1. MODULE 2 : The Fundamentals of Real Estate
1.1. Trade
1.1.1. Registrants can trade
1.1.1.1. selling, leasing
1.1.1.2. listing, prospecting
1.1.1.3. advising on sale/purchase, or on property
1.1.1.4. negotiating
1.1.2. Unregistered persons cannot involve in trading activities or words
1.1.2.1. scheduling appointments
1.1.2.2. organizing files
1.1.2.3. taking pictures of properties
1.2. Types of Relationships
1.2.1. Agency/Client Relationship (Representation)
1.2.1.1. Requires Representation Agreement: Signifies that Buyer is represented as a client. Seller/Broker = Listing Agreement Buyer/Broker = Buyer Representation Agreement
1.2.1.1.1. Commission Agreement is usually described within representation agreement
1.2.1.1.2. "Agreement of purchase and sale" presents negotiation between buyer and seller.
1.2.2. Customer Service (Providing service)
1.2.2.1. Yes - Showing Properties, Drafting Offer, Honesty, Integrity, Loyalty, Confidentialty No - Fudiciary Duty, Exclusive
1.3. Scope Of Ownership
1.3.1. Real Property
1.3.1.1. Real Estate
1.3.1.1.1. Land
1.3.1.1.2. Buildings
1.3.1.1.3. Improvements (Permanent fixtures) Eg. Deck, Shed, Fence
1.3.1.1.4. Fixtures E.g. Wall lamps, chandeliers
1.3.1.2. Intangable
1.3.1.2.1. The Rights of owning property
1.3.2. Personal Property
1.3.2.1. Fixtures
1.3.2.1.1. securely attached – usually permanently – to a property and are to remain upon the sale of the property. Eg. Lights, Curtain Rods. May or May not be included in sale.
1.3.2.2. Chattels
1.3.2.2.1. The distinguishing aspect of a chattel is its mobility. All chattels, by default, are excluded from the purchase of a property. Eg. BBQ
1.4. Title
1.4.1. Chain of title
1.4.2. Title Searching
1.4.2.1. Marketable Title
1.4.2.1.1. Encumbrances
1.4.3. Evidence of Ownership
1.4.3.1. Completion Date
1.4.4. Land Registry Office
1.5. Mortgage Terms
1.5.1. Mortgage = Charge
1.5.1.1. Lender
1.5.1.2. Borrower
1.6. Types of structures
1.6.1. Residential
1.6.1.1. Attached
1.6.1.1.1. Semi-detached
1.6.1.1.2. Towhouse (Row House)
1.6.1.1.3. Linked Dwelling
1.6.1.1.4. Multi-unit residential dwelling
1.6.1.2. Detached
1.6.1.2.1. Bungalow
1.6.1.2.2. Bi-level/Split entrance
1.6.1.2.3. One and one-half storey
1.6.1.2.4. Two Storey
1.6.1.2.5. Split-level
1.6.2. Commercial
1.6.2.1. Office
1.6.2.2. Retail
1.6.2.3. Mixed-Use
1.6.2.4. Multi-unit
1.6.2.5. Industrial
1.6.2.6. Agricultural
1.7. Real Estate Governance
1.7.1. RECO
1.7.1.1. Mandate
1.7.1.2. REBBA
1.7.1.3. Activiteis
1.7.2. Industry Associations
1.7.2.1. Canadian Real Estate Association (CREA)
1.7.2.2. Ontario Real Estate Association (OREA)
1.7.2.3. Local real estate boards
1.7.2.3.1. Toronto Real Estate Board (TREB)
1.7.2.3.2. MLS
1.7.2.3.3. Member Services
1.7.2.4. Other associations
1.7.2.4.1. REIC
1.7.2.4.2. CCIM
1.7.2.4.3. SIOR
1.8. Roles within a Brokerage
1.8.1. Broker of Record: Statuary Obligations
1.8.1.1. ensures brokerage compliance w REBBA
1.8.1.1.1. don't usually deal interact directly with buyers and sellers
1.8.1.2. Multiple Offices
1.8.1.2.1. each should be supervised by a Branch Manager if there is more than one registrant
1.8.2. Salespersons
1.8.2.1. Working with Sellers
1.8.2.2. Working with Buyers
2. MODULE 1 : The Real Estate Profession
2.1. Regulatory Bodies
2.1.1. CREA
2.1.2. OREA
2.1.3. RECO
2.1.3.1. REBBA
2.1.3.1.1. Code of Ethics: Requirements for acceptable conduct by registrants (C1 M1 P13)
2.1.4. Provincial Government
2.1.4.1. Ministry of Government and Consumer Services
2.2. Types of Markets
2.2.1. Seller's Market
2.2.2. Buyer's Market
2.2.3. Balanced Market
2.3. Types of Real Estate
2.3.1. Residential
2.3.1.1. Rural, Recreational, and Agricultural Sales
2.3.1.2. Residential Condo
2.3.1.3. Residential Resale
2.3.2. Commercial
2.3.2.1. Leasing Commercial
2.3.2.2. Buying Commercial
2.4. Tasks of Real Estate Agent
2.4.1. Representing a Seller (P71)
2.4.1.1. Brokerage Name: Listing Brokerage Sales Person Name: Listing Salesperson Agreement Name: Listing Agreement
2.4.1.1.1. Prospecting
2.4.1.1.2. Marketing The Property
2.4.1.1.3. Preparing the Property to be shown
2.4.2. Represent a Buyer
2.4.2.1. Brokerage Name: Cooperating Brokerage Sales Person Name: Selling Salesperson Agreement Name: Buyer Representation Agreement
