are the 3 ways to create an Agency? |
1. Express Contract
2. Implied Agency 3. Agency by Estoppel |
|
|
In Agency, what is Ratification?
|
An agent’s authority can be ratified or granted retroactively, as if the agent had the authority to begin with.
|
|
|
What are the 3 types of Actual Authority?
|
1. Express
2. Implied 3. Usual or Customary |
|
|
What are the 3 types of brokerage listing contracts?
|
1. Exclusive Listing
2. Multiple Listing (MLS) 3. Open Listing |
|
|
A licensee representing the buyer has an Assumed Buyer-Agency relationship. What other relationship could he/she have with the buyer?
|
An Exclusive Buyer Agency (buyer may even pay a fee to licensee upon purchase of property)
|
|
|
What is Designated Agency?
|
When the Listing Realtor and the Selling Realtor are from the same brokerage, the brokerage will give the realtors designated agency so that they may act as sole agents for their clients.
|
|
|
What is Limited Dual Agency?
|
“Double ender”
Limited Dual Agency is necessary when a licensee acts as a Designated Agent for both the seller and the buyer in a single transaction or for competing buyers. Limited Dual Agency actually limits the duty of full disclosure required by law. The disclosure is modified so the licensee can keep certain information confidential such as the price the buyer is willing to pay, the price the vendor will accept or their motivation. |
|
|
What is Fiduciary Duty relating to a licensee?
|
An obligation of the licensee to look out completely for the interest of the client. A duty to take care of their clients.
|
|
|
Chapter #13 & 14 - MATH
What is an Interest Only Loan? |
Only the interest is EVER paid back! – none of the principal.
|
|
|
What is an Interest Accruing Loan?
|
Highest Risk Loan to the lender, as none of the interest and none of the principal is paid back.
The interest keeps accruing (adding up). |
|
|
What type of loan calls for the largest payments to be at the beginning of the loan?
|
Straight Line Principal Reduction loan.
|
|
|
What is the most typical mortgage loan payment plan?
|
Constant Payment Mortgage loans. Your payment is the same each month $500, but the principal & interest is ever changing each month, so eventually; you pay more principal and less interest.
|
|
|
What is the Doctrine of Equity of Redemption?
|
Permits the borrower to repay the debt and regain the property even after the date for repayment has passed. (foreclosure)
|
|
|
Chapter 15
Is a mortgage a loan? |
No. It is an interest in land created by contract as security for a loan. (an interest is registered on your land by the lender)
|
|
|
What is an Equitable Mortgage?
|
The first mortgage registered is the legal mortgage and other mortgages are considered equitable mortgages (2nd, 3rd)
|
|
|
What are the 3 ways to create an equitable mortgage?
|
1. Owner borrows on his equity (creates an equitable mortgage)
2. Deposit of Duplicate Certificate of Title (new lender holds duplicate title as collateral) 3. Agreement to give a mortgage in the future is recognized as a present mortgage. |
|
|
What does Prohibition against
Clogging mean? |
It means that no person shall be prevented from redeeming his/her property back.
A lender cannot put terms in the mortgage that prevent this. |
|
|
Can the lender insert a collateral advantage into the mortgage contract?
|
Yes. As long as it is not in the nature of a penalty or unduly restrictive.
It can go beyond the mortgage contractual agreement time. |
|
|
In a mortgage contract what is an Omnibus Clause?
|
Lender has the option to pay any monies that the borrower defaults on, adding them to the principal.
|
|
|
What is an Interim Blanket Mortgage?
|
A mortgage is placed on a whole development and the mortgage is released on each unit when sold. Security kept over rest of project.
|
|
|
What is a Vendor Take Back Mortgage?
|
Vendor gives a mortgage to buyer (vendor is now the lender) as part of the sale of the property.
Title is transferred to buyer’s name on completion |
|
|
What is a Wrap Around Mortgage?
|
A clause in the second mortgage agreement directs the first mortgage payments and the second mortgage payments to the second mortgage lender (wrap lender).
|
|
|
Federal Interest Act:
What happens on a mortgage document? 1. what rate of interest can be charged? 2. if no interest is mentioned in the document? 3. if interest is mentioned, but no rate is shown? |
1. There is no limit
2. If no interest mentioned no interest can be charged 3. If interest is mentioned but no rate, then 5% can be charged |
|
|
What is the Federal Interest Act’s rule on Mortgage Repayment?
|
You can repay any time after the expiry of 5 years from the date of the mortgage plus, additional 3 month’s interest.
|
|
|
What does the Property Law Act do?
|
It limits the vendor’s liability to the lender when the vendor’s mortgage has been assumed by a 3rd party.
|
|
|
In a situation where the buyer is assuming the mortgage, what would be the best option for the vendor to extinguish his liability?
|
A Novation. Substitution of one contract for another. The original contract no longer exists and a new contract is made.
