4.2 - BC Real Estate Contracts Flashcards
is a real estate contract void, voidable, or illegal if it’s not in writing?
no, it’s just hard to enforce
what remedy may a court offer if they can’t enforce an oral contract?
return deposit, offer compensation, reimburse legal fees
3 exceptions to section 59 (written real estate contracts)
- party who wants to enforce the contract can prove that party denying it has acted in a way that proved existence of contract (deposit)
- party seeking to enforce the contract had reasonably relies on the contract and performed some act (spent $)
- doesn’t apply to leases with a term of 3 years or less
if you PLAN an agreement/scheme to restrain trade or mislead advertising, can you be charged with price fixing, if you don’t put it into effect?
yes
can misleading advertising be oral?
yes
how can you escape liability if charged with misleading advertising?
must show that you took all the care of a reasonable person and that you honestly believed the representation made was true
what does PIPA do?
regulates the way private sector organizations collect, use, keep secure, and disclose personal information
what does PIPEDA do?
establishes how a business engaged in commercial activity can collect, use, and disclose information
what does PIPA require private sector organizations to do before collecting, using, or disclosing personal information?
consent
does FINTRAC form need to be done for each client?
yes
how soon must fintrac be reported after a large cash transaction?
within 15 days
3 P’s of CPS?
parties (buyer & seller)
property
price
what parties is the listing contract between?
brokerage and seller
what parties is the CPS between?
buyer and seller
(selling agent and purchaser)
what info is required for a listing contract?
- accurate description of property (signed by all owners)
- title search
- copy of listing agreement, given to all parties of listing contract
who is a listing agreement between?
real estate brokerage and seller NOT PURCHASER BC SELLER LISTS
what is designated agency?
brokerage is the agent but they appoint 1 or more specific licensees to act as the vendor’s sole agent
if all terms of listing contract are not met, does licensee get commission?
no
does the licensee have to present ALL offers?
yes
is CPS binding without deposit and commission?
yes
what is a condition? what can you do if it’s breached?
fundamental term of a contract
can terminate contract or sue for damages/specific performance if breached.
what is a warranty? what can you do if it’s breached?
minor term of a contract
can sue for damages if breached (can’t terminate contract)
why are written warranties necessary?
preserve a party’s right to sue after the sale completes
what is the doctrine of merger?
after completion of CPS the agreement and parties’ rights under it are merged - have to look to the deed for remedy. can’t rely on terms of contracts before transfer form
what is a condition precedent?
a performance of some act before the contract is binding?
how can you remove a condition precedent? 2 ways
satisfy requirement
party who benefits from condition can waive requirement - i.e. if you win lottery you can waive financing
what is a true condition precedent?
condition that is wholly dependent on the actions of someone who is not a party to the contract like the bank
how can you remove a true condition precedent?
can satisfy it, can’t waive it
what is a condition subsequent?
after the contract is formed, a condition which will discharge the principal (primary) obligations of a party to the contract - i.e. deposit defaults by buyer, seller can terminate
when does risk transfer from seller to buyer?
12:01 am on the completion date
is the property disclosure statement (PDS) a protection to the seller?
no
what is the property disclosure statement?
promotes useful communication about a property’s condition. written record that provides info at the time of the making of the cps. doesn’t necessarily form part of the contract.
how does the PDS work for a strata?
disclosure limited to owner’s unit only and should not include a statement regarding the common property
what is the number 1 thing to check for if amending a contract of purchase and sale?
make sure it doesn’t terminate the existing contract
do you have to assign the CPS in writing?
yes
3 criteria that allow CPS to be assigned?
- contract includes standard assignment terms
- assignment does not prejudice the seller (doesn’t make seller worse off)
- contract doesn’t prohibit assignment
what are the 2 standard assignment terms needed to assign cps?
- contract must not be assigned without the written consent of the seller
- the seller is entitled to any profit resulting from an assignment od the contract by the buyer or any subsequent assignee
can developers charge an assignment fee?
yes
CSAIR is required after how many residential strata lots?
5
do you need CSAIR for industrial/commercial purposes?
no
do you need CSAIR for bare land strata lord?
no
what 4 types of assignments need to be reported to CSAIR?
entire assignment
partial assignment
subsequent assignment
assignment for lease agreement for with the term for 3 years or more
