Real Estate: Course 1

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Real Estate: Course 1 by Mind Map: Real Estate: Course 1

1. MODULE 2 : The Fundamentals of Real Estate

1.1. Trade

1.1.1. Registrants can trade selling, leasing listing, prospecting advising on sale/purchase, or on property negotiating

1.1.2. Unregistered persons cannot involve in trading activities or words scheduling appointments organizing files taking pictures of properties

1.2. Types of Relationships

1.2.1. Agency/Client Relationship (Representation) Requires Representation Agreement: Signifies that Buyer is represented as a client. Seller/Broker = Listing Agreement Buyer/Broker = Buyer Representation Agreement Commission Agreement is usually described within representation agreement "Agreement of purchase and sale" presents negotiation between buyer and seller.

1.2.2. Customer Service (Providing service) Yes - Showing Properties, Drafting Offer, Honesty, Integrity, Loyalty, Confidentialty No - Fudiciary Duty, Exclusive

1.3. Scope Of Ownership

1.3.1. Real Property Real Estate Land Buildings Improvements (Permanent fixtures) Eg. Deck, Shed, Fence Fixtures E.g. Wall lamps, chandeliers Intangable The Rights of owning property

1.3.2. Personal Property Fixtures 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. Chattels 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 Marketable Title Encumbrances

1.4.3. Evidence of Ownership Completion Date

1.4.4. Land Registry Office

1.5. Mortgage Terms

1.5.1. Mortgage = Charge Lender Borrower

1.6. Types of structures

1.6.1. Residential Attached Semi-detached Towhouse (Row House) Linked Dwelling Multi-unit residential dwelling Detached Bungalow Bi-level/Split entrance One and one-half storey Two Storey Split-level

1.6.2. Commercial Office Retail Mixed-Use Multi-unit Industrial Agricultural

1.7. Real Estate Governance

1.7.1. RECO Mandate REBBA Activiteis

1.7.2. Industry Associations Canadian Real Estate Association (CREA) Ontario Real Estate Association (OREA) Local real estate boards Toronto Real Estate Board (TREB) MLS Member Services Other associations REIC CCIM SIOR

1.8. Roles within a Brokerage

1.8.1. Broker of Record: Statuary Obligations ensures brokerage compliance w REBBA don't usually deal interact directly with buyers and sellers Multiple Offices each should be supervised by a Branch Manager if there is more than one registrant

1.8.2. Salespersons Working with Sellers 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 REBBA Code of Ethics: Requirements for acceptable conduct by registrants (C1 M1 P13)

2.1.4. Provincial Government 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 Rural, Recreational, and Agricultural Sales Residential Condo Residential Resale

2.3.2. Commercial Leasing Commercial Buying Commercial

2.4. Tasks of Real Estate Agent

2.4.1. Representing a Seller (P71) Brokerage Name: Listing Brokerage Sales Person Name: Listing Salesperson Agreement Name: Listing Agreement Prospecting Marketing The Property Preparing the Property to be shown

2.4.2. Represent a Buyer Brokerage Name: Cooperating Brokerage Sales Person Name: Selling Salesperson Agreement Name: Buyer Representation Agreement Qualifying Buyers and showing the Property Preparing/Presenting an offer Follow Up

3. MODULE 3 : Property Ownership Rights and Limitations

3.1. Property Interests

3.1.1. Estate Fee Simple Estate Leasehold Estate

3.1.2. Other Types of Property Interests Air Rights Surface Rights Riparian Rights Mineral Rights

3.2. Concurrent Ownership

3.2.1. Joint Tenancy 4 Unities Title Time Possession Interest Survivorship

3.2.2. Tenants in common One Unity Possession

3.3. Ownership Alternatives

3.3.1. Condominium Multi-unit Condominium Fee simple ownership of unit (Owner) Tenancy in Common Ownership of Common Elements Common Elements Condominium (CEC) Parcel of Tied Land (POTL)

3.3.2. Co-operative Equity Co-operative 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 Fee Ownership Interest Right to use interest