Vendor should get the new buyer qualified by the bank and have a new contract made up between the new buyer and the |
|
|
In foreclosure why go for a Judicial Sale?
|
If the property is worth less than the debt because the petitioner can sue the borrower on his personal covenant for the difference.
|
|
|
In a foreclosure why go for an Order Absolute?
|
If the property value is equal to or greater than the debt, the petitioner can keep any profit but the petitioner cannot sue the borrower on his personal covenant.
|
|
|
What is a Quitclaim Deed?
|
Borrower gives his claim or interest in the property back to the lender.
|
|
|
What is an Agreement for Sale?
|
The title does not transfer upon completion, it stays in the original vendor’s name until the final payment. (buyer moves in though)
|
|
|
Chapter 16 & 17
When you are doing a Market Value question: 1. When would there be 4 steps to the formula? 2. When would there be 5 steps? |
1. When there is No term
2. Where there IS a TERM |
|
|
When the question asks “what is the market value of the OFFER” what must you remember to do?
|
Add in the Down Payment.
|
|
|
What is a Bonus Mortgage?
|
Where a bonus or fee paid to the mortgage broker or bank is added on to the mortgage loan and this amount is used to determine payments…. yet a lesser amount is advanced (to the lawyers)
|
|
|
In a Bonus Mortgage what is the disclosure rate?
|
J1 (annual)
|
|
|
Chapter 18
What areas do these Federal Government departments control that licensees should be aware of? 1. Department of Fisheries 2. Department of Transportation |
Dept. of Fisheries – activities around water as to not harm the fish or water.
Dept.. of Transportation – restricts heights in and around airports. |
|
|
What is the Agricultural Land Reserve?
|
Restricts the use of certain land (over 2 acres) for agricultural purposes.
|
|
|
Who do you apply to for partial or complete exemption from the Agricultural Land Reserve?
|
Land Use and Environment Committee.
|
|
|
How many Regional Districts are there in BC?
|
There are 30.
|
|
|
The Provincial Government delegates some of its powers to the local governments. These powers are set out in what Act?
|
The Local Government Act.
|
|
|
What is the only municipality in BC that does not derive its powers from the Local Government Act?
|
The City of Vancouver.
It is regulated by the Vancouver Charter. |
|
|
Is it mandatory for a municipality to have an
Official Community Plan? |
No. But once one is in effect, all bylaws permits and all works undertaken must be consistent with it.
|
|
|
What are the 3 rules that apply to a
Legal Non Confirming Use? |
1. If discontinued for more than 6 months it loses status, unless seasonal
2. Can not add on, unless allowed by Board of Variance 3. If damaged by 75%, cannot be rebuilt |
|
|
Can a Board of Variance change a zoning bylaw?
|
No. They can only permit minor variances.
|
|
|
Chapter 19
What is the formula to figure out property taxes payable? |
Tax Rate x Net Taxable Value
______________________________ 1,000 (mill rate) = Gross taxes payable |
|
|
When you receive your tax statement and you don’t agree with it can you appeal it?
|
No.
You must appeal it when you receive your Assessment Notice. Once you receive the statement you must pay. |
|
|
If you don’t agree with your assessment notice what is the order of appeals?
|
Property Assessment Review Panel/Board
Property Assessment Appeal Panel/Board Supreme Court of BC BC Court of Appeal (R.A.S.A.) |
|
|
Who is eligible for the Homeowner grant?
|
The residence owner, living in principal residence wholly or in part. Only one resident can claim this grant.
(If renter living there owner cannot get grant for that property) |
|
|
Who qualifies for Old Age Homeowner Grant?
|
1. 65 years or older or
2. Disability allowance or 3. Permanently disabled or 4. Recipient of a War Veteran Allowance (WW1 & 2 & Korean) |
|
|
Who can defer property taxes?
|
Canadian citizen or landed immigrant who has lived in BC for at least 1 year ……
1. and is 55 years old (or older) or 2. Widowed or 3. Permanently disabled |
|
|
What is the Value in Use rule for property taxes?
|
Used in farm land – the assessor must consider the property value as what it is been used for, not its potential value .
Presently being used a farm |
|
|
In property tax assessment what is
Special Residential? |
This permits certain residential properties to be assessed according to the value based on their current use.
(Res. property between 2 commercial buildings) |
|
|
In construction what is a “soft change”?
|
Soft changes are the result of moving to the metric system where the same physical size is now expressed in metric.
For example: a 2 by 4 is still the same size but is now 38mm thick and 89 mm wide. |
|
|
In construction what is a “hard change”?
|
Hard changes are the result of moving to the metric system and the physical size, now expressed in metric, has changed.
e.g. plywood, waferboard, gypsumboard |
|
|
What is the Home Protection Office (HPO) responsible for?
|
1. Builder licensing and monitoring mandatory 3rd party warranty insurance
2. No-interest repair loan program and PST relief for owners of leaky homes 3. Research and education |
|
|
What are the 4 top objectives of the National Building Code or BC Code?
|
1. Structural safety
2. Public health 3. Accessibility 4. Fire and structural protection of buildings |
|
|
When measuring the living area of a home do you include the basement?
|
Only if it is above grade.
|
|
|
Name 3 heating systems.
|
1. Forced Warm Air
2. Convective 3. Radiant |
|
|
What are two disadvantages of Electrical Baseboard Heating?
|
1. lack of air filtration
2. baseboard occupies wall space |
|
|
What is the formula for finding Amperage, Wattage or Voltage?
|
W
V = A |
|
|
What is the difference between Patent and Latent defects?
|
Patent – defects visible to the eye
Latent – Not easily discovered |
|
|
Chapter 21
What is the difference between Market Value of a property and the Value to the Owner? |
The market value is objective (based on fact) while the value to the owner is subjective (based on emotion).
|
|
|
What are 5 things that can affect sale price?
|
1. Financing terms
2. Advertising 3. Time on market 4. Special purchasers 5. Sales between related parties (FAT “SS”) |
|
|
In the definition of Market Value the words “recent” and “similar” are used. What do they mean?
|
Recent – period of time in which the prices in the area have been relatively stable.
