exam review Flashcards
what is a condominium
division of land into units and common elements
- units are individually owned homes in a multi-unit building or complex
which act governs condominiums
the condominium act
- governs the law and rights and responsibilities for condominium
differences between units and common elements for condo owners
units: condo owners own their unit// owners can makes any modifications to the interior of their unit
CE: unit ownership includes a non-exclusive percentage interest in CE// exterior is CE and cannot be modified
give examples of common elements
yard/green space
garbage
hallways
walkways
stairwells
garages
swimming pools
gym
roof
fences
how is a condominium created
file a plan and declaration with the LTO
define a plan
a document certified by a land surveyor and architect
define a declaration
a detailed written description of the condominium
- includes info about units, CE, how condo works and rights and responsibilities of unit holders
what is automatically created upon registration of a plan and declaration
condominium corporation
how many titles are created when a condominium has been created
master title and unit title
differentiate between master title and unit title
MT: is issued in the name of the condo corporation
- contains all realty in the building or complex
UT: is issued in the name of each unit holder
- includes the owners unit number, the owners percentage interest in the CE and the number of the master title
how many titles will you need to search for a condo sale and purchase file and why
two titles because purchaser should know of any encumbrances registered against the condos, some encumbrances registered against the master title may affect the unit title
what is the purpose of a condominium corporation
condo corp controls, manages, and oversees the corporations CE and common assets in accordance to the corporation act
how are condominiums managed and what documents are created? which of these documents may or may not be applicable?
directors are elected from unit holders, by unit holders, within the condo complex, to sit on a condo board, documents are condo docs//disclosure certificate may be applicable
what might a condo owner have the inclusive and exclusive right of use to?
inclusive rights to: Personal parking spot, Make changes to their personal unit
exclusive rights: Pools, Stair wells, garages
what are some things the condo board may budget for in a year
snow removal
lawn care
house keeping
water
hydro/power
insurance premiums on common elements
reserve fund
what is the purpose of a reserve fund
contains funds that the condo board has set aside for any future expenses that may arise with the condo building or complex
how are common element fees (condo fees) calculated
square footage of owners unit/total square footage of all units x the annual common elements budget/12
how does a condo form of OTP differ from a regular residential OTP
A condo form of OTP contains “fight of cancellation” clauses, which are not in standard residential OTP
what is the purpose of a 7-day cooling off period
after receipt of all corporation documents, the purchaser has the right to cancel the agreement (otp) within 7 days
what is the purpose of a material change clause
purchaser has the right to cancel the agreement if a material change occurs in relation to the agreement
what adjustments must be made on a statement of adjustments for a condominium that are different from that of a regular statement of adjustments, does possession date matter?
adjustments must be made for monthly condo fees, security deposits, prepaid rent and rent
possession date?
differentiate between mortgage sale and mortgage forecloser
MS: selling of the real property
MF: becoming the owner of the real property
what is power of sale
expressed within a mortgage in the standard charge mortgage term, can be implemented if the mortgagor is in default for a minimum of one month, mortgagee must give final notice to the mortgagor, allows the mortgagee to sell the mortgaged property without resorting to the courts
how long does the mortgagor have to be in default for power of sale to be implemented
minimum 1 month
what is the purpose of a notice of exercising power of sale
registered by mortgagee to start exercising its remedies under a mortgage in default
- provides details about the property in default, details about the debt and how it is not being paid, and how to bring the mortgage back in good standing
if a mortgagor continues to default on their mortgage after NEPS has been filed and served, what is the next step the mortgagee may take
application for order of sale, complete lto/transmission form, made to the district register of the LTO requesting public auction of private sale
what are the two ways a mortgaged property could be sold
public auction and private sale
what must an auction advertisement contain
civic address
location of auction sale
property title number
type or use of the property (residential/commercial)
approx square ft
number + type of amenities
any outstanding property taxes and/or encumbrances
contact info to obtain a copy of sale conditions or further info
statement re: reserve bid being announced at auction
if a purchaser is successful in offering the highest bid at a public auction for sale of a mortgaged property, how much of a down payment must they immediately provide
20%
what happens if a public auction and private sale have been unsuccessful, and the mortgagor continues to be in default
-a notice of intention to sell by private contract must be made and served on all persons who were also served with the NEPS
what is a request used for
it is used as a request to make all applications in mortgage sale and foreclosure proceedings
what is a transfer used for under Power of Sale? who signs this?
a transfer is used under power of sale when the mortgaged property is sold under auction or privately, when the mortgagee takes title through foreclosure, the mortgagee signs the transfer
what is a transmission under power of sale used for? who signs this?
a transmission accompanies a transfer form when transferring title to purchaser
- the purchaser of mortgagee signs this
what is an affidavit of bona fides of mortgagee
An affidavit bona fides of mortgagee is signed by the mortgagee advising that they are not connected to the purchaser of the property being sold
What is an Affidavit of Bona Fides of purchaser?
An affidavit of Bona Fides of Purchase is signed by the purchaser advising that they are not connected to the mortgagee of the property being sold
Be familiar with rules regarding the witnessing of Land Titles Office forms
- Lawyers entitled to practice law in the Province where the document is signed
- Any competent adult person, provided they swear an Affidavit of subscribing witness
- Both may act as witnesses
caveat
Registered with the LTO by a person (corporation) claiming an interest in land
amending agreement
Used to correct typographical or other errors made in an original mortgage or encumbrance document, which changes the original document
- Also used to amend provisions of an original document
postponement of registration
Allows the order of priority of charges on property to be altered, if there is agreement between all parties involved
- One party would refer their rights to another party who also has a charge against the property
memorandum of lease
Used to provide notice and specifics of a tenant’s lease on title, if a landlord will not allow the tenant to register the lease against title
- (outlines terms and conditions of a lease agreement)
builders lien
Is a person/company that makes improvements to real property by performing work on or providing service on a title, they have the rights to register a lien to protect their ability to collect money owed to them
schedule
May be used with any other LTO form where there is not enough space in a box in a form to add all relevant information
Easement Agreement and Non-Disturbance Agreement
Easement agreement: Agreement between parties involving the right of one property owner to temporarily use part of another owner’s property for a specific purpose
Non-disturbance agreement: An agreement between a tenant and the landlords mortgagee where the mortgagee agrees not to disturb, and permits the tenants occupancy not to be disturbed in the event foreclosure proceedings commence against the landlord
Differentiate original titles vs. duplicated titles
- An original title is a paper document on file in a book at the Land Titles Office
- A duplicate title is a document which reflects all of the information that was contained in the original titles