3.3.8. Mobile Home Parks

3.3.9. Houseboats Residential Recreational

3.4. Easement

3.4.1. 6 Characteristics of an Easement Specific Use Dominant and servient tenements Dominant Servient Two different parties Solo Benefit Transferrable Adjoining and Non-Adjoining

3.4.2. Easement Creation Express Grant Perscription Implication Statute

3.4.3. Easement Termination Merge Release Ceasing of purpose

3.4.4. Types of Easement Right of way Party Wall Mutual Shared Driveway Profit-a-Prenddre

3.5. Private Restrictions

3.5.1. Restrictive Covenant

3.5.2. Encroachment

3.5.3. Adverse Possession Visable Exclusive Continuous without consent With owner's knowledge

3.5.4. Government Limitations Expropriation Right to regulate Right to levy taxes Real Property Tax Land Transfer Tax Escheat

4. MODULE 4 : Land Descriptions And Registrations

4.1. Land Description Methods

4.1.1. Ontario's Land Descrptions 3 types of township single front double front sectional system

4.1.2. Metes and bounds Describe irregular shaped properties Older system of written land descrption Start and end at same point of reference Boundary lines described using compass directions and distances

4.1.3. Surveys 4 components Research Measurement Monumentation Plan&/Report 4 types Surveyor’s Real Property Report Reference Plans (R-plans) Plans of Survey Plans of Subdivision take precaution

4.2. Legal Land Description

4.2.1. Documents Primary Documents Survey Deed Secondary Documents Registry Records Municipal assessment records Municipal tax bills

4.2.2. Components Locational Reference Encumbrances Municipality/Registry Office

4.2.3. Needed when... Transferring a title Mortgaging a property Registering an easement Listing a property for sale Drafting an agreement of purchase and sale

4.3. Land Registration

4.3.1. Registry System Accessing the plan or abstract book to identify the appropriate lot number Records property interests using geographic location Documents affecting the property are summarized in chronological orders

4.3.2. Land Title System 3 Land Title Principles Mirror Principle Curtain Principle Insurance Principle Provides an assurance fund Land Titles Assurance Fund 2 systems due to mass digitalization Land Title Absolute Plus Land Transfer Conversion Qualified The Land Registrar operates registration process and guarantees title Properties are organized by land ownership

4.3.3. Land Registration Reform Act (Electronic Land Registration) Transfer/Deed of land Charage/Mortgage of land Discharge of charge/Mortage of land Document General Schedule

4.3.4. Tools: Polaris/Teraview/GeoWarehouse/OnLand 3 Databases Title Index Database Property Index Database Image Database Search for properties on Polaris PIN - Property Identification Number Owner's Name Street Address Property Mapping Info available... Full property description Owner(s) List of currently registered instruments 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 Advising Showing Conducting Open House Approach and Prospect customers Explanations about the property Accessing a property with a home inspector

5.1.2. Not require registration as a salesperson Flyer - not require registration Booking a showing Installing a lock box Design and post advertisement Witness Signature Prepare documents

5.1.3. Certain individuals can perform specific activities without registeration Property Manager can arrange lease Lawyer disposing of property Financial institution disposing of a property under mortgage default FSBO Auctioneer can auction property

5.2. Reco

5.2.1. Disqualify Assault Conviction Unpaid Judgement Past Conduct Non-Disclosure False Statements

5.2.2. May Disqualify Bankruptcy

5.2.3. Discipline 1 - Warning 2 - Warning + Course $225 3 - Discipline Hearing

5.3. Diclosing Material Facts

5.3.1. Condition of structure Leak Electrical deficiencies 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 Representation agreement Customer Service Agreement Agreement of purchase and sale Lease Agreement

6.1.2. Contract Rules Privity of contract Parol Evidence rule

6.1.3. 6 Elements for Contract to be enforceable Offer and Acceptance: Mutual Agreement Acceptance with no conditions Capacity of the parties Competent of mind Of age Literate Corporations Consideration: Each party must recieve something of value Past promises are not included Definite and clear Has a closing date Has exact Prices Lawful Object Criminal Activity Price Fixing Rent Tax Evasion Genuine intention Mistakes Genuine Intention Undue influence Duress

