Chapter 1 Fundamental of Laws Flashcards
Land ownership
The owner controls the use of the land (who and how) and the decision to transfer the rights to others. In Canada, the only of land is the Crown (federal and provincial governments)
Other than what restrictions, the rights of simple fee owners may pass these rights to their heirs?
- The Crown’s right of expropriation (claiming right of the land) and tax sale
- The Crown’s land use and building regulations
- other Individuals’ common law rights
Does absolute ownership exist in Canada?
No. Certain rights with respect to land may be owned by individual subject to the rights of the Crown.
What are the three categories of First Nation property rights?
- Federal reserve lands under the Indian Act
Lands owned by the federal government for the use and benefit of First Nations Groups. - Treaty Settlement Lands
First Nation groups have extensive governance authority over treaty lands - Aboriginal Title
Pre-existing legal rights to use and occupy certain lands. Aboriginal title can be established by Aboriginal people either through court declarations or through contractual agreement with the Crown. Once the Aboriginal title has been established, the group will have the right to decide how the land will be used; the right of enjoyment and occupancy, right to possess, economic benefits, rights of pro-actively use and manage the land.
What is the value of land?
Value of land is represented by the amount of potential user is willing to pay in exchange for the right to use it. It is justified by the anticipated benefits, given risk and current investment conditions (also called the capitalized value).
Key skill of licensee of a buyer should be?
Ability to identify the buyers’ tastes, motivations and ideal characteristics of the property.
Key skill of licensee of seller?
Ability to address the seller’s expectations.
Who is a real estate licensee?
A person who is licensed under the provincial statute (a written law) to provide real estate services to or on a behalf of another in expectation of remuneration (money paid for a service).
What is CREA?
Canadian Real Estate Association. The national association of real estate.
What is an appraiser?
The person who determines the market of value of the property based on its condition and selling price of comparable properties that recently sold in the area. Lender may also require an appraiser to determine that the mortgage loan amount is not more than the value of the property.
Who is a Real Property Assessor?
Works for the BC Assessment. Two tasks:
- Determines the actual value of the land.
- Assign each property to property class which will determine the amount of property taxes for which each parcel of land is responsible.
Who is a strata manager?
Someone hired by the strata corporation to assist in the management and maintenance of the common area and facilities, including the exterior of the building. Strata managers must be licensed under the Real Estate Services Act.
What is a mortgage?
Generally defined as the conveyance of title to property that is given as a security of payment of a debt or performance of a duty.
Who is a mortgage broker?
Acts as an intermediary, bringing borrowers and lenders together. Typically works for the borrowers (banks, credit unions, mortgage loans companies, trust companies). A mortgage broker is required to be registered under the Mortgage Brokers Act which is a similar process to licensing under the Real Estate Services Act.
What is a mortgage insurer?
if the loan is more than 80% of the property value, borrowers must obtain mortgage loan insurer which protects the lender against default. The Canadian Mortgage and Housing Corporation (CMHC) , Genworth Financial, and Canada Guaranty are the three mortgage insurers in Canada.