2.4.2.1.1. Qualifying Buyers and showing the Property
2.4.2.1.2. Preparing/Presenting an offer
2.4.2.1.3. Follow Up
3. MODULE 3 : Property Ownership Rights and Limitations
3.1. Property Interests
3.1.1. Estate
3.1.1.1. Fee Simple Estate
3.1.1.2. Leasehold Estate
3.1.2. Other Types of Property Interests
3.1.2.1. Air Rights
3.1.2.2. Surface Rights
3.1.2.3. Riparian Rights
3.1.2.4. Mineral Rights
3.2. Concurrent Ownership
3.2.1. Joint Tenancy
3.2.1.1. 4 Unities
3.2.1.1.1. Title
3.2.1.1.2. Time
3.2.1.1.3. Possession
3.2.1.1.4. Interest
3.2.1.2. Survivorship
3.2.2. Tenants in common
3.2.2.1. One Unity
3.2.2.1.1. Possession
3.3. Ownership Alternatives
3.3.1. Condominium
3.3.1.1. Multi-unit Condominium
3.3.1.1.1. Fee simple ownership of unit (Owner)
3.3.1.1.2. Tenancy in Common Ownership of Common Elements
3.3.1.2. Common Elements Condominium (CEC)
3.3.1.2.1. Parcel of Tied Land (POTL)
3.3.2. Co-operative
3.3.2.1. Equity Co-operative
3.3.2.2. Non-Profit Cooperative
3.3.3. Fractional Ownership
3.3.4. Co-Ownership
3.3.5. Land Lease
3.3.6. Life Lease
3.3.7. Timeshare
3.3.7.1. Fee Ownership Interest
3.3.7.2. Right to use interest
3.3.8. Mobile Home Parks
3.3.9. Houseboats
3.3.9.1. Residential
3.3.9.2. Recreational
3.4. Easement
3.4.1. 6 Characteristics of an Easement
3.4.1.1. Specific Use
3.4.1.2. Dominant and servient tenements
3.4.1.2.1. Dominant
3.4.1.2.2. Servient
3.4.1.3. Two different parties
3.4.1.4. Solo Benefit
3.4.1.5. Transferrable
3.4.1.6. Adjoining and Non-Adjoining
3.4.2. Easement Creation
3.4.2.1. Express Grant
3.4.2.2. Perscription
3.4.2.3. Implication
3.4.2.4. Statute
3.4.3. Easement Termination
3.4.3.1. Merge
3.4.3.2. Release
3.4.3.3. Ceasing of purpose
3.4.4. Types of Easement
3.4.4.1. Right of way
3.4.4.2. Party Wall
3.4.4.3. Mutual Shared Driveway
3.4.4.4. Profit-a-Prenddre
3.5. Private Restrictions
3.5.1. Restrictive Covenant
3.5.2. Encroachment
3.5.3. Adverse Possession
3.5.3.1. Visable
3.5.3.2. Exclusive
3.5.3.3. Continuous without consent
3.5.3.4. With owner's knowledge
3.5.4. Government Limitations
3.5.4.1. Expropriation
3.5.4.2. Right to regulate
3.5.4.3. Right to levy taxes
3.5.4.3.1. Real Property Tax
3.5.4.3.2. Land Transfer Tax
3.5.4.4. Escheat
4. MODULE 4 : Land Descriptions And Registrations
4.1. Land Description Methods
4.1.1. Ontario's Land Descrptions
4.1.1.1. 3 types of township
4.1.1.1.1. single front
4.1.1.1.2. double front
4.1.1.1.3. sectional system
4.1.2. Metes and bounds
4.1.2.1. Describe irregular shaped properties
4.1.2.2. Older system of written land descrption
4.1.2.3. Start and end at same point of reference
4.1.2.4. Boundary lines described using compass directions and distances
4.1.3. Surveys
4.1.3.1. 4 components
4.1.3.1.1. Research
