Assignment 11 (Chapter 15) Flashcards
Criminal Code
The Criminal Code makes it an offense to agree to charge interest at a criminal rate, which is defined as an effective annual rate that exceeds 60%.
Interest Act, Section 10
Section 10 of the Interest Act deals with the right of prepayment of mortgages.
Right of Prepayment
The legal right of a borrower to repay a mortgage before the end of its term under certain conditions, as outlined in section 10 of the Interest Act.
Section 10 of the Interest Act
A provision that grants individual mortgagors the right to prepay their mortgage after five years, subject to specific conditions.
Property Assessment Appeal Board
An appeal from the Property Assessment Appeal Board to the British Columbia Supreme Court can only be made on a point of law, not of fact.
Property Assessment Review Panel
An appeal of a Property Assessment Review Panel decision must first be made to the Property Assessment Appeal Board before appealing to the British Columbia Supreme Court.
Assessment Notice
Notifies property owners of the assessor’s determination of the actual assessed value of their property.
Tax Notice
A document that requests payment of taxes.
Zoning Bylaws
Local regulations that dictate how properties in specific geographic zones can be used, controlling land use, building height, density, and other aspects of property development.
Strata Bylaws
Bylaws govern the control, management, maintenance, use, and enjoyment of strata lots and common property in a strata corporation.
Interest Act, Section 10
A section of the Interest Act that provides individual borrowers the right to prepay a mortgage after five years, subject to certain conditions.
Prepayment Penalty
A fee charged by a lender when a borrower pays off their mortgage early, intended to compensate the lender for lost interest.
Commercial Periodic Tenancy
Created when a tenant continues to occupy the premises and pay rent after a fixed-term lease ends, requiring reasonable notice for termination.
Reasonable Notice
The notice required to terminate a periodic tenancy, which must be fair and appropriate under the circumstances.
Equitable Mortgage
A mortgage that is secured by the borrower’s equity of redemption, often created through an agreement or by deposit of title deeds.
Legal Mortgage
A mortgage that is registered and recognized as a formal charge on the property.
Financial Profile
The overall financial situation and capability of an entity or individual, used to assess their ability to meet financial obligations.
Mortgage Assumption
The process where a new buyer takes over the mortgage obligations of the existing borrower.
Interest Act, Section 10
A section of the Interest Act that provides individual borrowers the right to prepay a mortgage after five years, subject to certain conditions.
Prepayment Privilege
The ability of a borrower to pay off a mortgage in full or in part before the maturity date without penalty, as allowed under certain conditions in the Interest Act.
Vendor Take-Back Mortgage
A mortgage where the seller provides financing to the buyer. It is commonly used when the buyer cannot secure financing from traditional lenders.
Seller Financing
A transaction in which the seller of a property provides a loan to the buyer to facilitate the purchase.
Mortgage Document
The legal agreement between the lender and the borrower outlining the terms and conditions of the mortgage loan.
Interest Rate
The percentage charged on a loan, typically expressed as an annual percentage of the principal.
Order Absolute
A court order that allows a lender to take title of a property and sell it without further accounting to the borrower, typically issued in foreclosure proceedings.
Foreclosure
The legal process by which a lender takes possession of a property due to the borrower’s failure to make mortgage payments.
Vendor Take-Back Mortgage
A mortgage where the seller provides financing to the buyer. It is commonly used when the buyer cannot secure financing from traditional lenders.
Seller Financing
A transaction in which the seller of a property provides a loan to the buyer to facilitate the purchase.
Real Estate Errors and Omissions Insurance
Insurance that provides coverage to real estate professionals for claims of negligence or mistakes made during the provision of their services.
Professional Liability Insurance
Insurance that protects professionals from claims of negligence, errors, or omissions in the performance of their duties.
Commercial Tenancies
Lease agreements for commercial properties can include various enforceable clauses like damage deposits, assignment prohibitions, and distress remedies.
Assignment of Lease
The transfer of lease obligations from the original tenant to a new tenant, subject to the landlord’s approval.
Collateral Advantage
An additional benefit required by a lender that is tied to the loan agreement and must not extend beyond the term of the loan to be enforceable.
Restraint of Trade
A clause in a contract that restricts a party’s ability to engage in business or trade, often found unenforceable if it is too restrictive.
Legal Non-Conforming Use
A use of land that was lawful prior to the implementation of a new zoning bylaw but does not conform to the new bylaw. This use may continue but cannot be expanded or changed.
Depreciation Report
A report required for strata corporations outlining the anticipated maintenance, repair, and replacement costs over time.
Due Diligence
The reasonable steps taken by a person to avoid committing a tort or offense, including the investigation and verification of information before entering into an agreement or transaction.
Ethical Responsibilities
The moral obligations that real estate professionals have to act with integrity, honesty, and fairness in their dealings with clients, customers, and other parties.
Agency Relationship
The relationship between a principal and an agent, in which the agent is authorized to act on behalf of the principal in business transactions.
Principal-Agent Relationship
The legal relationship in which one party (the agent) is authorized to act on behalf of another party (the principal) in business matters.