6.1.4. Cancel Contract Status of contract Void Voidable Illegal Termination Performance - Satisfied Mutual Agreement - Both didn't want to go through Impossibility of performance Operation of law Breach of contract Electronic Signature Obtain written consent from all parties Highlights where to sign Confirm e-mail address Privacy Legislation PIPEDA Privacy Broker Family Law Act Ensure both parties consent to transaction Excludes investment properties Common Law Partner

6.2. Residential Bylaws

6.2.1. Types of Bylaw Sign Bylaw Parking Bylaw Noise Bylaw

6.2.2. Committee of adjustments Granting of minor variances rezoning application Must be keeping with the Official Plan

6.2.3. Non-Confirming Structure Use Discontinued by Long Discontinuous Use Demolition or substantial renovation 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 Public Utilities Waste Mangement Transportation Systems (Other than highways) Public roads/parking/traffic Culture parks recreation, heritage drainage and flood Structures - fences and signs Parking Animal Control Economic Development Services

6.4.2. Not Responsible Planning processes and land use control Automobile licensing


6.5.1. Proceeds of crime

6.5.2. Terrorist financing Act

6.5.3. PCMLTFA Reporting Obligation Suspicious Transaction Reporting (STR) Large Cash Transaction Reporting Terrorist Property Reporting Know your client obligation Understand your client Ascertain client identity Working with foreign clients Determine third-party involvement Recordingkeepin gobligation

6.6. Condominium Owners Act

6.7. Tenancies Act

6.7.1. Residential Tenancies Act Unlawful Rent Increases Unlawful Evictions Rights and Responsibilities Resolved in landlord and tenant board Month to month after year lease

6.7.2. Commercial Tenancies Act No restrictions on the landlord for rent increases 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 Must use both National DNCL and internal DNCL Purchase/any sort of agreement signed - expired within 18 months is good; inquiry - within 6 months is good Maintain internal do not call list

7.1.2. Canada’s Anti-Spam Legislation (CASL) CEM: Commercial Electronic Messages Does not apply to website/social media posts and two-way voice communication between individuals Good practice: 6 months from previous interaction Inquiry response Opt in to marketing only - obtain consent Must be identified by exact name, company and contact info 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: Misleading Advertising Conspiracies Price Maintaince Bid-Rigging

7.2.2. 3 principals to follow: Do not discriminate Do not collude Do not mislead

7.3. Tax

7.3.1. Capital Gains Live in it Inherited Sell due to changes in circumstances 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 Buy a property with intention to profit Realtor or other estate Frequently selling and buying real estate Rental income Fully taxed

7.3.3. Principal Residence Not Taxable 1 Principal residence per family unit 1.24 Acres max Must be inhabited

7.4. Green Regulations

7.4.1. EPA: Environmental Protection Agency Environmental site assessment. Phase 1 Phase 2 Phase 3 potential issues Must be disclosed to everyone Greenbelt Act 2005

7.4.2. Endangered Species Act Affects build in places that need to protect these animals

7.4.3. Greenbelt Protected Areas Includes Oak Ridges Moraine Niagara Escarpment Does not include Blue Mountains Kawartha Lakes

7.4.4. Green Home Energy Star = Good Enderguide = Means nothing - just been tested before Solar assisted systems = good Low flow equipment = good Copper wiring > Aluminum WIring

7.5. Ontario New Home Warranties Plan

7.5.1. Covered New Condo or house Old house that had warranty coverage Transfers Home bought for rental properties

7.5.2. Not Covered Build your own interior Seasonal cottage

7.6. Ontario Building Code

7.6.1. Required Finishing unfinished spaces Repairing foundations Pools Construction of any building in excess of 10 meters Construction of attached and detached garages Renovation or repair of building

7.6.2. Not Required Skylight below 3 floor Insulation furnace boiler window doors roofing plumbing