4.1.3.1.2. Measurement
4.1.3.1.3. Monumentation
4.1.3.1.4. Plan&/Report
4.1.3.2. 4 types
4.1.3.2.1. Surveyor’s Real Property Report
4.1.3.2.2. Reference Plans (R-plans)
4.1.3.2.3. Plans of Survey
4.1.3.2.4. Plans of Subdivision
4.1.3.3. take precaution
4.2. Legal Land Description
4.2.1. Documents
4.2.1.1. Primary Documents
4.2.1.1.1. Survey
4.2.1.1.2. Deed
4.2.1.2. Secondary Documents
4.2.1.2.1. Registry Records
4.2.1.2.2. Municipal assessment records
4.2.1.2.3. Municipal tax bills
4.2.2. Components
4.2.2.1. Locational Reference
4.2.2.2. Encumbrances
4.2.2.3. Municipality/Registry Office
4.2.3. Needed when...
4.2.3.1. Transferring a title
4.2.3.2. Mortgaging a property
4.2.3.3. Registering an easement
4.2.3.4. Listing a property for sale
4.2.3.5. Drafting an agreement of purchase and sale
4.3. Land Registration
4.3.1. Registry System
4.3.1.1. Accessing the plan or abstract book to identify the appropriate lot number
4.3.1.2. Records property interests using geographic location
4.3.1.3. Documents affecting the property are summarized in chronological orders
4.3.2. Land Title System
4.3.2.1. 3 Land Title Principles
4.3.2.1.1. Mirror Principle
4.3.2.1.2. Curtain Principle
4.3.2.1.3. Insurance Principle
4.3.2.2. Provides an assurance fund
4.3.2.2.1. Land Titles Assurance Fund
4.3.2.3. 2 systems due to mass digitalization
4.3.2.3.1. Land Title Absolute Plus
4.3.2.3.2. Land Transfer Conversion Qualified
4.3.2.4. The Land Registrar operates registration process and guarantees title
4.3.2.5. Properties are organized by land ownership
4.3.3. Land Registration Reform Act (Electronic Land Registration)
4.3.3.1. Transfer/Deed of land
4.3.3.2. Charage/Mortgage of land
4.3.3.3. Discharge of charge/Mortage of land
4.3.3.4. Document General
4.3.3.5. Schedule
4.3.4. Tools: Polaris/Teraview/GeoWarehouse/OnLand
4.3.4.1. 3 Databases
4.3.4.1.1. Title Index Database
4.3.4.1.2. Property Index Database
4.3.4.1.3. Image Database
4.3.4.2. Search for properties on Polaris
4.3.4.2.1. PIN - Property Identification Number
4.3.4.2.2. Owner's Name
4.3.4.2.3. Street Address
4.3.4.2.4. Property Mapping
4.3.4.3. Info available...
4.3.4.3.1. Full property description
4.3.4.3.2. Owner(s)
4.3.4.3.3. List of currently registered instruments
4.3.4.3.4. Map to provide Info on easements, right of way and encroachments
4.4. E-Registration steps
4.4.1. 1) Seller creates a transfer/deed of land
4.4.2. 2) The buyer's lawer is provided access to the document
4.4.3. 3) The buyer's information is added to the document
4.4.4. 4) Electronic signature for completeness is required
4.4.5. 5) Electronic signature for release is required
4.5. Types of surveys
4.5.1. Surveyor's real
5. MODULE 5 : Real Estate And Business Brokers Act
