Course 1, Module 3, All Lessons

Question 1

Jason Sewell, a salesperson t XYZ Realty Inc., is meeting with two new clients Sam and Rhonda Parks. The Parks are in their early thirties and have recently moved to town. Rhonda is a health care professional who was transferred by her employer. The expect to move again for her career within a few years so prefer an option that offers the most flexibility. The Parks also would like to be able to benefit from investing in a strong real estate market.

Which type of estate should Jason recommend - fee simple or leasehold - and why?

*Select ALL that apply.

A) A fee simple estate because it offers the Parks the greatest flexibility
B) A leasehold estate because there is no time limit on when the Parks must give up tenancy
C) A fee simple estate because it offers the Parks the opportunity to accrue interest
D) A leasehold estate that leads to eventual ownership

Answer 1

A & C

Question 2

During their conversation, Sam mentions that he has one daughter from a previous marriage and would like her to inherit his interest in a property. He contacts his lawyer to have the daughter registered on title.

Which form of concurrent ownership should Jason recommend to the Parks?

*Select the correct answer.

A) Life lease
B) Joint tenancy
C) Tenants in common

Answer 2

C - Tenants in common hold an individual and undivided interest in the land. Each part has the right to transfer their ownership. If an owner dies, their interest in the property forms part of their estate and can be transferred via will.

Question 3

After several weeks, the Parks are unable to find a house they want to purchase. Jason begins to consider alternate ownership options for his clients and suggests they might be interested in purchasing a condo. Sam and Rhonda are not familiar with condos and ask Jason to explain the basics.

Which of the following statements about condos are correct?

• State if each is correct or incorrect.

A) A standard condo involves both fee simple and tenant in common ownership
B) The common elements of a standard condo are the areas in which people live
C) A standard condo is an example of a co-operative ownership
D) A common elements condo corporation has no units

Answer 3

A) Correct
B) Incorrect
C) Incorrect
D) Correct

Question 4

Within a few months, Jason is able to help the Parks find a home. They are very satisfied with his service and, as a result, a few years later the Parks contact Jason to say they are interested in a recreational property. Jason prepares for a meeting with the Parks by researching recreational properties in the vicinity

*Fill in the blanks with the correct option.

Jason finds 1.(land lease/co-operative) recreational development in which the cottagers own the buildings and have exclusive right to use the land for a specified time.
Jason also considers timeshare properties including 2. (right-to-use interest/fee ownership interest) where buyers purchase an ownership interest in the property for a specified period of time each year. he also reviews a 3.(right-to-use interest/fee ownership interest) timeshare property in which the buyers purchase the right to use a property for a specific time but do not have ownership in the property.
Jason also considers a 4. (co-ownership property/mobile home park) where his clients will be tenants and enjoy common services and facilities which are owned by the landlord.

Answer 4

1. Land lease (read carefully - trick here is that they don’t own the land)
2. Fee ownership interest
3. Right-to-use interest
4. Mobile home park

Question 5

Jason helps Sam and Rhonda Park find a recreational property - a cottage on a small lake - they would like to purchase. The listing mentions an easement on the property and this causes much concern for the Parks. They have done some research and became alarmed when they learned that an easement is a right enjoyed by one landowner over the land of another. They ask Jason for help understanding the meaning and impact of the easement.

*Select ‘True’ or ‘False’ for each statement below.

1. An easement gives ownership of a part of the Parks’ property to someone else
2. The cottage property would be referred to as the servient tenement
3. If the Park’s purchase the property it would be referred to as the servient tenement
4. The Parks can not have the easement removed

Answer 5

1. False
2. True
3. True
4. True (in this very narrow context. Of course things could change, and the Parks aren’t completely powerless. Mean that they don’t have any direct control in getting it removed).

Question 6

In light of the Parks’ concern about easements, Jason feels it is important to explain to them there are other restrictions imposed upon property ownership they may encounter.

*Choose the correct option.

The government may decide to acquire private property to use for the benefit of the public which is known as 1. (restrictive covenant/expropriation) or impose a 2. (restrictive covenant/expropriation) which limits what an owner can do with their property by adding a legally binding obligation registered on title. The government also has a right to 3. (escheat/regulate) in the interests of the common good by imposing zoning bylaws and building codes.
Limitations may also be imposed by other property owners such as when 4. (a restrictive covenant/ an encroachment) occurs and a property owner builds a structure o a neighbouring property. In addition, 5. (adverse possession/expropriation) may occur when an individual takes possession of a property without the consent of the owner.

Answer 6

1. Expropriation
2. Restrictive covenant
3. Regulate
4. An encroachment
5. Adverse possession