final review

Question 1

what is a condominium

Answer 1

divisions of parcels of land into units and common elements

Question 2

which Act governs condominiums?

Answer 2

The Condominium Act governs the law and rights and responsibilities for condominiums

Question 3

differences between units and common elements for condo owners

Answer 3

unit: condo owners own their unit, and owners can make modifications to the interior of their unit
Common elements: exterior of unit is considered a common element and cannot be modified by owners

Question 4

examples of common elements

Answer 4

yards
hallways
stair wells
garages
swimming pools
gym
walkways
fences

Question 5

how is a condominium created

Answer 5

plan

declaration

condominium operation is automatically created upon registration of declaration and plan

a master title is issued in the name of the condo corporation

a unit title is issued in the name of each unit holder

Question 6

what is automatically created upon registration of plan and declaration documents?

Answer 6

the Condominium Operation is automatically created

Question 7

how many titles are created when a condominium has been created?

Answer 7

2 titles are created, a master title and a unit title

Question 8

differentiate between a master title and a unit title

Answer 8

master title: contains realty in building or complex, not individual units

unit title: includes the unit owner number, the owners percentage of interest on common elements and the master title number

Question 9

how many titles will you need to search for a condo sale and purchase file and why?

Answer 9

you will need to search for 2 titles for a condo sale and purchase file

because the purchaser should know of any encumbrances registered against the condos, as some encumbrances registered against the master title may affect the unit title

Question 10

what is the purpose of a Condominium Corporation?

Answer 10

Condo Corporation controls, manages and overseas the corporation common elements and assets in accordance with the Condominium Act

Question 11

how are condominiums managed and what documents are created? which docs may or may not be applicable?

Answer 11

directors are elected from the unit holders by unit owners to sit on a condo board

directors manage the condo corp. and common elements whether directly or through property management company

A disclosure certificate may be applicable (sets out certain matters, as they related to the condo building and as a particular unit)

Question 12

what might a condo owner have the inclusive and exclusive right of use to?

Answer 12

inclusive rights:
- right to personal privacy
- personal parking spaces
- changes to their personal unit

exclusive rights:
- pools
- stair wells
- garages

Question 13

what are some things that a condo board may budget for in a year?

Answer 13

snow removal
lawn care
housekeeping
hydro
water
insurance premiums for common elements
reserve funds

Question 14

what is the purpose of a reserve fund

Answer 14

reserve funds contain funds that the condo board has set aside for any future expenses that may arise with the condo building or complex

Question 15

how are common element fees (condo fees) calculated?

Answer 15

square footage of owners unit / (divided by) total square footage of all units X (multiplied by) annual common elements budget / (divided by) 12

Question 16

how does a condo form of OTP differ from a regular residential OTP?

Answer 16

a condo for of OTP contains “right of cancellation” clauses, which are not in standard residential OTP

Question 17

what is the purpose of a 7-day cooling off period?

Answer 17

a 7-day cooling off period means that the purchase has right to cancel the Agreement within 7 days

Question 18

what is the purpose of a material change clause?

Answer 18

the purpose of a material change clause is to give the purchaser the right to cancel the agreement if a material change occurs in relation to an agreement

Question 19

what adjustments must be made on a Statement of Adjustments? does the possession date matter in any of the situations?

Answer 19

adjustments that must be made that are different is that there will be adjustments made for monthly condo fees and rent, and if there is a current tenant occupying the unit

possession date would matter if there was still a current tenant occupying the unit, as payments must be made if the current tenant has made prepaid rents

Question 20

differentiate between mortgage sale and mortgage foreclosure

Answer 20

mortgage of sale is the selling of the property

mortgage foreclosure is becoming the owner of the real property

Question 21

what is a power of sale?

Answer 21

a power of sale allows the mortgagee to sell the mortgage property without resorting to the courts

Question 22

how long does a mortgagor have to be in default for Power of Sale to be implemented?

Answer 22

a mortgagor has to be in default for one month

Question 23

what is the purpose of a Notice of Exercising Power of Sale?

Answer 23

the purpose of a notice of exercising Power of Sale is to provide details about the property in default, details about the debt and how it is not being paid and how to bring the mortgage back to good standing

Question 24

if the mortgagor continiues to default on their mortgage after the NEPS has been filed and served, what is the next step the mortgage may take?

Answer 24

mortgagor may proceed with an Application for Order for Sale

Question 25

what are two ways a mortgage property could be sold?

Answer 25

a public auction and a private sale

Question 26

what must an Auction Advertisement contain?

Answer 26

it must contain: a civic address for the property being auctioned off location for the auction sale propertys title number approx. square footage number and type of ammenities

Question 27

if the purchaser successful in offering the highest bid at a public auction for sale of a mortgaged property, how much down payment must they immediately provide?

Answer 27

a down payment of 20% must be made

Question 28

what happens if a public auction and private sale have been unsuccessful, and the mortgagor continues to be in default?

Answer 28

a notice of intention to sell by private contract must be made and served on all persons who were also served with the NEPS

Question 29

what is a request used for?

Answer 29

it is used as a request to make all applications in mortgage sale and foreclosure proceedings

Question 30

what is a transfer used for under Power of Sale? who signs this?

Answer 30

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

Question 31

what is a transmission under Power of Sale used for? who signs this?

Answer 31

a transmission accompanies a transfer form when transferring title to purchaser the purchaser of mortgagee signs

Question 32

what is an Affidavit of Bona Fides of mortgage?

Answer 32

an Affidavit Bona Fides is signed by the mortgagee advising that they are not connected to the purchaser of the property being sold

Question 33

what is an Affidavit Bona Fides of purchaser?

Answer 33

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

Question 34

be familiar with rules regarding the witnessing of Land Titles Office forms

Answer 34

lawyers entitled to practice law in the province where the document is signed any competent adult person, provided they swear and Affidavit of subscribing witness both may act as a witness

Question 35

caveat

Answer 35

registered with the LTO by a person (or corporation) claiming an interest in land

Question 36

Amending Agreement

Answer 36

used to correct typographical or other errors made in an original mortgage or encumbrance document, which changes the original document

Question 37

Postponement of Registration

Answer 37

allows the order of priority of charges on property to be altered, if there is agreement between all parties involved

Question 38

memorandum of lease

Answer 38

used to provide notice and specifics of a tenants lease on title, if a landlord will not allow the tenant to register the lease against title

Question 39

builders lien

Answer 39

when a person or company makes improvement to real property by performing work on providing service on a title, they have the rights to register a lien to protect their ability to collect money owed to them

Question 40

schedule

Answer 40

may be used with another LTO form where there is not enough space in a box in a form to add all relevant information

Question 41

easement agreement

Answer 41

agreement between parties involving the right of one property owner to temporarily use part of another owners property for a specific purpose

Question 42

non-disturbance agreement

Answer 42

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

Question 43

differentiate original titles vs duplicated titles

Answer 43

an original title is a paper document on file in a book at the Land Titles Office a duplicate title is a document which reflect all of the information that was contained in the original titles