5.1. Registration as sales person
5.1.1. Require registration as a salesperson
5.1.1.1. Advising
5.1.1.2. Showing
5.1.1.3. Conducting Open House
5.1.1.4. Approach and Prospect customers
5.1.1.5. Explanations about the property
5.1.1.6. Accessing a property with a home inspector
5.1.2. Not require registration as a salesperson
5.1.2.1. Flyer - not require registration
5.1.2.2. Booking a showing
5.1.2.3. Installing a lock box
5.1.2.4. Design and post advertisement
5.1.2.5. Witness Signature
5.1.2.6. Prepare documents
5.1.3. Certain individuals can perform specific activities without registeration
5.1.3.1. Property Manager can arrange lease
5.1.3.2. Lawyer disposing of property
5.1.3.3. Financial institution disposing of a property under mortgage default
5.1.3.4. FSBO
5.1.3.5. Auctioneer can auction property
5.2. Reco
5.2.1. Disqualify
5.2.1.1. Assault Conviction
5.2.1.2. Unpaid Judgement
5.2.1.3. Past Conduct
5.2.1.4. Non-Disclosure
5.2.1.5. False Statements
5.2.2. May Disqualify
5.2.2.1. Bankruptcy
5.2.3. Discipline
5.2.3.1. 1 - Warning
5.2.3.2. 2 - Warning + Course $225
5.2.3.3. 3 - Discipline Hearing
5.3. Diclosing Material Facts
5.3.1. Condition of structure
5.3.1.1. Leak
5.3.1.2. Electrical deficiencies
5.3.1.3. Basement water
5.3.2. Environmental Hazards
5.3.3. Build measurements or lot size
5.3.4. property taxes
5.3.5. Zoning
5.3.6. Easement or restrictions on title
5.3.7. Events such as death suicide break-in
5.4. Clear and definite offer
6. MODULE 6 : Key Legislations and Regulations
6.1. Real Estate Contracts
6.1.1. Types of contracts
6.1.1.1. Representation agreement
6.1.1.2. Customer Service Agreement
6.1.1.3. Agreement of purchase and sale
6.1.1.4. Lease Agreement
6.1.2. Contract Rules
6.1.2.1. Privity of contract
6.1.2.2. Parol Evidence rule
6.1.3. 6 Elements for Contract to be enforceable
6.1.3.1. Offer and Acceptance: Mutual Agreement
6.1.3.1.1. Acceptance with no conditions
6.1.3.2. Capacity of the parties
6.1.3.2.1. Competent of mind
6.1.3.2.2. Of age
6.1.3.2.3. Literate
6.1.3.2.4. Corporations
6.1.3.3. Consideration: Each party must recieve something of value
6.1.3.3.1. Past promises are not included
6.1.3.4. Definite and clear
6.1.3.4.1. Has a closing date
6.1.3.4.2. Has exact Prices
6.1.3.5. Lawful Object
6.1.3.5.1. Criminal Activity
6.1.3.5.2. Price Fixing Rent
6.1.3.5.3. Tax Evasion
6.1.3.6. Genuine intention
6.1.3.6.1. Mistakes
6.1.3.6.2. Genuine Intention
6.1.3.6.3. Undue influence
6.1.3.6.4. Duress
6.1.4. Cancel Contract
6.1.4.1. Status of contract
6.1.4.1.1. Void
6.1.4.1.2. Voidable
6.1.4.1.3. Illegal
6.1.4.2. Termination
6.1.4.2.1. Performance - Satisfied
6.1.4.2.2. Mutual Agreement - Both didn't want to go through
6.1.4.2.3. Impossibility of performance
6.1.4.2.4. Operation of law
