Course 1, Module 3, Lesson 1

Question 1

What are the two main types of estates?

Answer 1

1. Fee simple (ownership of properties and all rights associated)
2. Leasehold (right to use and occupy the property)

Question 2

What are the two main differences between a Fee Simple Estate and a Leasehold Estate?

Answer 2

1. The rights in associated with Fee Simple are much broader (including the right to sell, lease, give away etc)
2. The interest in land in a Leasehold is specified (max 99yrs) whereas in Fee Simple it is indeterminate

Question 3

What does it mean to have “Surface Rights” to a property?

Answer 3

It means that you own everything but the mineral rights

Question 4

When are Air Rights most relevant?

Answer 4

In cases where there is clear interest in building overtop of existing uses (ie skyscraper on railroad, bridge or elevated road way etc).

Question 5

How can you find info related to surface rights of a property?

Answer 5

By doing a title search

Question 6

What are mineral rights?`

Answer 6

The right to enter or use land for the purpose of removing minerals on or beneath

Question 7

What are TWO types of concurrent ownership?

Answer 7

1. Joint Tenancy

2. Tenancy in Common

Question 8

What are the four unities (conditions) that must be present for “Joint Tenancy” to exist?

Answer 8

1. Title - (each owner has the same interest, created at the same time on the same document)
2. Time (each owner’s interest created at the same time on the same document)
3. Ownership (each tenant has equal, undivided ownership)
4. Interest (no joint tenant is entitled to a part at the exclusion of others)

Question 9

What are TWO things that make “Tenancy in Common” different from “Joint Tenancy”?

Answer 9

1. Tenancy in Common doesn’t need to follow the “four unities” of Joint Tenancy
2. Rather than the interest/rights going to the other tenant upon death the interest/rights becomes part of the deceased’s estate (no right to survivorship)

Question 10

What are TWO ways “Joint Tenancy” or “Tenancy in Common” (Concurrent Ownership) be dissolved?

Answer 10

1. By agreement of the owners

2. An application made in court (if they can’t agree) which forces sale and equal distribution of proceeds

Question 11

What are TWO factors that make up condo ownership?

Answer 11

1. Fee simple ownership of the unit

2. Tenant in Common ownership of common elements (hallways, lobby etc)

Question 12

What is a Common Element Condominium (CEC)?

Answer 12

In this situation there are NO UNITS, just own the common elements (ie golf course and associated roads etc).

Question 13

What is a CO-OP?

Answer 13

Where a corporation owns the property and residents buy shares in this corporation. These shares grant rights to a unit as well as voting power (on things like operation).

Question 14

What is the main difference between Fractional and Co-ownership?

Answer 14

While both are Tenant in Common situations, the former allows for equal splitting of rights/interests while the latter can allow for interest to be split however.

Question 15

What are the THREE main characteristics of a Land Lease?

Answer 15

1. typically 20-99 years
2. can be granted by private source or crown
3. Allows consumers to own a home without the cost of land (ie Toronto island would be too expensive)

Question 16

What are FOUR characteristics of a “Life Lease”?

Answer 16

1. Gives the person the right to occupy a unit rather than own it
2. lump-sum payment up front
3. Monthly maintenance fees, meals etc.
4. Typically lasts until end of life or sale

Question 17

What is the main difference between a Fee-Simple Time Share and a Right-to-Use Time Share?

Answer 17

In the former the property is purchased outright and so the rights-to-use don’t expire

Question 18

What are the TWO scenarios in which you can cancel a Time Share agreement in Ontario?

Answer 18

1. Anytime after entering the agreement until 10 days after receiving the written copy of the agreement
2. Within a year of entering the agreement if you haven’t received a copy of the agreement or the agreement doesn’t meet the requirements

Question 19

When are Mobile Homes protected by the Residential Tenancies Act?

Answer 19

When the Mobile Home is rented (or on rented land?)

Question 20

When is a House Boat considered residential rather than recreational?

Answer 20

When it has no means of propulsion