Introduction to Real Estate Flashcards
What is Real Estate
Physical land and the structures attached to it.
The land includes the waters and the minerals below it, the airspace above.
Structure includes any building or improvements.
What are chattels?
Items not securely affixed to the land or buildings.
Furnishings
Appliances
Also referred to as private property
What is a fixture?
Items that cannot be easily removed from the property without causing damage to the property
Wells
Fences
What is Real Property
Consists of both physical objects and common law rights
What rights are associated with Real Property
- The right to possess
- The right to control
- The right to enjoy
- The right to exclude
- The right to dispose of
What is Fee Simple?
The Crown (government) own most land in Canada. The government allows people to purchase land titles (interest) interest in the land.
There are three types of land ownership. What are they?
Sole owner
Joint Tenancy
Tenancy-in-common
What is Sole ownership
The land or property is owned by one person or entity.
If the owner is married, dower rights may apply if the spouse’s name is not on the title
What is Join tenancy
Owner with two or more owners on the title.
If one of them passes away, the property remains in possession of the surviving joint tenant.
In Alberta joint tenancy must be specified, the default is tenant in common
What is tenancy in common
Two or more owners own proportional shares of the property. If one owner passes away, their share of the land goes to their estate, not to the other owners.
Tenants in common can sell their shares or transfer their shares to another party.
What is a life estate
The ownership of the property exists for the duration of the life of a person and will then revert to another person.
If the life tenant sells the property, the purchaser would be forced to leave upon the life tenant’s death.
What document in Alberta shows legal ownership to a property or asset?
the title
What is “interest in land”?
A right of ownership in land or in an encumbrance against it, such as a mortgage
What is an encumbrance?
A claim against the property
Mortgage
easement
Each encumbrance has a registration number which will appear of the certificate of title
Easement
Easments gives a person or company other than the property owner the right to access a portion of the land. Easements stay on the title regardless of a change in ownership.
Encroachments
Where an item on a property encroaches or is built on or over an adjoining property.
If a homeowner build a fence that does not stay within their property line, this maybe an unintentional encroachment.
An encroachment agreement can registered. The agreement sets the terms which will allow the encroachment to remain.
Restrictive Covenants
Places restrictions on what can and can not be done with a property. Can be related to architecture, land use etc.
Can leases in excess of three years be registered against a title?
Yes
Lien
When a party has a financial interest in a property.
E.g. a person owning taxes
Caveat
A notice that someone has a interest in the propery.
- Only a notice, just because a caveat exists doesn’t mean it’s valid.
e.g. condominium fees
Which interests have priority over mortgages
Property taxes & condo fees
Who creates and amends the rules of The Real Estate Act
The various industry councils
When is a real estate license required in Alberta
If you are acting on someone else’s behalf, or if you’re being compensated.
How does the Real Estate Act define residential real estate in Alberta
real estate used for residential purposes, or intended to be used for residential purposes, comprising of or to be comprised of not more than four residential premises