Similar – comparables that are similar to the subject property. (sq. ft. bedrooms, etc.) |
|
|
How do you determine if a property is being used for its highest and best use?
|
Ask the question: if this building burned down today, would the same building be constructed in its place?
|
|
|
What is the Comparative Approach of Appraisal?
|
Finding properties to compare to the subject property that are similar and have recently sold.
|
|
|
What is the Income Approach of Appraisal?
|
Finding income producing properties to compare to the income producing subject property that are similar and have recently sold.
|
|
|
When would you use the Cost Approach of Appraisal and what is it?
|
This would be used when there are No comparables.
Cost method – assumes market value of a property is equal to the value of the vacant site plus the cost of constructing the improvement. |
|
|
When would you use the Residual Approach of Appraisal?
|
Used when property possesses latent value.
|
|
|
Chapter 22
What is the Cost Approach of Appraisal formula? |
Square footage 1500
cost per sq. ft. to build x 50 - Depreciation - 10% + Land value + $45,000 = (market value) =$109,800 |
|
|
What is physical curable depreciation?
|
Can be repaired cost effectively (needs paint)
|
|
|
What is physical incurable depreciation?
|
Cannot be repaired cost effectively (foundation)
|
|
|
What is functional depreciation?
|
Loss in value due to outdated or
inadequate design. |
|
|
What is the difference between functional curable depreciation and functional incurable depreciation?
|
Curable - Items can be replaced cost effectively. (fixtures and fittings)
Incurable – changes required to modernize are not cost effective. |
|
|
Chapter 23
What is the formula for the Income Approach of Appraisal? |
Gross Potential Revenue
- Vacancy and Bad Debt Allowance = Gross Realized Revenue - Operating Expenses (of landlord) = Net Operating Income |
|
|
What is the formula to find YIELD?
|
YIP
I (net operating Income) Y (Yield) = P (sale Price) |
|
|
What is the big difference between Potential Revenue and Realized Revenue?
|
Potential Revenue is before vacancy and bad debt have been subtracted. Realized is after.
|
|
|
Chapter 24
What happens on completion day? |
• Vendor is entitled to the net proceeds of the sale
• Purchaser is entitled to the transfer of title |
|
|
What time of day is possession?
|
Noon
|
|
|
When adjusting property taxes, who pays taxes for possession day? When are all the adjustments made what day?
|
Purchaser Pays Possession (PPP)
Adjustment Day |
|
|
Property taxes are paid for the entire year on what day?
|
July 1st
|
|
|
On a Statement of Adjustments, where does the commission show for the Vendor.
Debit Credit |
As a debit on the statement
debit credit Commission x |
|
|
Who pays the Property Transfer Tax?
& what is the amount? |
The Buyer pays on adjustment day.
1% on the first $200,000 of the fair market value of the property, plus 2% on the fair market value over $200,000. Easy way to remember: 1 of 2 2 of balance |
|
|
How is the tax adjustment calculated?
|
Days owed, divided by 365, multiplied by the gross taxes = ________ (adjustment)
|
|
|
When does the deposit show as a debit to the Vendor?
|
When it has been paid directly to the Vendor.
(If it was paid to realtor in trust, then it does not show up on Vendor’s statement) |
|
|
Chapter #25 Marketing
What is Marketing Myopia? |
Marketing Myopia is where the focus in a person’s business is on their product not their customers, also called short-sighted marketing.
|
|
|
A Realtor should create his/her own personal marketing program that consists of 3 integrated strategies.
What are they? |
Integrated Marketing Program:
1. Getting the Client 2. Keeping the Client 3. Getting Referrals Get Keep Refer! |
|
|
What is Marginal or Incremental Analysis?
|
Marginal or incremental analysis – the idea is to increase promotional expenditures until each dollar of promotion expense is matched by an additional dollar of profit.
Due to many uncontrollable factors it is very difficult, if not impossible, to establish the true relationship between promotional expenditures and the resulting sales. |
|
|
What is the Integrated Marketing Program
|
* Getting the Client
* Keeping the Client * Getting Referrals |
|
|
What are the 4 P’s of Marketing?
|
• Product
• Price • Place • Promotion |
|
|
Chapter 26
What is an Needs Analysis? |
It is when you look at what technology you have and what level of technology you will be using.
|
|
|
What is a T.A.P.?
|
Technology Action Plan – a checklist of things to do to ensure you reach your “technological” goals.
|