6.1.4.2.5. Breach of contract
6.1.4.3. Electronic Signature
6.1.4.3.1. Obtain written consent from all parties
6.1.4.3.2. Highlights where to sign
6.1.4.3.3. Confirm e-mail address
6.1.4.4. Privacy Legislation
6.1.4.4.1. PIPEDA
6.1.4.4.2. Privacy Broker
6.1.4.5. Family Law Act
6.1.4.5.1. Ensure both parties consent to transaction
6.1.4.5.2. Excludes investment properties
6.1.4.5.3. Common Law Partner
6.2. Residential Bylaws
6.2.1. Types of Bylaw
6.2.1.1. Sign Bylaw
6.2.1.2. Parking Bylaw
6.2.1.3. Noise Bylaw
6.2.2. Committee of adjustments
6.2.2.1. Granting of minor variances
6.2.2.1.1. rezoning application
6.2.2.1.2. Must be keeping with the Official Plan
6.2.3. Non-Confirming
6.2.3.1. Structure
6.2.3.2. Use
6.2.3.3. Discontinued by
6.2.3.3.1. Long Discontinuous Use
6.2.3.3.2. Demolition or substantial renovation
6.2.3.3.3. Expansion of current use
6.3. Land Severances and subdivision
6.3.1. 90 day time frame
6.4. Municipal Spheres of influence
6.4.1. Responsible
6.4.1.1. Public Utilities
6.4.1.2. Waste Mangement
6.4.1.3. Transportation Systems (Other than highways)
6.4.1.4. Public roads/parking/traffic
6.4.1.5. Culture parks recreation, heritage
6.4.1.6. drainage and flood
6.4.1.7. Structures - fences and signs
6.4.1.8. Parking
6.4.1.9. Animal Control
6.4.1.10. Economic Development Services
6.4.2. Not Responsible
6.4.2.1. Planning processes and land use control
6.4.2.2. Automobile licensing
6.5. FINTRAC
6.5.1. Proceeds of crime
6.5.2. Terrorist financing Act
6.5.3. PCMLTFA
6.5.3.1. Reporting Obligation
6.5.3.1.1. Suspicious Transaction Reporting (STR)
6.5.3.1.2. Large Cash Transaction Reporting
6.5.3.1.3. Terrorist Property Reporting
6.5.3.2. Know your client obligation
6.5.3.2.1. Understand your client
6.5.3.2.2. Ascertain client identity
6.5.3.2.3. Working with foreign clients
6.5.3.2.4. Determine third-party involvement
6.5.3.3. Recordingkeepin gobligation
6.6. Condominium Owners Act
6.7. Tenancies Act
6.7.1. Residential Tenancies Act
6.7.1.1. Unlawful Rent Increases
6.7.1.2. Unlawful Evictions
6.7.1.3. Rights and Responsibilities
6.7.1.4. Resolved in landlord and tenant board
6.7.1.5. Month to month after year lease
6.7.2. Commercial Tenancies Act
6.7.2.1. No restrictions on the landlord for rent increases
6.7.2.2. Disputes are resolved at superior court of justice or small claims court
7. Module 7 : Other Relevant Legislations and Regulations
7.1. Legislation on Salesperson Marketing
7.1.1. DNCL: Do Not Call List
7.1.1.1. Must use both National DNCL and internal DNCL
7.1.1.1.1. Purchase/any sort of agreement signed - expired within 18 months is good; inquiry - within 6 months is good
7.1.1.1.2. Maintain internal do not call list
7.1.2. Canada’s Anti-Spam Legislation (CASL)
7.1.2.1. CEM: Commercial Electronic Messages
7.1.2.2. Does not apply to website/social media posts and two-way voice communication between individuals
7.1.2.3. Good practice:
7.1.2.3.1. 6 months from previous interaction
7.1.2.3.2. Inquiry response
7.1.2.3.3. Opt in to marketing only - obtain consent
7.1.2.3.4. Must be identified by exact name, company and contact info
7.1.2.3.5. Must include unsubscribing instruction in EVERY email. and respond within 10 days to such requests
7.2. The Competition Act
7.2.1. Not allowed:
7.2.1.1. Misleading Advertising
7.2.1.2. Conspiracies
7.2.1.3. Price Maintaince
7.2.1.4. Bid-Rigging
7.2.2. 3 principals to follow:
7.2.2.1. Do not discriminate
7.2.2.2. Do not collude
7.2.2.3. Do not mislead
7.3. Tax
7.3.1. Capital Gains
7.3.1.1. Live in it
7.3.1.2. Inherited
7.3.1.3. Sell due to changes in circumstances
7.3.1.4. 50% of net increase in value from time of purchase to time sold is taxed as part of income tax
7.3.2. Business Income
7.3.2.1. Buy a property with intention to profit
7.3.2.2. Realtor or other estate
7.3.2.3. Frequently selling and buying real estate
7.3.2.4. Rental income
7.3.2.5. Fully taxed
7.3.3. Principal Residence
7.3.3.1. Not Taxable
7.3.3.2. 1 Principal residence per family unit
7.3.3.3. 1.24 Acres max
7.3.3.4. Must be inhabited
7.4. Green Regulations
7.4.1. EPA: Environmental Protection Agency
7.4.1.1. Environmental site assessment.
7.4.1.1.1. Phase 1
7.4.1.1.2. Phase 2
7.4.1.1.3. Phase 3
7.4.1.2. potential issues Must be disclosed to everyone
7.4.1.3. Greenbelt Act 2005
7.4.2. Endangered Species Act
7.4.2.1. Affects build in places that need to protect these animals
7.4.3. Greenbelt Protected Areas
7.4.3.1. Includes
7.4.3.1.1. Oak Ridges Moraine
7.4.3.1.2. Niagara Escarpment
7.4.3.2. Does not include
7.4.3.2.1. Blue Mountains
7.4.3.2.2. Kawartha Lakes
7.4.4. Green Home
7.4.4.1. Energy Star = Good
7.4.4.2. Enderguide = Means nothing - just been tested before
7.4.4.3. Solar assisted systems = good
7.4.4.4. Low flow equipment = good
7.4.4.5. Copper wiring > Aluminum WIring
7.5. Ontario New Home Warranties Plan
7.5.1. Covered
7.5.1.1. New Condo or house
7.5.1.2. Old house that had warranty coverage Transfers
7.5.1.3. Home bought for rental properties
7.5.2. Not Covered
7.5.2.1. Build your own interior
7.5.2.2. Seasonal cottage
7.6. Ontario Building Code
7.6.1. Required
7.6.1.1. Finishing unfinished spaces
7.6.1.2. Repairing foundations
7.6.1.3. Pools
7.6.1.4. Construction of any building in excess of 10 meters
7.6.1.5. Construction of attached and detached garages
7.6.1.6. Renovation or repair of building
7.6.2. Not Required
7.6.2.1. Skylight below 3 floor
7.6.2.2. Insulation furnace boiler
7.6.2.3. window doors roofing plumbing